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SWOT ANALYSIS OF
LUX
AND
DOVE
SAJJAD HUSSAIN ( pUrki ) 72
BBA (3RD)
SEC: (B)
DATE: 10/MAY/2010
MISS.AFSHAN SEHAR
SWOT ANALYSIS
STRENGHTS
STRENGHTS OF LUX
Strong Market Research (door to door sampling is done once a year in Urban and Rural
areas)
.Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts, Saffron,
Sandalwood Oil, and Honey to name a few)
Strong sales and distribution network backed by HLL
Strong brand image
Positioning focuses on the attractive beauty segment
Dynamically continuous innovation of the product and brand rejuvenation – new variants
Aromatic Glow and Chocolate Seduction and Lux White Spa body wash) and innovative
Promotions (22 carat gold coin promotion – ‘Chance Hai’)
Perceived to have high value for money (strong brand promotion but relatively lower price
Which is a winning combination in the popular segment?)
STRENGHTS OF DOVE
o Unconventional strategy
o Cross-selling Possibilities
WEAKNESSES
WEAKNESSES OF LUX
Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex
appeal
Usage rate/ wear rate is high and is generally mushy and soggy
Some variants like the sunscreen, International variant did not do well in the market
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Certain advertisements like the recent one with Shah Rukh Khan resulted in controversial
interpretations of the message of the advertisement and lead to some loss of focus
Stock out problems - replenishment time is high in semi-urban/rural areas
WEAKNESSES OF DOVE
Contradictory in nature
Objectification of women
OPPORTUNITIES
OPPORTUNITIES OF LUX
Soap industry growing by 10% in India
Beauty segment’s Compounded Annual Growth Rate (CAGR) is very high. An indication
of this is that Fair and Lovely’s segment is increasing at a fast rate - LUX must reinforce
its presence in the beauty segment
More promotions like price-offs and samples
Retentive strategy required as the soap segment is in the mature stage of its product life
cycle
Line extension – probably with more variants catering to the beauty segment like natural,
herbal soap etc
Liquid body wash is currently in the growth stage – Lux should come out with more
variants in this segment
OPPORTUNITIES OF DOVE
Target male customers
Continuous innovation
THREATS
THREATS OF LUX
New entrants/local competitors/MNCs would increase the competition (Camay, P&G)
High internal competition – Pears also catering the beauty segment (also from HLL
stable)
Excessive dependence on beauty segment makes Lux vulnerable to changing customer
tastes
Technological change makes the existing products obsolete – Lux should focus on
technological innovations like Body Wash
THREATS OF DOVE
Risk of being a brand for “fat girls”