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    Letter Transmittal

    ABDULLAH AL FARUQLecturer

    School of Business Administration

    American International University-Bangladesh

    Banani, Dhaka.

    April15th,2008.

    Dear Sir,

    Please accept the term paper about the Unilevers beauty soap LUX.

    This report has completed about to understand the practical marketing

    strategies and different terms of marketing of Unilever, Bangladesh. Major of

    the information was conducted from SCM department and also internet

    surfing. In our term paper, we conveyed which market they belong, how they are

    building customer value, satisfaction and loyalty, brand positioning, PLC stage, how

    they are dealing with competition. At the same time we wanted to show you,

    how they manage and maintain their marketing plans.

    I would like to thank Mr. MD.Borhan Uddin Bhuiyan, who is working as a

    promotional buyer for providing us important information about this term

    paper.

    Sincerely,AAAAAAA

    BBBBBBBBBB

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    Executive Summary

    Unilever is a multinational consumer product manufacturing giant operating in over

    hundred countries all around the world. It operates under the famous brand names likeWheel, LUX, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Lipton, Lipton

    Taaza, Pepsodent, All Clear, Vim, Surf Excel, and Rexona. Unilever Bangladesh is

    the Bangladesh chapter of Unilever, where the company holds 60.75% share whereas

    the Government of Peoples Republic of Bangladesh holds 39.25% share.

    Unilever Bangladesh is a leader in the toilet soap industry of Bangladesh. It operates

    with health care and beauty soap in this industry. Its beauty soap is the world wide

    famous brand, LUX.

    Unilever segments LUX.s market according to geographical location. It further

    differentiates these segments into Psychographic Segmentation which takes into

    account education and profession which ultimately measures the financial ability of

    consumers. The cluster is divided into five parts starting from urban riches and ends

    with rural group. Unilever targets the urban and sub urban upper middle class and

    middle class segment of the population.

    LUX is all about the feeling of LUXury and glamour. They are creating customer

    valu by providing good quality product and its unique characteristics has an

    impact on the buying behavior. In Bangladesh, LUX has been successfully seeking

    out new glamour icons for the Bangladeshi cultural arena. In 2006, the nationwide

    contest of a dream come true for Bangladeshi girls was taken to an entirely

    different level. Unilever believes, Do not just make sales create customers, who

    will not only be a customer but also a satisfied customer thats why they are trying

    there best to keep their customer satisfied.

    After many fluctuating demand of LUX now it is in maturity stage which is the

    best time for a particular product. LUX has effectively managed its PLC through

    careful brand building and changing the product in line with the changing

    consumer. They successfully use film stars and have been consistent in terms of

    communication and positioning. The brand is also the classic example of

    successful celebrity endorsement.

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    In the battle field of modern business LUX is competing with their competitors by

    developing their product and proved the product as the most versatile product in

    the market.

    ACKNOWLEDGEMENTAt the very outset, we would like to take this opportunity to express our

    gratitude to our course instructor, Mr. ABDULLAH AL FARUQ for his

    continuous inspiration, supervision and patience. Without his guidance and

    support it would not have been possible to come this far. We also like to thank

    Mr. MD.Borhan Uddin Bhuiyan for his help and information. Because

    without his cooperation, our report will not be successful as it is now.

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    Introduction:

    One of the worlds largest and leading multinational company Unilever opened

    their first factory in the year of 1872. Operating in Bangladesh for over the last

    four decades the company is trying to remove the daily tiring and boring routine of

    life by bringing world class high quality products at the door step of their

    customers. The usage of Unilever products by over 90% people in Bangladesh

    stands a evidence to their successful operation.

    Unilever Bangladesh is a leading consumer goods producing company operating in

    the home, personal care and foods industry. Their array of products show that they

    produce household care, fabric cleaning, skin cleansing, skin care, oral care, hair

    care, personal grooming and tea based beverage products under worldwide famous

    brand named Wheel, LUX, Lifebuo y, Fair & Lovely, Pond's, Close Up, Sunsilk,

    Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel, Rexona etc.

    The companys constitution shows that Unilever holds 60.75% share while the

    Government of Peoples Republic of Bangladesh holds 39.25% share of Unilever

    Bangladesh.

    Unilever has two manufacturing units that produces soap and personal care

    products located in Kalurghat Heavy I/A, Chittagong. Moreover it has a tea

    processing plant in Chittagong and three manufacturing units in Dhaka owned bythird parties. With their overall operation in Bangladesh, Unilever employs around

    10,000 people of which 99.5% are locals.

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    The organizational structure of Unilever Bangladesh is as following.

    Data presented in the figure has been taken from the web site of Unilever

    Bangladesh.

    Over the years Unilever has been highly successful in skin cleansing products that

    is soap. They divide their produced soaps in two categories like i) health care and

    ii) beauty soap. The healthcare soap has been branded with the name Lifebuoy and

    the beauty soap with LUX.

    Customer Manager

    Brand Director(Personal Care)

    Brand Director(Health Care)

    Brand Manager Brand Manager

    Front line Manager Front line Manager

    Chairman / Chief

    Executive Officer

    Development Director Finance Director HR Director

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    Category of Product:

    LUX falls under the category of toiletries product as a beauty soap.

    Market Segmentation:

    Market segmentation is the process through which a company differentiates its

    market according to wants, locations, buying attitudes and buying practices of

    consumers. The company claims that LUX is the highest selling beauty soap in

    Bangladesh. Moreover a survey carried out by group our members in different

    locations of Dhaka city; both posh and poor areas expose the same result. Though

    LUX is the highest selling beauty soap in Bangladesh but it does not go for

    traditional mass marketing. Moreover as a beauty soap LUX does not even

    segment its market according to gender or age group. They segment their marketaccording to geographical area i.e. urban, sub urban and rural area consumers.

    They further differentiate these segments according to Psychographic

    Segmentation. The Psychographic Segmentation divides the population in five

    segments; urban rich, urban and sub urban upper middle class and middle class

    people or family. Urban rich categorizes the highly educated and top class service

    holders whereas incase of Rural class category the opposite is true. A market

    segmentation pyramid according to geographical area used by Unilever

    Bangladesh is shown below:-

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    Building customers value, satisfaction and loyalty

    LUX is all about the feeling of LUXury and glamour. In Bangladesh, the "Think

    Stars" activation has brought dream stars to the very houses of consumers. LUX is

    trying to reinvent its brand from the commodity mound. They have chosen a

    completely new approach to combat the limitations of growth in this hugely-

    competitive market. But it has achieved a buzz creating and an increased

    awareness among the customers. Whether it will be successful or not is open to

    speculation as people hate it or like it but there are a few who will be indifferent to

    it, thus this statement has been successful in cutting across the confusion of

    advertisement to achieve customer attention.

    For any product, the brand associated has a huge impact on the customers in terms

    of decision making. Brand is an intangible thing and it has some unique

    characteristics. Its unique characteristics has an impact on the buying behavior of

    the consumers as well as its product related attributes. For example, LUX as a

    brand symbolizes beauty. The successful brands are those that capture a unique

    position which cannot be easily imitated by others. The brand is consequently the

    combined of the collective impression it makes in the minds of its target customer.

    It may be perceived differently by different people.

    Over the years, LUX has been a trusted household brand that has inspired images

    of beauty, with confidence. It is the beauty soap of women from various branchas

    of achievement dancers, singers, models all famous in their own field, all

    representing pinnacles of achievement all stars.

    LUX -a brand indistinguishable to beauty in the Bangladeshi market as well as

    international market. This concept of beauty was further reinforced by itsadvertising strategy of using top film stars. In Bangladesh, LUX has been

    successfully seeking out new glamour icons for the Bangladeshi cultural arena. In

    2006, the nationwide contest of a dream come true for Bangladeshi girls was

    taken to an entirely different level. The focus this year was on acting and the big

    difference was that the winner of LCSS 2006 would get the lead role in a

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    cinematic version of Humayun Ahmeds acclaimed novel Daruchini Dip. LUX

    provides a range of products in different categories. For that reason the entire

    target market will get a lot of variety.

    Unilevers mission is to add strength to life. Their profound extractions in markets

    around the world give them a strong relationship with their consumers. LUXs

    advertisement has been already been successful in achieving increased awareness

    among the customers. Unilever believes, Do not just make sales create

    customers, who will not only be a customer but also a satisfied customer. They

    also believe that, the immediate profit they make from the first sale, satisfied

    customers will help them to build their business in 2 additional important ways:

    1. They become a reservoir of repeat buyers. For some businesses that means

    repeat buyers for more of the same product or service. For every business, it

    means buyers for additional products and services.

    2. They automatically refer more business to you from their friends and business

    contacts. This is highly profitable business for you because it does not cost you

    any time or money to get it.

    However, Unilever always try to give customers more than they expect. To

    compete effectively in the global market place today, a company has to be more

    customer-oriented rather than the product-oriented philosophy that used to exist.

    Customers today are more sophisticated and value-maximizes. They form an

    expectation of value and act on it. Today, buyers buy products from the firm that

    they perceive to offer the highest customer-delivered value. Losing customers can

    drastically affect the company's profits. It is therefore important for companies to

    have an extensive corporate policy towards the retention of customers. It is

    sometimes said in marketing literatures that, the cost of attracting a new customer

    is estimated to be five times the cost of keeping a current customer pleased. To

    keep customers happy however, marketers can add financial or social benefits to

    products, or create structural ties between the company and its customers. Total

    quality is one of the key to value creation and customer satisfaction.

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    successful celebrity endorsement. The first celebrity to endorse the brand was

    Leela Chitnis . From Leela to Aishwarya , From Madhuri to Madhubala, LUX has

    been endorsed by more than 50 film stars in India. Since the 1930s, over 400 of

    the worlds most stunning and sensuous women have

    been proudly associated with LUX

    advertisements. Marilyn Monroe,

    Brigitte Bardot, Demi Moore and,

    more recently, Catherine Zeta-Jones,

    have all been part of the LUX glamour

    story But in all these communications,

    the celebrity never shadowed the brand.

    LUX was always changing with the times. Whether it be in terms of the product

    or in terms of promotions, the brand kept the consumers excited. LUX has two

    basic extensions in terms of segments. LUX beauty soap and International

    LUX.LUX was initially a premium brand. LUX was being projected as an

    inspirational brand and the endorsements by stars further reinforced the

    positioning. The increasing competition in the soap category forced LUX to

    rethink on its targeting strategy. The brand had a choice either to compromise on

    market share and uphold the premium positioning or to retain the market share anddilute the positioning. LUX wanted to ensure that the brand be positioned as

    premium but also did not wanted to compromise on the share. Thus born

    International LUX which is the premium variant and the affordable segment was

    catered by LUX beauty soap.LUX beauty soap is available in four variants: Exotic

    Flower Petals, Fruit Extracts, Almond and Sandal. LUX has a common ingredient

    of Milk cream in all the variants.

    In 2005 LUX celebrated its 75th anniversary sparking of a controversy. Deviating

    its tradition of roping in Bollywood Divas, this time none other than Shah RukhKhan endorsed LUX. The ads created instant controversy with marketers

    discussing whether the brand has suddenly become MALE. Paul Newman also has

    endorsed LUX soap which shows that LUX makes such stunts to excite the

    market. Whatever be the controversy, the brand again succeeded in creating

    excitement in the market. Some argue that HLL was testing a new positioning to

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    appeal to male users while others say that it was a one time endorsement to break

    the clutter. For marking the 75th year LUX came out with a celebration range

    endorsed by Kareena Kapoor . The Celebration range too created news because of

    its variant: Chocolate Seduction. Over these years, the positioning of LUX also

    evolved. Earlier the brand used the positioning Beauty soap of Film stars. But as

    the customer evolved, the positioning lost its charm because customers began to

    doubt whether the

    film stars actually used this brand. Taking a cue

    from the customers, LUX changed the positioning

    appealing to the need for becoming a star. The new

    positioning is communicated with the tagline

    " Bring out the star in you". Although worldwide the

    brand is being endorsed by film stars, the actual

    package usually contains picture of international models and not film stars. While

    LUX beauty soap is sticking to the age old positioning, LUX international has

    moved from being a soap brand to a skin care brand. LUX International has the

    tagline " Not Just Soap, Its Skin Care". Under the LUX umbrella brand a variety of

    personal wash products like body shampoo,hair shampoo etc are introduced. The

    brand will experiment and explore more in the days to come.

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    Unilever and its compotators:-

    Unilever is a company who bringing world class consumer products to millions

    of people in this country. Unilever's mission is to add vitality to life. Unilever

    Bangladesh is synonymous with vibrant development, progress and

    innovation.Over the the last four decades, Unilever Bangladesh has been

    constantly bringing new and world-class products for the Bangladeshi people.

    Unilever Bangladesh has many brands, among of them LUX is one. Everything

    from look and feel to fragrances of LUX is a delight to the female senses. Over

    the years, LUX has covered various aspects of beauty and stardom. But now

    LUX feels that women have forgotten that beauty should be fun. And looking

    great is an integral part of being a woman.

    Key facts

    First mass marketed toilet soap launched in 1924

    Sold in over 100 countries

    Market leader in various countries including Arabia, Brazil, India

    LUX is marketed by different size for higher level to lower level.Based on

    the people skin LUX has different types beauty soap with different flavour.

    LUX Energising Honey incorporates the beauty secrets of Fruit Extracts,

    rich Milk Cream and Honey, for a fresh renewed feeling.

    LUX Nature Pure has nourishing coconut oil and cucumber soap bits. Its

    creamy lather gently purifies the skin, leaving it clear and fragrant.

    LUX Golden Glow comes with the magical touch of lustrous Honey and

    precious Sandalwood Oil.

    LUX Orchid Touch comes with the delicate

    touch of rare orchids and precious Jojoba Oil,

    for a softer skin.

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    LUX Golden Glow

    LUX Almond Delight come with the deep

    Moisturization of exotic Peach, Cream and

    Precious Almond Oil.

    LUX Aqua Sparkle brings out your natural liveliness. Invigorating

    riverbed minerals and spring water provides your skin with essential

    moisture, leaving it hydrated and looking bright.

    LUX always used super stars as their brand ambassador. LUX also arrange

    talent hunt competition for young generation.

    LUX Channel I Superstar

    LUX, with its history of creating stars for the

    Bangladeshi glamour world has taken its initiative

    to a new high. LUX Aqua Sparkle

    LUX thinks that they will bring star status to a consumer doorsteps. LUX, with

    its abundance of exotic beautyfying ingredients has lead to beautiful skin -

    therby making women who use it more gorgeous naturally! in recent times, LUXhas embraced beauty and feminity of the 21st century women. It aims to be the

    paradigm of the new feminity. That' s why LUX celebrates the pleasure of being a

    woman today by encouraging women to feel and look beautiful, be

    individualistic about their self-expression and indulge in the rituals of

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    beautification in an unapologetically feminine way. LUX beautifies in a playful

    way, letting women express their feminine spirit without constrains

    LUX always thinks about consumer acceptance of the product. LUX try to fulfill

    the consumer demand about the product.

    LUX already established a brand image of its own product.They always use

    superstars as their brand ambassador. LUX is marketed with three different sizes;

    small, medium and big. They always try to fulfill the consumer demand thats

    why they marketed different flavour beauty soap under in LUX. Their target

    market is not a group of people. All female is their target market. LUX believe

    that every woman wants to feel like a fortune. On this note, LUX is celebrating

    the feminity and playfulness to remind women to enjoy absolutely everything

    about becoming and being beautiful. In this way LUX fulfill the consumer

    demand and compet their competator

    Recommendation based on the analysis of marketing management

    theory application by the product brand marketer on

    Lux is all about feelings and glummer, not only in Bangladesh but also in other

    countries. So we can say the have successfully implement all the marketing strategies

    in a proper way. Getting the loyal customers is not an easy task; everyone must utilize

    their full resources to beat the competition.

    The marketing theory of giving customer value is given below:

    Total customer value

    Product value

    Services value

    Personal value

    Image value

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    Product value

    New products fail at a notoriously high rate. Numerous studies have identified the

    primary cause of such failures as a misunderstanding of the market: companies

    introduce products that are perceived by customers as offering inferior value relative

    to products already on the market. The tools of customer value management help

    management teams overcome the problem. These tools can use information generated

    by conjoint and other market research techniques to help provide a complete

    simulation of how customers will perceive the product.

    There is no question about lux to its product value; not only in our country but also

    the other countries as well lux is creating the highest demand. Over the years, Lux has

    been a trusted household brand that has inspired images of beauty, with confidence. It

    is the beauty soap of women from various spheres of achievement dancers, singers,

    models all famous in their own field, all representing pinnacles of achievement all

    stars. It shows how reliable this product is. It makes reliable by its performance. It

    claim no single complain about its product quality.

    Services value

    The service quality of lux is magnificent. Luxs advertisement has been already

    successful in increasing awareness among the people. The Lux has a brand image thatthe customers cannot ignore it. Their main goal is not only increasing the revenue, but

    also they always tries to involve themselves in making the society aware by providing

    beauty tips.

    Personal value

    At present customers are more knowledgeable. Now they like to get more within a

    product.

    Lux follows always a golden rule, Always give customers more than they expect.To compete effectively in the global market place today, a company has to be more

    customer-oriented rather than the product-oriented philosophy that used in the entire

    marketplace.

    Customers are more sophisticated and seeking for maximize the values today. They

    form an expectation of value and act on it. Thats why we are getting much more

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    varieties in a single brand. As we can say that, lux segments their market to keep on

    head about customer personal value.

    Image value

    There is nothing to say about lux for its image value. They have already made a brand

    image that people are fully satisfied only after hearing the name of soap that is Lux.

    Not only in rural area but also in urban area people are fully aware their service

    quality. For any product, the brand associated has a huge impact on the customers in

    terms of decision making and recall factor. Brand is an intangible thing; it has a

    personality of its own which is projected to the customers. Its personality is a follow-

    up over the behavior of the consumers as well as its product related attributes. For

    example Lux as a brand symbolizes beauty. In one line - brand is a consideration. A

    thought is the perception which the customer has in her mind regarding the brand. The

    successful brands are those that capture a unique position which cannot be easily

    imitated by others. The brand is consequently the combined of the collective

    impression it makes in the minds of its target spectators. It may be perceived

    differently by different people.

    Challenges for the Lux:The market study shows some barriers for Lux during the time of meeting the

    customer expectation. Here is a list given below.

    More accurately meet customer requirements through better forecasting

    Establish centrally led organizational structure within value chain management

    operations

    Implement integrated and coordinated planning system

    Strategies against these barriers:Here is list of their strategies that they usually follows.

    Work with the leading provider of supply chain management solutions

    Replace fragmented systems with an integrated supply chain management

    solution

    Result:

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    Referance:-

    01.MD.Borhan Uddin Bhuiyan, Promotional buyer.

    02.www.unilever.org

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