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LUX 1. Introduction * Description of the product Everything about the brand ??? from the look and feel of the products and packaging to the subtle fragrances ??? is a delight to the senses. In fact, Lux has been making waves since 1924, when it launched the world’s first mass-market beauty soap at a fraction of the cost of some expensive brands. How it all started * Lux was first introduced as a toilet soap in 1925. Produced by Lever Brothers, it arrived in the UK in 1928, offering people a chance to pamper themselves for a modest price. From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. * In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours. * Lux soap aws launched in India in the year 1929 * In the early 1990s, Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturising bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992. In 2004, the entire Lux range was relaunched in the UK ; Ireland??to include five shower gels, three bath products and two new soap bars. 2005 saw the launch of three exciting new variants with dreamy names such as “Wine & Roses” bath cream, “Glowing Touch” and “Sparkling Morning” shower gels. * Description of the organisation Introduction to Unilever No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products. Unilever today
No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products. Our brands are trusted everywhere and, by listening to the people who buy them, we’ve grown into one of the world’s most successful consumer goods companies. In fact, 150 million times a day, someone somewhere chooses a Unilever product. Highlights Unilever is one of the world’s leading suppliers of fast-moving consumer goods. Here are some recent highlights from our three global divisions – Foods, home??care and??personal care.
Vision Unilever products touch the lives of over 2 billion people every day ??? whether that’s through feeling great because they’ve got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. A clear direction The four pillars of our vision set out the long term direction for the company ??? where we want to go and how we are going to get there: * We work to create a better future every day * We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big difference for the world. * We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact. We’ve always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are. Purpose & principles
Our corporate purpose states that “to succeed requires the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which we live. ” Always working with integrity Conducting our operations with integrity and with respect for the many people, organisations and environments our business touches has always been at the heart of our corporate responsibility. Positive impact We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society.
Continuous commitment We’re also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business. Setting out our aspirations Our corporate purpose sets out our aspirations in running our business. It’s underpinned by our code of business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports our approach to governance and corporate responsibility. Working with others
We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Business partner code, aligned to our own Code of business principles, comprises ten principles covering business integrity and responsibilities relating to employees, consumers and the environment. * The industry Unilever is an FMCG industry. FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval.
Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management. FMCG industry economy FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13. billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). Common FMCG products Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc.
Market potentiality of FMCG industry Common FMCG products Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc. 2. Executive Summary (180 ??? 200 words) The executive summary is a one page summary of the key findings, conclusions and recommendations that are contained within the report. . Market Research (400 words) This section of the report is broken into two parts: * Primary research * Develop a questionnaire to be used for market research * Describe the method you will use to collect this information (e. g. focus groups, internet etc) * Explain why this method is the best for gathering market research information from your selected market. * Secondary research * Undertake secondary research on segmentation and competition relating to the product or service that you are analysing. * Provide evidence of your secondary research. . Segmentation Market segmentation of is divided under five heads: i. Geographic ii. Demographic iii. Psychographic iv. Buyer behavior v. Volume I. Geographic: Geographic and demographic characteristics of the customers. Europe Working with the Wal-Mart Group, in 2008 we set up ‘sustainability kitchens’ at ASDA superstores around the UK ??? aiming to encourage shoppers to make environmentally friendly changes such as washing laundry at 30??C. Joint promotions with our brands resulted in significant sales increases too. Latin America
Knorr, AdeS, Omo and Rexona are working with one of the biggest retailers in Brazil, Pao de Acucar, to promote CEMPRE, a packaging recycling scheme for shoppers ??? which has so far recycled over 26 000 tonnes of packaging. Asia Working with SM, the largest retailer in the Philippines, we launched a reusable and recyclable shopping bag????? the Green Bag ??? which tripled the reuse of shopping bags in one year. Continuing our relationship with Wal-Mart We continue to provide expert support to Wal-Mart by taking part in four of its Sustainable Value Networks (SVNs), which bring suppliers together to share best practice.
We have developed a reliable way to measure how efficiently suppliers are using water in growing crops, and ran an irrigation study among Californian tomato growers, the results of which will contribute to a sustainability scorecard for Wal-Mart suppliers. In early 2008 Wal-Mart named Unilever its 2007 Supplier of the Year for Sustainable Engagement The success of our business relies on a range of stakeholders, including consumers, customers, employees, suppliers, communities and public bodies II. Volume: * Lux crystal shine _ Rs 17/- * Lux festive glow_ Rs 15/- * Mini Lux_ Rs 5/- Customers
Sustainability issues are becoming a much bigger part of our interaction with large retailers. Our network of retail customers Our products reach shoppers through a network of customers including retailers, wholesalers and distributors. International retail customers such as Wal-Mart, Tesco, Carrefour and Metro predominate in the US and Europe, and have a growing presence in developing markets. Meanwhile, diverse distributors, wholesalers and small, independent outlets are crucial in developing and emerging markets. Our goal is to ensure growth by becoming the partner of choice for our smaller as well as our large international customers.
Working with customers on sustainability Many of our large international customers are now setting ambitious targets in areas such as energy use, greenhouse gas emissions and waste. We welcome this development as a powerful driver for improving sustainability knowledge and performance ??? while our long-standing expertise in sustainability is helping us respond effectively. For instance, we are exploring opportunities for joint initiatives in areas such as sustainable agriculture, measuring lifecycle product impacts, and in-store shopper education programmes. Continuing our relationship with Tesco
Paul Polman, CEO, Unilever and Sir Terry Leahy, CEO, Tesco have established a joint industry group to develop a ‘common business language’ and common metrics for packaging and sustainability. Market segmentation of Lux * Gender: female * Age: 16-35 * Income: Middle income groups (Rs 15 to 20) * Expensive ??? Affordable * Target area: urban and sub-urban ??? upper middle class and middle class 2 Target market * Target market identified 4. 3 Positioning strategy * The positioning strategies used. * Method of positioning described * Reasons for method of positioning. 5. The Marketing Mix Promotion * Active since 1929 Featured all top actress of their times * Main theme- “If it is good enough for a film star, it is good for me * First male brand ambassador * Promotion according to bollywood and south Indian film industry * Bollywood * South Indian Film industry: Shriya saran Jayalalitha * Sales promotion: * Lux gold star offer: 22 carat gold coin in the soap * Lux star bano, aish karo contest: a special promotional pack of Lux soap Place * 2000+ suppliers * 4000 redistribution stocklist * Covering 1 million retail outlets * Reaching 2 million rural customer * * Strategies and objectives of promotion. Describe the different methods of promotion that are currently used * Determine whether they are the most appropriate and make any suggestions for change (if any) Price Recent pricing of Lux(100gm) * Lux Crystal Shine Rs 17/- * Lux Festive Glow Rs 15/- * Mini Lux Rs 5/_ * Geographic and demographic characteristics of the customers. Europe Working with the Wal-Mart Group, in 2008 we set up ‘sustainability kitchens’ at ASDA superstores around the UK ??? aiming to encourage shoppers to make environmentally friendly changes such as washing laundry at 30??C. Joint promotions with our brands resulted in significant sales increases too.
Latin America Knorr, AdeS, Omo and Rexona are working with one of the biggest retailers in Brazil, Pao de Acucar, to promote CEMPRE, a packaging recycling scheme for shoppers ??? which has so far recycled over 26 000 tonnes of packaging. Asia Working with SM, the largest retailer in the Philippines, we launched a reusable and recyclable shopping bag????? the Green Bag ??? which tripled the reuse of shopping bags in one year. Continuing our relationship with Wal-Mart We continue to provide expert support to Wal-Mart by taking part in four of its Sustainable Value Networks (SVNs), which bring suppliers together to share best practice.
We have developed a reliable way to measure how efficiently suppliers are using water in growing crops, and ran an irrigation study among Californian tomato growers, the results of which will contribute to a sustainability scorecard for Wal-Mart suppliers. In early 2008 Wal-Mart named Unilever its 2007 Supplier of the Year for Sustainable Engagement Product * Product classification: * Tangible * Non durable * Convenience good * Prominent variants: * Lux Almond * Lux Orchid * Lux Fruit * Lux Saffron * Lux Sandalwood * Lux Rose * Lux International * Lux Chocolate * Lux Aromatic extracts * Lux Oil and Honey Glow 5. 3Pricing Strategies and objectives * Describe the pricing structure that is currently been used with this product or service and explain the advantages & benefits and disadvantages (if any) of this method. * Any change to the method of pricing that could be used. * Other factors that need to be considered when pricing 6. Marketing Coordination & Controls (250 words) * Budgets needed to put in place the required marketing * SWOT analysis STRENGHTS: 1) Strong market research (door to door sampling ??? once in a year ??? Rural and urban area) 2) Many variants: * Lux Almond * Lux Orchid * Lux Fruit * Lux Saffron * Lux Sandalwood Lux Rose * Lux International * Lux Chocolate * Lux Aromatic extracts Lux Oil and Honey Glow 3) Strong sales and distribution network backed by HUL 4) Strong brand image 5) Dynamically continuous innovations ( new variants and innovative promotions) 6) Strong brand promotion but relatively lower price 7) Mass appeal/ market presence at all segments WEAKNESS: 1) Mainly positioned as beauty soap targeted towards women, lack unisex appeal 2) Some variations like sunscreen, international variant did not do well in market 3) Not much popular in rural areas OPPORTUNITIES: 1) Soap industry is growing in India by 10% ) Beauty segment’s compounded annual growth rate is very high 3) Liquid body wash is currently in growth stage – Lux should come out with more variants in this segments 4) Large market share – strong hold over the market THREATS: 1) High internal competition 2) New entrants ( Vivel) 3) Maturity stage – threat of slipping down to decline stage ??? if constant reinvention is not made. 7. Conclusions (100 words) Conclusions drawn from the information presented in the previous sections of the report. No new information should be included in this section 8. Recommendations (100 words) You need to make recommendations.