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Brand Audit of Pepsi

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BZU, BAHADUR SUB-CAMPUS LAYYAH DEPARTMENT OF BUSINESS ADMINISTRATION MBA 2009-12, SEMESTER 6 FINAL TERM REPORT BRAND MANAGEMENT BRAND AUDIT OF LUX SUBMITTED TO:Mr. RASHID SAEED STUDENT GROUP AKHTAR HUSSAIN CHUGHTAI(MB-09-22) SANIA FAROOQ(MB-09-07) MUHAMMAD IHSAN UL HAQ(MB-09-02) ADNAN ASLAM KHAN(MB-09-28) April 30, 2012 ACKNOWLEDGEMENT We would like to thanks Mr. Rashid Saeed for assigning such an interesting project which has really explored our real talent and it helped us to make projects for our professional life.

It has been really knowledge sharing experience to make this project.

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We would also like to thanks Mr. Mudassar and Mr. ramadan the project sells officers LUX Pakistan for helping us to make us better known what basically marketing mix of LUX is. DEDICATION This Report Is Dedicated To Who are always a source of love, affection and inspiration for us. Whose love and prayers always accompanied us and guide us like a shining star whenever we were in darkness and enable us to reach this stage.


The main purpose of the project is to find what strategies the company uses to market its world famous beauty soap, LUX, in Pakistan; the positive and negative aspects of those strategies.. The project discusses the process of using market segmentation, target marketing, the product, pricing, promotional and distribution strategies and a competitive analysis as well as customer based brand equity of lux. METHODOLOGY OF THIS PROJECT: For accessibility and availability of information we have chosen to work on the strategies of Unilever Pakistan Ltd. Most of the information used in this project is from primary Sources.

The main source of information was the focus group discussion. In addition information was also collected from websites and collected through the distributors of lux situated at Chobara Road. HISTORY OF LUX Lux soap was first launched in the UK in 1899 as of Sunlight soap. After this it was launched in the US in 1916, and marketed as laundry soap targeted specifically at ‘delicates’. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harsh lyes that were often used in soaps at the time. Into. The name “LUX” was chosen as the Latin word for “light” and because it was suggestive of “LUX. ” Lux was introduced as bathroom soap in the US in 1925 and in the UK in 1928 as a brand extension of LUX soap flakes. Subsequently LUX soap has been marketed in several forms, including hand wash, shower gel and cream bath soap. OWNERSHIP: Unilever is one of the world’s largest and leading multinational companies; Unilever commenced their business activities on a larger scale by setting up their first factory in Netherlands, in the year of 1872. . 90% people are using the products of unilever in Pakistan.

Unilever is providing different types of products in this way : • Personal Wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona • Laundry: Surf excel, Rin, Wheel • Skin care: Fair and Lovely, Ponds, Vaseline, Aviance • Oral care: Pepsodent, Close up • Deodorants: Axe, Rexona • Colour cosmetics: Lakme • Ayurvedic personal and health care: Ayush TARGET CUSTOMERS Urban and sub urban middle class, and rural poor people are the largest part of Pakistan population. A research carried out by Unilever Pakistan reveals that urban rich people are more likely to buy imported and expensive products.

Moreover rural poor people tend to buy cheap products even without evaluating its quality. However urban and sub urban upper middle and middle class people tend to buy affordable and quality products. LUX is not a highly expensive but an affordable product. That is why the company targets urban and sub urban upper middle and middle class people who are the second highest population of segment of the country. From the segmentation of customer according to SEC they target category A, B and C, because they are assumed to be financially well-off and can afford to buy LUX. PRODUCT RELATED ATTRIBUTES: Almond Oil

An excellent skin softener and moisturizer. Almond oil is great for all skin types but especially beneficial for dry or irritated skin. Cocoa Butter Cocoa Butter is absorbed quickly into the skin to soften, lubricated, moisten and nutrients the skin. Works great to prevent and treat scars, stretch marks, and damage skin. Color ants We use a combination of micas, oxides, spices, and clays to achieve colors in our products. Distilled Water We always used distilled for safety and purity. Emulsifier Because lotion is made with mixture of both oil and water, an emulsifier is necessary to blend and hold the two together.

We have chosen a natural self-emulsifier which helps to provide a natural moisturizing factor found in the skin. Our emulsifier provides a conditioning and softness to the skin. Fragrance Oil Fragrance oils are added in small enough quantities to not be an irritant for most people. Yet, we add enough to give a light scent which, in your favorite fragrance, you willl have a hard time resisting the urge to sniff your hand (again and again! ). Glycerin Glycerin is a humectant, meaning it draws moisture to the skin. To moisturize the skin, keeping it soft. Good stuff.

Sodium Hydroxide This is the chemical used to make soap. Without this chemical, there is no soap, period. Sodium hydroxides causes a chemical reaction called saponification. Once saponification is complete, the finished product is soap – and there is no lye in the finished product. You will see sodium hydroxide on our ingredient list, however another way to list it is as a saponified oil. Monoide Tahiti A moisturizing and naturally fragrant oil, which quickly penetrates the skin acting as a natural barrier helping prevent dehydration (and wrinkles) of the skin.

A wonderfully, naturally scented oil excellent for all skin types. Olive Oil A moisturizing oil used in soaps – castile soaps are generally 100% olive oil, but there is no requirement as to what percentage must be used. It softens skin while attracting moisture to your skin. Makes for a mild soap which keeps your skin soft, supple and younger looking. Vitamin E A natural skin antioxidant, promoting healthy tissue BRAND ELEMENTS There are six elements of Lux soap and they are as under. Memorability • Lux is easily recognized and pronounciated. • Lux name is very short. Logo of Lux is very simple and attractive. Due to these factors Lux brand has strong memorability the in mind of customers. Meaningfulness • Lux word is persuasive but not descriptive . Its meaning is light. Likability Lux is more likable among the customers due to the following factors. • Affective advertisements • Popular celebrities • Features • Freshness • Colors and packaging • Sponsorship and events • Lux campaigns • Suitable pricing Transferability • Lux is easily transferable from one geographical region to another Adaptability Lux is well flexible brand it accepts changes easily Available with novel changes after a short period of time and it is the requirement of Lux brand. • Its ingredients and packaging changes with time to time Protectability • It is legally recognized • It has proper licensing • Its patents and copy writes are reserved • Its trade mark is also legally protected BRAND PORTFOLIO • Lux shampoo & conditioner • Lux liquid soap • Lux hairspray • Lux shampoo • Lux Shower jel • Lux hand wash COMMUNICATIONS There are number of Sources available for passing the product message. These are as follows; • Television • Outdoor (Billboards) • Magazines • Newspapers Brochures • Internet LUX has been widely advertised in Pakistan ever since the brand was introduced. Pakistani models including Reema Khan, Meera, Aaminah Haq, Babra sharif and various Other leading models and actresses have been “LUX models” from time to time. LUX remains the leading soap brand in Pakistan, representing the stylish class of Pakistan. Things started with a TV show called LUX Style Ki Duniya, now with the country’s leading models and actors taking part in the annual LUX Style Awards every year. Ali Zafar the famous Pakistani Singer has become the first male model for LUX.

LUX PRICING AND DISTRIBUTION Unilever Pakistan Ltd obtained a good position in the buyers’ mind through better product attributes, price and quality, offering the product in a different way than the competitors do. The company offers improved quality of products in the industry at an affordable price with high branding, which ultimately helps to position the product in the buyers’ mind as the best quality beauty soap. The market share of the company in the beauty soap industry is somewhere around 43%. Since in the beauty soap industry all products are of same price

Unilever cannot provide its consumers with better price but it is in a great position in reference with its packaging, fragrances and product designing. ? A positioning map of the company is [pic] POP’S and POD’s Point of Purchases The LUX is not given a notable placement on the shelves of different retail shops & departmental stores for its sales promotion. Usually the company goes for wide display in the stores where it potential for its product. Different eye-catching decorations are made inside the store and in the showcase for outside display. These arrangements are made with the assistance of the sales people of the company.

Lux is available in large quantity in metro super store ,Emart ,Al -fateh ,bombino,city mega mart etc and well decorated in isles. Point of displays Pod’s are playing a major role to leaver up the brand equity of LUX in E-mart LUX is displayed in proper racks provided by the uniliver and LUX has occupied a complete U-turn in E-mart. LUX is displayed in proper asiles at Al-Fatah to capture the attention of the customer. LUX is also showed at the top in the sb and family mart. COMPETITORS OF LUX INTERNAL COMPETITOR Lifebuoy: Lifebuoy is introduced in 1895 and it is owned by uniliver company .

It has 18% market share in the bathing category. It was around 2002 that the product moved from being a hard soap to a mild soap that delivered a significantly superior bathing experience. The new soap had a refreshing fragrance and its overall positioning changed, painting its promise of health in softer, more versatile and responsible color—for the entire family. The packaging was also changed: The rugged looking packs were soon replaced with a softer pinkish cover. This was followed by a series of ads highlighting the soap’s germ-fighting benefits. Lifebuoy had become a family soap with hygiene as its core promise.

Right from the early days, the brand has preferred effective communication to celebrities. The USP of life buoy is now a days “ Koi Dar Nahi” EXTERNAL COMPETITOR Hoor beauty Soap Hoor beauty soap is a local brand it is prepared by Azhar Corp. Its target market is also females this brand emphasis on it keeps the skin fresh and glowing its brand mantra is “ hoor hi mujhy hoor banaye” this brand is communicating through electronic media,out door advertising and vehicle advertising. Its brand ambassador is Pakistani film star Resham . Its distribution through direct channels. They are positioning through small retailers.

Another competitors of LUX brand are Pakeeza,Palmy and Capri. They all are providing suitable and affordable prices to customers. CUSTOMER KNOWLEDGE STRUCTURE: We have conducted a survey by using questionnaire techniques . we have compile the information in this way regarding brand. Consumers of LUX brand are mostly savvy customer they have a lot of knowledge and awareness about the brand. They know about the advertisement of LUX with high priced brand ambassadors . They have strong image and registration about the brand due to its corporate name , logo , attractive packaging , Pop’s and Pod’s .

They also know about the promotional schemes of LUX like LUX style award. Customers are educated now a day so they also know about the targeting of LUX. (survey questionnaire are attached end of the report) SOURCES OF BRAND EQUITY: The brand equity of LUX exists due to the following reasons in the mind of consumers • Company repute • Unique features • Packaging • Great awareness and familiarity • Latest advertisements • High standard Retailer e. g E-Mart , Al-Fatah • POP’s and POD’s • Promotions • Concerts of LUX • Celebrity endorsement BRAND MANTRA’S OF LUX “Khoobsurti ka raz ub ap k pas” “Beauty begins with LUX” LUX brings out the star in you! ” CBBE PYRAMID [pic] Resonance: • Customer feels proud by using LUX • They feel it is special for us • They really love and want LUX • They purchase the brand whenever they go to store • They really like to use LUX Judgment: Customer judgment regarding brand are as an under • Quality is good • Packaging is attractive • Features are outstanding • Decent and attractive of LUX Feelings: • Customer gets excited while using LUX • They feel warmth feelings • They feel freshness • They feel they are more beautiful Performance: • It smoothen our skin • It fairs face completion Imagery: Customer continuously using LUX whenever goes to store • Brand personality of LUX is very attractive • Customer experience is good with LUX • Customer loves that people really who use LUX • Retail store are the best places to buy LUX Salience It satisfy all the needs and wants of female MAJOR ISSUES • For Sales growth they need highly intensive distribution and strong promotions • Uniliver is facing competition from P & G as on the base of different brands market share • Uniliver has to maintain its difference from other brands as creating unique values that others are not giving with core product. Sales growth is possible when product remain at fixed price for a specific time period and this depend on cheapest raw material handling and its transporting • Latest advertisement of Palmolive ,Capri , palmy and hoor soaps • Huge budget for advertising • Huge investment on packaging • Economic crisis SWOT ANALYSIS OF LUX Strengths • 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 Strong brand image • Positioning focuses on the attractive beauty segment • Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment) • Though it is in popular segment, it is having mass appeal/market presence across all segments (43% of the soap market captured by Lux (sales / volume) • Unique advantage of having access to resources Weaknesses Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex appeal • Some variants like the sunscreen, International variant did not do well in the market • 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 (of message of the advertisements) • Stock out problems – replenishment time is high in semi-urban/rural areas • Earlier positioning as the “soap of the stars” has somewhat alienated the brand from a portion of the consumers especially in rural areas. Opportunities Population growth rate. • High urbanization rate. • High literacy rate. • Soap industry growing 10% in Pakistan • Lux must reinforce its presence in the beauty segment • More promotions like price-offs and samples • Line extension • Liquid body wash is currently in the growth stage – Lux should come out with more variants in this segment • Level of servicing is high during sales promotion schemes – this could be brought down • It has a large market share and hence has a strong hold over the market Threats • High inflation rate. • Change in manufacturing technology. • Low purchasing power. • Decrease in GDP growth rate. Increasing interest rates. • Decreasing investment. • Recessionary period in business cycle • Instability In Pakistan • Terrorism in Pakistan • New entrants/local competitors like hoor, palmy, pamolive, Camay and Capri would increase the competition • Political effects • Legislation effect • High internal competition – Pears, life buoy also catering the beauty segment • Excessive dependence on beauty segment makes Lux vulnerable to changing customer tastes • It’s in the maturity stage in the Product Life Cycle and has a threat of slipping down to decline stage if constant reinvention of the brand is not carried out.

BRAND STRATEGIES: • Provide high quality at reasonable prices • Increase market share through different flavors and packaging • Promote the brand with latest advertising by using renowned and high priced celebrity endorsement • To beat the competition by introducing further products of brand • Leaver up the brand through flanker products 4 P’s OF LUX BRAND Product LUX is an internationally renowned beauty soap brand of Unilever. Though manufactured in Pakistan for the local market by Unilever Pakistan Ltd, as an international brand, it maintains an international quality for the product.

Formula given by Research and Development departments in foreign countries, LUX is produced in Pakistan from imported raw materials like abroad. Sodium soap, glycerol and different extracts according to flavors, coming from Unilever plants situated LUX is offered in Pakistan in six different flavors which are: LUX Energizing Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, LUX Almond Delight and LUX Aqua Sparkle. Taking into account the convenience of its customers, the company manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm. Price

Though Unilever Pakistan gives its LUX customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a product with a vulnerable demand in Pakistan. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. If we compares LUX’s price with its major competitor. Company carries out research on competitors’ price and brand loyalty when it feels extreme necessity of changing price.

Place Unilever Pakistan Ltd. has a huge distribution channel for LUX all over the country as its sales reach more than 10 million pieces a year. The company has six huge warehouses in Pakistan, where the product goes after they are manufactured at Kalurghat factory. The company does not use its own fleet of transport for distributing its product. However, it has outsourced its distribution process to various third party distributors, exclusively dedicated to Unilever Pakistan Ltd. These distributors then upply the product all over Pakistan to a huge number of retailers. Even though LUX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Pakistan because of a recent increase in demand of its product to all segments of the population. Promotion: Unilever is giving more concentration on its promotional activities to market its brand . It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotional activities for LUX.

They do not only promote LUX in Pakistan for the beauty conscious females, it also promotes the brand for males and the company proved that, by including world famous male celebrity Shahrukh Khan for their advertising campaign. Unilever Pakistan Ltd spends a huge amount of money for promoting LUX through TV commercials, newspaper advertisements and billboards. Moreover it also undertakes small promotional campaigns at different schools, colleges, universities and recreational parks with winners of its Zonal Beauty Contests.

RECOMMENDATIONS In this project as a marketing manager (Ms. Sadia & Ms. Ruqia) suggest some recommendations to Unilever Pakistan Ltd. to adopt more successful operation in Pakistan. Since a huge portion of the rural poor people is demanding LUX in recent days, Unilever Pakistan Ltd should expand their target market also towards the rural people. They should also conduct different promotional activities in rural fairs and socially responsible promotional activities to attract rural consumers and social awareness .

Because LUX has different skin type soap so now if they provide different types of beauty soaps for male and female soap under the same brand name i. e. LUX it might increase their sales and • Company should spend 60% budget on promotion and 40% on advertising in order to leaver up the brand • LUX should not emphasis on beauty segments • Company should increase the number of warehouses for the purpose of in time delivery • Company should conduct research through focus group to now the new ideas regarding brand amendments • Company should use more and more print media to market its brand LUX • Company should change its brand slogan “LUX brings star in you “because in this way customer perceive that the brand is only the choice of stars and for the celebrities only • Fragrance should be changed on the behalf of customers CONCLUSION The beauty soap industry of Pakistan consists of a few producers in the industry. The demand for this product is very much attractive in terms of pricing.

Unilever Pakistan is providing LUX. at a price which is affordable to most of the people in the country. Beauty soap is an uprising product in Pakistan as a greater portion of the population, both male and female, are now getting more beauty conscious. As a multinational company Unilever Pakistan with heavy promotional activities, has been able to penetrate the market. With six different fragrances, three different sizes, international standard and high quality design, as a product, LUX has been highly successful over the years.

Its distribution process is highly efficient. Its promotional activities, like the beauty contest has been a milestone in attracting a huge number of customers. Overall with its marketing activities LUX has been a successful brand. The only place where rival companies are progressing is in giving customers redemption offers. Research revealed that Pakistani customers are highly attracted to this sort of offers. These offers are not sustainable in the long run but still it takes away a considerable part of LUX’s sale in the short run.

REFERENCES To check the positioning of LUX brand we visited the METRO,E-Mart,SB and Al-fatah We also met the distributers of LUX brand Mr. Muddasar at Millat Chowk Office We conducted one to one meeting with retailers to get information regarding the brand We filed the survey Questionnaire from the market Marketing Management by Kotler 12th Edition. Principle of Marketing by Kotler. http://www. unilever. pk [pic] ———————– [pic] [pic] [pic] [pic] [pic] Market Share [pic] ———————– [pic]

Cite this Brand Audit of Pepsi

Brand Audit of Pepsi. (2016, Oct 30). Retrieved from https://graduateway.com/brand-audit-of-pepsi/

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