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.
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
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.
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 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”
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.
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.
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.
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
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.