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Lux – A Comprehensive Study

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Set-up of advertising agency

The advertising agency is a service provider. Its main business is communication of information about products and services to the consumers. In the process of creating and executing the communication, the agencies use various suppliers with specialized services like photography, printing, ad film making etc. the basic nature of the agency business is almost the same in all agencies. The difference is in the size of the agencies.

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The nature of agency business can be described as communications.

To do this, the agency has to:

* Study the strength and weakness of the client’s product.

* Study the strength and weakness of the competitor.

* Study the distribution and sales set up.

* Execute the advertising plan.

* Develop an ad campaign.

* Buy media space and time.

* Billing of clients.

* Work closely with client’s marketing and sales department.

* Run the agency’s day to day working.

Advertising has come a long way from the simple sign on the boot-maker’s shop.

In recent years the technology of advertising has changed dramatically. Computers, for one, have revolutionized the way advertising is planned, designed, produced and scheduled.

As a result of technology explosion and consequent market fragmentation there is now a growing interest in the integration of all communication programs. The development of IMC concept has resulted in a change and nature of advertising business. A new breed of media planners have come up. Buying and selling of media is not a straight forward process as it once was.

Advertisers need to understand the strategic function of advertising within the broader concept of business and marketing and appreciate the global effect of the advertising communication on business, industry and economy. There is a need for advertiser to exercise greater sensitivity than their earlier counterparts. Agencies have to understand the real social cultural role of advertising and perceive the impact of society’s values on advertising.

Advertisers today need to face new and challenging ethical issues. They need to be aware of ethical problems relating to use of children and minority group and use of women in advertising. Legal and ethical issues have become an important area that need to be understood by advertisers.

Structure of advertising agency:

Role of account executive:

The account executive needs to fulfill a multidimensional role that encompasses:

* Interdepartmental co-ordination

* Liaison between external agencies and the ad firm

* Liaison between functional departments within the firm itself.

Work area of an Account Executive:

* Researching the client’s product or service and the client’s business methods.

* Meeting the creative media and marketing divisions and the client to identify the USP of the product and its positioning vis-�-vis other competing brands.

* Holding discussions over the brief and the budget of the campaign.

* Co-ordination between the client and the team in charge of the ad campaign.

Client: Lux soap

A brief research was conducted while the marketing brief was awaited from the client.

The brand “Lux”

Lux soap was first launched in 1916 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. The flake-type soap allowed the manufacturer some leeway from lye because it did not need to be shaped into traditional cake-shaped loaves as other soaps were. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use.

Lux toilet soap was introduced in 1925 as bathroom soap. The name ‘Lux’ was chosen as a play on the word “luxury.” Lux has been marketed in several forms, including bar and flake and liquid (hand wash, shower gel and cream bath soap).

Lux soap was launched in India in 1929. The very first advertisement in 1929 featured Leela Chitnis as its brand ambassador. It was branded in India as “the beauty soap of film stars”

Celebrity endorsements

Hollywood

Since the 1930s, many well-known Hollywood actresses have marketed the soap to women as a beauty enhancer. Advertisements have featured Dorothy Lamour, Joan Crawford, Judy Garland, Cheryl Ladd, Jennifer Lopez, Elizabeth Taylor, Demi Moore, Sarah Jessica Parker, Catherine Zeta-Jones, and Marilyn Monroe, among others.

Bollywood

Today, the brand is still heavily advertised in India using Bollywood stars. Madhubala, Hema Malini, Sridevi, Madhuri Dixit, Juhi Chawla, Karisma Kapoor, Rani Mukerji, Aishwarya Rai, Amisha Patel, Kareena Kapoor and Tabu have all been past brand ambassadors. Priyanka Chopra is the present brand ambassador of Lux. In India Shahrukh Khan was the first male in a Lux advertisement.

Lux stands for the promise of beauty and glamour as one of India’s most trusted personal care brands. Lux continues to be a favorite with generations of users for the experience of a sensuous and luxurious bath.

Since its launch in India in the year 1929, Lux has offered a range of soaps in different sensuous colors and world class fragrances. 2003 saw one of the biggest milestones in the history of Lux. From being just a beauty soap of film stars, Lux recognized the need for a compelling message about beauty that would resonate with women of today.

Lux is the largest personal wash brand in the country with a value share of 15%. Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux during the course of a year. This strong association with consumers has led to Lux becoming one of the most trusted brands in the country.

The following marketing brief was received from the client.

Marketing brief:

Situation analysis:

Toilet soap industry is one of the oldest Fast Moving Consumer Goods (FMCG) industries in India. It is among the highest penetrated category within FMCG sector reaching an estimated 95% urban and 87% of the rural households. In value terms the industry is worth Rs.45000 million and in volume terms it is worth .53 million (in 2001 as reported by Operations Research Group (ORG) Survey). The main characteristic of the industry was severe competition and high level of brand proliferation. The industry witnessed 7% decline in value in year 2001.

There were 45 leading national brands. None of the national brands had more than 5% market share and many more regional and unorganized sector/local brands. Hindustan Lever was the market leader with about 30 (number) of toilet soap brands with a total market share of 67% in 1998-99 in organised sector. The leading brands in the market are Dove, Pears, Lux, Dettol, Liril, Rexona, Lifebouy, Nirma, Palmolive and Hamam.

Unilever has inched its Lux brand almost on par with its largest selling soap brand – Lifebuoy. Today both the heritage brands enjoy almost equal share in Unilever’s soaps portfolio. According to AC Nielsen estimates, Lifebuoy has a value share of 18.1 per cent while Lux has inched up its shares at 17.9 per cent recently.

Migrating brands such as Jai with Breeze, reducing the Liril variants and weeding out its Fair & Lovely soap over the years has also helped Unilever rationalize its soaps portfolio. Today, they have the right portfolio in soaps as all the brands have been differentiated. Each soap brand is giving a specific benefit and there is no overlapping between the brands.

Product analysis:

Lux was first introduced as toilet soap in 1925. It offered 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.

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 moisturizing bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992.

In 2004, the entire Lux range was re-launched in the UK 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.

About company:

Unilever

Unilever is a widely listed multi-national corporation, formed of Anglo-Dutch parentage, which owns many of the world’s consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs approaching 180,000 people and had worldwide revenue of almost �40 billion, or just over US$50 billion, in 2005.

The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Patrick Cescau is Group Chief Executive. Unilever’s major competitors include Procter & Gamble, Nestl�, Kraft Foods, Mars Incorporated, and Reckitt Benckiser.

Unilever was created in 1930 by the merger of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie, a logical merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities.

In the 1930s, the business of Unilever grew and new ventures were launched in Latin America. By 1980, soap and edible fats contributed just 40% of profits, compared with an original 90%. In 1984 the company bought the brands Brooke Bond (maker of PG Tips tea), Faberg� and Elizabeth Arden, but the latter was later sold (in 2000) to FFI Fragrances.

Unilever acquired Chesebrough-Ponds, the maker of Rag�, Pond’s Creams and Vaseline, in 1987, which strengthened its position in the world skin care market. In 2000, the company absorbed the American business Best Foods, strengthening its presence in North America and extending its portfolio of foods brands. In a single day in April 2000, it bought, ironically, both Ben & Jerry’s, known for its calorie-rich ice creams, and Slim Fast. In 2006 The company sold most of its European frozen food division.

Today the company is fully multinational with operating companies and factories on every continent and research laboratories at Colworth and Port Sunlight in England; Vlaardingen in the Netherlands; Trumbull, Connecticut, Englewood Cliffs, New Jersey in the United States; Bangalore in India (see also Hindustan Unilever Limited); Pakistan; and Shanghai in China. Its European IT infrastructure headquarters is based in Unity House, Ewloe in Flintshire, Wales.

Unilever has recently started a five year vitality company initiative in which it began to converge the marketing of disparate arms of their business, including personal care, dieting, and consumables into an umbrella function displaying the breadth of their contributions to personal vitality. This plan has been implemented because of the lack of brand recognition that Unilever wields, even despite its ubiquitous presence. In 2006, it concluded with the sell off of the global frozen foods division; excluding the ICF ice cream business, and the Italian frozen vegetables businesses.

Lux:

Lux was first introduced as toilet soap in 1924. 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.

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 moisturizing bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992.

In 2004, the entire Lux range was re-launched in the UK 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.

Since the 1930s, over 400 of the world’s most stunning and sensuous women have been proudly associated with Lux advertisements. Marilyn Monroe, Brigitte Bardot, Demi Moore and, more recently, our own Catherine Zeta-Jones, have all been part of the Lux glamour story.

The name Lux means ‘light’ in Latin; however the name was chosen for its play on the word ‘luxury’.

The crisis still remaining for Lux is the reduction in the number of repeat purchasers. As succinctly put by former HLL Chairman Vindi Banga -it isn’t that Indians bathe less often or brush their teeth less often or indeed wash their clothes less often, but they are now down-trading to lower-priced substitutes from higher-quality brands. A consumer buying six tablets of Lux in a month went to buying three of Lux and three cheaper brands. It’s a problem, which is facing the entire FMCG industry.

For most of the soaps there isn’t much real difference besides the superficial trappings like color, fragrance and wrappers. The problem is that the consumers are slowly losing faith in brands. They are appreciating the ad showing Kareena Kapoor but they are maybe influenced more by the buy one get one offers. Given the larger choice the consumer is into experimentation and only point of differentiation that can be carved out is through effective communication of setting the brand apart.

Current Position in the Market

The Lux brand now has an almost equal market share as Hindustan Lever’s largest selling soap brand – Lifebuoy. According to AC Nielsen’s estimates, Lifebuoy has a value share of 18.1 per cent while Lux has increased its market share to 17.9 per cent.

The company roped in Shah Rukh Khan last year to feature in its campaign and also launched a number of new variants of Lux brand. The spiked body-uplifting and the new aqua and white glow variants gave the 75-year old brand a new lease of life last year.

Then there were special edition packs featuring the actresses over the years with variants under names such as chocolate and aromatic glow. Even region- specific variants such as festival glow were launched specifically for the southern markets.

Apart from this the company reduced the Liril variants and phased out the Fair & Lovely soap. HLL has also been beefing up its body wash and hand wash offerings with more variants under the Lux and Lifebuoy brand.

Lux, as of now, is in the maturity stage as far as product life cycle is concerned. It is, therefore, imperative to continue innovative promotional techniques so that there is no brand fatigue and it does not go into the decline stage.

Market:

Target audience:

The first step to understanding the target audience of Lux is to understand the demographics and psychographics of the target audience thoroughly. This is because of the fact that the advertising communication will not be effective unless the target audience, their psychological set up, factors like their age, gender etc are studied. To convey the right message through the advertisements, use the right media at the right time and at the right frequency, understanding target audience is of paramount importance.

Demographics

The demographics of the target audience for Lux include girls and young women in the age group of 16-35. It includes both working and non-working women who come in the Socio Economic Class (SEC) B and B+, that is, the middle and upper middle class.

Psychographics

The next step is to understand the psychographics of the target audience. Considering the psychographics of the target segment, the typical customer of Lux is a beautiful, young and stylish woman. She is up to date with the latest trends. She is always ready to experiment with new styles as they come in. Being confident from within, she is modern and versatile in her outlook. She is spirited, lively and outgoing.

As the target audience includes women in their mid thirties, it includes women who are working as well as non working women. This part of the target audience includes women who are self-expressive and independent. They are interested in discovering their inner beauty as well as enhancing their external beauty. They are friendly, warm and aspire to be successful in life.

SWOT analysis:

Strengths: Lux is beauty soap which reinvents itself to make it relevant to the masses. Lux is the only one soap which provides all the possible variety of ingredients and fragrances. It has an affordable price. Moreover, Lux has always been a trendsetter in the category.

Weakness: The earlier positioning of “soap of the stars” has somewhat alienated the brand from a portion of the consumers, especially in rural areas. This image has stuck on. This will have to be dispelled so that the rural masses will also relate to the brand.

Opportunity: It has a large market share and hence has a stronghold over the market. This provides immense opportunity for the exposure and acceptance of the new ad campaigns as well as product innovations.

Threat: It is at the maturity stage in the product life cycle and has a threat of going into the Decline stage.

Pricing policy:

A list of the prices of Lux and its competitors as well as the other players in the market has been stated below.

Lux with honey has been categorized as “economy” for its low price of Rs.7.5. Lux international has been priced at Rs.15. The category that is being considered here is the regular Lux which is priced at an average level of Rs.8.

Competitors of Lux

Nima Rose – Nirma is one of the most recognizable Indian brands, Nirma created an entirely new market segment in domestic marketplace and quickly emerged as dominant market player. In the 1980s Nirma catapulted Surf, which was a well-established detergent product by Hindustan Lever, and occupied the top slot in the detergent products segment-a slot it has made its own. In 1990, Nirma entered the toilet soap market and today it is the second largest toilet soap brand in India. Today, Nirma has one of the largest volume sales with a single brand name in the world.

Position in the market – It was launched in 1999; today it has an 18 per cent market share in the soap segment. Nima Rose is already a market leader just as Nirma Lime Fresh is. Nima Rose has been positioned as one of the beauty soaps which contains the natural fragrance of Rose which makes the person feels like as pink as rose .

Palmolive soap – It was launched in 1991 .TFM content of the soap is much more than that was declared on the packaging. Godrej All Care has the highest TFM quantity of 82.5% and thus is clearly the leader among soaps. It also has the least moisture and volatile matter which is a positive thing. Colgate Palmolive (India) Limited has repositioned its Palmolive natural beauty soap line offering a quality bath product with the goodness of natural ingredients and superior skin care properties. The new Palmolive natural’s line is available nationally in two variants – Sandalwood oil and almond oil.

Position in the market – Last year, the company re-launched Palmolive soap in February under the Naturals segment- which has been well received in the market. Today it has a 28% of the market share in the soap segment. It comes under the range of premium soaps.

Mysore Sandal – A tradition of excellence since 1916 from Mysore Sandal Soap Company in Mysore, India. Karnataka Soap and Detergents (KSDL’s) flagship brand Sandalwood soap prepared from 100% pure natural sandalwood oil possesses no animal fats and chemicals. Mysore sandalwood soap was KSDL’s only forte when introduced. But the need to survival broadened its interests to Mysore Jasmine and Mysore Rose.

Position in the Market – Today its market share is of 35% .Mysore Sandal, the sandalwood soap brand from the state-owned Karnataka Soaps and Detergents (KS&DL), is launching ‘Mysore Sandal Platinum’, a super premium soap priced at a super premium Rs200 – four times pricier than any soap made by an Indian company. The most expensive soap brands in India are priced at around Rs50. Apart from KS&DL’s brand, Mysore Sandal Gold is available for Rs50 for a 75 gram bar. However, and international organic soaps are available at more than Rs 100 in supermarkets. KS&DL is also planning to expand its consumer base at the lower end of the market. For the first time, KS&DL is also planning to launch a new soap in the popular category in April.

Promotion:

Promotional activities should include mainly print advertisements. Extensive advertising should be done throughout India in order to refresh the brand in the minds of the consumers so that the brand doesn’t suffer from fatigue in the minds of the consumer. Fresh faces which reflect the real India should be shown. The campaign should be focused on bringing out the inner beauty of every woman. The Campaign for each region of India – South, North, East and West, should be designed exclusively, keeping in mind the psyche of women in each region. The first ad of the campaign should start with south India and then move up in a span of a week towards the east, north and west simultaneously. This is because of the strong customer base in south which will help in gauging the response of the loyal customer base before moving to the other regions.

Outdoors can also be used as a medium to advertise though utmost care should be taken that the advertisements are placed in areas which are accessible to a maximum number of women.

USP of Lux: Lux is beauty soap which reinvents itself to make it relevant to the masses. Lux never believes in following the trends, it sets them and that has been seen in previous ads of Lux.

Marketing Objective:

The marketing objective is to refresh the brand name “Lux” in the minds of the consumers. The brand is at the stage of maturity as far as the product life cycle is concerned. So maximum efforts should be taken so as to renew the positive brand perception and remind the customers about the strong presence of Lux in the market as it will reaffirm the loyalty of the customer base. This will help Lux to lengthen the path to the “decline” stage in the product life cycle.

Research was conducted after the marketing brief was received and data was collected about the competitors of Lux and their USP’s so that Lux could chart out a strategy to counter them. Also, the brand recall of the different players in the market was researched upon.

Brand recall:

USP of competitors:

Nima Rose

Position in the market – It was launched in 1999; today it has an 18 per cent market share in the soap segment. Nima Rose is already a market leader just as Nirma Lime Fresh is. Nima Rose has been positioned as one of the beauty soaps which contains the natural fragrance of Rose which makes the person feels like as pink as rose .

USP – It’s key ingredient that is Rose and is very natural in nature with fragrance of Rose.

Palmolive soap

Position in the market – Last year, the company re-launched Palmolive soap in February under the Naturals segment- which has been well received in the market. Today it has a 28% of the market share in the soap segment. It comes under the range of premium soaps.

USP – High TFM, Ingredients like natural aromatic oils and fragrances.

Mysore Sandal: Position in the Market – Today its market share is of 35% .Mysore Sandal, the sandalwood soap brand from the state-owned Karnataka Soaps and Detergents (KS&DL), is launching ‘Mysore Sandal Platinum’, a super premium soap priced at a super premium Rs200 – four times pricier than any soap made by an Indian company. The most expensive soap brands in India are priced at around Rs50. Apart from KS&DL’s brand, Mysore Sandal Gold is available for Rs50 for a 75 gram bar. However, and international organic soaps are available at more than Rs 100 in supermarkets. KS&DL is also planning to expand its consumer base at the lower end of the market. For the first time, KS&DL is also planning to launch a new soap in the popular category in April.

KS&DL, among the oldest manufacturers of sandalwood soap in India, has developed a new formulation under its existing product, Mysore Sandal Soap, exclusively for the US market. The new 125-gram soap is branded as ‘Mysore Sandal Classic’ and is enriched with moisturizers and conditioners to meet the needs of consumers in countries facing severe winter. KS&DL has also redesigned the packaging of some of its soaps.

USP – Excellent for complexion care. Prepared from pure vegetable ingredients, natural Mysore sandalwood oil, free from animal fats. Recommended in ancient Ayurvedic texts for skin care.

According to the research and the marketing brief received from the client, advertising strategy was devised.

Advertising strategy:

* The advertisement needs a fresh look to it, which stands apart from the advertisements of the competitors. It can use unconventional styles and layouts to grab attention.

* The main point to be stressed in the advertisement is to bring out the inner beauty of women. None of the competitors of Lux are adopting this strategy. Hence it will help Lux to grab attention as well as gain approval of the Indian woman, who is becoming more progressive and modern and independent in outlook.

Women from all over the country should be exposed to advertisement. So it is to be advertised in all the regions – north, south, east and west. Separate advertisements which appeal to the sensibilities of women of each region should be executed so that it can capture the attention of the Indian women as a whole. The first ad of the campaign should start with south India and then move up in a span of a week towards the east, north and west simultaneously. This is because of the strong customer base in south which will help in gauging the response of the loyal customer base before moving to the other regions.

* The fact that Lux brings out the inner beauty of women rather than skin deep fairness is to be stressed.

After developing the advertising strategies, the creative brief was prepared in order to be handed out to the Creative Department.

Creative Brief:

Project Summary:

Lux is a well known toilet soap brand in India. It has reached the stage of maturity in its life cycle. In order to refresh the brand and give it a new lease of life, a new advertising campaign needs to be devised. It should be a national campaign and has to mainly comprise of separate print advertisements for north, south, east and west, in order to capture the local and rural markets also. The first ad of the campaign should start with south India and then move up in a span of a week towards the east, north and west simultaneously. This is because of the strong customer base in south which will help in gauging the response of the loyal customer base before moving to the other regions.

The campaign should focus on the inner beauty of woman and how Lux will help in drawing out the inner beauty of women. Fresh faces (new models) are preferred rather than models who are endorsing other brands and have been shown through media a number of times. This is to bring about a feeling of newness to the brand image.

Target audience:

The first step to understanding the target audience of Lux is to understand the demographics and psychographics of the target audience thoroughly. This is because of the fact that the advertising communication will not be effective unless the target audience, their psychological set up, factors like their age, gender etc are studied. To convey the right message through the advertisements, use the right media at the right time and at the right frequency, understanding target audience is of paramount importance.

Demographics

The demographics of the target audience for Lux include girls and young women in the age group of 16-35. It includes both working and non-working women who come in the Socio Economic Class (SEC) B and B+, that is, the middle and upper middle class.

Psychographics

The next step is to understand the psychographics of the target audience. Considering the psychographics of the target segment, the typical customer of Lux is a beautiful, young and stylish woman. She is up to date with the latest trends. She is always ready to experiment with new styles as they come in. Being confident from within, she is modern and versatile in her outlook. She is spirited, lively and outgoing.

As the target audience includes women in their mid thirties, it includes women who are working as well as non working women. This part of the target audience includes women who are self-expressive and independent. They are interested in discovering their inner beauty as well as enhancing their external beauty. They are friendly, warm and aspire to be successful in life.

Perception/Tone/Guidelines:

1. Dynamic, fresh, contemporary, communication.

2. Try to incorporate the life of normal life of women so that they connect more to the advertisement.

3. The advertisement should have a fresh and conversational tone.

Communication Strategy:

Communication should be fresh, contemporary. It should not be too extra ordinary or the customers will lose interest or cease to relate to the advertisement, and subsequently the brand. Colours used in the ad may relate a sense of freshness and excitement to the consumers.

Competitive Positioning:

Lux has many competitors in the market, namely, Nima, Mysore Sandal, Palmolive etc. Although these are strong contenders in the market, Lux has the advantage of being around in the market for a long time. It has the experience and knowledge of Indian market from the 1920’s which has made it almost a heritage brand. Constant product innovation of the brand also helps Lux win the approval of the industry eye.

Single-Minded Message: Fresh and dynamic communication which is relatable to the masses all over India.

According to the creative brief, the copywriters worked on the headlines for the campaign. The following headlines were chosen to be tested with the target segment:

* ‘Bring out the real you’

* ‘For the real woman inside’

* ‘You are the one’

After testing, the headlines were shown to the clients for their approval. The client approved the first headline “Bring out the real you.”

After this body copy was prepared by the copywriters and sent for the preparation of the rough layout. The rough layout included where the headline would be placed, where the body copy would be placed, and the position of the image. It also depicted roughly the image that would be used for the advertisement. This was shown to the client.

The client approved the rough layout. Then a comprehensive layout was prepared wherein mostly real images were used, except for the real model and a few other details, which would be included in the real shoot of the advertisement. The client approved the comprehensive layout and mentioned a few changes like the use of a particular colour in the background. The colour was changed and a fresh comprehensive layout was prepared which was shown to the client. The account executive, along with the Creative director chose the model for the advertisement. The model was approved by the client.

Client approved the Comprehensive layout and gave permission to go ahead with the shoot of the advertisement. After this, the media brief was handed over to the media planning department in order to prepare the media plan.

Media Brief:

About the product:

The Lux brand now has an almost equal market share as Hindustan Lever’s largest selling soap brand – Lifebuoy. According to AC Nielsen’s estimates, Lifebuoy has a value share of 18.1 per cent while Lux has increased its market share to 17.9 per cent.

The company roped in Shah Rukh Khan last year to feature in its campaign and also launched a number of new variants of Lux brand. The spiked body-uplifting and the new aqua and white glow variants gave the 75-year old brand a new lease of life last year.

Then there were special edition packs featuring the actresses over the years with variants under names such as chocolate and aromatic glow. Even region- specific variants such as festival glow were launched specifically for the southern markets.

Apart from this the company reduced the Liril variants and phased out the Fair & Lovely soap. HLL has also been beefing up its body wash and hand wash offerings with more variants under the Lux and Lifebuoy brand.

Lux, as of now, is in the maturity stage as far as product life cycle is concerned. It is, therefore, imperative to continue innovative promotional techniques so that there is no brand fatigue and it does not go into the decline stage.

Target audience:

The first step to understanding the target audience of Lux is to understand the demographics and psychographics of the target audience thoroughly. This is because of the fact that the advertising communication will not be effective unless the target audience, their psychological set up, factors like their age, gender etc are studied. To convey the right message through the advertisements, use the right media at the right time and at the right frequency, understanding target audience is of paramount importance.

Demographics

The demographics of the target audience for Lux include girls and young women in the age group of 16-35. It includes both working and non-working women who come in the Socio Economic Class (SEC) B and B+, that is, the middle and upper middle class.

Psychographics

The next step is to understand the psychographics of the target audience. Considering the psychographics of the target segment, the typical customer of Lux is a beautiful, young and stylish woman. She is up to date with the latest trends. She is always ready to experiment with new styles as they come in. Being confident from within, she is modern and versatile in her outlook. She is spirited, lively and outgoing.

As the target audience includes women in their mid thirties, it includes women who are working as well as non working women. This part of the target audience includes women who are self-expressive and independent. They are interested in discovering their inner beauty as well as enhancing their external beauty. They are friendly, warm and aspire to be successful in life.

Competitors of Lux

Nima Rose – Nirma is one of the most recognizable Indian brands, Nirma created an entirely new market segment in domestic marketplace and quickly emerged as dominant market player. In the 1980s Nirma catapulted Surf, which was a well-established detergent product by Hindustan Lever, and occupied the top slot in the detergent products segment-a slot it has made its own. In 1990, Nirma entered the toilet soap market and today it is the second largest toilet soap brand in India. Today, Nirma has one of the largest volume sales with a single brand name in the world.

Position in the market – It was launched in 1999; today it has an 18 per cent market share in the soap segment. Nima Rose is already a market leader just as Nirma Lime Fresh is. Nima Rose has been positioned as one of the beauty soaps which contains the natural fragrance of Rose which makes the person feels like as pink as rose .

Palmolive soap – It was launched in 1991 .TFM content of the soap is much more than that was declared on the packaging. Godrej All Care has the highest TFM quantity of 82.5% and thus is clearly the leader among soaps. It also has the least moisture and volatile matter which is a positive thing. Colgate Palmolive (India) Limited has repositioned its Palmolive natural beauty soap line offering a quality bath product with the goodness of natural ingredients and superior skin care properties. The new Palmolive natural’s line is available nationally in two variants – Sandalwood oil and almond oil.

Position in the market – Last year, the company re-launched Palmolive soap in February under the Naturals segment- which has been well received in the market. Today it has a 28% of the market share in the soap segment. It comes under the range of premium soaps.

Mysore Sandal – A tradition of excellence since 1916 from Mysore Sandal Soap Company in Mysore, India. Karnataka Soap and Detergents (KSDL’s) flagship brand Sandalwood soap prepared from 100% pure natural sandalwood oil possesses no animal fats and chemicals. Mysore sandalwood soap was KSDL’s only forte when introduced. But the need to survival broadened its interests to Mysore Jasmine and Mysore Rose.

Position in the Market – Today its market share is of 35% .Mysore Sandal, the sandalwood soap brand from the state-owned Karnataka Soaps and Detergents (KS&DL), is launching ‘Mysore Sandal Platinum’, a super premium soap priced at a super premium Rs200 – four times pricier than any soap made by an Indian company. The most expensive soap brands in India are priced at around Rs50. Apart from KS&DL’s brand, Mysore Sandal Gold is available for Rs50 for a 75 gram bar. However, and international organic soaps are available at more than Rs 100 in supermarkets. KS&DL is also planning to expand its consumer base at the lower end of the market. For the first time, KS&DL is also planning to launch a new soap in the popular category in April.

Budget:

Overall budget for the campaign is Rs. 12 Crore. Budget for print campaign should not exceed the limit of Rs.5 Crore. Outdoor and TVC, which would follow later in the campaign was budgeted at Rs. 7 crore.

Media:

For the print campaign, all leading English newspapers as well as select popular regional newspapers of all the four regions should be selected. Later, when the outdoor campaign starts, hoardings should be placed at all the major centers in the city where women visit. For TVC, main national channels like Star Plus, Sony etc should be used as they have maximum exposure to women. Also important regional channels of all four regions should be used.

Slots preferred:

For TVC, the prime time slot is preferred which includes 7 PM to 9 PM. The slot from 11 Am to 1 AM is also preferred as it will be helpful in targeting the housewives who are seeing TV during that time, especially the soap operas.

The media plan was prepared according to the media brief by Media planning department. The media plan was shown to the client to get his approval. The client gave his approval.

The media department and the creative department work together. The account executive selected the photographer, the producer, etc for the advertisement shoot, as well as prepared the schedule for the shoot. The shoot of the advertisement was carried out on the scheduled days. The images were then handed over to the Art director who worked on it to make the print advertisement. The print advertisement was made ready. It was cross checked with the copy writer and art director for any mistakes.

Presentation to the client ‘Lux’ took place on the pre-decided date wherein the client was shown the finished advertisement. The client approved the advertisement. Then, the account executive took up the responsibility of ensuring that the advertisement was published in the various print media that were mentioned as per the media plan, at the proper geographical areas at the pre determined timings. The response to the advertisement in the south (and subsequently north, east and west) would be assessed and informed to the client after the release of the advertisement.

Cite this Lux – A Comprehensive Study

Lux – A Comprehensive Study. (2018, Jan 11). Retrieved from https://graduateway.com/lux-comprehensive-study/

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