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PRODUCT LIFE CYCLE OF
MARKETING MANAGEMENT
Presentation by:
1. AVICK BISWAS
26/08/09
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Doing well and doing good.
To make cleanliness commonplace, to lessen
work for women, to foster health and contributeto personal attractiveness, that life may be
more enjoyable and rewarding for the people
who use our products.
William Hesketh Lever
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INTRODUCTION TO PRODUCT LIFE CYCLE The course of a products sales and profits over its lifetime is called the
product life cycle.
PLC shows the stages that products go through from development to withdrawalfrom the market.
Product Life Cycle (PLC):
Each product may have a different life cycle.
PLC determines revenue earned.
Contributes to strategic marketing planning
To identify when a product needs support, redesign, renovating , withdrawal,etc.
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PLC OF LUX SOAP INTRODUCTION TO LUX:
We all want to be pampered, to look and feel great And that's just what Lux offers you on a
daily basis at a price you can afford.
Lux is the brand of UNILEVER INDIA LTD. It has been winning hearts of INDIAN consumers
for 80 years.
Lux stands for the promise of beauty and glamour as one of India's most trusted personal
care brands.
LUX PRODUCTS : Lux had modified their product into:
Orchid touch Almond delight Energising fruit Aqua sparkle
GLAMOUR FACTOR
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Lux launched the worlds first mass-market beauty soap in the US in 1924 & had beenlaunched in India in 1929.
At that time there was only one competitor of Lux, which was from its own brand
LIFEBUOY.
In the initial stages Lux was introduced in the major cities of INDIA like Calcutta, Mumbai etc.
MARKETING OBJETIVES - was to create the product awareness and to attract thecustomers towards the product.
The Lux MARKETING STRATEGIES in the initial stages :
Product = They offer only on product in the market. They did not come up with the
differentiated product.
Price = In the initial stages of the product, they offer the relatively higher price than their
competitor (LIFEBUOY). Because, they want to recover their initial cost of making the
product.
INTRODUCTION STAGE
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Advertising = In the initial stages, they allocate more advertising budget So that more and
more customers could be attracted towards the product.
In ads they targeted the early adopters, who were readiest to buy the product.
The first ambassador, Leela Chitnis.
Distribution = was selective and only covers the major cities of INDIA to get recognition in
those cities.
Their distribution channel was through: Manufacturer Wholesaler & Retailer
INTRODUCTION STAGE continued
Sales
Costs
Profits
Marketing Objectives
Product Strategy
Price Strategy
Low sales
High cost per customer
Negative
Create product awareness in major cities in India
Offer a basic product
Use cost-plus
Distribution Strategy Build selective distribution
Advertising StrategyBuild product awareness among early adopters
and dealers.
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In the growth stage, their sales rapidly started rising.
They have expanded their market to the other cities of INDIA.
MARKETING OBJECTIVES = The marketing objectives of the Lux were to expand their
market to the other cities of INDIA.
Another objective was to maximize more market share.
In the growth stage, company had the following MARKETING STRATEGIES :
Product = In the growth stage, the company had offered the same product in the market.
Price = In this stage, the company had changed their price to some extent because of
maximizing the market share. ( Slightly cut down the prices )
Advertising = In the growth stage, they had increased their advertising budget as in the
initial stages because of attracting the new customers or to retain the existing customers.
Sharmila Tagore, Hema Malini, Zeenat Amaan, J uhi Chawla, Madhuri Dixit, Sridevi
GROWTH STAGE
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Distribution = In this stage, company had expanded their market to the other cities of
INDIA. Their distribution channel was the same as in the initial stages of the product.
Promotion = In the growth stage, the company had also used the different proportioning
strategies to attract the new and the existing customers.
GROWTH STAGE CONTNUED.
Growth Stage of the LUX
Sales
Costs
Profits
Marketing Objectives
Product Strategy
Price Strategy
Rapidly rising sales
Average cost per customer
Rising profits
Maximize market share
Offer product extensions, services
Price to penetrate market
Distribution Strategy Build intensive distribution
Advertising Strategy Build awareness and interest in the mass
market
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They modified the product by adding some changes in the product.
In this stage, few competitors enter into the market like ( CINTHOL, FAIRGLOW,
SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL ).
The company has expanded their market to almost all the cities of INDIA.
MARKETING OBJECTIVES = The marketing objective of Lux is to maximize more profit
while defending the market share. And to expand the market to all the cities of INDIA.
MARKETING STRATEGIES In this stage are based on:
Product = The Lux has made the modification in the product by introducing:
Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, Lux Rose,
Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil and Honey.etc
Price = The Lux products are now available at higher prices in the market, the reason
behind is that the companys marketing objectives is to maximize more profit.
Distribution = Now Lux products are available in almost all the cities of INDIA. Their
distribution channel is same as in the initial stage.
MATURITY STAGE
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Advertising = In this stage Lux advertising has been reduced to some extent because of
the more brand awareness in the minds of customers.
Recently, they have shown Aishwarya Rai , kareena kapoor & Shah Rukh khan .
PROMOTIONAL OFFERS : ----
Like buy 3 get 1 free.
MATURITY STAGE CONTINUED
Maturity Stage of the LUX
Sales
Costs
Profits
Marketing Objectives
Product Strategy
Price Strategy
Peak sales
Low cost per customer
High profits
Maximize profit while defending market
share
Diversify brand and models
Price to match or best competitors
Distribution Strategy Build more intensive distribution
Advertising Strategy Stress brand differences and benefits
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Besides of all campaigns for the sales promotion ofLux .The reasons for its decline are :
1. Currency fluctuations: Unilever products are in over 100 countries worldwide, As aresult, it is exposed to adverse currency fluctuations.
For instance, in 2004, a 5.9% decline in turnover was primarily due to a 4% appreciation in
the average Euro exchange rate.
2. SLOWDOWN: In year 2008 - 09 due to hard economic conditions in INDIA and other
countries the sales were highly affected as the consumer started looking for somealternate products with a cheaper price than Lux.
3. Competition: Lux has been facing competition from HUL itself (Lifebuoy) & from othercompanies like:-
Godrej Consumer Products : GCPL, Indias second largest soap maker with 9.2%market share.
with leading brands such as CINTHOL, FAIRGLOW & NIKHAR.
Fairglow brand, India's first Fairness soap, has created marketing history as one of the
most successful innovations.
DECLINE STAGE
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Wipro : The presence of Wipro in the toilet soap industry can be seen through their brands such
as SANTOOR and CHANDRIKA.
In the southern market of India it is a major market player in toilet soap.
ITC : It entered the segment last year and has made a strong headway in a short time by
growing to 1.75% in just five months. With the brands like: Superia, Fiama Di Wills and
Vivel.
DECLINE STAGE CONTINUED
Decline Stage of the LUX
Sales
Costs
Profits
Marketing obj
Product Strategy
Price Strategy
Declining sales
Low cost per customer
Declining profits
Reduce expenditure and milk the brand
Phase out weak items
Cut price
Distribution StrategyGo selective: phase out unprofitable
outlets
Advertising Strategy Reduce to level needed to retain hard-coreloyal customers
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Film stars promoting the product Lux