Brand Audit of Lux

-Palak Mehta-Harshit Shah-Shailendra Khirya

Brand Audit- LUX

History of Lux

Founded by lever Brothers in 1899The name changed from “Sunlight Flakes” to

“Lux” in 1900, Lux toilet soap was launched in the United States

in 1925 and in the United Kingdom in 1928Launched in India in 1929Since the 1930s, more than 400 of the world’s

most famous female celebrities have been associated with Lux.

Early beginningsBuilding beauty soap credentials1928 – 1940: 9 out of 10 stars40s & 50s: Romancing the consume60s: Romancing the brand70s: Dimensionalizing beauty80s: Owning the category spac90s – Early 2000s: Advanced skin benefits2000s: Beyond movie starsStatus: Enjoys more than 17% market

share in the premium soaps market valued at Rs6,000 crore

Target customerMiddle class and upper middle class women

aged 16 to 25 yearsIn 2001 introduced mini lux to capture rural

marketIn 2005 targeted men with shahrukh khan

endorsing Lux soaps

Brand PortfolioLux shampoo & conditionerLux liquid soapLux hairsprayLux shampooLux Shower jel Lux hand washLux Bathing soap

Product VariantsThe bath soap range comprises of 7 variants:Caress Me – with drops of moisturiserKiss Me – with strawberries & creamTouch Me – with peach & creamTaste Me – with macadamia nut & creamWake Me Up – with mineral salts and

seaweed extractsShake Me Up – with mint and cucumberYoung & Radiant – with aromatic oilsVariants: (Sizes - 100 & 200g) 

6 brand elements Memorability MeaningfulnessLikabilityTransferabilityAdaptabilityProtectability

Competitor & podGodrej(9.2%)-Cinthol, Fair glow & NikharNirma soaps(6.74%)Wipro-Santoor & ChandrikaItc(1.75%)-Superia,Fiama di wills, vivelInternally-Lifebouy & Dove

Customer knowledge structure:

 3rd most trusted brand

Constantly promoting itself as beauty soap

Logo, ads and celebrity endorsement

Sources of Brand equity

Company reputeUnique featuresPackagingGreat awareness and familiarityLatest advertisementsPOP’s and POD’sPromotions & Celebrity endorsement

CBBE Pyramid

Salience It satisfy all the needs and wants of female

Imagery:Brand personality of LUX is very attractiveCustomer experience is good with LUXCustomer loves that people really who use

LUXRetail store are the best places to buy LUX

Performance:It smoothen our skinIt fairs face completion

Feelings:Customer feels confident while using LUXThey feel warmth feelingsThey feel freshnessThey feel they are more beautiful

Judgment:Quality is goodPackaging is attractiveFeatures are outstanding

Resonance:Customer feels proud by using LUXThey feel it is special for usThey really love and want LUXThey purchase the brand whenever they

go to storeThey really like to use LUX

SWOT analysis of LUX Strengths: Many variants Strong sales and distribution network Strong brand image Strong supply chain Loyal customers. Positioning focuses on the attractive beauty

segment. Perceived to have high value for money. Dynamically continuous innovation of the product,

new variants and innovative promotions Though it is in popular segment, it is having mass

appeal/market presence across all segments. Unique advantage of having access to resources

and assets of HLL

Weakness

• 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.

• Stock out problems exists in some 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.

• Has to face internal competition.

Opportunity• Soap industry growing by 10 % in India• More promotions like price-offs and samples• Retentive strategy required as the soap segment is in

the mature stage of its product life cycle• Line extension – probably with more variants catering

to the beauty segment like natural, herbal soap etc• Liquid body wash is currently in the growth stage – Lux

should come out with more variants in this segment• It has a large market share and hence has a strong

hold over the market.• Market share of more than 17% in India, worth Rs.

6000crores.

Threats• New entrants/local competitors.

• High internal competition

• High inflation rate.

• Excessive dependence on beauty segment makes Lux vulnerable to changing customer tastes.

• Change in manufacturing technology.

• Increasing interest rates and raw materials.

The 4 p• Product Line– Shampoos– Body washes– Soaps

• Lux Toilet Soap in the popular segment : with the goodness of a variety of nourishing ingredients – rose extracts, almond oil, milk cream, fruit extracts etc

• At the upper end of the market is the premium range which continues to offer specialized skincare : moisturizing, deep cleansing and sunscreen soaps.

Promotion

• USP or the common thread through all the advertisements is the Presence of Movie Stars through the ages.

• The product has been positioned on the basis of REFERANCE GROUP by using a celebrity popular at that point in time.

• Some amount of attribute positioning by mentioning the various ingredients has also been

Price• Price" is pretty self-explanatory but it‘s very

important to success. • It gives value for money to his consumers. It is known

for its competitive pricing. • It has the advantage of quoting a reasonable price

due to its economy of scale, superior technology and optimum utilization of inventory.

• The LUX Beauty Bars are priced as follows:

100gms: Rs. 13150gms: Rs. 19

 • Lux has also introduced the “Mini Lux” that has

helped in better penetration of the rural market. Priced at

• 45g: Rs. 5

Place

• Cutting-edge distribution network

–HLL’s distribution network is recognized as one of its key strengths

– It has 2000+ suppliers and associates, 45 C&F.A.s, 7,000 stockiest and direct coverage in over 1 million retail outlets across India.

–HLL boasts of placing a product across the country in less than 72 hrs.