Product Life Cycle of Lux
Product Life Cycle of Lux
Product Life Cycle of Lux
26/08/09
MARKETING MANAGEMENT
To make cleanliness commonplace, to lessen work for women, to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products.
William Hesketh Lever
GLAMOUR FACTOR
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
INTRODUCTION STAGE
Lux launched the worlds first mass-market beauty soap in the US in 1924 & had been
launched 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 the customers towards the product.
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.
Advertising = In the initial stages, they allocate more advertising budget So that more and continued 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.
INTRODUCTION STAGE
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
Costs
Profits Marketing Objectives Product Strategy Price Strategy Distribution Strategy Advertising Strategy
Offer a basic product Use cost-plus Build selective distribution Build product awareness among early adopters and dealers.
GROWTH STAGE
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.
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, Juhi Chawla, Madhuri Dixit, Sridevi
MATURITY STAGE
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.
Maturity Stage of the LUX Peak sales Low cost per customer High profits
Maximize profit while defending market share
Sales Costs Profits Marketing Objectives Product Strategy Price Strategy Distribution Strategy Advertising Strategy
Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits
DECLINE STAGE
Besides of all campaigns for the sales promotion of Lux .The reasons for its decline are : 1. Currency fluctuations: Unilever products are in over 100 countries worldwide, As a result, 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 some alternate products with a cheaper price than Lux. 3. Competition: Lux has been facing competition from HUL itself (Lifebuoy) & from other companies 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
CONTINUED
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 of the LUX
Sales Costs Profits Marketing obj Product Strategy Price Strategy Distribution Strategy Advertising Strategy Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price
Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers
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