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SWOT ANALYSIS OF

LUX
AND

DOVE
• SAJJAD HUSSAIN ( pUrki ) 72
• BBA (3RD)
• SEC: (B)

• DATE: 10/MAY/2010

 MISS.AFSHAN SEHAR
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FEDERAL URDU UNIVERSITY

KARACHI
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SWOT ANALYSIS

WHAT IS SWOT ANALYSIS

The SWOT (strengths, weaknesses, opportunities,

and threats) analysis has been a useful tool for
industry. The process of utilizing the SWOT
approach requires an internal survey of strengths
and weaknesses and an external survey of threats
and opportunities.
SWOT is a simple, easy to understand technique.
It can be used an end in itself. The purpose of this
paper is to demonstrate how SWOT can be used by
administrators to analyze and initiate new
program offerings in vocational education.
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SOWT ANALYSIS OF LUX & DOVE

STRENGHTS

STRENGHTS OF LUX
 Strong Market Research (door to door sampling is done once a year in Urban
and Rural
areas)
 .Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts,
Saffron,
Sandalwood Oil, and Honey to name a few)
 Strong sales and distribution network backed by HLL
 Strong brand image
 Positioning focuses on the attractive beauty segment
 Dynamically continuous innovation of the product and brand rejuvenation –
new variants
Aromatic Glow and Chocolate Seduction and Lux White Spa body wash) and
innovative
Promotions (22 carat gold coin promotion – ‘Chance Hai’)
 Perceived to have high value for money (strong brand promotion but
relatively lower price
Which is a winning combination in the popular segment?)

STRENGHTS OF DOVE
o Unconventional strategy

o Effective advertising, Free publicity

o Continuously evolving the campaign

o Strong emotional touch

o Cross-selling Possibilities

WEAKNESSES

WEAKNESSES OF LUX
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 Lux is mainly positioned as beauty soap targeted towards women,

hence it lacks unisex
appeal
 Usage rate/ wear rate is high and is generally mushy and soggy
 Some variants like the sunscreen, International variant did not do well
in the market
 Certain advertisements like the recent one with Shah Rukh Khan
resulted in controversial interpretations of the message of the
advertisement and lead to some loss of focus
 Stock out problems - replenishment time is high in semi-urban/rural
areas

WEAKNESSES OF DOVE
 Contradictory in nature

 Objectification of women

 Women featured were comparatively slim

 Use of idealized images in other brands under the same flagship

 Contradictory Japanese campaign

OPPORTUNITIES

OPPORTUNITIES OF LUX
 Soap industry growing by 10% in India
 Beauty segment’s Compounded Annual Growth Rate (CAGR) is very
high. An indication of this is that Fair and Lovely’s segment is
increasing at a fast rate - LUX must reinforce its presence in the
beauty segment
 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
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 Liquid body wash is currently in the growth stage – Lux should come
out with more variants in this segment

OPPORTUNITIES OF DOVE
 Target male customers

 Maintain better standards of quality

 Unified advertising throughout the globe

 Continuous innovation

THREATS

THREATS OF LUX
 New entrants/local competitors/MNCs would increase the competition
(Camay, P&G)
 High internal competition – Pears also catering the beauty segment
(also from HLL stable)
 Excessive dependence on beauty segment makes Lux vulnerable to
changing customer tastes
 Technological change makes the existing products obsolete – Lux
should focus on technological innovations like Body Wash

THREATS OF DOVE
 Risk of being a brand for “fat girls”

 Involved marketing risk

 Copy by the competitors

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 Undermining the aspiration of consumers

 Sustainability of campaign in long run