INTRODUCTION

Lux has gone a long way since the past many decades and today is the largest personal
wash brand in India with a value share of 17%, where it was launched in the 1929. The
article mainly tells about how lux has differentiated itself and has been doing so from
the beginning of its launch by evolving itself with the changing needs of the customers.
Lux's history tells that it has always endorsed its products through popular and the
gorgeous film stars which has brought its name as "the beauty soap of film stars". Lux
has beauty offerings in two of the market segment-popular and premium, both of
which has been a hit.

Derived from “luxury”, Lux is known for a luxurious bathing experience.It has come in
the form of various colours, fragrances and flavors, never failing to gather the attention
of the customers and thus impressing and convincing them for the product.

Lux still continues to dazzle and captivate millions even after 75 years with its
surprising strategies to live up to the customer’s expectations.
SWOT

STRENGTHS

• Value share of 17%

• One of the most trusted brands due to its old foundation in the country
• Has been a favourite of generations of users for the experience of sensous,
luxurious bathing
• Offers a range of soaps in different colours and fragrances
• Offerings in popular as well as premium market segment
• Has been an intimate partner of the brightest stars on the silver screen, for
decades, with the top movie stars

WEAKNESSES

• Dependency for endorsement on film stars

• Not in the basic market segment which actually covers majority of the country
• Mainly positioned as beauty soap targeted towards women, lack unisex appeal

OPPORTUNITIES

• Large market share, strong hold over the market

• Liquid body wash is currently in growth stage-Lux should come out with more
variants in this segment
• Last three years has seen Lux continue to grow far ahead of the market. It has
gained close to 4% share in this period

THREATS

•Currency fluctuations
•New Entrants such as Vivel
•Economic Slowdown
•The market has seen stagnant sales over the last four years and the low entry
barriershave led to intense competition between national and local brands
• Competition:
 Godrej Consumer products
 ITC
 Wipro
 Pears, etc.

BCG MATRIX

The soap industry is seen to have a market growth rate of about 10%. This shows that
industry has a high growth rate. HUL is a market leader in the industry and its soap
Lux enjoys a market share of 17 % in India. So according to the concept of BCG
matrix any product which has high market growth and market share is classified as
STARS. The major objective of products coming in Stars is to maintain their high
market share. Since Lux falls into the category of Stars in the BCG MATRIX as the
market share is high and the market growth is also high. Here, the product is well-
established, so its easy to get attention and exploit new opportunities.
Even the growth is exciting which suggests that there are fantastic opportunities, and
lux should work hard to realize them.

Recommendations

Lux has been following a trend of constant product development and improvement
since its inception. This has always proved to be successful for the brand. Therefore a
similar strategy can be followed in the future: Lux can go for a high end Ayurvedic
variant. Lux has been associated with beauty and feminine grace till now. In the
present day consumers are into naturopathy and believe in natural treatments like the
Ayurveda. Keeping with this trend, Lux can foray into Ayurvedic variant.

Today’s children are tomorrow’s customers. Children have a major share in the
decision making process of consumers. Therefore it will be a viable decision to launch
Lux Kids Special soap. By doing this Lux can “catch them young” and get a loyal
customer base from them. This variant can be in vibrant colours as opposed to the soft
colours used currently. The fragrances can also be made more “fun” and vibrant.
Lux has high penetration in the urban and semi urban areas. However, it has only
19.8% penetration in the rural areas. The rural market has great untapped potential,
which HUL has not concentrated on till now. Consumers are becoming more and more
aware and undergoing a surge in disposable income. This huge opportunity can be
explored by Lux. HUL already has a strong distribution channel in almost all regions.
What is needed here is a change in the communication strategy to reach out to the rural
customers. The various channels of communication should be made more appealing to
this rural segment of customers
QUESTIONS

1. Discuss the product differentiation strategy of Lux. Do you concur with the
approach? Give reasons.

Ans1. Lux has always distinguished itself from the rest. Akey factor which has
fuelled its growth is the launch of mini lux, strategically priced at Rs 5 to bring it
within the reach of 300 million consumers. Lux offers a variety of soap choices
with colours, fragrances and flavours as well all of which results in a beautiful skin.
It also launched premium soaps to suit different types of skins. Further, to establish
the presence of nourishing ingredients in the new lux(stronger product
differentiation), a new concept, ‘ingredients you can see in a soap’, was born.

Yes I do concur with the approach as it heightened the sensory experience. It was
altogether a different and a unique idea which would intrigue the consumers and
bring out something new for a change. Also it will create experience in pampering
indulgence and luxury designed to bring out the star in every woman.

2. What factors contributed to the success of the Lux promotional campaign?

Ans2. The most important factor that has led Lux to success is that Lux believes that
beauty is important to woman and that every woman aspires to become beautiful and
thus understands and empathises with this knowledge. Lux believes in the woman
taking pleasure, in herself, for herself, without feeling guilty. Lux recognizes that
wanting to look and beautiful is one of the most fundamental aspirations. Lux knows
better than any other brand the meaning and importance of beauty for women. This
knowledge is skillfully used to strengthen the differentiation for Lux.

The other success factor is the endorsement of the product via leading film stars and
the ample fan followers and believer in them. This has been the communication
strategy of Lux for very long and it has worked ver successfully until now when now
the people are questioning if the film icons actually use the product for which lux has
come up with a different communication strategy and a new theme “lux brings out the
star in you”.
With all these, lux always remember to show and cast the ingredient secret of beauty
that are the natural enhancers of beauty.

3. Why was the communication changed? Give your comments on the new theme.

Ans3. From the beginning Lux, by using a leading film star of the time has fulfilled the
consumers’ aspirations of using beauty via the rationale that ‘if its good enough for a
film star, its good enough for me’. This later moved into a transformational role of
having a bath with Lux, which transforms the user into a fantasy world of icons,
filmstars and fairylands. However, this form of communication was turning irrelevant
as the consumers had begun asking and questioning themselves if the film stars
actually used the brand. In addition to that, several competitive beauty soap brands
were had begun advertising using similar methods of communication.

Therefore, in this context, Lux developed a new communication strategy wherein the
tag line says “bring out the star in you”. Though the film stars still appear in the
advertisement but not as the star but as a simple and a common ordinary woman.

This I think is an effective new theme, as its protagonist is someone to whom the
crowd can relate more to than a film star. The tagline used “brings out the star in you”
is also effective in creating more impact in the crowd.
CONCLUSION

Lux has been in this industry for more than 75 years. It has constantly applied various
strategies to survive and succeed in the industry and it has been successful in doing so.
It has traveled a long way in the country and with its trusted and high reputation it is
bound to be connected to the success with its determination to reach to the customer’s
needs. With the market growth also high, lux has plenty opportunities to grow more in
future.