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Letter Transmittal
ABDULLAH AL FARUQLecturer
School of Business Administration
American International University-Bangladesh
Banani, Dhaka.
April15th,2008.
Dear Sir,
Please accept the term paper about the Unilevers beauty soap LUX.
This report has completed about to understand the practical marketing
strategies and different terms of marketing of Unilever, Bangladesh. Major of
the information was conducted from SCM department and also internet
surfing. In our term paper, we conveyed which market they belong, how they are
building customer value, satisfaction and loyalty, brand positioning, PLC stage, how
they are dealing with competition. At the same time we wanted to show you,
how they manage and maintain their marketing plans.
I would like to thank Mr. MD.Borhan Uddin Bhuiyan, who is working as a
promotional buyer for providing us important information about this term
paper.
Sincerely,AAAAAAA
BBBBBBBBBB
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Executive Summary
Unilever is a multinational consumer product manufacturing giant operating in over
hundred countries all around the world. It operates under the famous brand names likeWheel, LUX, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Lipton, Lipton
Taaza, Pepsodent, All Clear, Vim, Surf Excel, and Rexona. Unilever Bangladesh is
the Bangladesh chapter of Unilever, where the company holds 60.75% share whereas
the Government of Peoples Republic of Bangladesh holds 39.25% share.
Unilever Bangladesh is a leader in the toilet soap industry of Bangladesh. It operates
with health care and beauty soap in this industry. Its beauty soap is the world wide
famous brand, LUX.
Unilever segments LUX.s market according to geographical location. It further
differentiates these segments into Psychographic Segmentation which takes into
account education and profession which ultimately measures the financial ability of
consumers. The cluster is divided into five parts starting from urban riches and ends
with rural group. Unilever targets the urban and sub urban upper middle class and
middle class segment of the population.
LUX is all about the feeling of LUXury and glamour. They are creating customer
valu by providing good quality product and its unique characteristics has an
impact on the buying behavior. In Bangladesh, LUX has been successfully seeking
out new glamour icons for the Bangladeshi cultural arena. In 2006, the nationwide
contest of a dream come true for Bangladeshi girls was taken to an entirely
different level. Unilever believes, Do not just make sales create customers, who
will not only be a customer but also a satisfied customer thats why they are trying
there best to keep their customer satisfied.
After many fluctuating demand of LUX now it is in maturity stage which is the
best time for a particular product. LUX has effectively managed its PLC through
careful brand building and changing the product in line with the changing
consumer. They successfully use film stars and have been consistent in terms of
communication and positioning. The brand is also the classic example of
successful celebrity endorsement.
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In the battle field of modern business LUX is competing with their competitors by
developing their product and proved the product as the most versatile product in
the market.
ACKNOWLEDGEMENTAt the very outset, we would like to take this opportunity to express our
gratitude to our course instructor, Mr. ABDULLAH AL FARUQ for his
continuous inspiration, supervision and patience. Without his guidance and
support it would not have been possible to come this far. We also like to thank
Mr. MD.Borhan Uddin Bhuiyan for his help and information. Because
without his cooperation, our report will not be successful as it is now.
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Introduction:
One of the worlds largest and leading multinational company Unilever opened
their first factory in the year of 1872. Operating in Bangladesh for over the last
four decades the company is trying to remove the daily tiring and boring routine of
life by bringing world class high quality products at the door step of their
customers. The usage of Unilever products by over 90% people in Bangladesh
stands a evidence to their successful operation.
Unilever Bangladesh is a leading consumer goods producing company operating in
the home, personal care and foods industry. Their array of products show that they
produce household care, fabric cleaning, skin cleansing, skin care, oral care, hair
care, personal grooming and tea based beverage products under worldwide famous
brand named Wheel, LUX, Lifebuo y, Fair & Lovely, Pond's, Close Up, Sunsilk,
Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel, Rexona etc.
The companys constitution shows that Unilever holds 60.75% share while the
Government of Peoples Republic of Bangladesh holds 39.25% share of Unilever
Bangladesh.
Unilever has two manufacturing units that produces soap and personal care
products located in Kalurghat Heavy I/A, Chittagong. Moreover it has a tea
processing plant in Chittagong and three manufacturing units in Dhaka owned bythird parties. With their overall operation in Bangladesh, Unilever employs around
10,000 people of which 99.5% are locals.
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The organizational structure of Unilever Bangladesh is as following.
Data presented in the figure has been taken from the web site of Unilever
Bangladesh.
Over the years Unilever has been highly successful in skin cleansing products that
is soap. They divide their produced soaps in two categories like i) health care and
ii) beauty soap. The healthcare soap has been branded with the name Lifebuoy and
the beauty soap with LUX.
Customer Manager
Brand Director(Personal Care)
Brand Director(Health Care)
Brand Manager Brand Manager
Front line Manager Front line Manager
Chairman / Chief
Executive Officer
Development Director Finance Director HR Director
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Category of Product:
LUX falls under the category of toiletries product as a beauty soap.
Market Segmentation:
Market segmentation is the process through which a company differentiates its
market according to wants, locations, buying attitudes and buying practices of
consumers. The company claims that LUX is the highest selling beauty soap in
Bangladesh. Moreover a survey carried out by group our members in different
locations of Dhaka city; both posh and poor areas expose the same result. Though
LUX is the highest selling beauty soap in Bangladesh but it does not go for
traditional mass marketing. Moreover as a beauty soap LUX does not even
segment its market according to gender or age group. They segment their marketaccording to geographical area i.e. urban, sub urban and rural area consumers.
They further differentiate these segments according to Psychographic
Segmentation. The Psychographic Segmentation divides the population in five
segments; urban rich, urban and sub urban upper middle class and middle class
people or family. Urban rich categorizes the highly educated and top class service
holders whereas incase of Rural class category the opposite is true. A market
segmentation pyramid according to geographical area used by Unilever
Bangladesh is shown below:-
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Building customers value, satisfaction and loyalty
LUX is all about the feeling of LUXury and glamour. In Bangladesh, the "Think
Stars" activation has brought dream stars to the very houses of consumers. LUX is
trying to reinvent its brand from the commodity mound. They have chosen a
completely new approach to combat the limitations of growth in this hugely-
competitive market. But it has achieved a buzz creating and an increased
awareness among the customers. Whether it will be successful or not is open to
speculation as people hate it or like it but there are a few who will be indifferent to
it, thus this statement has been successful in cutting across the confusion of
advertisement to achieve customer attention.
For any product, the brand associated has a huge impact on the customers in terms
of decision making. Brand is an intangible thing and it has some unique
characteristics. Its unique characteristics has an impact on the buying behavior of
the consumers as well as its product related attributes. For example, LUX as a
brand symbolizes beauty. The successful brands are those that capture a unique
position which cannot be easily imitated by others. The brand is consequently the
combined of the collective impression it makes in the minds of its target customer.
It may be perceived differently by different people.
Over the years, LUX has been a trusted household brand that has inspired images
of beauty, with confidence. It is the beauty soap of women from various branchas
of achievement dancers, singers, models all famous in their own field, all
representing pinnacles of achievement all stars.
LUX -a brand indistinguishable to beauty in the Bangladeshi market as well as
international market. This concept of beauty was further reinforced by itsadvertising strategy of using top film stars. In Bangladesh, LUX has been
successfully seeking out new glamour icons for the Bangladeshi cultural arena. In
2006, the nationwide contest of a dream come true for Bangladeshi girls was
taken to an entirely different level. The focus this year was on acting and the big
difference was that the winner of LCSS 2006 would get the lead role in a
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cinematic version of Humayun Ahmeds acclaimed novel Daruchini Dip. LUX
provides a range of products in different categories. For that reason the entire
target market will get a lot of variety.
Unilevers mission is to add strength to life. Their profound extractions in markets
around the world give them a strong relationship with their consumers. LUXs
advertisement has been already been successful in achieving increased awareness
among the customers. Unilever believes, Do not just make sales create
customers, who will not only be a customer but also a satisfied customer. They
also believe that, the immediate profit they make from the first sale, satisfied
customers will help them to build their business in 2 additional important ways:
1. They become a reservoir of repeat buyers. For some businesses that means
repeat buyers for more of the same product or service. For every business, it
means buyers for additional products and services.
2. They automatically refer more business to you from their friends and business
contacts. This is highly profitable business for you because it does not cost you
any time or money to get it.
However, Unilever always try to give customers more than they expect. To
compete effectively in the global market place today, a company has to be more
customer-oriented rather than the product-oriented philosophy that used to exist.
Customers today are more sophisticated and value-maximizes. They form an
expectation of value and act on it. Today, buyers buy products from the firm that
they perceive to offer the highest customer-delivered value. Losing customers can
drastically affect the company's profits. It is therefore important for companies to
have an extensive corporate policy towards the retention of customers. It is
sometimes said in marketing literatures that, the cost of attracting a new customer
is estimated to be five times the cost of keeping a current customer pleased. To
keep customers happy however, marketers can add financial or social benefits to
products, or create structural ties between the company and its customers. Total
quality is one of the key to value creation and customer satisfaction.
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successful celebrity endorsement. The first celebrity to endorse the brand was
Leela Chitnis . From Leela to Aishwarya , From Madhuri to Madhubala, LUX has
been endorsed by more than 50 film stars in India. Since the 1930s, over 400 of
the worlds most stunning and sensuous women have
been proudly associated with LUX
advertisements. Marilyn Monroe,
Brigitte Bardot, Demi Moore and,
more recently, Catherine Zeta-Jones,
have all been part of the LUX glamour
story But in all these communications,
the celebrity never shadowed the brand.
LUX was always changing with the times. Whether it be in terms of the product
or in terms of promotions, the brand kept the consumers excited. LUX has two
basic extensions in terms of segments. LUX beauty soap and International
LUX.LUX was initially a premium brand. LUX was being projected as an
inspirational brand and the endorsements by stars further reinforced the
positioning. The increasing competition in the soap category forced LUX to
rethink on its targeting strategy. The brand had a choice either to compromise on
market share and uphold the premium positioning or to retain the market share anddilute the positioning. LUX wanted to ensure that the brand be positioned as
premium but also did not wanted to compromise on the share. Thus born
International LUX which is the premium variant and the affordable segment was
catered by LUX beauty soap.LUX beauty soap is available in four variants: Exotic
Flower Petals, Fruit Extracts, Almond and Sandal. LUX has a common ingredient
of Milk cream in all the variants.
In 2005 LUX celebrated its 75th anniversary sparking of a controversy. Deviating
its tradition of roping in Bollywood Divas, this time none other than Shah RukhKhan endorsed LUX. The ads created instant controversy with marketers
discussing whether the brand has suddenly become MALE. Paul Newman also has
endorsed LUX soap which shows that LUX makes such stunts to excite the
market. Whatever be the controversy, the brand again succeeded in creating
excitement in the market. Some argue that HLL was testing a new positioning to
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appeal to male users while others say that it was a one time endorsement to break
the clutter. For marking the 75th year LUX came out with a celebration range
endorsed by Kareena Kapoor . The Celebration range too created news because of
its variant: Chocolate Seduction. Over these years, the positioning of LUX also
evolved. Earlier the brand used the positioning Beauty soap of Film stars. But as
the customer evolved, the positioning lost its charm because customers began to
doubt whether the
film stars actually used this brand. Taking a cue
from the customers, LUX changed the positioning
appealing to the need for becoming a star. The new
positioning is communicated with the tagline
" Bring out the star in you". Although worldwide the
brand is being endorsed by film stars, the actual
package usually contains picture of international models and not film stars. While
LUX beauty soap is sticking to the age old positioning, LUX international has
moved from being a soap brand to a skin care brand. LUX International has the
tagline " Not Just Soap, Its Skin Care". Under the LUX umbrella brand a variety of
personal wash products like body shampoo,hair shampoo etc are introduced. The
brand will experiment and explore more in the days to come.
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Unilever and its compotators:-
Unilever is a company who bringing world class consumer products to millions
of people in this country. Unilever's mission is to add vitality to life. Unilever
Bangladesh is synonymous with vibrant development, progress and
innovation.Over the the last four decades, Unilever Bangladesh has been
constantly bringing new and world-class products for the Bangladeshi people.
Unilever Bangladesh has many brands, among of them LUX is one. Everything
from look and feel to fragrances of LUX is a delight to the female senses. Over
the years, LUX has covered various aspects of beauty and stardom. But now
LUX feels that women have forgotten that beauty should be fun. And looking
great is an integral part of being a woman.
Key facts
First mass marketed toilet soap launched in 1924
Sold in over 100 countries
Market leader in various countries including Arabia, Brazil, India
LUX is marketed by different size for higher level to lower level.Based on
the people skin LUX has different types beauty soap with different flavour.
LUX Energising Honey incorporates the beauty secrets of Fruit Extracts,
rich Milk Cream and Honey, for a fresh renewed feeling.
LUX Nature Pure has nourishing coconut oil and cucumber soap bits. Its
creamy lather gently purifies the skin, leaving it clear and fragrant.
LUX Golden Glow comes with the magical touch of lustrous Honey and
precious Sandalwood Oil.
LUX Orchid Touch comes with the delicate
touch of rare orchids and precious Jojoba Oil,
for a softer skin.
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LUX Golden Glow
LUX Almond Delight come with the deep
Moisturization of exotic Peach, Cream and
Precious Almond Oil.
LUX Aqua Sparkle brings out your natural liveliness. Invigorating
riverbed minerals and spring water provides your skin with essential
moisture, leaving it hydrated and looking bright.
LUX always used super stars as their brand ambassador. LUX also arrange
talent hunt competition for young generation.
LUX Channel I Superstar
LUX, with its history of creating stars for the
Bangladeshi glamour world has taken its initiative
to a new high. LUX Aqua Sparkle
LUX thinks that they will bring star status to a consumer doorsteps. LUX, with
its abundance of exotic beautyfying ingredients has lead to beautiful skin -
therby making women who use it more gorgeous naturally! in recent times, LUXhas embraced beauty and feminity of the 21st century women. It aims to be the
paradigm of the new feminity. That' s why LUX celebrates the pleasure of being a
woman today by encouraging women to feel and look beautiful, be
individualistic about their self-expression and indulge in the rituals of
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beautification in an unapologetically feminine way. LUX beautifies in a playful
way, letting women express their feminine spirit without constrains
LUX always thinks about consumer acceptance of the product. LUX try to fulfill
the consumer demand about the product.
LUX already established a brand image of its own product.They always use
superstars as their brand ambassador. LUX is marketed with three different sizes;
small, medium and big. They always try to fulfill the consumer demand thats
why they marketed different flavour beauty soap under in LUX. Their target
market is not a group of people. All female is their target market. LUX believe
that every woman wants to feel like a fortune. On this note, LUX is celebrating
the feminity and playfulness to remind women to enjoy absolutely everything
about becoming and being beautiful. In this way LUX fulfill the consumer
demand and compet their competator
Recommendation based on the analysis of marketing management
theory application by the product brand marketer on
Lux is all about feelings and glummer, not only in Bangladesh but also in other
countries. So we can say the have successfully implement all the marketing strategies
in a proper way. Getting the loyal customers is not an easy task; everyone must utilize
their full resources to beat the competition.
The marketing theory of giving customer value is given below:
Total customer value
Product value
Services value
Personal value
Image value
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Product value
New products fail at a notoriously high rate. Numerous studies have identified the
primary cause of such failures as a misunderstanding of the market: companies
introduce products that are perceived by customers as offering inferior value relative
to products already on the market. The tools of customer value management help
management teams overcome the problem. These tools can use information generated
by conjoint and other market research techniques to help provide a complete
simulation of how customers will perceive the product.
There is no question about lux to its product value; not only in our country but also
the other countries as well lux is creating the highest demand. Over the years, Lux has
been a trusted household brand that has inspired images of beauty, with confidence. It
is the beauty soap of women from various spheres of achievement dancers, singers,
models all famous in their own field, all representing pinnacles of achievement all
stars. It shows how reliable this product is. It makes reliable by its performance. It
claim no single complain about its product quality.
Services value
The service quality of lux is magnificent. Luxs advertisement has been already
successful in increasing awareness among the people. The Lux has a brand image thatthe customers cannot ignore it. Their main goal is not only increasing the revenue, but
also they always tries to involve themselves in making the society aware by providing
beauty tips.
Personal value
At present customers are more knowledgeable. Now they like to get more within a
product.
Lux follows always a golden rule, Always give customers more than they expect.To compete effectively in the global market place today, a company has to be more
customer-oriented rather than the product-oriented philosophy that used in the entire
marketplace.
Customers are more sophisticated and seeking for maximize the values today. They
form an expectation of value and act on it. Thats why we are getting much more
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varieties in a single brand. As we can say that, lux segments their market to keep on
head about customer personal value.
Image value
There is nothing to say about lux for its image value. They have already made a brand
image that people are fully satisfied only after hearing the name of soap that is Lux.
Not only in rural area but also in urban area people are fully aware their service
quality. For any product, the brand associated has a huge impact on the customers in
terms of decision making and recall factor. Brand is an intangible thing; it has a
personality of its own which is projected to the customers. Its personality is a follow-
up over the behavior of the consumers as well as its product related attributes. For
example Lux as a brand symbolizes beauty. In one line - brand is a consideration. A
thought is the perception which the customer has in her mind regarding the brand. The
successful brands are those that capture a unique position which cannot be easily
imitated by others. The brand is consequently the combined of the collective
impression it makes in the minds of its target spectators. It may be perceived
differently by different people.
Challenges for the Lux:The market study shows some barriers for Lux during the time of meeting the
customer expectation. Here is a list given below.
More accurately meet customer requirements through better forecasting
Establish centrally led organizational structure within value chain management
operations
Implement integrated and coordinated planning system
Strategies against these barriers:Here is list of their strategies that they usually follows.
Work with the leading provider of supply chain management solutions
Replace fragmented systems with an integrated supply chain management
solution
Result:
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Referance:-
01.MD.Borhan Uddin Bhuiyan, Promotional buyer.
02.www.unilever.org
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