Product Life Cycle Of Lux
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PRODUCT LIFE CYCLE OF 26/08/09
Presentation by: 3.AVICK BISWAS
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
”
Doing well and doing good.
INTRODUCTION TO PRODUCT LIFE CYCLE •
The course of a products sales and profits over its lifetime is called the product life cycle.
•
PLC shows the stages that products go through from development to withdrawal from the market.
•
Product Life Cycle (PLC): – Each product may have a different life cycle. –
PLC determines revenue earned.
–
Contributes to strategic marketing planning
–
To identify when a product renovating , withdrawal, etc.
needs
support,
redesign,
•
PLC OF LUX SOAP
INTRODUCTION TO LUX:
“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 world’s 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.
•
The Lux MARKETING STRATEGIES in the initial stages :
•
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.
INTRODUCTION STAGE •
continued…
• •
Advertising = In the initial stages, they allocate more advertising budget So that more and 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.
•
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 Introduction Stage of the LUX Sales Costs Profits Marketing Objectives Product Strategy Price Strategy Distribution Strategy Advertising Strategy
Low sales High cost per customer Negative Create product awareness in major cities in India 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.
•
In the growth stage, company had the following MARKETING STRATEGIES :
•
Product = In the growth stage, the company had offered the same product in the market.
•
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
•
GROWTH STAGE CONTNUED…. •
Distribution = In this stage, company had expanded their market to the other cities of INDIA. Their distribution channel was the same as in the initial stages of the product.
•
Promotion = In the growth stage, the company had also used the different proportioning strategies to attract the new and the existing customers.
Growth Stage of the LUX Sales
Rapidly rising sales
Costs
Average cost per customer
Profits
Rising profits
Marketing Objectives Product Strategy Price Strategy
Maximize market share Offer product extensions, services Price to penetrate market
Distribution Strategy
Build intensive distribution
Advertising Strategy
Build awareness and interest in the mass market
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.
•
MARKETING STRATEGIES In this stage are based on:
•
Product = The Lux has made the modification in the product by introducing: Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, Lux Rose, Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil and Honey.etc
•
Price = The Lux products are now available at higher prices in the market, the reason behind is that the company’s marketing objectives is to maximize more profit.
•
Distribution = Now Lux products are available in almost all the cities of INDIA. Their distribution channel is same as in the initial stage.
MATURITY STAGE CONTINUED…
•
Advertising = In this stage Lux advertising has been reduced to some extent because of the more brand awareness in the minds of customers. Recently, they have shown Aishwarya Rai , kareena kapoor & Shah Rukh khan .
• •
PROMOTIONAL OFFERS : Like buy 3 get 1 free.
----
Maturity Stage of the LUX Sales
Peak sales
Costs
Low cost per customer
Profits
High profits
Marketing Objectives Product Strategy Price Strategy
Maximize profit while defending market share
Diversify brand and models Price to match or best competitors
Distribution Strategy
Build more intensive distribution
Advertising Strategy
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, India’s 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
Declining sales
Costs
Low cost per customer
Profits
Declining profits
Marketing obj
Reduce expenditure and milk the brand
Product Strategy
Phase out weak items
Price Strategy
Cut price
Distribution Strategy
Go selective: phase out unprofitable outlets
Advertising Strategy
Reduce to level needed to retain hard-core loyal customers
Film stars promoting the product Lux
Thank
Presentation by: 3.AVICK BISWAS
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
”
Doing well and doing good.
INTRODUCTION TO PRODUCT LIFE CYCLE •
The course of a products sales and profits over its lifetime is called the product life cycle.
•
PLC shows the stages that products go through from development to withdrawal from the market.
•
Product Life Cycle (PLC): – Each product may have a different life cycle. –
PLC determines revenue earned.
–
Contributes to strategic marketing planning
–
To identify when a product renovating , withdrawal, etc.
needs
support,
redesign,
•
PLC OF LUX SOAP
INTRODUCTION TO LUX:
“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 world’s 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.
•
The Lux MARKETING STRATEGIES in the initial stages :
•
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.
INTRODUCTION STAGE •
continued…
• •
Advertising = In the initial stages, they allocate more advertising budget So that more and 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.
•
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 Introduction Stage of the LUX Sales Costs Profits Marketing Objectives Product Strategy Price Strategy Distribution Strategy Advertising Strategy
Low sales High cost per customer Negative Create product awareness in major cities in India 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.
•
In the growth stage, company had the following MARKETING STRATEGIES :
•
Product = In the growth stage, the company had offered the same product in the market.
•
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
•
GROWTH STAGE CONTNUED…. •
Distribution = In this stage, company had expanded their market to the other cities of INDIA. Their distribution channel was the same as in the initial stages of the product.
•
Promotion = In the growth stage, the company had also used the different proportioning strategies to attract the new and the existing customers.
Growth Stage of the LUX Sales
Rapidly rising sales
Costs
Average cost per customer
Profits
Rising profits
Marketing Objectives Product Strategy Price Strategy
Maximize market share Offer product extensions, services Price to penetrate market
Distribution Strategy
Build intensive distribution
Advertising Strategy
Build awareness and interest in the mass market
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.
•
MARKETING STRATEGIES In this stage are based on:
•
Product = The Lux has made the modification in the product by introducing: Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, Lux Rose, Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil and Honey.etc
•
Price = The Lux products are now available at higher prices in the market, the reason behind is that the company’s marketing objectives is to maximize more profit.
•
Distribution = Now Lux products are available in almost all the cities of INDIA. Their distribution channel is same as in the initial stage.
MATURITY STAGE CONTINUED…
•
Advertising = In this stage Lux advertising has been reduced to some extent because of the more brand awareness in the minds of customers. Recently, they have shown Aishwarya Rai , kareena kapoor & Shah Rukh khan .
• •
PROMOTIONAL OFFERS : Like buy 3 get 1 free.
----
Maturity Stage of the LUX Sales
Peak sales
Costs
Low cost per customer
Profits
High profits
Marketing Objectives Product Strategy Price Strategy
Maximize profit while defending market share
Diversify brand and models Price to match or best competitors
Distribution Strategy
Build more intensive distribution
Advertising Strategy
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, India’s 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
Declining sales
Costs
Low cost per customer
Profits
Declining profits
Marketing obj
Reduce expenditure and milk the brand
Product Strategy
Phase out weak items
Price Strategy
Cut price
Distribution Strategy
Go selective: phase out unprofitable outlets
Advertising Strategy
Reduce to level needed to retain hard-core loyal customers
Film stars promoting the product Lux
Thank
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