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Market Analysis of Lux

Essay by   •  September 8, 2011  •  Case Study  •  526 Words (3 Pages)  •  1,913 Views

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Lux International, a premium variant of the toilet soap, launched in 1989, is differentiated on the basis of its ingredients, the popular version, Lux Beauty Bar was always projected as a "pure and mild" solution to soft and smooth skin.

Packaging

A novel metallic substrate packaging beautifully showcases the ingredients, in case of the soaps. A female model is shown on the pack. The colors are different for different variants such as saffron for the saffron variant, pink for the rose extracts etc.The Bars come in package sizes of 100g, 120g, 150 g

The Lux Body Wash comes in an exquisitely designed bottle with the trade character prominently displayed. Lux has launched a 45g variant called Mini Lux priced at Rs. 5

Developing New Variants

The new Lux Beauty Bar is significantly better on all aspects including aesthetics, sensorials, skin care, value for money, perfume and ingredients.

The company claims that a new initiative behind Lux beauty bar was always in the offing, market conditions notwithstanding. HUL's structured innovation programme was the driving force. This programme, which charts the route for every HUL brand's progress, works eight to 12 quarters ahead of the company's brands.

For instance, at the time when Lux International with a superior moisturizer was launched in 1999, the company claims to have been working simultaneously on Lux Sunscreen which was launched in 2000.

Lux is always a step ahead of trends rather than following the trend. It would rather orient and direct the change rather than follow it. This flag-bearing programme according to the company, helped in timing the relaunch.

Also by using brand-oriented research, the company identified two sets of consumers. One was the loyal base of existing Lux Beauty Bar consumers. The other was the target segment which would be the source of growth for Lux.

This segment comprised of those customers who were buying soaps in the sub-popular segment, but could shift upwards if a better product was offered in the popular segment. A company executive says, "The entire relaunch exercise was aimed at delivering a superior mix, which would tap into this source of growth."

The consumer needs and triggers which were identified included: fragrance, quality of lather, long-lasting, value for money product, familiarity and belief were factors that translated into a sense of reliability and quality. This helped in the delivery of the new product.

Several options were considered for the Lux relaunch. These included mood-enhancing perfume positioning. Skin-care based ingredients like glycerin, sandal and saffron were considered.

The company says that after scanning

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