1. reasons? 2. 3. Discuss the product differentiation strategy of Lux. Do you concur with the approach? Give What factors contributed to the success of the Lux promotional campaign. Why the communication was changed giving your comments to the new theme

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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CASE STUDY:3
Lux - Strong Differentiation
The personal wash market is valued at Rs.45 billion (ORG-MARG). The market has seen stagnant sales over the last four years and the low entry barriers have led to intense competition between national and local brands.
Lux is the largest personal wash brand in the country with a value share of 17%. Consumer's preference has led to Lux becoming one of the most trusted brands in the country. Lux has retained its leadership status by strongly differentiating itself - no soap brand can claim to be more asp rational for the Indian consumer than Lux - the beauty soap of film stars'.
The last three years have seen Lux continue to grow far ahead of the market. It has gained close to 4% share in the period. A key initiative that has fuelled this growth has been the launch of mini Lux - strategically priced at Rs.5 to bring it with in the reach of 300 million rural consumers. The introduction of new perfume and ingredient variants, addressing new benefit segments, has been the other growth driver.
Lux soap was launched in India in 1929. The first bar of Lux was made in India and sold for a sum of two annas in 1934. From the every first advertisement in 1929 featuring Leela Chitins', the gorgeous faces of the silver screen have come out in the open with their beauty secret - LUX. Popularly known as 'the beauty soap of film stars', Lux has been a favorites with generations of users for the experience of sensuous, luxurious bathing. The brand name, Lux, has been taken from the word, 'Luxury'.
Since it launched it India, Lux has offered a range of soap in different colours and fragrances. The benefit offered by all was the same – beautiful skin. Desirable product sensorial (applying to all senses), its world classes fragrances and nourishing ingredients have made a strong product differentiation for Lux, making the Lux bath a pleasurable experience. But Lux being the market leader has With icons of beauty endorsing the brand, the offering made by Lux have always been superior and have always led the market, setting benchmarks for competition. Lux has beauty offering in two of the four market segments – popular and premium, spanning the need of varied consumers. Lux Toilet soap in the popular segment has, in the past four years (since 2001), offered its customers a range of soaps enriched with the goodness of variety of nourishing ingredients - rose extracts, almond oil, milk cream, fruit extracts, and honey, which are known to harbour the secrets of incredibly perfect skin. At the upper end of the market is the premium range which continuous to offer specialized skincare to its customers in the form of international Lux - a range of moisturizing, deep cleansing, and sunscreen soaps. Keeping in tune with the changing times, it has also launched Lux body wash which offers superiors bathing benefits.
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transformational role of having a bath with Lux, which transports the user in to a fantasy world of icons,
film stars and fairylands.
However the communication was slowly seen to be losing relevance, as consumer were beginning to
question if the film stars actually used the brands. In addition to this, several competitive beauty soap brands
had begun advertising using similar methods of communication. In this context, the global brand team for
Lux developed a new communication strategy. The strategy- bring out star in you-for the first time moved
the brand away from the long running film star route. The film star still features in the new communication
but not as her gorgeous self but rather as an alter ego or projection of the protagonist, for a few seconds of
the entire ad.
Thus for the first time the film star was used as a communication device and not as the main feature of
the ad. The new ad theme - bring out the star in you - puts the customers at the heart of the brand's
promise.
Lux beauty is glamorous, sophisticated and luxurious. Lux believes in a women taking pleasure in her
self, with out feeling guilty. Lux recognizes that wanting to look and feel beautiful is one of the most
fundamental aspirations. Lux knows better than any other brand the meaning and importance of beauty of
women. This knowledge is used skillfully to strengthen the differentiation for Lux.
Lux continuous to dazzle and captivate millions even after 75 years. New fragrances like chocolate'
and new gimmicks like the superstar Shah Rukh Khan in a bathtub, surrounded by five Bollywood stars
we can expect, many more surprises. After all, Lux is here to stay, forever.
Questions:
1.
reasons?
2.
3.
Discuss the product differentiation strategy of Lux. Do you concur with the approach? Give
What factors contributed to the success of the Lux promotional campaign.
Why the communication was changed giving your comments to the new theme
Transcribed Image Text:transformational role of having a bath with Lux, which transports the user in to a fantasy world of icons, film stars and fairylands. However the communication was slowly seen to be losing relevance, as consumer were beginning to question if the film stars actually used the brands. In addition to this, several competitive beauty soap brands had begun advertising using similar methods of communication. In this context, the global brand team for Lux developed a new communication strategy. The strategy- bring out star in you-for the first time moved the brand away from the long running film star route. The film star still features in the new communication but not as her gorgeous self but rather as an alter ego or projection of the protagonist, for a few seconds of the entire ad. Thus for the first time the film star was used as a communication device and not as the main feature of the ad. The new ad theme - bring out the star in you - puts the customers at the heart of the brand's promise. Lux beauty is glamorous, sophisticated and luxurious. Lux believes in a women taking pleasure in her self, with out feeling guilty. Lux recognizes that wanting to look and feel beautiful is one of the most fundamental aspirations. Lux knows better than any other brand the meaning and importance of beauty of women. This knowledge is used skillfully to strengthen the differentiation for Lux. Lux continuous to dazzle and captivate millions even after 75 years. New fragrances like chocolate' and new gimmicks like the superstar Shah Rukh Khan in a bathtub, surrounded by five Bollywood stars we can expect, many more surprises. After all, Lux is here to stay, forever. Questions: 1. reasons? 2. 3. Discuss the product differentiation strategy of Lux. Do you concur with the approach? Give What factors contributed to the success of the Lux promotional campaign. Why the communication was changed giving your comments to the new theme
In April 2003, Lux relaunched its lower- tier range to offer even better product quality in comparison
with other soaps in the competitive set. It is now superbly poised to deliver the brand promise of beauty care
and bathing pleasure.
To establish the presence of nourishing ingredients in the new Lux (stronger product differentiation), a
unique concept, ingredients you can see in a soap, was born. A novel metallic substrate packing beautifully
showcased the ingredients, and its globally accepted ingredients-linked perfumes heightened the sensory
experience. Each of the soaps in the ranged has milk cream, with the active ingredients of rose extracts,
sandal, saffron, almond oil and fruit extracts. The create an experience in pampering indulgence and luxury
designed to bring out the star in every women.
Lux campaigns have wooed millions of people over the decades. Popularly known as the beauty soap
of film stars, Lux has been a intimate partner of the brightest stars on the silver screen. For decades. An ode
to their beauty, an announcement of their stardom, advertising campaigns on Lux have feature film stars
across the nation, promising their beauty and complexion to ordinary women, with top movie stars - from
Madhubala to Madhuri, from Babita to Karishma and Kareena, inter spaced with leading film stars, Hema
Malini, Juhi Chawla and sreedevi-having endorsed the goodness of Lux over generations, it was the natural
that the brand has built equity has the best beauty soap in India. In the global market, some of the inter
national film stars who endorsed Lux include Elizabeth Taylor, Sophia Loren, Penelope Cruz, Catherine
Zeta Jones, Racquel Welch and Charlize Theron.
From the beginning, Lux, by using a leading film star of the time, has fulfilled the consumer's
aspirations of using beauty via the rationable. If it's good enough for me'. The later moved into a
Transcribed Image Text:In April 2003, Lux relaunched its lower- tier range to offer even better product quality in comparison with other soaps in the competitive set. It is now superbly poised to deliver the brand promise of beauty care and bathing pleasure. To establish the presence of nourishing ingredients in the new Lux (stronger product differentiation), a unique concept, ingredients you can see in a soap, was born. A novel metallic substrate packing beautifully showcased the ingredients, and its globally accepted ingredients-linked perfumes heightened the sensory experience. Each of the soaps in the ranged has milk cream, with the active ingredients of rose extracts, sandal, saffron, almond oil and fruit extracts. The create an experience in pampering indulgence and luxury designed to bring out the star in every women. Lux campaigns have wooed millions of people over the decades. Popularly known as the beauty soap of film stars, Lux has been a intimate partner of the brightest stars on the silver screen. For decades. An ode to their beauty, an announcement of their stardom, advertising campaigns on Lux have feature film stars across the nation, promising their beauty and complexion to ordinary women, with top movie stars - from Madhubala to Madhuri, from Babita to Karishma and Kareena, inter spaced with leading film stars, Hema Malini, Juhi Chawla and sreedevi-having endorsed the goodness of Lux over generations, it was the natural that the brand has built equity has the best beauty soap in India. In the global market, some of the inter national film stars who endorsed Lux include Elizabeth Taylor, Sophia Loren, Penelope Cruz, Catherine Zeta Jones, Racquel Welch and Charlize Theron. From the beginning, Lux, by using a leading film star of the time, has fulfilled the consumer's aspirations of using beauty via the rationable. If it's good enough for me'. The later moved into a
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