Marketing Strategy of Lux analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Lux marketing mix, help the brand succeed in the market. Let us start the Lux Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Lux marketing strategy can be explained as follows:
Lux is one of the leading global personal care and skincare brand. Going by the tagline of Lux, it is promoted as a brand which provides products that bring out the best of beauty in people. As the name signifies, Lux is considered to be an aspiring brand for the middle-class segment. Though the major focus of Lux is on beauty soaps, it also deals with shower gels, hair conditioners and other bathing products. Lux comes in various SKUs of size 40 gm, 90gm and 120gm with the options of various colours and fragrances and has over 20 variants.
Lux appeals to the younger set of people and primarily dominant in the semi urban areas. Lux faces competition from various brands like Dove, Santoor, Vivel etc in the beauty segment and other brands like Lifebuoy, Medimix in other segments. This gives an insight in the product portfolio in the marketing mix of Lux.
Image: company website
Lux Price/Pricing Strategy:
Below is the pricing strategy in Lux marketing strategy:
Lux is a product which speaks to the middle class and target a large volume of customers. Lux is highly economical and is positioned as an affordable Luxury soap for all.
The price of the soap ranges from Rs 5 to Rs 40 for different SKUs. Lux focuses on being a cost leader and has adopted a competitive pricing mechanism in its marketing mix so as to compete with other players and survive in the market. This is further achieved by being a mass producer which has resulted in achieving economies of scale. The first mover advantage that Lux had has resulted in it being a market leader in 5 countries. Thus the pricing strategy of Lux soaps and gels has enabled the brand to retain its position as a market leader. The new products or variants also launched by Lux are priced keeping in mind the consumer's purchasing power and hence the brand always ensures its products are affordable.
Following is the distribution strategy in the Lux marketing mix:
Lux has a strong distribution network with over 1.3 million outlets just in India. Lux follows the traditional mechanism of distribution channel with distributor who provides to the wholesaler who in turn supplies to the retailer. The retailer then provides the product to customer. However, the distribution process is handled by third party which works in tandem with Unilever. These suppliers provide Lux products to retailers all over the country. There are around 71 manufacturing plants present all over the world and the products are available in around 100 countries. Lux products are ubiquitous and occupy large shelf space. Lux are available everywhere: be it at the large retail stores or the small kirana stores. With the increasing penetration of ecommerce, Lux products are widely available online.
The extensive distribution network ensures that the reach of Lux products is as wide as possible.
Lux Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lux marketing strategy is as follows:
Lux uses 360 degree marketing communication through TVCs, print media, online ads etc as a part of its complete marketing mix strategy. Lux has always positioned itself as a soap which gives a good fragrance and leaves one with a beautiful feeling. Lux is involved in huge marketing be it through televisions, radio or print media. One unique way of promotion was through cartoon ads and online games. Lux has used celebrities like Aishwarya Rai, Kareena Kapoor, Shahrukh Khan, Audrey Hepburn for promotion and has positioned itself as a soap made and used by celebrities. It has had numerous promotional offers which included meeting celebrities, offering gold coins. Lux has also been involved in sponsoring various television shows like Dance India Dance etc. Lux brand keeps on coming up with new innovative marketing campaigns to keep the audiences and consumers engaged. The brand is so big and well established, the Lux brand focuses more on restating the brand value proposition of being a popular beauty soap. All in all, one of the biggest strengths of Lux is the marketing it does for its products. Hence, this concludes the Lux marketing mix.
A brand launched by Unilever, Lux is a global brand which has established itself as one of the popular brands in the category of toiletries. It offers varied products ranging from soaps, shower gels, shampoos to other bath additives. Though this brand was launched as a laundry soap, Lux surely has come a long way with its current product line dealing with beauty soaps. Lux is brand which has primarily focused and connected with women across 100 countries around the globe.
In fact, Lux has emerged as a market leader in many countries like Pakistan, Brazil, Thailand, India and South Africa. Lux has now become a generic brand for the soaps category.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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