Philips Organization Study

Discuss the product differentiation strategy of Lux. Do you concur with the approach? Give reasons.

Lux has been derived from the word “Luxury” and in the personal wash market in India that is valued at Rs.45 billion, Lux is the largest brand in this category that has a value share of about 17%.

Lux soap was launched in India in 1929 and it was sold for 2 “anas” at that time and from the very first advertisement Lux featured “Leela Chitnis”, the very gorgeous and famous face of Silver screen and it was marketed as the beauty secret of the film stars.

Since its launch in India, Lux has offered a variety of soaps in different colors and fragrances, however the benefit offered by all remain the same – beautiful skin. Desirable product sensorial, its world class fragrances and nourishing ingredients have made a strong product differentiation.

Lux being the market leader has evolved with the changing needs of its consumers. 1980’s saw emergence of premium category and in 1989 Lux enhanced this category by launching products to suit all skin type.

Lux have always been superior and have always led the market by setting benchmarks for the competition. Lux has offering in two of the four market segment – Popular and Premium.

To establish the presence of nourishing ingredients, a unique concept, “ingredients you can see in the soap” was born and that led to strong product differentiation as well.

Yes, I do concur with the approach and due to following key reasons.

• Positioning – Lux has been positioned and marketed in the Indian market as “the beauty soap & secret of film stars”

• Product line – Moisturizing, deep cleaning, sun screening & Body wash

• Market segment – Popular and Premium to cover majority of Indian market (Urban & Rural).

• Availability - Different sizes & perfumes variants

• Affordability - Lux mini starts at Rs.5

• Presence of ingredients – a unique concept to see the presence of ingredients was brought in to boost the sales.

• One objective – beautiful skin

What factors contributed to the success of the Lux promotional campaign?

Lux campaign have wooed millions of people over the decades. Popularly known as the soap of film stars, Lux has been an