Lux soap marketing project assignment

Operating in Bangladesh for over the last four decades the company is trying to bringing world class high quality products at the door step of their customers. The usage of Milliner products by over 90% of the people in Bangladesh stands a testimony to their successful operation.. Their array of products show that they reduce household care, fabric cleaning, skin cleansing, skin care, oral care, hair care, personal grooming, and tea based beverage products under worldwide famous brand names Wheel, LUG, Lifebuoy, Fair & Lovely, Pond’s, Close Up, Sunlit, Lipton, Lipton Taiga, Postponed, All Clear, Vim, Surf Excel, and Reason. . 2 Objective of this report: This report is an outcome of an analysis of marketing strategies used by Milliner Bangladesh Ltd. The main purpose of the report is to find what strategies the company uses to market its world famous beauty soap, LUG, in Bangladesh; the positive and negative aspects of those strategies. The report further analyzes the position of Milliner Bangladesh Ltd. In the toiletry industry in comparison to its competitors. The report discusses the process of using market segmentation, target marketing, the product, pricing, promotional and distribution strategies and a competitive analysis. . 3 Methodology of this report: For accessibility and availability of information we have chosen to work on the strategies of Milliner Bangladesh Ltd. As the company operates in the market with a huge number of products in different industries, we have decided to focus on one of their world wide successful brands, LUG. Most of the information used in this report is from primary sources. The main source of information was the focus group discussion. In addition information was also collected from websites.

Chapter product Category, Market Segmentation, Target Marketing and Postpositions chapter describes the category of the selected product. The chapter is organized into four sections. Section 1 states under which category the product falls. Section 2 describes how Milliner Bangladesh Ltd. Differentiates the population and categorizes them into different segments. Section 3 analyzes which segment the many targets and why they target that specific segment. Finally section 4 describes the process through which the company tries to capture a place in the buyers mind I. . The product positioning method. 2. 1 Product Category: LUG falls under the category of toiletry product as a beauty soap. 2. 2 Market Segmentation: The company claims that LUG is the highest selling beauty soap in Bangladesh. Moreover some survey reports also reveal the same result. Though LUG is the highest selling beauty soap in Bangladesh, it does not go for traditional mass marketing. Moreover as a beauty soap LUG does not even segment TTS market according to gender. Urban and rural area consumers.

Formula given by Research and Development departments in foreign countries, LUG is produced in Bangladesh from imported raw materials like sodium soap, glycerol and different extracts according to flavors, coming from Milliner plants situated abroad. LUG is offered in Bangladesh in six different flavors which are: LUG Energize Honey, LUG Golden Glow, LUG Nature Pure, LUG Orchid Touch, LUG Almond Delight and LUG Aqua Sparkle. Taking into account the convenience of its customers, the company manufactures all flavors of LUG in three different sizes, gum, gum and gum. 3. Price: Though Milliner Bangladesh gives its LUG customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a product with a vulnerable demand in Bangladesh. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. Company carries out research on competitors price and brand loyalty when it feels extreme necessity of changing price. The brand loyalty test is an exploratory research which is known as Brand Health Check-Up (BACH). . 3 Place: Milliner Bangladesh Ltd. Has a huge distribution channel for LUG all over the country as its sales reach more than 10 million pieces a year. The company has six huge warehouses, one in each division of Bangladesh, where the product goes after they are manufactured at Gallagher factory. The company does not use its own fleet of transport for distributing its product. However, it has outsourced its distribution process to various third party distributors, exclusively dedicated to Milliner Bangladesh Ltd. These distributors then supply the product all over Bangladesh to a huge number of retailers.

Even though LUG targets the urban and sub urban middle and upper middle class people they are distributing their products all over Bangladesh because of a recent increase in demand of its product to all segments of the population. 3. 4 Promotion: Milliner Bangladesh undertakes huge promotional activities to remote LUG which has topped the beauty soap industry of Bangladesh. It spends almost 20% to 25% of its Net Proceeds from Sales (NAP) of LUG for promotional activities for LUG 1 Its certain annual promotional campaigns like LUG Channel I Superstar and LUG Channel I Annual Cinema Awards has made the product a part of the glamour world.

Beauty soap is an uprising product in Bangladesh as a greater portion of the population, both male and female, are now getting more beauty conscious. As a multinational company Milliner Bangladesh With six different fragrances, three different sizes, international standard and high quality design, as a product, LUG has been highly successful over the years. Its distribution process is highly efficient. Its promotional activities, like the beauty contest has been a milestone in attracting a huge number of customers. Overall with its marketing activities LUG has been a successful brand.

The only place where rival companies are progressing is in giving customers redemption offers. Research revealed that Bangladesh customers are highly attracted to this sort of offers. These offers are not sustainable in the long run but still it takes away a considerable part of Lulls sale in the short run. Chapter recommendation this chapter the team would suggest some recommendations to Milliner Bangladesh Ltd. To adopt more successful operation in Bangladesh. Since a huge portion of the rural poor people is demanding LUG in recent days, Milliner Bangladesh Ltd should expand their target market also towards he rural people.