Lux Market Share
Market Share of HUL
Regaining the lost market share happens to be a formidable challenge and the need of the hour for the market leader in the soaps and detergents category . The market is fast expanding with both the old and new players in the segment adopting a very aggressive stance. In fact, soaps and detergents have always contributed a big chunk (41 per cent) of HUL 's turnover. The profit margins in this category however have not been encouraging and a tough competitive environment has been posing a tough challenge the Company. The consumer goods major is now in the thick of fighting with its competitors in a market with a new strategy for its soaps and detergents portfolio, Home Care & Skin Cleansing products 40.
Today the formidable
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Today, Lux is as big a brand as Lifebuoy soap is and both share a similar value share which happens to be around 15 per cent. The challenges were, however different in the case of lifebuoy. The aim of lifebuoy was based on the need to make germ control more relevant and accessible to people and have a bath soap which would make an appeal across different segments and different markets. Apart from making Lifebuoy a more contemporary brand (it currently has a silver coin offer running), the subsequent extensions into different categories such as hand wash and sanitisers has also made the brand far more appealing in the urban …show more content…
In HUL 's 2009-10 Annual Report, the management discussion and analysis highlights that the soaps and detergents category recorded a modest turnover growth of 1.5 per cent. “The growth of the soaps and detergents category needs to be viewed on a very high base in the previous year which saw price increases linked to commodity cost inflation. During the year under review, the prices of products, particularly the detergents segment, were reduced taking into account the reduction in commodity prices. The segmental margin of this category was lower by 100 bps (one per cent) linked to the volatility in commodity costs in the initial part of the year and the actions taken to defend the company 's leadership position in the face of heightened competitive activity. While the company is the undisputed market leader in this category, it continues to focus on the challenge of winning back its lost market share in this important
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