Swot Analysis of Lux

Topics: Strategic management, Marketing, Market research Pages: 5 (921 words) Published: August 20, 2011
SWOT analysis is a basic, straightforward model that provides directionand serves as a basis for the development of marketing plans. Itaccomplishes this by assessing an organizations strengths (what anorganization can do) and weaknesses (what an organization cannot do) inaddition to opportunities (potential favorable conditions for an organization)and threats (potential unfavorable conditions for an organization). SWOTanalysis is an important step in planning and its value is oftenunderestimated despite the simplicity in creation. The role of SWOTanalysis is to take the information from the environmental analysis andseparate it into internal issues (strengths and weaknesses) and externalissues (opportunities and threats). Once this is completed, SWOT analysisdetermines if the information indicates something that will assist the firm inaccomplishing its objectives (a strength or op nternal Analysis - The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factorsshould be evaluated across the organization in areas such as: y

Company culture, image

Organizational structure

Key staff

Access to natural resources

Position on the experience curve
External Analysis
- An opportunity is the chance to introduce a newproduct or service that can generate superior returns. Opportunities canarise when changes occur in the external environment. Many of thesechanges can be perceived as threats to the market position of existingproducts and may necessitate a change in product specifications or thedevelopment of new products in order for the firm to remain competitive.Changes in the external environment may be related to: y



Market trends



Social changes

New technology

Economic / Political environmen

Operational efficiency, capacity

Brand awareness

Market share

Financial resources

Exclusive contracts

Patents and trade secrets
Analysis is instrumental in strategy formulation and selection. It is astrong tool, but it involves a great subjective element. It is best when usedas a guide, and not as a prescription. Successful businesses build on their strengths, correct their weakness and protect against internal weaknessesand external threats. SWOT Analysis helps in strategic planning infollowing manner-a. It is a source of information for strategic planning.b. Builds organization¶s strengths.

c. Reverse its weaknesses.d. Maximize its response to opportunities.e. Overcome organization¶s threats.f. It helps in identifying core competencies of the firm.g. It helps in setting of objectives for strategic planning.h. It helps in knowing past, present and future so that by using past andcurrent data, future plans can be chalked out.

Strong Market Research (door to door sampling is done once a year in Urban andRural areas). 2.
Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts, Saffron,Sandalwood Oil, and Honey to name a few). 3.
Strong sales and distribution network backed by HUL.
Strong brand image.
Positioning focuses on the attractive beauty segment.
Dynamically continuous innovation of the product and brand rejuvenation ± newvariants ( Aromatic Glow and Chocolate Seduction and Lux White Spa body wash) and innovativepromotions (22 carat gold coin promotion ± µChance Hai¶). 7.

Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment). 8.
Though it is in popular segment, it is having mass appeal/market presence across allsegments (15% of the soap market captured by Lux (sales / volume) 9.
Unique advantage of having access to resources and assets of HUL.

Lux is mainly positioned as beauty soap targeted towards women, hence it lacksunisex...
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