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Extensive SWOT Analysis of Lux – One of India’s Most Popular Soap

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In our previous blog, we did a comprehensive SWOT Analysis of the strongly suggested brand by Dermatologists, Dove. Here we will be doing an Extensive SWOT Analysis of Lux.

Lux is one of the most popular soap brands in India. It is also one of the best soap brands in India. Lux is one of the forefront brands in its industry. It has marketed its brand very well making it one of the most popular household brands.

In this growing digital era, it is very important for a brand to make an impact on its customers by creating a brand image. This is possible with the use of digital marketing which is the leading marketing tool nowadays. If you want to know what is digital marketing and how to use it to your advantage  – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us keen to know how Lux gained such success in its industry, here we have done an extensive SWOT Analysis of Lux. But before diving into its SWOT Analysis let’s get a brief idea about Lux as a company, its products, competitors, financials, and more.

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About Lux

The Lux brand originated in 1925. It is a sub-brand of Unilever. It has its headquarters situated in Singapore and provides its products all over the world.

It has a wide range of products which include soaps, shampoos, gels, conditioners, etc. Their main motive was to serve women who take pleasure and pride in maintaining their beauty. They offer quality beauty products. They believe that women’s beauty should always influence themselves and not someone else.

Lux has many extravagant celebrities who are their brand ambassadors. Some of them include Elizabeth Taylor, Katrina Kaif, Aishwariya Rai, Kareena Kapoor, etc. They believe that an aroma enhances a woman’s confidence and reveals a different side of personality.

SWOT Analysis of Lux | IIDE

 

Quick Stats About Lux

Founder NA
Year Founded 1925
Origin Singapore
No. of Employees 21,000 (2020)
Company Type Subsidiary
Market Cap $116 Million (2020)
Annual Revenue $229 Million (2020)
Net Profit $23 Million (2020)

 

Products of Lux

Lux is one of the most well-known brands in India which creates a large demand for its products. Some of the most famous products of Lux are:

  • Soap Bars
  • Shampoos
  • Conditioners
  • Bathing Gels

 

Close Competitors of Lux

Lux has many competitors in the market which it needs to compete with. Some of Lux’s competitors are as follows:

  • Dove
  • Vivel
  • Lifebuoy
  • Nirma Ltd
  • Detol

 

Now that we got an idea about the company let us start with the Extensive SWOT Analysis of Lux.

 

SWOT Analysis Of LUX

 

Infographics - SWOT Analysis of Lux | IIDE

SWOT Analysis is formulated to obtain a strategic and detailed framework that is used by a brand to identify its strengths, weaknesses, opportunities, and threats (SWOT). This analysis will help the brand to determine its strategies, policies, and competitors. 

This analysis helps a company determine whether they are doing something correct or exceptional, where the company has gone wrong, understanding various new opportunities, and whether they contain any risks.

Let us understand its SWOT Analysis of Lux, by first digging into the brand’s strengths.

 

Strengths of LUX

Strengths refer to things the company does well. The strengths of a company determine the qualities that separate you from the competitor. The skilled and knowledgeable staff can be called strengths of a company. Tangible  Assets like intellectual property, capital, and advanced technology are additional strengths of a company.  

  • Strong brand name – Lux is a brand that has completed 96 years in the market. It has gained trust and credibility from the users due to its dedicated service to its customers. Unilever is an admired company in the world that has LUX as its strongest brand.
  • Strong Brand Ambassadors – Many celebrities endorse LUX. Some of them are Elizebeth Taylor, Katrina Kaif, Kareena Kapoor, Aishwarya Rai, Shah Rukh Khan. This also helps to influence the buying decision of a consumer.
  • Strong contender globally – LUX has captured high market shares globally. LUX is a leading brand in countries like India, South Africa, Pakistan, Thailand, Mexico, Europe, etc. Hence it has allowed LUX to influence the market.
  • Global Existence – LUX is available globally all around the world in more than 100 countries. It has created a strong base in emerging and developing markets like India, China, Africa, and Brazil.
  • Strong Distribution – Lux products are omnipresent. Hence it ensures that LUX is available in all markets. LUX is also trying to enter the rural markets
  • Available in various forms – LUX products include soaps, shower gel, shampoo, and conditioner and are available in different quantities and fragrances. 

 

Weakness of LUX

Weakness is determined when a company lacks in a particular area or field. A company is defined as weak when competitors perform a task better than your company, when it doesn’t utilize its resources to the best of its capability, or when the Unique Selling Point (USP) is inadequate to satisfy the customers.

  • Unisex Appeal – LUX predominately is utilized by the female population. The advertisements and campaigns focus more on the women population. LUX does not focus much on the male population; it caters mainly to the female population.
  • Less Penetration in Rural Market – LUX’s main target areas are urban, sub-urban middle, and upper-middle-class people. LUX is unrecognized in the rural market and faces a gradual process to enter the rural market.
  • Controversies – LUX had issues regarding some ads which did not do well on social media platforms. One such ad was by Shah Rukh Khan that involved a bathtub scene. Viewers did not like this ad which caused the brand image to reduce. 

 

Opportunities of LUX

Opportunities can be defined when markets are underserved and hence the company can use this to its advantage and plan a detailed strategy to penetrate that market segment. These opportunities may arise when you have fewer competitors. Opportunities lead to an emerging need for the particular product or when you get good media press this will help to increase brand awareness.

  • Growth of Personal Care Industry – It is expected that within the upcoming year’s care industry is predicted to grow in markets like India and Africa. LUX has positioned its brand as a beauty product that will benefit from rising consumer spending wherein customers want to pamper themselves.
  • The demand for BodyWash – In Recent trends, the liquid body wash market is rising and being recognized globally and utilized by many people. LUX has an opportunity to grab the customer’s attention in the body wash market if they can make customizable body wash and come up with new variants which will interest the customers.
  • New Trends – The new generation has different trends per month. This brings a possibility for the brand to adapt itself to the new trends and accordingly create new products which satisfy the purchasers. This generates revenue, increases sales, brand awareness, and helps to diversify into new products.
  • Offers and Schemes – LUX must introduce more promotional schemes to the products so that the customer finds LUX products the most affordable and which will generate sales and revenue. 
  • Expand into rural markets – LUX needs to put more effort to capture rural markets in India, Pakistan, and African countries. It needs to develop strategies and plan a proper communication strategy that would help increase its market size in rural areas.

 

Threats of Lux

When there are new emerging competitors in the market, changes in the regulatory environment, poor media coverage, brand switching are the various threats observed. 

  • In House Competition – LUX is a brand under Unilever. Unilever also has many similar products like Pears and Dove. Thus LUX faces in-house competition with these products as well as external products. Although these products are in a different price range they are all in the same market.
  • Intense competition – The Personal Care industry has cutthroat competition between various brands National, multinational, and international. When there are changing, emerging, and growing markets there will always be new entries of various brands which might affect the market share of LUX.
  • Consumer Preferences – With the changing environment and the trends in the market, consumer preferences are constantly shifting. LUX must adapt to these changes so that it can survive in the market. 
  • Lack of Skilled Staff – When there is no skilled staff the growth of the products will decrease. Hence, there is always a need for a change or an innovation.

 

Thus, we have concluded the SWOT Analysis of LUX. this helps the company to know where it stands in the market and what it needs to improve.

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Conclusion

On the study of the SWOT Analysis of Lux, we know that it is one of the most favorable brands in India. It has a lot of competitors but has managed to remain as the lead soap brand in the market due to its customer loyalty. It also provides its products in an affordable range.

Lux has used heavy promotional activities and has been able to penetrate this market. Having a digital presence nowadays is very important as most people nowadays are using digital media. Thus digital marketing is the best way to reach your target market which every business should have. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you would like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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