Lux SWOT Analysis, Competitors & USP

SWOT analysis of Lux analyses the brand by its strengths, weaknesses, opportunities & threats. In Lux SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Lux to benchmark its business & performance as compared to the competitors. Lux is one of the leading brands in the FMCG sector.

The article below lists the Lux SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Lux SWOT Analysis:

SWOT Analysis of Lux

For Lux, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Lux Strengths

The strengths of Lux looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Lux :

1. Strong market research (Door to door sampling – once in a year – Rural and Urban area)
2. Many variants (Almond oil, Orchid extracts, Milk cream, Fruit extracts, Saffron sandalwood oil and Honey)
3. Dynamically continuous innovations – New variants and innovative promotions (22 carat gold coin promotion – “Chance Hai”)
4. Strong brand promotion but relatively lower prices – Winning combination
5. Lux soap brand is sold in over 100 countries

Lux Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Lux SWOT Analysis:

1.Mainly positioned as beauty soap targeted towards women, lack unisex appeal
2.Some variation like the sunscreen, international variant did not do well in the market
3.Not much popular in rural areas

Lux Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Lux SWOT Analysis:

1.Soap industry is growing by 10% in India
2.Liquid body wash is currently in growth stage – Lux should come out with more variants in this segment
3.Large market share – Strong hold over the market

Lux Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Lux are as mentioned:

1.High internal competition (Pears – Beauty segment)
2.New entrants in this segment
3.Maturity stage – threat of slipping down to decline stage – if constant reinvention is not carried out

Lux Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Lux:

1. Vivel
2. Lifebuoy
3. Nirma Ltd

Hence this concludes the Lux SWOT analysis.

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About Lux

Lux Overview
Parent Company	HUL (Unilever)
Category	Personal Health Care - Soaps
Sector	FMCG
Tagline/ Slogan	Not Just Soap Its Skin Care; ab khubsuriti se darr kaisa; Lux brings out the star in you
USP	Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands.
Lux STP
Segmentation	Personal Health – Soap for
Target Market	Urban & Semi Urban – Upper and middle class
Positioning	Affordable Luxury Soap for the upper and middle class people

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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