Lux, India's most famous personal attention build has extended itself to deo. The campaigns are on air featuring the extensions. The deo marketplace inward Republic of Republic of India is witnessing huge total of build action amongst novel brands beingness launched almost every month. According to Economic Times, the deo marketplace is estimated to hold upwards unopen to Rs 1300 crore together with growing at 40%.
The query every bit e'er is what tin hold upwards logic behind HUL extending its iconic build to deo. It is non that Lux is non extended before. The build has soaps, shampoos, bodywash inward the product-line. Globally this is the start fourth dimension that the build is extending to deodorants.
HUL has been a pioneer inward creating the deo category inward India. The fellowship holds its leadership position inward the marketplace amongst its iconic build Axe. HUL also has its anti perspiration deo Sure together with also Dove. So rather than investing on these brands why would HUL effort to extend Lux into this category ?
One of the argue tin hold upwards to pre-empt contest yesteryear flooding the marketplace amongst its ain brands. Lux has a huge equity which volition interpret to trials together with incremental sales. Further, the fellowship is also wary nearly the launch of competing brands similar Santoor, Nivea etc into this category.
However, HUL is taking the adventure of spreading the budgets every bit good far on these extensions. After Axe, the fellowship was non able to come upwards out amongst some other blockbuster deo brand. It pulled out Rexona together with Sure was non able to replicate the success of Rexona ( during the initial years). Dove is also some other build which is extended to almost all imaginable personal attention categories.
Lux every bit a build volition larn to a greater extent than diluted if HUL tries to milk its equity every bit good much. None of its before extensions could replicate the success of the inwardness brand. Rather than diluting, HUL could accept launched novel focused deo brands.