Project Lux

A Project Report on LUX

PREFACE

Marketing should not be looked upon in a vacuum or in isolation. It is an

essence taking a view of the whole business organization and its ultimate objective

concern for marketing must penetrate all areas of the enterprise. Market survey in

today’s competitive world is a must for every organization.

This project is a study of market potential of Lux. The rational behind this

particular study is to find out the present market scenario of various brands & to

find out the corporate need and perception. It was a pleasurable experience to

conduct a research on behalf of Lux pertaining to the study of the Beauty.

Conclusion and there by recommendation has been arrived at by proper

and justified interpretation of the result derived from the above said analytical

tools and techniques.

ACKNOWLEDGEMENT

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Preparing a project of this nature is an arduous task and I was fortunate enough

to get support from a large number o persons. I wish to express my deep sense of

gratitude to all those who generously helped in successful completion of this report by

sharing their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to Respected , Head of

Department Dr.Pramesh Gautam, Shri Chaitainya Kaushik Department of Business

Management , Swami Vivekanand Institute of Technology, College Sagar for allowing

me to undertake this project.

I feel extremely exhilarated to have completed this project under the able and

inspiring guidance of Shri Chaitainya Kaushik He rendered me all possible help me

guidance while reviewing the manuscript in finalising the report.

I also extend my deep regards to my teachers , family members , friends and all

those whose encouragement has infused courage in me to complete to work successfully.

(RISHI KUMAR SEN)

B.B.A IST Semester

2


DELCLARATION BY THE CANDIDATE

Date :

I declare that the project report titled " LUX " on Market Segmentation is nay

own work conducted under the supervision of Shri Chaitainiya Kaushik Department of

Business Management , Swami Vivekanand Institute of Technology, College Sagar To

the best of my knowledge the report does not contain any work , which has been

submitted for the award of any degree , anywhere.

(RISHI KUMAR SEN)

B.B.A IST Semester

3


CERTIFICATE

The project report titled " LUX " been prepared by Mr. Rishi Kumar Sen

BBA Ind Semester , under the guidance and supervision of Shri Chaitnaiya Kaushik for

the partial fulfillment of the Degree of B.B.A.

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

CONTENTS

TOPIC TITLE

PAGE NO.

1. Preface

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2. Acknowledgement

3. Declaration of the Candidate

4. Certificate

5. Introduction of Lux

6. History of Lux

7. Marketing Segmentation

8. Swot Profile of Lux

9. Scope of the Study

10 Limitations

11 Research Methodology 12 Data Analysis & Interpretation

13 Conclusion

14 Bibliography

15 Questionaire

Introduction:Understanding perceptions of channel members and

consumers regarding sales promotion activities enhances

the effectiveness of these activities. Widespread usage of

sales promotion activities in Fast Moving Consumer Goods

(FMCG) sector makes it imperative that manufacturers take

into account channel member and consumer perceptions

before planning such programmes. In this paper, an

attempt has been made to examine the nature of sales

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promotion activities in toilet soap category in India, study

retailer perceptions with respect to these activities and also

get an insight into consumer perceptions of these activities.

Our findings indicate that with respect to the nature of the

schemes, premiums (free gifts) were found to be the most

frequently used in both premium and popular toilet soap

category, followed by price offs. Retailer’s perceived price

offs to have relatively greater impact compared to any other

forms of sales promotion. In line with the retailers’

perceptions, the findings of consumer perceptions indicated

that price off was the most preferred type of sales

promotion. Retailers stated that role of word of mouth and

television advertising was very important in providing

information inputs to the consumers regarding sales

promotion activities. This perception of retailers was

supported by the consumer unaided recall of sales

promotion schemes which were widely advertised. As the

retailer interacts and observes consumers more frequently

and closely than the manufacturer, it would be useful for

the companies to incorporate perceptions while planning

sales promotion strategies.

All the above researches have focused on price promotions

and their response. Our study though exploratory has

considered perceptions for price as well as non-price

promotions in toilet soap category.

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The reasons for the study were:

The widespread use of sales promotions in toilet soap

category.

Historically, whenever there was a downward trend in

growth, sales promotion activities took the front seat of

promotional mix.

Companies planned these activities with inward looking

view hence it was felt that it would be useful to

understand the perceptions of consumers and retailers

regarding sales promotion activities to improve the

effectiveness of these activities.

Hindustan Unilever Limited:

In the summer of 1888, visitors to the Kolkata harbor

noticed crates full of Sunlight soap bars, embossed with the

words "Made in England by Lever Brothers". With it began

an era of marketing branded Fast Moving Consumer Goods

(FMCG).

Soon after, followed Lifebuoy in 1895 and other famous

brands like Pears, Luxand Vim. Vanaspati was launched in

1918 and the famous Dalda brand came to the market in

1937.In 1931, Unilever set up its first Indian subsidiary,

Hindustan Vanaspati Manufacturing Company, followed by

Lever Brothers India Limited (1933) and United Traders

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Limited (1935). These three companies merged to form HLL

in November 1956; HLL offered 10% of its equity to the

Indian public, being the first among the foreign subsidiaries

to do so. Unilever now holds 51.55% equity in the company.

The rest of the shareholding is distributed among about

380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to

1900. By 1903, the company had launched Red Label tea in

the country. In 1912, Brooke Bond & Co. India Limited was

formed. Brooke Bond joined the Unilever fold in 1984

through an international acquisition. The erstwhile Lipton's

links with India were forged in 1898. Unilever acquired

Lipton in 1972 and in 1977 Lipton Tea (India) Limited was

incorporated.

Pond's (India) Limited had been present in India since 1947.

It joined the Unilever fold through an international

acquisition of Chesebrough Pond's USA in 1986.

Since the very early years, HLL has vigorously responded to

the stimulus of economic growth. The growth process has

been accompanied by judicious diversification, always in

line with Indian opinions and aspirations.

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The liberalization of the Indian economy, started in 1991,

clearly marked an inflexion in HLL's and the Group's growth

curve. Removal of the regulatory framework allowed the

company to explore every single product and opportunity

segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances,

acquisitions and mergers. In one of the most visible and

talked about events of India's corporate history, the

erstwhile Tata Oil Mills Company (TOMCO) merged with

HLL, effective from April 1, 1993. In 1995, HLL and yet

another Tata company, Lakme Limited, formed a 50:50 joint

venture, Lakme Lever Limited, to market Lakme's market-

leading cosmetics and other appropriate products of both

the companies. Subsequently in 1998, Lakme Limited sold

its brands to HLL and divested its 50% stake in the joint

venture to the company.

HLL formed a 50:50 joint venture with the US-based

Kimberly Clark Corporation in 1994 - Kimberly-Clark Lever

Ltd, which markets Huggies Diapers and Kotex Sanitary

Pads. HLL has also set up a subsidiary in Nepal, Nepal

Lever Limited (NLL), and its factory represents the largest

manufacturing investment in the Himalayan kingdom. The

NLL factory manufactures HLL's products like Soaps,

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Detergents and Personal Products both for the domestic

market and exports to India. The 1990s also witnessed a

string of crucial mergers, acquisitions and alliances on the

Foods and Beverages front. In 1992, the erstwhile Brooke

Bond acquired Kothari General Foods, with significant

interests in Instant Coffee. In 1993, it acquired the Kissan

business from the UB Group and the Dollops Ice-cream

business from Cadbury India.

As a measure of backward integration, Tea Estates and

Doom Dooma, two plantation companies of Unilever, were

merged with Brooke Bond. Then in July 1993, Brooke Bond

India and Lipton India merged to form Brooke Bond Lipton

India Limited (BBLIL), enabling greater focus and ensuring

synergy in the traditional Beverages business. 1994

witnessed BBLIL launching the Wall's range of Frozen

Desserts. By the end of the year, the company entered into

a strategic alliance with the Kwality Ice-cream Group

families and in 1995 the Milk food 100% Ice-cream

marketing and distribution rights too were acquired.

Finally, BBLIL merged with HLL, with effect from January 1,

1996. The internal restructuring culminated in the merger

of Pond's (India) Limited (PIL) with HLL in 1998. The two

companies had significant overlaps in Personal Products,

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Specialty Chemicals and Exports businesses, besides a

common distribution system since 1993 for Personal

Products. The two also had a common management pool

and a technology base. The amalgamation was done to

ensure for the Group, benefits from scale economies both in

domestic and export markets and enable it to fund

investments required for aggressively building new

categories.

In January 2000, in a historic step, the government decided

to award 74 per cent equity in Modern Foods to HLL,

thereby beginning the divestment of government equity in

public sector undertakings (PSU) to private sector partners.

HLL's entry into Bread is a strategic extension of the

company's wheat business. In 2002, HLL acquired the

government's remaining stake in Modern Foods.

In 2003, HLL acquired the Cooked Shrimp and Pasteurised

Crabmeat business of the Amalgam Group of Companies, a

leader in value added Marine Products exports.

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HistoryLuxwas launched in India in 1929. The first

bar of Luxwas made in India and sold for a

princely sum of two annas in 1934. From

the very first advertisement in 1929 featuring Leela Chitnis,

the gorgeous faces of the silver screen have come out in the

open with their beauty secret – Beauty Soap.

Popularly known as ‘the lux of film stars’, Lux has been a

favorite with generations of users for the experience of

sensuous, Beauty Soapurious bathing.

Since its launch in India, Luxhas offered a range of soaps in

different colours and fragrances. They have each, however,

offered the same benefit of beautiful skin. Desirable product

sensorial, especially its world class fragrances and

nourishing ingredients, have made the Luxbath a

pleasurable experience.

But Luxbeing the market leader has evolved along with the

changing needs of its consumers. The late 1980s saw the

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emergence of a premium segment in the soap category – a

new consumer set whose beauty and bathing needs began

to evolve. In 1989, to tap into this segment, Luxlaunched a

range of premium soaps to suit their different skin types.

LuxVariants:

In the country since 1929 and endorsed by popular film

stars, Luxis the biggest brand in the soap category.

LuxToilet Soap, in the popular segment, offers its

consumers a range of soaps enriched with the goodness of a

variety of nourishing ingredients –Almond Oil, Orchid

Extracts, Milk Cream, Fruit Extracts, Saffron, Sandalwood

Oil and Honey. The Luxpremium range offers specialized

skincare to its consumers in the form of LuxInternational. It

also includes LuxBody Wash for superior bathing benefits

keeping in step with the changing needs of the

Luxconsumer.

In addition to these variants Lux has come up with a few

more variants to celebrate its 75 years in business.

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The LuxCelebration Range is a set of three exclusive

variants- Aromatic Glow and Chocolate Seduction and

LuxWhite Spa body wash containing exotic ingredients,

never seen in the Indian market before.

LUX : COMPETITORS

NIRMA:

Nirma Since the early nineties,

Nirma has been challenging the

hegemony of Hindustan Lever,

which holds over 54 per cent share of the toilet soaps

market. Nirma has so far managed to snatch 9 per cent

share of market.

Almost as an answer to the general perception of low

quality, Nirma had invested in the latest soap

manufacturing plant in the world the first of its kind in

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India. While leading manufacturers like HLL and Godrej

continue to rely on batch manufacturing, Nirma had

sourced the latest Italian technology from Binacchi and

CMB and set up a finish line that produces 500 toilet soaps

per minute, wrapped and carton sealed for dispatch.

Nirma Bath Soap:

Toilet soap market in India was dominated by a very few

MNC’s which could monopolistically

price their product. In 1992,

sensing a strong need to expand the

market through Penetrative Pricing,

Nirma entered this market with the

launch of ‘Nirma Bath Soap’, which is a carbolic (Red) soap.

Although the carbolic soap segment is on decline, Nirma

Bath has generated larger volumes each year. Packed in a

red color wrapper and available in 75 gram and 150 gram

pack sizes, this soap has a Total Fatty Matter (TFM) of 60

%.

Nirma Beauty Soap:

With its market promise to offer

“Better Products, Better Value,

Better Living,” Nirma introduced

‘Nirma Beauty Soap’ in the year

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1992. Available in three different variants and pack sizes,

this soap has a TFM content of 70%. Due to its admirable

perfume and a higher TFM content, this brand, within a

short span of five years, had achieved the status of the third

largest selling toilet soap brand and still continues its

outstanding performance

Nirma Lime Fresh Soap:

This product had created a sensational marketing history in

the Indian Toilet soaps market, when it

was launched in 1997. Seventeen

million packs of Nirma Lime Fresh

soap were sold in the very first month

of its soft launch. Packed in a poly coated 75 gm carton,

which is printed on the world’s best Cerruti 8-colour

printing machine, this soap is available in green colour.

With a lime aroma that tingles in one’s sensory buds for a

long time, this soap contains 80% TFM. The product launch

of Nirma Lime Fresh had been extremely successful, being

ranked as the Seventh Most Successful Brand Launch for

the year 1998, as ranked by the Business Standard

Marketing Derby, 1998. (as featured in The Strategist

Quarterly, July-September 1998).

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Nima Rose:

The remarkable and phenomenal

market response received by Nima

Rose soap within just two months of

its launch once again proved the

merits of Nirma’s commitment towards its consumers. Nima

Rose soap has got an exceptionally soft rose fragrance –

which remains around body for a long time even after bath.

The high TFM content of this product allows a consumer to

have pleasant bath. This brand had carved a niche in its

segment by achieving leadership position just within two

months of its launch. It is available in 100g and 150g pack

sizes.

Nima Sandal:

Over the period, Indian toilet soap market has fragmented

& has seen emergence of prominent floral fragrance

segments as Sandal, Rose,

Jasmine, etc. Nima Sandal is a

one of such product in floral

segment. This toilet soap has 80%

TFM content, with rich & exotic fragrance. It promises

benefits of Sandal oil & Turmeric powder. It is a premium

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product from Nima stable and is available in 100g and 150g

packs.

The company has expanding into other segments of the

fragmented five lakh tonne soap market. It launched Nirma

Luxin the premium segment. Nirma Luxcarried a MRP price

tag of Rs 7 and was sold at Rs 6, while Levers Luxsold for

Rs 8. Imitating Levers time-tested strategy, Nirma used

actress Sonali Bendre in its advertising. Today, Nirma

Luxsells whopping 45,000 tonnes, making it the3rd largest

soap brand after Luxand Lifebuoy.

When Lever made an assault on Nirma Luxwith its Breeze,

the Patels quickly hit back at Levers freshness plank. Nirma

Lime Fresh was positioned against Levers Liril Lime Fresh,

but while Liril sold for Rs 12.50, Nirma Lime Fresh sold for

Rs 8.

Breaking away from tradition, Nirma introduced a new soap

brand, Nima Lime, in the key markets of Gujarat and

Maharashtra. The launch was significant because it was the

first time since the company's inception that Nirma had

chosen to move away from its umbrella branding strategy

by adopting a new brand name. With a wrapper price of Rs

6.50 and a total fatty matter (TFM) content of 70 per cent,

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Nima Lime Fresh was aimed at the popular segment of the

toilet soaps market.

This is Nirma's fourth brand launch in the toilet soaps

market. It marked its foray in the early nineties by

launching Nirma luxto take on Lever's best selling brand;

Beauty Soap. Nirma followed it up with Nirma Premium,

Nirma Lime Fresh.

GODREJ:

Godrej Consumer Products Ltd.

(GCPL) is a major player in the

Indian FMCG market with

leadership in personal, hair,

household and fabric care segments. The company employs

950 people and has three state-of-the-art manufacturing

facilities at Malanpur (M.P.) Guwahati (Assam) and Silvassa

(U.T.).

Godrej is among the largest marketer of toilet soaps in the

country with leading brands such as CINTHOL, FAIRGLOW,

and GODREJNO 1.

Their FAIRGLOW brand, India's first Fairness soap, has

created marketing history as one of the most successful

innovation.

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Market share in Toilet soaps grows to 8.0% in FY 2004-05

from 6.8% in FY 2003-04. All three Power brands have

begun to perform strongly.

However, GCPL is a relatively small player compared to

HLL, in toilet soaps, with a market share of around 8 per

cent. Once the archrival of HLL, it now occupies the number

three rank, after HLL (54% market share) and Nirma (9%

market share).

Godrej No.1:

Godrej No.1 Luxstands for True Natural

Beauty. Godrej No.1 is available in five

variants enriched with natural ingredients,

specially formulated to cater to special skin types. Sandal,

Rose, Jasmine, Natural and Ayurvedic packed with the

goodness of natural ingredients.

Fairglow :

The Godrej Fair Glow fairness soap contains a powerful

fairness ingredient ' Natural Oxy-G ', which makes you

fairer by reducing the dark melanin without changing the

skin's natural balance. In addition, it also removes

blemishes to give you a clear, glowing complexion.

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Godrej Fair Glow Soap was India's first and is the largest

selling fairness soap. It helps you become fairer in a

convenient way, simply through a daily bath. It is a quality

Grade 1 fairness product having 76% TFM (Total Fatty

Matter). It has a pleasant fragrance and is white in colour.

Cinthol lime fresh:

With the extracts of real lime, Cinthol Lime Fresh provides

deep cleansing along with active

freshness and vitality. This makes for an

invigorating bath that kick starts and

gets you ready for the day.

The soap has an excellent long-lasting lime fragrance that

keeps you feeling fresh throughout the day.

With TFM 76% this Grade1 soap is available in 50g, 75g and

125g.

WIPRO

Wipro Consumer Care is yet another principal

player enjoying a five per cent market share.

After lying dormant for a decade, Wipro

Consumer Care promises moving into top gear.

Wipro has three important brands of soap in its

portfolio: Santoor, Milk and Roses, Chandrika.

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Santoor Soap:

The magic of Sandal & Turmeric comes together in Santoor

- a soap that nourishes your skin with

Sandal and Turmeric to make you look

much younger.

Santoor offered a combination of sandal

and turmeric. Wipro later introduced a

new variant of Santoor - a sandal and besan variant. The

new variant offered the combined benefits of sandal and

besan. Santoor's market share is around three per cent. But

its low market share, the company argues, has to be seen in

the context of its regional presence. This, an outcome of

limited resources, happened around mid-1990s, as the first

round of revival began. Around this time, the company took

a conscious decision to follow a state-oriented strategy.

Santoor Chandan

A Premium soap manufactured with extracts

of Sandalwood oil, Santoor Chandan has a

strong lingering fragrance and is a favourite

of discerning customers.

Milk & Roses soap

The nourishment of milk and the softness of

roses - Milk&Roses gives you glowing skin that

puts even jewellery to shame!

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Available in milky white and glowing pink.

Chandrika

The world’s first Ayurvedic soap brings you

the goodness of nature to give you healthy

and glowing skin. Chandrika, the 65-year-old

brand, now marketed by Wipro Consumer

Care and Lighting, sports contemporary packaging, a new

shape and has many new additions to the host of Ayurvedic

ingredients it is made of.

OTHERS

Colgate-Palmolive (India) Ltd. –

The marketer of personal care products, offers ‘ultra

modern’ line of Transparent Palmolive

Natural skincare soaps. Palmolive has

been the pioneer in introducing soaps for

different skin types (example Palmolive

Extra Care for Dry Skin, for Oily Skin and

for Normal Skin). Its latest range is a combination of

moisturizing glycerin, essential oils and a mixture of

premium natural herbs and flowers. It is available in two

variants – ‘Relaxing’ and ‘Soothing’. Long-lasting and

refreshing, the floral fragrance is aimed at making the user

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feel cared-for and looked-after. The price is Rs.17 for a 100-

gm cake.

Reckitt Benckiser :

A niche player in the Indian soap market owns the well

known brand ‘Dettol’. It had launched a new product -

Dettol Extra Soap. The Dettol Extra Soap is an extension of

the company's existing range of soaps under Dettol brand. It

has a formulation that provides Dettol protection and also

contains moisturizes that prevent skin dryness. The soap

has a pleasant new fragrance and a convenient saddle

shape, making it easy to hold. A 75 g bar is priced at Rs.15.

MARKET SEGMENTATION

PRODUCT

A product is anything that can be offered to a market to

satisfy a need or want.Products that are marketed include

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physical goods, services, experiences, events, persons,

places, properties, organizations, information and ideas.

Product Classification

Marketers have traditionally classified products on the

basis of characteristics: durability, tangibility, and use.

LUXis a Tangible, Non Durable Good on the basis of this

classification.

Consumer Goods Classification

The vast array of goods consumers can buy can be classified

on the basis of shopping habits.

Convenience Goods: The consumer purchases such goods

frequently, immediately and with a minimum of effort.

Shopping Goods: Are goods that the consumer, in the

process of selection and purchase characteristically

compares on the bases of suitability, quality, price and style.

Specialty Goods: Have unique characteristics or brand

identification for which a sufficient number of buyers are

willing to make a special purchasing effort.

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Unsought Goods: Are those the consumer does not know

about or does not normally think of buying LUXand other

soaps fall into the category of Convenience Good

Product Life Cycle

LUXBeauty Bar is in the maturity stage of its life cycle

whereas the LUXBodywash is in the growth stage.

Product Life Cycle:

LUXBeauty Bar is in the maturity stage of its life cycle

whereas the LUXBodywash is in the growth stage.

LUXBody LUXBeauty

Wash Bar

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LUXBeauty Soap- Form, Features, Style:

With icons of beauty endorsing the brand, the offerings

made by Luxhave always been

superior and have always led the

market, setting benchmarks for

competition.

Luxhas beauty offerings in two of

the four market segments – popular

and premium, spanning the needs of varied consumers.

LuxToilet Soap in the popular segment has in the past four

years offered its consumers a range of soaps enriched with

the goodness of a variety of nourishing ingredients – rose

extracts, almond oil, milk cream, fruit extracts and honey

which are known to harbour the secrets of incredibly

perfect skin.

At the upper end of the market is the premium range which

continues to offer specialised skincare to its consumers in

the form of International Lux– a range of

moisturising, deep cleansing and sunscreen

soaps. Keeping in tune with the changing times

it has also launched LuxBody Wash which

offers superior bathing benefits.

To establish the presence of nourishing

ingredients in the new Beauty Soap, a unique

concept, ‘ingredients you can see in the soap’,

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was born. A novel metallic substrate packaging beautifully

showcased the ingredients and its globally accepted

ingredient-linked perfumes heightened the sensorial

experience.

Each of the soaps in the range has milk cream, with the

active ingredients of rose extracts, sandal saffron, almond

oil and fruit extracts. These create an experience in

pampering indulgence and Beauty Soapury designed to

bring out the star in every woman. This is the first time in

the Indian chapter of the brand that the beauty bar variant

was being differentiated on the basis of its ingredients

rather than its perfume and colours.

Though LuxInternational, a premium variant of the toilet

soap, launched in 1989, is differentiated on the basis of its

ingredients, the popular version, LuxBeauty Bar was always

projected as a “pure and mild” solution to soft and smooth

skin.

LuxVariants

In the country since 1929 and endorsed by popular film

stars, Luxis the biggest brand in the soap category.

LuxToilet Soap, in the popular segment, offers its

consumers a range of soaps enriched with the goodness of a

variety of nourishing ingredients –Almond Oil, Orchid

28


Extracts, Milk Cream, Fruit Extracts, Saffron, Sandalwood

Oil and Honey. The Luxpremium range offers specialized

skincare to its consumers in the form of LuxInternational. It

also includes LuxBody Wash for superior bathing benefits

keeping in step with the changing needs of the

Luxconsumer

In addition to these variants Luxhas come up with a few

more variants to celebrate its 75 years in business.

SWOT ANALYSIS OF LUX

STRENGTHS

Strong Market Research (door to door sampling is

done once a year in Urban and Rural areas)

Many variants (Almond Oil, Orchid Extracts, Milk

Cream, Fruit Extracts, Saffron, Sandalwood Oil, and

Honey to name a few)

Strong sales and distribution network backed by HLL

Strong brand image

Positioning focuses on the attractive beauty segment

Dynamically continuous innovation of the product and

brand rejuvenation – new variants (Aromatic Glow and

Chocolate Seduction and LuxWhite Spa body wash)

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and innovative promotions (22 carat gold coin

promotion – ‘Chance Hai’)

Perceived to have high value for money (strong brand

promotion but relatively lower price which is a winning

combination in the popular segment)

Though it is in popular segment, it is having mass

appeal/market presence across all segments (15% of

the soap market captured by Lux(sales / volume)

Unique advantage of having access to resources and

assets of HLL

Scope of the Study

The geographical scope of the study was restricted to

Mumbai due to time and resource constraints. The study

being exploratory in nature, the sample size was restricted

to 80 consumers (mostly student group) and 20 retailers.

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Focus being mainly on in-depth probing, the generalizations

drawn are only indicative and not conclusive.

Limitations of the Study Response biasness could be one of the limitations.

The sample chosen may not be the true representative of

the whole population.

As the research was exploratory in nature, it was not

possible to study the accurate phenomenon of the fact.

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RESEARH Methodology:

In order to address the above questions an exploratory

study was conducted. The idea was to probe and get deeper

insight into sales promotion scenario of Lux and to tap

perceptions of retailers and consumers. In order to address

above mentioned objectives

(i) Study of secondary sources was carried out,

(ii) Responses of retailers were taken using structured

questionnaire and

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(iii) Structured questionnaire was designed to seek

consumer responses.

Convenience sampling was used for both retailers as well

as consumer studies. Twenty retailers ranging from small

kirana store to big provision stores were approached. All

the retailers were located in South Mumbai Area. The

respondents for consumer study were mostly students and

consumers found as per convenience in the market. The

total respondents were 80 in number. Data analysis is done

using software package like MS-EXCEL.

Abstract:

The origins of personal cleanliness date back to prehistoric

times. Since water is essential for life, the earliest people

lived near water and knew something about its cleansing

properties - at least that it rinsed mud off their hands. A

soap-like material found in clay cylinders during the

excavation of ancient Babylon is evidence that soap making

was known as early as 2800 B.C. Inscriptions on the

cylinders say that fats were boiled with ashes, which is a

method of making soap, but do not refer to the purpose of

the "soap." Such materials were later used as hair styling

aids. Soap got its name, according to an ancient Roman

legend, from Mount Sapo, where animals were sacrificed.

Rain washed a mixture of melted animal fat, or tallow, and

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wood ashes down into the clay soil along the Tiber River.

Women found that this clay mixture made their wash

cleaner with much less effort.

Some of the early instances of commercial

manufacturing of soap are:

In Britain references began to appear in the literature from

about 1000AD, and in 1192 the monk Richard of Devizes

referred to the number of soap makers in Bristol and the

unpleasant smells which their activities produced

A century later soap making was reported in Coventry.

Other early centers of production included York and Hull. In

London a 15th century "sopehouse" was reported in

Bishopsgate, with other sites at Cheapside, where there

existed Soper's Lane (later renamed Queen Street), and by

the Thames at Blackfriars Andrew pears. In 1789, he

commenced production of a transparent soap at a factory in

Wells Street, off Oxford Street and became hugely

successful.

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0 5

1 0 1 5 2 0 2 5 3 0 3 5 4 0

P E R C E N T A G E

P r i c e o ff P r o d u c t B u n d l i n g

C a sh R e f u n d

C r o ss P r o m o t i o n

S C H E M E S

P r i z e s

S a l e s P r o m o t i o n sc h e m e s


DATA ANALYSIS & INTERPRETATION

(1)Sales Promotion Schemes Offered On Beauty

Soap

The primary analysis found that “Price off” is the best sales

promotion schemes offered on Lux(40% of the retailers

35


agreed on this). “Product Bundling” was the next best with

30% of the retailers in favour of the same.

(2)NORMAL DURATION OF SALES PROMOTION

SCHEMES

Theprimary analysis found that “1 month – 3 month” is the

normal accepted duration of sales promotion schemes (60%

of the retailers agreed on this). “More than 3 months” was

the next best with 25% of the retailers in favour of the same

36

0

10

20

30

40

50

15 Days –1 Month

1 Month –3 Month

More than- 3 months

Duration60

60%

25%

15%

F requency of Schemes O ff ered

75%

20 %

5 %

L ess than 3 months

6 months- 1 year

3 - 6 M o n t h s

A f f e c t o n S a l e s

0

2 0

4 0

6 0

8 0

1 0 0

I n c r e a s e in S a le s

C a n t s a y N o E f f e c t

7 5 % S a le s

1 5 % 1 0 %


(3)HOW OFTEN SALES PROMOTION SCHEMES ARE OFFERED

ON BEAUTY SOAP

The primary analysis found that “Less than 3 months” is the

general perceived frequency for sales promotion schemes

offered on Lux(75% of the retailers agreed on this). “3

months – 6 months” was the next best with 20% of the

retailers in favour of the same.

(4)AFFECT ON SALES OF LUXDUE TO SALES

PROMOTION SCHEMES

37


The primary analysis found that sales promotion schemes

offered on Luxcaused an “Increase in sales” (75% of the

retailers agreed on that). “Can’t say” was the next best

opinion with 15% of the retailers in favour of the same.

(5)COMMUNICATION OF SALES PROMOTION

SCHEMES

The primary analysis found that “Wholesalers” were the

best medium of communication of sales promotion schemes

38

0 1 0

2 0 3 0 4 0 5 0 6 0 7 0 8 0

T h r o u g h S a l e s R e p r e s e n t a t i v e

T h r o u g h w h o l e s a l e r s

T h r o u g h P r i n t

M e d i a

T h r o u g h E l e c t r o n i c

M e d i a

M o d e o f c o m m u n i c a t i o n

f o r p r o m o t i o n s c h e m e s

2 5 %

4 5 %

2 0 % 1 0 %

A ff e c t o f S a l e s P r o m o t i o n

0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0

16-25

A g e g r o u p 26-45 46-60

55%

30%

15%


(45% of the retailers agreed on that). “Sales

representatives” was the next best with 25% of the retailers

in favour of the same

(6) LEVEL OF SERVICING DURING SALES PROMOTION - COMPARISION WITH COMPETITOR

The primary analysis found that the level of servicing during

sales promotion vis-à-vis competitors was “Superior and

more frequent (45% of the retailers agreed on that).

“Similar and more frequent” was the next best with 35% of

the retailers in favour of the same.

(8)AFFECT OF SALES PROMOTION SCHEMES ON

DIFFERENT AGE GROUP

The primary analysis

found that “26-45

age group” were the

most affected by

sales promotion

(55% of the retailers

39

S u p e r i o r & m o r e

F r e q u e n t

S i m i l a r & m o r e

F r e q u e n t

I n fe r i o r & m o r e

F r e q u e n t

0

2 0

4 0

6 0

O n e - s t o p s h o p ?

S u p e r i o r & l e s s

F r e q u e n t

4 5 %

3 5 %

1 0 % 1 0 %

H a n d l i n g P r o b l e m S t o c k o u t

0

1 0

2 0

3 0

4 0

5 0

6 0

7 0

I m p r o p e r in f o r m a t i o n

4 5 % 4 5 %

1 0 %

P r o b l e m s F a c e d

0 5

1 0 1 5

2 0

2 5 3 0

3 5 4 0

4 5

C a s h D is c o u n t

G i f t s P r i z e s O t h e r s

5 0

5 5

5 5 %

2 5 %

1 0 %

1 0 %


agreed on that). “16-25 age group” was the next best with

30% of the retailers in favour of the same

(9)PROBLEMS FACED DURING & AFTER SALES

PROMOTION

SCHEMES

The primary analysis

found that “Stock out”

and “Handling problem”

were major problems

faced during and after

sales promotion schemes

(with 45% of the retailers in favour of the same)

(10)INCENTIVES PROVIDED DURING SALES

PROMOTION SCHEME

The primary analysis found that

“Cash discount” is the best

incentive provided during sales

promotion scheme offered on

Lux(55% of the retailers agreed on

that). “Prizes” was the next best

with 25% of the retailers in favour

of the same.

40

T i m i n g C o n v e n i e n c e

0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0

B r a n d v a lu e

P r ic e B e n e f i t s P r o m o t io n a l S c h e m e s

F r a g r a n c e

o f S o a p C o lo u r

o f S o a p P a c k a g in g

W o r d o f

M o u t h A d v e r t is

e m e n t

2 5 % 2 0 % 2 0 %

1 5 % 5 % 5 % 3 % 5 % 2 %


(10)BEST SALES PROMOTION SCHEME

The primary analysis found that “Price off” is the best sales

promotion schemes offered on Lux(55% of the retailers

agreed on that). “Product Bundling” was the next best with

20% of the retailers in favor of the same

CONSUMER’S ANALYSIS

How would you rank following criterion for selecting a

bathing soap?

41

Y e s N o

R e c o m m e n d a t i o n

9 5 %

1 0 %

M e d i u m F o r P r o m o t i o n

0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0

A d v e r t i s i n g S a l e s P r o m o t i o n

P u b l i c R e l a t i o n & P u b l i c i t y

P e r s o n a l S e l l i n g

I n t e r n e t

3 0 % 2 0 %

1 5 %

3 0 %

5 %


What comes into your mind when you think about L:ux?

RECOLLECTION OF ANY ADVERTISEMENT OF

BEAUTY SOAP

MOST EFFECTIVE MEDIUM OF SALES

PROMOTION

42

0

5

1 0

1 5

2 0

2 5

3 0

F r e e T r i a l P r i c e o f f C r o s s P r o m o t i o n D i s c o u n tC o u p o n s

S u p e r i o r N o c h a n g e

0

1 0

2 0

3 0

4 0

5 0

6 0

7 0 P a y m e n t P r e f e r e n c e


The primary analysis found that “Advertising” is the most

effective medium for sales promotion 30% of the consumers

agreed on that). “Sales Promotion” was the next best with

30%(approx) of the consumers in favour of the same.

PREFERENCE OF PROMTIONAL SCHEME

The primary analysis found that “Free Trial” is the most

preferred promotional scheme (30% of the consumers

agreed on that). “Price Off ”, “Discount Coupons”, “Cross

Promotion” was the next best with 20%, 15%, 10% of the

consumers in favour.

43

0

1 0

2 0

3 0

4 0

5 0

6 0

M a k e s y o u s w i t c h t o L u x

B u y i t d u r i n g S a l e s P r o m o t i o n

o f f e r

C o n t i n u e B u y i n g e v e n a f t e r s a l e s

P r o m o t i o n o f f e r i s s c r a p e d

N o C h a n g e

2 0 % 2 0 %

1 0 %

5 0 %


PERCEPTION ABOUT CHANGE IN QUALITY

DURING SALES PROMOTION SCHEME

The primary analysis found that the perception about

change in quality during sales promotion scheme was

“Superior” (70% of the consumers agreed on that). “No

change” was the next best with 20% of the consumers in

favour of the same

TYPE OF IMPACT

The primary

analysis found that

the type of impact

of sales promotion

was No change in

buying

behaviour” with

50% of the

consumers in favour of the same.

44


CONCLUSIONThe findings of the empirical study indicate that unless

the brand to be promoted is in the consideration set of the

consumer, sales promotion by itself is unlikely to have any

major impact. Clearly this shows that managers need to

invest into brand building exercise so that his/her brand

appears in the consideration set of the target consumers.

Only after this should he spend time, money and energy on

sales promotion activities. Sales promotion should not be

used in isolation but need to be integrated with other tools

and in line with the overall positioning of the brand. Also

the importance of the role of mass media came out clearly

45


in both the studies. Companies need to create sufficient

awareness about sales promotion schemes through mass

media in order to create awareness The role of retailer in

influencing consumer in brand choice decision in a toilet

soap category was found to be insignificant which also

supports the above observations. Toilet soaps are low

involvement products characterised by switching behaviors.

Also the person going to the shop for the purchase of soap

is the final decision maker of the brand. Hence it is essential

that companies need to design attractive, striking, visible

POPs for scheme announcements.

SUGGESTIONS & RECOMMENDATIONS

(1) They should provide more promotions like price-offs

and samples.

(2) Retentive strategy required as the soap segment is in

the mature stage of its product life cycle

46


(3) Line extension – probably with more variants catering

to the beauty segment like natural, herbal soap etc.

(4) Liquid body wash is currently in the growth stage –

Luxshould come out with more variants in this segment

(5) Level of servicing is low during sales promotion

schemes – this could be brought up.

(6) It is having only 19.8 % rural market presentation

which could be further enhanced.

BIBLIOGRAPHY

Websites

47


www.google.com

www.lux.com

DEPARTMENT OF BUSINESS MANAGEMENT SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY , SAGAR

QUESTIONAIRE

Researcher's Name : Mr.Rishi Kumar Sen Name of Person : ___________________

Class : B.B.A. Ist Sem Age : _____________________________

48


Gender : Occupation : ________________________

Address :

Q.1 Do you know about Lux ?

a. Yes. b. No.

Q.2. Have you used Lux?

a. Yes. b. No.

Q.3 How Often Sales Promotion Schemes are offered on Lux.

a. 6 months – 1 year b., 3-6 months c. less than 3 months.

Q.4 Affect on Sales of Lux Due to Sales promotion Schemes

a. Increase in Sale b. Can’t Say c. No effect

Q.5 Affect on Sales of Lux due to Sales Promotion Schemes

a. Age 15-25 b. 26-45 c. 45-55

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50

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