LUX :BEAUTY BAR OF FILMSTARS

A STUDY

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 TABLE OF CONTENTS

Executive Summary

1. Objectives of the Study

2. Scope of the Study
3. Limitations of the Study
4. Methodology
5. Abstract
6. Company Background
7. Four P’s
• SWOT Analysis
• Perceptual Mapping
8. Data Analysis
9. Conclusions
10. Recommendations

References
Appendix

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EXECUTIVE SUMMARY

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OBJECTIVES OF STUDY

The main objectives of the study are:

i) To assess the consumer sales promotion schemes offered on Lux.

ii) To get an insight into retailers’ views regarding the schemes being offered on
Lux.

iii) To study consumer perceptions regarding various schemes on Lux and

responses toward them.

1. SCOPE OF THE STUDY

The geographical scope of the study was restricted to the Ghaziabad & Delhi 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. Focus being mainly on in-depth probing, the generalizations drawn are
only indicative and not conclusive.

2. LIMITATIONS OF THE PROJECT

(1) Response biasness could be one of the limitations.

(2) The sample chosen may not be the true representative of the whole
population.
(3) As the research was exploratory in nature, it was not possible to study the
accurate phenomenon of the fact.

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 3. 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
(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 Ghaziabad and Delhi 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 packages like SPSS & MS-EXCEL.

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 4. 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 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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 5. COMPANY BACKGROUND

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 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. Retailers 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.

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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. The reasons for the study were:

i) The widespread use of sales promotions in toilet soap category

ii) Historically, whenever there was a downward trend in growth, sales
promotion activities took the front seat of promotional mix
iii.) 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 LEVER 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, Lux
and 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 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.

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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.

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.

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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,
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,
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.

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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.

MARKET SHARE OF VARIOUS COMPANIES (TOILET SOAPS)

HLL
GODREJ
WIPRO
NIRMA
OTHERS

Price segments of toilet soaps

Segment Price/weight
Premium > Rs. 15 / 75 gms
Popular Rs. 8-15/75 gms
Economy < Rs. 8 /75 gms

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LUX: THE STAR PERFORMER

The great Indian brand wagon started nearly four decades ago. Great brands
sometimes outlast their ambassadors as proven by Lux which is celebrating its
75th anniversary in India.

The first ambassador, Leela Chitnis featured in a Lux advertisement which

flagged off the Lux wagon. She gave way to a galaxy of stars which includes
Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda
Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit,
Sridevi, Aishwarya Rai and Kareena Kapoor. The last frontier for most actors
aspiring to stardom is becoming a Lux ambassador. The brand has outlasted
many soaps. From the beginning, Lux became a household name across the
country. Actor Hema Malini says, “One of the turning points in my career was
when I was signed up by Lux. It was then that I knew I had made my mark in
Indian cinema as a leading lady. To be a Lux star is a much sought after honour
amongst leading ladies and it truly means a lot to me.”

After 50 Indian female actors lathering up with Lux, it is now the turn of a male
actor, Shah Rukh Khan, to say, “Aaj mein aapko batanewala hoon meri
khubsuratein ka raaz — Lux. Ab batayein aapka favourite Lux Star kaun hai? (I
want to tell you about my beauty secret — Lux. Who is your favourite Lux Star?)”
In 1926, Ginger Rogers became the first Hollywood great to appear in a Lux
commercial. The first Lux bar made in India was sold for the princely sum of two
annas in 1934.

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LUX: VARIANTS

In the country since 1929 and endorsed by popular film stars, Lux is the biggest
brand in the soap category. Lux Toilet 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 Lux premium range offers specialized
skincare to its consumers in the form of Lux International. It also includes Lux
Body Wash for superior bathing benefits keeping in step with the changing needs
of the Lux consumer

In addition to these variants lux has come up with a few more variants to
celebrate its 75 years in business.

The Lux Celebration Range is a set of three exclusive variants- Aromatic Glow
and Chocolate Seduction and Lux White Spa body wash containing exotic
ingredients, never seen in the Indian market before.

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LUX : COMPETITOR ANALYSIS

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 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 %.

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Nirma Beauty Soap:

With its market promise to offer “Better Products, Better Value, Better Living,”
Nirma introduced ‘Nirma Beauty Soap’ in the year 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 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 Beauty soap in the premium segment.
Nirma Beauty Soap carried a MRP price tag of Rs 7 and was sold at Rs 6, while
Levers Lux sold for Rs 8. Imitating Levers time-tested strategy, Nirma used
actress Sonali Bendre in its advertising. Today, Nirma Beauty soap sells
whopping 45,000 tonnes, making it the3rd largest soap brand after Lux and
Lifebuoy.

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When Lever made an assault on Nirma Beauty Soap with 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, 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 beauty soap to take on Lever's best
selling brand; Lux. 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.).

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Godrej is among the largest marketer of toilet soaps in the country with leading
brands such as CINTHOL, FAIRGLOW, GODREJ NO 1. Their FAIRGLOW
brand, India's first Fairness soap, has created marketing history as one of the
most successful innovation.

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 Beauty Soap stands 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 FairGlow 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 FairGlow 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.

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Milk & Roses soap

The nourishment of milk and the softness of roses - Milk&Roses gives you
glowing skin that puts even jewellery to shame!
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 feel cared-for and looked-after. The price is Rs.17 for a 100-gm cake.

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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.

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7. FOUR P’s OF LUX

Market

The personal wash market is valued at Rs. 45 billion (Source: ORG-MARG). It is

a highly penetrated market though per capita consumption lags even South Asian
countries like Indonesia. The market has seen stagnant sales over the last four
years and the low entry barriers have led to intense competition between national
and local brands.

Achievements

Lux is the largest personal wash brand in the country with a value share of 17%.
Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux
during the course of a year. This strong association with consumers has led to
Lux becoming one of the most trusted brands in the country.

Lux has retained its leadership status by strongly differentiating itself – no soap
brand can claim to be more aspirational for the Indian consumer than Lux - ‘the
beauty soap of film stars’.

The last three years have seen Lux continue to grow far ahead of the market. It
has gained close to 4% share in this period. A key initiative that has fuelled this
growth has been the launch of Mini Lux – strategically priced at Rs. 5 to bring it
within the reach of 300 million rural consumers. The introduction of new perfume
and ingredient variants, addressing new benefit segments, has been the other
growth driver.

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History

Lux soap was launched in India in 1929. The first bar of Lux was 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 – Lux.
Popularly known as ‘the beauty soap of film stars’, Lux has been a favorite with
generations of users for the experience of sensuous, luxurious bathing.
Since its launch in India, Lux has offered a range of soaps in different colours
and fragrances. They have each, however, offered the same benefit of beautiful
skin. Desirable product sensorials, especially its world class fragrances and
nourishing ingredients, have made the Lux bath a pleasurable experience.
But Lux being the market leader has evolved along with the changing needs of its
consumers. The late 1980s saw the 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, Lux launched a range of premium
soaps to suit their different skin types.

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 The FOUR P’s

(A)Product

A product is anything that can be offered to a market to satisfy a need or

want.Products that are marketed include 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.
LUX is 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.

Unsought Goods: Are those the consumer does not know about or does not
normally think Of buying
LUX and other soaps fall into the category of Convenience Good

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Product Life Cycle

LUX Beauty Bar is in the maturity stage of its life cycle whereas the LUX
Bodywash is in the growth stage.

LUX Body LUX Beauty

Wash Bar

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Product Line

Soaps:

Lux Lux Lux Lux Lux Lux Lux Lux Lux

Almond Orchid Fruit Saffron Sandalwood Rose International Chocolate
Aromatic
Extracts Extracts Oil and Honey
Glow

Bodywashes:

International International
International
Lux Bodywash Lux Bodywash Lux
Bodywash
White Spa Rich Moisture Fresh
Moisture

Shampoos:

Lux Super Lux

Rich Jasmine

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 LUX Beauty Soap- Form, Features, Style

With icons of beauty endorsing the brand, the offerings made by Lux have always
been superior and have always led the market, setting benchmarks for
competition.
Lux has beauty offerings in two of the four market segments – popular and
premium, spanning the needs of varied consumers.
Lux Toilet 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

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changing times it has also launched Lux Body Wash which offers superior
bathing benefits.
To establish the presence of nourishing ingredients in the new Lux, a unique
concept, ‘ingredients you can see in the soap’, 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 luxury 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 Lux International, a premium variant of the toilet soap, launched in 1989,
is differentiated on the basis of its ingredients, the popular version, Lux Beauty
Bar was always projected as a “pure and mild” solution to soft and smooth skin.

International Lux Body Wash – the last name in luxury

It is the next revolution in the realm of personal care. The art of styling skin and
giving it that enviable glow.
The new International Lux Body Wash comes in two rich variants. Rich Moisture
embodies an exotic combination of green apple and orchid extracts. And Fresh
Moisture exudes the tingling freshness of orange peel extracts. To ensure a
complete skin styling experience, with each elegant bottle comes a free loofah.
It is priced at Rs. 90 for 250 ml and Rs. 49 for 150 ml respectively International
Lux Body Wash comes in an exquisitely designed bottle and is available at select
outlets in select cities.

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Trade Character

Labelling

The LUX Trade Character or Logo is present prominently on the package. A

novel metallic substrate packaging showcases the ingredients, and a female
model is shown on the pack. Also diplayed graphically are the key ingredients.
The ingredients, place of manufacture have been listed. Also listed is the
consumer complaint cell address in case of unsatisfactory product.

Packaging

A novel metallic substrate packaging beautifully showcases the ingredients, in

case of the soaps. A female model is shown on the pack. The colors are different
for different variants such as saffron for the saffron variant, pink for the rose
extracts etc.The Bars come in package sizes of 100g, 120g, 150 g

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 The LUX Body Wash comes in an exquisitely designed bottle with
the trade character prominently displayed.

Lux has launched a 45g variant called Mini Lux priced at Rs. 5

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Developing New Variants

The new Lux Beauty Bar is significantly better on all aspects including aesthetics,
sensorials, skin care, value for money, perfume and ingredients.
The company claims that a new initiative behind Lux beauty bar was always in
the offing, market conditions notwithstanding. HLL’s structured innovation
programme was the driving force. This programme, which charts the route for
every HLL brand’s progress, works eight to 12 quarters ahead of the company’s
brands.

For instance, at the time when Lux International with a superior moisturizer was
launched in 1999, the company claims to have been working simultaneously on
Lux Sunscreen which was launched in 2000.

Lux is always a step ahead of trends rather than following the trend. It would
rather orient and direct the change rather than follow it. This flag-bearing
programme according to the company, helped in timing the relaunch.

Also by using brand-oriented research, the company identified two sets of

consumers. One was the loyal base of existing Lux Beauty Bar consumers. The
other was the target segment which would be the source of growth for Lux.

This segment comprised of those customers who were buying soaps in the sub-
popular segment, but could shift upwards if a better product was offered in the
popular segment. A company executive says, “The entire relaunch exercise was
aimed at delivering a superior mix, which would tap into this source of growth.”

32
The consumer needs and triggers which were identified included: fragrance,
quality of lather, long-lasting, value for money product, familiarity and belief were
factors that translated into a sense of reliability and quality. This helped in the
delivery of the new product.

Several options were considered for the Lux relaunch. These included mood-
enhancing perfume positioning. Skin-care based ingredients like glycerin, sandal
and saffron were considered.

The company says that after scanning 60 or 70 options across both national and
international markets almond oil, honey and milk cream were the chosen ones.

With its latest stance, the company is banking on the sub-popular segment soap
buyers to buy into the new Lux. While the target segments remain the SEC B, C
and D, the soap’s performance in its top markets north and west which contribute
to over two-thirds of its sales, will be crucial to its future growth.

Though retailers in Mumbai spell Lux on their list of best sellers, they say that the
honey variant is yet to catch on, as the consumer has never associated with
Lux’s black colour packaging.

33
(B)Promotion

The promotion mix is classified as follows:

• Advertising:

1) Transit
2) Electronic Media
3) Print Media
4) Direct

• Sales Promotion

• Personal Selling

1) Direct Selling
2) Indirect Selling

• Public Relations
• Direct Marketing

34
Advertising

Advertising is any paid form of non-personal presentation and promotion of

ideas, goods and services by an identified sponsor. Ads can be a cost
effective way to disseminate messages, whether to build a brand preference
or to educate people.

LUX ADVERTISEMENTS THROUGH THE AGES

35
LEELA CHITNIS IN THE FIRST LUX PRINT ADVERSTISEMENT FEATURING
AN INDIAN ACTRESS

MADHUBALA IN A LUX PRINT ADVERTISEMENT

WAHEEDA REHMAN IN A LUX PRINT ADVERTISEMENT

36
VYAJANTIMALA IN A LUX PRINT ADVERTISEMENT

SAIRA BANO IN A LUX PRINT ADVERTISEMENT

37
KARISHMA KAPOOR IN A LUX PRINT ADVERTISEMENT: INSET LUX PRINT
ADVERTISEMENT FEATURING BABITA

38
AISHWARYA RAI IN A PRINT ADVERTISEMENT FEATURING LUX
INTERNATIONAL

KAREENA KAPOOR SHOWCASING THE LATEST CHOCOLATE VARIANT

BY LUX

39
Advertisement Analysis

• USP or the common thread through all the advertisements is the Presence of
Movie Stars through the ages.
• The product has been positioned on the basis of REFERANCE GROUP by
using a celebrity popular at that point in time.
• Some amount of attribute positioning by mentioning the various ingredients
has also been done

Lux campaigns have wooed millions of people over the decades. Popularly
known as the beauty soap of film stars, Lux has been an intimate partner of the
brightest stars on the silver screen for decades. An ode to their beauty, an
announcer of their stardom, advertising campaigns on Lux have featured film
stars across the nation, promising their beauty and complexion to ordinary
women.
With top movie stars – from Madhubala to Madhuri, from Babita to Karisma and
Kareena having endorsed the goodness of Lux over generations, it was natural
that the brand has built equity as the best beauty soap in India.

From the beginning Lux, by using a leading film star of the time, has fulfilled the
consumers’ aspirations of using beauty soaps via the rationale ‘if it’s good
enough for a film star, it’s good for me. This later moved into a transformation
role of having a bath with Lux, which transports the user into a fantasy world of
icons, film stars and fairy lands.

40
Change in communication strategy

However, the communication was slowly seen to be losing relevance, as

consumers were beginning to question if the film star actually used the brand.
In addition to this, several competitive beauty soap brands had begun advertising
using similar methods of communication. In this context, the global brand team
for Lux developed a new communication strategy. This strategy – bring out the
star in you – for the first time moved the brand away from the long-running film
star route. The film star still features in the new communication but not as her
gorgeous self but rather as an alter ego/projection of the protagonist (a regular
girl), for a few seconds of the entire ad.

Thus, for the first time the film star was used as a communication device and not
as the main feature of the ad. The move away from the film star and her fantasy
world to a regular Lux user, with the focus on the protagonist’s star quality, is a
change from the norms set by Lux advertising in the past. With the new
communication strategy, the film star is used purely as a communication device
to portray star quality in every Lux user.

This idea – bring out the star in you – puts the consumer at the heart of the
brands’ promise. This promise goes beyond the functional deliverables of soap,
beyond bathing and the bathroom to the world outside. It’s a world where with
Lux on her side, an ordinary woman can impact her world with her own star
quality.

This is a successful attempt to bring the brand closer to its users and to give it a
more youthful and contemporary image.

41
Breaking away from tradition, HLL resorts to a male and metro sexual Shah
Rukh to revive Lux, which turned 75 this year.

CELEBRATING 75 years of the Lux brand, Hindustan Lever has decided to

break away from tradition. It has changed the feminine face of its second largest
selling soap brand to show reigning superstar Shah Rukh Khan sitting in a tub of
petals along with actresses of yesteryear who have already featured as Lux
models. Increasing competition and lack of innovation in the soaps category has
led the FMCG biggie to try out something `new,' which, hopefully, will change the
fortunes of the languishing brand. After intense brainstorming by the company's
brand team and JWT, the ad agency for Lux, Shah Rukh Khan was seen as the
right connect.

Shah Rukh is a big draw and women just love him. The target audience for Lux is
women. Shah Rukh is a great favourite with women of all ages. So the strategy
for Lux has not really changed. It is just the execution that is very different;
instead of a female star in the tub, they have Shah Rukh.
The new campaign featuring King Khan shows him immersed in a bath tub with
petals and talking about `his beauty secrets' (`Meri Sundarta Ka Raaz'). The
beauty soap of female stars has moved from traditionally using reigning film stars
and now has been endorsed by nearly 50 Indian film stars.

42
And it's not about Shah Rukh the star but the kind of person that he is, is what
the Lux brand hopes to integrate into its new campaign. "Instead of showing
Shah Rukh as a macho man riding a horse like the Marlboro man, the idea was
to portray the metro sexual male who had a soft touch. Shah Rukh has been
portrayed as a different kind of male who is different from the rest of the stars.
fraternity who feel the ad could have had a story line and been made
aesthetically more appealing.

Apart from the events and promotions, the new campaign with Shah Rukh is
intended to help in reviving the heritage brand, which has always relied on film
stars for its ads. And it has used male stars in the past in international markets.
So while it is a big departure, it is with a reason. And the ad is not claiming that
SRK is using the brand. He is not shown using the soap. He is merely in a bath
tub surrounded by the Lux stars. So it is a device to inject a bit of novelty and
`buzz value' into an old brand.

To quote the marketing of HLL, one word that comes to mind is mammoth.
Despite constantly declining net profitability, HLL has retained its stronghold as
country‘s biggest advertiser in 2004. The FMCG giant topped the list of India‘s
leading advertisers with a combined TV and press ad spend of Rs.517 crore last
year. In fact HLL upped its spend by 30.5% in ‘04 to Rs.396 crore in ‘03.

Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a

collection of incentive tools, mostly short term, designed to stimulate quicker or
greater purchase of particular products or services by consumers or the trade.
Whereas advertising offers a reason to buy, sales promotion offers an incentive
to buy.

43
Sales promotion includes tools for

CONSUMER PROMOTION

• Samples
• Coupons
• Cash Refund Offers
• Prices Off
• Premiums
• Prizes
• Patronage Rewards
• Free Trials
• Warranties
• Tie in Promotions
• Cross Promotions
• Point Of Purchase Displays
• Demonstrations

TRADE PROMOTION

• Prices Off
• Advertising and display Allowances
• Free Goods

BUSINESS AND SALES-FORCE PROMOTION

• Trade Shows and Conventions

• Contests for Sales Reps
• Specialty Advertising

44
Objectives of sales promotion:

Sales Promotions vary in their specific objectives. Sellers use incentive type
promotions to attract new trials, reward loyal customers, and to increase the
repurchase rates of occasional users. Sales promotions often attract brand
switchers, who are primarily looking for low price, good value, or premiums.
Sales promotions are generally unlikely to turn them into loyal users, although
they may be induced to make subsequent purchases. Sales promotions used
in markets of high brand similarity can produce a high sales response in the
short run but permanent gain in the market share.

In markets of high brand dissimilarity, sales promotions maybe able to alter

market shares permanently. In addition to brand switching, consumers may
engage in stockpiling- purchasing earlier than usual or purchasing extra
quantities. But sales may hit a post promotion dip.

A number of sales promotion benefits flow to the manufacturers and

consumers. Sales promotions enable manufacturers to adjust to short term
variations in supply and demand. They enable manufacturers to test how high
a list price they can charge, because they can always discount it. They induce
consumers to try new products instead of never straying from current ones.
They lead to more varied retail formats, such as everyday-low-price store and
the promotional pricing store. For retailers, promotions may increase sales of
complementary categories as well as induce some store switching by
consumers. They promote greater consumer awareness of prices. They
permit the manufacturers to sell more than they would normally sell at list
prices. They help the manufacturer to adapt programs to different consumer
segments. Consumers themselves enjoy some satisfaction from being smart
shoppers when they take advantage of price specials.

45
 Service marketers also employ sales promotions to achieve marketing
objectives. Some service firms use promotions to attract new customers and
establish loyalty.

Sales Promotion Schemes Used By LUX

• Lux presented 30 gm gold each to the first three winners of the Lux Gold
Star offer from Delhi. According to the promotional offer that Lux unveiled
in October 2000, a consumer finding a 22-carat gold coin in his or her
soap bar got an opportunity to win an additional 30 gm gold. The first 10
callers every week got a 30 gm gold each.
The offercould be availed only on 100 gm and 150 gm packs of Lux soap.

• Lux Star Bano, Aish Karo contest which started on April 16 and went on till
July 15 of 2005. All one needed to do was buy a special promotional pack
of Lux soap. The pack comes with a special scratch card. The 50 lucky
winners and their spouses were flown down to Mumbai to live a day like
Aishwarya Rai would. They could also be given gift vouchers worth Rs

46
 50,000 from Shoppers' Stop along with an exclusively designed Neeta
Lulla sari and a beauty makeover by Michelle Tung, Aishwarya's preferred
designer and stylist. The pièce de résistance was a dinner date with
Aishwarya Rai herself.
The Lux Star Bano, Aish Karo contest aims to drive
the brand proposition — Mujh mein star jagaye —
further. The Lux `Be a Star' promotion is an unique
offering through which LUX brings what stardom
feels like to customers.

• Lux is celebrating 75 year’s of stardom in India and

to kick start the celebration, Lux has launched the Har Star Lucky Star
activity.

Har Star Lucky Star offer is bound to go down in history as the only activity
where every consumer is a winner! All wrappers of Lux have a star printed
inside them. If the consumer finds written inside the star, any number from
“1” to “5”, she will get an equivalent discount (in rupees) on her purchase
from her shopkeeper. If the consumer finds “75 years” written inside the
star, she will get a year’s supply of Lux free, courtesy the beauty stars.

47
Play the supercharged version of the hit puzzle game, Bejeweled.
Create rows of 3 or more identical stones and you could win a trip for
two to a five-star Resort in Goa. You can also win Lux Skincare
Products.

Email:
Name:

Please enter your name and

email to play the game.

• Online Contests

48
 Public Relations:

Not only must the company relate constructively to customers, suppliers and
dealers, it must also relate to a large number of interested publics.A public is any
group that has an actual or potential interest in or impact on a company’s ability
to achieve its objectives. PR involves a variety of programs designed to promote
or protect a company’s image or its individual products.
They perform the following functions:

• Press relations: Presenting news and information about the organization

in the most positive light.
• Product Publicity: Sponsoring efforts to publicize specific products.
• Corporate Communications: Promoting understanding of the
organization through internal and external communications.
• Lobbying: Dealing with legislators and government officials to promote or
defeat legislation and regulation.
• Counselling: Advising management about public issues and company
positions and image during good and bad times

LUX PR Activities

• Watch out Mumbai, Bangalore & Delhi! Guess who is in town to launch the new Lux
Orchid! None other than Kiwi cricket vice captain Chris Cairns who will bowl a maiden
over - well 3 maidens to be precise. Lux Orchid will host the ‘Lux Orchid Nights’ in
Mumbai, Bangalore & New Delhi, where Chris Cairns will look out for and crown the ‘Lux
Orchid Face of the evening’. This is just one of the many activities planned for the launch
of Lux Orchid with exotic orchid petals in Jojoba Oil.

49
• Lux celebrated 75 yrs of existence in a grand way by unveiling Shahrukh
Khan as their latest brand ambassador. Kareena Kapoor, Juhi Chawla,
Sridevi and Hema Malini graced the event and made it special. All the
stars have endorsed Lux in the past. The event was held at the grand
Intercontinental in Mumbai on Friday afternoon.

50
(C)Price

"Price" is pretty self-explanatory but it‘s very important to success. Price

something too high and a company may never sell a single item of it. Price it too
low and one can lose money on every sale once all of costs of doing business
are considered. So you want to price it attractively so that you can sell it to your
clients and they‘ll feel good about the purchase. HLL seems to have mastered
this idea. Prices of HLL are considered the most competitive in Indian market.
With an operating profit of 470 Mn$ and a turnover of 2,190 Mn$, HLL has no
need to look back on the fact that it is a leader. The main fact for this huge
success story is the strategic pricing decision the company has adopted from
time to time.

HLL always gives value for money to his consumers. It is known for its
competitive pricing. HLL has the advantage of quoting a reasonable price due to
its economy of scale. HLL also can quote a very competitive price due to its
superior technology and optimum utilization of inventory. HLL has the product
range that meets the needs of all classes of consumers. It has the products that
are categorized as premium and mass products, which have been described
above. HLL matches its prices with the competitor who is operating
in the same category. HLL also gives price offs on its products to reward
consumers who are using it for a long time and also to attract new consumers.

The LUX Beauty Bars are priced as follows:

100gms: Rs. 13
150gms: Rs. 19

LUX International is priced at

125gm: Rs. 21

51
International Lux Body Wash comes in an exquisitely designed bottle and is
available at select outlets in select cities. It is priced at
Rs. 70 for 250 ml
Rs. 40 for 150 ml

Lux has also introduced the “Mini Lux” that has helped in better penetration of the
rural market. Priced at

45g: Rs. 5

(D)Place

Cutting-edge distribution network

HLL’s distribution network is recognized as one of its key strengths -- that which
helps reach out its products across the length and breadth of this vast country.
The need for a strong distribution network is imperative, since HLL’s corporate
purpose is “to meet the everyday needs of people everywhere.”

At Hindustan Lever Limited, distribution network is one of the key strengths that
help them reach their products across the length and breadth of this vast country.
It has 2000+ suppliers and associates, 45 C&F.A.s, 7,000 stockists and direct
coverage in over 1 million retail outlets across India.
To meet the ever-changing needs of the consumer, HLL has set up a distribution
network that ensures availability of all their products, in all outlets, at all times.
This includes, maintaining favorable trade relations, providing innovative
incentives to retailers and organizing demand generation activities among a host
of other things. HLL boasts of placing a product across the country in less than
72 hrs.

52
The first phase of the HLL distribution network had wholesalers placing bulk
orders directly with the company. Large retailers also placed direct orders, which
comprised almost 30 per cent of the total orders collected.
Today, the goods are transferred from the factory to the company warehouses
(C&F.A godowns) and are sent to the distributor from there on a daily basis.
From the distributor, the stock reaches the market through daily sales. Typically,
these include the salesman registering the order of a retail outlet and delivering
the goods the next day.

Recently HLL has changed its traditional way distribution and came out with a
new strategy of distribution. It‘s because of the change in buying pattern of the
consumer due to more disposable income. There are different channels of
distribution like Modern Trade, which covers all chains of super markets like Food
World, who get the stocks directly from the company. Wholesalers and second
leg of big retail outlets called Super Value stores come under the surveillance of
the distributor along with the mass retail outlets. There is also this new concept in
the HLL distribution channel called Kiosk. Kiosk is a small shop that sells only
sachets and low priced items (below Rs.10/-). Kiosk also does not come under
the surveillance of the distributor.

In addition to the ongoing commitment to the traditional grocery trade, HLL is

building a special relationship with the small but fast emerging modern trade.
HLL's scale enables it to provide superior customer service including daily
servicing, improving their range availability whilst reducing inventories. HLL is
using the opportunity of interfacing more directly with consumers in this retail
environment through specially designed communication and promotions. This is
building traffic into the stores while yielding high growth for the business.

An IT-powered system has been implemented to supply stocks to redistribution

stockists on a continuous replenishment basis. The objective is to catalyse HLL’s
growth by ensuring that the right product is available at the right place in right

53
quantities, in the most cost-effective manner. For this, stockists have been
connected with the company through an Internet-based network, called RSNet,
for online interaction on orders, dispatches, information sharing and monitoring.
RS Net covers about 80% of the company's turnover. Today, the sales system
gets to know every day what HLL stockists have sold to almost a million outlets
across the country. RS Net is part of Project Leap, HLL's end-to-end supply
chain, which also includes a back-end system connecting suppliers, all company
sites and stretching right Upto stockists. RS Net has come as a force multiplier
for HLL Way, the company's action-plan to maximize the number of outlets
reached and to achieve leadership in every outlet, by unshackling the field force
to solely focus on secondary sales from the stockists to retailers and market
activation. HLL Way has also led to implementing best practices in customer
management and common norms and processes across the company. Powered
by the IT tools it has further improved customer service, while ensuring superior
availability and impactful visibility at retail points.

For rural India, HLL has established a single distribution channel by consolidating
categories. In a significant move, with long-term benefits, HLL has mounted an
initiative, Project Streamline, to further increase its rural reach with the help of
rural sub-stockists. It has already appointed 6000 such sub-stockists. As a result,
the distribution network directly covers about 50,000 villages, reaching about 250
million consumers.

Distribution will acquire a further edge with Project Shakti, HLL's partnership with
Self Help Groups of rural women. The project, started in 2001, already covers
over 5000 villages in 52 districts of Andhra Pradesh, Karnataka Madhya Pradesh
and Gujarat, and is being progressively extended. The vision is to reach over
100,000 villages, thereby touching about 100 million consumers. The SHGs have
chosen to adopt distribution of HLL's products as a business venture, armed with
training from HLL and support from government agencies concerned and NGOs.
A typical Shakti entrepreneur conducts business of around Rs.15000 per month,

54
which gives her an income in excess of Rs.1000 per month on a sustainable
basis. As most of these women are from below the poverty line, and live in
extremely small villages (less than 2000 population), this earning is very
significant, and is almost double of their past household income. For HLL, the
project is bringing new villages under direct distribution coverage. Plans are
being drawn up to cover more states, and provide products/services in
agriculture, health, insurance and education. This will both catalyse holistic rural
development and also help the SHGs generate even more income. This model
creates a symbiotic partnership between HLL and its consumers, some of whom
will also draw on the company for their livelihood, and helps build a self-
sustaining virtuous cycle of growth.

SWOT ANALYSIS

SWOT analysis is a basic, straightforward model that provides direction and

serves as a basis for the development of marketing plans. It accomplishes this by
assessing an organizations strengths (what an organization can do) and
weaknesses (what an organization cannot do) in addition to opportunities
(potential favorable conditions for an organization) and threats (potential
unfavorable conditions for an organization). SWOT analysis is an important step
in planning and its value is often underestimated despite the simplicity in
creation. The role of SWOT analysis is to take the information from the
environmental analysis and separate it into internal issues (strengths and
weaknesses) and external issues (opportunities and threats). Once this is
completed, SWOT analysis determines if the information indicates something that
will assist the firm in accomplishing its objectives (a strength or opportunity), or if
it indicates an obstacle that must be overcome or minimized to achieve desired
results (weakness or threat) (Marketing Strategy, 1998).

55
The internal and external situation analysis can produce a large amount of
information, much of which may not be highly relevant. The SWOT analysis can
serve as an interpretative filter to reduce the information to a manageable
quantity of key issues. The SWOT analysis classifies the internal aspects of the
company as strengths or weaknesses and the external situational factors as
opportunities or threats. Strengths can serve as a foundation for building a
competitive advantage, and weaknesses may hinder it. By understanding these
four aspects of its situation, a firm can better leverage its strengths, correct its
weaknesses, capitalize on golden opportunities, and deter potentially devastating
threats.

Internal Analysis - The internal analysis is a comprehensive evaluation of the

internal environment's potential strengths and weaknesses. Factors
should be evaluated across the organization in areas such as:

• Company culture, image

• Organizational structure
• Key staff
• Access to natural resources
• Position on the experience curve
• Operational efficiency, capacity
• Brand awareness
• Market share
• Financial resources
• Exclusive contracts
• Patents and trade secrets

The SWOT analysis summarizes the internal factors of the firm as a list of
strengths and weaknesses.

56
External Analysis - An opportunity is the chance to introduce a new product or
service that can generate superior returns. Opportunities can arise when
changes occur in the external environment. Many of these changes can
be perceived as threats to the market position of existing products and
may necessitate a change in product specifications or the development
of new products in order for the firm to remain competitive. Changes in
the external environment may be related to:

• Customers
• Competitors
• Market trends
• Suppliers
• Partners
• Social changes
• New technology
• Economic / Political environment

The SWOT analysis summarizes the external environmental factors as a list of

opportunities and threats.

SWOT PROFILE OF LUX

STRENGTHS WEAKNESSES
1.Strong Market Research (door to 1.Lux is mainly positioned as beauty
door sampling is done once a year in soap targeted towards women, hence it
Urban and Rural areas) lacks unisex appeal
2.Many variants (Almond Oil, Orchid 2.Usage rate/ wear rate is high and is
Extracts, Milk Cream, Fruit Extracts, generally mushy and soggy
Saffron, Sandalwood Oil, and Honey to 3.Some variants like the sunscreen,

57
name a few) International variant did not do well in
3.Strong sales and distribution network the market
backed by HLL 4.Certain advertisements like the
4.Strong brand image recent one with Shah Rukh Khan
5.Positioning focuses on the attractive resulted in controversial interpretations
beauty segment of the message of the advertisement
6.Dynamically continuous innovation of and lead to some loss of focus (of
the product and brand rejuvenation – message of the advertisements)
new variants (Aromatic Glow and Chocolate 5.Stock out problems - replenishment
Seduction and Lux White Spa body wash) and time is high in semi-urban/rural areas
innovative promotions (22 carat gold
coin promotion – ‘Chance 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 all segments (15% of the soap
market captured by Lux (sales /
volume)
9.Unique advantage of having access
to resources and assets of HLL

OPPORTUNITIES
1.Soap industry growing by 4% in India THREATS
2.Beauty segment’s Compounded 1.New entrants/local competitors/MNCs
Annual Growth Rate (CAGR) is very would increase the competition
high. An indication of this is that Fair (Camay, P&G)
and Lovely’s segment is increasing at a 2.High internal competition – Pears
fast rate - Lux must reinforce its also catering the beauty segment (also

58
presence in the beauty segment from HLL stable)
3.More promotions like price-offs and 3.Excessive dependence on beauty
samples segment makes Lux vulnerable to
4.Retentive strategy required as the changing customer tastes
soap segment is in the mature stage of 4.Technological change makes the
its product life cycle existing products obsolete – Lux should
5.Line extension – probably with more focus on technological innovations like
variants catering to the beauty segment Body Wash
like natural, herbal soap etc
6.Liquid body wash is currently in the
growth stage – Lux should come out
with more variants in this segment
7.Level of servicing is high during sales
promotion schemes – this could be
brought down

59
PERCEPTUAL MAPPING OF BRAND LUX

Perceptual mapping of some important brands

Dov
Mysore e
Sandal
Price
Pear
s

Dettol
Lu
Cinthol x

Sales Nirm
Promotion Breez
a e

60
The above mapping shows that Lux is seen as a brand which promotes its
products in an effective way and has good value for money. None of the other
important brands could match it on promotion as well as value for money
aspects. Although economy brands like Breeze and Nirma scored well on the
value for money aspect, they lagged behind on promotional aspects. Mysore
Sandal soap was seen as a brand which has moderate value for money while it
was left wanting in the promotional aspects. Cinthol and Dettol soaps formed the
middle portion of the map. They were rated as moderate both on promotional as
well as value for money aspects. Although Dove is ranked high on promotional
parameter, it was seen as an expensive proposition. Pears due to its uniqueness
as the only glycerin soap, finds only a certain set of buyers. It ranked low on both
value for money and promotional parameters.

61
 8.DATA ANALYSIS

RETAILER’S ANALYSIS

(1)SALES PROMOTION SCHEMES OFFERED ON LUX

Schemes_
Cash refund
Cross promotion
Price off
Prizes
5.0% Product bundling

10.0%

30.0%

40.0%

15.0%

The primary analysis found that “Price off” is the best sales promotion schemes offered
on Lux (40% of the retailers agreed on this). “Product Bundling” was the next best with
30% of the retailers in favour of the same.

62
(2)NORMAL DURATION OF SALES PROMOTION SCHEMES

Duration
1 month- 3 months
15 days – 1 month
More than 3 months

25.0%

60.0%

15.0%

The primary 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.

63
(3)HOW OFTEN SALES PROMOTION SCHEMES ARE OFFERED ON LUX

Frequency
3 months – 6 months
6 months – 1 year
Less than 3 months

20.0%

5.0%

75.0%

64
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 LUX DUE TO SALES PROMOTION SCHEMES

65
 Affect_on_Sales
Can’t say
Increase in sales
No affect

10.0%
15.0%

75.0%

The primary analysis found that sales promotion schemes offered on Lux caused 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

66
 Communication
Through print media
Through wholesalers
Through electronic
media
Through sales
representatives
15.0%

25.0%

40.0%
20.0%

The primary analysis found that “Wholesalers” were the best medium of communication
of sales promotion schemes (40% of the retailers agreed on that). “Sales
representatives” was the next best with 25% of the retailers in favour of the same

67
(6)LEVEL OF SERVICING DURING SALES PROMOTION - COMPARISION
WITH COMPETITORS

Comparision_with_competitors
Inferior and more
frequent
Similar and more
frequent
Superior and less
frequent
10.0%
Superior and more
frequent

45.0%

35.0%

10.0%

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.

68
(7)AFFECT OF SALES PROMOTION SCHEMES ON DIFFERENT AGE
GROUP

Affect_on_perception_on_age_group
26-45
46 -60
16-25

30.0%

55.0%

15.0%

The primary analysis found that “26-45 age group” were the most affected by sales
promotion (55% of the retailers agreed on that). “16-25 age group” was the next best
with 30% of the retailers in favour of the same

69
(8)PROBLEMS FACED DURING & AFTER SALES PROMOTION SCHEMES

Problems_faced
Handling problem
Stock out
Improper information

10.0%

45.0%

45.0%

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)

70
(9)INCENTIVES PROVIDED DURING SALES PROMOTION SCHEME

Incentives_provided
Cash discount
Gifts
Prizes
Others

10.0%

25.0%

55.0%

10.0%

71
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.

(10)BEST SALES PROMOTION SCHEME

72
 Best_schemes
Cash refund
Price off
Product bundling
Scratch card

10.0%
15.0%

20.0%

55.0%

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

73
(1)MOST PREFFERED CRITERION FOR SOAP SELECTION

Most preffered
criterion
Advertisement
Brand value
Fragrance of soap
2.5% 7.5%
6.25% Price
3.75% Promotional schemes
Benefits
15.0% Color of soap
Packaging
13.75% Word of mouth

10.0%

12.5%

28.75%

The primary analysis found that “Price” is the most preferred criterion for soap (28.75%
of the consumers agreed on that). “Brand Value” was the next best with 15% of the
consumers in favour of the same.

74
(2)PERCEPTION ABOUT LUX

Perception about Lux

Beauty soap
Nothing specific
Soap for all
Soap of filmstars

15.0%

50.0%
23.75%

11.25%

The primary analysis found that the major perception about Lux is that as a “Beauty
Soap” (50% of the consumers agreed on that). “Soap for all” was the next best with
23.75% of the consumers in favour of the same

75
(3)RECOLLECTION OF ANY ADVERTISEMENT OF LUX

Recall of current
advertisement
No
Yes.

8.75%

91.25%

The primary analysis found that advertisement recall of Lux was “Yes” for 91.25% of the
consumers and “No” for 9.75% of the consumers

76
(4)MOST EFFECTIVE MEDIUM OF SALES PROMOTION

Most effective medium

for promotion
Personal selling
Advertising
Sales promotion

10.0%

31.25%

58.75%

The primary analysis found that “Advertising” is the most effective medium for sales
promotion (58.75% of the consumers agreed on that). “Sales Promotion” was the next
best with 31.25% of the consumers in favour of the same.

77
(5)PREFERENCE OF PROMTIONAL SCHEME

Preference of
promotional schemes
Discount coupons
Free trial
Scratch card
6.25% Cash refund
12.5% Cross promotion
3.75%
Price off
6.25% Prizes

13.75%

42.5%

15.0%

78
The primary analysis found that “Price Off” is the most preferred promotional scheme
(42.5% of the consumers agreed on that). “Cross Promotion” was the next best with
15% of the consumers in favour of the same.

(6)PERCEPTION ABOUT CHANGE IN QUALITY DURING SALES

PROMOTION SCHEME

79
 Perception about
change in quality
Superior
No change

6.25%

93.75%

The primary analysis found that the perception about change in quality during sales
promotion scheme was “Superior” (93.75% of the consumers agreed on that). “No
change” was the next best with 6.25% of the consumers in favour of the same

(7)TYPE OF IMPACT

80
 Type of impact
No change in buying
behavior
Buy it during sales
promotion offer
Continue buying even
after sales promotion
13.75% offer is scrapped
Makes you switch to
Lux
26.25%

38.75%

21.25%

The primary analysis found that the type of impact of sales promotion was “Continue
buying even after sales promotion offer is scrapped (38.75% of the consumers agreed
on that). “No change in buying behaviour” was the next best with 26.25% of the
consumers in favour of the same.

81
(8)COMMUNICATION OF SCHEME

Communication of
schemes
Through company’s
stall
Through electronic
media
3.75%
11.25% Through print media
Through sales
representatives

26.25%

58.75%

The primary analysis found that the communication of schemes should be “Through
electronic media” (58.75% of the consumers agreed on that). “Through print media”
was the next best with 26.25% of the consumers in favour of the same

82
(9)PROBLEMS FACED DURING SALES PROMOTION SCHEMES

The primary analysis found that “Stock Out” is the biggest problems faced during sales
promotion schemes (42.5% of the consumers agreed on that). “Any other” was the next
best with 21.25% of the consumers in favour of the same.

(10)COMPARISION WITH COMPETITORS

83
 Comparison with
competitors
Similar and less frequent
Similar and more
frequent
3.75% Superior and less
frequent
Superior and more
frequent

35.0%

48.75%

12.5%

The primary analysis found that Lux’s promotion schemes were “Superior and more
frequent” vis-à-vis its (48.75% of the consumers agreed on that). “Similar and more
frequent” was the next best with 35% of the consumers in favour of the same

84
(11)AFFECT ON AGE GROUP

Affect on age group

Adults
Older people
Youngsters
Adults
6.25% Kids
2.5%

32.5%
56.25%

2.5%

The primary analysis found that “Adults” were the most affected upon by sales
promotion 56.25% of the consumers agreed on that). “Youngsters” was the next best
with 32.5% of the consumers in favour of the same.

85
(12)PRICE OF SOAP

Price
Dissatisfied
Neutral
Satisfied
Very satisfied
7.5% Satisfied

42.5%
32.5%

2.5%
15.0%

The primary analysis found that the customers perceived the price of soap to be
“Satisfactory” (42.5% of the consumers agreed on that). “Neutral” was the next best
with 32.5% of the consumers in favour of the same.

86
(13)DISTRIBUTION NETWORK

Distribution Network
Neutral
Very satisfied
Dissatisfied
Satisfied

21.25%

47.5%

26.25%

5.0%

87
The primary analysis found that the customers perceived the distribution network of soap
to be “Satisfactory” (47.5% of the consumers agreed on that). “Very Satisfied” was the
next best with 26.25% of the consumers in favour of the same

(14)QUALITY

88
 Quality
Neutral
Satisfied
Very satisfied
Dissatisfied
Satisfied

23.75%

47.5%

12.5%

7.5%

8.75%

The primary analysis found that the customers perceived the quality of soap to be
“Satisfactory” (47.5% of the consumers agreed on that). “Neutral” was the next best
with 23.75% of the consumers in favour of the same.

89
(15)ADVERTISING

Advertising
Dissatisfied
Neutral
Satisfied

17.5%

56.25%

26.25%

The primary analysis found that the customers perceived the advertising of soap to be
“Satisfactory” (56.25% of the consumers agreed on that). “Neutral” was the next best
with 26.25% of the consumers in favour of the same

90
(16)PROMOTIONAL SCHEMES

Promotional Schemes
Satisfied
Very satisfied
Dissatisfied
Neutral

21.25%

7.5%

63.75%

7.5%

The primary analysis found that the customers perceived the promotional schemes of
soap to be “Satisfactory” (63.75% of the consumers agreed on that). “Neutral” was the
next best with 21.25% of the consumers in favour of the same.

91
 9.CONCLUSION

The 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 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 behaviour. 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 mattractive, striking, visible POPs for scheme
announcements.

With respect to nature of scheme, the finding suggested that premium (free gift) was
popular with companies. While both retailers and consumers preferred price offs. So it is
necessary that the perceived value of a free gift has to be appealing and high for the target
consumers. Repetitive use of the same premium (soap dish) for a prolonged period may
have negative effect on the loyal customers. When the company is giving its own product
free as premium, it needs to ensure the quality of the product from it as it is likely to
jeopardize the image of both its products.

The findings exhibited that both the retailers and consumers perceived that sales
promotion activities carried out by the companies for increasing sales in short term and

92
clearing excess stocks. What it implies is that companies need to use sales promotion
synergistically and communicate so that they provide value to the target audience and
enhance brand quality/image perceptions.

Companies need to systematise information flow regarding sales promotion activities

particularly at dealer - retailer level. Ensuring proper information flow and devising
checks and measures to reduce misappropriations and implementation flows should be
considered critical aspects for the success of sales promotion activities by the companies.
As retailing is fragmented, direct reach by companies is next to impossible. Through
dealers and proper feedback mechanism, companies keep in touch with the market. From
the study it was found that smaller retailers felt neglected and not enthused to implement
the schemes, particularly when additional handling, stocking, accounting was required on
the part of a retailer without compensatory margins. It can be seen that the retailer and
consumer perceptions matched with respect to preferences of schemes, underlying
motivations and role of mass media. This implies that the retailer would be a rich source
of information about the consumer and the likely response to sales promotion activities.
Developing a system to tap such responses from time to time both at retailer and
consumer level would be helpful for planning future sales promotion activities. In order
to build trust and commitment companies should tap preferences, perceptions of retailers
as well as consumers.

93
 10.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
(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 – Lux should come out with
more variants in this segment
(5) Level of servicing is low during sales promotion schemes – this could be brought up.

94
(6) It is having only 19.8 % rural market presentation which could be further enhanced .

95
 REFERENCES

1. Kotler Phillip, “Marketing Management : Analysis, Planning, Implementation and

Control,” 9 ed., Prentice Hall of India, 1997.
th

2. Strang Roger, “Sales Promotion fast growth faculty management,” Harvard Business
Review, 1976.
3. www.indiainfoline.com
4. www.hll.com

96
 APPENDIX

1. Questionnaires Used

RETAILER’S QUESTIONNAIRE

Name :………………………….. Shop’s Name :………………………………….

Address: ………………………… Contact No.:………………………………….

……………………………………

97
……………………………………..

(1)What are the sales promotion schemes offered on Lux ?

(a)Price off
(b)Discount coupons
(c) Product bundling
(d)Contests
(e)Scratch card
(f)Cross promotion
(g)Cash refund
(h)Prizes
(i)Free trial
(j)Any other

(2)What is the normal duration of the sale promotion scheme offered by Lux?

(a)Less than 15 days

(b)15 days – 1 month
(c)1 month- 3 months
(d)More than 3 months

(3)How often sales promotion schemes are offered on Lux?

(a)Less than 3 months

(b)3 months – 6 months
(c)6 months – 1 year
(d)More than 1 year

(4) Affect on sales of Lux due to sales promotion schemes offered ?

(a) Increase in sales

(b) Decrease in sales
(c ) No affect
(d) Can’t say

98
(5)How is the sales promotion scheme communicated to you?

(a) Through wholesalers

(b) Through sales representatives
(c) Through print media
(d) Through electronic media
(e) Through Manufacturer

(6) Level of servicing during sales promotion?

(a) Very Prompt

(b) Prompt
(b) Moderate
(c) Slow
(d) Very slow

(7) Comparison of sales promotion scheme offered on Lux with competitors?

(a)Superior and more frequent

(b)Superior and less frequent
(c)Similar and more frequent
(d)Similar and less frequent
(e)Inferior and more frequent
(f) Inferior and less frequent

(8) Perception of which age group gets most affected due to sales promotion
schemes offered?

(a) 8-15 yrs

(b) 16-25 yrs
(c) 26-45 yrs
(d) 46 -60 yrs
(e) 60 and above

(9) What are the problems faced during and after the sales promotion
schemes?

(a) Handling problem

(b) Stock out
(c) Improper information

99
 (d) Leftover

(10) What are the incentives provided to you during sales promotion
schemes?

(a) Prizes
(b) Sponsored tour
(c) Gifts
(d) Cash discount
(e) Lucky draw` coupons

(11) Which sales promotion schemes you think is the best for you to handle?

(a)Price off
(b)Discount coupons
(c) Product bundling
(d)Contests
(e)Scratch card
(f)Cross promotion
(g)Cash refund
(h)Prizes
(i)Free trial
(j)Any other

CUSTOMER'S QUESTIONNAIRE

Name : .......................................... Age:.................................

Sex:...............

Address: ............................................. Contact

No:...................................................

............................................................

............................................................

(1)Which brand of bathing soap do you

use ?............................................................................................

100
(2) Is the same brand of soap used by your other family members?
If not , which brand of bathing soap do they
use?......................................................................................

(3) How would you rank following criterion for selecting a bathing soap ?

(a) Color of soap

(b) Fragrance of soap
(c) Brand value
(d) Price
(e) Benefits
(f) Packaging
(g) Word of mouth
(h) Advertisement
(i) Promotional schemes

(4) What comes in to your mind when you think about Lux ?

(a) Soap of filmstars

(b) Beauty soap
(c) Nothing specific

(5) Can you recall any current advertisement of Lux ?

(a)Yes.
(b) No.
(6) Which is the most effective medium for promoting the product?

(a) Advertising
(b) Sales promotion
(c) Public relation & Publicity
(d) Personal selling
(e) Internet

(7) Out of total 100 points, allot the points according to your preference on the
following promotional schemes?

(a) Price off

(b) Discount coupons
(c) Contests
(d) Scratch card

101
 (e) Cross promotion
(f) Cash refund
(g) Prizes
(h) Free trial

(8) Do you perceive any change in quality of Lux during the sales promotion
scheme?

(a) Superior
(b) Inferior
(c) No change

(9) What type of impact does the sales promotion scheme on Lux creates on
you?

(a)Makes you switch to Lux

(b)Buy it during sales promotion offer
(c)Continue buying even after sales promotion offer is scrapped
(d) No change in buying behavior

(10)How is the sales promotion scheme communicated to you?

(f) Through sales representatives

(g) Through print media
(h) Through electronic media
(i) Through company’s stall

(11)What are the problems faced during and after the sales promotion schemes?

(e) Stock out

(f) Improper information
(g) Gifts not received
(h) Coupons not encashed
(i) Any other

102
(12) Comparison of sales promotion scheme offered on Lux with competitors?

(a)Superior and more frequent

(b)Superior and less frequent
(c)Similar and more frequent
(d)Similar and less frequent
(e)Inferior and more frequent
(f) Inferior and less frequent

(13) In your family which age group gets most affected due to sales promotion
schemes offered?

(f) Kids
(g) Youngsters
(h) Adults
(i) Older people

(14) How do you rate Lux on following parameters?

Very satisfied Satisfied Neutral Dissatisfied Very

dissatisfied

(a) Price
(b) Distribution Network
(c) Quality
(d) Advertising
(e) Promotional
Schemes

103
APPENDIX -2

104
105