LUX :BEAUTY BAR OF FILMSTARS A STUDY
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
ii) To get an insight into retailers’ views regarding the schemes being offered on Lux. it was not possible to study the accurate phenomenon of the fact.
2. The study being exploratory in nature. the sample size was restricted to 80 consumers (mostly student group) and 20 retailers. the generalizations drawn are only indicative and not conclusive. SCOPE OF THE STUDY
The geographical scope of the study was restricted to the Ghaziabad & Delhi due to time and resource constraints. LIMITATIONS OF THE PROJECT
(1) Response biasness could be one of the limitations.
1.OBJECTIVES OF STUDY
The main objectives of the study are: i) To assess the consumer sales promotion schemes offered on Lux. Focus being mainly on in-depth probing. (2) The sample chosen may not be the true representative of the whole population. iii) To study consumer perceptions regarding various schemes on Lux and responses toward them.
. (3) As the research was exploratory in nature.
3. The total respondents were 80 in number. In order to address above mentioned objectives (i) Study of secondary sources was carried out. METHODOLOGY
In order to address the above questions an exploratory study was conducted.
. 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. The respondents for consumer study were mostly students and consumers found as per convenience in the market. All the retailers were located in Ghaziabad and Delhi area. Data analysis is done using software packages like SPSS & MS-EXCEL. The idea was to probe and get deeper insight into sales promotion scenario of Lux and to tap perceptions of retailers and consumers. (ii) Responses of retailers were taken using structured questionnaire and (iii) Structured questionnaire was designed to seek consumer responses.
the earliest people lived near water and knew something about its cleansing properties . where there existed Soper's Lane (later renamed Queen Street). 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. Since water is essential for life. with other sites at Cheapside. Some of the early instances of commercial manufacturing of soap are: In Britain references began to appear in the literature from about 1000AD. and by the Thames at Blackfriars Andrew pears. he commenced production of a transparent soap at a factory in Wells Street. 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. Women found that this clay mixture made their wash cleaner with much less effort.
. which is a method of making soap. and wood ashes down into the clay soil along the Tiber River. according to an ancient Roman legend. where animals were sacrificed. Inscriptions on the cylinders say that fats were boiled with ashes.4.C. Rain washed a mixture of melted animal fat. ABSTRACT
The origins of personal cleanliness date back to prehistoric times. from Mount Sapo. In London a 15th century "sopehouse" was reported in Bishopsgate. but do not refer to the purpose of the "soap. off Oxford Street and became hugely successful. or tallow. Soap got its name.at least that it rinsed mud off their hands." Such materials were later used as hair styling aids. In 1789. Other early centers of production included York and Hull.
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. COMPANY BACKGROUND
Understanding perceptions of channel members and consumers regarding sales promotion activities enhances the effectiveness of these activities. the findings of consumer perceptions indicated that price off was the most preferred type of sales promotion. followed by price offs. premiums (free gifts) were found to be the most frequently used in both premium and popular toilet soap category.
. an attempt has been made to examine the nature of sales promotion activities in toilet soap category in India. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. In line with the retailers’ perceptions. 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. As the retailer interacts and observes consumers more frequently and closely than the manufacturer. In this paper.5. 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. it would be useful for the companies to incorporate perceptions while planning sales promotion strategies. Retailers perceived price offs to have relatively greater impact compared to any other forms of sales promotion.
HLL offered 10% of its equity to the Indian public. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. Unilever set up its first Indian subsidiary. Unilever now holds 51. followed Lifebuoy in 1895 and other famous brands like Pears. Soon after. whenever there was a downward trend in growth. visitors to the Kolkata harbor noticed crates full of Sunlight soap bars. The rest of the shareholding is distributed among about 380.000 individual shareholders and financial institutions. With it began an era of marketing branded Fast Moving Consumer Goods(FMCG). 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.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. Lux and Vim.55% equity in the company. being the first among the foreign subsidiaries to do so.
HINDUSTAN LEVER LIMITED
In the summer of 1888.) The widespread use of sales promotions in toilet soap category Historically. Hindustan Vanaspati Manufacturing Company. embossed with the words "Made in England by Lever Brothers".
. These three companies merged to form HLL in November 1956.In 1931. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). The reasons for the study were: i) ii) iii.
Pond's (India) Limited had been present in India since 1947. In 1912. Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. In 1995. 1993. effective from April 1. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. acquisitions and mergers. HLL has vigorously responded to the stimulus of economic growth. By 1903. clearly marked an inflexion in HLL's and the Group's growth curve. India Limited was formed.The erstwhile Brooke Bond's presence in India dates back to 1900. Brooke Bond & Co. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Lakme Lever Limited. HLL and yet another Tata company. Since the very early years. always in line with Indian opinions and aspirations. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Simultaneously. The liberalization of the Indian economy. the company had launched Red Label tea in the country. the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL. deregulation permitted alliances. without any constraints on production capacity.
. The growth process has been accompanied by judicious diversification. Lakme Limited. started in 1991. In one of the most visible and talked about events of India's corporate history. formed a 50:50 joint venture. Subsequently in 1998.
By the end of the year. Then in July 1993. with effect from January 1. The two companies had significant overlaps in Personal Products. The amalgamation was done to ensure for the Group. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998. Specialty Chemicals and Exports businesses. two plantation companies of Unilever. Tea Estates and Doom Dooma. were merged with Brooke Bond. As a measure of backward integration.HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994 . Finally. enabling greater focus and ensuring synergy in the traditional Beverages business. Nepal Lever Limited (NLL).Kimberly-Clark Lever Ltd. besides a common distribution system since 1993 for Personal Products. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. with significant interests in Instant Coffee.
. In 1992. The NLL factory manufactures HLL's products like Soaps. and its factory represents the largest manufacturing investment in the Himalayan kingdom. acquisitions and alliances on the Foods and Beverages front. In 1993. HLL has also set up a subsidiary in Nepal. The 1990s also witnessed a string of crucial mergers. 1996. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. Detergents and Personal Products both for the domestic market and exports to India. it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. The two also had a common management pool and a technology base. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). BBLIL merged with HLL. 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. which markets Huggies Diapers and Kotex Sanitary Pads. the erstwhile Brooke Bond acquired Kothari General Foods.
HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies. 8 /75 gms
. In 2003. HLL acquired the government's remaining stake in Modern Foods. in a historic step.In January 2000. the government decided to award 74 per cent equity in Modern Foods to HLL. 15 / 75 gms Rs. In 2002. HLL's entry into Bread is a strategic extension of the company's wheat business. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. 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 Premium Popular Economy Price/weight > Rs. 8-15/75 gms < Rs.
Nargis. From the beginning. Sharmila Tagore. To be a Lux star is a much sought after honour amongst leading ladies and it truly means a lot to me. Zeenat Amaan.LUX: THE STAR PERFORMER
The great Indian brand wagon started nearly four decades ago. Waheeda Rehman. Actor Hema Malini says. The first Lux bar made in India was sold for the princely sum of two annas in 1934. Meena Kumari. Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. Great brands sometimes outlast their ambassadors as proven by Lux which is celebrating its 75th anniversary in India. Aishwarya Rai and Kareena Kapoor. “Aaj mein aapko batanewala hoon meri khubsuratein ka raaz — Lux. Who is your favourite Lux Star?)” In 1926. It was then that I knew I had made my mark in Indian cinema as a leading lady. to say. She gave way to a galaxy of stars which includes Madhubala. The first ambassador. The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. Juhi Chawla. “One of the turning points in my career was when I was signed up by Lux.” After 50 Indian female actors lathering up with Lux. The brand has outlasted many soaps.
. Sridevi. Ab batayein aapka favourite Lux Star kaun hai? (I want to tell you about my beauty secret — Lux. Madhuri Dixit. it is now the turn of a male actor. Ginger Rogers became the first Hollywood great to appear in a Lux commercial. Shah Rukh Khan. Hema Malini. Mala Sinha. Saira Banu. Lux became a household name across the country.
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. Orchid Extracts.LUX: VARIANTS
In the country since 1929 and endorsed by popular film stars.
.Aromatic Glow and Chocolate Seduction and Lux White Spa body wash containing exotic ingredients. Lux is the biggest brand in the soap category. Milk Cream. Saffron. Fruit Extracts. Lux Toilet Soap. The Lux premium range offers specialized skincare to its consumers in the form of Lux International. offers its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients –Almond Oil. never seen in the Indian market before. Sandalwood Oil and Honey. in the popular segment.
Nirma Bath has generated larger volumes each year.
Nirma Bath Soap: Toilet soap market in India was dominated by a very few MNC’s which could monopolistically price their product. Nirma has been challenging the hegemony of Hindustan Lever. Nirma has so far managed to snatch 9 per cent share of market. this soap has a Total Fatty Matter (TFM) of 60 %. which holds over 54 per cent share of the toilet soaps market. which is a carbolic (Red) soap. Packed in a red color wrapper and available in 75 gram and 150 gram pack sizes.
. Nirma entered this market with the launch of ‘Nirma Bath Soap’. Nirma had invested in the latest soap manufacturing plant in the world the first of its kind in India. Almost as an answer to the general perception of low quality. In 1992. 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. Although the carbolic soap segment is on decline. sensing a strong need to expand the market through Penetrative Pricing.LUX : COMPETITOR ANALYSIS
NIRMA Nirma Since the early nineties. While leading manufacturers like HLL and Godrej continue to rely on batch manufacturing.
The product launch of Nirma Lime Fresh had been extremely successful. which is printed on the world’s best Cerruti 8-colour printing machine. Packed in a poly coated 75 gm carton. this soap is available in green colour. Better Value. when it was launched in 1997. Available in three different variants and pack sizes. this brand. 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. (as featured in The Strategist Quarterly. With a lime aroma that tingles in one’s sensory buds for a long time. as ranked by the Business Standard Marketing Derby. 1998. within a short span of five years. this soap has a TFM content of 70%. Seventeen million packs of Nirma Lime Fresh soap were sold in the very first month of its soft launch.
. this soap contains 80% TFM.” Nirma introduced ‘Nirma Beauty Soap’ in the year 1992. Due to its admirable perfume and a higher TFM content. being ranked as the Seventh Most Successful Brand Launch for the year 1998. July-September 1998). Better Living.Nirma Beauty Soap: With its market promise to offer “Better Products.
Jasmine. Nima Rose soap has got an exceptionally soft rose fragrance – which remains around body for a long time even after bath. Imitating Levers time-tested strategy. making it the3rd largest soap brand after Lux and Lifebuoy. The company has expanding into other segments of the fragmented five lakh tonne soap market. This toilet soap has 80% TFM content. It is available in 100g and 150g pack sizes. Over the period. Indian toilet soap market has fragmented & has seen emergence of prominent floral fragrance segments as Sandal. Rose. Nirma Beauty soap sells whopping 45.
. Nirma Beauty Soap carried a MRP price tag of Rs 7 and was sold at Rs 6.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 Sandal. It launched Nirma Beauty soap in the premium segment. 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. while Levers Lux sold for Rs 8.000 tonnes. It is a premium product from Nima stable and is available in 100g and 150g packs. with rich & exotic fragrance. Nima Sandal is a one of such product in floral segment. etc. It promises benefits of Sandal oil & Turmeric powder. Nirma used actress Sonali Bendre in its advertising. Today.
but while Liril sold for Rs 12. Nima Lime.P. Breaking away from tradition.50.50 and a total fatty matter (TFM) content of 70 per cent. The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M. in the key markets of Gujarat and Maharashtra. the Patels quickly hit back at Levers freshness plank. Nirma Lime Fresh.
Godrej Consumer Products Ltd. Lux.T.(GCPL) is a major player in the Indian FMCG market with leadership in personal.) Guwahati (Assam) and Silvassa (U. household and fabric care segments.).
. Nirma Lime Fresh was positioned against Levers Liril Lime Fresh. Nirma introduced a new soap brand.When Lever made an assault on Nirma Beauty Soap with its Breeze. 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. This is Nirma's fourth brand launch in the toilet soaps market. With a wrapper price of Rs 6. Nima Lime Fresh was aimed at the popular segment of 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. Nirma Lime Fresh sold for Rs 8. Nirma followed it up with Nirma Premium. hair.
8% in FY 200304. India's first Fairness soap.
Fairglow The Godrej FairGlow fairness soap contains a powerful fairness ingredient ' Natural Oxy-G '. Once the archrival of HLL. specially formulated to cater to special skin types. Their FAIRGLOW brand. Market share in Toilet soaps grows to 8. Godrej No.1 is available in five variants enriched with natural ingredients.0% in FY 2004-05 from 6.Godrej is among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL.
Godrej No. GCPL is a relatively small player compared to HLL. However.1 Godrej No. has created marketing history as one of the most successful innovation. Jasmine. in toilet soaps. which makes you fairer by reducing the dark melanin without changing the skin's natural balance. it now occupies the number three rank. Rose. Sandal.
. All three Power brands have begun to perform strongly. In addition. it also removes blemishes to give you a clear. Natural and Ayurvedic packed with the goodness of natural ingredients. with a market share of around 8 per cent. after HLL (54% market share) and Nirma (9% market share). FAIRGLOW. GODREJ NO 1. glowing complexion.1 Beauty Soap stands for True Natural Beauty.
Cinthol lime fresh
With the extracts of real lime. Wipro Consumer Care promises moving into top gear. It is a quality Grade 1 fairness product having 76% TFM (Total Fatty Matter).
Wipro Consumer Care is yet another principal player enjoying a five per cent market share. With TFM 76% this Grade1 soap is available in 50g. Cinthol Lime Fresh provides deep cleansing along with active freshness and vitality. 75g and 125g. After lying dormant for a decade. This makes for an invigorating bath that kick starts and gets you ready for the day. simply through a daily bath.Godrej FairGlow Soap was India's first and is the largest selling fairness soap. Wipro has three important brands of soap in its portfolio: Santoor. Milk and Roses. The soap has an excellent long-lasting lime fragrance that keeps you feeling fresh throughout the day. Chandrika. 19
. It helps you become fairer in a convenient way. It has a pleasant fragrance and is white in colour.
This.a sandal and besan variant. Santoor's market share is around three per cent. the company took a conscious decision to follow a state-oriented strategy your skin with Sandal and Turmeric to
Santoor Chandan A premium soap manufactured with extracts of Sandalwood oil. Around this time. as the first round of revival began. an outcome of limited resources. Santoor Chandan has a strong lingering fragrance and is a favourite of discerning customers.Santoor soap The magic of Sandal & Turmeric comes together in Santoor . Wipro later introduced a new variant of Santoor . the company argues. The new variant offered the combined benefits of sandal and besan.
. happened around mid-1990s. But its low market share.a soap that nourishes make you look much younger. Santoor offered a combination of sandal and turmeric. has to be seen in the context of its regional presence.
sports contemporary packaging. The price is Rs.
Colgate-Palmolive (India) Ltd. a new shape and has many new additions to the host of Ayurvedic ingredients it is made of. It is available in two variants – ‘Relaxing’ and ‘Soothing’. essential oils and a mixture of premium natural herbs and flowers. the 65-year-old brand. Palmolive has been the pioneer in introducing soaps for different skin types (example Palmolive Extra Care for Dry Skin. Chandrika. the floral fragrance is aimed at making the user feel cared-for and looked-after.
Chandrika The world’s first Ayurvedic soap brings you the goodness of nature to give you healthy and glowing skin. . for Oily Skin and for Normal Skin). Its latest range is a combination of moisturizing glycerin.17 for a 100-gm cake. Long-lasting and refreshing.Milk&Roses gives you glowing skin that puts even jewellery to shame! Available in milky white and glowing pink.the marketer of personal care products. now marketed by Wipro Consumer Care and Lighting.
.Milk & Roses soap The nourishment of milk and the softness of roses . offers ‘ultra modern’ line of Transparent Palmolive Natural skincare soaps.
a niche player in the Indian soap market owns the well known brand ‘Dettol’.
. It had launched a new product . making it easy to hold. The soap has a pleasant new fragrance and a convenient saddle shape. A 75 g bar is priced at Rs.Reckitt Benckiser .Dettol Extra Soap. It has a formulation that provides Dettol protection and also contains moisturizes that prevent skin dryness. The Dettol Extra Soap is an extension of the company's existing range of soaps under Dettol brand.15.
The introduction of new perfume and ingredient variants. A key initiative that has fuelled this growth has been the launch of Mini Lux – strategically priced at Rs. The last three years have seen Lux continue to grow far ahead of the market. FOUR P’s OF LUX
The personal wash market is valued at Rs. 45 billion (Source: ORG-MARG). This strong association with consumers has led to Lux becoming one of the most trusted brands in the country.‘the beauty soap of film stars’. It has gained close to 4% share in this period. Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux during the course of a year. 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 . has been the other growth driver.
Lux is the largest personal wash brand in the country with a value share of 17%. 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. 5 to bring it within the reach of 300 million rural consumers. It is a highly penetrated market though per capita consumption lags even South Asian countries like Indonesia.7.
. addressing new benefit segments.
Lux has offered a range of soaps in different colours and fragrances. From the very first advertisement in 1929 featuring Leela Chitnis. especially its world class fragrances and nourishing ingredients. however. But Lux being the market leader has evolved along with the changing needs of its consumers.History
Lux soap was launched in India in 1929. 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. Lux has been a favorite with generations of users for the experience of sensuous. The first bar of Lux was made in India and sold for a princely sum of two annas in 1934. offered the same benefit of beautiful skin. Lux launched a range of premium soaps to suit their different skin types. have made the Lux bath a pleasurable experience. to tap into this segment. Popularly known as ‘the beauty soap of film stars’.
. the gorgeous faces of the silver screen have come out in the open with their beauty secret – Lux. They have each. In 1989. Desirable product sensorials. Since its launch in India. luxurious bathing.
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. tangibility.
Marketers have traditionally classified products on the basis of characteristics: durability. Shopping Goods: Are goods that the consumer.The FOUR P’s
A product is anything that can be offered to a market to satisfy a need or want. in the process of selection and purchase characteristically compares on the bases of suitability. immediately and with a minimum of effort.Products that are marketed include physical goods. LUX is a Tangible. experiences. price and style. properties. organizations. persons. events. information and ideas. quality. places. services. 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 25
. Specialty Goods: Have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. and use.
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 Wash
LUX Beauty Bar
Almond Orchid Fruit Saffron Sandalwood Rose International Chocolate Aromatic Extracts Extracts Glow Oil and Honey
International International Lux Bodywash Bodywash White Spa Moisture
International Lux Bodywash Rich Moisture Lux Fresh
Lux Super Rich
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
And Fresh Moisture exudes the tingling freshness of orange peel extracts. is differentiated on the basis of its ingredients. Though Lux International. To establish the presence of nourishing ingredients in the new Lux. Rich Moisture embodies an exotic combination of green apple and orchid extracts. with the active ingredients of rose extracts.
. It is priced at Rs. These create an experience in pampering indulgence and luxury designed to bring out the star in every woman. The new International Lux Body Wash comes in two rich variants. Lux Beauty Bar was always projected as a “pure and mild” solution to soft and smooth skin. ‘ingredients you can see in the soap’. sandal saffron. almond oil and fruit extracts. with each elegant bottle comes a free loofah. was born. launched in 1989. 90 for 250 ml and Rs.changing times it has also launched Lux Body Wash which offers superior bathing benefits. a premium variant of the toilet soap. The art of styling skin and giving it that enviable glow. 49 for 150 ml respectively International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. International Lux Body Wash – the last name in luxury It is the next revolution in the realm of personal care. a unique concept. A novel metallic substrate packaging beautifully showcased the ingredients and its globally accepted ingredient-linked perfumes heightened the sensorial experience. 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. the popular version. To ensure a complete skin styling experience. Each of the soaps in the range has milk cream.
A female model is shown on the pack. place of manufacture have been listed. 120g. pink for the rose extracts etc.Trade Character
The LUX Trade Character or Logo is present prominently on the package. The ingredients.
A novel metallic substrate packaging beautifully showcases the ingredients. Also listed is the consumer complaint cell address in case of unsatisfactory product. A novel metallic substrate packaging showcases the ingredients. 150 g
. in case of the soaps.The Bars come in package sizes of 100g. The colors are different for different variants such as saffron for the saffron variant. Also diplayed graphically are the key ingredients. and a female model is shown on the pack.
Lux has launched a 45g variant called Mini Lux priced at Rs.The LUX Body Wash comes in an exquisitely designed bottle with the trade character prominently displayed.
skin care. Lux is always a step ahead of trends rather than following the trend. This flag-bearing programme according to the company. “The entire relaunch exercise was aimed at delivering a superior mix. value for money. works eight to 12 quarters ahead of the company’s brands. perfume and ingredients. The company claims that a new initiative behind Lux beauty bar was always in the offing. This programme. but could shift upwards if a better product was offered in the popular segment.Developing New Variants
The new Lux Beauty Bar is significantly better on all aspects including aesthetics. One was the loyal base of existing Lux Beauty Bar consumers. This segment comprised of those customers who were buying soaps in the subpopular segment. Also by using brand-oriented research.”
. For instance. A company executive says. HLL’s structured innovation programme was the driving force. helped in timing the relaunch. the company claims to have been working simultaneously on Lux Sunscreen which was launched in 2000. the company identified two sets of consumers. which charts the route for every HLL brand’s progress. It would rather orient and direct the change rather than follow it. market conditions notwithstanding. sensorials. at the time when Lux International with a superior moisturizer was launched in 1999. The other was the target segment which would be the source of growth for Lux. which would tap into this source of growth.
as the consumer has never associated with Lux’s black colour packaging. Skin-care based ingredients like glycerin. familiarity and belief were factors that translated into a sense of reliability and quality. Though retailers in Mumbai spell Lux on their list of best sellers. honey and milk cream were the chosen ones.The consumer needs and triggers which were identified included: fragrance. value for money product.
. This helped in the delivery of the new product. C and D. Several options were considered for the Lux relaunch. 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. long-lasting. The company says that after scanning 60 or 70 options across both national and international markets almond oil. quality of lather. will be crucial to its future growth. the soap’s performance in its top markets north and west which contribute to over two-thirds of its sales. sandal and saffron were considered. they say that the honey variant is yet to catch on. With its latest stance. These included moodenhancing perfume positioning.
The promotion mix is classified as follows:
1) Transit 2) Electronic Media 3) Print Media 4) Direct
• Sales Promotion • Personal Selling
1) Direct Selling 2) Indirect Selling
• Public Relations • Direct Marketing
Ads can be a cost effective way to disseminate messages.Advertising
Advertising is any paid form of non-personal presentation and promotion of ideas. goods and services by an identified sponsor.
LUX ADVERTISEMENTS THROUGH THE AGES
. whether to build a brand preference or to educate people.
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
VYAJANTIMALA IN A LUX PRINT ADVERTISEMENT
SAIRA BANO IN A LUX PRINT ADVERTISEMENT
KARISHMA KAPOOR IN A LUX PRINT ADVERTISEMENT: INSET LUX PRINT ADVERTISEMENT FEATURING BABITA
AISHWARYA RAI IN A PRINT ADVERTISEMENT FEATURING LUX INTERNATIONAL
KAREENA KAPOOR SHOWCASING THE LATEST CHOCOLATE VARIANT BY LUX
film stars and fairy lands. Lux has been an intimate partner of the brightest stars on the silver screen for decades. promising their beauty and complexion to ordinary women. it’s good for me. which transports the user into a fantasy world of icons. advertising campaigns on Lux have featured film stars across the nation. Some amount of attribute positioning by mentioning the various ingredients has also been done
Lux campaigns have wooed millions of people over the decades. From the beginning Lux. The product has been positioned on the basis of REFERANCE GROUP by using a celebrity popular at that point in time.Advertisement Analysis
• • •
USP or the common thread through all the advertisements is the Presence of Movie Stars through the ages. has fulfilled the consumers’ aspirations of using beauty soaps via the rationale ‘if it’s good enough for a film star. it was natural that the brand has built equity as the best beauty soap in India. With top movie stars – from Madhubala to Madhuri. An ode to their beauty. Popularly known as the beauty soap of film stars.
. from Babita to Karisma and Kareena having endorsed the goodness of Lux over generations. by using a leading film star of the time. This later moved into a transformation role of having a bath with Lux. an announcer of their stardom.
Change in communication strategy However. the communication was slowly seen to be losing relevance. It’s a world where with Lux on her side. Thus. This idea – bring out the star in you – puts the consumer at the heart of the brands’ promise. 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.
. In addition to this. This is a successful attempt to bring the brand closer to its users and to give it a more youthful and contemporary image. for a few seconds of the entire ad. with the focus on the protagonist’s star quality. 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). This promise goes beyond the functional deliverables of soap. With the new communication strategy. several competitive beauty soap brands had begun advertising using similar methods of communication. an ordinary woman can impact her world with her own star quality. as consumers were beginning to question if the film star actually used the brand. is a change from the norms set by Lux advertising in the past. the film star is used purely as a communication device to portray star quality in every Lux user. the global brand team for Lux developed a new communication strategy. In this context. This strategy – bring out the star in you – for the first time moved the brand away from the long-running film star route. beyond bathing and the bathroom to the world outside.
Shah Rukh is a big draw and women just love him.
CELEBRATING 75 years of the Lux brand. 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'). HLL resorts to a male and metro sexual Shah Rukh to revive Lux. instead of a female star in the tub. will change the fortunes of the languishing brand. After intense brainstorming by the company's brand team and JWT.Breaking away from tradition.' which. Increasing competition and lack of innovation in the soaps category has led the FMCG biggie to try out something `new. hopefully. the ad agency for Lux. Hindustan Lever has decided to break away from tradition. 42
. 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. It is just the execution that is very different. Shah Rukh Khan was seen as the right connect. So the strategy for Lux has not really changed. which turned 75 this year. Shah Rukh is a great favourite with women of all ages. The target audience for Lux is women. they have Shah Rukh. 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.
the idea was to portray the metro sexual male who had a soft touch. And the ad is not claiming that SRK is using the brand. And it has used male stars in the past in international markets.5% in ‘04 to Rs. "Instead of showing Shah Rukh as a macho man riding a horse like the Marlboro man. Shah Rukh has been portrayed as a different kind of male who is different from the rest of the stars. the new campaign with Shah Rukh is intended to help in reviving the heritage brand. sales promotion offers an incentive to buy. 43
. In fact HLL upped its spend by 30. To quote the marketing of HLL.And it's not about Shah Rukh the star but the kind of person that he is. The FMCG giant topped the list of India‘s leading advertisers with a combined TV and press ad spend of Rs. He is merely in a bath tub surrounded by the Lux stars. designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. a key ingredient in marketing campaigns. He is not shown using the soap. mostly short term. fraternity who feel the ad could have had a story line and been made aesthetically more appealing.
Apart from the events and promotions.517 crore last year. it is with a reason.
Sales promotion. consists of a collection of incentive tools. HLL has retained its stronghold as country‘s biggest advertiser in 2004. is what the Lux brand hopes to integrate into its new campaign. So while it is a big departure. So it is a device to inject a bit of novelty and `buzz value' into an old brand. Whereas advertising offers a reason to buy.396 crore in ‘03. which has always relied on film stars for its ads. one word that comes to mind is mammoth. Despite constantly declining net profitability.
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
consumers may engage in stockpiling. For retailers. They enable manufacturers to test how high a list price they can charge. and to increase the repurchase rates of occasional users. Sales promotions enable manufacturers to adjust to short term variations in supply and demand.Objectives of sales promotion:
Sales Promotions vary in their specific objectives. Sellers use incentive type promotions to attract new trials.purchasing earlier than usual or purchasing extra quantities. 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. who are primarily looking for low price.
. or premiums. although they may be induced to make subsequent purchases. They promote greater consumer awareness of prices. Sales promotions often attract brand switchers. good value. because they can always discount it. Sales promotions are generally unlikely to turn them into loyal users. promotions may increase sales of complementary categories as well as induce some store switching by consumers. They help the manufacturer to adapt programs to different consumer segments. sales promotions maybe able to alter market shares permanently. They permit the manufacturers to sell more than they would normally sell at list prices. reward loyal customers. In addition to brand switching. such as everyday-low-price store and the promotional pricing store. In markets of high brand dissimilarity. A number of sales promotion benefits flow to the manufacturers and consumers. Consumers themselves enjoy some satisfaction from being smart shoppers when they take advantage of price specials. But sales may hit a post promotion dip. They lead to more varied retail formats. They induce consumers to try new products instead of never straying from current ones.
a consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win an additional 30 gm gold.Service marketers also employ sales promotions to achieve marketing objectives. Aish Karo contest which started on April 16 and went on till July 15 of 2005. The offercould be availed only on 100 gm and 150 gm packs of Lux soap. The first 10 callers every week got a 30 gm gold each. The 50 lucky winners and their spouses were flown down to Mumbai to live a day like Aishwarya Rai would. All one needed to do was buy a special promotional pack of Lux soap. The pack comes with a special scratch card. Some service firms use promotions to attract new customers and establish loyalty.
Lux Star Bano. According to the promotional offer that Lux unveiled in October 2000.
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. They could also be given gift vouchers worth Rs
The Lux Star Bano. courtesy the beauty stars. 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. The Lux `Be a Star' promotion is an unique offering through which LUX brings what stardom feels like to customers. The pièce de résistance was a dinner date with Aishwarya Rai herself.50. she will get an equivalent discount (in rupees) on her purchase from her shopkeeper.000 from Shoppers' Stop along with an exclusively designed Neeta Lulla sari and a beauty makeover by Michelle Tung. Aish Karo contest aims to drive the brand proposition — Mujh mein star jagaye — further. If the consumer finds “75 years” written inside the star. she will get a year’s supply of Lux free. • Lux is celebrating 75 year’s of stardom in India and to kick start the celebration. Aishwarya's preferred designer and stylist.
. Lux has launched the Har Star Lucky Star activity. any number from “1” to “5”.
Play the supercharged version of the hit puzzle game.
Please enter your name and email to play the game.
. 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. Bejeweled.
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 . Counselling: Advising management about public issues and company positions and image during good and bad times
LUX PR Activities
• Watch out Mumbai.Public Relations:
Not only must the company relate constructively to customers. Bangalore & New Delhi. They perform the following functions: • • • • • Press relations: Presenting news and information about the organization in the most positive light. PR involves a variety of programs designed to promote or protect a company’s image or its individual products. Lux Orchid will host the ‘Lux Orchid Nights’ in Mumbai.well 3 maidens to be precise. Corporate Communications: Promoting understanding of the organization through internal and external communications. This is just one of the many activities planned for the launch of Lux Orchid with exotic orchid petals in Jojoba Oil. where Chris Cairns will look out for and crown the ‘Lux Orchid Face of the evening’. suppliers and dealers.A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives. Lobbying: Dealing with legislators and government officials to promote or defeat legislation and regulation. it must also relate to a large number of interested publics.
. Product Publicity: Sponsoring efforts to publicize specific products.
. Juhi Chawla. Kareena Kapoor. Sridevi and Hema Malini graced the event and made it special.•
Lux celebrated 75 yrs of existence in a grand way by unveiling Shahrukh Khan as their latest brand ambassador. All the stars have endorsed Lux in the past. The event was held at the grand Intercontinental in Mumbai on Friday afternoon.
The main fact for this huge success story is the strategic pricing decision the company has adopted from time to time. HLL matches its prices with the competitor who is operating in the same category. HLL seems to have mastered this idea. HLL has no need to look back on the fact that it is a leader. 19 LUX International is priced at 125gm: Rs. HLL has the advantage of quoting a reasonable price due to its economy of scale. which have been described above. Price it too low and one can lose money on every sale once all of costs of doing business are considered. 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. Price something too high and a company may never sell a single item of it. 21
. 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. It has the products that are categorized as premium and mass products. Prices of HLL are considered the most competitive in Indian market.(C)Price
"Price" is pretty self-explanatory but it‘s very important to success. HLL always gives value for money to his consumers. So you want to price it attractively so that you can sell it to your clients and they‘ll feel good about the purchase. With an operating profit of 470 Mn$ and a turnover of 2. It is known for its competitive pricing. The LUX Beauty Bars are priced as follows: 100gms: Rs. 13 150gms: Rs.190 Mn$.
at all times. maintaining favorable trade relations. since HLL’s corporate purpose is “to meet the everyday needs of people everywhere. This includes. It is priced at Rs. 40 for 150 ml Lux has also introduced the “Mini Lux” that has helped in better penetration of the rural market. 5
Cutting-edge distribution network HLL’s distribution network is recognized as one of its key strengths -.International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. The need for a strong distribution network is imperative. 70 for 250 ml Rs.
.” At Hindustan Lever Limited. 7. providing innovative incentives to retailers and organizing demand generation activities among a host of other things.000 stockists and direct coverage in over 1 million retail outlets across India. in all outlets. It has 2000+ suppliers and associates. HLL has set up a distribution network that ensures availability of all their products. To meet the ever-changing needs of the consumer.that which helps reach out its products across the length and breadth of this vast country.s. 45 C&F.A. distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. Priced at 45g: Rs. HLL boasts of placing a product across the country in less than 72 hrs.
An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. improving their range availability whilst reducing inventories. There is also this new concept in the HLL distribution channel called Kiosk. who get the stocks directly from the company. which comprised almost 30 per cent of the total orders collected. 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. HLL's scale enables it to provide superior customer service including daily servicing. HLL is building a special relationship with the small but fast emerging modern trade. Typically. The objective is to catalyse HLL’s growth by ensuring that the right product is available at the right place in right
. This is building traffic into the stores while yielding high growth for the business. Large retailers also placed direct orders. From the distributor. Recently HLL has changed its traditional way distribution and came out with a new strategy of distribution. In addition to the ongoing commitment to the traditional grocery trade. which covers all chains of super markets like Food World. the stock reaches the market through daily sales. the goods are transferred from the factory to the company warehouses (C&F. Kiosk also does not come under the surveillance of the distributor. HLL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. these include the salesman registering the order of a retail outlet and delivering the goods the next day. There are different channels of distribution like Modern Trade.The first phase of the HLL distribution network had wholesalers placing bulk orders directly with the company. Kiosk is a small shop that sells only sachets and low priced items (below Rs.A godowns) and are sent to the distributor from there on a daily basis. Today.10/-). It‘s because of the change in buying pattern of the consumer due to more disposable income.
Powered by the IT tools it has further improved customer service. 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. It has already appointed 6000 such sub-stockists. all company sites and stretching right Upto stockists. already covers over 5000 villages in 52 districts of Andhra Pradesh. Today. to further increase its rural reach with the help of rural sub-stockists. and is being progressively extended. In a significant move. HLL has mounted an initiative. Project Streamline.15000 per month. For rural India. As a result. The project. with long-term benefits. Karnataka Madhya Pradesh and Gujarat. HLL's partnership with Self Help Groups of rural women. HLL's end-to-end supply chain. The SHGs have chosen to adopt distribution of HLL's products as a business venture. HLL has established a single distribution channel by consolidating categories. in the most cost-effective manner. For this. called RSNet. the distribution network directly covers about 50. thereby touching about 100 million consumers. the company's action-plan to maximize the number of outlets reached and to achieve leadership in every outlet. armed with training from HLL and support from government agencies concerned and NGOs. for online interaction on orders.000 villages. reaching about 250 million consumers. while ensuring superior availability and impactful visibility at retail points. started in 2001.
. Distribution will acquire a further edge with Project Shakti. HLL Way has also led to implementing best practices in customer management and common norms and processes across the company.quantities. which also includes a back-end system connecting suppliers. RS Net covers about 80% of the company's turnover. information sharing and monitoring. RS Net has come as a force multiplier for HLL Way. by unshackling the field force to solely focus on secondary sales from the stockists to retailers and market activation. A typical Shakti entrepreneur conducts business of around Rs. The vision is to reach over 100. dispatches. stockists have been connected with the company through an Internet-based network.000 villages.
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). For HLL. Once this is completed. and helps build a selfsustaining virtuous cycle of growth. This model creates a symbiotic partnership between HLL and its consumers. 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).which gives her an income in excess of Rs. and provide products/services in agriculture.
. the project is bringing new villages under direct distribution coverage. and live in extremely small villages (less than 2000 population). Plans are being drawn up to cover more states. straightforward model that provides direction and serves as a basis for the development of marketing plans. and is almost double of their past household income. insurance and education. health. 1998).1000 per month on a sustainable basis.
SWOT analysis is a basic. this earning is very significant. As most of these women are from below the poverty line. This will both catalyse holistic rural development and also help the SHGs generate even more income. SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity). some of whom will also draw on the company for their livelihood. or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat) (Marketing Strategy.
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. capitalize on golden opportunities. much of which may not be highly relevant. image Organizational structure Key staff Access to natural resources Position on the experience curve Operational efficiency. a firm can better leverage its strengths. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues.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. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. and deter potentially devastating threats. Internal Analysis . and weaknesses may hinder it. By understanding these four aspects of its situation.The internal and external situation analysis can produce a large amount of information.
. Strengths can serve as a foundation for building a competitive advantage. correct its weaknesses.
Fruit Extracts. generally mushy and soggy Saffron.External Analysis . Orchid 2.Many variants (Almond Oil. Opportunities can arise when changes occur in the external environment. Sandalwood Oil.Some variants like the sunscreen. 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. SWOT PROFILE OF LUX
1.Lux is mainly positioned as beauty door sampling is done once a year in soap targeted towards women. Milk Cream.
. hence it Urban and Rural areas) lacks unisex appeal 2.An opportunity is the chance to introduce a new product or service that can generate superior returns.Usage rate/ wear rate is high and is Extracts.Strong Market Research (door to 1. 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. and Honey to 3.
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.Though it is in popular segment.Soap industry growing by 4% in India 2.Beauty segment’s Annual Growth Rate (CAGR) is very would THREATS increase the competition Compounded 1.New entrants/local competitors/MNCs (sales /
high.High internal competition – Pears fast rate .Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment) 8.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.Strong sales and distribution network the market recent one with Shah Rukh Khan of the message of the advertisement
5.Positioning focuses on the attractive resulted in controversial interpretations 6.Strong brand image beauty segment
International variant did not do well in 4.Lux must reinforce its also catering the beauty segment (also
.Unique advantage of having access to resources and assets of HLL OPPORTUNITIES 1.Stock out problems . P&G) and Lovely’s segment is increasing at a 2.Certain advertisements like the
3. An indication of this is that Fair (Camay. it is having mass appeal/market presence across all segments (15% of the soap market captured by Lux volume) 9.name a few) backed by HLL 4.
Retentive strategy required as the changing customer tastes soap segment is in the mature stage of 4.More promotions like price-offs and 3.presence in the beauty segment samples
from HLL stable) segment makes Lux vulnerable to
3.Line extension – probably with more focus on technological innovations like variants catering to the beauty segment Body Wash like natural.Technological change makes the its product life cycle existing products obsolete – Lux should 5.Level of servicing is high during sales promotion schemes – this could be brought down
. herbal soap etc 6.Excessive dependence on beauty 4.Liquid body wash is currently in the growth stage – Lux should come out with more variants in this segment 7.
PERCEPTUAL MAPPING OF BRAND LUX
Perceptual mapping of some important brands
Dov e Price Pear s
Dettol Cinthol Sales Nirm Promotion a Breez e
Although economy brands like Breeze and Nirma scored well on the value for money aspect. it was seen as an expensive proposition.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. finds only a certain set of buyers. They were rated as moderate both on promotional as well as value for money aspects. It ranked low on both value for money and promotional parameters. Cinthol and Dettol soaps formed the middle portion of the map. Although Dove is ranked high on promotional parameter. Mysore Sandal soap was seen as a brand which has moderate value for money while it was left wanting in the promotional aspects. they lagged behind on promotional aspects. None of the other important brands could match it on promotion as well as value for money aspects.
. Pears due to its uniqueness as the only glycerin soap.
The primary analysis found that “Price off” is the best sales promotion schemes offered on Lux (40% of the retailers agreed on this).0%
40. “Product Bundling” was the next best with 30% of the retailers in favour of the same.
.0% 15.DATA ANALYSIS
(1)SALES PROMOTION SCHEMES OFFERED ON LUX
Cash refund Cross promotion Price off Prizes
3 months 15 days – 1 month More than 3 months
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).0%
.(2)NORMAL DURATION OF SALES PROMOTION SCHEMES
15. “More than 3 months” was the next best with 25% of the retailers in favour of the same.
75.(3)HOW OFTEN SALES PROMOTION SCHEMES ARE OFFERED ON LUX
3 months – 6 months 6 months – 1 year Less than 3 months
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).
(4)AFFECT ON SALES OF LUX DUE TO SALES PROMOTION SCHEMES
. “3 months – 6 months” was the next best with 20% of the retailers in favour of the same.
Can’t say Increase in sales No affect
10. “Can’t say” was the next best opinion with 15% of the retailers in favour of the same.0%
The primary analysis found that sales promotion schemes offered on Lux caused an “Increase in sales” (75% of the retailers agreed on that).
(5)COMMUNICATION OF SALES PROMOTION SCHEMES 66
40.0% 25. “Sales representatives” was the next best with 25% of the retailers in favour of the same
The primary analysis found that “Wholesalers” were the best medium of communication of sales promotion schemes (40% of the retailers agreed on that).0% 20.Communication
Through print media Through wholesalers Through electronic media Through sales representatives
(6)LEVEL OF SERVICING DURING SALES PROMOTION - COMPARISION WITH COMPETITORS
Inferior and more frequent Similar and more frequent
Superior and less frequent Superior and more frequent
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.
(7)AFFECT OF SALES PROMOTION SCHEMES ON DIFFERENT AGE GROUP
26-45 46 -60 16-25
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
(8)PROBLEMS FACED DURING & AFTER SALES PROMOTION SCHEMES
Handling problem Stock out Improper information
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)
55.(9)INCENTIVES PROVIDED DURING SALES PROMOTION SCHEME
Cash discount Gifts Prizes Others
(10)BEST 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.
The primary analysis found that “Price off” is the best sales promotion schemes offered on Lux (55% of the retailers agreed on that).Best_schemes
Cash refund Price off Product bundling Scratch card
20.0% 15. “Product Bundling” was the next best with 20% of the retailers in favor of the same
“Brand Value” was the next best with 15% of the consumers in favour of the same.75% 2.75% of the consumers agreed on that).5%
12.(1)MOST PREFFERED CRITERION FOR SOAP SELECTION
Most preffered criterion
Advertisement Brand value
6.75% 15.0% 13.25% 3.
The primary analysis found that “Price” is the most preferred criterion for soap (28.5%
Price Promotional schemes Benefits Color of soap Packaging Word of mouth
Fragrance of soap
The primary analysis found that the major perception about Lux is that as a “Beauty Soap” (50% of the consumers agreed on that).75% of the consumers in favour of the same
.(2)PERCEPTION ABOUT LUX
Perception about Lux
Beauty soap Nothing specific Soap for all Soap of filmstars
50. “Soap for all” was the next best with 23.
The primary analysis found that advertisement recall of Lux was “Yes” for 91.
91.(3)RECOLLECTION OF ANY ADVERTISEMENT OF LUX
Recall of current advertisement
No Yes.25% of the consumers and “No” for 9.75% of the consumers
75% of the consumers agreed on that).25%
58. “Sales Promotion” was the next best with 31.0%
31.(4)MOST EFFECTIVE MEDIUM OF SALES PROMOTION
Most effective medium for promotion
Personal selling Advertising Sales promotion
10.25% of the consumers in favour of the same.
The primary analysis found that “Advertising” is the most effective medium for sales promotion (58.
(5)PREFERENCE OF PROMTIONAL SCHEME
Preference of promotional schemes
Discount coupons Free trial Scratch card
Cash refund Cross promotion Price off Prizes
“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
.The primary analysis found that “Price Off” is the most preferred promotional scheme (42.5% 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
.75% of the consumers agreed on that).25%
The primary analysis found that the perception about change in quality during sales promotion scheme was “Superior” (93.Perception about change in quality
Superior No change
13.75% of the consumers agreed on that).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%
Makes you switch to Lux
38.Type of impact
No change in buying behavior Buy it during sales promotion offer Continue buying even after sales promotion offer is scrapped
.25% of the consumers in favour of the same. “No change in buying behaviour” was the next best with 26.
Through print media Through sales representatives
26.75% of the consumers agreed on that). “Through print media” was the next best with 26.75%
Through electronic media
11.(8)COMMUNICATION OF SCHEME
Communication of schemes
Through company’s stall
The primary analysis found that the communication of schemes should be “Through electronic media” (58.25% of the consumers in favour of the same
(9)PROBLEMS FACED DURING SALES PROMOTION SCHEMES
The primary analysis found that “Stock Out” is the biggest problems faced during sales promotion schemes (42.25% of the consumers in favour of the same.
(10)COMPARISION WITH COMPETITORS
. “Any other” was the next best with 21.5% of the consumers agreed on that).
75% of the consumers agreed on that).Comparison with competitors
Similar and less frequent Similar and more frequent
3. “Similar and more frequent” was the next best with 35% of the consumers in favour of the same
Superior and less frequent Superior and more frequent
The primary analysis found that Lux’s promotion schemes were “Superior and more frequent” vis-à-vis its (48.
25% of the consumers agreed on that).5%
The primary analysis found that “Adults” were the most affected upon by sales promotion 56. “Youngsters” was the next best with 32.5% of the consumers in favour of the same.
.5% 56.25% 2.(11)AFFECT ON AGE GROUP
Affect on age group
Adults Older people Youngsters Adults
The primary analysis found that the customers perceived the price of soap to be “Satisfactory” (42.5% 15.5% of the consumers in favour of the same.5% of the consumers agreed on that).5% 32. “Neutral” was the next best with 32.5%
2.(12)PRICE OF SOAP
Dissatisfied Neutral Satisfied Very satisfied
Neutral Very satisfied Dissatisfied Satisfied
5% of the consumers agreed on that).The primary analysis found that the customers perceived the distribution network of soap to be “Satisfactory” (47. “Very Satisfied” was the next best with 26.25% of the consumers in favour of the same
47.75% of the consumers in favour of the same.5% of the consumers agreed on that).
The primary analysis found that the customers perceived the quality of soap to be “Satisfactory” (47.5%
Neutral Satisfied Very satisfied Dissatisfied Satisfied
23. “Neutral” was the next best with 23.5%
“Neutral” was the next best with 26.25% 26.25% of the consumers in favour of the same
Dissatisfied Neutral Satisfied
The primary analysis found that the customers perceived the advertising of soap to be “Satisfactory” (56.25% of the consumers agreed on that).5%
The primary analysis found that the customers perceived the promotional schemes of soap to be “Satisfactory” (63.25%
7.25% of the consumers in favour of the same.75% 7.5%
63.75% of the consumers agreed on that).
Satisfied Very satisfied Dissatisfied Neutral
21. “Neutral” was the next best with 21.
So it is necessary that the perceived value of a free gift has to be appealing and high for the target consumers. Hence it is essential that companies need to design mattractive. the finding suggested that premium (free gift) was popular with companies. Also the importance of the role of mass media came out clearly in both the studies. Only after this should he spend time. striking. Also the person going to the shop for the purchase of soap is the final decision maker of the brand. 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. 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.9. 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
. While both retailers and consumers preferred price offs. 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. Repetitive use of the same premium (soap dish) for a prolonged period may have negative effect on the loyal customers. sales promotion by itself is unlikely to have any major impact. When the company is giving its own product free as premium. With respect to nature of scheme. money and energy on sales promotion activities.CONCLUSION
The findings of the empirical study indicate that unless the brand to be promoted is in the consideration set of the consumer. Toilet soaps are low involvement products characterised by switching behaviour. it needs to ensure the quality of the product from it as it is likely to jeopardize the image of both its products. visible POPs for scheme announcements.
accounting was required on the part of a retailer without compensatory margins. Companies need to systematise information flow regarding sales promotion activities particularly at dealer . 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. This implies that the retailer would be a rich source of information about the consumer and the likely response to sales promotion activities. perceptions of retailers as well as consumers.
. Through dealers and proper feedback mechanism. It can be seen that the retailer and consumer perceptions matched with respect to preferences of schemes. underlying motivations and role of mass media. From the study it was found that smaller retailers felt neglected and not enthused to implement the schemes. companies keep in touch with the market. direct reach by companies is next to impossible.retailer level. stocking. 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. 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.clearing excess stocks. particularly when additional handling. In order to build trust and commitment companies should tap preferences. As retailing is fragmented.
10. herbal soap etc.
. (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. (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.RECOMMENDATIONS
(1) They should provide more promotions like price-offs and samples.
(6) It is having only 19.8 % rural market presentation which could be further enhanced .
1. “Marketing Management : Analysis.” 9 ed. Implementation and Control. “Sales Promotion fast growth faculty management. Prentice Hall of India. 1976.indiainfoline..” Harvard Business Review. www. 3.com 4.
2. Kotler Phillip. Planning. 1997.hll. Strang Roger. www.
Address: ………………………… Contact No. Questionnaires Used
1..:…………………………………. Shop’s Name :…………………………………. ……………………………………
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
(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..…………………………………….
(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
......................(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
Name : .............. Sex:............. ............................................. Contact No:..................... Age:..................................................
........... ................................................................................................................................................. (1)Which brand of bathing soap do you use ?................................................
........ allot the points according to your preference on the following promotional schemes? (a) Price off (b) Discount coupons (c) Contests (d) Scratch card
.......... (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............ (6) Which is the most effective medium for promoting the product? (a) (b) (c) (d) (e) Advertising Sales promotion Public relation & Publicity Personal selling Internet
(7) Out of total 100 points..................(2) Is the same brand of soap used by your other family members? If not ........................ (b) No................ which brand of bathing soap do they use?...
(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) (b) (c) Superior Inferior 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
(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 dissatisfied Satisfied Neutral Dissatisfied Very
(a) Price (b) Distribution Network (c) Quality (d) Advertising (e) Promotional Schemes