This action might not be possible to undo. Are you sure you want to continue?
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
SCOPE OF THE STUDY The geographical scope of the study was restricted to the Ghaziabad & Delhi due to time and resource constraints. the sample size was restricted to 80 consumers (mostly student group) and 20 retailers. the generalizations drawn are only indicative and not conclusive. (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. 2. 1. it was not possible to study the accurate phenomenon of the fact. 4 . (3) As the research was exploratory in nature. LIMITATIONS OF THE PROJECT (1) Response biasness could be one of the limitations. ii) To get an insight into retailers’ views regarding the schemes being offered on Lux. Focus being mainly on in-depth probing. The study being exploratory in nature.OBJECTIVES OF STUDY The main objectives of the study are: i) To assess the consumer sales promotion schemes offered on Lux.
Convenience sampling was used for both retailers as well as consumer studies. The total respondents were 80 in number. 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. Twenty retailers ranging from small kirana store to big provision stores were approached. All the retailers were located in Ghaziabad and Delhi area. 5 . METHODOLOGY In order to address the above questions an exploratory study was conducted. The respondents for consumer study were mostly students and consumers found as per convenience in the market. In order to address above mentioned objectives (i) Study of secondary sources was carried out. Data analysis is done using software packages like SPSS & MS-EXCEL.3.
he commenced production of a transparent soap at a factory in Wells Street.at least that it rinsed mud off their hands. with other sites at Cheapside. which is a method of making soap. Women found that this clay mixture made their wash cleaner with much less effort. Soap got its name. off Oxford Street and became hugely successful. Rain washed a mixture of melted animal fat. or tallow.4." Such materials were later used as hair styling aids. In 1789. Inscriptions on the cylinders say that fats were boiled with ashes. from Mount Sapo. 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. according to an ancient Roman legend. In London a 15th century "sopehouse" was reported in Bishopsgate. 6 . but do not refer to the purpose of the "soap.C. Some of the early instances of commercial manufacturing of soap are: In Britain references began to appear in the literature from about 1000AD. and wood ashes down into the clay soil along the Tiber River. ABSTRACT The origins of personal cleanliness date back to prehistoric times. 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. the earliest people lived near water and knew something about its cleansing properties . where animals were sacrificed. and by the Thames at Blackfriars Andrew pears. where there existed Soper's Lane (later renamed Queen Street). Other early centers of production included York and Hull. Since water is essential for life.
an attempt has been made to examine the nature of sales promotion activities in toilet soap category in India. 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. Retailers perceived price offs to have relatively greater impact compared to any other forms of sales promotion. As the retailer interacts and observes consumers more frequently and closely than the manufacturer. COMPANY BACKGROUND INTRODUCTION Understanding perceptions of channel members and consumers regarding sales promotion activities enhances the effectiveness of these activities. study retailer perceptions with respect to these activities and also get an insight into consumer perceptions of these activities. premiums (free gifts) were found to be the most frequently used in both premium and popular toilet soap category. 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. the findings of consumer perceptions indicated that price off was the most preferred type of sales promotion. In this paper.5. followed by price offs. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. it would be useful for the companies to incorporate perceptions while planning sales promotion strategies. 7 . Our findings indicate that with respect to the nature of the schemes.
In 1931. Hindustan Vanaspati Manufacturing Company. Soon after.000 individual shareholders and financial institutions.) The widespread use of sales promotions in toilet soap category Historically. Lux and Vim. Unilever set up its first Indian subsidiary. 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. embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods(FMCG). The rest of the shareholding is distributed among about 380. visitors to the Kolkata harbor noticed crates full of Sunlight soap bars. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. being the first among the foreign subsidiaries to do so. HINDUSTAN LEVER LIMITED In the summer of 1888. 8 . These three companies merged to form HLL in November 1956. Our study though exploratory has considered perceptions for price as well as non-price promotions in toilet soap category. whenever there was a downward trend in growth.All the above researches have focused on price promotions and their response. followed Lifebuoy in 1895 and other famous brands like Pears. Unilever now holds 51. The reasons for the study were: i) ii) iii.55% equity in the company. HLL offered 10% of its equity to the Indian public.
India Limited was formed. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. The liberalization of the Indian economy. Pond's (India) Limited had been present in India since 1947. the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. In one of the most visible and talked about events of India's corporate history.The erstwhile Brooke Bond's presence in India dates back to 1900. Subsequently in 1998. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. By 1903. always in line with Indian opinions and aspirations. formed a 50:50 joint venture. 1993. The erstwhile Lipton's links with India were forged in 1898. Since the very early years. without any constraints on production capacity. Simultaneously. 9 . Lakme Limited. In 1912. Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. The growth process has been accompanied by judicious diversification. effective from April 1. clearly marked an inflexion in HLL's and the Group's growth curve. acquisitions and mergers. HLL and yet another Tata company. deregulation permitted alliances. started in 1991. the company had launched Red Label tea in the country. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. HLL has vigorously responded to the stimulus of economic growth. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. Brooke Bond & Co. In 1995. Lakme Lever Limited.
In 1992. The two companies had significant overlaps in Personal Products. Tea Estates and Doom Dooma. Finally. HLL has also set up a subsidiary in Nepal. The 1990s also witnessed a string of crucial mergers.Kimberly-Clark Lever Ltd. two plantation companies of Unilever. The amalgamation was done to ensure for the Group. 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. As a measure of backward integration. the erstwhile Brooke Bond acquired Kothari General Foods. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Specialty Chemicals and Exports businesses. The two also had a common management pool and a technology base. which markets Huggies Diapers and Kotex Sanitary Pads. 1996. it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. were merged with Brooke Bond. with significant interests in Instant Coffee. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. Then in July 1993. The NLL factory manufactures HLL's products like Soaps. Nepal Lever Limited (NLL).HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994 . The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998. with effect from January 1. By the end of the year. BBLIL merged with HLL. Detergents and Personal Products both for the domestic market and exports to India. enabling greater focus and ensuring synergy in the traditional Beverages business. In 1993. and its factory represents the largest manufacturing investment in the Himalayan kingdom. acquisitions and alliances on the Foods and Beverages front. besides a common distribution system since 1993 for Personal Products. 10 .
in a historic step. 8 /75 gms 11 . In 2002. MARKET SHARE OF VARIOUS COMPANIES (TOILET SOAPS) HLL GODREJ WIPRO NIRMA OTHERS Price segments of toilet soaps Segment Premium Popular Economy Price/weight > Rs. HLL's entry into Bread is a strategic extension of the company's wheat business. the government decided to award 74 per cent equity in Modern Foods to HLL. In 2003.In January 2000. 15 / 75 gms Rs. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. a leader in value added Marine Products exports. HLL acquired the government's remaining stake in Modern Foods. 8-15/75 gms < Rs. HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies.
Saira Banu.” After 50 Indian female actors lathering up with Lux. Juhi Chawla. “Aaj mein aapko batanewala hoon meri khubsuratein ka raaz — Lux. “One of the turning points in my career was when I was signed up by Lux. Nargis.LUX: THE STAR PERFORMER The great Indian brand wagon started nearly four decades ago. She gave way to a galaxy of stars which includes Madhubala. Lux became a household name across the country. Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. Waheeda Rehman. The first ambassador. Great brands sometimes outlast their ambassadors as proven by Lux which is celebrating its 75th anniversary in India. The brand has outlasted many soaps. Shah Rukh Khan. Sharmila Tagore. The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. Hema Malini. The first Lux bar made in India was sold for the princely sum of two annas in 1934. Ginger Rogers became the first Hollywood great to appear in a Lux commercial. 12 . to say. Ab batayein aapka favourite Lux Star kaun hai? (I want to tell you about my beauty secret — Lux. From the beginning. It was then that I knew I had made my mark in Indian cinema as a leading lady. Actor Hema Malini says. Meena Kumari. To be a Lux star is a much sought after honour amongst leading ladies and it truly means a lot to me. Madhuri Dixit. Mala Sinha. Sridevi. it is now the turn of a male actor. Zeenat Amaan. Who is your favourite Lux Star?)” In 1926. Aishwarya Rai and Kareena Kapoor.
offers its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients –Almond Oil. Lux Toilet Soap. Lux is the biggest brand in the soap category.LUX: VARIANTS In the country since 1929 and endorsed by popular film stars. Fruit Extracts. The Lux premium range offers specialized skincare to its consumers in the form of Lux International. Orchid Extracts. never seen in the Indian market before. Saffron. 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. in the popular segment. Milk Cream. Sandalwood Oil and Honey. 13 .Aromatic Glow and Chocolate Seduction and Lux White Spa body wash containing exotic ingredients. The Lux Celebration Range is a set of three exclusive variants.
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. 14 . Nirma has been challenging the hegemony of Hindustan Lever. which is a carbolic (Red) soap. Nirma had sourced the latest Italian technology from Binacchi and CMB and set up a finish line that produces 500 toilet soaps per minute. this soap has a Total Fatty Matter (TFM) of 60 %. Packed in a red color wrapper and available in 75 gram and 150 gram pack sizes.LUX : COMPETITOR ANALYSIS NIRMA Nirma Since the early nineties. Almost as an answer to the general perception of low quality. Although the carbolic soap segment is on decline. Nirma Bath Soap: Toilet soap market in India was dominated by a very few MNC’s which could monopolistically price their product. Nirma entered this market with the launch of ‘Nirma Bath Soap’. Nirma Bath has generated larger volumes each year. sensing a strong need to expand the market through Penetrative Pricing. 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. wrapped and carton sealed for dispatch. In 1992.
July-September 1998). (as featured in The Strategist Quarterly. this brand. this soap is available in green colour. 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 ranked by the Business Standard Marketing Derby. With a lime aroma that tingles in one’s sensory buds for a long time. Due to its admirable perfume and a higher TFM content. 1998. when it was launched in 1997. being ranked as the Seventh Most Successful Brand Launch for the year 1998. Packed in a poly coated 75 gm carton. The product launch of Nirma Lime Fresh had been extremely successful. this soap contains 80% TFM. Seventeen million packs of Nirma Lime Fresh soap were sold in the very first month of its soft launch. Better Value. which is printed on the world’s best Cerruti 8-colour printing machine. Available in three different variants and pack sizes.” Nirma introduced ‘Nirma Beauty Soap’ in the year 1992. within a short span of five years. this soap has a TFM content of 70%.Nirma Beauty Soap: With its market promise to offer “Better Products. Better Living. 15 .
while Levers Lux sold for Rs 8. It promises benefits of Sandal oil & Turmeric powder. Rose. It is available in 100g and 150g pack sizes. This brand had carved a niche in its segment by achieving leadership position just within two months of its launch. It launched Nirma Beauty soap in the premium segment. The company has expanding into other segments of the fragmented five lakh tonne soap market. Imitating Levers time-tested strategy. making it the3rd largest soap brand after Lux and Lifebuoy. etc. Jasmine. Nirma Beauty Soap carried a MRP price tag of Rs 7 and was sold at Rs 6. with rich & exotic fragrance. Nima Sandal is a one of such product in floral segment. This toilet soap has 80% TFM content.000 tonnes. Nirma Beauty soap sells whopping 45.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. Over the period. Nima Rose soap has got an exceptionally soft rose fragrance – which remains around body for a long time even after bath. Today. 16 . Indian toilet soap market has fragmented & has seen emergence of prominent floral fragrance segments as Sandal. Nima Sandal. Nirma used actress Sonali Bendre in its advertising. It is a premium product from Nima stable and is available in 100g and 150g packs. The high TFM content of this product allows a consumer to have pleasant bath.
) Guwahati (Assam) and Silvassa (U.).P. Nirma Lime Fresh. the Patels quickly hit back at Levers freshness plank. Nima Lime Fresh was aimed at the popular segment of the toilet soaps market. Nirma followed it up with Nirma Premium. hair. 17 . Nirma introduced a new soap brand. 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. Nirma Lime Fresh sold for Rs 8.(GCPL) is a major player in the Indian FMCG market with leadership in personal.50 and a total fatty matter (TFM) content of 70 per cent. Lux.T. GODREJ Godrej Consumer Products Ltd. Breaking away from tradition. but while Liril sold for Rs 12. Nima Lime. The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M. Nirma Lime Fresh was positioned against Levers Liril Lime Fresh.50. With a wrapper price of Rs 6. It marked its foray in the early nineties by launching Nirma beauty soap to take on Lever's best selling brand. This is Nirma's fourth brand launch in the toilet soaps market. household and fabric care segments.When Lever made an assault on Nirma Beauty Soap with its Breeze. in the key markets of Gujarat and Maharashtra.
1 Beauty Soap stands for True Natural Beauty.1 Godrej No. Once the archrival of HLL. FAIRGLOW. after HLL (54% market share) and Nirma (9% market share).0% in FY 2004-05 from 6. Natural and Ayurvedic packed with the goodness of natural ingredients. Market share in Toilet soaps grows to 8. glowing complexion. which makes you fairer by reducing the dark melanin without changing the skin's natural balance. All three Power brands have begun to perform strongly. specially formulated to cater to special skin types. Sandal. In addition.Godrej is among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL. with a market share of around 8 per cent. it also removes blemishes to give you a clear. Godrej No. Fairglow The Godrej FairGlow fairness soap contains a powerful fairness ingredient ' Natural Oxy-G '.8% in FY 200304. Rose. 18 . it now occupies the number three rank. in toilet soaps. GCPL is a relatively small player compared to HLL. has created marketing history as one of the most successful innovation. Jasmine. Godrej No. GODREJ NO 1.1 is available in five variants enriched with natural ingredients. However. Their FAIRGLOW brand. India's first Fairness soap.
It has a pleasant fragrance and is white in colour. It is a quality Grade 1 fairness product having 76% TFM (Total Fatty Matter). With TFM 76% this Grade1 soap is available in 50g. WIPRO Wipro Consumer Care is yet another principal player enjoying a five per cent market share. After lying dormant for a decade. 75g and 125g. Chandrika. The soap has an excellent long-lasting lime fragrance that keeps you feeling fresh throughout the day. This makes for an invigorating bath that kick starts and gets you ready for the day. Wipro Consumer Care promises moving into top gear. simply through a daily bath. Wipro has three important brands of soap in its portfolio: Santoor. Cinthol Lime Fresh provides deep cleansing along with active freshness and vitality.Godrej FairGlow Soap was India's first and is the largest selling fairness soap. 19 . Milk and Roses. Cinthol lime fresh With the extracts of real lime. It helps you become fairer in a convenient way.
a sandal and besan variant. 20 .a soap that nourishes make you look much younger. the company argues. Santoor offered a combination of sandal and turmeric. as the first round of revival began. an outcome of limited resources. Santoor's market share is around three per cent.Santoor soap The magic of Sandal & Turmeric comes together in Santoor . has to be seen in the context of its regional presence. This. Wipro later introduced a new variant of Santoor . happened around mid-1990s. Santoor Chandan has a strong lingering fragrance and is a favourite of discerning customers. The new variant offered the combined benefits of sandal and besan. Around this time. But its low market share. 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.
The price is Rs.Milk&Roses gives you glowing skin that puts even jewellery to shame! Available in milky white and glowing pink. now marketed by Wipro Consumer Care and Lighting. Its latest range is a combination of moisturizing glycerin. for Oily Skin and for Normal Skin). sports contemporary packaging. . 21 . the floral fragrance is aimed at making the user feel cared-for and looked-after.17 for a 100-gm cake. Palmolive has been the pioneer in introducing soaps for different skin types (example Palmolive Extra Care for Dry Skin. Long-lasting and refreshing.Milk & Roses soap The nourishment of milk and the softness of roses . essential oils and a mixture of premium natural herbs and flowers. Chandrika. OTHERS Colgate-Palmolive (India) Ltd.the marketer of personal care products. offers ‘ultra modern’ line of Transparent Palmolive Natural skincare soaps. Chandrika The world’s first Ayurvedic soap brings you the goodness of nature to give you healthy and glowing skin. the 65-year-old brand. It is available in two variants – ‘Relaxing’ and ‘Soothing’. a new shape and has many new additions to the host of Ayurvedic ingredients it is made of.
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.Dettol Extra Soap.15.a niche player in the Indian soap market owns the well known brand ‘Dettol’. A 75 g bar is priced at Rs.Reckitt Benckiser . 22 . It had launched a new product . The soap has a pleasant new fragrance and a convenient saddle shape. making it easy to hold.
7. 5 to bring it within the reach of 300 million rural consumers. addressing new benefit segments.‘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. 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. It is a highly penetrated market though per capita consumption lags even South Asian countries like Indonesia. Achievements Lux is the largest personal wash brand in the country with a value share of 17%. The introduction of new perfume and ingredient variants. The last three years have seen Lux continue to grow far ahead of the market. A key initiative that has fuelled this growth has been the launch of Mini Lux – strategically priced at Rs. 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 . 45 billion (Source: ORG-MARG). 23 . FOUR P’s OF LUX Market The personal wash market is valued at Rs. This strong association with consumers has led to Lux becoming one of the most trusted brands in the country. has been the other growth driver.
offered the same benefit of beautiful skin. Popularly known as ‘the beauty soap of film stars’.History Lux soap was launched in India in 1929. have made the Lux bath a pleasurable experience. however. Lux has offered a range of soaps in different colours and fragrances. especially its world class fragrances and nourishing ingredients. The first bar of Lux was made in India and sold for a princely sum of two annas in 1934. Lux launched a range of premium soaps to suit their different skin types. to tap into this segment. the gorgeous faces of the silver screen have come out in the open with their beauty secret – Lux. Desirable product sensorials. Lux has been a favorite with generations of users for the experience of sensuous. From the very first advertisement in 1929 featuring Leela Chitnis. luxurious bathing. They have each. But Lux being the market leader has evolved along with the changing needs of its consumers. In 1989. Since its launch in India. 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. 24 .
Product Classification Marketers have traditionally classified products on the basis of characteristics: durability. places. 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 . Shopping Goods: Are goods that the consumer. information and ideas. services. quality.The FOUR P’s (A)Product A product is anything that can be offered to a market to satisfy a need or want. experiences. price and style. organizations. immediately and with a minimum of effort. events.Products that are marketed include physical goods. Non Durable Good on the basis of this classification. and use. LUX is a Tangible. in the process of selection and purchase characteristically compares on the bases of suitability. Specialty Goods: Have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. 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. properties. persons. tangibility.
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
It is priced at Rs. And Fresh Moisture exudes the tingling freshness of orange peel extracts. Though Lux International. with each elegant bottle comes a free loofah. a premium variant of the toilet soap. These create an experience in pampering indulgence and luxury designed to bring out the star in every woman. To ensure a complete skin styling experience. ‘ingredients you can see in the soap’. International Lux Body Wash – the last name in luxury It is the next revolution in the realm of personal care. is differentiated on the basis of its ingredients. sandal saffron. Rich Moisture embodies an exotic combination of green apple and orchid extracts. To establish the presence of nourishing ingredients in the new Lux.changing times it has also launched Lux Body Wash which offers superior bathing benefits. a unique concept. The art of styling skin and giving it that enviable glow. Lux Beauty Bar was always projected as a “pure and mild” solution to soft and smooth skin. The new International Lux Body Wash comes in two rich variants. 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. 29 . the popular version. almond oil and fruit extracts. 49 for 150 ml respectively International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. 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. launched in 1989. with the active ingredients of rose extracts. was born. 90 for 250 ml and Rs.
The colors are different for different variants such as saffron for the saffron variant. 150 g 30 . 120g. Packaging A novel metallic substrate packaging beautifully showcases the ingredients. in case of the soaps. pink for the rose extracts etc. A novel metallic substrate packaging showcases the ingredients. place of manufacture have been listed. Also diplayed graphically are the key ingredients.The Bars come in package sizes of 100g. The ingredients. and a female model is shown on the pack.Trade Character Labelling The LUX Trade Character or Logo is present prominently on the package. A female model is shown on the pack. Also listed is the consumer complaint cell address in case of unsatisfactory product.
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. 5 31 .
the company identified two sets of consumers. 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. sensorials. It would rather orient and direct the change rather than follow it.” 32 . value for money. One was the loyal base of existing Lux Beauty Bar consumers. works eight to 12 quarters ahead of the company’s brands. skin care. which charts the route for every HLL brand’s progress. but could shift upwards if a better product was offered in the popular segment. This segment comprised of those customers who were buying soaps in the subpopular segment. A company executive says. perfume and ingredients.Developing New Variants The new Lux Beauty Bar is significantly better on all aspects including aesthetics. helped in timing the relaunch. Lux is always a step ahead of trends rather than following the trend. This flag-bearing programme according to the company. This programme. For instance. market conditions notwithstanding. which would tap into this source of growth. The company claims that a new initiative behind Lux beauty bar was always in the offing. “The entire relaunch exercise was aimed at delivering a superior mix. Also by using brand-oriented research. The other was the target segment which would be the source of growth for Lux. HLL’s structured innovation programme was the driving force.
While the target segments remain the SEC B. C and D. long-lasting. as the consumer has never associated with Lux’s black colour packaging. sandal and saffron were considered. 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. 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. The company says that after scanning 60 or 70 options across both national and international markets almond oil. 33 . 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. These included moodenhancing perfume positioning.The consumer needs and triggers which were identified included: fragrance. This helped in the delivery of the new product. With its latest stance. Skin-care based ingredients like glycerin. honey and milk cream were the chosen ones. value for money product. quality of lather. they say that the honey variant is yet to catch on.
(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 .
LUX ADVERTISEMENTS THROUGH THE AGES 35 . Ads can be a cost effective way to disseminate messages. whether to build a brand preference or to educate people.Advertising Advertising is any paid form of non-personal presentation and promotion of ideas. goods and services by an identified sponsor.
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 .
which transports the user into a fantasy world of icons. an announcer of their stardom. The product has been positioned on the basis of REFERANCE GROUP by using a celebrity popular at that point in time. From the beginning Lux. Lux has been an intimate partner of the brightest stars on the silver screen for decades. 40 . from Babita to Karisma and Kareena having endorsed the goodness of Lux over generations. film stars and fairy lands. by using a leading film star of the time. An ode to their beauty. it was natural that the brand has built equity as the best beauty soap in India. advertising campaigns on Lux have featured film stars across the nation. Popularly known as the beauty soap of film stars. Some amount of attribute positioning by mentioning the various ingredients has also been done Lux campaigns have wooed millions of people over the decades. it’s good for me. This later moved into a transformation role of having a bath with Lux. has fulfilled the consumers’ aspirations of using beauty soaps via the rationale ‘if it’s good enough for a film star. With top movie stars – from Madhubala to Madhuri. promising their beauty and complexion to ordinary women.Advertisement Analysis • • • USP or the common thread through all the advertisements is the Presence of Movie Stars through the ages.
the film star is used purely as a communication device to portray star quality in every Lux user. In addition to this. is a change from the norms set by Lux advertising in the past. for the first time the film star was used as a communication device and not as the main feature of the ad. 41 . With the new communication strategy. In this context. Thus. as consumers were beginning to question if the film star actually used the brand. This promise goes beyond the functional deliverables of soap. the global brand team for Lux developed a new communication strategy. It’s a world where with Lux on her side. This idea – bring out the star in you – puts the consumer at the heart of the brands’ promise. 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).Change in communication strategy However. an ordinary woman can impact her world with her own star quality. with the focus on the protagonist’s star quality. for a few seconds of the entire ad. The move away from the film star and her fantasy world to a regular Lux user. the communication was slowly seen to be losing relevance. This is a successful attempt to bring the brand closer to its users and to give it a more youthful and contemporary image. beyond bathing and the bathroom to the world outside. several competitive beauty soap brands had begun advertising using similar methods of communication.
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'). It is just the execution that is very different.Breaking 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. Shah Rukh is a big draw and women just love him.' which. will change the fortunes of the languishing brand. Increasing competition and lack of innovation in the soaps category has led the FMCG biggie to try out something `new. CELEBRATING 75 years of the Lux brand. 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. Hindustan Lever has decided to break away from tradition. the ad agency for Lux. The target audience for Lux is women. Shah Rukh Khan was seen as the right connect. 42 . which turned 75 this year. So the strategy for Lux has not really changed. After intense brainstorming by the company's brand team and JWT. they have Shah Rukh. Shah Rukh is a great favourite with women of all ages. instead of a female star in the tub. hopefully. HLL resorts to a male and metro sexual Shah Rukh to revive Lux.
the new campaign with Shah Rukh is intended to help in reviving the heritage brand. Despite constantly declining net profitability.And it's not about Shah Rukh the star but the kind of person that he is. designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. HLL has retained its stronghold as country‘s biggest advertiser in 2004. In fact HLL upped its spend by 30. So it is a device to inject a bit of novelty and `buzz value' into an old brand. To quote the marketing of HLL.396 crore in ‘03. "Instead of showing Shah Rukh as a macho man riding a horse like the Marlboro man. And the ad is not claiming that SRK is using the brand. one word that comes to mind is mammoth. The FMCG giant topped the list of India‘s leading advertisers with a combined TV and press ad spend of Rs. it is with a reason. 43 . consists of a collection of incentive tools. which has always relied on film stars for its ads. 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. sales promotion offers an incentive to buy. Sales Promotion Sales promotion.5% in ‘04 to Rs. mostly short term. a key ingredient in marketing campaigns.517 crore last year. is what the Lux brand hopes to integrate into its new campaign. He is not shown using the soap. And it has used male stars in the past in international markets. Whereas advertising offers a reason to buy. fraternity who feel the ad could have had a story line and been made aesthetically more appealing. So while it is a big departure. He is merely in a bath tub surrounded by the Lux stars. Apart from the events and promotions.
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. They permit the manufacturers to sell more than they would normally sell at list prices. reward loyal customers. In markets of high brand dissimilarity. although they may be induced to make subsequent purchases. who are primarily looking for low price. Sellers use incentive type promotions to attract new trials. But sales may hit a post promotion dip. consumers may engage in stockpiling. such as everyday-low-price store and the promotional pricing store. 45 . because they can always discount it. Consumers themselves enjoy some satisfaction from being smart shoppers when they take advantage of price specials. 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. or premiums. and to increase the repurchase rates of occasional users. They enable manufacturers to test how high a list price they can charge. They promote greater consumer awareness of prices. They lead to more varied retail formats. good value. For retailers. They help the manufacturer to adapt programs to different consumer segments. Sales promotions often attract brand switchers. In addition to brand switching. Sales promotions enable manufacturers to adjust to short term variations in supply and demand. They induce consumers to try new products instead of never straying from current ones. sales promotions maybe able to alter market shares permanently.purchasing earlier than usual or purchasing extra quantities. A number of sales promotion benefits flow to the manufacturers and consumers. 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.
All one needed to do was buy a special promotional pack 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. The pack comes with a special scratch card. 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. 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. The offercould be availed only on 100 gm and 150 gm packs of Lux soap.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. Some service firms use promotions to attract new customers and establish loyalty. They could also be given gift vouchers worth Rs 46 . • Lux Star Bano.
50. • Lux is celebrating 75 year’s of stardom in India and to kick start the celebration. The pièce de résistance was a dinner date with Aishwarya Rai herself. 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 a year’s supply of Lux free. Aish Karo contest aims to drive the brand proposition — Mujh mein star jagaye — further. The Lux Star Bano. she will get an equivalent discount (in rupees) on her purchase from her shopkeeper. The Lux `Be a Star' promotion is an unique offering through which LUX brings what stardom feels like to customers. Lux has launched the Har Star Lucky Star activity. courtesy the beauty stars.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. If the consumer finds “75 years” written inside the star. 47 .
Create rows of 3 or more identical stones and you could win a trip for two to a five-star Resort in Goa. Bejeweled. • Online Contests 48 . You can also win Lux Skincare Products.Play the supercharged version of the hit puzzle game. Email: Name: þÿ þÿ Please enter your name and email to play the game.
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 .Public Relations: Not only must the company relate constructively to customers.A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives. Product Publicity: Sponsoring efforts to publicize specific products. Bangalore & New Delhi. Counselling: Advising management about public issues and company positions and image during good and bad times LUX PR Activities • Watch out Mumbai. suppliers and dealers. it must also relate to a large number of interested publics. Lux Orchid will host the ‘Lux Orchid Nights’ in Mumbai. They perform the following functions: • • • • • Press relations: Presenting news and information about the organization in the most positive light. 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.well 3 maidens to be precise. Lobbying: Dealing with legislators and government officials to promote or defeat legislation and regulation. Corporate Communications: Promoting understanding of the organization through internal and external communications. PR involves a variety of programs designed to promote or protect a company’s image or its individual products. 49 .
Sridevi and Hema Malini graced the event and made it special. The event was held at the grand Intercontinental in Mumbai on Friday afternoon. 50 .• Lux celebrated 75 yrs of existence in a grand way by unveiling Shahrukh Khan as their latest brand ambassador. Juhi Chawla. All the stars have endorsed Lux in the past. Kareena Kapoor.
HLL seems to have mastered this idea. Price something too high and a company may never sell a single item of it. HLL always gives value for money to his consumers. HLL has the advantage of quoting a reasonable price due to its economy of scale. 13 150gms: Rs. So you want to price it attractively so that you can sell it to your clients and they‘ll feel good about the purchase. The LUX Beauty Bars are priced as follows: 100gms: Rs. HLL has no need to look back on the fact that it is a leader.190 Mn$. HLL has the product range that meets the needs of all classes of consumers. It is known for its competitive pricing. which have been described above. It has the products that are categorized as premium and mass products. HLL matches its prices with the competitor who is operating in the same category. HLL also can quote a very competitive price due to its superior technology and optimum utilization of inventory. 21 51 . HLL also gives price offs on its products to reward consumers who are using it for a long time and also to attract new consumers.(C)Price "Price" is pretty self-explanatory but it‘s very important to success. 19 LUX International is priced at 125gm: Rs. The main fact for this huge success story is the strategic pricing decision the company has adopted from time to time. Price it too low and one can lose money on every sale once all of costs of doing business are considered. Prices of HLL are considered the most competitive in Indian market. With an operating profit of 470 Mn$ and a turnover of 2.
The need for a strong distribution network is imperative.s.that which helps reach out its products across the length and breadth of this vast country.” At Hindustan Lever Limited. HLL has set up a distribution network that ensures availability of all their products. distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. 5 (D)Place Cutting-edge distribution network HLL’s distribution network is recognized as one of its key strengths -. This includes.000 stockists and direct coverage in over 1 million retail outlets across India. Priced at 45g: Rs. To meet the ever-changing needs of the consumer.A. 7. maintaining favorable trade relations.International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. 40 for 150 ml Lux has also introduced the “Mini Lux” that has helped in better penetration of the rural market. providing innovative incentives to retailers and organizing demand generation activities among a host of other things. It is priced at Rs. since HLL’s corporate purpose is “to meet the everyday needs of people everywhere. HLL boasts of placing a product across the country in less than 72 hrs. It has 2000+ suppliers and associates. 70 for 250 ml Rs. 52 . 45 C&F. in all outlets. at all times.
the stock reaches the market through daily sales. Large retailers also placed direct orders. 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.The first phase of the HLL distribution network had wholesalers placing bulk orders directly with the company. which covers all chains of super markets like Food World. Typically. 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. Today. HLL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. It‘s because of the change in buying pattern of the consumer due to more disposable income. Kiosk is a small shop that sells only sachets and low priced items (below Rs. these include the salesman registering the order of a retail outlet and delivering the goods the next day.A godowns) and are sent to the distributor from there on a daily basis. There is also this new concept in the HLL distribution channel called Kiosk. From the distributor. An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis.10/-). HLL's scale enables it to provide superior customer service including daily servicing. This is building traffic into the stores while yielding high growth for the business. Recently HLL has changed its traditional way distribution and came out with a new strategy of distribution. The objective is to catalyse HLL’s growth by ensuring that the right product is available at the right place in right 53 . the goods are transferred from the factory to the company warehouses (C&F. Kiosk also does not come under the surveillance of the distributor. improving their range availability whilst reducing inventories. There are different channels of distribution like Modern Trade. who get the stocks directly from the company.
HLL's partnership with Self Help Groups of rural women. dispatches. to further increase its rural reach with the help of rural sub-stockists.15000 per month. Today. which also includes a back-end system connecting suppliers. HLL's end-to-end supply chain. For rural India. while ensuring superior availability and impactful visibility at retail points. Project Streamline. all company sites and stretching right Upto stockists. by unshackling the field force to solely focus on secondary sales from the stockists to retailers and market activation. The project. reaching about 250 million consumers. information sharing and monitoring. stockists have been connected with the company through an Internet-based network. The vision is to reach over 100. for online interaction on orders. RS Net is part of Project Leap. Karnataka Madhya Pradesh and Gujarat. HLL Way has also led to implementing best practices in customer management and common norms and processes across the company. thereby touching about 100 million consumers. the sales system gets to know every day what HLL stockists have sold to almost a million outlets across the country. with long-term benefits. For this. and is being progressively extended. The SHGs have chosen to adopt distribution of HLL's products as a business venture. RS Net covers about 80% of the company's turnover. In a significant move. called RSNet.quantities. HLL has mounted an initiative. Distribution will acquire a further edge with Project Shakti. in the most cost-effective manner. the distribution network directly covers about 50. RS Net has come as a force multiplier for HLL Way.000 villages.000 villages. already covers over 5000 villages in 52 districts of Andhra Pradesh. A typical Shakti entrepreneur conducts business of around Rs. Powered by the IT tools it has further improved customer service. HLL has established a single distribution channel by consolidating categories. As a result. 54 . started in 2001. 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. It has already appointed 6000 such sub-stockists.
SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity). 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). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat) (Marketing Strategy. straightforward model that provides direction and serves as a basis for the development of marketing plans. health. Plans are being drawn up to cover more states. As most of these women are from below the poverty line. and live in extremely small villages (less than 2000 population). and provide products/services in agriculture.1000 per month on a sustainable basis. some of whom will also draw on the company for their livelihood. 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). and is almost double of their past household income. Once this is completed. this earning is very significant. This will both catalyse holistic rural development and also help the SHGs generate even more income. For HLL. 1998). the project is bringing new villages under direct distribution coverage. This model creates a symbiotic partnership between HLL and its consumers. insurance and education. SWOT ANALYSIS SWOT analysis is a basic.which gives her an income in excess of Rs. and helps build a selfsustaining virtuous cycle of growth. 55 .
image Organizational structure Key staff Access to natural resources Position on the experience curve Operational efficiency. 56 . and deter potentially devastating threats. a firm can better leverage its strengths. Factors should be evaluated across the organization in areas such as: • • • • • • • • • • • Company culture. capitalize on golden opportunities.The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. By understanding these four aspects of its situation. Internal Analysis . The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. 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.The internal and external situation analysis can produce a large amount of information. correct its weaknesses. and weaknesses may hinder it. much of which may not be highly relevant. 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.
57 .Usage rate/ wear rate is high and is Extracts. Opportunities can arise when changes occur in the external environment. Orchid 2.Strong Market Research (door to 1. and Honey to 3. Fruit Extracts.Lux is mainly positioned as beauty door sampling is done once a year in soap targeted towards women.An opportunity is the chance to introduce a new product or service that can generate superior returns.Many variants (Almond Oil. 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. 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 STRENGTHS WEAKNESSES 1. hence it Urban and Rural areas) lacks unisex appeal 2.Some variants like the sunscreen. generally mushy and soggy Saffron. Sandalwood Oil.External Analysis . Milk Cream.
An indication of this is that Fair (Camay.Positioning focuses on the attractive resulted in controversial interpretations 6.Lux must reinforce its also catering the beauty segment (also 58 .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.Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment) 8.Soap industry growing by 4% in India 2. it is having mass appeal/market presence across all segments (15% of the soap market captured by Lux volume) 9.Certain advertisements like the 3.High internal competition – Pears fast rate . P&G) and Lovely’s segment is increasing at a 2.Unique advantage of having access to resources and assets of HLL OPPORTUNITIES 1.Stock out problems .New entrants/local competitors/MNCs (sales / high.Beauty segment’s Annual Growth Rate (CAGR) is very would THREATS increase the competition Compounded 1.Though it is in popular segment.name a few) backed by HLL 4.Strong sales and distribution network the market recent one with Shah Rukh Khan of the message of the advertisement 5.Strong brand image beauty segment International variant did not do well in 4.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.
presence in the beauty segment samples from HLL stable) segment makes Lux vulnerable to 3. herbal soap etc 6.Retentive strategy required as the changing customer tastes soap segment is in the mature stage of 4.Level of servicing is high during sales promotion schemes – this could be brought down 59 .Excessive dependence on beauty 4.More promotions like price-offs and 3.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.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 Mysore Sandal Dov e Price Pear s Dettol Cinthol Sales Nirm Promotion a Breez e Lu x 60 .
Although Dove is ranked high on promotional parameter. 61 . Although economy brands like Breeze and Nirma scored well on the value for money aspect. they lagged behind on promotional aspects.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. They were rated as moderate both on promotional as well as value for money aspects. None of the other important brands could match it on promotion as well as value for money aspects. Cinthol and Dettol soaps formed the middle portion of the map. Pears due to its uniqueness as the only glycerin soap. Mysore Sandal soap was seen as a brand which has moderate value for money while it was left wanting in the promotional aspects. it was seen as an expensive proposition. finds only a certain set of buyers. It ranked low on both value for money and promotional parameters.
0% 40.DATA ANALYSIS RETAILER’S ANALYSIS (1)SALES PROMOTION SCHEMES OFFERED ON LUX Schemes_ Cash refund Cross promotion Price off Prizes 5.0% The primary analysis found that “Price off” is the best sales promotion schemes offered on Lux (40% of the retailers agreed on this).0% Product bundling 30.0% 10. “Product Bundling” was the next best with 30% of the retailers in favour of the same.0% 15.8. 62 .
3 months 15 days – 1 month More than 3 months 25. “More than 3 months” was the next best with 25% of the retailers in favour of the same.0% 60.0% 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).(2)NORMAL DURATION OF SALES PROMOTION SCHEMES Duration 1 month.0% 15. 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% 64 .0% 5.0% 75.
“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 .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).
0% The primary analysis found that sales promotion schemes offered on Lux caused an “Increase in sales” (75% of the retailers agreed on that).0% 15.Affect_on_Sales Can’t say Increase in sales No affect 10.0% 75. (5)COMMUNICATION OF SALES PROMOTION SCHEMES 66 . “Can’t say” was the next best opinion with 15% of the retailers in favour of the same.
0% The primary analysis found that “Wholesalers” were the best medium of communication of sales promotion schemes (40% of the retailers agreed on that).Communication Through print media Through wholesalers Through electronic media Through sales representatives 15. “Sales representatives” was the next best with 25% of the retailers in favour of the same 67 .0% 40.0% 20.0% 25.
(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)
0% 25.0% 71 .0% 55.0% 10.(9)INCENTIVES PROVIDED DURING SALES PROMOTION SCHEME Incentives_provided Cash discount Gifts Prizes Others 10.
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). (10)BEST SALES PROMOTION SCHEME 72 . “Prizes” was the next best with 25% of the retailers in favour of the same.
0% The primary analysis found that “Price off” is the best sales promotion schemes offered on Lux (55% of the retailers agreed on that).0% 15.0% 55.Best_schemes Cash refund Price off Product bundling Scratch card 10. “Product Bundling” was the next best with 20% of the retailers in favor of the same CONSUMER’S ANALYSIS 73 .0% 20.
(1)MOST PREFFERED CRITERION FOR SOAP SELECTION Most preffered criterion Advertisement Brand value 6.75% 2.75% 15.5% 28. 74 .5% Price Promotional schemes Benefits Color of soap Packaging Word of mouth 10.75% of the consumers agreed on that). “Brand Value” was the next best with 15% of the consumers in favour of the same.5% Fragrance of soap 7.0% 12.0% 13.25% 3.75% The primary analysis found that “Price” is the most preferred criterion for soap (28.
0% 23.0% 50.(2)PERCEPTION ABOUT LUX Perception about Lux Beauty soap Nothing specific Soap for all Soap of filmstars 15.25% The primary analysis found that the major perception about Lux is that as a “Beauty Soap” (50% of the consumers agreed on that).75% 11. “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.75% of the consumers 76 .25% of the consumers and “No” for 9. 8.75% 91.25% The primary analysis found that advertisement recall of Lux was “Yes” for 91.
77 .(4)MOST EFFECTIVE MEDIUM OF SALES PROMOTION Most effective medium for promotion Personal selling Advertising Sales promotion 10. “Sales Promotion” was the next best with 31.0% 31.75% of the consumers agreed on that).25% 58.75% The primary analysis found that “Advertising” is the most effective medium for sales promotion (58.25% of the consumers in favour of the same.
75% 42.75% 6.5% 15.25% 12.5% 3.0% 78 .25% Cash refund Cross promotion Price off Prizes 13.(5)PREFERENCE OF PROMTIONAL SCHEME Preference of promotional schemes Discount coupons Free trial Scratch card 6.
5% of the consumers agreed on that). (6)PERCEPTION ABOUT CHANGE IN QUALITY DURING SALES PROMOTION SCHEME 79 . “Cross Promotion” was the next best with 15% of the consumers in favour of the same.The primary analysis found that “Price Off” is the most preferred promotional scheme (42.
Perception about change in quality Superior No change 6. “No change” was the next best with 6.75% The primary analysis found that the perception about change in quality during sales promotion scheme was “Superior” (93.25% of the consumers in favour of the same (7)TYPE OF IMPACT 80 .25% 93.75% of the consumers agreed on that).
25% 13.Type of impact No change in buying behavior Buy it during sales promotion offer Continue buying even after sales promotion offer is scrapped 26.25% of the consumers in favour of the same.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).75% 21.75% Makes you switch to Lux 38. “No change in buying behaviour” was the next best with 26. 81 .
25% Through print media Through sales representatives 26.(8)COMMUNICATION OF SCHEME Communication of schemes Through company’s stall 3.25% 58. “Through print media” was the next best with 26.75% The primary analysis found that the communication of schemes should be “Through electronic media” (58.75% Through electronic media 11.75% of the consumers agreed on that).25% of the consumers in favour of the same 82 .
25% of the consumers in favour of the same. (10)COMPARISION WITH COMPETITORS 83 .(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.
“Similar and more frequent” was the next best with 35% of the consumers in favour of the same 84 .75% of the consumers agreed on that).5% The primary analysis found that Lux’s promotion schemes were “Superior and more frequent” vis-à-vis its (48.75% 12.75% Superior and less frequent Superior and more frequent 35.0% 48.Comparison with competitors Similar and less frequent Similar and more frequent 3.
25% of the consumers agreed on that).25% 2.5% The primary analysis found that “Adults” were the most affected upon by sales promotion 56.25% 2.5% Kids 32.(11)AFFECT ON AGE GROUP Affect on age group Adults Older people Youngsters Adults 6. “Youngsters” was the next best with 32.5% of the consumers in favour of the same. 85 .5% 56.
5% 32.5% 2. 86 .5% of the consumers in favour of the same.5% 15.(12)PRICE OF SOAP Price Dissatisfied Neutral Satisfied Very satisfied 7.0% The primary analysis found that the customers perceived the price of soap to be “Satisfactory” (42.5% of the consumers agreed on that).5% Satisfied 42. “Neutral” was the next best with 32.
25% 47.25% 5.5% 26.(13)DISTRIBUTION NETWORK Distribution Network Neutral Very satisfied Dissatisfied Satisfied 21.0% 87 .
“Very Satisfied” was the next best with 26.5% of the consumers agreed on that).The primary analysis found that the customers perceived the distribution network of soap to be “Satisfactory” (47.25% of the consumers in favour of the same (14)QUALITY 88 .
Quality Neutral Satisfied Very satisfied Dissatisfied Satisfied 23. “Neutral” was the next best with 23.75% of the consumers in favour of the same.5% 7.5% of the consumers agreed on that).5% 8.5% 12. 89 .75% 47.75% The primary analysis found that the customers perceived the quality of soap to be “Satisfactory” (47.
25% The primary analysis found that the customers perceived the advertising of soap to be “Satisfactory” (56.(15)ADVERTISING Advertising Dissatisfied Neutral Satisfied 17.25% of the consumers in favour of the same 90 .5% 56. “Neutral” was the next best with 26.25% of the consumers agreed on that).25% 26.
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% 7.5% 63.25% of the consumers in favour of the same. 91 .(16)PROMOTIONAL SCHEMES Promotional Schemes Satisfied Very satisfied Dissatisfied Neutral 21.75% 7.
Also the importance of the role of mass media came out clearly in both the studies. 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. the finding suggested that premium (free gift) was popular with companies.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. Also the person going to the shop for the purchase of soap is the final decision maker of the brand. So it is necessary that the perceived value of a free gift has to be appealing and high for the target consumers. With respect to nature of scheme. striking. it needs to ensure the quality of the product from it as it is likely to jeopardize the image of both its products. When the company is giving its own product free as premium. money and energy on sales promotion activities. Hence it is essential that companies need to design mattractive. 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 . visible POPs for scheme announcements. Only after this should he spend time. While both retailers and consumers preferred price offs. 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. 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.9. 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.
particularly when additional handling. 93 . Through dealers and proper feedback mechanism. This implies that the retailer would be a rich source of information about the consumer and the likely response to 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. companies keep in touch with the market. As retailing is fragmented. direct reach by companies is next to impossible.retailer level. It can be seen that the retailer and consumer perceptions matched with respect to preferences of schemes. 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 .clearing excess stocks. accounting was required on the part of a retailer without compensatory margins. perceptions of retailers as well as consumers. underlying motivations and role of mass media. stocking. From the study it was found that smaller retailers felt neglected and not enthused to implement the schemes. 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.
(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.RECOMMENDATIONS (1) They should provide more promotions like price-offs and samples.10. (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 . herbal soap etc.
95 .(6) It is having only 19.8 % rural market presentation which could be further enhanced .
hll.REFERENCES 1.indiainfoline. Implementation and Control.” Harvard Business Review. “Sales Promotion fast growth faculty management.. th 2.com 4. 1997. Planning. 1976. www. Prentice Hall of India. “Marketing Management : Analysis.com 96 . www. 3. Kotler Phillip.” 9 ed. Strang Roger.
Questionnaires Used RETAILER’S QUESTIONNAIRE Name :…………………………. …………………………………… 97 .:………………………………….APPENDIX 1. Shop’s Name :………………………………….. Address: ………………………… Contact No.
……………………………………. (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 .
............................................................... .. Age:......... Contact No:................................................................................................(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 : ......................................................... .............................. 100 ................................................................. (1)Which brand of bathing soap do you use ?............................ Sex:..................... Address: ............................
......... (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. allot the points according to your preference on the following promotional schemes? (a) Price off (b) Discount coupons (c) Contests (d) Scratch card 101 ...................... (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..............(2) Is the same brand of soap used by your other family members? If not ....... which brand of bathing soap do they use?...................... (b) No................
(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 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 dissatisfied Satisfied Neutral Dissatisfied Very (a) Price (b) Distribution Network (c) Quality (d) Advertising (e) Promotional Schemes 103 .
APPENDIX -2 104 .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.