LUX :BEAUTY BAR OF FILMSTARS A STUDY

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TABLE OF CONTENTS
Executive Summary 1. Objectives of the Study 2. Scope of the Study 3. Limitations of the Study 4. Methodology 5. Abstract 6. Company Background 7. Four P’s • • SWOT Analysis Perceptual Mapping

1. Data Analysis 2. Conclusions 3. Recommendations References Appendix

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EXECUTIVE SUMMARY

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iii) To study consumer perceptions regarding various schemes on Lux and responses toward them. the sample size was restricted to 80 consumers (mostly student group) and 20 retailers. (2) The sample chosen may not be the true representative of the whole population. 2. LIMITATIONS OF THE PROJECT (1) Response biasness could be one of the limitations. the generalizations drawn are only indicative and not conclusive. Focus being mainly on in-depth probing. OBJECTIVES OF STUDY The main objectives of the study are: i) To assess the consumer sales promotion schemes offered on Lux. 4 . SCOPE OF THE STUDY The geographical scope of the study was restricted to the Ghaziabad & Delhi due to time and resource constraints. 3. The study being exploratory in nature.1. ii) To get an insight into retailers’ views regarding the schemes being offered on Lux.

1. Twenty retailers ranging from small kirana store to big provision stores were approached.(3) As the research was exploratory in nature. 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. The idea was to probe and get deeper insight into sales promotion scenario of Lux and to tap perceptions of retailers and consumers. it was not possible to study the accurate phenomenon of the fact. 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. Convenience sampling was used for both retailers as well as consumer studies. METHODOLOGY In order to address the above questions an exploratory study was conducted. (ii) Responses of retailers were taken using structured questionnaire and (iii) Structured questionnaire was designed to seek consumer responses. 5 . The total respondents were 80 in number.

Inscriptions on the cylinders say that fats were boiled with ashes. the earliest people lived near water and knew something about its cleansing properties . 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. Rain washed a mixture of melted animal fat. ABSTRACT The origins of personal cleanliness date back to prehistoric times. or tallow. where animals were sacrificed.2. which is a method of making soap. Some of the early instances of commercial manufacturing of soap are: In Britain references began to appear in the literature from about 1000AD. Soap got its name. but do not refer to the purpose of the "soap.C. Since water is essential for life.at least that it rinsed mud off their hands. and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort. 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 6 ." Such materials were later used as hair styling aids. according to an ancient Roman legend. from Mount Sapo.

he commenced production of a transparent soap at a factory in Wells Street. and by the Thames at Blackfriars Andrew pears. 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 INTRODUCTION Understanding perceptions of channel members and consumers regarding sales promotion activities enhances the effectiveness of these activities. with other sites at Cheapside. followed by price offs. In line with the retailers’ perceptions. the findings of consumer perceptions indicated that price off was the most preferred type of sales promotion. In this paper. 3. In 1789. Other early centers of production included York and Hull.A century later soap making was reported in Coventry. study retailer perceptions with respect to these activities and also get an insight into consumer perceptions of these activities. where there existed Soper's Lane (later renamed Queen Street). Retailers perceived price offs to have relatively greater impact compared to any other forms of sales promotion. an attempt has been made to examine the nature of sales promotion activities in toilet soap category in India. off Oxford Street and became hugely successful. Our findings indicate that with respect to the nature of the schemes. In London a 15th century "sopehouse" was reported in Bishopsgate. premiums (free gifts) were found to be the most frequently used in both premium and popular toilet soap category. Retailers stated that role of word of mouth and television advertising was very important in providing information inputs to the consumers regarding 7 .

sales promotion activities took the front seat of promotional mix Companies planned these activities with inward looking view hence it was felt that it would be useful to understand the perceptions of consumers and retailers regarding sales promotion activities to improve the effectiveness of these activities. HINDUSTAN LEVER LIMITED In the summer of 1888. whenever there was a downward trend in growth. Lux and Vim.) The widespread use of sales promotions in toilet soap category Historically. Vanaspati was launched in 1918 and the famous Dalda brand came to 8 . followed Lifebuoy in 1895 and other famous brands like Pears. The reasons for the study were: i) ii) iii.sales promotion activities. embossed with the words "Made in England by Lever Brothers". 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. With it began an era of marketing branded Fast Moving Consumer Goods(FMCG). This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. As the retailer interacts and observes consumers more frequently and closely than the manufacturer. visitors to the Kolkata harbor noticed crates full of Sunlight soap bars. Soon after. it would be useful for the companies to incorporate perceptions while planning sales promotion strategies.

The rest of the shareholding is distributed among about 380. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).In 1931.55% equity in the company. The growth process has been accompanied by judicious diversification. started in 1991. deregulation permitted alliances. always in line with Indian opinions and aspirations. Brooke Bond & Co. These three companies merged to form HLL in November 1956. Unilever now holds 51. By 1903. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. Hindustan Vanaspati Manufacturing Company. acquisitions and mergers. being the first among the foreign subsidiaries to do so. HLL has vigorously responded to the stimulus of economic growth. The liberalization of the Indian economy. clearly marked an inflexion in HLL's and the Group's growth curve. In one of the most visible and talked about events of India's corporate history.000 individual shareholders and financial institutions.the market in 1937. In 1912. without any constraints on production capacity. The erstwhile Brooke Bond's presence in India dates back to 1900. Unilever set up its first Indian subsidiary. Simultaneously. the 9 . Since the very early years. the company had launched Red Label tea in the country. HLL offered 10% of its equity to the Indian public. The erstwhile Lipton's links with India were forged in 1898. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. India Limited was formed.

with significant interests in Instant Coffee. two plantation companies of Unilever. In 1993. HLL has also set up a subsidiary in Nepal. Nepal Lever Limited (NLL). 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. The 1990s also witnessed a string of crucial mergers. were merged with Brooke Bond. Subsequently in 1998. HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994 . effective from April 1. the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk 10 . Lakme Limited. the erstwhile Brooke Bond acquired Kothari General Foods. By the end of the year. which markets Huggies Diapers and Kotex Sanitary Pads. Lakme Lever Limited. and its factory represents the largest manufacturing investment in the Himalayan kingdom. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). enabling greater focus and ensuring synergy in the traditional Beverages business. Detergents and Personal Products both for the domestic market and exports to India.Kimberly-Clark Lever Ltd. formed a 50:50 joint venture.erstwhile Tata Oil Mills Company (TOMCO) merged with HLL. Then in July 1993. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. 1993. Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. Tea Estates and Doom Dooma. HLL and yet another Tata company. In 1992. acquisitions and alliances on the Foods and Beverages front. As a measure of backward integration. it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. The NLL factory manufactures HLL's products like Soaps. In 1995.

The amalgamation was done to ensure for the Group.food 100% Ice-cream marketing and distribution rights too were acquired. Specialty Chemicals and Exports businesses. The two companies had significant overlaps in Personal Products. The two also had a common management pool and a technology base. besides a common distribution system since 1993 for Personal Products. a leader in value added Marine Products exports. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998. HLL acquired the government's remaining stake in Modern Foods. HLL's entry into Bread is a strategic extension of the company's wheat business. Finally. In 2002. In 2003. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000. with effect from January 1. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. MARKET SHARE OF VARIOUS COMPANIES (TOILET SOAPS) HLL GODREJ WIPRO NIRMA OTHERS 11 . in a historic step. HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies. 1996. the government decided to award 74 per cent equity in Modern Foods to HLL. BBLIL merged with HLL.

The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. Actor Hema Malini says. Juhi Chawla. Hema Malini. Nargis. Saira Banu. Madhuri Dixit. Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. 8 /75 gms 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.Price segments of toilet soaps Segment Premium Popular Economy Price/weight > Rs. Mala Sinha. Lux became a household name across the country. From the beginning. 8-15/75 gms < Rs. Great brands sometimes outlast their ambassadors as proven by Lux which is celebrating its 75th anniversary in India. “One of the turning points in my career was when I was signed up by Lux. Sharmila Tagore. Aishwarya Rai and Kareena Kapoor. Zeenat Amaan. 15 / 75 gms Rs. Sridevi. Meena Kumari. It was then that I knew I had made my mark in 12 . Waheeda Rehman. The brand has outlasted many soaps. The first ambassador.

13 . Sandalwood Oil and Honey.Indian cinema as a leading lady. Shah Rukh Khan. Lux Toilet Soap.Aromatic Glow and Chocolate Seduction and Lux White Spa body wash containing exotic ingredients. To be a Lux star is a much sought after honour amongst leading ladies and it truly means a lot to me. to say. The first Lux bar made in India was sold for the princely sum of two annas in 1934. Lux is the biggest brand in the soap category.” After 50 Indian female actors lathering up with Lux. 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. Fruit Extracts. Orchid Extracts. Ab batayein aapka favourite Lux Star kaun hai? (I want to tell you about my beauty secret — Lux. Milk Cream. Ginger Rogers became the first Hollywood great to appear in a Lux commercial. The Lux premium range offers specialized skincare to its consumers in the form of Lux International. Who is your favourite Lux Star?)” In 1926. in the popular segment. LUX: VARIANTS In the country since 1929 and endorsed by popular film stars. “Aaj mein aapko batanewala hoon meri khubsuratein ka raaz — Lux. Saffron. it is now the turn of a male actor. The Lux Celebration Range is a set of three exclusive variants. 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.

LUX : COMPETITOR ANALYSIS NIRMA Nirma Since the early nineties. wrapped and carton sealed for dispatch. Nirma had invested in the latest soap manufacturing plant in the world the first of its kind in India. Nirma has so far managed to snatch 9 per cent share of market. 14 . While leading manufacturers like HLL and Godrej continue to rely on batch manufacturing. Nirma had sourced the latest Italian technology from Binacchi and CMB and set up a finish line that produces 500 toilet soaps per minute. Almost as an answer to the general perception of low quality. Nirma has been challenging the hegemony of Hindustan Lever. which holds over 54 per cent share of the toilet soaps market.

this brand. Nirma entered this market with the launch of ‘Nirma Bath Soap’. Although the carbolic soap segment is on decline.” Nirma introduced ‘Nirma Beauty Soap’ in the year 1992. this soap has a Total Fatty Matter (TFM) of 60 %. this soap has a TFM content of 70%. Better Living. Packed in a red color wrapper and available in 75 gram and 150 gram pack sizes. Better Value. In 1992. Nirma Beauty Soap: With its market promise to offer “Better Products. within a short span of five years. Nirma Bath has generated larger volumes each year. Due to its admirable perfume and a higher TFM content. had achieved the status of the third largest selling toilet soap brand and still continues its outstanding performance Nirma Lime Fresh Soap: 15 . sensing a strong need to expand the market through Penetrative Pricing. Available in three different variants and pack sizes. which is a carbolic (Red) soap.Nirma Bath Soap: Toilet soap market in India was dominated by a very few MNC’s which could monopolistically price their product.

This product had created a sensational marketing history in the Indian Toilet soaps market. 16 . The high TFM content of this product allows a consumer to have pleasant bath. Nima Sandal. this soap is available in green colour. July-September 1998). It is available in 100g and 150g pack sizes. this soap contains 80% TFM. 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. Seventeen million packs of Nirma Lime Fresh soap were sold in the very first month of its soft launch. 1998. This brand had carved a niche in its segment by achieving leadership position just within two months of its launch. (as featured in The Strategist Quarterly. Packed in a poly coated 75 gm carton. as ranked by the Business Standard Marketing Derby. which is printed on the world’s best Cerruti 8-colour printing machine. being ranked as the Seventh Most Successful Brand Launch for the year 1998. The product launch of Nirma Lime Fresh had been extremely successful. Nima Rose soap has got an exceptionally soft rose fragrance – which remains around body for a long time even after bath. With a lime aroma that tingles in one’s sensory buds for a long time. when it was launched in 1997.

the Patels quickly hit back at Levers freshness plank.50. Nirma Lime Fresh sold for Rs 8.50 and a total fatty matter (TFM) content of 70 per cent. This toilet soap has 80% TFM content. When Lever made an assault on Nirma Beauty Soap with its Breeze. but while Liril sold for Rs 12. Nima Lime Fresh was aimed at the popular segment of the toilet soaps market.000 tonnes. This is Nirma's fourth brand launch in the toilet soaps market.Over the period. Rose. in the key markets of Gujarat and Maharashtra. making it the3rd largest soap brand after Lux and Lifebuoy. It is a premium product from Nima stable and is available in 100g and 150g packs. With a wrapper price of Rs 6. Nirma followed it up with Nirma Premium. 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. Nima Sandal is a one of such product in floral segment. It marked its foray in the early nineties by launching Nirma beauty soap to take on Lever's best selling brand. Nirma introduced a new soap brand. while Levers Lux sold for Rs 8. Nirma Lime Fresh was positioned against Levers Liril Lime Fresh. Nirma used actress Sonali Bendre in its advertising. It promises benefits of Sandal oil & Turmeric powder. Nirma Beauty Soap carried a MRP price tag of Rs 7 and was sold at Rs 6. Nirma Beauty soap sells whopping 45. Nirma Lime Fresh. Lux. 17 . Breaking away from tradition. The company has expanding into other segments of the fragmented five lakh tonne soap market. with rich & exotic fragrance. It launched Nirma Beauty soap in the premium segment. etc. Today. Jasmine. Imitating Levers time-tested strategy. Nima Lime. Indian toilet soap market has fragmented & has seen emergence of prominent floral fragrance segments as Sandal.

).T. has created marketing history as one of the most successful innovation.1 18 .P. Once the archrival of HLL.0% in FY 2004-05 from 6. in toilet soaps.(GCPL) is a major player in the Indian FMCG market with leadership in personal. Market share in Toilet soaps grows to 8.8% in FY 2003-04.) Guwahati (Assam) and Silvassa (U. All three Power brands have begun to perform strongly. Their FAIRGLOW brand. with a market share of around 8 per cent. it now occupies the number three rank. India's first Fairness soap. However. GCPL is a relatively small player compared to HLL.GODREJ Godrej Consumer Products Ltd. hair. household and fabric care segments. Godrej is among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL. Godrej No. The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M. after HLL (54% market share) and Nirma (9% market share). GODREJ NO 1. FAIRGLOW.

simply through a daily bath. specially formulated to cater to special skin types. Jasmine. It is a quality Grade 1 fairness product having 76% TFM (Total Fatty Matter). Godrej No. glowing complexion. It has a pleasant fragrance and is white in colour. Natural and Ayurvedic packed with the goodness of natural ingredients. In addition. Fairglow The Godrej FairGlow fairness soap contains a powerful fairness ingredient ' Natural Oxy-G '.1 is available in five variants enriched with natural ingredients. Cinthol lime fresh 19 . it also removes blemishes to give you a clear. which makes you fairer by reducing the dark melanin without changing the skin's natural balance.1 Beauty Soap stands for True Natural Beauty. Godrej FairGlow Soap was India's first and is the largest selling fairness soap. Sandal.Godrej No. Rose. It helps you become fairer in a convenient way.

Wipro Consumer Care promises moving into top gear. But its low market share. The soap has an excellent long-lasting lime fragrance that keeps you feeling fresh throughout the day. Milk and Roses. The new variant offered the combined benefits of sandal and besan. After lying dormant for a decade.a sandal and besan variant.With the extracts of real lime. WIPRO Wipro Consumer Care is yet another principal player enjoying a five per cent market share. Santoor's market share is around three per cent. Santoor soap The magic of Sandal & Turmeric comes together in Santoor . the company argues. 75g and 125g. Chandrika. This makes for an invigorating bath that kick starts and gets you ready for the day. Cinthol Lime Fresh provides deep cleansing along with active freshness and vitality.a soap that nourishes make you look much younger. Wipro has three important brands of soap in its portfolio: Santoor. Santoor offered a combination of sandal and turmeric. has to be seen in the 20 your skin with Sandal and Turmeric to . Wipro later introduced a new variant of Santoor . With TFM 76% this Grade1 soap is available in 50g.

happened around mid-1990s. an outcome of limited resources. sports contemporary packaging. Around this time. a new 21 .Milk&Roses gives you glowing skin that puts even jewellery to shame! Available in milky white and glowing pink. the company took a conscious decision to follow a state-oriented strategy Santoor Chandan A premium soap manufactured with extracts of Sandalwood oil. Milk & Roses soap The nourishment of milk and the softness of roses . now marketed by Wipro Consumer Care and Lighting. the 65-year-old brand. Chandrika The world’s first Ayurvedic soap brings you the goodness of nature to give you healthy and glowing skin. Chandrika. This.context of its regional presence. Santoor Chandan has a strong lingering fragrance and is a favourite of discerning customers. as the first round of revival began.

a niche player in the Indian soap market owns the well known brand ‘Dettol’. The Dettol Extra Soap is an extension of the company's existing range of soaps under Dettol brand.the marketer of personal care products. Its latest range is a combination of moisturizing glycerin. the floral fragrance is aimed at making the user feel cared-for and looked-after.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. Long-lasting and refreshing.15. The price is Rs. 22 . It had launched a new product . making it easy to hold. A 75 g bar is priced at Rs.17 for a 100-gm cake. OTHERS Colgate-Palmolive (India) Ltd. Palmolive has been the pioneer in introducing soaps for different skin types (example Palmolive Extra Care for Dry Skin. The soap has a pleasant new fragrance and a convenient saddle shape. Reckitt Benckiser . offers ‘ultra modern’ line of Transparent Palmolive Natural skincare soaps. essential oils and a mixture of premium natural herbs and flowers. for Oily Skin and for Normal Skin). It is available in two variants – ‘Relaxing’ and ‘Soothing’.Dettol Extra Soap.

Achievements 23 . FOUR P’s OF LUX Market The personal wash market is valued at Rs. 45 billion (Source: ORG-MARG). It is a highly penetrated market though per capita consumption lags even South Asian countries like Indonesia. The market has seen stagnant sales over the last four years and the low entry barriers have led to intense competition between national and local brands.7.

Popularly known as ‘the beauty soap of film stars’. The first bar of Lux was made in India and sold for a princely sum of two annas in 1934.‘the beauty soap of film stars’. Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux during the course of a year. The last three years have seen Lux continue to grow far ahead of the market. 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 . This strong association with consumers has led to Lux becoming one of the most trusted brands in the country. History Lux soap was launched in India in 1929. Since its launch in India. luxurious bathing. has been the other growth driver. Lux has been a favorite with generations of users for the experience of sensuous. The introduction of new perfume and ingredient variants. however. From the very first advertisement in 1929 featuring Leela Chitnis.Lux is the largest personal wash brand in the country with a value share of 17%. Desirable product sensorials. Lux has offered a range of soaps in different colours and fragrances. addressing new benefit segments. 5 to bring it within the reach of 300 million rural consumers. offered the same benefit of beautiful skin. It has gained close to 4% share in this period. 24 . They have each. especially its world class fragrances and nourishing ingredients. have made the Lux bath a pleasurable experience. the gorgeous faces of the silver screen have come out in the open with their beauty secret – Lux. A key initiative that has fuelled this growth has been the launch of Mini Lux – strategically priced at Rs.

Lux launched a range of premium soaps to suit their different skin types. to tap into this segment. events. places. services. information and ideas. organizations.But Lux being the market leader has evolved along with the changing needs of its consumers. persons. experiences. In 1989.Products that are marketed include physical goods. properties. The FOUR P’s (A)Product A product is anything that can be offered to a market to satisfy a need or want. 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. Product Classification 25 .

price and style. quality. 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. Specialty Goods: Have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. immediately and with a minimum of effort. Unsought Goods: Are those the consumer does not know about or does not normally think Of buying LUX and other soaps fall into the category of Convenience Good Product Life Cycle LUX Beauty Bar is in the maturity stage of its life cycle whereas the LUX Bodywash is in the growth stage. Non Durable Good on the basis of this classification. tangibility. and use.Marketers have traditionally classified products on the basis of characteristics: durability. LUX is a Tangible. in the process of selection and purchase characteristically compares on the bases of suitability. Shopping Goods: Are goods that the consumer. 26 .

LUX Body Wash LUX Beauty Bar Product Line Soaps: 27 .

Form.Lux Lux Lux Lux Lux Lux Lux Lux Lux Almond Orchid Fruit Saffron Sandalwood Rose International Chocolate Aromatic Extracts Extracts Glow Oil and Honey Bodywashes: International International Lux Bodywash Bodywash White Spa Moisture International Lux Bodywash Rich Moisture Lux Fresh Shampoos: Lux Super Rich Lux Jasmine LUX Beauty Soap. Features. Style 28 .

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. almond oil. deep cleansing and sunscreen soaps. fruit extracts and honey which are known to harbour the secrets of incredibly perfect skin. 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. the offerings made by Lux have always been superior and have always led the market. Lux has beauty offerings in two of the four market segments – popular and premium. spanning the needs of varied consumers. milk cream. setting benchmarks for competition.With icons of beauty endorsing the brand. Keeping in tune with the changing times it has also launched Lux Body Wash which offers superior bathing benefits. 29 .

90 for 250 ml and Rs. The new International Lux Body Wash comes in two rich variants. And Fresh Moisture exudes the tingling freshness of orange peel extracts. is differentiated on the basis of its ingredients. These create an experience in pampering indulgence and luxury designed to bring out the star in every woman. 49 for 150 ml respectively International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. Each of the soaps in the range has milk cream. ‘ingredients you can see in the soap’. The art of styling skin and giving it that enviable glow. with each elegant bottle comes a free loofah. was born.To establish the presence of nourishing ingredients in the new Lux. It is priced at Rs. International Lux Body Wash – the last name in luxury It is the next revolution in the realm of personal care. a unique concept. To ensure a complete skin styling experience. almond oil and fruit extracts. 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. a premium variant of the toilet soap. Though Lux International. 30 . the popular version. Lux Beauty Bar was always projected as a “pure and mild” solution to soft and smooth skin. sandal saffron. Rich Moisture embodies an exotic combination of green apple and orchid extracts. launched in 1989. A novel metallic substrate packaging beautifully showcased the ingredients and its globally accepted ingredient-linked perfumes heightened the sensorial experience. with the active ingredients of rose extracts.

Packaging A novel metallic substrate packaging beautifully showcases the ingredients. 120g. A novel metallic substrate packaging showcases the ingredients. place of manufacture have been listed. Also listed is the consumer complaint cell address in case of unsatisfactory product. The ingredients.The Bars come in package sizes of 100g. pink for the rose extracts etc. The colors are different for different variants such as saffron for the saffron variant. Also diplayed graphically are the key ingredients.Trade Character Labelling The LUX Trade Character or Logo is present prominently on the package. A female model is shown on the pack. 150 g 31 . in case of the soaps. and a female model is shown on the pack.

The LUX Body Wash comes in an exquisitely designed bottle with the trade character prominently displayed. Lux has launched a 45g variant called Mini Lux priced at Rs. 5 32 .

the company identified two sets of consumers. helped in timing the relaunch.Developing New Variants The new Lux Beauty Bar is significantly better on all aspects including aesthetics. HLL’s structured innovation programme was the driving force. This flag-bearing programme according to the company. but could shift upwards if a better product was offered in the popular segment. “The entire relaunch exercise was aimed at delivering a superior mix. Lux is always a step ahead of trends rather than following the trend. 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. The other was the target segment which would be the source of growth for Lux. One was the loyal base of existing Lux Beauty Bar consumers. which charts the route for every HLL brand’s progress. which would tap into this source of growth.” 33 . For instance. Also by using brand-oriented research. It would rather orient and direct the change rather than follow it. sensorials. This segment comprised of those customers who were buying soaps in the subpopular segment. value for money. perfume and ingredients. skin care. The company claims that a new initiative behind Lux beauty bar was always in the offing. A company executive says. market conditions notwithstanding. works eight to 12 quarters ahead of the company’s brands. This programme.

they say that the honey variant is yet to catch on. Though retailers in Mumbai spell Lux on their list of best sellers. quality of lather. This helped in the delivery of the new product. sandal and saffron were considered. With its latest stance. These included moodenhancing perfume positioning. While the target segments remain the SEC B. honey and milk cream were the chosen ones. Several options were considered for the Lux relaunch. long-lasting. The company says that after scanning 60 or 70 options across both national and international markets almond oil.The consumer needs and triggers which were identified included: fragrance. value for money product. Skin-care based ingredients like glycerin. 34 . 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. as the consumer has never associated with Lux’s black colour packaging. familiarity and belief were factors that translated into a sense of reliability and quality. C and D. the company is banking on the sub-popular segment soap buyers to buy into the new Lux.

(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 35 .

LUX ADVERTISEMENTS THROUGH THE AGES 36 . Ads can be a cost effective way to disseminate messages. goods and services by an identified sponsor.Advertising Advertising is any paid form of non-personal presentation and promotion of ideas. 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 37 .

WAHEEDA REHMAN IN A LUX PRINT ADVERTISEMENT VYAJANTIMALA IN A LUX PRINT ADVERTISEMENT 38 .

SAIRA BANO IN A LUX PRINT ADVERTISEMENT 39 .

KARISHMA KAPOOR IN A LUX PRINT ADVERTISEMENT: INSET LUX PRINT ADVERTISEMENT FEATURING BABITA 40 .

AISHWARYA RAI IN A PRINT ADVERTISEMENT FEATURING LUX INTERNATIONAL KAREENA KAPOOR SHOWCASING THE LATEST CHOCOLATE VARIANT BY LUX 41 .

42 . which transports the user into a fantasy world of icons. An ode to their beauty.Advertisement Analysis • • • USP or the common thread through all the advertisements is the Presence of Movie Stars through the ages. it was natural that the brand has built equity as the best beauty soap in India. from Babita to Karisma and Kareena having endorsed the goodness of Lux over generations. From the beginning Lux. has fulfilled the consumers’ aspirations of using beauty soaps via the rationale ‘if it’s good enough for a film star. This later moved into a transformation role of having a bath with Lux. The product has been positioned on the basis of REFERANCE GROUP by using a celebrity popular at that point in time. With top movie stars – from Madhubala to Madhuri. promising their beauty and complexion to ordinary women. Some amount of attribute positioning by mentioning the various ingredients has also been done Lux campaigns have wooed millions of people over the decades. film stars and fairy lands. an announcer of their stardom. by using a leading film star of the time. it’s good for me. advertising campaigns on Lux have featured film stars across the nation. Popularly known as the beauty soap of film stars. Lux has been an intimate partner of the brightest stars on the silver screen for decades.

Thus. In addition to this.Change in communication strategy However. 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 is used purely as a communication device to portray star quality in every Lux user. the communication was slowly seen to be losing relevance. With the new communication strategy. The film star still features in the new communication but not as her gorgeous self but rather as an alter ego/projection of the protagonist (a regular girl). for a few seconds of the entire ad. several competitive beauty soap brands had begun advertising using similar methods of communication. 43 . This promise goes beyond the functional deliverables of soap. is a change from the norms set by Lux advertising in the past. an ordinary woman can impact her world with her own star quality. This idea – bring out the star in you – puts the consumer at the heart of the brands’ promise. beyond bathing and the bathroom to the world outside. The move away from the film star and her fantasy world to a regular Lux user. the global brand team for Lux developed a new communication strategy. for the first time the film star was used as a communication device and not as the main feature of the ad. In this context. as consumers were beginning to question if the film star actually used the brand. with the focus on the protagonist’s star quality. It’s a world where with Lux on her side. This is a successful attempt to bring the brand closer to its users and to give it a more youthful and contemporary image.

' which. they have Shah Rukh. Shah Rukh is a big draw and women just love him.Breaking away from tradition. will change the fortunes of the languishing brand. The target audience for Lux is women. the ad agency for Lux. which turned 75 this year. HLL resorts to a male and metro sexual Shah Rukh to revive Lux. After intense brainstorming by the company's brand team and JWT. Hindustan Lever has decided to break away from tradition. hopefully. instead of a female star in the tub. 44 . Shah Rukh is a great favourite with women of all ages. CELEBRATING 75 years of the Lux brand. Increasing competition and lack of innovation in the soaps category has led the FMCG biggie to try out something `new. So the strategy for Lux has not really changed. It is just the execution that is very different. 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 Khan was seen as the right connect.

fraternity who feel the ad could have had a story line and been made aesthetically more appealing. 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. The FMCG giant topped the list of India‘s leading advertisers with a combined TV and press ad spend of Rs.517 crore last year. And it has used male stars in the past in international markets. the idea was to portray the metro sexual male who had a soft touch. Sales Promotion 45 . the new campaign with Shah Rukh is intended to help in reviving the heritage brand. Apart from the events and promotions. So while it is a big departure.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'). And the ad is not claiming that SRK is using the brand. And it's not about Shah Rukh the star but the kind of person that he is. Shah Rukh has been portrayed as a different kind of male who is different from the rest of the stars. In fact HLL upped its spend by 30. "Instead of showing Shah Rukh as a macho man riding a horse like the Marlboro man. He is not shown using the soap. is what the Lux brand hopes to integrate into its new campaign. Despite constantly declining net profitability. it is with a reason. which has always relied on film stars for its ads. To quote the marketing of HLL.5% in ‘04 to Rs.396 crore in ‘03. one word that comes to mind is mammoth. He is merely in a bath tub surrounded by the Lux stars. So it is a device to inject a bit of novelty and `buzz value' into an old brand. HLL has retained its stronghold as country‘s biggest advertiser in 2004.

consists of a collection of incentive tools. sales promotion offers an incentive to buy.Sales promotion. Whereas advertising offers a reason to buy. a key ingredient in marketing campaigns. designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. 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 46 . mostly short term.

Sales promotions often attract brand switchers. and to increase the repurchase rates of occasional users. They enable manufacturers to test how high a list price they can charge. or premiums. In addition to brand switching. consumers may engage in stockpiling. such as everyday-low-price store and the promotional pricing store. 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. reward loyal customers. Sellers use incentive type promotions to attract new trials.BUSINESS AND SALES-FORCE PROMOTION • • • Trade Shows and Conventions Contests for Sales Reps Specialty Advertising Objectives of sales promotion: Sales Promotions vary in their specific objectives. because they can always discount it. good value. They lead to more varied retail formats. who are primarily looking for low price. promotions may increase sales of 47 . A number of sales promotion benefits flow to the manufacturers and consumers. Sales promotions enable manufacturers to adjust to short term variations in supply and demand. Sales promotions are generally unlikely to turn them into loyal users. They induce consumers to try new products instead of never straying from current ones.purchasing earlier than usual or purchasing extra quantities. For retailers. sales promotions maybe able to alter market shares permanently. although they may be induced to make subsequent purchases. But sales may hit a post promotion dip. In markets of high brand dissimilarity.

48 . They promote greater consumer awareness of prices.complementary categories as well as induce some store switching by consumers. a consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win an additional 30 gm gold. They help the manufacturer to adapt programs to different consumer segments. Some service firms use promotions to attract new customers and establish loyalty. Consumers themselves enjoy some satisfaction from being smart shoppers when they take advantage of price specials. Service marketers also employ sales promotions to achieve marketing objectives. The offercould be availed only on 100 gm and 150 gm packs of Lux soap. They permit the manufacturers to sell more than they would normally sell at list prices. Sales Promotion Schemes Used By LUX • Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer from Delhi. According to the promotional offer that Lux unveiled in October 2000. The first 10 callers every week got a 30 gm gold each.

All one needed to do was buy a special promotional pack of Lux soap. courtesy the beauty stars. Aish Karo contest which started on April 16 and went on till July 15 of 2005. The pièce de résistance was a dinner date with Aishwarya Rai herself. The pack comes with a special scratch card.000 from Shoppers' Stop along with an exclusively designed Neeta Lulla sari and a beauty makeover by Michelle Tung. The 50 lucky winners and their spouses were flown down to Mumbai to live a day like Aishwarya Rai would. 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. They could also be given gift vouchers worth Rs 50. 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. Aish Karo contest aims to drive the brand proposition — Mujh mein star jagaye — further. If the consumer finds written inside the star. If the consumer finds “75 years” written inside the star. 49 . Aishwarya's preferred designer and stylist. any number from “1” to “5”.• Lux Star Bano. she will get a year’s supply of Lux free. The Lux Star Bano. • Lux is celebrating 75 year’s of stardom in India and to kick start the celebration.

Bottom of Form 50 . You can also win Lux Skincare Products. Top of Form Email: Name: Please enter your name and email to play the game.Play the supercharged version of the hit puzzle game. Create rows of 3 or more identical stones and you could win a trip for two to a five-star Resort in Goa. Bejeweled.

Corporate Communications: Promoting understanding of the organization through internal and external communications. They perform the following functions: • • • • • Press relations: Presenting news and information about the organization in the most positive light. it must also relate to a large number of interested publics.well 3 maidens to be precise. suppliers and dealers. Product Publicity: Sponsoring efforts to publicize specific products. Lobbying: Dealing with legislators and government officials to promote or defeat legislation and regulation. 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 51 .A public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives. 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.• Online Contests Public Relations: Not only must the company relate constructively to customers.

This is just one of the many activities planned for the launch of Lux Orchid with exotic orchid petals in Jojoba Oil. Kareena Kapoor. The event was held at the grand Intercontinental in Mumbai on Friday afternoon. Bangalore & New Delhi. Juhi Chawla. where Chris Cairns will look out for and crown the ‘Lux Orchid Face of the evening’. All the stars have endorsed Lux in the past. 52 .Mumbai. 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.

Price something too high and a company may never sell a single item of it. It has the products that are categorized as premium and mass products. With an operating profit of 470 Mn$ and a turnover of 2. 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. The LUX Beauty Bars are priced as follows: 53 . which have been described above.190 Mn$. HLL has the advantage of quoting a reasonable price due to its economy of scale. HLL has the product range that meets the needs of all classes of consumers. 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. 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 main fact for this huge success story is the strategic pricing decision the company has adopted from time to time. HLL always gives value for money to his consumers. HLL matches its prices with the competitor who is operating in the same category. It is known for its competitive pricing. Prices of HLL are considered the most competitive in Indian market. HLL has no need to look back on the fact that it is a leader.(C)Price "Price" is pretty self-explanatory but it‘s very important to success. HLL seems to have mastered this idea.

that which helps reach out its products across the length and breadth of this vast country. 13 150gms: Rs. 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. 54 .100gms: Rs. 19 LUX International is priced at 125gm: Rs. 5 (D)Place Cutting-edge distribution network HLL’s distribution network is recognized as one of its key strengths -. 40 for 150 ml Lux has also introduced the “Mini Lux” that has helped in better penetration of the rural market. 70 for 250 ml Rs.” At Hindustan Lever Limited. 21 International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. It is priced at Rs. The need for a strong distribution network is imperative. since HLL’s corporate purpose is “to meet the everyday needs of people everywhere.

in all outlets. 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. From the distributor. It‘s because of the change in buying pattern of the consumer due to more disposable income. the stock reaches the market through daily sales. Kiosk also does not come under the surveillance of the distributor. who get the stocks directly from the company. There is also this new concept in the HLL distribution channel called Kiosk. which covers all chains of super markets like Food World. the goods are transferred from the factory to the company warehouses (C&F.A godowns) and are sent to the distributor from there on a daily basis. This includes. HLL has set up a distribution network that ensures availability of all their products. Typically. The first phase of the HLL distribution network had wholesalers placing bulk orders directly with the company.10/-). 45 C&F. at all times. HLL boasts of placing a product across the country in less than 72 hrs. maintaining favorable trade relations. 55 . these include the salesman registering the order of a retail outlet and delivering the goods the next day.000 stockists and direct coverage in over 1 million retail outlets across India. In addition to the ongoing commitment to the traditional grocery trade. Recently HLL has changed its traditional way distribution and came out with a new strategy of distribution.A. Large retailers also placed direct orders. HLL is building a special relationship with the small but fast emerging modern trade. which comprised almost 30 per cent of the total orders collected. To meet the ever-changing needs of the consumer.s. Kiosk is a small shop that sells only sachets and low priced items (below Rs.It has 2000+ suppliers and associates. providing innovative incentives to retailers and organizing demand generation activities among a host of other things. There are different channels of distribution like Modern Trade. 7. Today.

HLL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. called RSNet. with long-term benefits. by unshackling the field force to solely focus on secondary sales from the stockists to retailers and market activation. RS Net covers about 80% of the company's turnover. RS Net is part of Project Leap. information sharing and monitoring. for online interaction on orders. while ensuring superior availability and impactful visibility at retail points. In a significant move. which also includes a back-end system connecting suppliers. It has already appointed 6000 such sub-stockists. HLL has mounted an initiative. HLL's end-to-end supply chain. the sales system gets to know every day what HLL stockists have sold to almost a million outlets across the country. dispatches. For rural India. An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. This is building traffic into the stores while yielding high growth for the business.HLL's scale enables it to provide superior customer service including daily servicing. stockists have been connected with the company through an Internet-based network. Today. all company sites and stretching right Upto stockists. to further increase its rural reach with the help of rural sub-stockists. The objective is to catalyse HLL’s growth by ensuring that the right product is available at the right place in right quantities. For this. improving their range availability whilst reducing inventories. in the most cost-effective manner. the company's action-plan to maximize the number of outlets reached and to achieve leadership in every outlet. HLL Way has also led to implementing best practices in customer management and common norms and processes across the company. RS Net has come as a force multiplier for HLL Way. HLL has established a single distribution channel by consolidating categories. Project Streamline. Powered by the IT tools it has further improved customer service. 56 . As a result.

Distribution will acquire a further edge with Project Shakti. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities 57 . thereby touching about 100 million consumers. This model creates a symbiotic partnership between HLL and its consumers. reaching about 250 million consumers. The SHGs have chosen to adopt distribution of HLL's products as a business venture. and is being progressively extended. A typical Shakti entrepreneur conducts business of around Rs. armed with training from HLL and support from government agencies concerned and NGOs.000 villages. and is almost double of their past household income.000 villages. some of whom will also draw on the company for their livelihood. For HLL. insurance and education. straightforward model that provides direction and serves as a basis for the development of marketing plans.15000 per month. HLL's partnership with Self Help Groups of rural women. started in 2001. which gives her an income in excess of Rs. The project. already covers over 5000 villages in 52 districts of Andhra Pradesh. the project is bringing new villages under direct distribution coverage. health. this earning is very significant. SWOT ANALYSIS SWOT analysis is a basic. This will both catalyse holistic rural development and also help the SHGs generate even more income.1000 per month on a sustainable basis. The vision is to reach over 100.the distribution network directly covers about 50. As most of these women are from below the poverty line. and live in extremely small villages (less than 2000 population). and helps build a selfsustaining virtuous cycle of growth. Karnataka Madhya Pradesh and Gujarat. Plans are being drawn up to cover more states. and provide products/services in agriculture.

The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity). and deter potentially devastating threats.(potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). capitalize on golden opportunities. correct its weaknesses. The internal and external situation analysis can produce a large amount of information. Factors should be evaluated across the organization in areas such as: • • • • • Company culture. and weaknesses may hinder it. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. By understanding these four aspects of its situation. Internal Analysis . image Organizational structure Key staff Access to natural resources Position on the experience curve 58 . a firm can better leverage its strengths. Once this is completed.The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Strengths can serve as a foundation for building a competitive advantage. or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat) (Marketing Strategy. much of which may not be highly relevant. 1998).

An opportunity is the chance to introduce a new product or service that can generate superior returns.• • • • • • Operational efficiency. 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. 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. Opportunities can arise when changes occur in the external environment. Changes in the external environment may be related to: • • • • • • • • Customers Competitors Market trends Suppliers Partners Social changes New technology Economic / Political environment 59 . External Analysis .

Milk Cream. Sandalwood Oil. Fruit Extracts.Strong Market Research (door to 1. and Honey to 3.Some variants like the sunscreen.The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats.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. hence it Urban and Rural areas) lacks unisex appeal 2.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. name a few) backed by HLL 4.Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment) 60 .Certain advertisements like the 3.Lux is mainly positioned as beauty door sampling is done once a year in soap targeted towards women.Usage rate/ wear rate is high and is Extracts.Strong brand image beauty segment International variant did not do well in 4. SWOT PROFILE OF LUX STRENGTHS WEAKNESSES 1.Many variants (Almond Oil.Positioning focuses on the attractive resulted in controversial interpretations 6. generally mushy and soggy Saffron.Stock out problems .Strong sales and distribution network the market recent one with Shah Rukh Khan of the message of the advertisement 5. Orchid 2.

Technological change makes the its product life cycle existing products obsolete – Lux should 5.Unique advantage of having access to resources and assets of HLL OPPORTUNITIES 1.Line extension – probably with more focus on technological innovations like variants catering to the beauty segment Body Wash like natural.New THREATS entrants/local (sales / Annual Growth Rate (CAGR) is very competitors/MNCs would increase the high. An indication of this is that Fair competition (Camay. herbal soap etc 6. it is having mass appeal/market presence across all segments (15% of the soap market captured by Lux volume) 9.High internal competition – Pears fast rate .Liquid body wash is currently in the growth stage – Lux should come out with more variants in this segment 7.Retentive strategy required as the changing customer tastes soap segment is in the mature stage of 4.Excessive dependence on beauty 4.More promotions like price-offs and 3.8.Level of servicing is high during sales promotion schemes – this could be brought down 61 .Lux must reinforce its also catering the beauty segment (also presence in the beauty segment samples from HLL stable) segment makes Lux vulnerable to 3. P&G) and Lovely’s segment is increasing at a 2.Though it is in popular segment.Soap industry growing by 4% in India 2.Beauty segment’s Compounded 1.

62 .

PERCEPTUAL MAPPING OF BRAND LUX Perceptual mapping of some important brands Mysore Sandal Price Dove Pears Dettol Cinthol Sales Promotion Nirma Breeze Lux 63 .

it was seen as an expensive proposition. they lagged behind on promotional aspects. finds only a certain set of buyers. Although Dove is ranked high on promotional parameter. 64 . Cinthol and Dettol soaps formed the middle portion of the map. Pears due to its uniqueness as the only glycerin soap. They were rated as moderate both on promotional as well as value for money aspects. Mysore Sandal soap was seen as a brand which has moderate value for money while it was left wanting in the promotional aspects. None of the other important brands could match it on promotion as well as value for money 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. Although economy brands like Breeze and Nirma scored well on the value for money aspect. It ranked low on both value for money and promotional parameters.

DATA ANALYSIS RETAILER’S ANALYSIS (1)SALES PROMOTION SCHEMES OFFERED ON LUX 65 .8.

0% Product bundling 30.0% 15.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). “Product Bundling” was the next best with 30% of the retailers in favour of the same.0% 10.0% 40. (2)NORMAL DURATION OF SALES PROMOTION SCHEMES 66 .

“More than 3 months” was the next best with 25% of the retailers in favour of the same.3 months 15 days – 1 month More than 3 months 25.0% 15.0% The primary analysis found that “1 month – 3 month” is the normal accepted duration of sales promotion schemes (60% of the retailers agreed on this).0% 60.Duration 1 month. 67 .

0% 5.0% The primary analysis found that “Less than 3 months” is the general perceived frequency for sales promotion schemes offered on Lux (75% of the retailers agreed on this). “3 months – 6 months” was the next best with 20% of the retailers in favour of the same. 68 .0% 75.(3)HOW OFTEN SALES PROMOTION SCHEMES ARE OFFERED ON LUX Frequency 3 months – 6 months 6 months – 1 year Less than 3 months 20.

(4)AFFECT ON SALES OF LUX DUE TO SALES PROMOTION SCHEMES Affect_on_Sales Can’t say Increase in sales No affect 10.0% 69 .0% 15.0% 75.

(5)COMMUNICATION OF SALES PROMOTION SCHEMES 70 . “Can’t say” was the next best opinion with 15% of the retailers in favour of the same.The primary analysis found that sales promotion schemes offered on Lux caused an “Increase in sales” (75% 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 71 .0% 25.0% 20.0% 40.0% The primary analysis found that “Wholesalers” were the best medium of communication of sales promotion schemes (40% of the retailers agreed on that).

72 .0% Superior and less frequent Superior and more frequent 45.(6)LEVEL OF SERVICING DURING SALES PROMOTION .0% 10.COMPARISION WITH COMPETITORS Comparision_with_competitors Inferior and more frequent Similar and more frequent 10. “Similar and more frequent” was the next best with 35% of the retailers in favour of the same.0% The primary analysis found that the level of servicing during sales promotion vis-à-vis competitors was “Superior and more frequent (45% of the retailers agreed on that).0% 35.

(7)AFFECT OF SALES PROMOTION SCHEMES ON DIFFERENT AGE GROUP Affect_on_perception_on_age_group 26-45 46 -60 16-25 30.0% 73 .0% 55.0% 15.

0% 45.The primary analysis found that “26-45 age group” were the most affected by sales promotion (55% of the retailers agreed on that).0% 74 . “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 Problems_faced Handling problem Stock out Improper information 10.0% 45.

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) (9)INCENTIVES PROVIDED DURING SALES PROMOTION SCHEME 75 .

“Prizes” was the next best with 25% of the retailers in favour of the same.0% 55.0% 25. 76 .Incentives_provided Cash discount Gifts Prizes Others 10.0% 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).0% 10.

(10)BEST SALES PROMOTION SCHEME Best_schemes Cash refund Price off Product bundling Scratch card 10.0% 20.0% 15.0% 55.0% 77 .

5% 28. “Product Bundling” was the next best with 20% of the retailers in favor of the same CONSUMER’S ANALYSIS (1)MOST PREFFERED CRITERION FOR SOAP SELECTION Most preffered criterion Advertisement Brand value 6.0% 12.The primary analysis found that “Price off” is the best sales promotion schemes offered on Lux (55% of the retailers agreed on that).5% Price Promotional schemes Benefits Color of soap Packaging Word of mouth 10.75% 2.0% 13.75% 15.5% Fragrance of soap 7.25% 3.75% 78 .

“Brand Value” was the next best with 15% of the consumers in favour of the same.The primary analysis found that “Price” is the most preferred criterion for soap (28.75% of the consumers agreed on that). (2)PERCEPTION ABOUT LUX 79 .

“Soap for all” was the next best with 23.0% 23.25% The primary analysis found that the major perception about Lux is that as a “Beauty Soap” (50% of the consumers agreed on that).75% 11.0% 50.Perception about Lux Beauty soap Nothing specific Soap for all Soap of filmstars 15.75% of the consumers in favour of the same 80 .

8.25% The primary analysis found that advertisement recall of Lux was “Yes” for 91.(3)RECOLLECTION OF ANY ADVERTISEMENT OF LUX Recall of current advertisement No Yes.25% of the consumers and “No” for 9.75% 91.75% of the consumers 81 .

25% of the consumers in favour of the same. “Sales Promotion” was the next best with 31.75% of the consumers agreed on that).0% 31. 82 .75% The primary analysis found that “Advertising” is the most effective medium for sales promotion (58.25% 58.(4)MOST EFFECTIVE MEDIUM OF SALES PROMOTION Most effective medium for promotion Personal selling Advertising Sales promotion 10.

25% 3.75% 42.5% 15.(5)PREFERENCE OF PROMTIONAL SCHEME Preference of promotional schemes Discount coupons Free trial Scratch card 12.75% 6.0% 83 .25% Cash refund Cross promotion Price off Prizes 13.5% 6.

“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 84 .5% of the consumers agreed on that).The primary analysis found that “Price Off” is the most preferred promotional scheme (42.

25% 93.75% The primary analysis found that the perception about change in quality during sales promotion scheme was “Superior” (93. “No change” was the next best with 6.75% of the consumers agreed on that).25% of the consumers in favour of the same (7)TYPE OF IMPACT 85 .Perception about change in quality Superior No change 6.

25% of the consumers in favour of the same.75% 21. “No change in buying behaviour” was the next best with 26.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% 13. 86 .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.

75% Through electronic media 11.(8)COMMUNICATION OF SCHEME Communication of schemes Through company’s stall 3.75% 87 .25% 58.25% Through print media Through sales representatives 26.

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

(9)PROBLEMS FACED DURING SALES PROMOTION SCHEMES

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

(10)COMPARISION WITH COMPETITORS

88

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

Superior and less frequent Superior and more frequent

35.0% 48.75%

12.5%

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

89

(11)AFFECT ON AGE GROUP

Affect on age group
Adults Older people Youngsters Adults
6.25% 2.5%

Kids

32.5% 56.25%

2.5%

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

90

5% 2.5% Satisfied 42.(12)PRICE OF SOAP Price Dissatisfied Neutral Satisfied Very satisfied 7.0% 91 .5% 15.5% 32.

5% of the consumers in favour of the same. (13)DISTRIBUTION NETWORK 92 .5% of the consumers agreed on that). “Neutral” was the next best with 32.The primary analysis found that the customers perceived the price of soap to be “Satisfactory” (42.

0% The primary analysis found that the customers perceived the distribution network of soap to be “Satisfactory” (47.25% 47.Distribution Network Neutral Very satisfied Dissatisfied Satisfied 21.5% 26. “Very Satisfied” was the next best with 26.25% of the consumers in favour of the same 93 .5% of the consumers agreed on that).25% 5.

5% of the consumers agreed on that).75% The primary analysis found that the customers perceived the quality of soap to be “Satisfactory” (47.(14)QUALITY Quality Neutral Satisfied Very satisfied Dissatisfied Satisfied 23.75% 47. 94 .5% 12.5% 8.5% 7. “Neutral” was the next best with 23.75% of the consumers in favour of the same.

25% 26.25% 95 .5% 56.(15)ADVERTISING Advertising Dissatisfied Neutral Satisfied 17.

25% of the consumers agreed on that).The primary analysis found that the customers perceived the advertising of soap to be “Satisfactory” (56.25% of the consumers in favour of the same (16)PROMOTIONAL SCHEMES 96 . “Neutral” was the next best with 26.

9.5% 63. “Neutral” was the next best with 21.25% 7.CONCLUSION 97 .75% 7.5% The primary analysis found that the customers perceived the promotional schemes of soap to be “Satisfactory” (63.Promotional Schemes Satisfied Very satisfied Dissatisfied Neutral 21.25% of the consumers in favour of the same.75% of the consumers agreed on that).

Also the person going to the shop for the purchase of soap is the final decision maker of the brand. money and energy on sales promotion activities. 98 . 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. Repetitive use of the same premium (soap dish) for a prolonged period may have negative effect on the loyal customers. it needs to ensure the quality of the product from it as it is likely to jeopardize the image of both its products. 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. With respect to nature of scheme.The findings of the empirical study indicate that unless the brand to be promoted is in the consideration set of the consumer. striking. 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. When the company is giving its own product free as premium. 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. Also the importance of the role of mass media came out clearly in both the studies. Hence it is essential that companies need to design mattractive. While both retailers and consumers preferred price offs. the finding suggested that premium (free gift) was popular with companies. visible POPs for scheme announcements. So it is necessary that the perceived value of a free gift has to be appealing and high for the target consumers. Toilet soaps are low involvement products characterised by switching behaviour. 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 clearing excess stocks. sales promotion by itself is unlikely to have any major impact. Only after this should he spend time.

accounting was required on the part of a retailer without compensatory margins. 99 . particularly when additional handling. 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.retailer level. From the study it was found that smaller retailers felt neglected and not enthused to implement the schemes. 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. stocking.Companies need to systematise information flow regarding sales promotion activities particularly at dealer . This implies that the retailer would be a rich source of information about the consumer and the likely response to sales promotion activities. Through dealers and proper feedback mechanism. direct reach by companies is next to impossible. In order to build trust and commitment companies should tap preferences. As retailing is fragmented. perceptions of retailers as well as consumers. It can be seen that the retailer and consumer perceptions matched with respect to preferences of schemes. underlying motivations and role of mass media. companies keep in touch with the market.

(6) It is having only 19. 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.RECOMMENDATIONS (1) They should provide more promotions like price-offs and samples. 10 0 . (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.8 % rural market presentation which could be further enhanced .10.

10 1 .

Prentice Hall of India. Planning. Kotler Phillip. www.” Harvard Business Review. Implementation and Control.hll. 1976.” 9 ed. 3.. “Marketing Management : Analysis. Strang Roger. www. 1997.com 10 2 .indiainfoline.com 4. th 2. “Sales Promotion fast growth faculty management.REFERENCES 1.

10 3 . Shop’s Name :…………………………………. Address: ………………………… Contact No.:…………………………………. Questionnaires Used RETAILER’S QUESTIONNAIRE Name :………………………….APPENDIX 1..

(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 10 4 ..

(d) Can’t say (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? 10 5 .

.......... ................................................. Address: ........... Age:........................................................................... ...............................................................................(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 CUSTOMER'S QUESTIONNAIRE Name : ..... Contact No:..... Sex:........................... 10 6 ..............................................

....(1)Which brand of bathing soap do you use ?.... (2) Is the same brand of soap used by your other family members? If not ........ which brand of bathing soap do they use?...................................................................................................................... (3) How would you rank following criterion for selecting a bathing soap ? (a) Color of soap (b) Fragrance of soap (c) Brand value (d) Price (e) Benefits (f) Packaging (g) Word of mouth (h) Advertisement (i) Promotional schemes (4) What comes in to your mind when you think about Lux ? (a) Soap of filmstars (b) Beauty soap (c) Nothing specific (5) Can you recall any current advertisement of Lux ? (a)Yes.............................. (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...... (b) No......... allot the points according to your preference on the 10 7 ....

following promotional schemes? (a) Price off (b) Discount coupons (c) Contests (d) Scratch card (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? (a) Through sales representatives (b) Through print media (c) Through electronic media (d) Through company’s stall (11)What are the problems faced during and after the sales promotion schemes? 10 8 .

(a) Stock out (b) Improper information (c) Gifts not received (d) Coupons not encashed (e) 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? (a) Kids (b) Youngsters (c) Adults (d) 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 10 9 .

APPENDIX -2 11 0 .

11 1 .