project lux
TRANSCRIPT
A Project Report on LUX
PREFACE
Marketing should not be looked upon in a vacuum or in isolation. It is an
essence taking a view of the whole business organization and its ultimate objective
concern for marketing must penetrate all areas of the enterprise. Market survey in
today’s competitive world is a must for every organization.
This project is a study of market potential of Lux. The rational behind this
particular study is to find out the present market scenario of various brands & to
find out the corporate need and perception. It was a pleasurable experience to
conduct a research on behalf of Lux pertaining to the study of the Beauty.
Conclusion and there by recommendation has been arrived at by proper
and justified interpretation of the result derived from the above said analytical
tools and techniques.
ACKNOWLEDGEMENT
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A Project Report on LUX
Preparing a project of this nature is an arduous task and I was fortunate enough
to get support from a large number o persons. I wish to express my deep sense of
gratitude to all those who generously helped in successful completion of this report by
sharing their invaluable time and knowledge.
It is my proud and previledge to express my deep regards to Respected , Head of
Department Dr.Pramesh Gautam, Shri Chaitainya Kaushik Department of Business
Management , Swami Vivekanand Institute of Technology, College Sagar for allowing
me to undertake this project.
I feel extremely exhilarated to have completed this project under the able and
inspiring guidance of Shri Chaitainya Kaushik He rendered me all possible help me
guidance while reviewing the manuscript in finalising the report.
I also extend my deep regards to my teachers , family members , friends and all
those whose encouragement has infused courage in me to complete to work successfully.
(RISHI KUMAR SEN)
B.B.A IST Semester
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A Project Report on LUX
DELCLARATION BY THE CANDIDATE
Date :
I declare that the project report titled " LUX " on Market Segmentation is nay
own work conducted under the supervision of Shri Chaitainiya Kaushik Department of
Business Management , Swami Vivekanand Institute of Technology, College Sagar To
the best of my knowledge the report does not contain any work , which has been
submitted for the award of any degree , anywhere.
(RISHI KUMAR SEN)
B.B.A IST Semester
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A Project Report on LUX
CERTIFICATE
The project report titled " LUX " been prepared by Mr. Rishi Kumar Sen
BBA Ind Semester , under the guidance and supervision of Shri Chaitnaiya Kaushik for
the partial fulfillment of the Degree of B.B.A.
Signature of the Signature of the Signature of the
Supervisor Head of the Department Examiner
CONTENTS
TOPIC TITLE
PAGE NO.
1. Preface
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A Project Report on LUX
2. Acknowledgement
3. Declaration of the Candidate
4. Certificate
5. Introduction of Lux
6. History of Lux
7. Marketing Segmentation
8. Swot Profile of Lux
9. Scope of the Study
10 Limitations
11 Research Methodology 12 Data Analysis & Interpretation
13 Conclusion
14 Bibliography
15 Questionaire
Introduction:Understanding perceptions of channel members and
consumers regarding sales promotion activities enhances
the effectiveness of these activities. Widespread usage of
sales promotion activities in Fast Moving Consumer Goods
(FMCG) sector makes it imperative that manufacturers take
into account channel member and consumer perceptions
before planning such programmes. In this paper, an
attempt has been made to examine the nature of sales
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A Project Report on LUX
promotion activities in toilet soap category in India, study
retailer perceptions with respect to these activities and also
get an insight into consumer perceptions of these activities.
Our findings indicate that with respect to the nature of the
schemes, premiums (free gifts) were found to be the most
frequently used in both premium and popular toilet soap
category, followed by price offs. Retailer’s perceived price
offs to have relatively greater impact compared to any other
forms of sales promotion. In line with the retailers’
perceptions, the findings of consumer perceptions indicated
that price off was the most preferred type of sales
promotion. Retailers stated that role of word of mouth and
television advertising was very important in providing
information inputs to the consumers regarding sales
promotion activities. This perception of retailers was
supported by the consumer unaided recall of sales
promotion schemes which were widely advertised. As the
retailer interacts and observes consumers more frequently
and closely than the manufacturer, it would be useful for
the companies to incorporate perceptions while planning
sales promotion strategies.
All the above researches have focused on price promotions
and their response. Our study though exploratory has
considered perceptions for price as well as non-price
promotions in toilet soap category.
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A Project Report on LUX
The reasons for the study were:
The widespread use of sales promotions in toilet soap
category.
Historically, whenever there was a downward trend in
growth, sales promotion activities took the front seat of
promotional mix.
Companies planned these activities with inward looking
view hence it was felt that it would be useful to
understand the perceptions of consumers and retailers
regarding sales promotion activities to improve the
effectiveness of these activities.
Hindustan Unilever Limited:
In the summer of 1888, visitors to the Kolkata harbor
noticed crates full of Sunlight soap bars, embossed with the
words "Made in England by Lever Brothers". With it began
an era of marketing branded Fast Moving Consumer Goods
(FMCG).
Soon after, followed Lifebuoy in 1895 and other famous
brands like Pears, Luxand Vim. Vanaspati was launched in
1918 and the famous Dalda brand came to the market in
1937.In 1931, Unilever set up its first Indian subsidiary,
Hindustan Vanaspati Manufacturing Company, followed by
Lever Brothers India Limited (1933) and United Traders
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A Project Report on LUX
Limited (1935). These three companies merged to form HLL
in November 1956; HLL offered 10% of its equity to the
Indian public, being the first among the foreign subsidiaries
to do so. Unilever now holds 51.55% equity in the company.
The rest of the shareholding is distributed among about
380,000 individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to
1900. By 1903, the company had launched Red Label tea in
the country. In 1912, Brooke Bond & Co. India Limited was
formed. Brooke Bond joined the Unilever fold in 1984
through an international acquisition. The erstwhile Lipton's
links with India were forged in 1898. Unilever acquired
Lipton in 1972 and in 1977 Lipton Tea (India) Limited was
incorporated.
Pond's (India) Limited had been present in India since 1947.
It joined the Unilever fold through an international
acquisition of Chesebrough Pond's USA in 1986.
Since the very early years, HLL has vigorously responded to
the stimulus of economic growth. The growth process has
been accompanied by judicious diversification, always in
line with Indian opinions and aspirations.
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A Project Report on LUX
The liberalization of the Indian economy, started in 1991,
clearly marked an inflexion in HLL's and the Group's growth
curve. Removal of the regulatory framework allowed the
company to explore every single product and opportunity
segment, without any constraints on production capacity.
Simultaneously, deregulation permitted alliances,
acquisitions and mergers. In one of the most visible and
talked about events of India's corporate history, the
erstwhile Tata Oil Mills Company (TOMCO) merged with
HLL, effective from April 1, 1993. In 1995, HLL and yet
another Tata company, Lakme Limited, formed a 50:50 joint
venture, Lakme Lever Limited, to market Lakme's market-
leading cosmetics and other appropriate products of both
the companies. Subsequently in 1998, Lakme Limited sold
its brands to HLL and divested its 50% stake in the joint
venture to the company.
HLL formed a 50:50 joint venture with the US-based
Kimberly Clark Corporation in 1994 - Kimberly-Clark Lever
Ltd, which markets Huggies Diapers and Kotex Sanitary
Pads. HLL has also set up a subsidiary in Nepal, Nepal
Lever Limited (NLL), and its factory represents the largest
manufacturing investment in the Himalayan kingdom. The
NLL factory manufactures HLL's products like Soaps,
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A Project Report on LUX
Detergents and Personal Products both for the domestic
market and exports to India. The 1990s also witnessed a
string of crucial mergers, acquisitions and alliances on the
Foods and Beverages front. In 1992, the erstwhile Brooke
Bond acquired Kothari General Foods, with significant
interests in Instant Coffee. In 1993, it acquired the Kissan
business from the UB Group and the Dollops Ice-cream
business from Cadbury India.
As a measure of backward integration, Tea Estates and
Doom Dooma, two plantation companies of Unilever, were
merged with Brooke Bond. Then in July 1993, Brooke Bond
India and Lipton India merged to form Brooke Bond Lipton
India Limited (BBLIL), enabling greater focus and ensuring
synergy in the traditional Beverages business. 1994
witnessed BBLIL launching the Wall's range of Frozen
Desserts. By the end of the year, the company entered into
a strategic alliance with the Kwality Ice-cream Group
families and in 1995 the Milk food 100% Ice-cream
marketing and distribution rights too were acquired.
Finally, BBLIL merged with HLL, with effect from January 1,
1996. The internal restructuring culminated in the merger
of Pond's (India) Limited (PIL) with HLL in 1998. The two
companies had significant overlaps in Personal Products,
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A Project Report on LUX
Specialty Chemicals and Exports businesses, besides a
common distribution system since 1993 for Personal
Products. The two also had a common management pool
and a technology base. The amalgamation was done to
ensure for the Group, benefits from scale economies both in
domestic and export markets and enable it to fund
investments required for aggressively building new
categories.
In January 2000, in a historic step, the government decided
to award 74 per cent equity in Modern Foods to HLL,
thereby beginning the divestment of government equity in
public sector undertakings (PSU) to private sector partners.
HLL's entry into Bread is a strategic extension of the
company's wheat business. In 2002, HLL acquired the
government's remaining stake in Modern Foods.
In 2003, HLL acquired the Cooked Shrimp and Pasteurised
Crabmeat business of the Amalgam Group of Companies, a
leader in value added Marine Products exports.
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A Project Report on LUX
HistoryLuxwas launched in India in 1929. The first
bar of Luxwas made in India and sold for a
princely sum of two annas in 1934. From
the very first advertisement in 1929 featuring Leela Chitnis,
the gorgeous faces of the silver screen have come out in the
open with their beauty secret – Beauty Soap.
Popularly known as ‘the lux of film stars’, Lux has been a
favorite with generations of users for the experience of
sensuous, Beauty Soapurious bathing.
Since its launch in India, Luxhas offered a range of soaps in
different colours and fragrances. They have each, however,
offered the same benefit of beautiful skin. Desirable product
sensorial, especially its world class fragrances and
nourishing ingredients, have made the Luxbath a
pleasurable experience.
But Luxbeing the market leader has evolved along with the
changing needs of its consumers. The late 1980s saw the
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A Project Report on LUX
emergence of a premium segment in the soap category – a
new consumer set whose beauty and bathing needs began
to evolve. In 1989, to tap into this segment, Luxlaunched a
range of premium soaps to suit their different skin types.
LuxVariants:
In the country since 1929 and endorsed by popular film
stars, Luxis the biggest brand in the soap category.
LuxToilet Soap, in the popular segment, offers its
consumers a range of soaps enriched with the goodness of a
variety of nourishing ingredients –Almond Oil, Orchid
Extracts, Milk Cream, Fruit Extracts, Saffron, Sandalwood
Oil and Honey. The Luxpremium range offers specialized
skincare to its consumers in the form of LuxInternational. It
also includes LuxBody Wash for superior bathing benefits
keeping in step with the changing needs of the
Luxconsumer.
In addition to these variants Lux has come up with a few
more variants to celebrate its 75 years in business.
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A Project Report on LUX
The LuxCelebration Range is a set of three exclusive
variants- Aromatic Glow and Chocolate Seduction and
LuxWhite Spa body wash containing exotic ingredients,
never seen in the Indian market before.
LUX : COMPETITORS
NIRMA:
Nirma Since the early nineties,
Nirma has been challenging the
hegemony of Hindustan Lever,
which holds over 54 per cent share of the toilet soaps
market. Nirma has so far managed to snatch 9 per cent
share of market.
Almost as an answer to the general perception of low
quality, Nirma had invested in the latest soap
manufacturing plant in the world the first of its kind in
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India. While leading manufacturers like HLL and Godrej
continue to rely on batch manufacturing, Nirma had
sourced the latest Italian technology from Binacchi and
CMB and set up a finish line that produces 500 toilet soaps
per minute, wrapped and carton sealed for dispatch.
Nirma Bath Soap:
Toilet soap market in India was dominated by a very few
MNC’s which could monopolistically
price their product. In 1992,
sensing a strong need to expand the
market through Penetrative Pricing,
Nirma entered this market with the
launch of ‘Nirma Bath Soap’, which is a carbolic (Red) soap.
Although the carbolic soap segment is on decline, Nirma
Bath has generated larger volumes each year. Packed in a
red color wrapper and available in 75 gram and 150 gram
pack sizes, this soap has a Total Fatty Matter (TFM) of 60
%.
Nirma Beauty Soap:
With its market promise to offer
“Better Products, Better Value,
Better Living,” Nirma introduced
‘Nirma Beauty Soap’ in the year
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1992. Available in three different variants and pack sizes,
this soap has a TFM content of 70%. Due to its admirable
perfume and a higher TFM content, this brand, within a
short span of five years, had achieved the status of the third
largest selling toilet soap brand and still continues its
outstanding performance
Nirma Lime Fresh Soap:
This product had created a sensational marketing history in
the Indian Toilet soaps market, when it
was launched in 1997. Seventeen
million packs of Nirma Lime Fresh
soap were sold in the very first month
of its soft launch. Packed in a poly coated 75 gm carton,
which is printed on the world’s best Cerruti 8-colour
printing machine, this soap is available in green colour.
With a lime aroma that tingles in one’s sensory buds for a
long time, this soap contains 80% TFM. The product launch
of Nirma Lime Fresh had been extremely successful, being
ranked as the Seventh Most Successful Brand Launch for
the year 1998, as ranked by the Business Standard
Marketing Derby, 1998. (as featured in The Strategist
Quarterly, July-September 1998).
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Nima Rose:
The remarkable and phenomenal
market response received by Nima
Rose soap within just two months of
its launch once again proved the
merits of Nirma’s commitment towards its consumers. Nima
Rose soap has got an exceptionally soft rose fragrance –
which remains around body for a long time even after bath.
The high TFM content of this product allows a consumer to
have pleasant bath. This brand had carved a niche in its
segment by achieving leadership position just within two
months of its launch. It is available in 100g and 150g pack
sizes.
Nima Sandal:
Over the period, Indian toilet soap market has fragmented
& has seen emergence of prominent floral fragrance
segments as Sandal, Rose,
Jasmine, etc. Nima Sandal is a
one of such product in floral
segment. This toilet soap has 80%
TFM content, with rich & exotic fragrance. It promises
benefits of Sandal oil & Turmeric powder. It is a premium
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A Project Report on LUX
product from Nima stable and is available in 100g and 150g
packs.
The company has expanding into other segments of the
fragmented five lakh tonne soap market. It launched Nirma
Luxin the premium segment. Nirma Luxcarried a MRP price
tag of Rs 7 and was sold at Rs 6, while Levers Luxsold for
Rs 8. Imitating Levers time-tested strategy, Nirma used
actress Sonali Bendre in its advertising. Today, Nirma
Luxsells whopping 45,000 tonnes, making it the3rd largest
soap brand after Luxand Lifebuoy.
When Lever made an assault on Nirma Luxwith its Breeze,
the Patels quickly hit back at Levers freshness plank. Nirma
Lime Fresh was positioned against Levers Liril Lime Fresh,
but while Liril sold for Rs 12.50, Nirma Lime Fresh sold for
Rs 8.
Breaking away from tradition, Nirma introduced a new soap
brand, Nima Lime, in the key markets of Gujarat and
Maharashtra. The launch was significant because it was the
first time since the company's inception that Nirma had
chosen to move away from its umbrella branding strategy
by adopting a new brand name. With a wrapper price of Rs
6.50 and a total fatty matter (TFM) content of 70 per cent,
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A Project Report on LUX
Nima Lime Fresh was aimed at the popular segment of the
toilet soaps market.
This is Nirma's fourth brand launch in the toilet soaps
market. It marked its foray in the early nineties by
launching Nirma luxto take on Lever's best selling brand;
Beauty Soap. Nirma followed it up with Nirma Premium,
Nirma Lime Fresh.
GODREJ:
Godrej Consumer Products Ltd.
(GCPL) is a major player in the
Indian FMCG market with
leadership in personal, hair,
household and fabric care segments. The company employs
950 people and has three state-of-the-art manufacturing
facilities at Malanpur (M.P.) Guwahati (Assam) and Silvassa
(U.T.).
Godrej is among the largest marketer of toilet soaps in the
country with leading brands such as CINTHOL, FAIRGLOW,
and GODREJNO 1.
Their FAIRGLOW brand, India's first Fairness soap, has
created marketing history as one of the most successful
innovation.
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Market share in Toilet soaps grows to 8.0% in FY 2004-05
from 6.8% in FY 2003-04. All three Power brands have
begun to perform strongly.
However, GCPL is a relatively small player compared to
HLL, in toilet soaps, with a market share of around 8 per
cent. Once the archrival of HLL, it now occupies the number
three rank, after HLL (54% market share) and Nirma (9%
market share).
Godrej No.1:
Godrej No.1 Luxstands for True Natural
Beauty. Godrej No.1 is available in five
variants enriched with natural ingredients,
specially formulated to cater to special skin types. Sandal,
Rose, Jasmine, Natural and Ayurvedic packed with the
goodness of natural ingredients.
Fairglow :
The Godrej Fair Glow fairness soap contains a powerful
fairness ingredient ' Natural Oxy-G ', which makes you
fairer by reducing the dark melanin without changing the
skin's natural balance. In addition, it also removes
blemishes to give you a clear, glowing complexion.
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Godrej Fair Glow Soap was India's first and is the largest
selling fairness soap. It helps you become fairer in a
convenient way, simply through a daily bath. It is a quality
Grade 1 fairness product having 76% TFM (Total Fatty
Matter). It has a pleasant fragrance and is white in colour.
Cinthol lime fresh:
With the extracts of real lime, Cinthol Lime Fresh provides
deep cleansing along with active
freshness and vitality. This makes for an
invigorating bath that kick starts and
gets you ready for the day.
The soap has an excellent long-lasting lime fragrance that
keeps you feeling fresh throughout the day.
With TFM 76% this Grade1 soap is available in 50g, 75g and
125g.
WIPRO
Wipro Consumer Care is yet another principal
player enjoying a five per cent market share.
After lying dormant for a decade, Wipro
Consumer Care promises moving into top gear.
Wipro has three important brands of soap in its
portfolio: Santoor, Milk and Roses, Chandrika.
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Santoor Soap:
The magic of Sandal & Turmeric comes together in Santoor
- a soap that nourishes your skin with
Sandal and Turmeric to make you look
much younger.
Santoor offered a combination of sandal
and turmeric. Wipro later introduced a
new variant of Santoor - a sandal and besan variant. The
new variant offered the combined benefits of sandal and
besan. Santoor's market share is around three per cent. But
its low market share, the company argues, has to be seen in
the context of its regional presence. This, an outcome of
limited resources, happened around mid-1990s, as the first
round of revival began. Around this time, the company took
a conscious decision to follow a state-oriented strategy.
Santoor Chandan
A Premium soap manufactured with extracts
of Sandalwood oil, Santoor Chandan has a
strong lingering fragrance and is a favourite
of discerning customers.
Milk & Roses soap
The nourishment of milk and the softness of
roses - Milk&Roses gives you glowing skin that
puts even jewellery to shame!
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Available in milky white and glowing pink.
Chandrika
The world’s first Ayurvedic soap brings you
the goodness of nature to give you healthy
and glowing skin. Chandrika, the 65-year-old
brand, now marketed by Wipro Consumer
Care and Lighting, sports contemporary packaging, a new
shape and has many new additions to the host of Ayurvedic
ingredients it is made of.
OTHERS
Colgate-Palmolive (India) Ltd. –
The marketer of personal care products, offers ‘ultra
modern’ line of Transparent Palmolive
Natural skincare soaps. Palmolive has
been the pioneer in introducing soaps for
different skin types (example Palmolive
Extra Care for Dry Skin, for Oily Skin and
for Normal Skin). Its latest range is a combination of
moisturizing glycerin, essential oils and a mixture of
premium natural herbs and flowers. It is available in two
variants – ‘Relaxing’ and ‘Soothing’. Long-lasting and
refreshing, the floral fragrance is aimed at making the user
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feel cared-for and looked-after. The price is Rs.17 for a 100-
gm cake.
Reckitt Benckiser :
A niche player in the Indian soap market owns the well
known brand ‘Dettol’. It had launched a new product -
Dettol Extra Soap. The Dettol Extra Soap is an extension of
the company's existing range of soaps under Dettol brand. It
has a formulation that provides Dettol protection and also
contains moisturizes that prevent skin dryness. The soap
has a pleasant new fragrance and a convenient saddle
shape, making it easy to hold. A 75 g bar is priced at Rs.15.
MARKET SEGMENTATION
PRODUCT
A product is anything that can be offered to a market to
satisfy a need or want.Products that are marketed include
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physical goods, services, experiences, events, persons,
places, properties, organizations, information and ideas.
Product Classification
Marketers have traditionally classified products on the
basis of characteristics: durability, tangibility, and use.
LUXis a Tangible, Non Durable Good on the basis of this
classification.
Consumer Goods Classification
The vast array of goods consumers can buy can be classified
on the basis of shopping habits.
Convenience Goods: The consumer purchases such goods
frequently, immediately and with a minimum of effort.
Shopping Goods: Are goods that the consumer, in the
process of selection and purchase characteristically
compares on the bases of suitability, quality, price and style.
Specialty Goods: Have unique characteristics or brand
identification for which a sufficient number of buyers are
willing to make a special purchasing effort.
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Unsought Goods: Are those the consumer does not know
about or does not normally think of buying LUXand other
soaps fall into the category of Convenience Good
Product Life Cycle
LUXBeauty Bar is in the maturity stage of its life cycle
whereas the LUXBodywash is in the growth stage.
Product Life Cycle:
LUXBeauty Bar is in the maturity stage of its life cycle
whereas the LUXBodywash is in the growth stage.
LUXBody LUXBeauty
Wash Bar
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LUXBeauty Soap- Form, Features, Style:
With icons of beauty endorsing the brand, the offerings
made by Luxhave always been
superior and have always led the
market, setting benchmarks for
competition.
Luxhas beauty offerings in two of
the four market segments – popular
and premium, spanning the needs of varied consumers.
LuxToilet Soap in the popular segment has in the past four
years offered its consumers a range of soaps enriched with
the goodness of a variety of nourishing ingredients – rose
extracts, almond oil, milk cream, fruit extracts and honey
which are known to harbour the secrets of incredibly
perfect skin.
At the upper end of the market is the premium range which
continues to offer specialised skincare to its consumers in
the form of International Lux– a range of
moisturising, deep cleansing and sunscreen
soaps. Keeping in tune with the changing times
it has also launched LuxBody Wash which
offers superior bathing benefits.
To establish the presence of nourishing
ingredients in the new Beauty Soap, a unique
concept, ‘ingredients you can see in the soap’,
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was born. A novel metallic substrate packaging beautifully
showcased the ingredients and its globally accepted
ingredient-linked perfumes heightened the sensorial
experience.
Each of the soaps in the range has milk cream, with the
active ingredients of rose extracts, sandal saffron, almond
oil and fruit extracts. These create an experience in
pampering indulgence and Beauty Soapury designed to
bring out the star in every woman. This is the first time in
the Indian chapter of the brand that the beauty bar variant
was being differentiated on the basis of its ingredients
rather than its perfume and colours.
Though LuxInternational, a premium variant of the toilet
soap, launched in 1989, is differentiated on the basis of its
ingredients, the popular version, LuxBeauty Bar was always
projected as a “pure and mild” solution to soft and smooth
skin.
LuxVariants
In the country since 1929 and endorsed by popular film
stars, Luxis the biggest brand in the soap category.
LuxToilet Soap, in the popular segment, offers its
consumers a range of soaps enriched with the goodness of a
variety of nourishing ingredients –Almond Oil, Orchid
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Extracts, Milk Cream, Fruit Extracts, Saffron, Sandalwood
Oil and Honey. The Luxpremium range offers specialized
skincare to its consumers in the form of LuxInternational. It
also includes LuxBody Wash for superior bathing benefits
keeping in step with the changing needs of the
Luxconsumer
In addition to these variants Luxhas come up with a few
more variants to celebrate its 75 years in business.
SWOT ANALYSIS OF LUX
STRENGTHS
Strong Market Research (door to door sampling is
done once a year in Urban and Rural areas)
Many variants (Almond Oil, Orchid Extracts, Milk
Cream, Fruit Extracts, Saffron, Sandalwood Oil, and
Honey to name a few)
Strong sales and distribution network backed by HLL
Strong brand image
Positioning focuses on the attractive beauty segment
Dynamically continuous innovation of the product and
brand rejuvenation – new variants (Aromatic Glow and
Chocolate Seduction and LuxWhite Spa body wash)
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and innovative promotions (22 carat gold coin
promotion – ‘Chance Hai’)
Perceived to have high value for money (strong brand
promotion but relatively lower price which is a winning
combination in the popular segment)
Though it is in popular segment, it is having mass
appeal/market presence across all segments (15% of
the soap market captured by Lux(sales / volume)
Unique advantage of having access to resources and
assets of HLL
Scope of the Study
The geographical scope of the study was restricted to
Mumbai due to time and resource constraints. The study
being exploratory in nature, the sample size was restricted
to 80 consumers (mostly student group) and 20 retailers.
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Focus being mainly on in-depth probing, the generalizations
drawn are only indicative and not conclusive.
Limitations of the Study Response biasness could be one of the limitations.
The sample chosen may not be the true representative of
the whole population.
As the research was exploratory in nature, it was not
possible to study the accurate phenomenon of the fact.
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RESEARH Methodology:
In order to address the above questions an exploratory
study was conducted. The idea was to probe and get deeper
insight into sales promotion scenario of Lux and to tap
perceptions of retailers and consumers. In order to address
above mentioned objectives
(i) Study of secondary sources was carried out,
(ii) Responses of retailers were taken using structured
questionnaire and
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(iii) Structured questionnaire was designed to seek
consumer responses.
Convenience sampling was used for both retailers as well
as consumer studies. Twenty retailers ranging from small
kirana store to big provision stores were approached. All
the retailers were located in South Mumbai Area. The
respondents for consumer study were mostly students and
consumers found as per convenience in the market. The
total respondents were 80 in number. Data analysis is done
using software package like MS-EXCEL.
Abstract:
The origins of personal cleanliness date back to prehistoric
times. Since water is essential for life, the earliest people
lived near water and knew something about its cleansing
properties - at least that it rinsed mud off their hands. A
soap-like material found in clay cylinders during the
excavation of ancient Babylon is evidence that soap making
was known as early as 2800 B.C. Inscriptions on the
cylinders say that fats were boiled with ashes, which is a
method of making soap, but do not refer to the purpose of
the "soap." Such materials were later used as hair styling
aids. Soap got its name, according to an ancient Roman
legend, from Mount Sapo, where animals were sacrificed.
Rain washed a mixture of melted animal fat, or tallow, and
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A Project Report on LUX
wood ashes down into the clay soil along the Tiber River.
Women found that this clay mixture made their wash
cleaner with much less effort.
Some of the early instances of commercial
manufacturing of soap are:
In Britain references began to appear in the literature from
about 1000AD, and in 1192 the monk Richard of Devizes
referred to the number of soap makers in Bristol and the
unpleasant smells which their activities produced
A century later soap making was reported in Coventry.
Other early centers of production included York and Hull. In
London a 15th century "sopehouse" was reported in
Bishopsgate, with other sites at Cheapside, where there
existed Soper's Lane (later renamed Queen Street), and by
the Thames at Blackfriars Andrew pears. In 1789, he
commenced production of a transparent soap at a factory in
Wells Street, off Oxford Street and became hugely
successful.
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0 5
1 0 1 5 2 0 2 5 3 0 3 5 4 0
P E R C E N T A G E
P r i c e o ff P r o d u c t B u n d l i n g
C a sh R e f u n d
C r o ss P r o m o t i o n
S C H E M E S
P r i z e s
S a l e s P r o m o t i o n sc h e m e s
A Project Report on LUX
DATA ANALYSIS & INTERPRETATION
(1)Sales Promotion Schemes Offered On Beauty
Soap
The primary analysis found that “Price off” is the best sales
promotion schemes offered on Lux(40% of the retailers
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A Project Report on LUX
agreed on this). “Product Bundling” was the next best with
30% of the retailers in favour of the same.
(2)NORMAL DURATION OF SALES PROMOTION
SCHEMES
Theprimary analysis found that “1 month – 3 month” is the
normal accepted duration of sales promotion schemes (60%
of the retailers agreed on this). “More than 3 months” was
the next best with 25% of the retailers in favour of the same
36
0
10
20
30
40
50
15 Days –1 Month
1 Month –3 Month
More than- 3 months
Duration60
60%
25%
15%
F requency of Schemes O ff ered
75%
20 %
5 %
L ess than 3 months
6 months- 1 year
3 - 6 M o n t h s
A f f e c t o n S a l e s
0
2 0
4 0
6 0
8 0
1 0 0
I n c r e a s e in S a le s
C a n t s a y N o E f f e c t
7 5 % S a le s
1 5 % 1 0 %
A Project Report on LUX
(3)HOW OFTEN SALES PROMOTION SCHEMES ARE OFFERED
ON BEAUTY SOAP
The primary analysis found that “Less than 3 months” is the
general perceived frequency for sales promotion schemes
offered on Lux(75% of the retailers agreed on this). “3
months – 6 months” was the next best with 20% of the
retailers in favour of the same.
(4)AFFECT ON SALES OF LUXDUE TO SALES
PROMOTION SCHEMES
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A Project Report on LUX
The primary analysis found that sales promotion schemes
offered on Luxcaused an “Increase in sales” (75% of the
retailers agreed on that). “Can’t say” was the next best
opinion with 15% of the retailers in favour of the same.
(5)COMMUNICATION OF SALES PROMOTION
SCHEMES
The primary analysis found that “Wholesalers” were the
best medium of communication of sales promotion schemes
38
0 1 0
2 0 3 0 4 0 5 0 6 0 7 0 8 0
T h r o u g h S a l e s R e p r e s e n t a t i v e
T h r o u g h w h o l e s a l e r s
T h r o u g h P r i n t
M e d i a
T h r o u g h E l e c t r o n i c
M e d i a
M o d e o f c o m m u n i c a t i o n
f o r p r o m o t i o n s c h e m e s
2 5 %
4 5 %
2 0 % 1 0 %
A ff e c t o f S a l e s P r o m o t i o n
0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0
16-25
A g e g r o u p 26-45 46-60
55%
30%
15%
A Project Report on LUX
(45% of the retailers agreed on that). “Sales
representatives” was the next best with 25% of the retailers
in favour of the same
(6) LEVEL OF SERVICING DURING SALES PROMOTION - COMPARISION WITH COMPETITOR
The primary analysis found that the level of servicing during
sales promotion vis-à-vis competitors was “Superior and
more frequent (45% of the retailers agreed on that).
“Similar and more frequent” was the next best with 35% of
the retailers in favour of the same.
(8)AFFECT OF SALES PROMOTION SCHEMES ON
DIFFERENT AGE GROUP
The primary analysis
found that “26-45
age group” were the
most affected by
sales promotion
(55% of the retailers
39
S u p e r i o r & m o r e
F r e q u e n t
S i m i l a r & m o r e
F r e q u e n t
I n fe r i o r & m o r e
F r e q u e n t
0
2 0
4 0
6 0
O n e - s t o p s h o p ?
S u p e r i o r & l e s s
F r e q u e n t
4 5 %
3 5 %
1 0 % 1 0 %
H a n d l i n g P r o b l e m S t o c k o u t
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
I m p r o p e r in f o r m a t i o n
4 5 % 4 5 %
1 0 %
P r o b l e m s F a c e d
0 5
1 0 1 5
2 0
2 5 3 0
3 5 4 0
4 5
C a s h D is c o u n t
G i f t s P r i z e s O t h e r s
5 0
5 5
5 5 %
2 5 %
1 0 %
1 0 %
A Project Report on LUX
agreed on that). “16-25 age group” was the next best with
30% of the retailers in favour of the same
(9)PROBLEMS FACED DURING & AFTER SALES
PROMOTION
SCHEMES
The primary analysis
found that “Stock out”
and “Handling problem”
were major problems
faced during and after
sales promotion schemes
(with 45% of the retailers in favour of the same)
(10)INCENTIVES PROVIDED DURING SALES
PROMOTION SCHEME
The primary analysis found that
“Cash discount” is the best
incentive provided during sales
promotion scheme offered on
Lux(55% of the retailers agreed on
that). “Prizes” was the next best
with 25% of the retailers in favour
of the same.
40
T i m i n g C o n v e n i e n c e
0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0
B r a n d v a lu e
P r ic e B e n e f i t s P r o m o t io n a l S c h e m e s
F r a g r a n c e
o f S o a p C o lo u r
o f S o a p P a c k a g in g
W o r d o f
M o u t h A d v e r t is
e m e n t
2 5 % 2 0 % 2 0 %
1 5 % 5 % 5 % 3 % 5 % 2 %
A Project Report on LUX
(10)BEST SALES PROMOTION SCHEME
The primary analysis found that “Price off” is the best sales
promotion schemes offered on Lux(55% of the retailers
agreed on that). “Product Bundling” was the next best with
20% of the retailers in favor of the same
CONSUMER’S ANALYSIS
How would you rank following criterion for selecting a
bathing soap?
41
Y e s N o
R e c o m m e n d a t i o n
9 5 %
1 0 %
M e d i u m F o r P r o m o t i o n
0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0
A d v e r t i s i n g S a l e s P r o m o t i o n
P u b l i c R e l a t i o n & P u b l i c i t y
P e r s o n a l S e l l i n g
I n t e r n e t
3 0 % 2 0 %
1 5 %
3 0 %
5 %
A Project Report on LUX
What comes into your mind when you think about L:ux?
RECOLLECTION OF ANY ADVERTISEMENT OF
BEAUTY SOAP
MOST EFFECTIVE MEDIUM OF SALES
PROMOTION
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0
5
1 0
1 5
2 0
2 5
3 0
F r e e T r i a l P r i c e o f f C r o s s P r o m o t i o n D i s c o u n tC o u p o n s
S u p e r i o r N o c h a n g e
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0 P a y m e n t P r e f e r e n c e
A Project Report on LUX
The primary analysis found that “Advertising” is the most
effective medium for sales promotion 30% of the consumers
agreed on that). “Sales Promotion” was the next best with
30%(approx) of the consumers in favour of the same.
PREFERENCE OF PROMTIONAL SCHEME
The primary analysis found that “Free Trial” is the most
preferred promotional scheme (30% of the consumers
agreed on that). “Price Off ”, “Discount Coupons”, “Cross
Promotion” was the next best with 20%, 15%, 10% of the
consumers in favour.
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0
1 0
2 0
3 0
4 0
5 0
6 0
M a k e s y o u s w i t c h t o L u x
B u y i t d u r i n g S a l e s P r o m o t i o n
o f f e r
C o n t i n u e B u y i n g e v e n a f t e r s a l e s
P r o m o t i o n o f f e r i s s c r a p e d
N o C h a n g e
2 0 % 2 0 %
1 0 %
5 0 %
A Project Report on LUX
PERCEPTION ABOUT CHANGE IN QUALITY
DURING SALES PROMOTION SCHEME
The primary analysis found that the perception about
change in quality during sales promotion scheme was
“Superior” (70% of the consumers agreed on that). “No
change” was the next best with 20% of the consumers in
favour of the same
TYPE OF IMPACT
The primary
analysis found that
the type of impact
of sales promotion
was No change in
buying
behaviour” with
50% of the
consumers in favour of the same.
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A Project Report on LUX
CONCLUSIONThe findings of the empirical study indicate that unless
the brand to be promoted is in the consideration set of the
consumer, sales promotion by itself is unlikely to have any
major impact. Clearly this shows that managers need to
invest into brand building exercise so that his/her brand
appears in the consideration set of the target consumers.
Only after this should he spend time, money and energy on
sales promotion activities. Sales promotion should not be
used in isolation but need to be integrated with other tools
and in line with the overall positioning of the brand. Also
the importance of the role of mass media came out clearly
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A Project Report on LUX
in both the studies. Companies need to create sufficient
awareness about sales promotion schemes through mass
media in order to create awareness The role of retailer in
influencing consumer in brand choice decision in a toilet
soap category was found to be insignificant which also
supports the above observations. Toilet soaps are low
involvement products characterised by switching behaviors.
Also the person going to the shop for the purchase of soap
is the final decision maker of the brand. Hence it is essential
that companies need to design attractive, striking, visible
POPs for scheme announcements.
SUGGESTIONS & RECOMMENDATIONS
(1) They should provide more promotions like price-offs
and samples.
(2) Retentive strategy required as the soap segment is in
the mature stage of its product life cycle
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A Project Report on LUX
(3) Line extension – probably with more variants catering
to the beauty segment like natural, herbal soap etc.
(4) Liquid body wash is currently in the growth stage –
Luxshould come out with more variants in this segment
(5) Level of servicing is low during sales promotion
schemes – this could be brought up.
(6) It is having only 19.8 % rural market presentation
which could be further enhanced.
BIBLIOGRAPHY
Websites
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A Project Report on LUX
www.google.com
www.lux.com
DEPARTMENT OF BUSINESS MANAGEMENT SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY , SAGAR
QUESTIONAIRE
Researcher's Name : Mr.Rishi Kumar Sen Name of Person : ___________________
Class : B.B.A. Ist Sem Age : _____________________________
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A Project Report on LUX
Gender : Occupation : ________________________
Address :
Q.1 Do you know about Lux ?
a. Yes. b. No.
Q.2. Have you used Lux?
a. Yes. b. No.
Q.3 How Often Sales Promotion Schemes are offered on Lux.
a. 6 months – 1 year b., 3-6 months c. less than 3 months.
Q.4 Affect on Sales of Lux Due to Sales promotion Schemes
a. Increase in Sale b. Can’t Say c. No effect
Q.5 Affect on Sales of Lux due to Sales Promotion Schemes
a. Age 15-25 b. 26-45 c. 45-55
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A Project Report on LUX
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