LUX :BEAUTY BAR OF FILMSTARS A STUDY

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

8. Data Analysis 9. Conclusions 10. Recommendations References Appendix

EXECUTIVE SUMMARY

OBJECTIVES OF STUDY
The main objectives of the study are: i) To assess the consumer sales promotion schemes offered on Lux. ii) To get an insight into retailers views regarding the schemes being offered on Lux. iii) To study consumer perceptions regarding various schemes on Lux and responses toward them.

1. SCOPE OF THE STUDY

The geographical scope of the study was restricted to the Ghaziabad & Delhi due to time and resource constraints. The study being exploratory in nature, the sample size was restricted to 80 consumers (mostly student group) and 20 retailers. Focus being mainly on in-depth probing, the generalizations drawn are only indicative and not conclusive.

2. LIMITATIONS OF THE PROJECT

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

3. METHODOLOGY
In order to address the above questions an exploratory study was conducted. The idea was to probe and get deeper insight into sales promotion scenario of Lux and to tap perceptions of retailers and consumers. In order to address above mentioned objectives (i) Study of secondary sources was carried out, (ii) Responses of retailers were taken using structured questionnaire and (iii) Structured questionnaire was designed to seek consumer responses. Convenience sampling was used for both retailers as well as consumer studies. Twenty retailers ranging from small kirana store to big provision stores were approached. All the retailers were located in Ghaziabad and Delhi area. The respondents for consumer study were mostly students and consumers found as per convenience in the market. The total respondents were 80 in number. Data analysis is done using software packages like SPSS & MS-EXCEL.

4. ABSTRACT
The origins of personal cleanliness date back to prehistoric times. Since water is essential for life, the earliest people lived near water and knew something about its cleansing properties - at least that it rinsed mud off their hands. A soap-like material found in clay cylinders during the excavation of ancient Babylon is evidence that soap making was known as early as 2800 B.C. Inscriptions on the cylinders say that fats were boiled with ashes, which is a method of making soap, but do not refer to the purpose of the "soap." Such materials were later used as hair styling aids. Soap got its name, according to an ancient Roman legend, from Mount Sapo, where animals were sacrificed. Rain washed a mixture of melted animal fat, or tallow, and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort. Some of the early instances of commercial manufacturing of soap are: In Britain references began to appear in the literature from about 1000AD, and in 1192 the monk Richard of Devizes referred to the number of soap makers in Bristol and the unpleasant smells which their activities produced A century later soap making was reported in Coventry. Other early centers of production included York and Hull. In London a 15th century "sopehouse" was reported in Bishopsgate, with other sites at Cheapside, where there existed Soper's Lane (later renamed Queen Street), and by the Thames at Blackfriars Andrew pears. In 1789, he commenced production of a transparent soap at a factory in Wells Street, off Oxford Street and became hugely successful.

5. COMPANY BACKGROUND

INTRODUCTION

Understanding perceptions of channel members and consumers regarding sales promotion activities enhances the effectiveness of these activities. Widespread usage of sales promotion activities in Fast Moving Consumer Goods (FMCG) sector makes it imperative that manufacturers take into account channel member and consumer perceptions before planning such programmes. In this paper, an attempt has been made to examine the nature of sales promotion activities in toilet soap category in India, study retailer perceptions with respect to these activities and also get an insight into consumer perceptions of these activities. Our findings indicate that with respect to the nature of the schemes, premiums (free gifts) were found to be the most frequently used in both premium and popular toilet soap category, followed by price offs. Retailers perceived price offs to have relatively greater impact compared to any other forms of sales promotion. In line with the retailers perceptions, the findings of consumer perceptions indicated that price off was the most preferred type of sales promotion. Retailers stated that role of word of mouth and television advertising was very important in providing information inputs to the consumers regarding sales promotion activities. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. As the retailer interacts and observes consumers more frequently and closely than the manufacturer, it would be useful for the companies to incorporate perceptions while planning sales promotion strategies.

All the above researches have focused on price promotions and their response. Our study though exploratory has considered perceptions for price as well as non-price promotions in toilet soap category. The reasons for the study were: i) ii) iii.) 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 LEVER LIMITED

In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods(FMCG). Soon after, followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HLL in November 1956; HLL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HLL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in HLL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company.

HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994 - Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Ice-cream Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution rights too were acquired. Finally, BBLIL merged with HLL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998. The two companies had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories.

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In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HLL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HLL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HLL acquired the government's remaining stake in Modern Foods. In 2003, HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.

MARKET SHARE OF VARIOUS COMPANIES (TOILET SOAPS) HLL GODREJ WIPRO NIRMA OTHERS

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

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LUX: THE STAR PERFORMER

The great Indian brand wagon started nearly four decades ago. Great brands sometimes outlast their ambassadors as proven by Lux which is celebrating its 75th anniversary in India. The first ambassador, Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. She gave way to a galaxy of stars which includes Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai and Kareena Kapoor. The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. The brand has outlasted many soaps. From the beginning, Lux became a household name across the country. Actor Hema Malini says, One of the turning points in my career was when I was signed up by Lux. It was then that I knew I had made my mark in Indian cinema as a leading lady. To be a Lux star is a much sought after honour amongst leading ladies and it truly means a lot to me. After 50 Indian female actors lathering up with Lux, it is now the turn of a male actor, Shah Rukh Khan, to say, Aaj mein aapko batanewala hoon meri khubsuratein ka raaz Lux. Ab batayein aapka favourite Lux Star kaun hai? (I want to tell you about my beauty secret Lux. Who is your favourite Lux Star?) In 1926, Ginger Rogers became the first Hollywood great to appear in a Lux commercial. The first Lux bar made in India was sold for the princely sum of two annas in 1934.

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LUX: VARIANTS

In the country since 1929 and endorsed by popular film stars, Lux is the biggest brand in the soap category. Lux Toilet Soap, in the popular segment, offers its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts, Saffron, Sandalwood Oil and Honey. The Lux premium range offers specialized skincare to its consumers in the form of Lux International. It also includes Lux Body Wash for superior bathing benefits keeping in step with the changing needs of the Lux consumer In addition to these variants lux has come up with a few more variants to celebrate its 75 years in business. The Lux Celebration Range is a set of three exclusive variants- Aromatic Glow and Chocolate Seduction and Lux White Spa body wash containing exotic ingredients, never seen in the Indian market before.

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LUX : COMPETITOR ANALYSIS

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

Nirma Bath Soap: Toilet soap market in India was dominated by a very few MNCs which could monopolistically price their product. In 1992, sensing a strong need to expand the market through Penetrative Pricing, Nirma entered this market with the launch of Nirma Bath Soap, which is a carbolic (Red) soap. Although the carbolic soap segment is on decline, Nirma Bath has generated larger volumes each year. Packed in a red color wrapper and available in 75 gram and 150 gram pack sizes, this soap has a Total Fatty Matter (TFM) of 60 %.

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Nirma Beauty Soap: With its market promise to offer Better Products, Better Value, Better Living, Nirma introduced Nirma Beauty Soap in the year 1992. Available in three different variants and pack sizes, this soap has a TFM content of 70%. Due to its admirable perfume and a higher TFM content, this brand, within a short span of five years, had achieved the status of the third largest selling toilet soap brand and still continues its outstanding performance

Nirma Lime Fresh Soap: This product had created a sensational marketing history in the Indian Toilet soaps market, when it was launched in 1997. Seventeen million packs of Nirma Lime Fresh soap were sold in the very first month of its soft launch. Packed in a poly coated 75 gm carton, which is printed on the worlds best Cerruti 8-colour printing machine, this soap is available in green colour. With a lime aroma that tingles in ones 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 Nirmas commitment towards its consumers. Nima Rose soap has got an exceptionally soft rose fragrance which remains around body for a long time even after bath. The high TFM content of this product allows a consumer to have pleasant bath. This brand had carved a niche in its segment by achieving leadership position just within two months of its launch. It is available in 100g and 150g pack sizes.

Nima Sandal. Over the period, Indian toilet soap market has fragmented & has seen emergence of prominent floral fragrance segments as Sandal, Rose, Jasmine, etc. Nima Sandal is a one of such product in floral segment. This toilet soap has 80% TFM content, with rich & exotic fragrance. It promises benefits of Sandal oil & Turmeric powder. It is a premium product from Nima stable and is available in 100g and 150g packs. The company has expanding into other segments of the fragmented five lakh tonne soap market. It launched Nirma Beauty soap in the premium segment. Nirma Beauty Soap carried a MRP price tag of Rs 7 and was sold at Rs 6, while Levers Lux sold for Rs 8. Imitating Levers time-tested strategy, Nirma used actress Sonali Bendre in its advertising. Today, Nirma Beauty soap sells whopping 45,000 tonnes, making it the3rd largest soap brand after Lux and Lifebuoy.

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When Lever made an assault on Nirma Beauty Soap with its Breeze, the Patels quickly hit back at Levers freshness plank. Nirma Lime Fresh was positioned against Levers Liril Lime Fresh, but while Liril sold for Rs 12.50, Nirma Lime Fresh sold for Rs 8. Breaking away from tradition, Nirma introduced a new soap brand, Nima Lime, in the key markets of Gujarat and Maharashtra. The launch was significant because it was the first time since the company's inception that Nirma had chosen to move away from its umbrella branding strategy by adopting a new brand name. With a wrapper price of Rs 6.50 and a total fatty matter (TFM) content of 70 per cent, Nima Lime Fresh was aimed at the popular segment of the toilet soaps market. This is Nirma's fourth brand launch in the toilet soaps market. It marked its foray in the early nineties by launching Nirma beauty soap to take on Lever's best selling brand; Lux. Nirma followed it up with Nirma Premium, Nirma Lime Fresh.

GODREJ

Godrej Consumer Products Ltd.(GCPL) is a major player in the Indian FMCG market with leadership in personal, hair, household and fabric care segments. The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Silvassa (U.T.).

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Godrej is among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL, FAIRGLOW, GODREJ NO 1. Their FAIRGLOW brand, India's first Fairness soap, has created marketing history as one of the most successful innovation. Market share in Toilet soaps grows to 8.0% in FY 2004-05 from 6.8% in FY 200304. All three Power brands have begun to perform strongly. However, GCPL is a relatively small player compared to HLL, in toilet soaps, with a market share of around 8 per cent. Once the archrival of HLL, it now occupies the number three rank, after HLL (54% market share) and Nirma (9% market share).

Godrej No.1 Godrej No.1 Beauty Soap stands for True Natural Beauty. Godrej No.1 is available in five variants enriched with natural ingredients, specially formulated to cater to special skin types. Sandal, Rose, Jasmine, Natural and Ayurvedic packed with the goodness of natural ingredients.

Fairglow The Godrej FairGlow fairness soap contains a powerful fairness ingredient ' Natural Oxy-G ', which makes you fairer by reducing the dark melanin without changing the skin's natural balance. In addition, it also removes blemishes to give you a clear, glowing complexion.

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Godrej FairGlow Soap was India's first and is the largest selling fairness soap. It helps you become fairer in a convenient way, simply through a daily bath. It is a quality Grade 1 fairness product having 76% TFM (Total Fatty Matter). It has a pleasant fragrance and is white in colour.

Cinthol lime fresh

With the extracts of real lime, Cinthol Lime Fresh provides deep cleansing along with active freshness and vitality. This makes for an invigorating bath that kick starts and gets you ready for the day. The soap has an excellent long-lasting lime fragrance that keeps you feeling fresh throughout the day. With TFM 76% this Grade1 soap is available in 50g, 75g and 125g.

WIPRO
Wipro Consumer Care is yet another principal player enjoying a five per cent market share. After lying dormant for a decade, Wipro Consumer Care promises moving into top gear. Wipro has three important brands of soap in its portfolio: Santoor, Milk and Roses, Chandrika. 19

Santoor soap The magic of Sandal & Turmeric comes together in Santoor - a soap that nourishes 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 your skin with Sandal and Turmeric to

Santoor Chandan A premium soap manufactured with extracts of Sandalwood oil, Santoor Chandan has a strong lingering fragrance and is a favourite of discerning customers.

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Milk & Roses soap The nourishment of milk and the softness of roses - Milk&Roses gives you glowing skin that puts even jewellery to shame! Available in milky white and glowing pink.

Chandrika The worlds first Ayurvedic soap brings you the goodness of nature to give you healthy and glowing skin. Chandrika, the 65-year-old brand, now marketed by Wipro Consumer Care and Lighting, sports contemporary packaging, a new shape and has many new additions to the host of Ayurvedic ingredients it is made of.

OTHERS
Colgate-Palmolive (India) Ltd. - the marketer of personal care products, offers ultra modern line of Transparent Palmolive Natural skincare soaps. Palmolive has been the pioneer in introducing soaps for different skin types (example Palmolive Extra Care for Dry Skin, for Oily Skin and for Normal Skin). Its latest range is a combination of moisturizing glycerin, essential oils and a mixture of premium natural herbs and flowers. It is available in two variants Relaxing and Soothing. Long-lasting and refreshing, the floral fragrance is aimed at making the user feel cared-for and looked-after. The price is Rs.17 for a 100-gm cake.

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Reckitt Benckiser - a niche player in the Indian soap market owns the well known brand Dettol. It had launched a new product - Dettol Extra Soap. The Dettol Extra Soap is an extension of the company's existing range of soaps under Dettol brand. It has a formulation that provides Dettol protection and also contains moisturizes that prevent skin dryness. The soap has a pleasant new fragrance and a convenient saddle shape, making it easy to hold. A 75 g bar is priced at Rs.15.

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7. FOUR Ps OF LUX

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

Achievements
Lux is the largest personal wash brand in the country with a value share of 17%. Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux during the course of a year. This strong association with consumers has led to Lux becoming one of the most trusted brands in the country. Lux has retained its leadership status by strongly differentiating itself no soap brand can claim to be more aspirational for the Indian consumer than Lux - the beauty soap of film stars. The last three years have seen Lux continue to grow far ahead of the market. It has gained close to 4% share in this period. A key initiative that has fuelled this growth has been the launch of Mini Lux strategically priced at Rs. 5 to bring it within the reach of 300 million rural consumers. The introduction of new perfume and ingredient variants, addressing new benefit segments, has been the other growth driver.

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History
Lux soap was launched in India in 1929. The first bar of Lux was made in India and sold for a princely sum of two annas in 1934. From the very first advertisement in 1929 featuring Leela Chitnis, the gorgeous faces of the silver screen have come out in the open with their beauty secret Lux. Popularly known as the beauty soap of film stars, Lux has been a favorite with generations of users for the experience of sensuous, luxurious bathing. Since its launch in India, Lux has offered a range of soaps in different colours and fragrances. They have each, however, offered the same benefit of beautiful skin. Desirable product sensorials, especially its world class fragrances and nourishing ingredients, have made the Lux bath a pleasurable experience. But Lux being the market leader has evolved along with the changing needs of its consumers. The late 1980s saw the emergence of a premium segment in the soap category a new consumer set whose beauty and bathing needs began to evolve. In 1989, to tap into this segment, Lux launched a range of premium soaps to suit their different skin types.

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The FOUR Ps
(A)Product
A product is anything that can be offered to a market to satisfy a need or want.Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas.

Product Classification
Marketers have traditionally classified products on the basis of characteristics: durability, tangibility, and use. LUX is a Tangible, Non Durable Good on the basis of this classification.

Consumer Goods Classification

The vast array of goods consumers can buy can be classified on the basis of shopping habits: Convenience Goods: The consumer purchases such goods frequently, immediately and with a minimum of effort. Shopping Goods: Are goods that the consumer, in the process of selection and purchase characteristically compares on the bases of suitability, quality, price and style. Specialty Goods: Have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort. Unsought Goods: Are those the consumer does not know about or does not normally think Of buying LUX and other soaps fall into the category of Convenience Good 25

Product Life Cycle

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

LUX Body Wash

LUX Beauty Bar

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Product Line

Soaps:

Lux

Lux

Lux Lux

Lux

Lux

Lux

Lux

Lux

Almond Orchid Fruit Saffron Sandalwood Rose International Chocolate Aromatic Extracts Extracts 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

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LUX Beauty Soap- Form, Features, Style

With icons of beauty endorsing the brand, the offerings made by Lux have always been superior and have always led the market, setting benchmarks for competition. Lux has beauty offerings in two of the four market segments popular and premium, spanning the needs of varied consumers. Lux Toilet Soap in the popular segment has in the past four years offered its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients rose extracts, almond oil, milk cream, fruit extracts and honey which are known to harbour the secrets of incredibly perfect skin. At the upper end of the market is the premium range which continues to offer specialised skincare to its consumers in the form of International Lux a range of moisturising, deep cleansing and sunscreen soaps. Keeping in tune with the

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

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Trade Character

Labelling
The LUX Trade Character or Logo is present prominently on the package. A novel metallic substrate packaging showcases the ingredients, and a female model is shown on the pack. Also diplayed graphically are the key ingredients. The ingredients, place of manufacture have been listed. Also listed is the consumer complaint cell address in case of unsatisfactory product.

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

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

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

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Developing New Variants

The new Lux Beauty Bar is significantly better on all aspects including aesthetics, sensorials, skin care, value for money, perfume and ingredients. The company claims that a new initiative behind Lux beauty bar was always in the offing, market conditions notwithstanding. HLLs structured innovation programme was the driving force. This programme, which charts the route for every HLL brands progress, works eight to 12 quarters ahead of the companys brands. For instance, at the time when Lux International with a superior moisturizer was launched in 1999, the company claims to have been working simultaneously on Lux Sunscreen which was launched in 2000. Lux is always a step ahead of trends rather than following the trend. It would rather orient and direct the change rather than follow it. This flag-bearing programme according to the company, helped in timing the relaunch. Also by using brand-oriented research, the company identified two sets of consumers. One was the loyal base of existing Lux Beauty Bar consumers. The other was the target segment which would be the source of growth for Lux. This segment comprised of those customers who were buying soaps in the subpopular segment, but could shift upwards if a better product was offered in the popular segment. A company executive says, The entire relaunch exercise was aimed at delivering a superior mix, which would tap into this source of growth.

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

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(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

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Advertising
Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor. Ads can be a cost effective way to disseminate messages, whether to build a brand preference or to educate people.

LUX ADVERTISEMENTS THROUGH THE AGES

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

MADHUBALA IN A LUX PRINT ADVERTISEMENT

WAHEEDA REHMAN IN A LUX PRINT ADVERTISEMENT

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VYAJANTIMALA IN A LUX PRINT ADVERTISEMENT

SAIRA BANO IN A LUX PRINT ADVERTISEMENT

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

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AISHWARYA RAI IN A PRINT ADVERTISEMENT FEATURING LUX INTERNATIONAL

KAREENA KAPOOR SHOWCASING THE LATEST CHOCOLATE VARIANT BY LUX

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Advertisement Analysis

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

Lux campaigns have wooed millions of people over the decades. Popularly known as the beauty soap of film stars, Lux has been an intimate partner of the brightest stars on the silver screen for decades. An ode to their beauty, an announcer of their stardom, advertising campaigns on Lux have featured film stars across the nation, promising their beauty and complexion to ordinary women. With top movie stars from Madhubala to Madhuri, from Babita to Karisma and Kareena having endorsed the goodness of Lux over generations, it was natural that the brand has built equity as the best beauty soap in India. From the beginning Lux, by using a leading film star of the time, has fulfilled the consumers aspirations of using beauty soaps via the rationale if its good enough for a film star, its good for me. This later moved into a transformation role of having a bath with Lux, which transports the user into a fantasy world of icons, film stars and fairy lands.

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

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

CELEBRATING 75 years of the Lux brand, Hindustan Lever has decided to break away from tradition. It has changed the feminine face of its second largest selling soap brand to show reigning superstar Shah Rukh Khan sitting in a tub of petals along with actresses of yesteryear who have already featured as Lux models. Increasing competition and lack of innovation in the soaps category has led the FMCG biggie to try out something `new,' which, hopefully, will change the fortunes of the languishing brand. After intense brainstorming by the company's brand team and JWT, the ad agency for Lux, Shah Rukh Khan was seen as the right connect. Shah Rukh is a big draw and women just love him. The target audience for Lux is women. Shah Rukh is a great favourite with women of all ages. So the strategy for Lux has not really changed. It is just the execution that is very different; instead of a female star in the tub, they have Shah Rukh. The new campaign featuring King Khan shows him immersed in a bath tub with petals and talking about `his beauty secrets' (`Meri Sundarta Ka Raaz'). The beauty soap of female stars has moved from traditionally using reigning film stars and now has been endorsed by nearly 50 Indian film stars. 42

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

Apart from the events and promotions, the new campaign with Shah Rukh is intended to help in reviving the heritage brand, which has always relied on film stars for its ads. And it has used male stars in the past in international markets. So while it is a big departure, it is with a reason. And the ad is not claiming that SRK is using the brand. He is not shown using the soap. He is merely in a bath tub surrounded by the Lux stars. So it is a device to inject a bit of novelty and `buzz value' into an old brand. To quote the marketing of HLL, one word that comes to mind is mammoth. Despite constantly declining net profitability, HLL has retained its stronghold as countrys biggest advertiser in 2004. The FMCG giant topped the list of Indias leading advertisers with a combined TV and press ad spend of Rs.517 crore last year. In fact HLL upped its spend by 30.5% in 04 to Rs.396 crore in 03.

Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. 43

Sales promotion includes tools for CONSUMER PROMOTION Samples Coupons Cash Refund Offers Prices Off Premiums Prizes Patronage Rewards Free Trials Warranties Tie in Promotions Cross Promotions Point Of Purchase Displays Demonstrations

TRADE PROMOTION Prices Off Advertising and display Allowances Free Goods

BUSINESS AND SALES-FORCE PROMOTION Trade Shows and Conventions Contests for Sales Reps Specialty Advertising 44

Objectives of sales promotion:

Sales Promotions vary in their specific objectives. Sellers use incentive type promotions to attract new trials, reward loyal customers, and to increase the repurchase rates of occasional users. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums. Sales promotions are generally unlikely to turn them into loyal users, although they may be induced to make subsequent purchases. Sales promotions used in markets of high brand similarity can produce a high sales response in the short run but permanent gain in the market share. In markets of high brand dissimilarity, sales promotions maybe able to alter market shares permanently. In addition to brand switching, consumers may engage in stockpiling- purchasing earlier than usual or purchasing extra quantities. But sales may hit a post promotion dip. A number of sales promotion benefits flow to the manufacturers and consumers. Sales promotions enable manufacturers to adjust to short term variations in supply and demand. They enable manufacturers to test how high a list price they can charge, because they can always discount it. They induce consumers to try new products instead of never straying from current ones. They lead to more varied retail formats, such as everyday-low-price store and the promotional pricing store. For retailers, promotions may increase sales of complementary categories as well as induce some store switching by consumers. They promote greater consumer awareness of prices. They permit the manufacturers to sell more than they would normally sell at list prices. They help the manufacturer to adapt programs to different consumer segments. Consumers themselves enjoy some satisfaction from being smart shoppers when they take advantage of price specials.

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

Sales Promotion Schemes Used By LUX

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

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

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50,000 from Shoppers' Stop along with an exclusively designed Neeta Lulla sari and a beauty makeover by Michelle Tung, Aishwarya's preferred designer and stylist. The pice de rsistance was a dinner date with Aishwarya Rai herself. The Lux Star Bano, Aish Karo contest aims to drive the brand proposition Mujh mein star jagaye further. The Lux `Be a Star' promotion is an unique offering through which LUX brings what stardom feels like to customers. Lux is celebrating 75 years of stardom in India and to kick start the celebration, Lux has launched the Har Star Lucky Star activity. Har Star Lucky Star offer is bound to go down in history as the only activity where every consumer is a winner! All wrappers of Lux have a star printed inside them. If the consumer finds written inside the star, any number from 1 to 5, she will get an equivalent discount (in rupees) on her purchase from her shopkeeper. If the consumer finds 75 years written inside the star, she will get a years supply of Lux free, courtesy the beauty stars.

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

Email: Name: Please enter your name and email to play the game.

Online Contests

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Public Relations:

Not only must the company relate constructively to customers, suppliers and dealers, it must also relate to a large number of interested publics.A public is any group that has an actual or potential interest in or impact on a companys ability to achieve its objectives. PR involves a variety of programs designed to promote or protect a companys image or its individual products. They perform the following functions: Press relations: Presenting news and information about the organization in the most positive light. Product Publicity: Sponsoring efforts to publicize specific products. Corporate Communications: Promoting understanding of the organization through internal and external communications. Lobbying: Dealing with legislators and government officials to promote or defeat legislation and regulation. Counselling: Advising management about public issues and company positions and image during good and bad times

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

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

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(C)Price
"Price" is pretty self-explanatory but its very important to success. Price something too high and a company may never sell a single item of it. Price it too low and one can lose money on every sale once all of costs of doing business are considered. So you want to price it attractively so that you can sell it to your clients and theyll feel good about the purchase. HLL seems to have mastered this idea. Prices of HLL are considered the most competitive in Indian market. With an operating profit of 470 Mn$ and a turnover of 2,190 Mn$, HLL has no need to look back on the fact that it is a leader. The main fact for this huge success story is the strategic pricing decision the company has adopted from time to time. HLL always gives value for money to his consumers. It is known for its competitive pricing. HLL has the advantage of quoting a reasonable price due to its economy of scale. HLL also can quote a very competitive price due to its superior technology and optimum utilization of inventory. HLL has the product range that meets the needs of all classes of consumers. It has the products that are categorized as premium and mass products, which have been described above. HLL matches its prices with the competitor who is operating in the same category. HLL also gives price offs on its products to reward consumers who are using it for a long time and also to attract new consumers. The LUX Beauty Bars are priced as follows: 100gms: Rs. 13 150gms: Rs. 19 LUX International is priced at 125gm: Rs. 21

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International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. It is priced at Rs. 70 for 250 ml Rs. 40 for 150 ml Lux has also introduced the Mini Lux that has helped in better penetration of the rural market. Priced at 45g: Rs. 5

(D)Place
Cutting-edge distribution network HLLs distribution network is recognized as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country. The need for a strong distribution network is imperative, since HLLs corporate purpose is to meet the everyday needs of people everywhere. At Hindustan Lever Limited, distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+ suppliers and associates, 45 C&F.A.s, 7,000 stockists and direct coverage in over 1 million retail outlets across India. To meet the ever-changing needs of the consumer, HLL has set up a distribution network that ensures availability of all their products, in all outlets, at all times. This includes, maintaining favorable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things. HLL boasts of placing a product across the country in less than 72 hrs.

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The first phase of the HLL distribution network had wholesalers placing bulk orders directly with the company. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orders collected. Today, the goods are transferred from the factory to the company warehouses (C&F.A godowns) and are sent to the distributor from there on a daily basis. From the distributor, the stock reaches the market through daily sales. Typically, these include the salesman registering the order of a retail outlet and delivering the goods the next day. Recently HLL has changed its traditional way distribution and came out with a new strategy of distribution. Its because of the change in buying pattern of the consumer due to more disposable income. There are different channels of distribution like Modern Trade, which covers all chains of super markets like Food World, who get the stocks directly from the company. Wholesalers and second leg of big retail outlets called Super Value stores come under the surveillance of the distributor along with the mass retail outlets. There is also this new concept in the HLL distribution channel called Kiosk. Kiosk is a small shop that sells only sachets and low priced items (below Rs.10/-). Kiosk also does not come under the surveillance of the distributor. In addition to the ongoing commitment to the traditional grocery trade, HLL is building a special relationship with the small but fast emerging modern trade. HLL's scale enables it to provide superior customer service including daily servicing, improving their range availability whilst reducing inventories. HLL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. This is building traffic into the stores while yielding high growth for the business. An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. The objective is to catalyse HLLs growth by ensuring that the right product is available at the right place in right

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quantities, in the most cost-effective manner. For this, stockists have been connected with the company through an Internet-based network, called RSNet, for online interaction on orders, dispatches, information sharing and monitoring. RS Net covers about 80% of the company's turnover. Today, the sales system gets to know every day what HLL stockists have sold to almost a million outlets across the country. RS Net is part of Project Leap, HLL's end-to-end supply chain, which also includes a back-end system connecting suppliers, all company sites and stretching right Upto stockists. RS Net has come as a force multiplier for HLL Way, the company's action-plan to maximize the number of outlets reached and to achieve leadership in every outlet, by unshackling the field force to solely focus on secondary sales from the stockists to retailers and market activation. HLL Way has also led to implementing best practices in customer management and common norms and processes across the company. Powered by the IT tools it has further improved customer service, while ensuring superior availability and impactful visibility at retail points. For rural India, HLL has established a single distribution channel by consolidating categories. In a significant move, with long-term benefits, HLL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stockists. It has already appointed 6000 such sub-stockists. As a result, the distribution network directly covers about 50,000 villages, reaching about 250 million consumers. Distribution will acquire a further edge with Project Shakti, HLL's partnership with Self Help Groups of rural women. The project, started in 2001, already covers over 5000 villages in 52 districts of Andhra Pradesh, Karnataka Madhya Pradesh and Gujarat, and is being progressively extended. The vision is to reach over 100,000 villages, thereby touching about 100 million consumers. The SHGs have chosen to adopt distribution of HLL's products as a business venture, armed with training from HLL and support from government agencies concerned and NGOs. A typical Shakti entrepreneur conducts business of around Rs.15000 per month,

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

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

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The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats. Internal Analysis - The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as:

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

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

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

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

The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats. SWOT PROFILE OF LUX

STRENGTHS

WEAKNESSES

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

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name a few) backed by HLL 4.Strong brand image beauty segment

International variant did not do well in 4.Certain advertisements like the

3.Strong sales and distribution network the market recent one with Shah Rukh Khan of the message of the advertisement

5.Positioning focuses on the attractive resulted in controversial interpretations 6.Dynamically continuous innovation of and lead to some loss of focus (of the product and brand rejuvenation message of the advertisements) new variants (Aromatic Glow and Chocolate 5.Stock out problems - replenishment
Seduction and Lux White Spa body wash)

and time is high in semi-urban/rural areas

innovative promotions (22 carat gold coin promotion Chance Hai) 7.Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment) 8.Though it is in popular segment, it is having mass appeal/market presence across all segments (15% of the soap market volume) 9.Unique advantage of having access to resources and assets of HLL OPPORTUNITIES 1.Soap industry growing by 4% in India 2.Beauty segments Annual Growth Rate (CAGR) is very would THREATS increase the competition Compounded 1.New entrants/local competitors/MNCs captured by Lux (sales /

high. An indication of this is that Fair (Camay, P&G) and Lovelys segment is increasing at a 2.High internal competition Pears fast rate - Lux must reinforce its also catering the beauty segment (also

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presence in the beauty segment samples

from HLL stable) segment makes Lux vulnerable to change makes the

3.More promotions like price-offs and 3.Excessive dependence on beauty 4.Retentive strategy required as the changing customer tastes soap segment is in the mature stage of 4.Technological its product life cycle existing products obsolete Lux should

5.Line extension probably with more focus on technological innovations like variants catering to the beauty segment Body Wash like natural, herbal soap etc 6.Liquid body wash is currently in the growth stage Lux should come out with more variants in this segment 7.Level of servicing is high during sales promotion schemes this could be brought down

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PERCEPTUAL MAPPING OF BRAND LUX

Perceptual mapping of some important brands

Mysore Sandal

Dov e Price Pear s

Dettol Cinthol Sales Promotion Nirma Breez e

Lu x

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

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8.DATA ANALYSIS
RETAILERS ANALYSIS

(1)SALES PROMOTION SCHEMES OFFERED ON LUX

Schemes_
Cash refund Cross promotion Price off Prizes
5.0% 10.0%

Product bundling

30.0%

40.0% 15.0%

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

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(2)NORMAL DURATION OF SALES PROMOTION SCHEMES

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

25.0%

60.0%

15.0%

The primary analysis found that 1 month 3 month is the normal accepted duration of sales promotion schemes (60% of the retailers agreed on this). More than 3 months was the next best with 25% of the retailers in favour of the same.

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

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

20.0%

5.0%

75.0%

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The primary analysis found that Less than 3 months is the general perceived frequency for sales promotion schemes offered on Lux (75% of the retailers agreed on this). 3 months 6 months was the next best with 20% of the retailers in favour of the same.

(4)AFFECT ON SALES OF LUX DUE TO SALES PROMOTION SCHEMES

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Affect_on_Sales
Cant say Increase in sales No affect

10.0% 15.0%

75.0%

The primary analysis found that sales promotion schemes offered on Lux caused an Increase in sales (75% of the retailers agreed on that). Cant say was the next best opinion with 15% of the retailers in favour of the same.

(5)COMMUNICATION OF SALES PROMOTION SCHEMES 66

Communication
Through print media Through wholesalers Through electronic media Through sales representatives

15.0% 25.0%

40.0% 20.0%

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

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

Comparision_with_competitors

Inferior and more frequent Similar and more frequent

10.0%

Superior and less frequent Superior and more frequent

45.0%

35.0%

10.0%

The primary analysis found that the level of servicing during sales promotion vis--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.

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

Affect_on_perception_on_age_group

26-45 46 -60 16-25

30.0%

55.0%

15.0%

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

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(8)PROBLEMS FACED DURING & AFTER SALES PROMOTION SCHEMES

Problems_faced
Handling problem Stock out Improper information

10.0%

45.0%

45.0%

The primary analysis found that Stock out and Handling problem were major problems faced during and after sales promotion schemes (with 45% of the retailers in favour of the same)

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(9)INCENTIVES PROVIDED DURING SALES PROMOTION SCHEME

Incentives_provided
Cash discount Gifts Prizes Others
10.0%

25.0%

55.0%

10.0%

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The primary analysis found that Cash discount is the best incentive provided during sales promotion scheme offered on Lux (55% of the retailers agreed on that). Prizes was the next best with 25% of the retailers in favour of the same.

(10)BEST SALES PROMOTION SCHEME

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Best_schemes
Cash refund Price off Product bundling Scratch card
10.0% 15.0%

20.0%

55.0%

The primary analysis found that Price off is the best sales promotion schemes offered on Lux (55% of the retailers agreed on that). Product Bundling was the next best with 20% of the retailers in favor of the same

CONSUMERS ANALYSIS

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(1)MOST PREFFERED CRITERION FOR SOAP SELECTION

Most preffered criterion

Advertisement Brand value
6.25% 3.75% 15.0% 13.75% 2.5%

Fragrance of soap
7.5%

Price Promotional schemes Benefits Color of soap Packaging Word of mouth

10.0%

12.5%

28.75%

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

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(2)PERCEPTION ABOUT LUX

Perception about Lux

Beauty soap Nothing specific Soap for all Soap of filmstars
15.0%

50.0% 23.75%

11.25%

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

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(3)RECOLLECTION OF ANY ADVERTISEMENT OF LUX

Recall of current advertisement

No Yes.

8.75%

91.25%

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

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(4)MOST EFFECTIVE MEDIUM OF SALES PROMOTION

Most effective medium for promotion

Personal selling Advertising Sales promotion
10.0%

31.25%

58.75%

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

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(5)PREFERENCE OF PROMTIONAL SCHEME

Preference of promotional schemes

Discount coupons Free trial Scratch card
12.5% 6.25% 3.75% 6.25%

Cash refund Cross promotion Price off Prizes

13.75%

42.5%

15.0%

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

(6)PERCEPTION ABOUT CHANGE IN QUALITY DURING SALES PROMOTION SCHEME

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Perception about change in quality

Superior No change
6.25%

93.75%

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

(7)TYPE OF IMPACT

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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%

13.75%

Makes you switch to Lux

38.75%

21.25%

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

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(8)COMMUNICATION OF SCHEME

Communication of schemes
Through companys stall
3.75%

Through electronic media

11.25%

Through print media Through sales representatives

26.25%

58.75%

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

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(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

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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 Luxs promotion schemes were Superior and more frequent vis--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

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(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.

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(12)PRICE OF SOAP

Price
Dissatisfied Neutral Satisfied Very satisfied
7.5%

Satisfied

42.5% 32.5%

2.5% 15.0%

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

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(13)DISTRIBUTION NETWORK

Distribution Network
Neutral Very satisfied Dissatisfied Satisfied

21.25%

47.5%

26.25%

5.0%

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

(14)QUALITY

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Quality
Neutral Satisfied Very satisfied Dissatisfied Satisfied

23.75%

47.5%

12.5%

7.5% 8.75%

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

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(15)ADVERTISING

Advertising
Dissatisfied Neutral Satisfied

17.5%

56.25% 26.25%

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

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(16)PROMOTIONAL SCHEMES

Promotional Schemes
Satisfied Very satisfied Dissatisfied Neutral

21.25%

7.5%

63.75% 7.5%

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

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9.CONCLUSION
The findings of the empirical study indicate that unless the brand to be promoted is in the consideration set of the consumer, sales promotion by itself is unlikely to have any major impact. Clearly this shows that managers need to invest into brand building exercise so that his/her brand appears in the consideration set of the target consumers. Only after this should he spend time, money and energy on sales promotion activities. Sales promotion should not be used in isolation but need to be integrated with other tools and in line with the overall positioning of the brand. Also the importance of the role of mass media came out clearly in both the studies. Companies need to create sufficient awareness about sales promotion schemes through mass media in order to create awareness The role of retailer in influencing consumer in brand choice decision in a toilet soap category was found to be insignificant which also supports the above observations. Toilet soaps are low involvement products characterised by switching behaviour. Also the person going to the shop for the purchase of soap is the final decision maker of the brand. Hence it is essential that companies need to design mattractive, striking, visible POPs for scheme announcements. With respect to nature of scheme, the finding suggested that premium (free gift) was popular with companies. While both retailers and consumers preferred price offs. So it is necessary that the perceived value of a free gift has to be appealing and high for the target consumers. Repetitive use of the same premium (soap dish) for a prolonged period may have negative effect on the loyal customers. When the company is giving its own product free as premium, it needs to ensure the quality of the product from it as it is likely to jeopardize the image of both its products. The findings exhibited that both the retailers and consumers perceived that sales promotion activities carried out by the companies for increasing sales in short term and clearing excess stocks. What it implies is that companies need to use sales promotion synergistically and

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

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10.RECOMMENDATIONS
(1) They should provide more promotions like price-offs and samples. (2)Retentive strategy required as the soap segment is in the mature stage of its product life cycle (3) Line extension probably with more variants catering to the beauty segment like natural, herbal soap etc. (4) Liquid body wash is currently in the growth stage Lux should come out with more variants in this segment (5) Level of servicing is low during sales promotion schemes this could be brought up.

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

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REFERENCES
1. Kotler Phillip, Marketing Management : Analysis, Planning, Implementation and Control, 9 ed., Prentice Hall of India, 1997.
th

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

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APPENDIX
1. Questionnaires Used

RETAILERS QUESTIONNAIRE
Name :.. Shops Name :. Address: Contact No.:.

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..

(1)What are the sales promotion schemes offered on Lux ? (a)Price off (b)Discount coupons (c) Product bundling (d)Contests (e)Scratch card (f)Cross promotion (g)Cash refund (h)Prizes (i)Free trial (j)Any other (2)What is the normal duration of the sale promotion scheme offered by Lux? (a)Less than 15 days (b)15 days 1 month (c)1 month- 3 months (d)More than 3 months

(3)How often sales promotion schemes are offered on Lux? (a)Less than 3 months (b)3 months 6 months (c)6 months 1 year (d)More than 1 year (4) Affect on sales of Lux due to sales promotion schemes offered ? (a) Increase in sales (b) Decrease in sales (c ) No affect (d) Cant say

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(5)How is the sales promotion scheme communicated to you? (a) Through wholesalers (b) Through sales representatives (c) Through print media (d) Through electronic media (e) Through Manufacturer (6) Level of servicing during sales promotion? (a) Very Prompt (b) Prompt (b) Moderate (c) Slow (d) Very slow

(7) Comparison of sales promotion scheme offered on Lux with competitors? (a)Superior and more frequent (b)Superior and less frequent (c)Similar and more frequent (d)Similar and less frequent (e)Inferior and more frequent (f) Inferior and less frequent (8) Perception of which age group gets most affected due to sales promotion schemes offered? (a) 8-15 yrs (b) 16-25 yrs (c) 26-45 yrs (d) 46 -60 yrs (e) 60 and above (9) What are the problems faced during and after the sales promotion schemes? (a) Handling problem (b) Stock out (c) Improper information

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(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 : .......................................... Sex:............... Age:.................................

Address: ............................................. Contact No:................................................... ............................................................ ............................................................ (1)Which brand of bathing soap do you use ?............................................................................................

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(2) Is the same brand of soap used by your other family members? If not , which brand of bathing soap do they use?...................................................................................... (3) How would you rank following criterion for selecting a bathing soap ? (a) Color of soap (b) Fragrance of soap (c) Brand value (d) Price (e) Benefits (f) Packaging (g) Word of mouth (h) Advertisement (i) Promotional schemes

(4) What comes in to your mind when you think about Lux ? (a) Soap of filmstars (b) Beauty soap (c) Nothing specific (5) Can you recall any current advertisement of Lux ? (a)Yes. (b) No. (6) Which is the most effective medium for promoting the product? (a) (b) (c) (d) (e) Advertising Sales promotion Public relation & Publicity Personal selling Internet

(7) Out of total 100 points, allot the points according to your preference on the following promotional schemes? (a) Price off (b) Discount coupons (c) Contests (d) Scratch card

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(e) Cross promotion (f) Cash refund (g) Prizes (h) Free trial (8) Do you perceive any change in quality of Lux during the sales promotion scheme? (a) (b) (c) Superior Inferior No change

(9) What type of impact does the sales promotion scheme on Lux creates on you? (a)Makes you switch to Lux (b)Buy it during sales promotion offer (c)Continue buying even after sales promotion offer is scrapped (d) No change in buying behavior

(10)How is the sales promotion scheme communicated to you? (f) Through sales representatives (g) Through print media (h) Through electronic media (i) Through companys stall (11)What are the problems faced during and after the sales promotion schemes? (e) Stock out (f) Improper information (g) Gifts not received (h) Coupons not encashed (i) Any other

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(12) Comparison of sales promotion scheme offered on Lux with competitors? (a)Superior and more frequent (b)Superior and less frequent (c)Similar and more frequent (d)Similar and less frequent (e)Inferior and more frequent (f) Inferior and less frequent (13) In your family which age group gets most affected due to sales promotion schemes offered? (f) Kids (g) Youngsters (h) Adults (i) Older people

(14) How do you rate Lux on following parameters? Very satisfied dissatisfied Satisfied Neutral Dissatisfied Very

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

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APPENDIX -2

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