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SAGAR. C. SWARGAM
UNDER THE GUIDANCE OF
PROF. HARISHANKAR BARARI
A PROJECT SUBMITTED IN PART COMPLETION OF
PGDM TO THE
Chetana’s Institute of Management &
Research Bandra (East), Mumbai 400 051.
APRIL 2011
1
DECLARATION
This is to declare that the study presented by me to Chetana’s Institute of Management and Research, in part completion of the PGDM under the title “A brief study on marketing strategies adopted by Lux soap in the indian market” has been done under the guidance of Prof. Harishankar Barari.
Signature of the Student Sagar Swargam
2
CERTIFICATE
This is to certify that the study presented by (Mr. SAGAR SWARGAM) to
the Chetana’s Institute of Management and Research, in part completion of
the PGDM (MARKETING) under the title “A brief study on marketing
strategies adopted by Lux soap in the Indian market” has been done under
the guidance of (Prof. Harishankar Barari).
The project is in the nature of original work that has not so far been
submitted for any program of Chetana’s Institute of Management &
Research or any other University / Institute. References of work and related
sources of information have been given at the end of the project.
(Project Guide) (Director)
Prof. Harishankar Barari Dr. M.V. Deshpande
3
ACKNOWLEDGEMENT
An effort to do a research is successful not only because of the student who does it but also to a large extend because of the guidance. I would like to thank all the esteemed faculties who have taught and shared their experience with us.To start with, first of all I wish to put to record the heartfelt gratitude and immense respect to Prof. Harishankar Barari. I wish to thank him for the valuable time he gave us and the immense patience he had, in answering even the seemingly trivial queries we had to ask. I extend my gratitude to all other staff members and friends who have helped me directly and indirectly and also for the invaluable insights he gave us on branding and marketing. His vast experience and knowledge has been able to inspire me successfully towards the completion of the project.I would also like to appreciate my college for giving me the opportunity to make a project on such an informative topic, which added a lot to my knowledge.
On a personal note, I would like to thank my parents for their constant support and encouragement, because this day wouldn’t have been possible without them.
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TABLE OF CONTENTS
Executive Summary
1. Objectives of the Study
2. Scope of the Study
3. Limitations of the Study
4. Methodology
5. Abstract
6. Company Background
7. Four P’s
SWOT Analysis
Perceptual Mapping
8. Data Analysis
9. Conclusions
10.Recommendations
References
Appendix
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1. OBJECTIVES OF STUDY
The main objectives of the study are:
To find the past growth rate and demand analysis. Market structure analysis, swot analysis, competitors analysis and
performance evaluation.
2. SCOPE OF THE STUDY
The geographical scope of the study was restricted to the due to time and
resource constraints. The study being exploratory in nature, the sample size was
restricted to 90 people. Focus being mainly on in-depth probing, the
generalizations drawn are only indicative and not conclusive.
3. 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.
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4. 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.
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5. 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.
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6. 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.
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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) The widespread use of sales promotions in toilet soap category
ii) Historically, whenever there was a downward trend in growth, sales
promotion activities took the front seat of promotional mix
iii.) 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.
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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.
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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 Price/weight
Premium > Rs. 15 / 75 gms
Popular Rs. 8-15/75 gms
Economy < Rs. 8 /75 gms
13
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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7. FOUR P’s OF LUX
Market
The personal wash market is valued at Rs. 45 billion (Source: ORG-MARG). It is
a highly penetrated market though per capita consumption lags even South
Asian countries like Indonesia. The market has seen stagnant sales over the last
four years and the low entry barriers have led to intense competition between
national and local brands.
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 P’s
(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
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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 LUX Beauty
Wash 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 Oil and Honey
Glow
Bodywashes:
International International
International
Lux Bodywash Lux Bodywash Lux
Bodywash
White Spa Rich Moisture Fresh
Moisture
Shampoos:
Lux Super Lux
Rich 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
21
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
23
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. HLL’s structured innovation
programme was the driving force. This programme, which charts the route for
every HLL brand’s progress, works eight to 12 quarters ahead of the company’s
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 sub-
popular 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.”
25
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 mood-
enhancing 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 soap’s performance in its top markets north and west which contribute
to over two-thirds of its sales, will be crucial to its future growth.
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
Lux’s black colour packaging.
26
(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
27
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
LEELA CHITNIS IN THE FIRST LUX PRINT ADVERSTISEMENT FEATURING
AN INDIAN ACTRESS
28
MADHUBALA IN A LUX PRINT ADVERTISEMENT
WAHEEDA REHMAN IN A LUX PRINT ADVERTISEMENT
VYAJANTIMALA IN A LUX PRINT ADVERTISEMENT
29
SAIRA BANO IN A LUX PRINT ADVERTISEMENT
30
KARISHMA KAPOOR IN A LUX PRINT ADVERTISEMENT: INSET LUX PRINT
ADVERTISEMENT FEATURING BABITA
AISHWARYA RAI IN A PRINT ADVERTISEMENT FEATURING LUX
INTERNATIONAL
31
KAREENA KAPOOR SHOWCASING THE LATEST CHOCOLATE VARIANT
BY LUX
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.
32
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 it’s good
enough for a film star, it’s 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.
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 protagonist’s 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. It’s 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.
33
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.
34
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.
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
country‘s biggest advertiser in 2004. The FMCG giant topped the list of India‘s
leading advertisers with a combined TV and press ad spend of Rs.517 crore last
year. In fact HLL upped its spend by 30.5% in ‘04 to Rs.396 crore in ‘03.
Sales Promotion
35
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.
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
36
Trade Shows and Conventions
Contests for Sales Reps
Specialty Advertising
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
37
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.
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.
38
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
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 pièce de résistance 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 year’s 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 year’s supply of Lux free, courtesy the beauty stars.
39
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
Public Relations:
40
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 company’s ability
to achieve its objectives. PR involves a variety of programs designed to promote
or protect a company’s 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.
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
41
stars have endorsed Lux in the past. The event was held at the grand
Intercontinental in Mumbai on Friday afternoon.
(C)Price
"Price" is pretty self-explanatory but it‘s very important to success. Price
42
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 they‘ll 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
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
43
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
HLL’s 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 HLL’s 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.
8.DATA ANALYSIS
44
RETAILER’S ANALYSIS
(1)SALES PROMOTION SCHEMES OFFERED ON LUX
30.0%
15.0%
40.0%
10.0%
5.0% Product bundling
Prizes
Price off
Cross promotion
Cash refundSchemes_
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.
(2)NORMAL DURATION OF SALES PROMOTION SCHEMES
45
25.0%
15.0%
60.0%
More than 3 months
15 days – 1 month
1 month- 3 monthsDuration
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.
(3)HOW OFTEN SALES PROMOTION SCHEMES ARE OFFERED ON LUX
46
75.0%
5.0%
20.0%
Less than 3 months
6 months – 1 year
3 months – 6 monthsFrequency
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
47
10.0%
75.0%
15.0%
No affect
Increase in sales
Can’t sayAffect_on_Sales
The primary analysis found that sales promotion schemes offered on Lux caused 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
48
25.0%
20.0%40.0%
15.0%
Through salesrepresentatives
Through electronicmedia
Through wholesalers
Through print mediaCommunication
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
49
(6)LEVEL OF SERVICING DURING SALES PROMOTION - COMPARISION WITH COMPETITORS
45.0%
10.0%
35.0%
10.0%Superior and morefrequent
Superior and lessfrequent
Similar and morefrequent
Inferior and morefrequent
Comparision_with_competitors
The primary analysis found that the level of servicing during sales promotion vis-à-vis
competitors was “Superior and more frequent (45% of the retailers agreed on that).
“Similar and more frequent” was the next best with 35% of the retailers in favour of
the same.
(7)AFFECT OF SALES PROMOTION SCHEMES ON DIFFERENT AGE GROUP
50
30.0%
15.0%
55.0%
16-25
46 -60
26-45Affect_on_perception_on_age_group
The primary analysis found that “26-45 age group” were the most affected by sales promotion (55% of the retailers agreed on that). “16-25 age group” was the next best with 30% of the retailers in favour of the same
(8)PROBLEMS FACED DURING & AFTER SALES PROMOTION SCHEMES
51
10.0%
45.0%
45.0%
Improper information
Stock out
Handling problemProblems_faced
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)
CONSUMER’S ANALYSIS
52
(1)MOST PREFFERED CRITERION FOR SOAP SELECTION
Word of mouth
Packaging
Color of soap
Benefits
Promotional schemes
Price
Fragrance of soap
Brand value
Advertisement
Most prefferedcriterion
2.5%6.25%
3.75%
13.75%
12.5%
28.75%
10.0%
15.0%
7.5%
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.
(2)PERCEPTION ABOUT LUX
53
15.0%
23.75%
11.25%
50.0%
Soap of filmstars
Soap for all
Nothing specific
Beauty soapPerception about Lux
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
(3)RECOLLECTION OF ANY ADVERTISEMENT OF LUX
54
91.25%
8.75%
Yes.
No
Recall of currentadvertisement
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
(4)MOST EFFECTIVE MEDIUM OF SALES PROMOTION
55
31.25%
58.75%
10.0%
Sales promotion
Advertising
Personal selling
Most effective mediumfor promotion
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.
(5)PREFERENCE OF PROMTIONAL SCHEME
56
12.5%
42.5%
15.0%
13.75%
6.25%
3.75%
6.25%
Prizes
Price off
Cross promotion
Cash refund
Scratch card
Free trial
Discount coupons
Preference ofpromotional schemes
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
57
93.75%
6.25%
No change
Superior
Perception aboutchange in quality
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
58
13.75%
38.75%
21.25%
26.25%
Makes you switch toLux
Continue buying evenafter sales promotionoffer is scrapped
Buy it during salespromotion offer
No change in buyingbehavior
Type of impact
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.
(8)COMMUNICATION OF SCHEME
59
3.75%
26.25%
58.75%
11.25%
Through salesrepresentatives
Through print media
Through electronicmedia
Through company’sstall
Communication ofschemes
The primary analysis found that the communication of schemes should be “Through electronic media” (58.75% of the consumers agreed on that). “Through print media” was the next best with 26.25% of the consumers in favour of the same
(9)DISTRIBUTION NETWORK
60
47.5%
5.0%
26.25%
21.25%
Satisfied
Dissatisfied
Very satisfied
NeutralDistribution Network
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
(10)QUALITY
61
47.5%
8.75%
7.5%
12.5%
23.75%
Satisfied
Dissatisfied
Very satisfied
Satisfied
NeutralQuality
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.
(11)ADVERTISING
62
56.25%
26.25%
17.5%
Satisfied
Neutral
DissatisfiedAdvertising
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
(12)PROMOTIONAL SCHEMES
63
21.25%
7.5%
7.5%
63.75%
Neutral
Dissatisfied
Very satisfied
SatisfiedPromotional Schemes
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.
9.CONCLUSION
64
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 communicate so that they provide value to the target audience and
enhance brand quality/image perceptions.
65
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.
10.RECOMMENDATIONS
66
(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.
(6) It is having only 19.8 % rural market presentation which could be further enhanced .
REFERENCES
67
1. Kotler Phillip, “Marketing Management : Analysis, Planning, Implementation and
Control,” 9th ed., Prentice Hall of India, 1997.
2. Strang Roger, “Sales Promotion fast growth faculty management,” Harvard Business
Review, 1976.
3. www.indiainfoline.com
4. www.hll.com
APPENDIX
68
1. Questionnaires Used
RETAILER’S QUESTIONNAIRE
Name :………………………….. Shop’s Name :………………………………….
Address: ………………………… Contact No.:………………………………….
……………………………………
……………………………………..
(1)What are the sales promotion schemes offered on Lux ?
(a)Price off(b)Discount coupons(c) Product bundling(d)Contests(e)Scratch card(f)Cross promotion(g)Cash refund(h)Prizes(i)Free trial(j)Any other
(2)What is the normal duration of the sale promotion scheme offered by Lux?
(a)Less than 15 days(b)15 days – 1 month
69
(c)1 month- 3 months(d)More than 3 months
(3)How often sales promotion schemes are offered on Lux?
(a)Less than 3 months(b)3 months – 6 months(c)6 months – 1 year(d)More than 1 year
(4) Affect on sales of Lux due to sales promotion schemes offered ?
(a) Increase in sales(b) Decrease in sales(c ) No affect(d) Can’t say
(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
70
(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
CUSTOMER'S QUESTIONNAIRE
Name : .......................................... Age:.................................Sex:...............
Address: ............................................. Contact No:...................................................
............................................................
............................................................
(1)Which brand of bathing soap do you use ?............................................................................................
(2) Is the same brand of soap used by your other family members? If not , which brand of bathing soap do they use?......................................................................................
(3) How would you rank following criterion for selecting a bathing soap ?
(a) Color of soap(b) Fragrance of soap
71
(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) Advertising(a) Sales promotion(a) Public relation & Publicity(a) Personal selling(a) 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(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) Superior
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(b) Inferior(c) No change
(9) What type of impact does the sales promotion scheme on Lux creates on you?
(a)Makes you switch to Lux (b)Buy it during sales promotion offer (c)Continue buying even after sales promotion offer is scrapped (d) No change in buying behavior
(10)How is the sales promotion scheme communicated to you?
(f) Through sales representatives(g) Through print media(h) Through electronic media(i) Through company’s stall
(11) How do you rate Lux on following parameters?
Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied
(a) Price(b) Distribution Network(c) Quality(d) Advertising(e) Promotional Schemes
APPENDIX -2
73
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