Professional Documents
Culture Documents
ACKNOWLEGEMENT
It gives me immense pleasure & satisfaction to State my project programmer has been a success While working with LUX. Firstly I express my sincere gratitude to my Esteemed& reverend Mr. SAURABH SIR, Miss. ANURADHA MAM without his support we are not able to complete our report. In LUX now up & under his able guidance this project was
completed successfully & my Certain thanks to Mr.Saurabh Sir (center head) under whom I Completed my training &who helped me in each aspects of
training program & it was the asset which proved throughout the training programme without there cooperation this training would not have been completed. I express my thanks towards Miss. Anuradha mam & whole Working staff of LUX who extentend their support and gave their precious time in all the divisions of dairy to make my training fruitfully. Lastly but not the least I cant denied the help of my parents, friends & of course the teachers of my college (PUNJAB TECHNICAL UNIVERSITY) up is always treasureable.
I am heartily thankful to all of them without whom this report would have not been successful.
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
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.
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.
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
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
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.
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
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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
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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
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
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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
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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 16
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.
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GODREJ
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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.
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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. 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.
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.
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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.
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
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Santoor Chandan A premium soap manufactured with extracts of Sandalwood oil, Santoor Chandan has a strong lingering fragrance and is a favourite of discerning customers.
Milk & Roses soap The nourishment of milk and the softness of roses - Milk&Roses gives you glowing skin that puts even jewellery to shame! 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
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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.
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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.
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Product Line
Soaps:
Lux
Lux
Lux Lux
Lux 28
Lux
Lux
Lux
Lux
Bodywashes:
Shampoos:
Lux Jasmine
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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 changing times it has also launched Lux Body Wash which offers superior bathing benefits.
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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.
priced at Rs. 5
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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
Advertising:
1) Transit 2) Electronic Media 3) Print Media 4) Direct
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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.
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KARISHMA KAPOOR IN A LUX PRINT ADVERTISEMENT: INSET LUX PRINT ADVERTISEMENT FEATURING BABITA
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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 40
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
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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
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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.
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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. 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
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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
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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 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 47
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:
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Online Contests
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. 49
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 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
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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
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(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. 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.
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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). 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 56
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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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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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)
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 across all segments (15% of the soap would market volume) to resources and assets of HLL OPPORTUNITIES 1.Soap industry growing by 4% in India 2.Beauty segments captured by Lux (sales THREATS increase the competition having mass appeal/market presence 1.New entrants/local competitors/MNCs / (Camay, P&G) 2.High internal competition Pears from HLL stable) 3.Excessive dependence on beauty segment makes Lux vulnerable to changing customer tastes change makes the
9.Unique advantage of having access also catering the beauty segment (also
Compounded 4.Technological
Annual Growth Rate (CAGR) is very existing products obsolete Lux should high. An indication of this is that Fair focus on technological innovations like and Lovelys segment is increasing at a Body Wash fast rate - Lux must reinforce its
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Mysore Sandal
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
Schemes_
Cash refund Cross promotion Price off Prizes
5.0% 10.0%
Product bundling
30.0%
40.0% 15.0%
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Duration
1 month- 3 months 15 days 1 month More than 3 months
25.0%
60.0%
15.0%
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20.0%
5.0%
75.0%
The primary analysis found that Less than 3 months is the general perceived frequency for sales promotion schemes offered on Lux (75% of the retailers agreed on this). 3 months 6 months was the next best with 20% of the retailers in favour of the same.
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.
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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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Comparision_with_competitors
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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Affect_on_perception_on_age_group
30.0%
55.0%
15.0%
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Problems_faced
Handling problem Stock out Improper information
10.0%
45.0%
45.0%
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25.0%
55.0%
10.0%
The primary analysis found that Cash discount is the best incentive provided during sales promotion scheme offered on Lux (55% of the retailers agreed on that). Prizes was the next best with 25% of the retailers in favour of the same.
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Best_schemes
Cash refund Price off Product bundling Scratch card
10.0% 15.0%
20.0%
55.0%
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CONSUMERS ANALYSIS
Fragrance of soap
7.5%
10.0%
12.5%
28.75%
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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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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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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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13.75%
42.5%
15.0%
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.
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93.75%
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(7)TYPE OF IMPACT
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%
38.75%
21.25%
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(8)COMMUNICATION OF SCHEME
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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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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.
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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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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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(14)QUALITY
90
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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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 92
(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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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
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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. (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.:.
..
(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
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(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 (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
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(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 (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
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CUSTOMER'S QUESTIONNAIRE
Name : .......................................... Sex:............... Age:.................................
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 (c) Brand value (d) Price (e) Benefits (f) Packaging (g) Word of mouth (h) Advertisement (i) Promotional schemes
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(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 (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
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(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 (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
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(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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BIBLIOGRAPHY
MAZINES: BUSINESS WORLD. 100 TOP BRANDS. THE VALUABLE BRANDS OF INDIA.
WEB SITES:
www.luxindia.com www.luxsoaps.com
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