Impact Of Celebrity Endorsement Toward Lux Soap 6x2z

A COMPREHENSIVE PROJECT REPORT ON “The Impact of celebrity endorsement Toward the Lux soap” Submitted to SAL Institute of Management IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ISTRATION

In

Gujarat Technological University UNDER THE GUIDANCE OF

Faculty Guide Dr. Prof. Ritika Jain

SAL Institute of Management Ahmedabad.

Submitted by HARSH PATEL

and

SAHIL

SHAH EN. no-

En. No – 118070592067 118070592033

1

SAL INSTITUTE OF MANAGEMENT (GUJARAT TECHNOLOGICAL UNIVERSITY)

Institute’s Certificate

Certified that this Comprehensive Project Report Titled “The Impact of

celebrity endorsement Toward the Lux soap” is the bonafide work of Mr. HARSH PATEL (118070592067) & Mr. SAHIL SHAH (118070592033) ,Who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Dr. Ritika Jain Asst. Professor, SAL Institute of Management

Dr. Viral Bhatt Principal / Director, SAL Institute of Management

Sign : __________________

Sign : __________________

2

SAL INSTITUTE OF MANAGEMENT

DECLARATION Harsh Patel and Sahil Shah hereby declare that the project report on “The Impact of celebrity endorsement Toward the Lux soap” is

written

and

submitted

by

me

to

SAL

INTITUTE

OF

MANAGEMENT toward the fulfillment for the study of MBA. This Project is based on my knowledge and database gained from company. The report written is original work of us. The contents provided are true to best of my knowledge and belief.

All the detail and analysis provide in the report hold to the best of our knowledge.

Signature of the students

[Harsh Patel]

[Sahil Shah]

En No:-118070592067

En. No: - 118070592033

3

Place: Ahmedabad Date:

PREFACE Master of business istration is a course, which combines both theories and its applications as its contents of study in the field of management. As Part and parcel of this course, every aspirant has to undergo as “Market Analyst”. The purpose of this study Project is to expose the student of management sciences with real life situations existing in the organization and to provide an insight in to the various functions who can visualize things what they have been taught in classrooms. Actually it is the life force of management. For the successful study of effectiveness of ment it is very import to choose such industry which can give us necessary information and guidance in the right direction. Therefore, we selected FMCG sector, one of the most prominent sectors in India and world. This research includes the study of consumer behavioral patterns.

4

ACKNOWLEDGEMENT We asseverate my deep sense of gratitude toward: First and Foremost we are Very Proud to be a student of SAL institute of management and are most grateful for having been the opportunity to do research study. Through this acknowledgement, we express our sincere gratitude towards all those people who have helped us in the preparation of this project which has been a learning experience. It is our pleasure to extent our deep gratitude to “Prof. (Dr) Viral Bhatt” Principle of SAL institute of management, for the help, cooperation and guidance

received

from

him

throughout

the

tenure

of

this

“COMPREHENSIVE PROJECT REPORT”.

We would like to take this opportunity to thank “Dr. Prof. Ritka Jain” faculty member of SAL institute of management for the Project guide for recommending us the necessary information for the report.

At last we are also thankful to friends who had given us their constructive Advice, Education suggestions, Encouragement and Co-operation to prepare this report

5

Table of Content

6

Ch. No. 1.

PARTICULARS

INDUSTRY PROFILE

PAGE No. 2

About The Soap Industry

3

 1.2

Future of the soap Industry

6

 1.3

About the Business

6

 1.4

Market Scenario

7

COMPANY PROFILE

10

2.1

Introduction

11

2.2

Latest Innovation by HUL

12

2.3

Sunny Days are here Again

13

2.4

Cool Cart

13

2.5

Brands of HUL

13

2.6

Marketing

15

3

HISTORY OF LUX SOAP

16

4

LITERATURE REVIEW

21

5

RESEARCH OBJECTIVE

25

5.1

Need for Study

25

5.2

Primary Objective

26

5.3

Secondary Objective

26

5.4

Types of data analysis used

26

5.5

Sample design

27

5.6

Derivation of sample size

27

5.7

Research Design

28

1.1

2

7

6

5.8

Data Collection

28

5.9

Research Summary

30

MARKET MIX OF LUX SOAP

32

6.1

Product Category

33

6.2

Market Segmentation

33

6.3

Target Market

34

6.4

Product Positioning

34

7

STUDY OF LUX WITH RESPECT TO 4 P`S

36

8

PRODUCT LIFE CYCLE OF LUX SOAP

40

9

INTRIGRATE MARKETING COMMNUCATION

46

9.1

Promotion

47

9.2

Sales Promotion

47

9.3

Prominent Sales Promotion Schemes Used By LUX

48

9.4

Public Relations

49

9.5

LUX PR Activities

49

9.6

Limited edition

50

9.7

Logo

50

9.8

Labeling

50

9.9

Packaging

51

9.10

Point of Purchases

51

9.11

ment

52

9.12

Public Relations

54

10

SWOT ANALUSIS OF LUX SOAP

56

11

POTER`S 5 FORCE OF LUX SOAP

61

8

12

DATA ANALYSIS

65

13

SUGESSION

84

14

CONCLUSION

86

15

ANNEXURE

90

16

BIBLIOGRAPHY

93

LIST OF TABLES

Table No 01 02 03

Name of the Table INDIAN SOAP INDUSTRY MARKET SHARE SEGMENTATION OF SOAPS

Page No 04 06 09

04 06-18

BRANDS OF THE HUL DATA ANALYSIS

14 66-84

LIST OF GRAPH

Graph No 01 02-14

Name of the Graph MARKET SHARE DATA ANALYSIS

Page No 07 66-84

9

“A study on the Impact of celebrity endorsement On buying behavior Of Consumers towards Lux soap.”

10

Chapter -1

INDUSTRY PROFILE

11

1.1) ABOUT THE SOAP INDUSTRY: History of soap dates way back from 2350 years. Soap manufacturing was started in North America. Early in the history of Europe colonies and of the republic. Some American companies with currently well known names were started 50 to 200 years ago. During middle ages, soap was made at various places in Italy, , Spain, England and possible other countries.

Mankind knew about soap nearly 200 years back 70 A.D. when Mr.Pllny and Mr. elder evidentially discovered the soap when roasted meat over flowed on the flow in ashes. This lump like product was soap and had foaming and cleansing character. Since then 1192 A.D. that in the first time detergent was taken in London. It is in 1931 A.D. that in the first time detergent was discovered by Mr.Grency with the sulphated olive oil and almond oil. The wood consumption of soap in 1884 A.D. was said to be lakhs/ton per annum and it was in this year Mr.W.H.L. ever entered the field of the soap making in a big way.

12

INDIAN SOAP INDUSTRY

Size of the Industry

The Indian Soap Industry includes about 700 companies with combined annual revenue of about $17 billion.

Geographical distribution

All the major metropolitan cities

Output per annum

Indian per capita consumption of soap is at 460 gms per annum

Market capitalization

70% of India's population resides in the rural areas and around 50% of the soaps are sold in the rural markets. Table : 1

During the British rule the Lever Brothers, England introduced modern soaps by importing and marketing them in the country. The first company created was North West Soap Company, the soap manufacturing plant in India situated in the city of Meerut, in the state of Uttar Pradesh. In 1897, they started marketing cold process soaps. In 1918, Mr. Jamshedji Tata set up India's first indigenous soap manufacturing unit when he purchased the Coconut Oil Mills at Cochin Kerala. OK Mills crushed and marketed coconut oil for cooking and manufactured crude cold process laundry soaps that were sold locally and It was renamed The Tata Oil Mills Company and its first branded soaps appeared on the market in the early 1930's.

13

Brief Introduction Soaps are categorized into men's soaps, ladies' soaps and common soaps. There are few specialty soaps like the Glycerine soaps, sandal soaps, specially flavored soaps, medicated soaps and baby soaps. Specialty soaps are high valued which enjoy only a small share of the market in value . The market is growing at 7% a year. This means that the incremental demand generation is 5% over and above the population growth. With increasing awareness of hygienic standards, the market for the Soaps could grow at a rate higher than 8% annually. Interestingly, 60% of the market is now sourced from the rural sector. This means that the variance between the two segments is not very large. Since upperend market focus is the urban areas, margins come from the urban sector.

14

1.2) FUTURE OF SOAP INDUSTRY: The growth prospects seems to be enormous considering the fact that the per capita income consumption in India is as low at 0.30kg over the year we have M/S HUL, M/S TAMCO,LUX etc., leading the industry in the field of soap manufacture, growth of population, income

1.3) ABOUT THE BUSINESS:

Major players & market shares: Hindustan Unilever ltd., (HUL) is the leader for the toilet soap industry in India with a 60% share in the market. Other major players from LUX is facing competition are Godrej soaps, Wipro, Procter & Gamble, Colgate Palmolive, Johnson & Johnson etc.,

Their market shares is as follows MARKET SHARES

Companies HUL TATA OIL MILLS ITC GODREJ SOAPS NIRMA OTHERS

60 13 07 05 08 07 Table : 2

15

MARKET SHARES 5

8

HUL

7

TATA OIL MILLS

7 60

13

ITC GODREJ SOAPS NIRMA OTHERS

Graph : 1

1.4) MARKET SCENARIO

Of the nearly 7 lakhs tons toilet soap, market for 500 tons comes from the segment, 3 lakhs tons won carbolic segment and the rest are from the batting or popular segment. There are 40 brands in the total toilet soap market. In the popular segment Liril, Cinthol, Palmolive, Lux international have been well established in the market. In the popular segment lux, rexona, hamam, santore have a strong presence while among the carbolic soap lifebuoy, Ok, nirma have proved their worth.

The important point is that the price of the soap between the various brands generally varies between 50 paise and rupee. The soap industry does not face serious problems to the raw materials front.

Consumption, expenditure increased in urban cities spread of education, growing degree of personal hygiene etc., has increased by the spread of audio-visual media, rising incomes and general consciousness about the health.

16

Soap is a product for many people and the lathering up can be a treasured part of a morning or nightly routine. Whether it might be scented or unscented, in bars, gels, and liquids, soap is a part of our daily lives. In the United States, soap is a $1.390 million (US$) industry with over 50 mass market brands. But in Indian markets the sales potential for soap is only beginning to be realized. At the end of the 0year 2000, soap was a $1.032 million (US$) business in India.

17

SEGMENTATION OF SOAPS The Following table lists the key brands of the main companies. COMPANY

BRAND

SEGMENTATION

Godrej soaps

Cinthol



Godrej no 1

Popular

Marvel

Popular

Lux(international)



Dove



Face washes, Shower gel



Liril,pears,



Jai,breeze

Popular

Lifebuoy(plus, gold,family,liquid)

Carbolic

P&G

Camay



WIPRO

Santoor,baby soap



Wipro shikakai

Popular

My sore sandal soap



My sore sandal gold



HENKET-SPIC

Margo

Popular

COLGATEPALMOLIVE

Palmolive natural



Reckitt Benckiser

Dettol

Carbolic

HUL

KS&DL

Table : 3

18

Chapter - 2

COMPANY PROFILE

19

2.1) Introduction:Hindustan unilever limited is the Indian established of the world‘s most famous multinational company namely unilever limited. This is a very pros porous company is the FMCG segment i.e., the fast moving consumer goods. The company has very much well established R&D s and a good marketing practices and network.

The main purpose of Hindustan unilever limited is to meet the everyday

needs

of

people

everywhere-to

anticipate

the

aspirations of our consumer and customer and to responds creatively and competitively with branded products and services which raise the quality of life. H.U.L‘s deep roots in local culture and markets around the worlds are its unparallel inheritance and the foundation for our future growth. H.U.L will brings its wealth‘s of knowledge and international expertise to the service of local customer – a truly multi-local multinational. H.U.L‘s long term success requires a total commitment to exceptional standards of performs and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously. H.U.L believes that to succeed requires the highest standards of corporate behavior towards its employees, the consumers, the

20

societies and world in which we live. This is Hindustan unilever limited‘s road sustainable, profitable growth for our business and long term value creation for our share holders and employees. To realize this commitment which H.U.L has from the consumers, employees, the society and the environment, it has set for itself certain sacrosanct policies and principles. These policies and practices, has earned H.U.L the goodwill and trust of people across the country. It is certainly H.U.L‘s brands and its people, but also its systems. H.U.L‘s research centre is the largest private sector industrial research laboratory of its kind in India. H.U.L‘s enviable reach in the remote heartland make its kind in India. H.U.L understands the importance of savings for the future generation, the simple pleasures that our planet has continuously offered. Necessary measures that H.U.L has enforced in its factories for environment protection and pollution control, H.U.L has also taken up projects on energy conservation, watershed management, tree plantation and soil conservation.

2.2) LATEST INNOVATIONS BY H.U.L These are some of the words that are often heard. In fact, the scientists at H.U.L‘s research centre are the brains behind the 41 new products launched on an average every year. The following are some of the latest innovations.

21

2.3) SUNNY DAYS ARE HERE AGAIN:

Now you can go out in the blazing sun without worrying about losing your complexion. All you have to do is use H.U.L‘s dove soap every day. This new, patented technology called the ‗sun screen formula‘ contain a combination of sunscreen ‗actives‘, which are deposited on the skin as a protective layer, even as the soap washes away dirt and grime. This unique formula is the climax of long search for a product that‘s easy to apply, safe to use, affordable and provides optimal protection from UV rays.

2.4) COOL CART

One of the most fascinating from the research centre has been the world‘s first totally safe, non-corrosive, eutectic coolant that keeps ice cream at – 18 degree centigrade even under the most aggressive climatic condition.

2.5) BRANDS OF H.U.L Hindustan unilever limited is India‘s largest packed mass consumption goods company. H.U.L is the leader in home and personal products and food and beverages. It seeks to ―meet everyday needs to people everywhere – to anticipate the aspirations of our consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life. It is this purpose which inspires H.U.L to build brands. Over the past 70 years, it has introduced

22

about 110 brands, most of which have become house hold names in the country. Some of the HUL Brands are: BEVERAGES BROOKEBOND

SKINCARdE

Taj Mahal

Fair & Lovely

Red Label

Pond‘s

3 Roses

ORAL CARE

Taaza

Pepsodent

Lipton Yellow Label

Close-Up

Lipton Green Label

HAIR CARE

Lipton Ice Tea

Sunsilk

BRU Coffee

Clinic plus

DEODRANTS

FABRIC WASH

Axe

Surf

Pond‘s

Rin

Rexona

Wheel

Lakme

Dove

ANNAPURNA ATTA

Liril

Kwality walls Table : 4

23

2.6) MARKETING:-

HUL is present in home and personal care and Foods & Beverages categories. HUL and group companies have about 40,000 employees, including 1425 managers. For marketing HUL divides the country into four regions, with regional branches in Delhi, Kolkata, Chennai and Mumbai. Headed by a regional manager, they comprise regional sales manager and area sales manager, assisted by dedicated field forces, comprising sales officers and territory sales in charges. In marketing, each category has a marketing manager who heads a team of brand managers dedicated to each or a group of brands. The brand managers, wherever appropriate, focus exclusively on brand strategy or implementation.

MANUFACTURING:-

Each division has a nationwide manufacturing base, with each factory peopled by teams of production, engineering, quality assurance, commercial and personal managers.

24

Chapter - 3 HISTORY OF LUX SOAP

25

History of Lux Lux soap first produced in United Kingdom in 1899. It was produced by British company name Lever Brothers. Lever Brothers was founded in 1885 by William Hesketh Lever and his brother James. They using glycerin and vegetable oil such as palm oil to manufacture soap called ―Sunlight Soap.‖

From 1930s right through 1970s, Lux soap colors and packaging were altered several times to reflect fashion trends. In 1958 five colors were made up the range: pink, white, blue, green and yellow. In 1990s, Lux launching its own range of shower gels, liquid soaps and moisturizing bars. Lux was launched in India, in 1929. The very first Lux ment featured actor Leela Chitnis. Its popular slogan was ‗the beauty soap of film stars.‘The ‘how’ and ‘why’ behind the promotion goes a long way in brand building.

As reiterated in this project, Lux was promoted as a product used by film stars. And thus, every major actor has promoted the product.

26

The list included:  Leela Chitnis,  Madhubala,  Nargis,  Meena Kumari,  Mala Sinha,  Sharmila Tagore,  Waheeda Rehman,  Saira Banu,  Hema Malini,  Zeenat Aman,  Juhi Chawla,  Tabu,  Madhuri Dixit,  Sridevi,  Aishwarya Rai,  Kareena Kapoor,  Priyanka Chopra,  Shahrukh Khan & Katrina Kaif,  Asin  Kajal Agarwal.

Although Lux was always d as a product meant for indulging the senses, where bathing was a wonderful ritual in itself, it petered down its approach in the recent years. The actors are still shown seen indulging themselves. But the focus also moves towards the ordinary girl in a bid to reach out to its female consumers.

27

A wonderful example of this promotion was the 2005 ‗Mujhme Star Jagaaye‘ campaign featuring Aishwarya Rai and Shilpa Anand. The campaign also promoted a Model Hunt that went underway soon after. In 2004, Lux launched a ‗Lux star bano, Aish karo‘ contest where consumers were supposed to buy a promotional pack of Lux and scratch the special scratch card to earn their reward. Prizes varied from living a day in Aishwarya Rai‘s life to beauty kits, Neeta Lulla saris among a host of other gift vouchers and well… more Lux soaps to be won.

On its completion of 75 years in 2005, Lux roped in Shah Rukh Khan as its first ever male ambassador. The ment featured the actor in a bathtub, flanked by his leading ladies – Juhi Chawla, Kareena Kapoor, Sridevi and Hema Malini. It was known as the ‗Har Star Lucky Star‘ offer, where every wrapper guaranteed a gift, waiting to be unwrapped. In 2009, Aishwarya Rai and Abhishek Bachchan featured in the new ‗Sone Se Bhi Sona Lage‘ campaign. The campaign also conducted a Lux Super Star Offer where the lucky winners get to meet Aishwarya-Abhishek in London. The campaign jingle became so immensely popular that its varied renditions were used in the ments that featured Katrina Kaif since 2009. Asin Thottumkal and Kajal Agarwal are the newest brand ambassadors of Lux, modelling together for the ―Kya Khoob Ho Tum‖ ment that has been recently released.

28

Lux also relies on market research for making innovative changes by going for door-to-door sampling of a product, once a year, in urban and rural areas. The brand image is firmly and favourably embedded in the psyche of the consumers. The product is also not particularly expensive, which is said to be a ‗winning combination.‘



Top Soap Brands in India  Dettol ( A Brand of Dettol India )  Lifebuoy (A brand of Hindustan Unilever)  Lux (A brand of Hindustan Unilever)  Dove (A brand of Hindustan Unilever)  Hamam (A brand of Hindustan Unilever)  Rexona (A brand of Hindustan Unilever)  Breeze (A brand of Hindustan Unilever)  Pears (A brand of Hindustan Unilever)  Liril (A brand of Hindustan Unilever)  Vivel ( A brand of ITC)  Superia (A brand of ITC)  Medimix (From MedimixInternational)  Santoor (A brand of ITC)  Savlon (From Savlon‘s Family First Aid )  Margo (The soap was manufactured by Calcutta Chemicals and was launched in 1920)

29

Chapter -4

LITERATURE REVIEW

30

Discovering the Consumer: Market Research, Product Innovation, and the Creation of Brand Loyalty in Britain and the United States in the Interwar Years

This

paper

and consumer

discusses research

the

use of

at Lever/Unilever

market and its

advertising agency in Britain and the United States, J. Walter Thompson (JWT), in the interwar period. Research surveys conducted by JWT in the 1920s and

1930s

helped

Lever

reposition

its

international soap brand Lux.

The article also

shows

practices

predate its

often

that marketing's cultural conceptualization

and

academic theorization. The Brand: Lux Soap Flakes One of Lever‘s earliest product innovations was a production technique developed in1889, which allowed soap to be produced in forms of flakes. The resulting product, soap

flakes,

made

washing

easier

and

preserved the garments as women did not have to rub clothes with the hard soap bar. In 1900, Lever‘s product came on the market as ‗‗Lux soap flakes.‘‘

31

Moreover, the product was positioned as a problem solver (Levitt1960); if consumers were rich enough to buy expensive clothes, they also had problems which low-income groups did not have, that is, the preservation of silk or other expensive clothes. Lux helped solve these problems. In 1906, Lever began to export Lux soap flakes to the United States.

There, its advertising agency JWT suggested that the traditional positioning of Lux as a product to be used to wash woolen garments (see slogan in fig. 1:‗ ‗ L u x w o n ‘ t shrink woolens‘‘) should be widened so that consumers saw Lux as product that could be used for all fine fabrics.

Its ments often followed an aggressive m a r k e t expansion strategy for their products; by suggesting a wider framework of possible uses f o r a g i v e n p r o d u c t both the customer base and the usage rate of a p r o d u c t c o u l d b e increased (Ansoff 1957).

For its client Lever Brothers, this strategy resulted in increased sales from 10,000 cases in 1915 to over one million cases in 1918 (The history of LuxFlakes‘‘1950; Lovett 1970). This strategic marketing orientation of JWT‘s advertising is further exemplified in its decision to use ments in 1922 to promote the use of Lux for the washing of dishes.

32

In the early 1920s, the Lux advertising campaign in the American market took a crucial turn toward dialogic consumer engagement. In 1924, JWT invited American housewives to submit testimonials for Lux soap flakes. These letters, of which about 53,000 arrived at the JWT headquarters‘, were used by the agency to conduct a survey of consumer habits. It turned out that consumers had independently begun to use the flakes for the washing of their hands, for baths, for their babies, and for washing their hands and hair.

33

Chapter - 5 Research Objectives

34

5.1) Need for the study: We have undertaken this study because the We want to know the reasons to buy different brands of soaps and particularly consumer opinion about LUX Soap, the factors affecting while purchasing a FMGC

5.2) PRIMARY OBJECTIVES: “Effects of celebrity endorsement on Consumer Buying Behavior toward Lux soup‖

5.3) Secondary Objects:  To Identify the influence of celebrity endorsement on consumer buying behavior  To understand buyer behavior of Lux soap use.

35

 To

extract

consumers

opinion

regarding

various

in

ment for celebrity endorsement of Lux soup. 5.4) Types of data analysis used: In order to properly analyze the data, there would be two types of data analysis in this project. They are as follows:  Qualitative data analysis – through Findings, Analysis and explanation  Quantitative data analysis – through charts, schedules, figures, and structures

5.5) Sample Design: Sampling size = 200 Respondents (mostly targeted on women Or Girls). Sampling technique = Hypothesis Method Research Instrument : ―Questionnaire‖, ―Personally‖ Types of Questionnaire: ―structure‖ 5.6) Derivation of sample size: On the basis of the pilot survey, the percentage of customer who married in last 5 years came to 60%. To ensure 99% confidence level and a permissible error not to exceed 10%, the sample size was determined as under: p (proportion) = 0.6, n=

Z2

q = 0.4 ( 1-p )

* p*q

E2 =

(2.58)2

* 0.60 * 0.40

36

(0.1)2 =

6.6564

* 0.24

0.01 = 159.75 customers Hence, we took a sample size of 200 consumers.

5.7) Research Design The

research

design

is

descriptive.

Descriptive studies are well structured. Descriptive research is under taken in many circumstances:  When

the

researcher

is

interest

in

knowing

the

characteristics of certain groups such as age, profession  When the researcher is interested in knowing the proportion of the people in giving population who have behaved in a particular manner, making projects. We have taken descriptive because my research includes the knowing the behavior of customer toward ment effects of soft drinks products. We have analyzed how people of various age factors respond to different advertising of their perception towards soft drinks.

37

5.8) DATA COLLECTION: Actually, the reliability of research decisions depends on the quality of data gathered. By taking this concept into consideration, the data can be classified into primary data and secondary data. We have used both the types of data, as far as project is concerned. 1. Primary data 2. Secondary data 1.

Primary Data:

I. II. III. The

Questionnaire Method Direct Interview Method and Observation Method main tool use, the questionnaire method. Further direct

interview method, where a face-to-face formal interview is taking. Lastly observation method has been continuous with the questionnaire method, as one continuously observes the surrounding environment he works in.

2. Secondary Data: These are those data which are collected from the various sources which have been already created for the purpose of first time use and future use. We have used the following secondary data in my project:  Internet  Newspaper 

Magazines

Summary

38

Celebrity endorsement is the very important and basic tools for the promotion of the product and now a day it is become a trend for the product marketing and brad building. However it is easy to select a celebrity but it is very difficult to establish a strong relationship between the product and the endorser. The celebrity can make a better brand image and also helpful for profit maximization.

5.9) RESEARCH SUMMARY

“Effects of celebrity Primary Objective

endorsement on Consumer Buying Behavior toward Lux soup”

Research Design

Descriptive Research Design

Research Approach

Survey Research i.e. Direct Survey Primary data source :Questionnaire Secondary data source : Company website

Data Source

Sampling Area

Ahmedabad (western)

Sample Size

200 responders

39

Sampling method

Convenient sampling method

Research Instrument

Questionnaire

Method

Personal Interview Table : 5

Celebrity endorsements are impelled by virtue of the following motives: 

Instant Brand Awareness and Recall.



Celebrity values define, and refresh the brand image.



Celebrities add new dimensions to the brand image.



Instant credibility or aspiration PR coverage.



Lack of ideas.



Convincing clients.

Certain parameters that postulate compatibility between the celebrity and brand image are: 

Celebrity‘s fit with the brand image.



Celebrity—Target audience match



Celebrity associated values.



Costs of acquiring the celebrity.



Celebrity—Product match.

40



Celebrity controversy risk.



Celebrity popularity.



Celebrity availability.



Celebrity physical attractiveness.



Celebrity credibility.



Celebrity prior endorsements.



Whether celebrity is a brand .



Celebrity profession.

Chapter - 6

MARKET 41

MIX OF LUX SOAP

42

Product Category, Market Segmentation, Target Marketing and Positioning

This chapter describes the category of the selected product. The chapter is organized into four sections. Section 1 states under which category the product falls. Section 2 describes how Unilever Bangladesh Ltd. differentiates the population and categorizes them into different segments. Section 3 analyzes which segment the company targets and why they target that specific segment. Finally section 4 describes the process through which the company tries to capture a place in the buyers mind i.e. the product positioning method.

6.1) Product Category:  LUX falls under the category of toiletry product as a beauty soap. 6.2) Market Segmentation:  The company claims that LUX is the highest selling beauty soap in Bangladesh. Moreover some survey reports also reveal the same result.  Though LUX is the highest selling beauty soap in Bangladesh, it does not go for traditional mass marketing. Moreover as a beauty soap LUX does not even segment its market according to gender. 

The SEC divides the population in five segments starting from A to E, where A categorizes the highly educated and

43

high income earners holders, and sequentially in descending order E categorizes the opposite. 6.3) Target Market:  LUX is not a highly expensive but an affordable product. That is why the company targets urban and sub urban upper middle and middle class people who are the second highest population of segment of the country. From the segmentation of customer according to SEC they target category A, B and C, because they are assumed to be financially well-off and can afford to buy LUX. 6.4) Product Positioning:  Unilever Bangladesh Ltd obtained a good position in the buyers‘ mind through better product attributes, price and quality, offering the product in a different way than the competitors do. The company offers improved quality of products in the industry at an affordable price with high branding, which ultimately helps to position the product in the buyers‘ mind as the best quality beauty soap.  The market share of the company in the beauty soap industry is somewhere around 43%.Since in the beauty soap industry all products are of same price Unilever cannot provide its consumers with better price but it is in a great position in reference with its packaging, fragrances and product deg.

44

 The states that though in comparison to its competitors the pricing of LUX is same but consumers rate it as the product which gives them the highest quality.

45

Chapter - 7

4 P`S OF 46

LUX SOAP

47

Study of LUX with respect to 4 P’s

A) Product:LUX is an internationally renowned beauty soap brand of Unilever. Though manufactured in Bangladesh for the local market by Unilever Bangladesh Ltd, as an international brand, it maintains an international quality for the product. Formula given by Research and Development departments in foreign countries, LUX is produced in Bangladesh from imported raw materials like sodium soap, glycerol and different extracts according to flavors, coming from Unilever plants situated abroad.

LUX Energizing Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, LUX Almond Delight and LUX Aqua Sparkle. Taking into the convenience of its customers, the company manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm. A Product is anything that can be offered to a market to satisfy a need or want products that are marketed include physical goods,

48

services,

experiences,

events,

person,

place,

properties,

organization, information and ideas.  Brand name  Product innovation  Quality and Quantities  Packaging and labeling  Style,shape and design

B) Price: Though Unilever Bangladesh gives its LUX customers a lot in of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a product with a vulnerable demand in Bangladesh. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor.

 Compares Lux‘s price with its major competitor. Company carries out research on competitors‘ price and brand loyalty when it feels extreme necessity of changing price. The brand loyalty test is an exploratory research which is known as Brand Health Check-Up (BHCU).

c) Place:  The company does not use its own fleet of transport for distributing its product. However, it has outsourced its distribution process to various third party distributors, exclusively dedicated to Unilever Bangladesh Ltd. These distributors then supply the

49

product all over Bangladesh to a huge number of retailers. Even though LUX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Bangladesh because of a recent increase in demand of its product to all segments of the population.

D) Promotion:  It‘s certain annual promotional campaigns like LUX Channel i Superstar and LUX Channel i Annual Cinema Awards has made the product a part of the glamour world. Since the 1930s, over 400 of the world‘s most stunning and sensuous women have been proudly associated with Lux ments. They do not only promote LUX in Bangladesh for the beauty conscious females, it also promotes the brand for males and the company proved that, by including world famous male celebrity Shahrukh Khan for their advertising campaign.

50

Chapter - 8

PLC OF LUX SOAP 51

52

Product life cycle of LUX SOAP A new product progresses through a sequence of stage from introduction to growth, maturity and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the market mix. The product revenue and profit can be plotted as a function of the life cycle stage as shown in the graph below: Product life cycle

8.1) Introduction Stage

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In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the market mix is as follows:  Product branding and quality level is establishment, and intellectual

property

protection

such

as

patents

and

trademarks are obtained.  Pricing may be low penetration pricing to build market share rapidly or high skim pricing to recover development costs.

 Distribution is selecting until consumers show accepted of the product.  Promotion is aimed at innovators and early adopter. Marketing communication seeks to build product awareness and to educate potential consumers about the product.

8.2) Growth stage In the growth stage, the firm seeks to build brand preference and increase market share.  Product quality is maintained and addition features and service may be added.  Pricing is maintained as the firm enjoys increasing demand with little competition.

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 Distribution channel are added as demand increasing and customers accept the product.  Promotion is aimed at a broader audience.

8.3) Maturity Stage At maturity, the strong growth in sales diminished. Competition may appear with similar products. The primary objective at this point is to defend market share while maximised profit.  Product feature may be enhanced to differentiate the product from that of competitors.  Pricing may be lower because of the new competition.  Distribution becomes more intensive and incentives may be offered to encourage preferred over competing products.  Promotion emphasized product differentiation.

8.4) Decline Stage As sales decline, the firm has several options:

55

 Maintain the product, possibly rejuvenating it by adding new features and finding new uses.  Harvest the product- reduce costs and continue to offer it, possible to a loyal niche segment.  Discontinue the product, liquidation remaining inventory or selling it to another firm that is willing to continue the product. The market mix decision in the decline phase will depend on the selected strategy. For example, the product may be changed if it being, or left unchanged if it is being harvested or liquidated, The price may be maintained if the product is harvested, or reduced drastically if liquidated.

Lux launched the world`s first mass –market beauty soup in the US in 1924& had been Launched in India in 1929. At the time there was only one competitor of lux, which was from its own brand ―Lifeboy‖ In the initial stage Lux was introduced in the major cities of INDIA like Calcutta, Mumbai.ect

The Lux MARKET STRATEGIES in the initial stages:

 Product they offer only on product in the market. They did not come up with the differentiated product.  Price in the initial stages of the product, they offer the relatively higher price than their competitor. Because, they want to recover their initial cost of making the product

56

 Advertising In the initial stages they allocate more ment budget so that more and more customers could be attracted toward the product. In ads they targeted the early adopters, who were readiest to buy the product. The first ambassador leela chitins.  Distribution was selected and only covers the major cities of India to get recognition in those cities.

Now days lux have expanded their market to the other cities of INDIA. Market objectives = The marketing objectives of the Lux were to expand their market to the other cities of INDIA. Advertising In the growth stage, they had increased their ment budget as in the initial stage because of attracting the new customers or to retail the existing customers. As reiterated in this project, Lux was promoted as a product used by film stars. And thus, every major actor has promoted the product. The list included:

57

―Leela Chitnis‖, ―Madhubala‖, ―Nargis‖, ―Meena Kumari‖, ―Mala Sinha‖, ―Sharmila Tagore‖, ―Waheeda Rehman‖, ―Saira Banu‖, ―Hema Malini‖, ―Zeenat Aman‖, ―Juhi Chawla‖, ―Tabu‖, ―Madhuri Dixit‖, ―sridevi‖, ―Aishwarya Rai‖, ―Kareena Kapoor‖, ―Priyanka Chopra‖, ―Katrina Kaif‖, ―Asin‖ ,‖Kajal Agarwal‖.

Chapter - 9

58

IMC TOOLS OF LUX SOAP

59

Integrated Marketing Communication

9.1) Promotion The great Indian brand wagon started nearly four decades ago. Great brands sometimes outlast their ambassadors as proven by Lux which celebrated its 75th anniversary in India.

The

first

ambassador,

Leela

Chitnis

featured

in

a

Lux

ment 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.

9.2) 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.

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9.3) Prominent 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 offer could be availed only on 100 gm and 150 gm packs of Lux soap.

 Lux Star Bano, Aish Karo contest: 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.

 Lux celebrated 75 years of stardom with the Har Star Lucky Star activity. All wrappers of Lux had a star printed inside them. If the consumer found written inside the star, any number from ―1‖ to ―5‖, she would get an equivalent discount (in rupees) on her purchase from her shopkeeper.

61

If the consumer found ―75 years‖ written inside the star, she will get a year‗s supply of Lux free. Online contests: Example:

9.4) 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 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.

9.5) LUX PR Activities Press relations: Lux

has

been

maintaining

constant

communicating with its customers and potential customers, of the various developments taking place in the brand by using press relations.

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Events: Lux celebrated 75 years 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.

9.6) Limited edition: Coming up with limited edition of the brand is also a way of attracting attention towards the brand. It creates a buzz and a feeling of urgency to try out the product and helps in promotion of the brand. This strategy was also implemented by Lux by bringing out limited editions like Chocolate Seduction, Aromatic Glow, Festive Glow and Haute Pink. 9.7) Logo

9.8) Labeling 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 displayed graphically are the key ingredients.

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9.9) Packaging 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 Lux has also launched a 45 g variant called Mini Lux priced at Rs. 5.

9.10) Point of Purchases: The LUX is not given a notable placement on the shelves of different retail shops & departmental stores for its sales promotion. Usually the company goes for wide display in the stores where it potential for its product. Different eye-catching decorations are made inside the store and in the showcase for outside display. These arrangements are made with the assistance of the sales people of the company.

64

9.11) ments: The message that the product reflects in its ments is the one that is usually narrated by the corporate itself. 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.

Leela Chitnis in the first Lux print ment featuring an Indian actress.

Aishwarya Rai in a print ment Featuring Lux international

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 USP or the common thread through all the ments is the Presence of Movie Stars through the ages.  The product has been positioned on the basis of REFERENCE 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. With top movie stars – from Madhubala to Madhuri, from Babita to Karisma and Kareena having endorsed the goodness of Lux over generations, it was natural that the brand has built equity as the best beauty soap in India.

From the beginning Lux, by using a leading film star of the time, has fulfilled the consumers‗aspirations of using beauty soaps via the rationale if 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 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.

66

Thus, for the first time the film star was used as a communication device and not as the main feature of the ment. The move away from the film star and her fantasy world to a regular Lux , 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 . This can be significantly seen in the latest TV commercial of Lux Crystal Shine where Priyanka Chopra is portrayed as a normal woman. Selection of Media: There are number of Sources available for ing the product message. These are as follows;      

Television Outdoor (Billboards) Magazines Newspapers Brochures Internet

9.12) Public Relations: In order to build healthy relations with the consumers, the company has established a consumer department to manage the complaints of the end-s. A legal department is also dealing with the legal issues and media war. If any news is published in a newspaper that harms the product image, a persuasive message is published in that newspaper to counter the rumor.

67

Sponsoring Events: The company goes for sponsoring events in order to heighten the company and brand image. Mostly the company goes for financing such kind of events in which its product has got some room to build likeness. The company also goes for sponsoring fashion shows in different cities. Distribution: LUX goes for indirect channel of distribution. The hierarchy of the distribution channel is as follows.  Manufacturer  Distributor  Retailer  Consumer In order to reach remote areas, a distributor engages a subdistributor for a small area. The company is directly linked with the main distributor and the sub-distributor has no such direct with the company. The company provides the Life Buoy inventory to the main distributor that is further dispatched to retailers and sub-distributors.

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Chapter -10

SWOT ANALYSIS OF LUX SOAP

69

SWOT Analysis of Lux Soap

Strengths  Strong market research (Door to Door sampling is done once a year in urban and rural areas)  Lux has a very wide range of the product to offer.  Lux possesses a very strong brand image in the market.  The focus of Lux is going strong on beauty segment.  Many variants (Almond oil, orchid extracts, milk crème, fruit extracts)  Strong sales and distribution network  Positioning focuses on the attractive beauty segment  Dynamically continuous innovation the product and brand rejuvenation new variants.  Perceived to have high value for money.  It has a broad market presence and mass appeal, being the market leader in so many countries. As per the BCG matrix, developed by the Boston Consulting Group, Lux can be put in

70

to the STAR category for high market growth and high market share Weakness  Lux lacks a unisex appeal as it has essentially been portrayed as a women‘s beauty soap and has a lot of feminine appeal.  Lux is mainly positioned as beauty soap targeted towards women, hence it lacks unisex appeal.  Certain variants of the soap, like the Haute Pink, Sunscreen, etc did not do so well in the market as some of its other variants have.  Some of its ments have been quite controversial, specially the one with Shah Rukh Khan in the bath tub, and the one of Haute Pink soap with the model in the bath tub flying up in the air in a hot air balloon.  The stock replenishment in semi-urban areas and rural areas is quite long, despite having such a wide distributor network. This leads to stock out in these areas  Usage rate/ wear rate is high and is generally mushy and soggy  Some variants like the sunscreen, International variant did not do well in the market  Certain ments like the recent one with Shah Rukh Khan resulted in controversial interpretations of the message of the ment and lead to some loss of focus Stock out problems - replenishment time is high in semi-urban/rural areas.

71

Opportunity of lux  The industry today is growing at a rate of more than 10% per annum.  The compounded annual growth rate, better known as CAGR is also rising at a steep pace. This is evident from the performance of Fair and Lovely in its segment. So, Lux can yield great benefits by reinforcing itself in the beauty segment.  Promotions

strategies

like

kiosks,

price

offs,

sample

distributions, etc are essential with competitors like ITC, etc catching up fast.  The soap, as mentioned above, is in the maturity stage of its life cycle. So it is essential that a retentive strategy be adopted so that this can be sustained.  Ayurvedic variant of Lux could have a big scope in the market. So far, the only variant of Lux that has somewhat come close to Ayurveda, though not actually is the festive glow variant, which had the goodness of haldi and chandan ubatan. This could cater to a new segment in the market.  A Lux Kids Special soap would also help the brand greatly, as this segment has been  Running dry for quite some time now. In this way, brand loyalty could be caught young!

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 The brand extension products of Lux – the body washes, with its new range launched recently, is in the growth stage of its life cycle. They can pick up fast pace is positioned and marketed properly. Active marketing of these body washes is going on in the social media.  During the sales promotions schemes, the level of servicing goes very high and this needs to be brought down.  Lux has only near about 20% penetration in rural markets. Lux holds great scope if it taps the rural markets.

THREATS OF LUX  Number of competitors is rising – ITC, P&G, etc are fast catching up.  High internal competition also exists for the soap.  Lux seems overly relied on the beauty segment, so in case the consumer trends or preferences change, then Lux stand to be highly vulnerable.  More focus needs to be put on the newer technology – currently body washes being the latest technology. This can already be seen in the market, but it needs to be enforced further.  If constant reinvention is not there, then Lux can slip down from the maturity stage it currently is in and get into a declining phase.

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Chapter -11

Porter’s 5 Forces of Lux soap 74

Environmental Analysis Using Porter’s 5 Forces of Lux soap

Degree of Rivalry: (High) LUX Soap Faces very huge competition in the Indian economy not only from the regional but also from the local brand such as Vivel Soap, Cinthol and Pears which will have greater impact on their sales which lead to decline in their profit. Even its face stiff competition from the global brand such as pears are emerging day by day Switching cost is also imperceptible and with that most of consumers are forcing to buy another soap because other competitors also providing same quality of product at a very low price. LUX Growth is brackish where the industry of soap it‘s blowing. Bargaining Power of Buyers: (High)

Who are buyer i.e consumers, consumers are every time very price sensitive because they always go for the cheaper price product and hence their huge competition between soap making

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industries so for that competitors are producing wide variety of product so their will more chance of consumers to switch other product. In most of rural areas peoples are not interested to buy because of the higher prices. Switching cost is relatively very low and for this there is price war among the competitors and consumers are always concentrate on value for money these results in stiff competition among industries to give promotional offer such as 3 for 1. Bargaining Power of suppliers: (Low)

Unilever has a more than 100 manufacturing units in India so there are number of suppliers are available so there will be lesser bargaining power of suppliers For Producing Soap companies always looking for the cheap raw material to manufacture the product and there are number of supplier are available in the local market to provide raw material at a low price. Hence the bargaining power of suppliers in low. Threat of Substitute: (High)

There are mainly two major threat of substitute in the soap category. One of the them is use of product like face wash and body wash. Though there is a growing trend among the urban areas to buy face wash or body wash due to their western culture so it ultimately leads to decrease in their sales from this type of upgraded product. Secondly there is threat from the downtrend i.e people have different attitude towards their buying for the soap because if the

76

price of soap rises consumers are force to buy different category of soap due to their buying behavior for the product. Threat of New entrant: (High)

The raw material required to produce the soap is palm oil which has to be imported from the countries like Malaysia. Thus palm oil is very expensive in India so it relatively cheaper in Malaysia and china. So there will be more chance of these countries to export soap in this Indian market. Companies like Kopran, Marico and Anchor to launch personal care products in this industry. So there will be more cost will involve in switching to this market. The new companies who launched soap is basically target to the small segment of market in order to take competitive advantage from the other industry.

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Chapter -12

Data Analysis & Interpretation

78

1) Age Group:

Age Group Less than 15 15-20 21-25 26-30 31-35 36-40 41-45 46-50 50 & above

No. of Respondents 00 48 56 41 12 05 07 13 18 Table : 6

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No. of Respondents 60 50 40 30 20 10 0 Less 15-20 than 15

21-25

26-30

31-35 36-40

41-45

46-50

50 & above

Graph : 2

Interpretation:  Here, from the analysis we can say that most of the respondents are the age of between 20 to 30 years. There are very few customers who are age above 35 years.  So, from the above analysis we can find that the s of the Lux soap are most of the youngsters. These are the customers who are easy to adopt new innovative products so company has to keep innovation in their products to attract this kind of customers.  So that company has to promote schemes which targets to the youngsters.

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 Company should launch products for the people who are above 40 years and also try to capture each age‘s segments.

2) What is the frequency of purchase of soap? Time Period

No of responded

Weekly Monthly

10 88

Bimonthly

8

Quarterly Semi annually

45 48

More

1 Table : 7

81

Sales

1 10

Weekly

45

Quarterly Bimonthly

88

Semi annually

8

Monthly More

48 Graph : 3

Analysis: After looking the chart and interpreting the data, we can easily say that the most of the purchasers buys soap on monthly bases. So here, Unilever shop.  Could try to encourage customers for purchasing more and company should offers schemes for buying twice or thrice in a month.  So the selling of the soap will increase and profit will also increase. Unilever should try to update packaging and quantity of the products.  Unilever should also maintain the small quantity products so, the weekly customers are motivated and every class of society can easily purchase as it is not so costly.

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 Responders are also looking for the quarterly purchase to get the best schemes provided by the company and also should give special discount on bulk purchase by any customer.

3) During purchase of soap what influences you purchase? Respondent

Sources Price/ cost

42

Celebrity ment

60

Quality/Quantity

98

Other

Table : 8

83

Respondent 42

Price/ cost

98 60

Celebrity ment Quality/Quantity

Graph : 4 Analysis: As per the data gathered, it can be analysed the most of the respondent selected the option of quality and quantity. Customers are now more starters than earlier so, they also look for quality and price. Company should maintain the quality of the soap to attract more and more customers and to maintain the existing customers.

 Here, Unilever should also looking for the celebrity endorsement and try to update the celebrity as usually with trends variability because according to the respondents, more than 30% respondents

influence

the

celebrity

endorsement

while

purchasing soap.  But at all customers are more depended on the quality of the product so company should always in effort to increase the quality of the product.

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4) What do you feel about celebrity endorsement? Classification

No of Responds 125 24 43 8

Likeable Unlikeable Neutral Not Important Table : 9

85

No of Responds 140

125

120 100

Likeable

80

Unlikeable 43

60

Neutral

24

40

8

20

Not Important

0 Likeable

Unlikeable

Neutral

Not Important

Graph : 5

Analysis:  As per the data it can be analyzed that almost 60 % respondents are affected by the celebrity endorsement. Company should try to change celebrity endorsement according to current trends to attract the new customers and change celebrity according to change in trends. Company should continuing ment with the different celebrities.  And company can also decrease the cost of sales promotion by taking endorsee who is not the celebrity. According to analysis, we can find that almost 40% respondent are not likable the celebrity endorsement so, company can endorse with the person who is not the famous celebrity and cut down the expenses.

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 We should also suggest to the company to choose celebrity wisely so that negative effect of celebrity endorsement can be avoided and sales and market share of the company can be increase.

5) Have you ever bought soap because of the promotion of the celebrity endorsers? No of responded 136 64 Table : 10

YES NO

87

No of responded 140 120 100 80

YES 136

NO

60 64

40 20 0 YES

NO

Graph : 6 Analysis:  From the analysis it can be inferred that more than 65% of respondents are selected the option with promotion of celebrity endorsement. So, we can say that company should do more ment with the celebrity and always try to make it more effective by taking the most popular celebrity.  There are almost 40% people are not in interested or affected by the celebrity endorsement so if company wants to decrease the cost of sales promotion than company may take endorsee who is not so famous celebrity and company can utilize that fund in various other segments. 6) Have you ever heard about Lux soap?

YES NO

No of respondent 185 15 Table : 11

88

No of respondent 15

YES NO

185

Graph : 7

Analysis: After looking the chart and interpreting the data, we can analyze that the most of people know the lux because of the good ment of the lux soap done by the company and also by the celebrity endorsement done by the company.  Company introduce new and new variety of soap with new colour and fragrance so more and more people are attracting to buy the lux product  Lux creates brand loyalty since leela chitnies become brand ambassador in Lux soap so we can say that Lux is the leader of soap indusrty since the years in India.  So, Lux has its own brand value and with effective ment, Lux is very popular soap in the market.

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7) Do you any of the TV ment of Lux Soap?

YES NO

No of respondent 185 15 Table : 12

90

No of respondent

YES NO

Graph : 8

Do you know which celebrity comes in ment of Lux? Celebrity SRK-KATRINA KATRINA ASIN-KAJAL AISHWARYA PRIYANKA KAREENA

No of respondent 47 25 45 35 06 27 Table : 13

91

No of respondent 50 45 40 35 30 25 20 15 10 5 0

No of respondent

Graph : 9 Analysis:From this analysis it can be gathered that more than 90% responded are aware about the celebrity endorsing done by the company. Company should take the best celebrity so that it successfully attracts the customer and target the particular segment. Company is always changes its celebrity according to the trend since the beginning of the brand but from the analysis we can say that ment of “sahrukh khan” and “Katrina kaif” are more popular than the others There are so many different celebrity taken by the Lux soap and from the above chart we can see that people are more aware about the of Shahrukh Khan, Katrina kaif And Kareena kapoorin television ment.

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8) Do you think, Lux soap`s sales are higher because of celebrity ment? No of respondent 158 15 12 Table : 14

YES NO MAY BE

No of respondent 158 160 140 120

YES

100 80

NO

60

MAY BE

40

15

12

20 0 YES

NO

MAY BE

Graph : 10 Analysis: In above graph we see that most of the respondent says that the celebrity ment sales of the lux soap are higher. ment of any product helps to the company to increase the sales. Now days there is lots of competition in the market and the companies are using the celebrity endorsement that help to the company to increase the sales. Customers are seeing the ment and the first come in the mind is celebrity while purchasing the product.

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9) How much you satisfy with the message of Lux ment?

No of respondent 30 104 36 15 Table : 15

Highly satisfy Satisfied Modality Dissatisfied

No of Respondent 15

30 Highly satisfy

36

Satisfied Modality Dissatisfied

104

Graph : 11

Analysis:  Lux is the brand who is giving always different ideas and messages in its ment since the 1929 and always succeed to attract the customer by its ment style and celebrity. This is the strategy of the company to promote the soap and gives variety of the products to the customers. Company is giving messages of different fragrances and colours to different age group and to the different segment group.

94

 Most of the respondents are said that Lux is coming with new and new kind of ideas and messages in broadcast media and as well as in print media to attract the customers. Lux is always success to read the mind of the customers and giving the products what customers want.

95

10) Celebrity endorsement is an effective tool of buying Lux Soap. Rate this statement No of Respondent 37 96 38 14 Table: 16

Strongly agree Agree Disagree Strongly disagree

No of Respondent 100 80 Strongly agree

60

Agree

40

Disagree

20

Strongly disagree

0 Strongly agree

Agree

Disagree

Strongly disagree

Graph : 12

Analysis :  From the above data we can find that celebrity endorsement is affect the customers to purchase the soap and it helps to attract the new customers and also maintain the old customers.  From the above analysis we can find that when celebrity change, the sales of the product are affected some celebrity helps to increase the sale and some are maintaining it.  Sometimes when the celebrity changes, some customers shifted to other product or brand and leave the existing product which they

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are currently using as celebrity change. So, company should try to maintain the same celebrity for the long time period.  Company should always try to take the top fame celebrity so that maximum number of customers can be attracted and achieve the target age group customers.

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11) According to you, what can be the reason with the companies to choose celebrities for promoting their products? No Of Respondent Fame

88

Easy recognition of product

24

To increase sales and profit

72

To follow competition

16 Table : 17

No Of Respondent 100 90 80 70 60 50 40 30 20 10 0

Fame Easy recognition of product To increase sales and profit To follow competition

Graph : 13

Analysis: From the above data we can easily say most of responded are encourage from the celebrity ment. From the analysis we can say that respondent are believe that the main reason for choosing celebrity for promoting their products is fame and almost 30% of the respondent believes that celebrity is helping to the company in increasing sales and profit.

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12) Would you prefer to change the soap you are buying now if the celebrity you like endorses a different brand and not the one you are buying right now? No of respondent 120 24 56 Table : 18

YES NO MAY BE

No of respondent

56

YES NO

24

120

MAY BE

Graph : 14

Analysis: As we seen in as above graph, most of the respondent are in favor that if their celebrity is change, they easily switch over the other brand which they follow celebrity endorses.  While some are says that they may change over the other brand but 24 respondent say that they stick with the brand and not switch over the other brand. This helps to find out the long time customers of the lux soap and with help of this person can LUX soap brand increase their customers.

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SUGGESTION  ―LUX‖ Is Generic Brand Widely Used By all Segment of Society, so company should consider all segment of society while launching its different type of product.  Customer like best quality product on any price, so company should use latest technology to their products and provide best quality to the customers.  Customer`s behavior always looks for some extra benefit with purchasing. They demand for affordable price for product and good schemes with purchasing.  Company targets only youth between 15 to 35 years who are conscious of beauty and skin but in current scenario all people are more conscious regarding their skin and beauty, so company should also consider them while manufacturing the product.  The company has to give some discounts or offers at the time of special occasions i.e., festivals.  Visual media is the best for LUX Soap because most of the respondents well aware of TV programs, Ads give along with special programs in popular TV channels to increase the sales. and also people are well known about the celebrity which shows in the ment of the lux soap.

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 During promotional programmers some discount offers while purchasing large quantity of soaps and free gift coupons shall be introduced to motivate the consumers.  Most of the people suggested that they would like to see more attractive package for LUX Soap though the present packing is good quality.  Most of the people are satisfied with small sized LUX Soap.  Try to reduce the price so that middle class can buy the soap.  From the beginning Lux, using a leading film star of the time, Popularly known as the beauty soap of film stars, With top movie stars – from Madhubala to Madhuri, from Babita to Karishma and Kareena having endorsed the goodness of Lux over generations, However, the communication was slowly seen to be losing relevance, as consumers were beginning to question if the film star actually used the brand. Now Lux is a brand of all segment of society, so advertising should not contain only ―FILMI SITARO KA SABUN‖ but also like ―AAM I KA SABUN‖

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CONCLUSION From the data obtained in the previous chapter, we can come to the following conclusions: For housewives, presence of natural ingredients plays an important role while buying soap. However, although price does play an important role in the purchase decision, today more and more housewives are conscious about skin nourishment. Also, many of them buy the brand mainly because of it has been used in the family for years together.  Lux scored high on all parameters like fragrance, lather, packaging, availability, variety and nourishment of skin. The only factors on which it did not score very high were freshness and price. Consumers think that soaps like Liril score better on freshness than Lux. Lux leaves them feeling nourished and cared for, but not fresh for a very long time.  According to the respondents, Lux is soap for quality-conscious women, especially those belonging to the middle class. It is generally used by those who are conscious about their appearance . It is used by those who respect the brand and have been loyal to it for years.  The consumers share with Lux, a relationship of trust and dependability and of respect. They look up to the brand and literally worship the brand. Lux, thus, commands the respect and even love of the consumers.

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 Most consumers are satisfied with Lux and think that it is best that they can get.  Lux is an emotive brand. The purchase decision is based on emotions. Emphasis is not on the physical attributes of the soap. Demands from the brand are high; people expect that Lux will make their skin beautiful.

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Annexure “Celebrity endorsement on buying behavior Of Consumers towards Lux soap” Name: __________________________________ Gender:  Male  Female Age Group: Less than 15 15-20 21-25 26-30 31-35

    

36-40 41-45 46-50 50 & above

   

1) What is the frequency of purchase of soap?  Weekly  Quarterly  Bimonthly  Semi-annually  Monthly  More____________ 2) How much soap do you personally require every month? 1  3  2  4  3) During purchase of soap what influences you purchase? Price/cost Quality & Quantity

 

Celebrity ment Other (Package/Trial)

 

4) Do you purchase the product because of your favorite celebrity endorsing it? Yes  No  5) Do you prefer celebrity endorsement as  Likeable  Unlikeable  Neutral  Not Important 6) How often is your purchase decision based in celebrity ment recall? Mostly  Rarely  Often  Never  7) Have you ever bought soap because of the promotion of the celebrity endorsers? Yes



No



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8) Have you ever heard about Lux soap?  Yes  No 9) Do you any of the TV ment of Lux Soap?  Yes  No If Yes then Do you know which celebrity comes in ment of Lux________________? 10) Do you think, Lux soap`s sales are higher because of celebrity ment? Yes  No  May be  11) Dose ment influence to buy Lux soup?  Yes  No 12) How much you satisfy with the message of Lux ment? Highly satisfy  Satisfied  Modality  Dissatisfied  13) Do you think that Lux`s brand or soap depend on celebrity endorsing?  Yes  No 14) Celebrity endorsement is an effective tool of buying Lux Soap. Rate this statement □ Strongly agree □ Agree □ Disagree □ Strongly disagree 15) Do you think celebrity endorsement is an important think in brand promotion? Yes  No  16) According to you, what can be the reason with the companies to choose celebrities for promoting their products?

Fame Easy recognition of product To increase sales and profit

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To follow competition 17) Would you prefer to change the soap you are buying now if the celebrity you like endorses a different brand and not the one you are buying right now?  Yes  No  Maybe

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BIBLIOGRAPHY

BOOKS REFFERED 1. Philip Kotler.

Marketing Management-, Publisher:

Pearson Education 2. Naresh K. Malhotra. Marketing Management 3. C.R.kothari. Research Methodology, Publisher: New Age International

WEBSITES REFFERED 1. www.unilever.com 

http://www.unileverea.com/ourbrands/personalcare/lux.asp



http://www.unilever.co.uk/ourbrands/personalcare/lux.asp

2. www.unileverbd.com 3. http://www.gfk.be/ProductsAndServices/ConsumerDiagnostic Tools/SpecialAnalyses/BrandHealthCheckUp 4. http://en.wikipedia.org/wiki/Unilever 5. http://ladytobaby.com/show.php?item=155

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