Lux report


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Effects of celebrity endorsement on Consumer Buying Behavior toward Lux soup

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Lux report

  1. 1. 1ACOMPREHENSIVE PROJECT REPORTON“The Impact of celebrity endorsementToward the Lux soap”Submitted toSAL Institute of ManagementIN PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE AWARD FOR THE DEGREE OFMASTER OF BUSINESS ADMINISTRATIONInGujarat Technological UniversityUNDER THE GUIDANCE OFFaculty GuideDr. Prof. Ritika JainSAL Institute of ManagementAhmedabad.Submitted byHARSH PATEL and SAHIL SHAHEn. No – 118070592067 EN. no- 118070592033SAL INSTITUTE OF MANAGEMENT
  2. 2. 2(GUJARAT TECHNOLOGICAL UNIVERSITY)Institute‘s CertificateCertified that this Comprehensive Project Report Titled “The Impact ofcelebrity endorsement Toward the Lux soap” is the bonafidework of Mr. HARSH PATEL (118070592067) & Mr. SAHIL SHAH(118070592033) ,Who carried out the research under my supervision. I alsocertify further, that to the best of my knowledge the work reported hereindoes not form part of any other project report or dissertation on the basis ofwhich a degree or award was conferred on an earlier occasion on this or anyother candidate.SAL INSTITUTE OF MANAGEMENTDr. Ritika JainAsst. Professor,SAL Institute of ManagementSign : __________________Dr. Viral BhattPrincipal / Director,SAL Institute of ManagementSign : __________________
  3. 3. 3DECLARATIONHarsh 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 OFMANAGEMENT toward the fulfillment for the study of MBA. ThisProject is based on my knowledge and database gained from company.The report written is original work of us. The contents provided are trueto best of my knowledge and belief.All the detail and analysis provide in the report hold to the best of ourknowledge.Signature of the students[Harsh Patel] [Sahil Shah]En No:-118070592067 En. No: - 118070592033
  4. 4. 4Place: AhmedabadDate:PREFACEMaster of business administration is a course, which combines boththeories and its applications as its contents of study in the field ofmanagement. As Part and parcel of this course, every aspirant has toundergo as “Market Analyst”. The purpose of this study Project is toexpose the student of management sciences with real life situationsexisting in the organization and to provide an insight in to the variousfunctions who can visualize things what they have been taught inclassrooms. Actually it is the life force of management.For the successful study of effectiveness of advertisement it is veryimport to choose such industry which can give us necessary informationand guidance in the right direction. Therefore, we selected FMCG sector,one of the most prominent sectors in India and world. This researchincludes the study of consumer behavioral patterns.
  5. 5. 5ACKNOWLEDGEMENTWe asseverate my deep sense of gratitude toward:First and Foremost we are Very Proud to be a student of SAL institute ofmanagement and are most grateful for having been the opportunity to doresearch study. Through this acknowledgement, we express our sinceregratitude towards all those people who have helped us in the preparationof 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 andguidance 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 forrecommending us the necessary information for the report.At last we are also thankful to friends who had given us their constructiveAdvice, Education suggestions, Encouragement and Co-operation toprepare this report
  6. 6. 6Table of ContentCh.No.PARTICULARS PAGENo.1. INDUSTRY PROFILE 21.1 About The Soap Industry 3 1.2 Future of the soap Industry 6 1.3 About the Business 6 1.4 Market Scenario 72 COMPANY PROFILE 102.1 Introduction 112.2 Latest Innovation by HUL 122.3 Sunny Days are here Again 132.4 Cool Cart 132.5 Brands of HUL 132.6 Marketing 153 HISTORY OF LUX SOAP 164 LITERATURE REVIEW 215 RESEARCH OBJECTIVE 255.1 Need for Study 255.2 Primary Objective 265.3 Secondary Objective 265.4 Types of data analysis used 265.5 Sample design 275.6 Derivation of sample size 27
  7. 7. 75.7 Research Design 285.8 Data Collection 285.9 Research Summary 306 MARKET MIX OF LUX SOAP 326.1 Product Category 336.2 Market Segmentation 336.3 Target Market 346.4 Product Positioning 347 STUDY OF LUX WITH RESPECT TO 4 P`S 368 PRODUCT LIFE CYCLE OF LUX SOAP 409 INTRIGRATE MARKETING COMMNUCATION 469.1 Promotion 479.2 Sales Promotion 479.3 Prominent Sales Promotion Schemes Used By LUX 489.4 Public Relations 499.5 LUX PR Activities 499.6 Limited edition 509.7 Logo 509.8 Labeling 509.9 Packaging 519.10 Point of Purchases 519.11 Advertisement 529.12 Public Relations 5410 SWOT ANALUSIS OF LUX SOAP 56
  9. 9. 9―A study on the Impact of celebrityendorsementOn buying behaviorOf Consumers towardsLux soap.‖
  10. 10. 10Chapter -1INDUSTRYPROFILE
  11. 11. 111.1) ABOUT THE SOAP INDUSTRY:History of soap dates way back from 2350 years. Soapmanufacturing was started in North America. Early in thehistory of Europe colonies and of the republic. Some Americancompanies with currently well known names were started 50 to200 years ago. During middle ages, soap was made at variousplaces in Italy, France, Spain, England and possible othercountries.Mankind knew about soap nearly 200 years back 70 A.D.when Mr.Pllny and Mr. elder evidentially discovered the soapwhen roasted meat over flowed on the flow in ashes. This lumplike product was soap and had foaming and cleansingcharacter. Since then 1192 A.D. that in the first time detergentwas taken in London. It is in 1931 A.D. that in the first timedetergent was discovered by Mr.Grency with the sulphatedolive oil and almond oil. The wood consumption of soap in1884 A.D. was said to be lakhs/ton per annum and it was inthis year Mr.W.H.L. ever entered the field of the soap makingin a big way.
  12. 12. 12INDIAN SOAP INDUSTRYSize of the IndustryThe Indian Soap Industry includes about 700 companieswith combined annual revenue of about $17 billion.GeographicaldistributionAll the major metropolitan citiesOutput per annumIndian per capita consumption of soap is at 460 gms perannumMarket capitalization70% of Indias population resides in the rural areas andaround 50% of the soaps are sold in the rural markets.Table : 1During the British rule the Lever Brothers, Englandintroduced modern soaps by importing and marketing them in thecountry. The first company created was North West SoapCompany, the soap manufacturing plant in India situated in the cityof Meerut, in the state of Uttar Pradesh. In 1897, they startedmarketing cold process soaps. In 1918, Mr. Jamshedji Tata set upIndias first indigenous soap manufacturing unit when hepurchased the Coconut Oil Mills at Cochin Kerala. OK Millscrushed and marketed coconut oil for cooking and manufacturedcrude cold process laundry soaps that were sold locally and It wasrenamed The Tata Oil Mills Company and its first branded soapsappeared on the market in the early 1930s.
  13. 13. 13Brief IntroductionSoaps are categorized into mens soaps, ladies soaps andcommon soaps. There are few specialty soaps like the Glycerinesoaps, sandal soaps, specially flavored soaps, medicated soapsand baby soaps. Specialty soaps are high valued which enjoy onlya small share of the market in value terms. The market is growingat 7% a year. This means that the incremental demand generationis 5% over and above the population growth. With increasingawareness of hygienic standards, the market for the Soaps couldgrow at a rate higher than 8% annually. Interestingly, 60% of themarket is now sourced from the rural sector. This means that thevariance between the two segments is not very large. Since upper-end market focus is the urban areas, margins come from the urbansector.
  14. 14. 141.2) FUTURE OF SOAP INDUSTRY:The growth prospects seems to be enormous considering the factthat the per capita income consumption in India is as low at 0.30kgover the year we have M/S HUL, M/S TAMCO,LUX etc., leadingthe industry in the field of soap manufacture, growth of population,income1.3) ABOUT THE BUSINESS:Major players & market shares:Hindustan Unilever ltd., (HUL) is the leader for the toilet soapindustry in India with a 60% share in the market. Other majorplayers from LUX is facing competition are Godrej soaps, Wipro,Procter & Gamble, Colgate Palmolive, Johnson & Johnson etc.,Their market shares is as followsCompaniesMARKET SHARESHUL 60TATA OIL MILLS 13ITC 07GODREJ SOAPS 05NIRMA 08OTHERS 07Table : 2
  15. 15. 15Graph : 11.4) MARKET SCENARIOOf the nearly 7 lakhs tons toilet soap, market for 500 tons comesfrom the premium segment, 3 lakhs tons won carbolic segmentand the rest are from the batting or popular segment. There are 40brands in the total toilet soap market. In the popular segment Liril,Cinthol, Palmolive, Lux international have been well established inthe market. In the popular segment lux, rexona, hamam, santorehave 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 thevarious brands generally varies between 50 paise and rupee. Thesoap industry does not face serious problems to the raw materialsfront.Consumption, expenditure increased in urban cities spread ofeducation, growing degree of personal hygiene etc., has increasedby the spread of audio-visual media, rising incomes and generalconsciousness about the health.601375 8 7MARKET SHARESHULTATA OIL MILLSITCGODREJ SOAPSNIRMAOTHERS
  16. 16. 16Soap is a product for many people and the lathering up can be atreasured part of a morning or nightly routine. Whether it might bescented or unscented, in bars, gels, and liquids, soap is a part ofour daily lives. In the United States, soap is a $1.390 million (US$)industry with over 50 mass market brands. But in Indian marketsthe sales potential for soap is only beginning to be realized. At theend of the 0year 2000, soap was a $1.032 million (US$) businessin India.
  17. 17. 17SEGMENTATION OF SOAPSThe Following table lists the key brands of the main companies.COMPANY BRAND SEGMENTATIONGodrej soaps Cinthol PremiumGodrej no 1 PopularMarvel PopularHUL Lux(international) PremiumDove PremiumFace washes,Shower gel PremiumLiril,pears, PremiumJai,breeze PopularLifebuoy(plus,gold,family,liquid) CarbolicP&G Camay PremiumWIPRO Santoor,baby soap PremiumWipro shikakai PopularKS&DL My sore sandal soap PremiumMy sore sandal gold PremiumHENKET-SPIC Margo PopularCOLGATE-PALMOLIVEPalmolive natural PremiumReckitt Benckiser Dettol CarbolicTable : 3
  18. 18. 18Chapter - 2COMPANYPROFILE
  19. 19. 192.1) Introduction:-Hindustan unilever limited is the Indian established of the world‘smost famous multinational company namely unilever limited. Thisis a very pros porous company is the FMCG segment i.e., thefast moving consumer goods. The company has very much wellestablished R&D supports and a good marketing practices andnetwork.The main purpose of Hindustan unilever limited is to meet theeveryday needs of people everywhere-to anticipate theaspirations of our consumer and customer and to respondscreatively and competitively with branded products and serviceswhich raise the quality of life. H.U.L‘s deep roots in local cultureand markets around the worlds are its unparallel inheritance andthe foundation for our future growth. H.U.L will brings its wealth‘sof knowledge and international expertise to the service of localcustomer – a truly multi-local multinational. H.U.L‘s long termsuccess requires a total commitment to exceptional standards ofperforms and productivity, to working together effectively and toa willingness to embrace new ideas and learn continuously.H.U.L believes that to succeed requires the highest standards ofcorporate behavior towards its employees, the consumers, the
  20. 20. 20societies and world in which we live. This is Hindustan unileverlimited‘s road sustainable, profitable growth for our business andlong term value creation for our share holders and employees.To realize this commitment which H.U.L has from theconsumers, employees, the society and the environment, it hasset for itself certain sacrosanct policies and principles. Thesepolicies and practices, has earned H.U.L the goodwill and trust ofpeople across the country.It is certainly H.U.L‘s brands and its people, but also its supportsystems. H.U.L‘s research centre is the largest private sectorindustrial research laboratory of its kind in India. H.U.L‘s enviablereach in the remote heartland make its kind in India.H.U.L understands the importance of savings for the futuregeneration, the simple pleasures that our planet has continuouslyoffered. Necessary measures that H.U.L has enforced in itsfactories for environment protection and pollution control, H.U.Lhas also taken up projects on energy conservation, watershedmanagement, tree plantation and soil conservation.2.2) LATEST INNOVATIONS BY H.U.LThese are some of the words that are often heard. In fact, thescientists at H.U.L‘s research centre are the brains behind the 41new products launched on an average every year. The followingare some of the latest innovations.
  21. 21. 212.3) SUNNY DAYS ARE HERE AGAIN:Now you can go out in the blazing sun without worrying aboutlosing your complexion. All you have to do is use H.U.L‘s dovesoap every day. This new, patented technology called the ‗sunscreen formula‘ contain a combination of sunscreen ‗actives‘,which are deposited on the skin as a protective layer, even asthe soap washes away dirt and grime. This unique formula is theclimax of long search for a product that‘s easy to apply, safe touse, affordable and provides optimal protection from UV rays.2.4) COOL CARTOne of the most fascinating from the research centre has beenthe world‘s first totally safe, non-corrosive, eutectic coolant thatkeeps ice cream at – 18 degree centigrade even under the mostaggressive climatic condition.2.5) BRANDS OF H.U.LHindustan unilever limited is India‘s largest packed massconsumption goods company. H.U.L is the leader in home andpersonal products and food and beverages. It seeks to ―meeteveryday needs to people everywhere – to anticipate theaspirations of our consumers and customers and to respondcreatively and competitively with branded products and serviceswhich raise the quality of life. It is this purpose which inspiresH.U.L to build brands. Over the past 70 years, it has introduced
  22. 22. 22about 110 brands, most of which have become house holdnames in the country.Some of the HUL Brands are:Table : 4BEVERAGES BROOKEBOND SKINCARdETaj Mahal Fair & LovelyRed Label Pond‘s3 Roses ORAL CARETaaza PepsodentLipton Yellow Label Close-UpLipton Green Label HAIR CARELipton Ice Tea SunsilkBRU Coffee Clinic plusDEODRANTS FABRIC WASHAxe SurfPond‘s RinRexona WheelLakme DoveANNAPURNA ATTA LirilKwality walls
  23. 23. 232.6) MARKETING:-HUL is present in home and personal care and Foods &Beverages categories. HUL and group companies have about40,000 employees, including 1425 managers.For marketing HUL divides the country into four regions, withregional branches in Delhi, Kolkata, Chennai and Mumbai.Headed by a regional manager, they comprise regional salesmanager and area sales manager, assisted by dedicated fieldforces, comprising sales officers and territory sales in charges.In marketing, each category has a marketing manager whoheads a team of brand managers dedicated to each or a group ofbrands. The brand managers, wherever appropriate, focusexclusively on brand strategy or implementation.MANUFACTURING:-Each division has a nationwide manufacturing base, with eachfactory peopled by teams of production, engineering, qualityassurance, commercial and personal managers.
  24. 24. 24Chapter - 3HISTORYOFLUX SOAP
  25. 25. 25History of LuxLux soap first produced in United Kingdom in 1899. It wasproduced by British company name Lever Brothers. Lever Brotherswas founded in 1885 by William Hesketh Lever and his brotherJames. They using glycerin and vegetable oil such as palm oil tomanufacture soap called ―Sunlight Soap.‖From 1930s right through 1970s, Lux soap colors and packagingwere altered several times to reflect fashion trends. In 1958 fivecolors were made up the range: pink, white, blue, green andyellow. 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 Luxadvertisement featured actor Leela Chitnis. Its popular slogan was‗the beauty soap of film stars.‘The ‘how’ and ‘why’ behind thepromotion goes a long way in brand building.As reiterated in this project, Lux was promoted as a product usedby film stars. And thus, every major actor has promoted theproduct.
  26. 26. 26The 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 advertised as a product meant forindulging the senses, where bathing was a wonderful ritual in itself,it petered down its approach in the recent years. The actors arestill shown seen indulging themselves. But the focus also movestowards the ordinary girl in a bid to reach out to its femaleconsumers.
  27. 27. 27A wonderful example of this promotion was the 2005 ‗Mujhme StarJagaaye‘ campaign featuring Aishwarya Rai and Shilpa Anand.The campaign also promoted a Model Hunt that went underwaysoon after.In 2004, Lux launched a ‗Lux star bano, Aish karo‘ contest whereconsumers were supposed to buy a promotional pack of Lux andscratch the special scratch card to earn their reward. Prizes variedfrom living a day in Aishwarya Rai‘s life to beauty kits, Neeta Lullasaris among a host of other gift vouchers and well… more Luxsoaps to be won.On its completion of 75 years in 2005, Lux roped in Shah RukhKhan as its first ever male ambassador. The advertisementfeatured the actor in a bathtub, flanked by his leading ladies – JuhiChawla, Kareena Kapoor, Sridevi and Hema Malini. It was knownas the ‗Har Star Lucky Star‘ offer, where every wrapperguaranteed a gift, waiting to be unwrapped.In 2009, Aishwarya Rai and Abhishek Bachchan featured in thenew ‗Sone Se Bhi Sona Lage‘ campaign. The campaign alsoconducted a Lux Super Star Offer where the lucky winners get tomeet Aishwarya-Abhishek in London. The campaign jingle becameso immensely popular that its varied renditions were used in theadvertisements that featured Katrina Kaif since 2009.Asin Thottumkal and Kajal Agarwal are the newest brandambassadors of Lux, modelling together for the ―Kya Khoob HoTum‖ advertisement that has been recently released.
  28. 28. 28Lux also relies on market research for making innovative changesby going for door-to-door sampling of a product, once a year, inurban and rural areas. The brand image is firmly and favourablyembedded in the psyche of the consumers. The product is also notparticularly 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 Chemicalsand was launched in 1920)
  29. 29. 29Chapter -4LITERATUREREVIEW
  30. 30. 30Discovering the Consumer: Market Research, ProductInnovation, and the Creation of Brand Loyalty in Britain andthe United States in the Interwar YearsThis paper discusses the use of marketand consumer research at Lever/Unilever and itsadvertising agency in Britain and the United States, J.Walter Thompson (JWT), in the interwar period.Research surveys conducted by JWT in the 1920sand 1930s helped Lever reposition itsinternational soap brand Lux.The article also shows that marketings culturalpractices often predate its conceptualization andacademic theorization.The Brand: Lux Soap FlakesOne of Lever‘s earliest product innovations was aproduction technique developed in1889, which allowedsoap to be produced in forms of flakes. The resultingproduct, soap flakes, made washing easier andpreserved the garments as women did not have to rubclothes with the hard soap bar. In 1900, Lever‘sproduct came on the market as ‗‗Lux soap flakes.‘‘
  31. 31. 31Moreover, the product was positioned as a problemsolver (Levitt1960); if consumers were rich enough tobuy expensive clothes, they also had problems whichlow-income groups did not have, that is, the preservation ofsilk or other expensive clothes. Lux helped solve theseproblems. In 1906, Lever began to export Lux soap flakes tothe United States.There, its advertising agency JWT suggested that thetraditional positioning of Lux as a product to be used towash woolen garments (see slogan in fig. 1:‗‗Lux won‘tshrink woolens‘‘) should be widened so thatconsumers saw Lux as product that could beused for all fine fabrics.Its advertisements often followed an aggressivemarket expansion strategy for their products; by suggestinga wider framework of possible uses for a given productboth the customer base and the usage rate of aproduct could be increased (Ansoff 1957).For its client Lever Brothers, this strategy resulted inincreased sales from 10,000 cases in 1915 to over onemillion cases in 1918 (The history of LuxFlakes‘‘1950; Lovett1970). This strategic marketing orientation of JWT‘sadvertising is further exemplified in its decision to useadvertisements in 1922 to promote the use of Lux forthe washing of dishes.
  32. 32. 32In the early 1920s, the Lux advertising campaign inthe American market took a crucial turn towarddialogic consumer engagement. In 1924, JWT invitedAmerican housewives to submit testimonials for Luxsoap flakes. These letters, of which about 53,000 arrivedat the JWT headquarters‘, were used by the agency toconduct a survey of consumer habits. It turned outthat consumers had independently begun to use theflakes for the washing of their hands, for baths, for theirbabies, and for washing their hands and hair.
  33. 33. 33Chapter - 5ResearchObjectives
  34. 34. 345.1) Need for the study:We have undertaken this study because the We want toknow the reasons to buy different brands of soaps and particularlyconsumer opinion about LUX Soap, the factors affecting whilepurchasing a FMGC5.2) PRIMARY OBJECTIVES:“Effects of celebrity endorsement on Consumer BuyingBehavior toward Lux soup‖5.3) Secondary Objects: To Identify the influence of celebrity endorsement onconsumer buying behavior To understand buyer behavior of Lux soap use. To extract consumers opinion regarding various inadvertisement for celebrity endorsement of Lux soup.5.4) Types of data analysis used:In order to properly analyze the data, there would be twotypes of data analysis in this project. They are as follows:Qualitative data analysis – through Findings, Analysis andexplanationQuantitative data analysis – through charts, schedules, figures,and structures
  35. 35. 355.5) Sample Design:Sampling size = 200 Respondents (mostly targeted on womenOr Girls).Sampling technique = Hypothesis MethodResearch Instrument : ―Questionnaire‖, ―Personally‖Types of Questionnaire: ―structure‖5.6) Derivation of sample size:On the basis of the pilot survey, the percentage of customer whomarried in last 5 years came to 60%. To ensure 99% confidencelevel and a permissible error not to exceed 10%, the sample sizewas determined as under:p (proportion) = 0.6, q = 0.4 ( 1-p )n = Z2* p*qE2= (2.58)2* 0.60 * 0.40(0.1)2= 6.6564 * 0.240.01= 159.75 customersHence, we took a sample size of 200 consumers.
  36. 36. 365.7) Research DesignThe research design is descriptive.Descriptive studies are well structured.Descriptive research is under taken in many circumstances: When the researcher is interest in knowing thecharacteristics of certain groups such as age, profession When the researcher is interested in knowing the proportionof the people in giving population who have behaved in aparticular manner, making projects.We have taken descriptive because my research includes theknowing the behavior of customer toward advertisement effects ofsoft drinks products. We have analyzed how people of various agefactors respond to different advertising of their perception towardssoft drinks.5.8) DATA COLLECTION:Actually, the reliability of research decisions depends on thequality 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 isconcerned.1. Primary data2. Secondary data1. Primary Data:I. Questionnaire MethodII. Direct Interview Method and
  37. 37. 37III. Observation MethodThe main tool use, the questionnaire method. Further directinterview method, where a face-to-face formal interview istaking. Lastly observation method has been continuous withthe questionnaire method, as one continuously observes thesurrounding environment he works in.2. Secondary Data:These are those data which are collected from the varioussources which have been already created for the purpose of firsttime use and future use.We have used the following secondary data in my project:InternetNewspaperMagazinesSummaryCelebrity endorsement is the very important and basic tools for thepromotion of the product and now a day it is become a trend forthe product marketing and brad building. However it is easy toselect a celebrity but it is very difficult to establish a strongrelationship between the product and the endorser. The celebritycan make a better brand image and also helpful for profitmaximization.
  38. 38. 385.9) RESEARCH SUMMARYPrimary Objective“Effects of celebrityendorsement on ConsumerBuying Behavior toward Luxsoup”Research Design Descriptive Research DesignResearchApproachSurvey Research i.e. DirectSurveyData SourcePrimary data source:QuestionnaireSecondary data source :Company websiteSampling Area Ahmedabad (western)Sample Size 200 respondersSampling method Convenient sampling methodResearch Instrument QuestionnaireContact Method Personal InterviewTable : 5
  39. 39. 39Celebrity endorsements are impelled by virtue of the followingmotives: 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 thecelebrity 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. Celebrity controversy risk. Celebrity popularity. Celebrity availability. Celebrity physical attractiveness. Celebrity credibility. Celebrity prior endorsements. Whether celebrity is a brand user. Celebrity profession.
  40. 40. 40Chapter - 6MARKETMIXOFLUX SOAP
  41. 41. 41Product Category, Market Segmentation, Target Marketing andPositioningThis chapter describes the category of the selected product. Thechapter is organized into four sections. Section 1 states underwhich category the product falls. Section 2 describes howUnilever Bangladesh Ltd. differentiates the population andcategorizes them into different segments. Section 3 analyzeswhich segment the company targets and why they target thatspecific segment. Finally section 4 describes the process throughwhich 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 beautysoap.6.2) Market Segmentation: The company claims that LUX is the highest selling beautysoap in Bangladesh. Moreover some survey reports alsoreveal the same result. Though LUX is the highest selling beauty soap inBangladesh, it does not go for traditional mass marketing.Moreover as a beauty soap LUX does not even segment itsmarket according to gender. The SEC divides the population in five segments startingfrom A to E, where A categorizes the highly educated and
  42. 42. 42high income earners holders, and sequentially in descendingorder E categorizes the opposite.6.3) Target Market: LUX is not a highly expensive but an affordable product. Thatis why the company targets urban and sub urban uppermiddle and middle class people who are the second highestpopulation of segment of the country. From the segmentationof customer according to SEC they target category A, B andC, because they are assumed to be financially well-off andcan afford to buy LUX.6.4) Product Positioning: Unilever Bangladesh Ltd obtained a good position in thebuyers‘ mind through better product attributes, price andquality, offering the product in a different way than thecompetitors do. The company offers improved quality ofproducts in the industry at an affordable price with highbranding, which ultimately helps to position the product in thebuyers‘ mind as the best quality beauty soap. The market share of the company in the beauty soapindustry is somewhere around 43%.Since in the beauty soapindustry all products are of same price Unilever cannotprovide its consumers with better price but it is in a greatposition in reference with its packaging, fragrances andproduct designing.
  43. 43. 43 The states that though in comparison to its competitors thepricing of LUX is same but consumers rate it as the productwhich gives them the highest quality.
  44. 44. 44Chapter - 74 P`S OFLUX SOAP
  45. 45. 45Study of LUX with respect to 4 P’sA) Product:-LUX is an internationally renowned beauty soap brand of Unilever.Though manufactured in Bangladesh for the local market byUnilever Bangladesh Ltd, as an international brand, it maintains aninternational quality for the product. Formula given by Researchand Development departments in foreign countries, LUX isproduced in Bangladesh from imported raw materials like sodiumsoap, glycerol and different extracts according to flavors, comingfrom Unilever plants situated abroad.LUX Energizing Honey, LUX Golden Glow, LUX Nature Pure, LUXOrchid Touch, LUX Almond Delight and LUX Aqua Sparkle.Taking into account the convenience of its customers, thecompany 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 aneed or want products that are marketed include physical goods,services, experiences, events, person, place, properties,organization, information and ideas.
  46. 46. 46 Brand name Product innovation Quality and Quantities Packaging and labeling Style,shape and designB) Price:-Though Unilever Bangladesh gives its LUX customers a lot interms of the product itself, it cannot provide a better pricing. Thisis due to some constraints in the beauty soap industry. Beautysoap is a product with a vulnerable demand in Bangladesh. Achange in price has a high risk of creating price war among therivals which will eventually cause a loss of profit. Its prices arealmost equal to its competitor.Compares Lux‘s price with its major competitor. Company carriesout research on competitors‘ price and brand loyalty when it feelsextreme necessity of changing price. The brand loyalty test is anexploratory research which is known as Brand Health Check-Up(BHCU).c) Place: The company does not use its own fleet of transport fordistributing its product. However, it has outsourced its distributionprocess to various third party distributors, exclusively dedicated toUnilever Bangladesh Ltd. These distributors then supply theproduct all over Bangladesh to a huge number of retailers. Eventhough LUX targets the urban and sub urban middle and upper
  47. 47. 47middle class people they are distributing their products all overBangladesh because of a recent increase in demand of itsproduct to all segments of the population.D) Promotion: It‘s certain annual promotional campaigns like LUX Channel iSuperstar and LUX Channel i Annual Cinema Awards has madethe product a part of the glamour world. Since the 1930s, over400 of the world‘s most stunning and sensuous women havebeen proudly associated with Lux advertisements. They do notonly promote LUX in Bangladesh for the beauty consciousfemales, it also promotes the brand for males and the companyproved that, by including world famous male celebrity ShahrukhKhan for their advertising campaign.
  48. 48. 48Chapter - 8PLC OFLUX SOAP
  49. 49. 49Product life cycle of LUX SOAPA new product progresses through a sequence of stage fromintroduction to growth, maturity and decline. This sequence isknown as the product life cycle and is associated with changes inthe marketing situation, thus impacting the marketing strategy andthe market mix.The product revenue and profit can be plotted as a function of thelife cycle stage as shown in the graph below:Product life cycle8.1) Introduction StageIn the introduction stage, the firm seeks to build productawareness and develop a market for the product. The impact onthe market mix is as follows: Product branding and quality level is establishment, andintellectual property protection such as patents andtrademarks are obtained. Pricing may be low penetration pricing to build market sharerapidly or high skim pricing to recover development costs.
  50. 50. 50 Distribution is selecting until consumers show accepted of theproduct. Promotion is aimed at innovators and early adopter. Marketingcommunication seeks to build product awareness and toeducate potential consumers about the product.8.2) Growth stageIn the growth stage, the firm seeks to build brand preference andincrease market share. Product quality is maintained and addition features and supportservice may be added. Pricing is maintained as the firm enjoys increasing demand withlittle competition. Distribution channel are added as demand increasing andcustomers accept the product. Promotion is aimed at a broader audience.
  51. 51. 518.3) Maturity StageAt maturity, the strong growth in sales diminished. Competitionmay appear with similar products. The primary objective at thispoint is to defend market share while maximised profit. Product feature may be enhanced to differentiate the product fromthat of competitors. Pricing may be lower because of the new competition. Distribution becomes more intensive and incentives may beoffered to encourage preferred over competing products. Promotion emphasized product differentiation.8.4) Decline StageAs sales decline, the firm has several options: Maintain the product, possibly rejuvenating it by adding newfeatures and finding new uses. Harvest the product- reduce costs and continue to offer it, possibleto a loyal niche segment. Discontinue the product, liquidation remaining inventory or selling itto another firm that is willing to continue the product.The market mix decision in the decline phase will depend on theselected strategy. For example, the product may be changed if itbeing, or left unchanged if it is being harvested or liquidated, Theprice may be maintained if the product is harvested, or reduceddrastically if liquidated.
  52. 52. 52Lux launched the world`s first mass –market beauty soup in theUS in 1924& had been Launched in India in 1929.At the time there was only one competitor of lux, which was fromits own brand ―Lifeboy‖In the initial stage Lux was introduced in the major cities of INDIAlike Calcutta, Mumbai.ectThe Lux MARKET STRATEGIES in the initial stages:Product they offer only on product in the market. They didnot come up with the differentiated product.Price in the initial stages of the product, they offer therelatively higher price than their competitor. Because, theywant to recover their initial cost of making the productAdvertising In the initial stages they allocate moreadvertisement budget so that more and more customerscould be attracted toward the product. In ads they targetedthe early adopters, who were readiest to buy the product.The first ambassador leela chitins.Distribution was selected and only covers the major citiesof India to get recognition in those cities.
  53. 53. 53Now days lux have expanded their market to the other cities ofINDIA.Market objectives = The marketing objectives of the Lux were toexpand their market to the other cities of INDIA.AdvertisingIn the growth stage, they had increased their advertisement budgetas in the initial stage because of attracting the new customers or toretail the existing customers.As reiterated in this project, Lux was promoted as a product usedby film stars. And thus, every major actor has promoted theproduct.The list included:―Leela Chitnis‖, ―Madhubala‖, ―Nargis‖, ―Meena Kumari‖, ―MalaSinha‖, ―Sharmila Tagore‖, ―Waheeda Rehman‖, ―Saira Banu‖,―Hema Malini‖, ―Zeenat Aman‖, ―Juhi Chawla‖, ―Tabu‖, ―MadhuriDixit‖, ―sridevi‖, ―Aishwarya Rai‖, ―Kareena Kapoor‖, ―PriyankaChopra‖, ―Katrina Kaif‖, ―Asin‖ ,‖Kajal Agarwal‖.
  54. 54. 54Chapter - 9IMC TOOLS OFLUX SOAP
  55. 55. 55Integrated Marketing Communication9.1) PromotionThe great Indian brand wagon started nearly four decades ago.Great brands sometimes outlast their ambassadors as proven byLux which celebrated its 75th anniversary in India.The first ambassador, Leela Chitnis featured in a Luxadvertisement which flagged off the Lux wagon. She gave way to agalaxy 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 mostactors aspiring to stardom is becoming a Lux ambassador. Thebrand has outlasted many soaps. From the beginning, Lux becamea household name across the country.9.2) Sales PromotionSales 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 particularproducts or services by consumers or the trade. Whereasadvertising offers a reason to buy, sales promotion offers anincentive to buy.
  56. 56. 569.3) Prominent Sales Promotion Schemes Used By LUXLux presented 30 gm gold each to the first three winners ofthe Lux Gold Star offer from Delhi. According to thepromotional offer that Lux unveiled in October 2000, aconsumer finding a 22-carat gold coin in his or her soap bargot an opportunity to win an additional 30 gm gold.The first 10 callers every week got a 30 gm gold each. Theoffer could be availed only on 100 gm and 150 gm packs ofLux soap.Lux Star Bano, Aish Karo contest: All one needed to do wasbuy a special promotional pack of Lux soap. The packcomes with a special scratch card.The 50 lucky winners and their spouses were flown down toMumbai to live a day like Aishwarya Rai would. They couldalso be given gift vouchers worth Rs 50,000 from ShoppersStop along with an exclusively designed Neeta Lulla sariand a beauty makeover by Michelle Tung, Aishwaryaspreferred designer and stylist. The pièce de résistance wasa dinner date with Aishwarya Rai herself.Lux celebrated 75 years of stardom with the Har Star LuckyStar activity. All wrappers of Lux had a star printed insidethem. If the consumer found written inside the star, anynumber from ―1‖ to ―5‖ , she would get an equivalentdiscount (in rupees) on her purchase from her shopkeeper.
  57. 57. 57If 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 ofinterested publics. A public is any group that has an actual orpotential interest in or impact on a company‗s ability to achieve itsobjectives. PR involves a variety of programs designed to promoteor protect a company‗s image or its individual products.9.5) LUX PR ActivitiesPress relations:Lux has been maintaining constantcommunicating with its customers and potential customers, of thevarious developments taking place in the brand by using pressrelations.
  58. 58. 58Events:Lux celebrated 75 years of existence in a grand way by unveilingShahrukh Khan as their latest brand ambassador. KareenaKapoor, Juhi Chawla, Sridevi and Hema Malini graced the eventand 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 ofattracting attention towards the brand. It creates a buzz and afeeling of urgency to try out the product and helps in promotion ofthe brand. This strategy was also implemented by Lux by bringingout limited editions like Chocolate Seduction, Aromatic Glow,Festive Glow and Haute Pink.9.7) Logo9.8) LabelingThe LUX Trade Character or Logo is present prominently on thepackage. A novel metallic substrate packaging showcases theingredients, and a female model is shown on the pack. Alsodisplayed graphically are the key ingredients.
  59. 59. 599.9) PackagingThe colors are different for different variants such as saffron for thesaffron variant, pink for the rose extracts etc. The Bars come inpackage sizes of 100g, 120g, 150 g Lux has also launched a 45 gvariant called Mini Lux priced at Rs. 5.9.10) Point of Purchases:The LUX is not given a notable placement on the shelves ofdifferent retail shops & departmental stores for its sales promotion.Usually the company goes for wide display in the stores where itpotential for its product. Different eye-catching decorations aremade inside the store and in the showcase for outside display.These arrangements are made with the assistance of the salespeople of the company.
  60. 60. 609.11) Advertisements:The message that the product reflects in its advertisements is theone that is usually narrated by the corporate itself. Advertising isany paid form of non-personal presentation and promotion ofideas, goods and services by an identified sponsor. Ads can be acost effective way to disseminate messages, whether to build abrand preference or to educate people.Leela Chitnis in the first Lux print advertisement featuring an Indianactress.Aishwarya Rai in a print advertisementFeaturing Lux international
  61. 61. 61USP or the common thread through all the advertisements isthe Presence of Movie Stars through the ages.The product has been positioned on the basis of REFERENCEGROUP by using a celebrity popular at that point in time.Some amount of attribute positioning by mentioning the variousingredients has also been done.With top movie stars – from Madhubala to Madhuri, from Babitato Karisma and Kareena having endorsed the goodness of Luxover generations, it was natural that the brand has built equity asthe 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 viathe 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 withLux, which transports the user into a fantasy world of icons, filmstars and fairy lands.Change in communication strategyHowever, the communication was slowly seen to be losingrelevance, as consumers were beginning to question if the film staractually used the brand. In addition to this, several competitivebeauty soap brands had begun advertising using similar methodsof communication. In this context, the global brand team for Luxdeveloped a new communication strategy. This strategy – bringout the star in you – for the first time moved the brand away fromthe long-running film star route.
  62. 62. 62Thus, for the first time the film star was used as a communicationdevice and not as the main feature of the advertisement. Themove away from the film star and her fantasy world to a regularLux user, with the focus on the protagonist‗s star quality, is achange from the norms set by Lux advertising in the past.With the new communication strategy, the film star is used purelyas a communication device to portray star quality in every Luxuser. This can be significantly seen in the latest TV commercial ofLux Crystal Shine where Priyanka Chopra is portrayed as a normalwoman.Selection of Media:There are number of Sources available for passingthe product message. These are as follows; Television Outdoor (Billboards) Magazines Newspapers Brochures Internet9.12) Public Relations:In order to build healthy relations with the consumers, thecompany has established a consumer department to manage thecomplaints of the end-users. A legal department is also dealingwith the legal issues and media war. If any news is published in anewspaper that harms the product image, a persuasive messageis published in that newspaper to counter the rumor.
  63. 63. 63Sponsoring Events:The company goes for sponsoring events in order to heighten thecompany and brand image. Mostly the company goes for financingsuch kind of events in which its product has got some room tobuild likeness. The company also goes for sponsoring fashionshows in different cities.Distribution:LUX goes for indirect channel of distribution. The hierarchy of thedistribution channel is as follows. Manufacturer Distributor Retailer ConsumerIn order to reach remote areas, a distributor engages a sub-distributor for a small area. The company is directly linked with themain distributor and the sub-distributor has no such direct contactwith the company. The company provides the Life Buoy inventoryto the main distributor that is further dispatched to retailers andsub-distributors.
  64. 64. 64Chapter -10SWOTANALYSIS OFLUX SOAP
  65. 65. 65SWOT Analysis of Lux SoapStrengthsStrong market research (Door to Door sampling is done once ayear 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, fruitextracts)Strong sales and distribution networkPositioning focuses on the attractive beauty segmentDynamically continuous innovation the product and brandrejuvenation new variants.Perceived to have high value for money.It has a broad market presence and mass appeal, being themarket leader in so many countries. As per the BCG matrix,developed by the Boston Consulting Group, Lux can be put in
  66. 66. 66to the STAR category for high market growth and high marketshareWeaknessLux lacks a unisex appeal as it has essentially beenportrayed as a women‘s beauty soap and has a lot offeminine appeal.Lux is mainly positioned as beauty soap targeted towardswomen, 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 othervariants have.Some of its advertisements have been quite controversial,specially the one with Shah Rukh Khan in the bath tub, andthe one of Haute Pink soap with the model in the bath tubflying up in the air in a hot air balloon.The stock replenishment in semi-urban areas and rural areasis quite long, despite having such a wide distributor network.This leads to stock out in these areasUsage rate/ wear rate is high and is generally mushy andsoggySome variants like the sunscreen, International variantdid not do well in the marketCertain advertisements like the recent one with ShahRukh Khan resulted in controversial interpretations of themessage of the advertisement and lead to some loss offocus Stock out problems - replenishment time is high insemi-urban/rural areas.
  67. 67. 67Opportunity of luxThe industry today is growing at a rate of more than 10% perannum.The compounded annual growth rate, better known as CAGRis also rising at a steep pace. This is evident from theperformance of Fair and Lovely in its segment. So, Lux canyield great benefits by reinforcing itself in the beauty segment.Promotions strategies like kiosks, price offs, sampledistributions, etc are essential with competitors like ITC, etccatching up fast.The soap, as mentioned above, is in the maturity stage of itslife cycle. So it is essential that a retentive strategy be adoptedso 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 closeto Ayurveda, though not actually is the festive glow variant,which had the goodness of haldi and chandan ubatan. Thiscould cater to a new segment in the market.A Lux Kids Special soap would also help the brand greatly, asthis segment has beenRunning dry for quite some time now. In this way, brand loyaltycould be caught young!
  68. 68. 68The brand extension products of Lux – the body washes, withits new range launched recently, is in the growth stage of its lifecycle. They can pick up fast pace is positioned and marketedproperly. Active marketing of these body washes is going on inthe social media.During the sales promotions schemes, the level of servicinggoes very high and this needs to be brought down.Lux has only near about 20% penetration in rural markets. Luxholds great scope if it taps the rural markets.THREATS OF LUXNumber of competitors is rising – ITC, P&G, etc are fastcatching up.High internal competition also exists for the soap.Lux seems overly relied on the beauty segment, so in case theconsumer trends or preferences change, then Lux stand to behighly vulnerable.More focus needs to be put on the newer technology –currently body washes being the latest technology. This canalready be seen in the market, but it needs to be enforcedfurther.If constant reinvention is not there, then Lux can slip down fromthe maturity stage it currently is in and get into a decliningphase.
  69. 69. 69Chapter -11Porter’s 5 ForcesofLux soap
  70. 70. 70Environmental Analysis UsingPorter’s 5 Forces of Lux soapDegree of Rivalry: (High)LUX Soap Faces very huge competition in the Indian economy notonly from the regional but also from the local brand such as VivelSoap, Cinthol and Pears which will have greater impact on theirsales which lead to decline in their profit. Even its face stiffcompetition from the global brand such as pears are emerging dayby daySwitching cost is also imperceptible and with that most ofconsumers are forcing to buy another soap because othercompetitors also providing same quality of product at a very lowprice.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 veryprice sensitive because they always go for the cheaper priceproduct and hence their huge competition between soap makingindustries so for that competitors are producing wide variety of
  71. 71. 71product so their will more chance of consumers to switch otherproduct.In most of rural areas peoples are not interested to buy because ofthe higher prices.Switching cost is relatively very low and for this there is price waramong the competitors and consumers are always concentrate onvalue for money these results in stiff competition among industriesto give promotional offer such as 3 for 1.Bargaining Power of suppliers: (Low)Unilever has a more than 100 manufacturing units in India so thereare number of suppliers are available so there will be lesserbargaining power of suppliersFor Producing Soap companies always looking for the cheap rawmaterial to manufacture the product and there are number ofsupplier are available in the local market to provide raw material ata low price. Hence the bargaining power of suppliers in low.Threat of Substitute: (High)There are mainly two major threat of substitute in the soapcategory. One of the them is use of product like face wash andbody wash. Though there is a growing trend among the urbanareas to buy face wash or body wash due to their western cultureso it ultimately leads to decrease in their sales from this type ofupgraded product.Secondly there is threat from the downtrend i.e people havedifferent attitude towards their buying for the soap because if the
  72. 72. 72price of premium soap rises consumers are force to buy differentcategory 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 whichhas to be imported from the countries like Malaysia. Thus palm oilis very expensive in India so it relatively cheaper in Malaysia andchina. So there will be more chance of these countries to exportsoap in this Indian market.Companies like Kopran, Marico and Anchor to launch personalcare products in this industry. So there will be more cost willinvolve in switching to this market.The new companies who launched soap is basically target to thesmall segment of market in order to take competitive advantagefrom the other industry.
  73. 73. 73Chapter -12Data Analysis&Interpretation
  74. 74. 741) Age Group:Age Group No. of RespondentsLess than 15 0015-20 4821-25 5626-30 4131-35 1236-40 0541-45 0746-50 1350 & above 18Table : 6Graph : 2Interpretation:Here, from the analysis we can say that most of therespondents are the age of between 20 to 30 years. Thereare very few customers who are age above 35 years.0102030405060Lessthan 1515-20 21-25 26-30 31-35 36-40 41-45 46-50 50 &aboveNo. of Respondents
  75. 75. 75So, from the above analysis we can find that the users of theLux soap are most of the youngsters. These are thecustomers who are easy to adopt new innovative products socompany has to keep innovation in their products to attractthis kind of customers.So that company has to promote schemes which targets tothe youngsters.Company should launch products for the people who areabove 40 years and also try to capture each age‘s segments.
  76. 76. 762) What is the frequency of purchase of soap?Time Period No of respondedWeekly 10Monthly 88Bimonthly 8Quarterly 45Semi annually 48More 1Table : 7Graph : 3Analysis:-After looking the chart and interpreting the data, we can easilysay that the most of the purchasers buys soap on monthly bases.So here, Unilever shop.Could try to encourage customers for purchasing more andcompany should offers schemes for buying twice or thrice in amonth.1045848881 SalesWeeklyQuarterlyBimonthlySemi annuallyMonthlyMore
  77. 77. 77So the selling of the soap will increase and profit will alsoincrease. Unilever should try to update packaging and quantity ofthe products.Unilever should also maintain the small quantity products so, theweekly customers are motivated and every class of society caneasily purchase as it is not so costly.Responders are also looking for the quarterly purchase to get thebest schemes provided by the company and also should givespecial discount on bulk purchase by any customer.
  78. 78. 783) During purchase of soap what influences you purchase?Sources RespondentPrice/ cost 42Celebrity Advertisement 60Quality/Quantity 98Other -Table : 8Graph : 4Analysis:-As per the data gathered, it can be analysed the most of therespondent selected the option of quality and quantity.Customers are now more starters than earlier so, they also lookfor quality and price. Company should maintain the quality of thesoap to attract more and more customers and to maintain theexisting customers.426098RespondentPrice/ costCelebrityAdvertisementQuality/Quantity
  79. 79. 79Here, Unilever should also looking for the celebrity endorsementand try to update the celebrity as usually with trends variabilitybecause according to the respondents, more than 30%respondents influence the celebrity endorsement whilepurchasing soap.But at all customers are more depended on the quality of theproduct so company should always in effort to increase thequality of the product.
  80. 80. 804) What do you feel about celebrity endorsement?Classification No of RespondsLikeable 125Unlikeable 24Neutral 43Not Important 8Table : 9Graph : 5Analysis:As per the data it can be analyzed that almost 60 % respondentsare affected by the celebrity endorsement. Company should tryto change celebrity endorsement according to current trends toattract the new customers and change celebrity according tochange in trends. Company should continuing advertisementwith the different celebrities.020406080100120140Likeable Unlikeable Neutral NotImportant12524438No of RespondsLikeableUnlikeableNeutralNot Important
  81. 81. 81And company can also decrease the cost of sales promotion bytaking endorsee who is not the celebrity. According to analysis,we can find that almost 40% respondent are not likable thecelebrity endorsement so, company can endorse with the personwho is not the famous celebrity and cut down the expenses.We should also suggest to the company to choose celebritywisely so that negative effect of celebrity endorsement can beavoided and sales and market share of the company can beincrease.
  82. 82. 825) Have you ever bought soap because of the promotion of thecelebrity endorsers?No of respondedYES 136NO 64Table : 10Graph : 6Analysis:From the analysis it can be inferred that more than 65% ofrespondents are selected the option with promotion ofcelebrity endorsement. So, we can say that company shoulddo more advertisement with the celebrity and always try tomake it more effective by taking the most popular celebrity.There are almost 40% people are not in interested or affectedby the celebrity endorsement so if company wants todecrease the cost of sales promotion than company may takeendorsee who is not so famous celebrity and company canutilize that fund in various other segments.020406080100120140YES NO13664No of respondedYESNO
  83. 83. 836) Have you ever heard about Lux soap?No of respondentYES 185NO 15Table : 11Graph : 7Analysis:-After looking the chart and interpreting the data, we cananalyze that the most of people know the lux because of thegood advertisement of the lux soap done by the companyand also by the celebrity endorsement done by the company.Company introduce new and new variety of soap with newcolour and fragrance so more and more people are attractingto buy the lux product18515No of respondentYESNO
  84. 84. 84Lux creates brand loyalty since leela chitnies become brandambassador in Lux soap so we can say that Lux is the leaderof soap indusrty since the years in India.So, Lux has its own brand value and with effectiveadvertisement, Lux is very popular soap in the market.
  85. 85. 857) Do you remember any of the TV advertisement of Lux Soap?No of respondentYES 185NO 15Table : 12Graph : 8Do you know which celebrity comes in advertisement of Lux?Celebrity No of respondentSRK-KATRINA 47KATRINA 25ASIN-KAJAL 45AISHWARYA 35PRIYANKA 06KAREENA 27Table : 13No of respondentYESNO
  86. 86. 86Graph : 9Analysis:-From this analysis it can be gathered that more than 90%responded are aware about the celebrity endorsing done by thecompany. Company should take the best celebrity so that itsuccessfully attracts the customer and target the particularsegment.Company is always changes its celebrity according to the trendsince the beginning of the brand but from the analysis we can saythat advertisement of “sahrukh khan” and “Katrina kaif” aremore popular than the othersThere are so many different celebrity taken by the Lux soap andfrom the above chart we can see that people are more awareabout the advertise of Shahrukh Khan, Katrina kaif And Kareenakapoorin television advertisement.05101520253035404550No of respondentNo of respondent
  87. 87. 878) Do you think, Lux soap`s sales are higher because of celebrityadvertisement?No of respondentYES 158NO 15MAY BE 12Table : 14Graph : 10Analysis:In above graph we see that most of the respondent says thatthe celebrity advertisement sales of the lux soap are higher.Advertisement of any product helps to the company to increase thesales. Now days there is lots of competition in the market and thecompanies are using the celebrity endorsement that help to thecompany to increase the sales. Customers are seeing theadvertisement and the first come in the mind is celebrity whilepurchasing the product.020406080100120140160YES NO MAY BE15815 12No of respondentYESNOMAY BE
  88. 88. 889) How much you satisfy with the message of Lux advertisement?No of respondentHighly satisfy 30Satisfied 104Modality 36Dissatisfied 15Table : 15Graph : 11Analysis:Lux is the brand who is giving always different ideas andmessages in its advertisement since the 1929 and alwayssucceed to attract the customer by its advertisement styleand celebrity. This is the strategy of the company to promotethe soap and gives variety of the products to the customers.Company is giving messages of different fragrances andcolours to different age group and to the different segmentgroup.301043615No of RespondentHighly satisfySatisfiedModalityDissatisfied
  89. 89. 89Most of the respondents are said that Lux is coming with newand new kind of ideas and messages in broadcast mediaand as well as in print media to attract the customers. Lux isalways success to read the mind of the customers and givingthe products what customers want.
  90. 90. 9010)Celebrity endorsement is an effective tool of buying Lux Soap.Rate this statementNo of RespondentStrongly agree 37Agree 96Disagree 38Strongly disagree 14Table: 16Graph : 12Analysis :From the above data we can find that celebrity endorsement isaffect the customers to purchase the soap and it helps to attractthe 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 toincrease the sale and some are maintaining it.Sometimes when the celebrity changes, some customers shifted toother product or brand and leave the existing product which they020406080100StronglyagreeAgree Disagree StronglydisagreeNo of RespondentStrongly agreeAgreeDisagreeStrongly disagree
  91. 91. 91are currently using as celebrity change. So, company should try tomaintain the same celebrity for the long time period.Company should always try to take the top fame celebrity so thatmaximum number of customers can be attracted and achieve thetarget age group customers.
  92. 92. 9211)According to you, what can be the reason with the companies tochoose celebrities for promoting their products?No Of RespondentFame 88Easy recognition of product 24To increase sales and profit 72To follow competition 16Table : 17Graph : 13Analysis:From the above data we can easily say most of responded areencourage from the celebrity advertisement. From the analysis wecan say that respondent are believe that the main reason forchoosing celebrity for promoting their products is fame and almost30% of the respondent believes that celebrity is helping to thecompany in increasing sales and profit.0102030405060708090100No Of RespondentFameEasy recognition ofproductTo increase sales andprofitTo follow competition
  93. 93. 9312)Would you prefer to change the soap you are buying now if thecelebrity you like endorses a different brand and not the one you arebuying right now?No of respondentYES 120NO 24MAY BE 56Table : 18Graph : 14Analysis:-As we seen in as above graph, most of the respondent are infavor that if their celebrity is change, they easily switch over theother brand which they follow celebrity endorses.While some are says that they may change over the other brandbut 24 respondent say that they stick with the brand and notswitch over the other brand. This helps to find out the long timecustomers of the lux soap and with help of this person can LUXsoap brand increase their customers.1202456No of respondentYESNOMAY BE
  94. 94. 94SUGGESTION―LUX‖ Is Generic Brand Widely Used By all Segment of Society,so company should consider all segment of society whilelaunching its different type of product.Customer like best quality product on any price, so companyshould use latest technology to their products and provide bestquality to the customers.Customer`s behavior always looks for some extra benefit withpurchasing. They demand for affordable price for product andgood schemes with purchasing.Company targets only youth between 15 to 35 years who areconscious of beauty and skin but in current scenario all peopleare more conscious regarding their skin and beauty, socompany should also consider them while manufacturing theproduct.The company has to give some discounts or offers at the time ofspecial occasions i.e., festivals.Visual media is the best for LUX Soap because most of therespondents well aware of TV programs, Ads give along withspecial programs in popular TV channels to increase the sales.and also people are well known about the celebrity which showsin the advertisement of the lux soap.
  95. 95. 95During promotional programmers some discount offers whilepurchasing large quantity of soaps and free gift coupons shall beintroduced to motivate the consumers.Most of the people suggested that they would like to see moreattractive package for LUX Soap though the present packing isgood 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 moviestars – from Madhubala to Madhuri, from Babita to Karishmaand Kareena having endorsed the goodness of Lux overgenerations, However, the communication was slowly seen tobe losing relevance, as consumers were beginning to question ifthe film star actually used the brand. Now Lux is a brand of allsegment of society, so advertising should not contain only―FILMI SITARO KA SABUN‖ but also like ―AAM ADMI KASABUN‖
  96. 96. 96CONCLUSIONFrom the data obtained in the previous chapter, we can come tothe following conclusions:-For housewives, presence of natural ingredients plays animportant role while buying soap. However, although price doesplay an important role in the purchase decision, today more andmore housewives are conscious about skin nourishment. Also,many of them buy the brand mainly because of it has been usedin the family for years together.Lux scored high on all parameters like fragrance, lather,packaging, availability, variety and nourishment of skin. The onlyfactors on which it did not score very high were freshness andprice. Consumers think that soaps like Liril score better onfreshness than Lux. Lux leaves them feeling nourished andcared for, but not fresh for a very long time.According to the respondents, Lux is soap for quality-consciouswomen, especially those belonging to the middle class. It isgenerally used by those who are conscious about theirappearance . It is used by those who respect the brand andhave been loyal to it for years.The consumers share with Lux, a relationship of trust anddependability and of respect. They look up to the brand andliterally worship the brand. Lux, thus, commands the respect andeven love of the consumers.
  97. 97. 97Most consumers are satisfied with Lux and think that it is bestthat they can get.Lux is an emotive brand. The purchase decision is based onemotions. Emphasis is not on the physical attributes of the soap.Demands from the brand are high; people expect that Lux willmake their skin beautiful.
  98. 98. 98Annexure―Celebrity endorsement on buying behavior OfConsumers towards Lux soap‖Name: __________________________________Gender: Male FemaleAge Group:Less than 15 36-4015-20 41-4521-25 46-5026-30 50 & above31-351) What is the frequency of purchase of soap?Weekly QuarterlyBimonthly Semi-annuallyMonthly More____________2) How much soap do you personally require every month?1 32 43) During purchase of soap what influences you purchase?Price/cost Celebrity AdvertisementQuality & Quantity Other (Package/Trial)4) Do you purchase the product because of your favorite celebrity endorsing it?YesNo5) Do you prefer celebrity endorsement asLikeableUnlikeableNeutralNot Important6) How often is your purchase decision based in celebrity advertisement recall?Mostly RarelyOften Never7) Have you ever bought soap because of the promotion of the celebrity endorsers?Yes No
  99. 99. 998) Have you ever heard about Lux soap?Yes No9) Do you remember any of the TV advertisement of Lux Soap?YesNoIf Yes thenDo you know which celebrity comes in advertisement ofLux________________?10) Do you think, Lux soap`s sales are higher because of celebrity advertisement?YesNo May be11) Dose advertisement influence to buy Lux soup?YesNo12) How much you satisfy with the message of Lux advertisement?Highly satisfy SatisfiedModality Dissatisfied13) Do you think that Lux`s brand or soap depend on celebrity endorsing?YesNo14) Celebrity endorsement is an effective tool of buying Lux Soap. Rate thisstatement□ Strongly agree□ Agree□ Disagree□ Strongly disagree15) Do you think celebrity endorsement is an important think in brand promotion?YesNo16) According to you, what can be the reason with the companies to choosecelebrities for promoting their products?FameEasy recognition of productTo increase sales and profitTo follow competition
  100. 100. 10017) Would you prefer to change the soap you are buying now if thecelebrity you like endorses a different brand and not the one you arebuying right now?YesNoMaybe
  101. 101. 101BIBLIOGRAPHYBOOKS REFFERED1. Philip Kotler. Marketing Management-, Publisher:Pearson Education2. Naresh K. Malhotra. Marketing Management3. C.R.kothari. Research Methodology, Publisher: NewAge InternationalWEBSITES REFFERED1. www.unilever.com www.unileverbd.com3.