1

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 ADMINISTRATION

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 – 118070592067 EN. no- 118070592033

SAL INSTITUTE OF MANAGEMENT

(GUJARAT TECHNOLOGICAL UNIVERSITY)

2

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.

SAL INSTITUTE OF MANAGEMENT

Dr. Ritika Jain

Asst. Professor,

SAL Institute of Management

Sign : __________________

Dr. Viral Bhatt

Principal / Director,

SAL Institute of Management

Sign : __________________

3

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

Place: Ahmedabad

Date:

4

PREFACE

Master of business administration 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 advertisement 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.

5

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

6

Table of Content

Ch.

No.

PARTICULARS PAGE

No.

1.

INDUSTRY PROFILE 2

1.1 About The Soap Industry 3

1.2 Future of the soap Industry 6

1.3 About the Business 6

1.4 Market Scenario 7

2 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

7

5.7 Research Design 28

5.8 Data Collection 28

5.9 Research Summary 30

6 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 Advertisement 52

9.12 Public Relations 54

10 SWOT ANALUSIS OF LUX SOAP 56

8

Table No Name of the Table Page No

01 INDIAN SOAP INDUSTRY 04

02 MARKET SHARE 06

03 SEGMENTATION OF SOAPS 09

04 BRANDS OF THE HUL 14

06-18 DATA ANALYSIS 66-84

LIST OF GRAPH

Graph

No

Name of the Graph Page No

01 MARKET SHARE 07

02-14 DATA ANALYSIS 66-84

11 POTER`S 5 FORCE OF LUX SOAP 61

12 DATA ANALYSIS 65

13 SUGESSION 84

14 CONCLUSION 86

15 ANNEXURE 90

16 BIBLIOGRAPHY 93

LIST OF TABLES

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, France, 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 terms. 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 upper-

end 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

Companies MARKET SHARES

HUL 60

TATA OIL MILLS 13

ITC 07

GODREJ SOAPS 05

NIRMA 08

OTHERS 07

Table : 2

15

Graph : 1

1.4) MARKET SCENARIO

Of the nearly 7 lakhs tons toilet soap, market for 500 tons comes

from the premium 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.

6013

7

5 8 7

MARKET SHARES

HUL

TATA OIL MILLS

ITC

GODREJ SOAPS

NIRMA

OTHERS

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 Premium

Godrej no 1 Popular

Marvel Popular

HUL Lux(international) Premium

Dove Premium

Face washes,

Shower gel Premium

Liril,pears, Premium

Jai,breeze Popular

Lifebuoy(plus,

gold,family,liquid) Carbolic

P&G Camay Premium

WIPRO Santoor,baby soap Premium

Wipro shikakai Popular

KS&DL My sore sandal soap Premium

My sore sandal gold Premium

HENKET-SPIC Margo Popular

COLGATE-

PALMOLIVE

Palmolive natural

Premium

Reckitt Benckiser Dettol Carbolic

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 supports 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 support

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:

Table : 4

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

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

advertisement 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 advertised 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 advertisement

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

advertisements 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‖ advertisement 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 discusses the use of market

and consumer research at Lever/Unilever 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 repos i t ion i ts

in te rnat ional soap brand Lux.

The article also shows that marketing's cultural

practices often predate its 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:‗ ‗ Lux won‘ t

shr ink woolens ‘ ‘ ) shou ld be widened so that

consumers saw Lux as product that could be

used fo r a l l f ine fabr ics .

I ts adver t i sements of ten fo l lowed an aggress ive

market expansion strategy for their products; by suggesting

a wider framework of possible uses for a g iven product

both the customer base and the usage rate o f a

product cou ld be 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

advertisements 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.

To extract consumers opinion regarding various in

advertisement 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

35

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, q = 0.4 ( 1-p )

n = Z2 * p*q

E2

= (2.58)2 * 0.60 * 0.40

(0.1)2

= 6.6564 * 0.24

0.01

= 159.75 customers

Hence, we took a sample size of 200 consumers.

36

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 advertisement effects of

soft drinks products. We have analyzed how people of various age

factors respond to different advertising of their perception towards

soft drinks.

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. Questionnaire Method

II. Direct Interview Method and

III. Observation Method

37

The 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

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.

38

5.9) RESEARCH SUMMARY

Primary Objective “Effects of celebrity

endorsement on Consumer

Buying Behavior toward Lux

soup”

Research Design

Descriptive Research Design

Research

Approach

Survey Research i.e. Direct

Survey

Data Source

Primary data source

:Questionnaire

Secondary data source :

Company website

Sampling Area

Ahmedabad (western)

Sample Size

200 responders

Sampling method

Convenient sampling method

Research Instrument

Questionnaire

Contact Method

Personal Interview

Table : 5

39

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.

Celebrity controversy risk.

Celebrity popularity.

Celebrity availability.

Celebrity physical attractiveness.

Celebrity credibility.

Celebrity prior endorsements.

Whether celebrity is a brand user.

Celebrity profession.

40

Chapter - 6

MARKET

MIX

OF

LUX SOAP

41

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

42

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 designing.

43

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.

44

Chapter - 7

4 P`S OF

LUX SOAP

45

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 account 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,

services, experiences, events, person, place, properties,

organization, information and ideas.

46

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

terms 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

product all over Bangladesh to a huge number of retailers. Even

though LUX targets the urban and sub urban middle and upper

47

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 advertisements. 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.

48

Chapter - 8

PLC OF

LUX SOAP

49

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

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.

50

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 support

service may be added.

Pricing is maintained as the firm enjoys increasing demand with

little competition.

Distribution channel are added as demand increasing and

customers accept the product.

Promotion is aimed at a broader audience.

51

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:

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.

52

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

Advertising In the initial stages they allocate more

advertisement 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.

53

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 advertisement

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: ―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‖.

54

Chapter - 9

IMC TOOLS OF

LUX SOAP

55

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

advertisement which flagged off the Lux wagon. She gave way to a

galaxy of stars which includes Madhubala, Nargis, Meena Kumari,

Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu,

Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi,

Aishwarya Rai and Kareena Kapoor. The last frontier for most

actors aspiring to stardom is becoming a Lux ambassador. The

brand has outlasted many soaps. From the beginning, Lux became

a household name across the country.

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.

56

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.

57

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.

58

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.

59

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.

60

9.11) Advertisements:

The message that the product reflects in its advertisements 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 advertisement featuring an Indian

actress.

Aishwarya Rai in a print advertisement

Featuring Lux international

61

USP or the common thread through all the advertisements is

the Presence of Movie Stars through the ages.

The product has been positioned on the basis of 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 user into a fantasy world of icons, film

stars and fairy lands.

Change in communication strategy

However, the communication was slowly seen to be losing

relevance, as consumers were beginning to question if the film star

actually used the brand. In addition to this, several competitive

beauty soap brands had begun advertising using similar methods

of communication. In this context, the global brand team for Lux

developed a new communication strategy. This strategy – bring

out the star in you – for the first time moved the brand away from

the long-running film star route.

62

Thus, for the first time the film star was used as a communication

device and not as the main feature of the advertisement. The

move away from the film star and her fantasy world to a regular

Lux user, with the focus on the protagonist‗s star quality, is a

change from the norms set by Lux advertising in the past.

With the new communication strategy, the film star is used purely

as a communication device to portray star quality in every Lux

user. This 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 passing

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-users. 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.

63

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 sub-

distributor for a small area. The company is directly linked with the

main distributor and the sub-distributor has no such direct contact

with the company. The company provides the Life Buoy inventory

to the main distributor that is further dispatched to retailers and

sub-distributors.

64

Chapter -10

SWOT

ANALYSIS OF

LUX SOAP

65

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

66

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 advertisements 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 advertisements like the recent one with Shah

Rukh Khan resulted in controversial interpretations of the

message of the advertisement and lead to some loss of

focus Stock out problems - replenishment time is high in

semi-urban/rural areas.

67

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!

68

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.

69

Chapter -11

Porter’s 5

Forces

of

Lux soap

70

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

industries so for that competitors are producing wide variety of

71

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

72

price of premium 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.

73

Chapter -12

Data Analysis

&

Interpretation

74

1) Age Group:

Age Group No. of Respondents

Less than 15 00

15-20 48

21-25 56

26-30 41

31-35 12

36-40 05

41-45 07

46-50 13

50 & above 18

Table : 6

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.

0

10

20

30

40

50

60

Less than 15

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

No. of Respondents

75

So, from the above analysis we can find that the users 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.

Company should launch products for the people who are

above 40 years and also try to capture each age‘s segments.

76

2) What is the frequency of purchase of soap?

Time Period No of responded

Weekly 10

Monthly 88

Bimonthly 8

Quarterly 45

Semi annually 48

More 1

Table : 7

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.

10

45

8

48

88

1 Sales

Weekly

Quarterly

Bimonthly

Semi annually

Monthly

More

77

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.

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.

78

3) During purchase of soap what influences you purchase?

Sources Respondent

Price/ cost 42

Celebrity Advertisement 60

Quality/Quantity 98

Other -

Table : 8

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.

42

60

98

Respondent

Price/ cost

Celebrity

Advertisement

Quality/Quantity

79

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.

80

4) What do you feel about celebrity endorsement?

Classification No of Responds

Likeable 125

Unlikeable 24

Neutral 43

Not Important 8

Table : 9

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 advertisement

with the different celebrities.

0

20

40

60

80

100

120

140

Likeable Unlikeable Neutral Not Important

125

24

43

8

No of Responds

Likeable

Unlikeable

Neutral

Not Important

81

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.

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.

82

5) Have you ever bought soap because of the promotion of the

celebrity endorsers?

No of responded

YES 136

NO 64

Table : 10

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 advertisement 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.

0

20

40

60

80

100

120

140

YES NO

136

64

No of responded

YES

NO

83

6) Have you ever heard about Lux soap?

No of respondent

YES 185

NO 15

Table : 11

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 advertisement 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

185

15

No of respondent

YES

NO

84

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

advertisement, Lux is very popular soap in the market.

85

7) Do you remember any of the TV advertisement of Lux Soap?

No of respondent

YES 185

NO 15

Table : 12

Graph : 8

Do you know which celebrity comes in advertisement of Lux?

Celebrity No of respondent

SRK-KATRINA 47

KATRINA 25

ASIN-KAJAL 45

AISHWARYA 35

PRIYANKA 06

KAREENA 27

Table : 13

No of respondent

YES

NO

86

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 advertisement 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 advertise of Shahrukh Khan, Katrina kaif And Kareena

kapoorin television advertisement.

05

101520253035404550

No of respondent

No of respondent

87

8) Do you think, Lux soap`s sales are higher because of celebrity

advertisement?

No of respondent

YES 158

NO 15

MAY BE 12

Table : 14

Graph : 10

Analysis:

In above graph we see that most of the respondent says that

the celebrity advertisement sales of the lux soap are higher.

Advertisement 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

advertisement and the first come in the mind is celebrity while

purchasing the product.

0

20

40

60

80

100

120

140

160

YES NO MAY BE

158

15 12

No of respondent

YES

NO

MAY BE

88

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

No of respondent

Highly satisfy 30

Satisfied 104

Modality 36

Dissatisfied 15

Table : 15

Graph : 11

Analysis:

Lux is the brand who is giving always different ideas and

messages in its advertisement since the 1929 and always

succeed to attract the customer by its advertisement 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.

30

104

36

15

No of Respondent

Highly satisfy

Satisfied

Modality

Dissatisfied

89

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.

90

10) Celebrity endorsement is an effective tool of buying Lux Soap.

Rate this statement

No of Respondent

Strongly agree 37

Agree 96

Disagree 38

Strongly disagree 14

Table: 16

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

0

20

40

60

80

100

Strongly agree

Agree Disagree Strongly disagree

No of Respondent

Strongly agree

Agree

Disagree

Strongly disagree

91

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.

92

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

Graph : 13

Analysis:

From the above data we can easily say most of responded are

encourage from the celebrity advertisement. 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.

0102030405060708090

100

No Of Respondent

Fame

Easy recognition of product

To increase sales and profit

To follow competition

93

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

YES 120

NO 24

MAY BE 56

Table : 18

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.

12024

56

No of respondent

YES

NO

MAY BE

94

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 advertisement of the lux soap.

95

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 ADMI KA

SABUN‖

96

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.

97

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.

98

Annexure

“Celebrity endorsement on buying behavior Of

Consumers towards Lux soap”

Name: __________________________________

Gender: Male Female

Age Group:

Less than 15 36-40

15-20 41-45

21-25 46-50

26-30 50 & above

31-35

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 Celebrity Advertisement

Quality & Quantity 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 advertisement recall?

Mostly Rarely

Often Never

7) Have you ever bought soap because of the promotion of the celebrity endorsers?

Yes No

99

8) Have you ever heard about Lux soap?

Yes No

9) Do you remember any of the TV advertisement of Lux Soap?

Yes

No

If Yes then

Do you know which celebrity comes in advertisement of

Lux________________?

10) Do you think, Lux soap`s sales are higher because of celebrity advertisement?

Yes

No May be

11) Dose advertisement influence to buy Lux soup?

Yes

No

12) How much you satisfy with the message of Lux advertisement?

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

To follow competition

100

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

101

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