Lux Soap
Lux Soap
Lux Soap
Research Methodology
3.1 Objective of the study
3. 3.2 Scope of the study 19-21
3.3 Limitation of the study
3.4 Source of data collection
4.
5.
6.
7.
8.
1|Page
CHAPTER 1
INTRODUCTION
2|Page
CHAPTER NO. 1
INTRODUCTION
A study on the consumer perception towards Lux Company with
reference to thane region.
Lux stands for the promise of beauty and glamour as one of India's most trusted personal
care brands. Since its launch in India in the year 1929, Lux has offered a range of soaps in
different colors and world class fragrances. Lux is a beauty soap of film stars. Lux soap was
first launched in 1916 as laundry soap targeted specifically at 'delicates'.
Lever Brothers encouraged women to home launder their clothes without fear of satins and
silks being turned yellow by harsh lyes that were often used in soaps at the time. The flake-
type soap allowed the manufacturer some leeway from lye because it did not need to be
shaped into traditional cake-shaped loaves as other soaps were. The result was a gentler
soap that dissolved more readily and was advertised as suitable for home laundry use. Lux
toilet soap was introduced in 1925 as bathroom soap. The name 'Lux' was chosen as a play
on the word "luxury." Lux has been marketed in several forms, including bar and flake and
liquid (hand wash, shower gel and cream bath soap). Lux in step with the changing trends
and evolving beauty needs of the consumers, offers an exciting range of soaps and Body
Washes with unique elements to make bathing time more pleasurable. One can choose from
arrange of skincare benefits like firming, fairness and moisturizing.
From the 1930s right through to the 1970s, Lux soap colors and packaging were altered
several times to reflect fashion trends. In 1958 five colors made up the range: pink, white,
blue, green and yellow. People enjoyed matching their soap with their bathroom colors.
In the early 1990s, Lux responded to the growing trend away from traditional soap bars by
launching its own range of shower gels, liquid soaps and moisturizing bars. Lux beauty
facial wash, Lux beauty bath and Lux beauty shower were launched in 1992. In 2004, the
entire Lux range was re-launched in the UK to include five shower gels, three bath products
and two new soap bars. 2005 saw the launch of three exciting new variants with dreamy
names such as "Wine & Roses" bath cream, "Glowing Touch" and "Sparkling Morning"
shower gels.
3|Page
1.1 History of Lux soap
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.”
The flaked version of soap called Lux soap. Glycerin was a lucrative by product of the soap
making process, and by the end of 1886, Lever brothers also had a glycerin factory.
Lever opened their small office in New York in 1895.
The company Started selling Sunlight and Lifebuoy but did not doing well until 1916. Lux
soap was first launched in United States in 1916. The Lux trademark was registered in
United States in 1900. Lux soap was launched in India in 1929. The soap’s very first
advertisement featured actress Lecla Chitnis as its brand ambassador. It was popularly
known as ‘the beauty soap of film stars.’ 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. Today, Lux soap is sold in 100
countries and sales achieved 1.0 billion euros in 2005 alone.
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. A wonderful example of this
promotion was the 2005 Mujhme Star Jagaaye campaign featuring
4|Page
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 IIar
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 since2009. 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 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.
5|Page
1.2 Top Soap Brands in India
6|Page
1.4 Most popular Lux soaps
This pretty purple lux soap is enriched with purple lotus and cream which will help you to
get silky smooth skin. It has a very pleasant smell which lingers for a few hours post wash.
The creamy formula and essential oils in this soap keeps the skin well moisturized and does
not dry out the skin post wash. The soap lathers well and washes away easily without
leaving any soapy residue behind.
7|Page
3. Lux creamy white soap
Refresh and replenish your skin after a long day’s work with lux creamy white. This soap is
enriched with ultra caring Swiss moisturizers which makes the bar so creamy that it feels
like dallop of cream in your hand. The soap produces a luxurious lather and glides smoothly
on the skin to make it smooth and moisturized.
4. Lux international soap
This beauty soap will surely make you feel like an international star and will get your
innumerable compliments on your lustrous and healthy skin. This soap reaches till the
layers of the skin to provide optimum hydration and makes the skin soft, smooth and
supple. The soap maintains the natural moisture and pH value of the skin to keep it healthy
and radiant from within.
8|Page
5. Lux sandal and Cream soap
Lux sandal and cream soap comes with the goodness of milk cream and sandal Ubtan. The
soap removes the dirt and impurities from the skin to make it healthy and purified. Regular
application of this soap also lightens and brightens the skin tone. Its unique curvaceous
shape helps you to have a better grip while bathing. It has a pleasant smell of sandal which
lingers for a while post wash.
9|Page
This soap is infused with soothing strawberry essential oils and Swiss cream which provides
moisturization and hydration to skin. The soap smells like strawberries and produces a rich,
creamy lather to makes the skin noticeably softer and smoother. Unlike regular bathing
soap, this one does not dry out the skin or make it stretchy post wash. The skin feels
considerably smoother and softer than before. The strawberry in this soap provides
antioxidants to the skin which reduces fine lines and wrinkles.
This soap contains peach and cream as its active ingredients and is formulated for dry
skinned beauties. Peach is well known for its moisturizing properties and makes dry skin
smoother and softer than before. It has a mild and feminine scent and lathers extremely well
to clean the skin of its dirt and impurities. The soap lathers luxuriously to cleanse the skin
and washes away easily.
1.5 Consumer perception and Behavior
Consumer is the king of any business activity. It is very important for any marketing person
to know how the consumer perceives different things and how he behaves accordingly. So
consumer research is imperative for the success of any marketing effort. Hence an attempt
is made in the present Chapter to study the behavior and perception of consumer. First of all
perception is defined as the process of receiving, selecting organizing, interpreting,
checking and reacting to sensory stimuli or data.
Consumer behavior is defined as "behavior that consumer display in searching for
purchasing, using evaluating and disposing of product and services that they expect will
satisfy their needs".
10 | P a g e
The study of consumer behavior is the study of how the individuals make decision to spend
their available resources like time, money, effort, etc, on consumption related items. It
includes the study of what they buy, when they buy it, why they buy it, where they buy it,
how often they buy it and often use it.
As marketer, it is important to recognize why and how individuals make their consumption
decision, so that we make better strategic marketing decision. If marketer understand
consumer behavior they are able to predict how consumer are likely to react to various
information and environmental cues and are able to shape their marketing strategies
accordingly. With out doubt, marketers who understand consumer behavior will have great
competitive edge in the market.
Consumer behavior is relatively new field of study in the mid-to-late 1960's with no body of
research of its own, the discipline borrowed heavily from concepts developed in other
scientific disciplines, such as Psychology (study of individuals), Sociology (Study of
groups), Social psychology (study of how an individual operates in groups), Anthropology
(the influence of society on individuals) and Economies.
The initial thrust of consumer behavior was from a managerial prospective, marketing
manager wanted to know the specific causes of consumer behavior. They also wanted to
know how people receive store and use consumption related information so that they could
design marketing strategies to influence consumption decision. They regard consumer
behavior disciplines as an applied marketing science.
There are number of reasons why the study of consumer behavior was developed as a
separate marketing discipline. Marketers had long noted that consumer did not act or react
as marketing theory would suggest. The size of the consumer market in every country is
vast and constantly expanding. Large amount were being spent on goods and services by
millions of peoples. Consumer preference were changing and becoming highly diversified.
Even in industrial markets, where needs for goods and services were always more
homogeneous than in consumer markets, buyers were exhibiting diversified preference and
less predictable purchase behavior. As marketing people began to study the buying behavior
of consumer, they soon realized that despite a sometimes "mo too" approach to fact and
fashions, many consumer rebelled at using the identical product everyone else used. Instead
they preferred differentiated product that they felt reflected their own special new
personalities and life styles. So by studying consumer behavior marketing people will be
able to needs of different groups of customers more efficiently
1.6 Consumer retention and Satisfaction
Customer satisfaction is a term frequently used in marketing, is a measure of how products
and services supplied by a company meet or surpass customer expectation. Customer
satisfaction is defined as “the number of customers or percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals”. In a survey of nearly 200 senior marketing managers, 71 percent
responded that they found a customer satisfaction metric very useful in managing and
monitoring their businesses.
The importance ‘of measuring customer satisfaction is discussed below: * It is seen as a key
performance indicator within business and is often part of a Balanced Scorecard. In a
competitive marketplace where businesses compete for customers, customer satisfaction is
seen as a key differentiator and increasingly has become a key element of business strategy.
Within organizations, customer satisfaction ratings can have powerful effects.
11 | P a g e
They focus employees on the importance of fulfilling customers’ expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales and
profitability. These metrics quantify an important dynamic. When a brand has loyal
customers, it gains positive word-of-mouth marketing, which is both free and highly
effective. Therefore, it is essential for businesses to effectively manage customer
satisfaction. To be able do this, firms need reliable and representative measures of
satisfaction.* In researching satisfaction, firms generally ask customers whether their
product or service has met or exceeded expectations.
Thus, expectations are a key factor behind satisfaction. When customers have high
expectations and the reality falls short, they will be disappointed and will likely rate their
experience as less than satisfying. For this reason, a luxury resort, for example, might
receive a lower satisfaction rating than a budget motel-even though its facilities and service
would be deemed superior in ‘absolute’ terms.
Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty. Customer satisfaction data are among the most frequently collected indicators of
market perceptions. * Within organizations, the collection, analysis and dissemination of
these data send a message about the importance of tending to customers and ensuring that
they have a positive experience with the company’s goods and services.
Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will
make further purchases in the future. Much research has focused on the relationship
between customer satisfaction and retention.
Behavior is a mirror in which everyone shows his or her images. Behavior is the process of
responding to stimuli. Consumer behavior is to do with the activities of individual in
obtaining and using the goods and services; it encompasses the decision making process
that precedes and determines purchases.
Professor Walter C.G. and Professor Paul G.W, “the process whereby individuals decide
whether, what, when, where, how and from whom to purchase goods and services”.
Professor Bearden and Associates. Consumer behavior is “the mental and emotional
processes and the physical activities of people activities of people who purchases and use
goods and services to satisfy particular needs and wants”
12 | P a g e
comprehensive and. hence, largely accepted. In simple words, the buying process is made
up of three stages namely, "input-process'-'output'.
STEPS IN BUYING PROCESS:
The consumer buying process is a five steps activity. These five steps are
1. Need Recognition.
2. Information Search.
3. Evaluation and Intention.
4. Purchases decision and
5. Post purchases reaction.
1. Need recognition:
The starting point of buying process is the perceived want or a desire. Need recognition is
the awareness of the want or a consumption problem without whose satisfaction the
consumer feels restless and tension-charged. That is, he or she feels that a desire or want
has arisen which has to be satisfied. Needs or wants arise either due to internal stimulus or
external stimulus.
2. Information search:
A need aroused and recognized can be satisfied only when the product or services is
available. Consumer interest is indicated in the consumer's willingness to seek further about
product or satisfaction, he searches relevant information. Consumer has many alternative
sources of information to tap such as friends, relatives, neighbors, salesman, dealers,
advertisements, packages and above all consumer organizations.
4. Purchase decision:
It is the positive intention of the consumer that leads to a purchases decision. Decision to
purchase implies consumer commitment for a product or a service. Practically, it is the last
stage in the buying process because, it completes the exchanges process. Such a purchase
may be a trial or adoption. Trial purchases are done when the consumer buys the products
or service for the first time. This occurs mostly in case of consumer non-durables. In case of
consumer durables, it is purchase adoption than trial because, consumer durable items
cannot be purchased on trial basis.
13 | P a g e
5. Post-purchase reaction:
Post-purchase behavior or reaction stands for the behavior of a consumer after a
commitment to product has been made. This post- purchase experience may be a set of
positive or negative feelings. Positive feelings or satisfaction will result in repeat sales or at
least recommending the products or services to other; on the other hand, dis-satisfaction or
negative feelings creating anxiety and doubts. This stage of mind is called as 'cognitive
dissonance'.
To reduce it by going in for other alternative products or service in search of highest level
of satisfaction.
A word of caution, at this level, is essential. The stages mentioned above are only a graphic
description of a buying process. There is no specific patter in which every adoption process
must fit in. As consumer is unique creature, one may be quick; another may be slow to
reach each stage or stages. It is consumer personality-speed-caution-difference-wavering-
shyness-risk taking- jubilant-serious all follow these stages to make purchase.
1. PSYCHOLOGICAL DETERMINANTS:
Psychological have also provided certain clues as to why a consumer behaves this way or
that way. The major psychological determinants internal to the individual are-motivation-
perception learning-attitude and personality. Here is an attempt to explain and to know their
implications in so far as consumer behavior is concerned.
A. Motivation:
Motivation is the way of behavior. It is an intervening variable between stimulus and
response and a governing force of consumer behavior”, Motivation refers to the drives,
urges, wishes or desires which initiate the Sequence of events known as behavior.”
B. Perception:
14 | P a g e
Marketing management is concerned with the understating of the process of perception
because; perception because, perception leads to thought and thought leads to action.
Perception is the process whereby stimuli are received and interpreted by the individual and
translated into a response.
C. Learning:
In behavioral science, learning means any change in behavior which comes about as a result
of experience. Learning is the process of acquiring knowledge. Consumer behavior is a
process of learning because, it is modified according to the customer’s past experience and
the objective he or she has set.
D. Attitude:
The concept of attitude occupies a central position a consumer, behavior studies in
particular and social psychological in general because; attitude measurements help in
understanding and prediction way when presented with a given stimulus and the attitude
towards people, place, products and things can be positive and negative or favorable or
unfavorable.
E. Personality:
Very often, the word ‘personality is used to refer to the capacity of a person for popularity,
friendliness or charisma. However, in strict sense, it refers to the essential difference
between one individual and another. Therefore, personality consists of a mannerisms, habit
and actions that makes a person an individual and thereby serve to make hem distinct from
everyone else.
The personality of an individual is either expressed in terms of traits or type. The
personality traits may be-aggressiveness-honesty-anxiety-independence- sociability and so
on.
1.9 Summary
15 | P a g e
used by the company to market LUX. The product is available in six different fragrances
under three different sizes. Since the demand for beauty soap market is to a great extent
oligopolistic, variations in price lead to price war which can eventually break down the
company’s market share. Thus Unilever cannot provide a better price than its competitors.
But the price is affordable by most of the people. Unilever India has outsourced its
distribution channels to third party distributors which allow them to distribute LUX in
massive bulks amounting to around ten million pieces. It undertakes the largest promotional
activities in the beauty soap industry.
The beauty soap industry has a few major producers of which Unilever holds market share
of slightly less than 50%. Other competing brands like Tibbet, Aromatic and Keya have
started to have a strong consumer base, but LUX.'s product features distribution and
promotional activities have created high brand loyalty for which it is still the market leader.
Unilever, with the aid of its heavy promotional activities, has been able to penetrate the
market. But the other producers in the industry are posing a threat towards Unilever's
market share as they have moved towards the rural masses of the population. Therefore,
Unilever India should undertake further steps such as moving towards the rural and/or
poorer.
16 | P a g e
CHAPTER 2
LITERATURE REVIEW
17 | P a g e
CHAPTER NO. 2
LITERATURE REVIEW
Herrmann et al. (1992), price perceptions directly influence satisfaction judgments: “The
research demonstrated the influence of perceived price fairness on satisfaction judgments
empirically.”
According to Xia et al. (2004), price fairness refers to consumers’ assessments of whether
a seller’s price is reasonable, acceptable or justifiable. In a separate study on factors
affecting customer satisfaction, the authors found that “charging a fair price helps to
develop customer satisfaction and loyalty.”
Herrmann et al. (2007) told that customer satisfaction is directly influenced by price
perceptions, albeit indirectly, through the perception of price fairness. The price fairness
itself and the way it is fixed and offered have a great impact on satisfaction.
Kotler (2000) defined satisfaction as: “a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived performance (or outcome) in relation to his
or her expectations”
Hokanson (1995), these factors include friendly employees, courteous employees,
knowledgeable employees, helpful employees, accuracy of billing, billing timeliness,
competitive pricing, service quality, good value, billing clarity and quick service.
18 | P a g e
CHAPTER 3
RESEARCH
METHODOLOGY
19 | P a g e
CHAPTER NO. 3
RESEARCH METHODOLOGY
3.1 Objective of the study:-
i. To identify the consumers satisfaction level of the consumers.
ii. To find out the effect of Lux soap on human health due to persistent use.
iii. To analyze the knowledge of the customers about the product.
iv. To identify the buyers opinion.
v. To analyze the data interpretation by the HUL.
vi. To generate and secure customer awareness.
vii. To know various marketing mix that influence customer segmentation.
20 | P a g e
3.4 Source of data collection:-
Both primary data and secondary data were collected for doing research. The methods of
data collection used were.
PRIMARY DATA
The information collected under “primary data” is mainly based on personal discussions
with the customers of coup area. A structured questionnaire is used to collect the primary
data.
SECONDARY DATA
The secondary data was obtained through the dealers, sales record, and internet also from
various books and journals.
21 | P a g e