Lux report

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
Ahmedabad.
Submitted by
HARSH PATEL and SAHIL SHAH
En. No – 118070592067 EN. no- 118070592033
SAL INSTITUTE OF MANAGEMENT

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(GUJARAT TECHNOLOGICAL UNIVERSITY)
Institute‘s Certificate
Certified that this Comprehensive Project Report Titled “The Impact of
celebrity endorsement Toward the Lux soap” is the bonafide
work of Mr. HARSH PATEL (118070592067) & Mr. SAHIL SHAH
(118070592033) ,Who carried out the research under my supervision. I also
certify further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any
other candidate.
SAL INSTITUTE OF MANAGEMENT
Dr. Ritika Jain
Asst. Professor,
Sign : __________________
Dr. Viral Bhatt
Principal / Director,
Sign : __________________

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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

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Place: Ahmedabad
Date:
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.

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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

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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

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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

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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

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

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Chapter -1
INDUSTRY
PROFILE

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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.

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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.

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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.

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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

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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

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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.

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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

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Chapter - 2
COMPANY
PROFILE

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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

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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.

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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

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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

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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.

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Chapter - 3
HISTORY
OF
LUX SOAP

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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.

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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.

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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.

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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)

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Chapter -4
LITERATURE
REVIEW

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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 reposition its
international 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.‘‘

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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
shrink woolens‘‘) should be widened so that
consumers saw Lux as product that could be
used for all fine fabrics.
Its advertisements often followed an aggressive
market expansion strategy for their products; by suggesting
a wider framework of possible uses for a given product
both the customer base and the usage rate of a
product could 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.

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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.

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Chapter - 5
Research
Objectives

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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.

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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

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III. Observation Method
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.

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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

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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.
0
5
10
15
20
25
30
35
40
45
50
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.
0
10
20
30
40
50
60
70
80
90
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.
120
24
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

Lux report

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