1. PROJECT REPORT
LUX
INTRODUCTION
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”.
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
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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 every one 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.
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INDUSTRY PROFILE
ABOUT THE SOAP INDUSTRY:
ORIGIN OF 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.
SOAP INDUSTRY IN INDIA:
Soap industry in India began with M/S Godrej setting up their
manufacturing unit in 1918 at Mumbai and M/S government soap factory in
Bangalore. The industry stagnated due to the in informed price control. The
industry soon recovered and experienced sharp ups wing during 1974.
PROBLEMS OF SOAP INDUSTRY:
Soap industry faces some problems in the case of raw materials. The
major ingredients like soap ash, linear alkyl, benzene and sodium Tripoli
phosphate poses number of series in terms of availability.
The demand supply gap to vegetable oil is 1.5-2 lakhs tons and is met
through imports. In recent months, price of caustic soda has shown a rising
trend. The contents of soda ash in the cheaper varieties of soap are quite high.
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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
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.
ABOUT THE BUSINESS:
Major players & market shares:
Hindustan Unilever ltd., (HUL) is the leader for the toilet soap industry in
India with a 60% share in the market. Other major players from LUX is facing
competition are Godrej soaps, Wipro, Procter & Gamble, Colgate Palmolive,
Johnson & Johnson etc.,
Their market shares is as follows
MARKET
COMPANIES
SHARES
HUL 60
TATA OIL
MILLS
13
DOVE 07
GODREJ
SOAPS
05
NIRMA 08
OTHERS 07
MARKET SCENARIO
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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.
In recent times, the price of caustic soda have shows a using trend. This
contents of soda ash is the cheaper varieties of soap in quite higher linear alkyls
benzene, being an important input in manufacture of soaps the future of this
soap industry is very much dependent on this input. It is capital incentives
during the around in 700-800 cores.
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
Lifebuoy(plus,
gold,family,liquid) Carbolic
HUL Lux(international, Premium
Dove Premium
Face washes,
Shower gel) Premium
Liril,pears, Premium
Jai,breeze Popular
P&G Camay Premium
WIPRO Santoor,baby soft Premium
Wipro shikakai Popular
KS&DL My sore sandal soap Premium
My sore sandal gold Premium
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HENKET-SPIC Margo Popular
COLGATE- Palmolive natural Premium
PALMOLIVE
COMPANY PROFILE
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 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.
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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.
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:
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 everyday. 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.
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.
HOT POTATOES
Scientists at H.U.L’s research centers plant tissue culture lab have been
successful in creating micro tubers of potato. Farmers can now plant a full
hectare with just 50 kg of this new potato micro tuber, as against a typical
requirement of 2000 kg of conventional seeds.
BRANDS OF H.U.L
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LUX
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 about 110 brands, most of which have become
house hold names in the country.
Some of the HUL Brands are:
BEVERAGES BROOKEBOND SKINCARE
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
DEODRANTS FABRIC WASH
Axe Surf
Pond’s Rin
Rexona Wheel
COLOUR COSMETICS PERSONAL WASH
Lakme Dove
ANNAPURNA ATTA Liril
KWALITY ICE CREAMS Lux
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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 nation wide manufacturing base, with each factory
peopled by teams of production, engineering, quality assurance, commercial
and personal managers.
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OBJECTIVES
Objectives:
• To find out factor that influence a person to buy a particular brand of
soap,
• To find out the opinion about the LUX.
• To evaluate the effectiveness of advertisement of LUX.
• To know the awareness of the people towards different brands of toilet
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VALUES OF RESEARCH:
Research is not a substitute for creative, but research provides fact upon
which creativity can go to work. No research finding really tells the marketer
department exactly what to do. But what the finding do provide is information
that can be helpful in making a judgment or decision about the promotional
activities or to improve the image of the company or positioning of product.
“Results of research can some time be more helpful in indicating
what not to do than to do”.
So research methodology is adopted to study the consumer
behavior.
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LIMITATIONS:
The study is limited to Kurnool district only.
The data is collected from questionnaire nature i.e., views, opinions,
perception etc., may be changed time. So it is not convenient for longer
period.
The time period given for the study is one month. So the study is
undertaken only at Kurnool district, by keeping in view of time period
allotted.
On few occasion’s consumer may be biased in giving information.
Samples size is restricted to 100 only due to paucity of time.
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RESEARCH METHODOLOGY
Need for the study:
I have undertaken this study because the I wants to know the reasons to
buy different brands of soaps and particularly consumer opinion about LUX
Soap, the factors affecting while purchasing a FMGC(FAST MOVING
CONSUMER GOODS)i.e., toilet soaps.
Research Methodology:
The study conducted was descriptive in nature. Selection measurement
technique was done after simultaneous consideration of other characteristics of
research design.
Descriptive Research:
The descriptive research was carried out using questionnaire was
considered as appropriate method.
This section explains how the data is collected i.e., from primary and
secondary sources. It explains what methods used for collection of data and
what the sample plan is. The preparation of this report involves several phases
as follows.
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Data collection:
Tools of data collection are as follows.
1. Primary data.
2. Secondary data.
1. Primary Data:
Based on the objectives of the study, research approach, questionnaire
development and sampling has been designed.Visiting the consumers in
Kurnool District.
Questionnaire Development:
A questionnaire is used to collect the data. It is the developed after a thorough
discussion with Dealer and Project guide by keeping view of the objectives of
the study.
Sampling Techniques:
Data collected on the basis of convenient random sampling
technique.
Sampling Unit:
Since the study for perception of consumer were contracted while
gathering the information.
Sample Size:
It is limited to 100 consumers.
2. Secondary Data:
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The secondary data is collected from Company records. Many web sites.
Analyzing the data:
The data are tabulated according to the respondents responses
using percentages, aggregated scores, which are essential for study, which
helps in proper analysis of data and also graphs are used in the analysis for
easy and quick interpretation.
INTRODUCTION
Behavior is a mirror in which every one 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.
STANDARD DEFINATIONS
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”
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THE CONSUMER BUYING PROCESS:
Understanding consumer behavior makes it mandatory to first understand the
buying process. Goods many models of consumer behavior portraying buying
process have been developed during the last three decades. These models treat
consumer as a decision-maker. Among all these models, the one given by Mr.
Howard and J.Sheth in their title THE THEORY OF BUYER BEHAVIOR is
having sophisticated model which is the most 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.
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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.
3. Evaluation and Intension:
It is consumer’s deep interest in the product or services that paves the way for
evaluation and intention. The evaluation stages is the stages of mental trial of
the product or a services based on the accumulated information and judges the
relative worth of alternatives products or services from the angle of want
satisfying potential. The final purchases depend on the relative strength of the
positive intention to buy.
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.
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’. He tries to
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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 pattern
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 ‘why’ 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:
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 where by 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:
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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 every one
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.
PRODUCT PROFILE
Lux is a global brand developed by Unilever. The range of products includes beauty
soaps, shower gels, bath additives, hair shampoos and conditioners. Lux started as
“Sunlight Flakes” laundry soap in 1899.
In 1924, it became the first mass market toilet soap in the world. It is noted as a brand
that pioneered female celebrity endorsements.
As of 2005, Lux revenue is at 1.0 billion euros, with market shares spread out to more
than 100 countries across the globe.
Today, Lux is the market leader in several countries including Brazil, India, Thailand
and South Africa.
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One of the most popular beauty products India in terms of soaps and body washes
is LUX soap. For years, LUX has been one of the India top soaps that offer a way to
gain smooth and fair looking skin without worrying too much on how old the user is.
LUX soap came from one of the biggest corporation in the India today, Unilever.
LUX is a personal care brand owned by Unilever. LUX is primarily made from
synthetic surfactants, as well as some vegetable oil based soap ingredients, such as
sodium palm kernelate. LUX is formulated to be pH neutral, with a pH that is
usually between 6.5 and 7.5.
LUX products are manufactured in the Netherlands, Untied States,
Germany, Ireland and Brazil. The LUX trademark and brand name is currently
owned by Unilever. LUX’s logo is a silhouette profile of a dove, the color of
which often varies.
LUX’s products include: antiperspirants/deodorants, body washes, beauty
bars, lotions/moisturizers, hair care and facial care products.
In the US, LUX bar soap is currently produced in the cool moisture,
exfoliating, sensitive skin unscented, nutrium nourishing, white, pink, calming
night, pro-age, and energy glow versions.
LUX soap was launched in the United States in 1957. , years after Unilever
acquired soap factory De Duif (Dutch: The Dove) in The Netherlands, from
which the English brand name LUX is derived.
LUX has been positioned throughout its history without referring to it as
“soap”, but as a “’beauty bar” with one-fourth cleansing cream; they stress its
moisturizing of skin while washing in contrast to the drying effects of regular
soaps(which their advertising calls simply “soap”).
Advertisements reinforced the message by showing the cream being poured into
the beauty bar. In 1979, the phrase “cleansing cream” was replaced with
“moisturizer cream”. In 1979, a Pennsylvania dermatologist showed that LUX
dried and irritated skin significantly less than ordinary soaps. As a result of the
study, Unilever started aggressive marketing and won more than 24% of the
market by 2003.
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LUX has grown from a US-only soap bar into one of Unilever’s biggest gl
brand, and #3 in the Anglo-Dutch company’s portfolio behind Knorr and Lir
extend the brand across the complete personal care spectrum, and LUX now
soap to shower gel, and from deodorants to shampoo-conditioners. LUX has for
its marketing. In 2003 Ogilvy & Mather launched a series of ads for Dc women.
The brand competes fiercely with Procter & Gamble’s Olay, Beiersd
Neutrogena, all of which have a similarly broad product range.
MARKETING ADDRESS:-
HINDUSTAN UNILEVER LTD, 165/166, BACKBAY Reclamation,
MUMBAI, 400020,
MANUFACTURED BY UNILEVER DEUTSCHLAND PRODUCTIONS
GMBH & Co OH6 RHENANIASTRASSE 76102.68219.MANNHEM,
MANUFACTURING ADDRESS:-
HINDUSTAN UNILEVER LTD.,
BAROTIWALA (H.P.) 174103
M.L No.MHIM/COS/2004/35D)HINDUSTAN UNILEVER LTD,
C-9, M.I.D.C.AREA, KHAMGAON, DISTRICT,
BULDHANA, MAHARASHTRA 444303
M.L No.MAMD/COS/1/2002.
REGD.OFFICE:165/166, BACKBAY RECLAMATION
MUMBAI 400020.MADE IN INDIA.@HUL2007.
FINDINGS & SUGGESTIONS
Findings:
From my sample it can be inferred that 30% of people use LUX
Soap.
55% of people are satisfied with their present brand of toilet soap.
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23% of people have stated that quantity of LUX Soap is excellent
& 42% have stated that it is good.
33% departmental stores, 42% super market, 15% General Stores,
10% Medical Shops.
Most of the people are satisfied with the present package of LUX.
50% of people have seen the advertisement of LUX products in
T.V, 10% Magazines, 10% Newspapers.
SUGGESTIONS
Under the light of my study an earnest attempt is made to suggest the
following to improve the image on the sales of LUX Soap.
The company has to give some discounts or offers at the time of special
occasions i.e., festivals.
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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.
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.
Increase the advertisements in rural areas.
This soap is suitable only in winter & makes skin oily during summer.
BIBLIOGRAPHY
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