APROJECT REPORTA STUDY OF CONSUMER BEHAVIOURWITH PROMOTIONAL SCHEME OF LUX SOAPSubmitted toGovernment College Dharamshala, HPIn partial fulfillment of required for the degree ofBACHELOR OF BUSINESS ADMINISTRATION

Submitted To Submitted ByMr. Pankaj Sharma NishaAssistant Professor 9792 DEPARTMENT OF BBASCHOOL OF BUSINESS MANAGEMENT GOVT. POST GRADUATE COLLEGE DHARAMSHALA

DECLARATIONThis is certify that, Nisha perusing BBA from this college, has prepared the research project report entitled A study on consumer satisfaction with promotional scheme of Luxsoap in partial fulfillment of the requirements of bachelor of business administration from government college Dharamshala, Himachal Pradesh, for the session 2012-2015.This is an original piece of work and I have not submitted it earlier any were else. I bear the entire responsibility of submission of this project report.

DATE: NISHAPLACE: 9792

CERTIFICATEThis is certify that, Nisha perusing BBA from this college, has prepared the research project report entitled A study on consumer satisfaction with promotional scheme of Lux soap in partial fulfillment of the requirements of bachelor of business administration from government college Dharamshala, Himachal Pradesh, for the session 2012-2015.To the best of my knowledge and belief the data and information presented by her in the project has not submitted earlier.

SINGNATURE:PROF. PANKAJLECTURERDEPT. OF BUSINESS ADMINISTRATION

ACKNOWLEDGEMENTFirst of all I thank to almighty god, who had made me able and competent enough to pursue BBA and provide me with the opportunity to carry out my research project report work.I take this opportunity to thanks prof. Pankaj, lecturer of BBA PG. College Dharamshala for their valuable guidance and supervision at every stage of the study which played a major role in a successful compilation of the project.My grateful thank to Dr. R K Kaundal, Head of department of BBA for this valuable cooperation and guidance during completion of my research project report.Finally I am thankful to all the faculty members, office staff and friends who had been associated with this project either directly or indirectly for sparing their time out of their busy schedule.Nisha

TABLE OF CONTENTCHAPTER NO.TOPICPAGE

1INTRODUCATION Consumer behavior Sale promotion Company profile Four psSWOT analyses

2OBJECTIVE & SCOPE OF THE STUDY

3RESEARCH METHODOLOGY

4DATA ANALYSIS AND INTERPRETATION

5FINDING AND RECOMMENDATIONS

6CONCULSION AND LIMITATIONS

7BIBLOGRAPHY

8QUESTIONNAIRES

CHAPTER NO.INTRODUCTIONCONSUMER BEHAVIOUR

The term consumer behavior refers to the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. Consumer behavior can also be defined as those acts of consumers directly involved in obtained using and disposing of economic goods and services, including the decision processes that preceded and determine these acts. The study of consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items. It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it and how often they use it. Too successfully market to different segments the marketing manager needs appropriate marketing strategies which he can design only when he can understand the factors which account for these differences in consumers behavior and faster. It is a segment or part of human behavior. Human behavior refers to the total process whereby the individual interacts with the environment. Every thought, feeling, or action that we have as individuals is part of human behavior.

Definition: Consumer behaviour is the study of how individuals, groups and organizations select, buy and dispose of goods, services, ideas or experiences to satisfy their needs and wants.

Importance; It seeks to understand the consumer buying decision process and to answer the following questions;Who makes the market?Who do they buy from?What does the market buy?When do consumers buy?Why do they buy?How do they buy?The marketer wants to know how consumers respond to various marketing strategy the company might use. It helps the firm to find better ways to satisfy consumers through creating a suitable marketing mix that will meet customers needs and requirements better than competitors.

Understanding Consumer Behaviour: 7 OS Framework:

Who is the customer? Occupantswhat does the consumer buy? Objectswhy did they buy? Objectiveswho participate in the process? OrganizationWhen did they buy? Occasionswhere do they buy/ OutletsHow did they buy? Operations

Model of Consumer Behavior (Stimulus-Response Model of Buyer Behavior)

Consumers make many buying decisions every day. Most companies are interested to know what consumers buy, where they buy, how and how much they buy, when they buy, and why they buy. But learning about the consumer buying behaviour is not easy task The central question for marketers is how consumers respond to various marketing stimuli The company that understands how consumers will respond to different product features, prices, and advertising appeals has a great advantage over its competitors. The starting point is the stimulus-response model of buyer behaviourthis figure shows that marketing and other stimuli enter the consumers black box and produce certain responses.Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces and events in the buyers environment: economic, technological, political, and cultural. All these inputs enter the buyers black box, where they are turned into a set of observable buyer responses: product choice, brand choice, dealer choice, purchase timing, and purchase amount. The marketer wants to understand how the stimuli are changed into responses inside the consumers black box, which has two parts. First, the buyers characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyers decision process itself affects the buyers behaviour.

Stages of the consumption process:

Pre-purchase:problem recognition & information searchPurchase:mental evaluations & making of decisionPost-purchase:The activities that the consumer undertakes after the purchase and includes; how he uses the product, his degree of satisfaction, and actions taken after the purchase is made.

Participants in the buying process (The D.M.U.-Decision Making Unit)The marketer needs to know which people are involved in the buying decision. People might play any of several roles in the buying decision process;

Initiator:the person who first suggests or thinks of an idea of buying a particular product or service i.e. who initiates the buying decision. Influencer:a person whose views or advices carries some weight in making the final decision. Decider:is the one who ultimately makes a buying decision or any part of it, i.e. whether to buy, what to buy, where to buy. One or more people may be a decider. Buyer: the person who makes the actual purchase. User: the person who uses or consumes the product. A company needs to identify who occupies these roles because they affect product design, promotion, and other marketing strategy

The Consumer BuyingDecision ProcessIt is made up of the following five steps;

STEPS IN CONSUMER BUYING DECISION PROCESS:

1) Problem recognition;It is the stage when the individual recognizes a need or problem to be satisfied or solved. The need can be triggered by either aninternal stimulus(hunger, thirst, or sex), orexternal stimulus(bread, car, or ad)2) Information research;Of key interest to the marketer are the major information sources: Personalsource- family neighbours, acquaintances Commercialsources- sales persons, dealers , packaging displays Publicsources- mass media, consumer-rating organizations Experientialsources- handling, examining, or using the productThe relative amount and influence of these information sources vary with the product category and buyers characteristics.

Evaluation of alternatives:The consumer develops a set of brand beliefs about a brand, which make up the brand image. The brand image will vary with his/her experiences as filtered by the effects ofselective perception, selective distortionandselective retention.The consumer may evaluate brands on the basis of price, product design, colour, packaging, after-sales service, etc.

Purchase decision: Having evaluated various solutions, the buyer may develop a predisposition to make a purchase. However, two factors can intervene between the purchase intention and the purchase decision that may change the purchase intention, e.g. The attitude of others Unanticipated situational factorsIn executing a purchase intention, the consumer may take up to five purchase sub-decisions; A brand decision (brand A) Vendor decision (dealer 2) Quantity decision (1 computer) Timing decision (weekend) Payment method decision (cash/credit)Post purchase behaviour:The consumer will experience some level of satisfaction or dissatisfaction. Buyers do not follow the general decision sequence at all times. The procedure may vary depending upon; The time available Levels of perceived risk The degree of involvement a buyer has with a product.Marketers should provide after sales service and support to assure customer satisfaction.

InvolvementInvolvement may be in terms of relevance and importance and is of two types;

a)High involvement:This occurs when a consumer perceives an expected purchase which is not only of high personal relevance but also represents a high level of perceived risk. Cars, washing machines, houses and insurance policies fall in this category.b)Low involvement: This suggests little threat or risk to the consumer. Low priced items such as washing soap, cooking oil, and breakfast products are bought frequently, and past experience of the product class and the brand cues the consumer into a purchase that require little information or support.

Types of consumer problem solving behaviour:Consumer decision-making varies with the type of buying decision. More complex decisions are likely to involve more buying participants and more buyer deliberations. There are three types of consumer problem-solving behaviour:

1) Routine response behaviour: This occurs when consumers buy low cost, frequently purchased items. The buyers have very few decisions to make. They know a lot about the product class and the major brands available and they have fairly clear preference among the brands. In general, consumers do not give much thought, search or time to the purchase. Marketers must satisfy current consumers by maintaining sufficient quality service and value. They must also try to attract new buyers by introducing new features and using point of purchase displays and price deals.

2) Limited problem solving: Buying is more complex when buyers confront an unfamiliar brand in a familiar product class (e.g. a new brand of radio or toothpaste). E.g. people thinking about buying new music equipment may be shown a new brand with a new shape and new features. They may ask questions and watch adverts to learn more about the new brand. This is described as limited problem-solving because buyers are fully aware of the product class but are not familiar with all the brands available and their features.

3) Extensive problem solving: Sometimes buyers face complex buying decisions for more expensive, less frequently purchased products in a less familiar product class. For these products buyers do not often know what brands are available and what factors to consider in choosing between brands. E.g. suppose you want to buy an expensive stereo component system, you would probably spend time visiting several shops collecting information and comparing various brands before making the final decision.

TYPES OF CONSUMER BUYING BEHAVIOUR

From the understanding of general decision making process, perceived risk and involvement theory, it is possible to identify the following buying behaviours;

1) Complex buying behaviour;It involves three- step process; The buyer develops beliefs about a product, Then develops attitude, Then makes thoughtful choiceConsumers are highly involved in a purchase and are aware of significant differences among brands.Products are highly expensive, bought infrequently, risky and highly self-expressive e.g. automobiles.2)Dissonance-reducing buyer behaviour;where the consumer is highly involved in a purchase but sees little difference in brands.Purchase is expensive, infrequent and risky.If the consumer finds quality differences in the brands, he might go for the higher price.If he finds little difference, he might buy simply on price or convenience.

3)Habitual buying behaviour: Is characteristic with low involvement and the absence of significant brand differencesCommon with low cost, frequently purchased products e.g. saltConsumers reach for the same brand out of habit but there is no strong brand loyalty.

4)Variety seeking behaviour: Low involvement but significant brand differencesA lot of brand switchingMarketing communication should reinforce past decisions by stressing the positive features of the product or by providing more information to assist its use and application.

Organizational/ Industrial Buyer Behaviour

Businesses ask themselves the same questions as consumer marketers i.e. who are our buyers and what are their needs. How do buyers make their buying decisions and what factors influence these decisions? What marketing programs will be most effective?

Definition:industrial buying is the decision making process by which formal organizations establish the need to purchase products and identify, evaluate and choose among alternative brands and suppliers.

Types of organizational markets;

1) The industrial market;It consists of all organizations acquiring goods and services that enter into the production of other goods and services that are sold or supplied to others. It is the largest organizational market.2) Reseller market;It consists of all individuals and organizations that acquire goods for the purpose of reselling them to others for a profit. Resellers buy products for resale and for conducting their operations e.g. wholesalers.3) Government market;It consists of government units from central and local government that purchase or rent goods and services for carrying out their main functions.4) The institutional market;It is made up of hotels, hospitals, schools, colleges and other institutions that also buy goods and services.

Differences between Organizational and Consumer marketsIn some ways organizational markets are similar to consumer markets- both involve people who assume buying roles and make purchase decisions to satisfy needs. But there are differences stemming from market structure, demand, product characteristics, promotion, distribution channels, price, nature of buying unit, and the decision process.1.Market characteristics(a) Size: usually industrial consumers are few in number but purchase larger volumes on a repeat basis.(b)Geographic concentration: industrial consumers tend to concentrate in specific areas especially urban areas.(c)Competition: industrial organizations are more directly involved in international purchasing.

2.Product characteristics: In industrial markets products are purchased as component parts of other products. More emphasis is given to the technical aspect of the product. Purchases of industrial products are usually governed by customer specifications.

3. Buyer characteristics: Typical consumer buyers have little knowledge of the product they purchase as contrasted with industrial buyers who are professionally and technically trained. Many industrial purchases involve large sums of money; technically complex products and decisions to purchase take longer and involve several people.4.Reciprocity: Industrial buyers often select suppliers who may also buy from them e.g. a paper company that buys needed chemicals from a chemical company that in turn buys the companys paper.

5.Channel characteristics:In industrial markets, channels are direct where buyers often buy from producers rather than through middlemen.

6.Promotional characteristics:Personal selling is the dominant mode of promotion in industrial markets and advertising may only be used to lay a foundation for personal selling. Sales people act as consultants.

7.Price:Generally in industrial buying, price takes less prominence. Factors of interest are quality, product consistency, certainty and timeless of delivery, service and technical support.

8.Demand:Demand for industrial products isderived demand. It ultimately comes from demand for consumer goods. A cloth manufacturer buys cotton because consumers buy cloth. If consumers demand for cloths declines, so will the demand for cotton and all other products used to make cloth.The demand is also inelastic in organizational markets i.e. total demand is not much affected by price changes especially in the short-run e.g. a drop in the price of leather will not cause shoe manufacturers to buy more leather unless it results in lower shoe prices that in turn would increase customer demand for shoes.

Participants in the industrial buying process- The buying centre

Thisis the group of people who make the buying decision. The group consists of all people who influence, whether positive or negative, at one or more stages of the purchasing process. TheDecision Making Unit(D.M.U)has people playing the following roles;

1. The gate keeper:he controls the flow of information, ideas and instructions. Such roles may be played by the receptionist/secretary who controls the buying organizations diary. A gate keeper could also be a specialist who can feed relevant information to the rest of the D.M.U.2. Influencers:are people such as engineers, accountants or the board of directors. They help define product specifications and provide information for evaluating alternatives. Technical personnel are particularly important influencers.3. Users:are members of the organization who will use the product. In many cases they initiate the buying proposal and help define product specifications.4. Buyers:they are people with formal authority to select the supplier and arrange terms of purchase. They negotiate with the selected supplier on issues such as price, delivery time, mode of delivery, etc.5. Deciders:are people who have formal or informal power to select or approve the final suppliers. In routine or straight buying, the buyers are often the deciders.

The buying centre concept presents a challenge to the industrial marketer who must learn the following:

Who is involved in the decision? What decisions do they make? What is their relative degree of influence? What evaluative criteria does each participant use?Only when the above questions have been answered can the supplier plan the campaign to inform the key persons within the D.M.U. A multi-faceted attack may be necessary, involving direct mail, personal contact, as well as the use of advertising.

Industrial Buying Situations (classes):

1. Straight re-buy:it is where the buyer knows his own requirements and the products on offer. The items tend to be regular purchases and the process is in most cases repeated frequently. A buyer would most likely purchase from the same supplier and it is often hard for another supplier to break into such a market.2.Modified re-buy:in this category would fall the purchase of either a new product from an existing or known supplier, or the purchase of an existing product from a new supplier. It usually involves more decision participants.3.New task:involves the purchase of new unfamiliar products from previously unknown suppliers. In this situation the buyer must obtain a lot of information about alternative products and suppliers. He must determine the following;Product specifications, price limits, delivery times and terms, service terms, payment terms, order quantities, etc.The buyer makes the fewest decisions in the straight re-buy and most in the new task situation. The new task situation is the marketers greatest opportunity. He tries to reach as many people with key buying influences as possible, and providing useful product information.

Industrial Buyer Decision Making ProcessIn the industrial buyer decision making process, buyers facing a new task buyer situation will usually go through all stages of the buying process and those making straight or modified re-buys may skip some of the stages. They are;

1) Problem recognition:The process begins when someone in the firm recognizes a problem or need that can be solved by acquiring a specific product. The company may decide to launch a new product and need new equipment and materials to produce it or a machine may break down and need new parts etc.2) General need description:Thisis description of the general characteristics and quantity of the needed item. Emphasis here is on reliability, durability, price and other attributes desired in the item.3) Product specification:The items product specifications are analysed and the purchasing team(D.M.U.)decides on the best product characteristics and specify them accordingly.4) Supplier search:This is carried out to find the best suppliers. Some suppliers may not be considered because they are not large enough to supply the needed quantity or because they have poor reputation. The suppliers task is to get listed in major directories and build reputation in the marketplace. Salespeople should watch for companies in the process of searching for suppliers and ensure their firm is considered.

(2)Proposal solicitation:The buyer invites qualified suppliers to submit proposals. When the item is complex or expensive, the buyer will need detailed written proposals from each potential supplier.(3)Supplier selection:The buying centre(D.M.U.)reviews the proposals andselects a supplier. They will consider the technical competence of various suppliers, their ability to deliver the item on time and also deliver the necessary services. The following attributes have a strong influence on the relationship between the supplier and customer;Quality of products, on time delivery, competitive prices,and delivery terms.

Order routine specification:This involves preparing the final order with the chosen supplier, listing the technical specifications, quantity needed, expected time of delivery, etc.Performance review:Here the buyer reviews the performance of the supplier. The buyer may retain, modify, or drop the supplier in future hence the supplier should ensure that he is giving the expected satisfaction.

Personal Determinants of Consumer Behaviour

These are needs, motivation, perception, learning, beliefs, and attitudes.

1. Needs and Motivation

A motive is a need that is sufficiently pressing to drive a person to act. Needs are either physiological-(hunger, thirst, comfort), or psychological-(recognition, self-esteem, etc.). Marketers study motivation theories for consumer analysis and marketing strategy. Three of the best known theories are those of Sigmund Freud, Abraham Maslow and Fredrick Herzberg.

Maslows theory

In order ofimportance, they are physiological needs, safety needs, social needs, esteem needs and self- actualization.A person will try to satisfy their most important needs first, after which he will then try to satisfy the next higher need. The theory helps marketers to understand how various products fit into the plans, goals, and lives of consumers.

Herzbergs theory

He developed a two- factor theory that distinguishesdissatisfies(factors that cause dissatisfaction) andsatisfiers(factors that cause satisfaction).Satisfiers must be actively present to motivate a purchase. The implications are that sellers must do their best to avoid dissatisfies e.g. poor instructions manual. The manufacturers should identify the major satisfiers and motivators and supply them to buyers.

Perception

Perception is a process by which an individual selects, organizes and interprets stimuli into a meaningful, coherent image or picture of the world. simply said it is how an individual views a particular product.A motivated person is ready to act and how he acts is influenced by his or her perception of the situation. Two people in the same motivated state and objective situation may act quite differently because they perceive the situation differently. People can emerge with different perceptions of the same object because of three perceptual processes:selective attention, selective distortion, andselective retention.

Learning

Learning can be defined as a relatively permanent change in behaviour that occurs as a result of experience or reinforced practice.Most human behaviour is learned.

Two main approaches to learning are:Behavioural- Association, reinforcementand motivation.

Cognitive-processing information in order that problems can be resolved. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues, and reinforcement.

Personality Theories

Personality is, essentially, concerned with the inner properties of each individual, those characteristics that differentiate each of us.

Freudian theory of personality; psychoanalytic theory:

It assumes that the needs which motivate human behaviour are driven by primary instincts- life and death. The life instincts are considered to be predominantly sexual in nature, whereas the death instincts are believed to be manifested through self-destructive and/or aggressive behaviour. The personality of an individual is assumed to have developed in an attempt to gratify these needs, and consists of theid(pleasure seeking),super ego(acts within the rule of the society)andego.Trait theory:

Traits are distinguishing, relatively enduring ways in which one individual differs from another. Personality is measured and quantified e.g. the degree of assertiveness, responsiveness to change or level of sociability.Marketers identify specific traits and then develop consumer profiles which enable a distinct market segment to be determined.For example, Aspirers seek status and self- esteem (materialism) and are targeted with products which act as symbols of achievement e.g. designer clothes, latest hi-fi etc.Consumers are likely to choose brands whose personalities match their own. For example: Tommy Hilfiger-youthfulness Levis-ruggedness. Brand personalities can attract consumers with the sameself-concept(how somebody views himself).Beliefs and attitudes

An attitude is a learnedpredispositionto behave in a consistently favourable or unfavourable way with respect to a given object.Through doing and learning, people acquire beliefs and attitudes.Attitudes relevant to purchase behaviour are formed as a result of direct experience with the product, word of mouth information acquired from others, or exposure to mass media advertising.A company can fit its products into existing attitudes rather than trying to changing them.

Attitude change strategies include: Changing the consumers basic motivational function, i.e., making particular needs prominent. Associating the product with an admired group or event e.g. social support events, celebrities, etc. Resolving two conflicting attitudes e.g. moving from negative to positive. Altering components of a multi attribute product e.g. toothpaste (regular and herbal, etc.). Changing consumer belief about competitors brands.

External Determinants of Consumer Behaviour:

Consumers are social and cultural human beings. Their behaviour is affected by the social setting they find themselves in as well as the cultural practices of the community they live in.

1)Culture:It refers to the ways of life of a people. It is a set of socially transmitted beliefs, attitudes, norms and customs.Culture is learned from parents, teachers, and society in general.Culture describes the prescribed acceptable behaviours and norms of a society. Marketers has to understand the changes in cultural shifts in a society in order to capture opportunities to serve them in a better manners. Any marketer must be familiar with the culture of the people they wish to sell to.

2)Social classes:It is the division of the society into groups. It is also known as social stratification. Social functions have to be performed by a society for it to survive. Stratification in the world is done on the bases ofeducation, occupation, income or economic and political station. In some societies eight tonine strata were found but in most of the society three classes were found i.e. Upper class, middle class and lower class.A social class is an open aggregate of people with a similar social ranking. It is open since people can move in and out of the group. Mobility may take the form of education, occupation, talent, marriage, etc. Within a social class, people will to a certain extent have the same patterns of behaviour, similar attitudes, values, possessions, etc.

Characteristics of social classes:

People within the same social class exhibit similar behaviour. People are ranked as occupying an inferior or superior social position according to their social class. A social class is not indicated by any single variable, but is as a result of the weighed function of an individuals occupation, place of residence, wealth, education, values, etc. The marketer has to identify the class differences due to the following reasons; Each class will have certain products that appeal to them and others that do not appeal to them. The marketer has to concentrate their marketing effort on specific social classes. In the same social class, there may be individual tastes that the marketer needs to take into consideration. The kind and quality of the product selected may vary from one consumer to another. Difference in classes may also show in marketing areas the consumers frequent.Certain classes may have a preference for a given shop, club, restaurant etc. The media habits of different classes will also differ. Some members of a class may read different newspapers and listen to different programs or watch different stations on T.V.

(3)Reference groups:Reference group is a group of people who have direct or indirect influence on the individuals behaviour. It acts as point of comparison or defence point/frame of reference for an individuals behaviour.Reference groups can be classified in to many Types; based on the degree of involvement we can classify into two groups i.e. primary and secondary groups.

Primary groups: these are groups that are small and very close to the consumer. The consumer has direct contact with group members and often has face-to-face communication with them. They include the family, co-workers and those one spends his leisure time with.

Secondary groups: are larger and less intimate than the primary group. The consumer contact with this group may not be as frequent as those of the primary groups. They include religious organizations, professional organizations, clubs, unions, etc.

Rationale groups: these are membership groups that a person may join. They engage in activities which interest the consumer to express his idea, be guided and influenced in the type of goods consumed. They include YMCA, YWCA, scouting movement, etc.The reference group has norms that the members abide by. These norms promote conformity within the reference group. A reference group may influence the decision to buy in two ways; Being a member of a group, a person may buy a product or service since all those in the group have done so.A person may buy a product or service for the reason of wanting to belong to or be associated with the group. Some products can be sold by appealing them to a reference group. The consumer will use others as a point of reference; If he lacks specific experience in the purchase or use of a product, service or idea. When available sources of marketing information are judged as biased or inadequate. When the outcome of a consumers decision is highly visible and therefore open to disapproval from others. When the products are in high risk category e.g. are expensive.

(4)Role of Opinion leaders:

These are the pace setters or trend setters. They are the people who will first venture into sampling a new product before the others. They would then give information to the others before they commit themselves to buy the product or service. The opinion leaders or the pace setters are respected and serve as a source of advice to the rest. Characteristics of opinion leaders are; They are more interested and better read in areas they influence. They are more self-confident and sociable. They are slightly more innovative i.e., they take risks but cautiously soothed word of mouth becomes an important tool for the spread of information here. The opinion leaders are the first to receive advertising messages and then pass them on to the others. Marketers should identify the opinion leaders first and focus information on them so that they can then influence others.(5)The Family:A Family comprises of two or more persons living together connected through blood or marriage or adoption and stay together. Different family structures were observed in the societyi.e. married couples, nuclear family (parents and children) and extended family(parents+children+grandparents+uncles). Members of a family have a role in the buying process and the roles will depend on the product purchased. There are three important players in the family; they are husband, wife and children. These roles may be grouped as;(a)Wife dominated decisions.(b)Husband dominated decisions.(c)Joint decisions.

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.Sale promotion refers to short term incentives, which are designed to encourage the buyer to make immediate purchase of a product or service.Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.Sales promotion includes tools for:CONSUMER PROMOTION:Consumer sale promotion is a marketing technique that is used to entice customers to purchase a product. The promotions typically last for a set period of time and are used to achieve a specific purpose, such as increasing market share or unveiling a new product. Samplesand free trialsOffer of free sample of a product, say a soap or tooth paste to potential customers at the time of launch of a new brand.

Coupons

Cash Refund Offersrefunding a part of price paid by customer on some proof of purchase, say on return of empty foils or wrapper. This is commonly used by food product companies, to boost their sales.

Price Off

Prizes

Warranties

Cross Promotions or product combinationOffering another product as gift along with the purchase of a product, say offer of a pack of kg of rice with the purchase of a bag of aatta or 128kb memory card free with a digital camera etc.

Demonstration

TRADE PROMOTIONIn business and marketing trade refer to the relationship between manufacturers and retailers. Trade promotion refers to marketing activities that executed in retail between these two partners. Trade promotion is a marketing technique aimed at increasing demands for products in retail stores based on special pricing, demonstrations, gifts and more. Prices Off Advertising and display Allowances Free Goods

BUSINESS AND SALES-FORCE PROMOTION Trade Shows and Conventions Contests for Sales Reps Specialty AdvertisingObjectives of sales promotion: TO INTRODUCE NEW PRODUCT OR SERVICES TO ATTRACT NEW CUSTOMERS TO INDUCE EXISTING CUSTOMER TO BUY MORE TO AIN COMPETATIVE ADVANTAGE TO INCREASE SALES IN OFF SEASONS.Sales Promotions vary with their specific objectives. Sellers use different type promotions to attract new trials, reward loyal customers, and to increase the repurchase rates of occasional users. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums. Sales promotions are generally unlikely to turn them into loyal users, although they may be induced to make subsequent purchases. Sales promotions used in markets of high brand similarity can produce a high sales response in the short run but permanent gain in the market share. In addition to brand switching, consumers may engage in stockpiling- purchasing earlier than usual or purchasing extra quantities. But sales may hit a post promotion dip. A number of sales promotion benefits flow to the manufacturers and consumers. Sales promotions enable manufacturers to adjust to short term variations in supply and demand. They enable manufacturers to test how high a list price they can charge, because they can always discount it. They induce consumers to try new products instead of never straying from current ones. They lead to more varied retail formats, such as everyday-low-price store and the promotional pricing store. For retailers, promotions may increase sales of complementary categories as well as induce some store switching by consumers. They promote greater consumer awareness of prices. They permit the manufacturers to sell more than they would normally sell at list prices. They help the manufacturer to adapt programs to different consumer segments. Consumers themselves enjoy some satisfaction from being smart shoppers when they take advantage of price. Service marketers also employ sales promotions to achieve marketing objectives. Some service firms use promotions to attract new customers and establish loyalty.

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 offercould be availed only on 100 gm and 150 gm packs of Lux soap.Lux Star Bano Aish Karoocontest which started onApril 16 and went on till July 15 of 2005. 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 give gift vouchers worth 50,000 from Shoppers' Stop along with an exclusively designed Neeta Lula sari and a beauty makeover by Michelle Tung, Aishwarya's preferred designer and stylist. The pice de rsistance was a dinner date with Aishwarya Rai herself.The Lux Star Bano, Aish Karo contest aims to drive the brand proposition Mujh mein star jagaye further. The Lux `Be a Star' promotion is a unique offering through which LUX brings what stardom feels like to customers.Lux is celebrating 75 years of stardom in India and to kick start the celebration, Lux has launch the Har Star Lucky Star activity. Har Star Lucky Star offer is bound to go down in history as the only activity where every consumer is a winner! All wrappers of Lux have a star printed inside them. If the consumer finds written inside the star, any number from 1 to 5, she will get an equivalent discount (in rupees) on her purchase from her shopkeeper. If the consumer finds 75 years written inside the star, she will get a years supply of Lux free, courtesy the beauty stars. Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offerfrom Delhi. According to the promotional offer that Lux unveiled in October 2000, aconsumer finding a 22-carat gold coin in his or her soap bar got an opportunity to winan 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. LuxStarBano,AishKarocontest:AlloneneededtodowasbuyaspecialpromotionalpackofLuxsoap.Thepackcomeswithaspecialscratchcard.The50lucky winners and their spouses were flown down to Mumbai to live a day likeAishwarya Rai would. They could also be given gift vouchers worth Rs 50,000 fromShoppers' Stop along with an exclusively designed Neeta Lulla sari and a beautymakeover by Michelle Tung,Aishwarya's preferred designer and stylist. The pice dersistance was a dinner date with Aishwarya Rai herself. Luxcelebrated75yearsofstardomwiththeHarStarLuckyStaractivity.All wrappers of Lux had a star printed inside them. If the consumer found writteninside the star, any number from 1 to 5, she would get an equivalent discount (inrupees) on her purchase from her shopkeeper. If the consumer found 75 yearswritten inside the star, she will get a years supply of Luxfree.

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Pleaseenteryournameand email to play the game. Play the supercharged version of the hit puzzle game, Bejeweled, Create rows of 3 or moreidenticalstonesandyoucouldwinatripfortwotoafive-starResortinGoa.

Public Relations:The profession or practice of creating and maintaining goodwill of an organization various public like customers, employees, investors, suppliers etc. usually publicity and other nonpaid forms of communication. It is not only related to customers, suppliers and dealers, but it 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 companys ability to achieve its objectives. PR involves a variety of programs designed to promote or protect a companys image or its individual products.

They perform the following functions: Press relations: Presenting news and information about the organization in the most positive light. Product Publicity: Sponsoring efforts to publicize specific products. Corporate Communications: Promoting understanding of the organization through internal and external communications. Lobbying: Dealing with legislators and government officials to promote or defeat legislation and regulation. Counselling: Advising management about public issues and company positions and image during good and bad times

LUX: THE STAR PERFORMERThe great Indian brand wagon started nearly four decades ago. Great brands sometimes outlast due to their ambassadors as proven by Lux which is celebrating its 85th anniversary in India. The first ambassador, Lila 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 soapfrom the beginning; Lux became a household name across the country. Actor Hema Malini says, One of the turning points in my career was when I was signed up by Lux. It was then that I knew I had made my mark in Indian cinema as a leading lady. To be a Lux star is a much sought after honor amongst leading ladies and it truly means a lot to me.After 50 Indian female actors lathering up with Lux, it is now the turn of a male actor, Shah Rukh Khan, to say, Aaj meinaapkobatanewalahoonmerikhubsurateinka raaz Lux.Ab batayein me pkafavorite LuxStar kaun Hai? (I want to tell you about my beauty secret Lux. Who is your favorite Lux Star?) In 1926, Ginger Rogers became the first Hollywood great to appear in a Lux commercial. The first Lux bar made in India was sold for the princely sum of two Annas in 1934.

LUX: VARIANTSIn the country since 1929 and endorsed by popular film stars, Lux is the biggest brand in the soap category. Lux Toilet Soap, in the popular segment, offers its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts, Saffron, Sandalwood Oil and Honey. The Lux premium range offers specialized skincare to its consumers in the form of Lux International. It also includes Lux Body Wash for superior bathing benefits keeping in step with the changing needs of the Lux consumer. In addition to these variants lux has come up with a few more variants to celebrate its 85 years in business.The Lux Celebration Range is a set of three exclusive variants- Aromatic Glow and Chocolate Seduction and Lux White Spa body wash containing exotic ingredients, never seen in the Indian market before.

MarketThe personal wash market is valued at Rs.45 billion (Source: ORG-MARG). It is a highly penetrated market though per capita consumption lags even South Asian countries like Indonesia. The market has seen stagnant sales over the last four years and the low entry barriers have led to intense competition between national and local brands.Market segmentation of Lux Gender: Female Age: 16-35 Income: Middle income group (RS 15 to 20) Highest selling beauty soap in urban area (Rural area: Lifebuoy) Expensive-Affordable. Target Area: Urban and Sub urbanUpper middleand middle class peopleAchievementLux is the largest personal wash brand in the country with a value share of 17%. Three in every five Indian consumers enjoy the luxurious bathing pleasure of Lux during the course of a year. This strong association with consumers has led to Lux becoming one of the most trusted brands in the country.Lux has retained its leadership status by strongly differentiating itself no soap brand can claim to be more aspirational for the Indian consumer than Lux - the beauty soap of film stars.The last three years have seen Lux continue to grow far ahead of the market. It has gained close to 4% share in this period. A key initiative that has fuelled this growth has been the launch of Mini Lux strategically priced at Rs.5 to bring it within the reach of 300 million rural consumers. The introduction of new perfume and ingredient variants, addressing new benefit segments, has been the other growth driver.

INTRODUCTION ABOUT COMPONYHistoryLux soap was launched in India in 1929. The first bar of Lux was made in India and sold for a princely sum of two Annas in 1934. From the very first advertisement in 1929 featuring Lila Chitnis, the gorgeous faces of the silver screen have come out in the open with their beauty secret Lux.Popularly known as the beauty soap of film stars, Lux has been a favorite with generations of users for the experience of sensuous, luxurious bathing.Since its launch in India, Lux has offered a range of soaps in different colors and fragrances. They have each, however, offered the same benefit of beautiful skin. Desirable product sensorial, especially its world class fragrances and nourishing ingredients, have made the Lux bath a pleasurable experience.But Lux being the market leader has evolved along with the changing needs of its consumers. The late 1980s saw the emergence of a premium segment in the soap category a new consumer set whose beauty and bathing needs began to evolve. In 1989, to tap into this segment, Lux launched a range of premium soaps to suit their different skin types.

The FOUR Ps(A)ProductA 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, persons, places, properties, organizations, information and ideas.Product ClassificationMarketers have traditionally classified products on the basis of characteristics: durability, tangibility, and use.LUX is a Tangible, Nondurable Good on the basis of this classification.Consumer Goods ClassificationThe vast array of goods consumers can buy can be classified on the basis of shopping habits:Convenience Goods: The consumer purchases such goods frequently, immediately and with a minimum of effort.Shopping Goods: Are goods that the consumer, in the process of selection and purchase characteristically compares on the bases of suitability, quality, price and style.Specialty Goods: Have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort.Unsought Goods: Are those the consumer does not know about or does not normally think of buyingLUX and other soaps fall into the category of Convenience GoodProduct Life CycleLUX Beauty Bar is in the maturity stage of its life cycle whereas the LUX Bodywash is in the growth stag

LUX Beauty Soap- Form, Features, StyleWith icons of beauty endorsing the brand, the offerings made by Lux have always been superior and have always led the market, setting benchmarks for competition.Lux has beauty offerings in two of the four market segments popular and premium, spanning the needs of varied consumers.Lux Toilet Soap in the popular segment has in the past four years offered its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients rose extracts, almond oil, milk cream, fruit extracts and honey which are known to harbor the secrets of incredibly perfect skin.At the upper end of the market is the premium range which continues to offer specialized skincare to its consumers in the form of International Lux a range of moisturizing, deep cleansing and sunscreen soaps. Keeping in tune with the changing times it has also launched Lux Body Wash which offers superior bathing benefits.To establish the presence of nourishing ingredients in the new Lux, a unique concept, ingredients you can see in the soap, was born. A novel metallic substrate packaging beautifully showcased the ingredients and its globally accepted ingredient-linked perfumes heightened the sensorial experience.Each of the soaps in the range has milk cream, with the active ingredients of rose extracts, sandal saffron, almond oil and fruit extracts. These create an experience in pampering indulgence and luxury designed to bring out the star in every woman. This is the first time in the Indian chapter of the brand that the beauty bar variant was being differentiated on the basis of its ingredients rather than its perfume and colors.Though Lux International, a premium variant of the toilet soap, launched in 1989, isdifferentiated on the basis of its ingredients, the popular version, Lux Beauty Bar was always projected as a pure and mild solution to soft and smooth skin.

International Lux Body Wash the last name in luxuryIt is the next revolution in the realm of personal care. The new International Lux Body Wash comes in two rich variants. Rich Moisture embodies an exotic combination of green apple and orchid extracts. And Fresh Moisture exudes the tingling freshness of orange peel extracts. To ensure a complete skin styling experience, with each elegant bottle come a free loofah.It is priced at Rs.90 for 250 ml and Rs.49 for 150 ml respectively International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities.Trade Character

LabellingThe 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. The ingredients, place of manufacture have been listed. Also listed is the consumer complaint cell address in case of unsatisfactory product.PackagingA novel metallic substrate packaging beautifully showcases the ingredients, in case of the soaps. A female model is shown on the pack. 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

The LUX Body Wash comes in an exquisitely designed bottle with the trade character prominently displayed. Lux has launched a 45g variant called Mini Lux priced at Rs.5

Developing New VariantsThe new Lux Beauty Bar is significantly better on all aspects including aesthetics, sensorial, skin care, and value for money, perfume and ingredients. The company claims that a new initiative behind Lux beauty bar was always in the offing, market conditions notwithstanding. HLLs structured innovation programmer was the driving force. This programmed, which charts the route for every HLL brands progress, works eight to 12 quarters ahead of the companys brands For instance, at the time when Lux International with a superior moisturizer was launched in 1999, the company claims to have been working simultaneously on Lux Sunscreen which was launched in 2000. Lux is always a step ahead of trends rather than following the trend. It would rather orient and direct the change rather than follow it. This flag-bearing Programmedaccording to the company, helped in timing the re launch. Also by using brand-oriented research, the company identified two sets of consumers. One was the loyal base of existing Lux Beauty Bar consumers. The other was the target segment which would be the source of growth for Lux. This segment comprised of those customers who were buying soaps in the sub-popular segment, but could shift upwards if a better product was offered in the popular segment. A company executive says, The entire relaunch exercise was aimed at delivering a superior mix, which would tap into this source of growth. The consumer needs and triggers which were identified included: fragrance, quality of lather, long-lasting, value for money product, familiarity and belief were factors that translated into a sense of reliability and quality. This helped in the delivery of the new product. Several options were considered for the Lux relaunch. These included mood-enhancing perfume positioning. Skin-care based ingredients like glycerin, sandal and saffron were considered. The company says that after scanning 60 or 70 options across both national and international markets almond oil, honey and milk cream were the chosen ones. With its latest stance, the company is banking on the sub-popular segment soap buyers to buy into the new Lux. While the target segments remain the SEC B, C and D, the soaps performance in its top markets north and west which contribute to over two-thirds of its sales, will be crucial to its future growth. Though retailers in Mumbai spell Lux on their list of best sellers, they say that the honey variant is yet to catch on, as the consumer has never associated with Luxs black color packaging.(B) Promotion: The promotion mix is classified as follows:Promotion mix refers to combination of promotional tools used by an organization to achieve its communication objectives. AdvertisingAdvertising is most commonly used tool of promotion. It is an impersonal form communication, which is paid for by the marketers to promote some goods or services.The most common modes of advertising are- Newspaper Magazines Television RadioChange in communication strategyHowever, 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. The film star still features in the new communication but not as her gorgeous self but rather as an alter ego/projection of the protagonist (a regular girl), for a few seconds of the entire ad. Thus, for the first time the film star was used as a communication device and not as the main feature of the ad. The move away from the film star and her fantasy world to a regular Lux user, with the focus on the protagonists 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 idea bring out the star in you puts the consumer at the heart of the brands promise. This promise goes beyond the functional deliverables of soap, beyond bathing and the bathroom to the world outside. Its a world where with Lux on her side, an ordinary woman can impact her world with her own star quality. This is a successful attempt to bring the brand closer to its users and to give it a more youthful and contemporary image.

Sales Promotion

Sale promotion refers to short term incentives, which are designed the buyers to make encourage the buyers to make immediate purchase of a product or service.Commonly used sales promotion activities are: Discount Refunds Product combinations Quantity gifts Lucky draw Sampling Contests

Personal SellingPersonal selling involves oral presentation of message in the form of conversation with one or more prospective customer for the purpose of making sale.Merits of personal selling- Flexibility Direct feedback Minimum wastage

Public RelationsPublic relation is the profession or practice and maintaining goodwill of an organizations various public like customers, employees, investors, suppliers etc. usually through publicity and other nonpaid forms of communication. (C) Price"Price" is pretty self-explanatory but its very important to success. Price Something too high and a company may never sell a single item of it. Price it too low and one can lose money on every sale once all of costs of doing business are considered. So you want to price it attractively so that you can sell it to your clients and theyll feel good about the purchase. HLL seems to have mastered this idea. Prices of HLL are considered the most competitive in Indian market. With an operating profit of 470 MN$ and a turnover of 2,190 Msn$, HLL has no need to look back on the fact that it is a leader. The main fact for this huge success story is the strategic pricing decision the company has adopted from time to time.

HLL always gives value for money to his consumers. It is known for its competitive pricing. HLL has the advantage of quoting a reasonable price due to its economy of scale. HLL also can quote a very competitive price due to its superior technology and optimum utilization of inventory. HLL has the product range that meets the needs of all classes of consumers. It has the products that are categorized as premium and mass products, which have been described above. HLL matches its prices with the competitor who is operating in the same category. HLL also gives price offs on its products to reward consumers who are using it for a long time and also to attract new consumers.The LUX Beauty Bars are priced as follows:100gms: Rs.13150gms: Rs.19LUX International is priced at125gm: Rs.21International Lux Body Wash comes in an exquisitely designed bottle and is available at select outlets in select cities. It is priced atRs.70 for 250 mlRs.40 for 150 mlLux has also introduced the Mini Lux that has helped in better penetration of the rural market. Priced at 45g: Rs.5Competitiveprices: Neither high nor low

Factor affecting price determination- Product cost The utility and demand Extent of competition in the market Government regulations Objective of company(D) PlacePlace or physical distribution Include Activities that makes a firms product available to the target customers. HULs distribution network is recognized as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country. The need for a strong distribution network is imperative, since HLLs corporate purpose is to meet the everyday needs of people everywhere. At Hindustan Lever Limited, distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+ suppliers and associates, 45 C&F.A.s, 7,000 stock and direct coverage in over 1 million retail outlets across India. To meet the ever-changing needs of the consumer, HLL has set up a distribution network that ensures availability of all their products, in all outlets, at all times. This includes, maintaining favorable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things. HLL boasts of placing a product across the country in less than 72 hrs.The first phase of the HLL distribution network had wholesalers placing bulk orders directly with the company. Large retailers also placed direct orders, which comprised almost 30 per cent of the total orders collected.Today, the goods are transferred from the factory to the company warehouses (C&F.A go down) and are sent to the distributor from there on a daily basis. From the distributor, the stock reaches the market through daily sales. Typically, these include the salesman registering the order of a retail outlet and delivering the goods the next day.Recently HLL has changed its traditional way distribution and came out with a new strategy of distribution. Its because of the change in buying pattern of the consumer due to more disposable income. There are different channels of distribution like Modern Trade, which covers all chains of super markets like Food World, who get the stocks directly from the company. Wholesalers and second leg of big retail outlets called Super Value stores come under the surveillance of the distributor along with the mass retail outlets. There is also this new concept in the HLL distribution channel called Kiosk. Kiosk is a small shop that sells only sachets and low priced items (below Rs.10/-). Kiosk also does not come under the surveillance of the distributor.In addition to the ongoing commitment to the traditional grocery trade, HLL is building a special relationship with the small but fast emerging modern trade. HLL's scale enables it to provide superior customer service including daily servicing, improving their range availability whilst reducing inventories. Today, the sales system gets to know every day what HLL stockiest have sold to almost a million outlets across the country. RS Net is part of Project Leap, HLL's end-to-end supply chain, which also includes a back-end system connecting suppliers, all company sites and stretching right Up to stockiest. RS Net has come as a force multiplier for HLL Way, the company's action-plan to maximize the number of outlets reached and to achieve leadership in every outlet, by unshackling the field force to solely focus on secondary sales from the stock to retailers and market activation. HLL Way has also led to implementing best practices in customer management and common norms and processes across the company. Powered by the IT tools it has further improved customer service, while ensuring superior availability and impactful visibility at retail points.

For rural India, HLL has established a single distribution channel by consolidating categories. In a significant move, with long-term benefits, HLL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stock. It has already appointed 6000 such sub-stockiest. As a result, the distribution network directly covers about 50,000 villages, reaching about 250 million consumers.

SSWOT ANALYSISSWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat) (Marketing Strategy, 1998).The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats.

Strengths:

Strong market research (Door to door samplingoncein a yearRural and Urban area.) Many variants (Almond oil, Orchid extracts, Milkcream, Fruit extracts, Saffron sandalwood oil andHoney) Strong sales and distribution network backed byHUL Strong brand image Dynamically continuous innovations New variantsand innovative promotions (22 carat gold coinpromotionChance Hai) Strong brand promotion but relatively lower prices Winning combination. Mass appeal/Market presence across all segments (15% of soap market)

Internal Analysis - The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as: Company culture, image Organizational structure Key staff Access to natural resources Position on the experience curve Operational efficiency, capacity Brand awareness Market share Financial resources Exclusive contracts Patents and trade secretsThe SWOT analysis summarizes the internal factors of the firm as a list of strengths and weaknesses.Weakness: Mainly positioned as beauty soap targeted towardswomen, lack unisex appeal Some variation like the sunscreen, internationalvariant did not do well in the market Not much popular in rural areas

External Analysis - An opportunity is the chance to introduce a new product or service that can generate superior returns. Opportunities can arise when changes occur in the external environment. Many of these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specifications or the development of new products in order for the firm to remain competitive. Changes in the external environment may be related to: Customers Competitors Market trends Suppliers Partners Social changes New technology Economic / Political environmentThe SWOT analysis summarizes the external environmental factors as a list of opportunities and threats.Opportunities: Soap industry is growing by 10% in India Beauty segments compounded annual growth rate(CAGR) is very high Liquid body wash is currently in growth stageLuxshould come out with more variants inthis segment Large market share Strong hold over the market.

Threats:

High internal competition (PearsBeauty segment) New entrants (Vivel) Maturity stagethreat of slipping down to declinestageif constant reinvention is not carried out TechnologicalchangemakestheexistingproductsobsoleteLuxshouldfocusontechnological innovations like Body Wash.

Chapter -2OBJECTIVES OF STUDY:The main objectives of the study are:1. To assess the consumer sales promotion schemes offered the companies.2. To study consumer perceptions regarding various schemes and responses to ward them.3. To analyses consumer buying decision with reference to scope.4. To know the reason for a switch over from one brand to another.5. To study the influence of various sources of information on consumers buying behavior.6. To evaluate the extent of expenditure of soaps.SCOPE OF THE STUDYThe geographical scope of the study was restricted to the Dharamshala due to time and resource constraints. The study has been done on the promotional scheme of Lux soap and the effect of the purchase decision on the satisfaction of consumer. Focus being mainly on in-depth probing, the generalizations drawn are only indicative and not conclusive.

IMPORTANCE OF THE STUDYThe main objectives of the study are:(1) This project will has in understanding the various promotion scheme offered by Lux soap.(2) This project will does the conclusion regarding the satisfaction with various Promotion scheme start by Lux.(3) This will be analyses effect on promotional scheme on the sales of the Lux in the view of retailer(4) This project will maser the satisfaction of customer which promotional scheme and Effect on purchase decision of Lux.CHAPTER 3Research MethodologyDefinition of research:Research is a human activity based on intellectual investigation and is aimed at discovering, interpreting, and revising human knowledge on different aspects of the world. Research can use the scientific method, but need not to do so. Scientific research relies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us. It makes practical applications possible. Scientific research is funded by public authorities, by charitable organizations and by private groups, including many companies. Scientific research can be subdivided into different classifications.The word Methodology spells the meaning itself i.e. the method used by the researcher in obtaining information. The data (Information can be collected from the primary sources and secondary sources.)By primary data we mean, data collected by researcher himself, for first time to collaborate, the data which has previously not been used, is known as primary data; by secondary data we mean, the data collected from various published matters, magazines, newspapers status of previous research reports etc. In other words we can say that the data which has already been used for different purposes by different people is known as secondary. Primary data may be described as those data that have been observed a recorded by the researcher for the first time to their knowledge.David .J. Luck Primary data can be collected through questionnaire and personal interviews. I met consumers personally and to some consumers I MADE Contact by Telephone, Some consumer filled the questionnaire themselves and some asked us to do it I observed some interesting during the interview. Secondary data are collected from the office of Eureka Forbes Ltd.

RESEARCH DESIGN-A research design is simply the framework of conducting research. It is a plan for a study that is used to guide in collecting and analyzing the data. Research can be conducted without a research design but it may not solve the problems. Research design is helpful in collecting necessary information. It decides sources of information and methods for gathering data. It tells about what information is to be collected from which sources and by what procedures. In this research information has been collected by the researcher form the peoples and the information are analyzed by mathematical & graphical technique. Main heads to be considered in a research designs.

Definitions of Research Design A plan of what data to gather, from whom, how and when to collect the data, and how to analyze the data obtained. A systematic plan to coordinate archaeological research to ensure the efficient use of resources and to guide the research according to scientific methods. Systematic planning of research, usually including(1) The formulation of a strategy to resolve a particular question;(2) The collection and recording of the evidence;(3) The processing and analysis of these data and their interpretation; and(4) the publication of results. Also known as a market research briefing, this is a basic plan which guides the data collection and analysis phases of the research project. It acts as a framework which details the type of information to be collected, the data sources and the data collection procedure. The Stated structure and process of conducting a research project, includes specifications, schedule and budget.SAMPLING DESIGN:-Sampling design deals with the method of selecting items to be observed for the given study .For this research work the sampling designed has been chosen are simple random sampling. The choice of researcher is first preference in this design and researcher selected all those persons who could fulfill the needs of the researcher and satisfy him. The main reason to choose this sample design was to save time and money.

Data Collection MethodData collection method is simply asked Questioner to the consumer and sample size is the 100 and the sampling area in Dharamshala city.

1. LIMITATIONS OF THE PROJECT2. Response biasness could be one of the limitations.3. The sample chosen may not be the true representative of the whole population.4. As the research was exploratory in nature, it was not possible to study the accurate phenomenon of the fact.5. There should be move promotional scheme in comparison in competitor.6. Promotional scheme should be move affect attract more all segment of customer.7. Sample size was small.8. Sample area is narrow.9. There was the lesser time to collect the more information for the project.

Chapter -4Data Analysis& InterpretationDATA ANALYSIS1. RETAILERS ANALYSIS0. What is the sales promotion schemes offered on Lux?Cash refundCross promotionPrice offPrizesProduct building

5 10 40 15 30

0102030405012345Series1Analysis The primary analysis found that Price off is the best sales promotion schemes offered on Lux (40 of the retailers agreed on this). Product Bundling was the next best with 30 of the retailers in favor of the same and Prizes sales promotion 15,Cross promotion is get 10 and last Cash refund to Cash refund 5.InterpretationsThe primary analysis found that Price off is the best sales promotion schemes offered on Lux and Product Bundling was the next best of the retailers in favor of the same and Prizes sales promotion agreed, Cross promotion and last Cash refund to sales promotion agreed .

0. What will effect on sales of Lux due to sales promotional schemes?Cant sayIncrease on salesNo affects

15 75 10

01020304050607080123Analysis The primary analysis found that sales promotion schemes offered on Lux caused an Increase in sales (75 of the retailers agreed on that). Cant say was the next best opinion with 15 of the retailers in favor of the same and 10 no affect due to promotional scheme.

InterpretationsThe primary analysis found that sales promotion schemes offered on Lux caused an Increase in sales and Cant say was the next best opinion with the retailers in favor of the same and last no affect due to promotional scheme on the customer.

0. What affect communication of sales promotion scheme?Print mediaWholesalerElectronic mediaSales representative

15 40 20 25

010203040501234Analysis The primary analysis found that Wholesalers were the best medium of communication of sales promotion schemes (40 of the retailers agreed on that). Sales representatives was the next best with 25 of the retailers in favor of the same and 20 Electronic Media affect sales promotion and last 15 Print Media affect the sales promotion scheme .

InterpretationsThe primary analysis found that Wholesalers were the best medium of communication of sales promotion schemes Sales representatives was the next best with the retailers in favor of the same and Electronic Media affect sales promotion and last Print Media affect the sales promotion scheme.

0. What level of servicing during sales promotion with competitors?Inferior and more frequentsimilar and more frequentSuperior and less frequentSuperior and more frequent

10 35 10 45

0102030405012345Analysis The primary analysis found that the level of servicing during sales promotion vis--vis competitors was Superior and more frequent (45 of the retailers agreed on that). Similar and more frequent was the next best with 35 of the retailers in favor of the same and next best is the Superior and less frequent and Inferior more frequent to equal 10 retailer agreed.

InterpretationsThe primary analysis found that the level of servicing during sales promotion vis--vis competitors was Superior and more frequent and Similar and more frequent was the next best with 35 of the retailers in favor of the same and next best is the Superior and less frequent and Inferior more frequent to equal retailer agreed .

0. WHAT IS THE AFFECT ON SALES PROMOTION SCHEMES ON DIFFERENT AGE GROUP OF CUSTOMER?16-2526-4546-60

30 15 55

0102030405060123Analysis The primary analysis found that 26-45 age group were the most affected by sales promotion (55 of the retailers agreed on that). 16-25 age group was the next best with 30 of the retailers in favor of the same and 26-45 age group was the next best with 15 of the retailerInterpretationsThe primary analysis found that 26-45 age group were the most affected by sales promotion and 16-25 age group was the next best with the retailers in favor of the same and 26-45 age group was the next best with the retailer

0. WHAT PROBLEMS IS FACED DURING & AFTER SALES PROMOTION SCHEMES?

Problem handling Stock outImproper information

45 45 10

01020304050123AnalysisThe primary analysis found that Stock out and Problem handlingwas major problems faced during and after sales promotion schemes (with 45 of the retailers in favor of the same) and Improper information is the retailer in favor at 10 for the Lux soap.InterpretationsThe primary analysis found that Stock out and Problem handling were major problems faced during and after sales promotion schemes and last Improper information is the retailer in favor far the Lux soap .

CONSUMERS ANALYSIAdvertisementBrandFragrance PricePromotionBenefitColorPackagingWord

8 15 10 28 12 13 3 6 5

1. Which is the most preferred criterion for soap selection?

051015202530123456789

Analysis The primary analysis found that Price is the most preferred criterion for soap (28 % of the consumers agreed on that). Brand Value was the next best with 15 of the consumers in favor of the same, Promotion scheme 12 Benefit 13 , Fragrance of soap 10 , Advertisement at 8 , Packaging at 6 , color at 3 and last Word of mouth 5 proffered at the soap selection.InterpretationsThe primary analysis found that Price is the most preferred criterion for soap and Brand Value was the next best with the consumers in favor of the same and next Promotion scheme is less, Benefit is less, Fragrance of soap is less, Advertisement is less, Packagingis less, color is lessand last Word of mouthis less proffered at the soap selection 1. What customer thinks perception about Lux?

Beauty soapNothing SpecialSoap totalSoap for stars

50 11.25 23.75 15

01020304050601234Analysis The primary analysis found that the major perception about Lux is that as a Beauty Soap (50 of the consumers agreed on that). Soap for all was the next best with 23.75 of the consumers in favor of the same and Soap far stars was the next 15 and last Nothing special was the 11.25 perception about Lux.InterpretationsThe primary analysis found that the major perception about Lux is that as a Beauty Soap and. Soap for all was the next best with the consumers in favor of the same and Soap far stars was the next and last Nothing special was the perception about Lux1. WHICH IS THE MOST EFFECTIVE MEDIUM OF SALES PROMOTION?

Personal sellingAdvertisingSales promotion

10 58.75 31.25

Analysis The primary analysis found that Advertising is the most effective medium for sales promotion (58.75 of the consumers agreed on that). Sales Promotion was the next best with 31.25 of the consumers in favor of the same and last Personal selling is the most affective 10 consumer agreed on that.InterpretationsThe primary analysis found that Advertising is the most effective medium for sales promotion. Sales Promotion was the next best with the consumers in favor of the same and last Personal selling is the most affective consumer agreed on that

1. WHAT IS THE IMPACT ON CUSTOMER?

No change buying behaviorBuy it during sales promotionBuy it even after end of scheme Makes you switch Lux

26.25

21.75 38.75 13.75

0102030401234

Analysis The primary analysis found that the type of impact of sales promotion was Continue buying even after sales promotion offer is scrapped (38.75 of the consumers agreed on that). No change in buying behavior was the next best with 26.25 of the consumers in favors of the scheme.Buy it during sales promotionwas the next best with 21.75 of the consumers in favors of the scheme and last Makes you switch Lux was the next best with 13.75 of the consumers in favors of the scheme.InterpretationsThe primary analysis found that the type of impact of sales promotion was Continue buying even after sales promotion offer is scrapped and No change in buying behavior was the next best with the consumers in favor of the same. Buy it during sales promotion was the next best with the consumers in favors of the scheme and last Makes you switch Lux was the next best with the consumers in favors of the scheme

1. WHAT COMMUNICATION OF SCHEME AFFECT ON CUSTOMER?

Company staff Electronic mediaPrint mediaSales representative

11.25 58.75 26.25 3.75

0102030405060701234AnalysisThe primary analysis found that the communication of schemes should be Through electronic media (58.75 of the consumers agreed on that). Through print media was the next best with 26.25 of the consumers in favor of the scheme and Company staff was the next best with 11.25 of the consumers in favor and last Sales representative was the next best with 3.75 of the consumers in favor.InterpretationsThe primary analysis found that the communication of schemes should be Through electronic media and Through print media was the next best with the consumers in favor of the scheme and Company staff was the next best with the consumers in favor and last Sales representative was the next best with the consumers in favor

1. WHAT MOST AFFECT ON COMPARISION WITH COMPETITORS?

Similar less frequentSimilar more frequentSuperior less frequentSimilar more frequent

3.75 35 %12.50 %48.75 %

01020304050601234

Analysis The primary analysis found that Luxs promotion schemes were Superior and more frequent vis--vis its (48.75% of the consumers agreed on that). Similar and more frequent was the next best with 35% of the consumers in favor of the schemeSuperior less frequent was the next best with 12.50% of the consumers in favor of the scheme and lastSimilar more frequent was the next best with 3.75% of the consumers in favor of the scheme InterpretationsThe primary analysis found that Luxs promotion schemes were Superior and more frequent vis--vis it and. Similar and more frequent was the next best with the consumers in favor of the scheme and next Superior less frequentwas the next best with of the consumers in favor of the scheme and last Similar more frequent was the next best with the consumers in favor of the scheme.

Chapter -5Finding&RecommendationFinding: The primary analysis found that Price off is the best sales promotion schemes offered on Lux (40% of the retailers agreed on this). Product Bundling was the next best with 30% of the retailers in favor of the same and Prizes sales promotion 15 % agreed, Cross promotion is get 10 % and last Cash refund toCash refund 5 % agreed . The primary analysis found that sales promotion schemes offered on Lux caused an Increase in sales (75% of the retailers agreed on that). Cant say was the next best opinion with 15% of the retailers in favor of the same and 10 % no affect due to promotional scheme The primary analysis found that Wholesalers were the best medium of communication of sales promotion schemes (40% of the retailers agreed on that). Sales representatives was the next best with 25% of the retailers in favor of the same and 20 % Electronic Media affect sales promotion and last 15 % Print Media affect the sales promotion scheme. The primary analysis found that the level of servicing during sales promotion vis--vis competitors was Superior and more frequent (45% of the retailers agreed on that). Similar and more frequent was the next best with 35% of the retailers in favor of the same and next best is the Superior and less frequent and Inferior more frequent to equal 10 % retailer agreed . The primary analysis found that 26-45 age groupwere the most affected by sales promotion (55% of the retailers agreed on that). 16-25 age group was the next best with 30% of the retailers in favor of the same and 26-45 age group was the next best with 15 % of the retailer The primary analysis found that Stock outand Problem handling was major problems faced during and after sales promotion schemes (with 45% of the retailers in favor of the same) and Improper information is the retailer in favor at 10 % for the Lux soap. The primary analysis found that Price is the most preferred criterion for soap (28 % of the consumers agreed on that). Brand Value was the next best with 15% of the consumers in favor of the same, Promotion scheme 12 %, Benefit 13 %, Fragrance of soap 10 %, Advertisementat 8 %, Packaging at 6 %, colorat 3 % and last Word of mouth 5 % proffered at the soap selection. The primary analysis found that the major perception about Lux is that as a Beauty Soap (50% of the consumers agreed on that). Soap for all was the next best with 23.75% of the consumers in favor of the same and Soap far stars was the next 15 % and last Nothing special was the 11.25 % perception about Lux , The primary analysis found that Advertising is the most effective medium for sales promotion (58.75% of the consumers agreed on that). Sales Promotion was the next best with 31.25% of the consumers in favor of the same and last Personal selling is the most affective 10 % consumer agreed on that The primary analysis found that the type of impact of sales promotion was Continue buying even after sales promotion offer is scrapped (38.75% of the consumers agreed on that). No change in buying behavior was the next best with 26.25% of the consumers in favors of the scheme.Buy it during sales promotionwas the next best with 21.75% of the consumers in favors of the scheme and lastMakes you switch Lux was the next best with 13.75 % of the consumers in favors of the scheme. The primary analysis found that the communication of schemes should be Through electronic media(58.75% of the consumers agreed on that).Through print media was the next best with 26.25% of the consumers in favor of the scheme and Company staffwas the next best with 11.25% of the consumers in favor and last Sales representative was the next best with 3.75% of the consumers in favor.

RECOMMENDATIONS: They should provide more promotions like price-offs and samples. Retentive strategy required as the soap segment is in the mature stage of its product life cycle Line extension probably with more variants catering to the beauty segment like natural, Herbal soap etc. Liquid body wash is currently in the growth stage Lux should come out with more variants in this segment. Level of servicing is low during sales promotion schemes this could be brought up. It is having only 19.8 % rural market presentation which could be further enhanced.

Chapter - 6Conclusion & LimitationCONCLUSION:Lux soap was launched in India in 1929. The first bar of Lux was made in India and sold for a princely sum of two Annas in 1934. From the very first advertisement in 1929 featuring Lila Chitnis, the gorgeous faces of the silver screen have come out in the open with their beauty secret Lux.The LUX Trade Character or Logo is p