Department of business studiesA Project report On CONSUMER BEHAVIOR TOWARD LUX SOAP

UNDER THE GUIDENCE OF MS. KANGAN JAIN

SUBMITTED BY- ROHIT KUMARBBS 2ND YEARROLL NO.-2063

Declaration

I hereby declare that this Project Report titled Business Research Project on Consumer Behaviour towards LUX SOAPS submitted to the Department of Business Studies, Keshav Mahavidyalaya (Delhi University) is a record of original work done by me under the guidance of Ms. Kangan Jain.

The information and data given in the report is authentic to the best of my knowledge.

This Project Report is not submitted to any other university or institution for the award of any degree, diploma or fellowship or published any time before.

-ROHIT KUMAR

ACKNOWLEDGEMENT

This project is a result of dedicated effort. It gives us immense pleasure to prepare this report on CONSUMER BEHAVIOR TOWARD LUX SOAPI would like to thank my project guide, Ms. Kangan Jain for consultative help and constructive suggestion on matter in this project. I would like to thank my parent and my colleagues who helped me in making in this project a successful one

S.NO. TOPICPAGE NO.

1INTRODUCTION1-2

2INDUSTRY PROFILE2-4

3COMPANY PROFILE5-6

4OBJECTIVE7

5LIMITATION7

6PRODUCT PROFILE8-9

7SUMMARY OF RESPONSES10-20

8ANNEXURE21-25

INTRODUCTIONConsumer 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 1960s with no body of research of its own, the discipline borrowed heavily from concepts developed in other scientific disciplines, such as Psychology (study of individuals), Sociology (Study of groups), Social psychology ( study of how an individual operates in groups), Anthropology ( the influence of society on individuals) and Economies.

The initial thrust of consumer behavior was from a managerial prospective, marketing manager wanted to know the specific causes of consumer behavior. They also wanted to know how people receive store and use consumption related information so that they could design marketing strategies to influence consumption decision. They regard consumer behavior disciplines as an applied marketing science.There are number of reasons why the study of consumer behavior was developed as a separate marketing discipline. Marketers had long noted that consumer did not act or react as marketing theory would suggest. The size of the consumer market in every country is vast and constantly expanding. Large amount were being spent on goods and services by millions of peoples. Consumer preference were changing and becoming highly diversified. Even in industrial markets, where needs for goods and services were always more homogeneous than in consumer markets, buyers were exhibiting diversified preference and less predictable purchase behavior.As marketing people began to study the buying behavior of consumer, they soon realized that despite a sometimes mo too approach to fact and fashions, many consumer rebelled at using the identical product everyone else used. Instead they preferred differentiated product that they felt reflected their own special new personalities and life styles. So by studying consumer behavior marketing people will be able to needs of different groups of customers more efficiently.

INDUSTRY PROFILEABOUT 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.

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, incomeConsumption, 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 followsCOMPANIES

MARKET SHARES

HUL60

TATA OIL MILLS13

DOVE07

GODREJ SOAPS05

NIRMA08

OTHERS07

MARKET SCENARIOOf 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 SOAPSThe Following table lists the key brands of the main companies.COMPANYBRANDSEGMENTATION

Godrej soapsCintholPremium

Godrej no 1Popular

MarvelPopular

Lifebuoy(plus,gold,family,liquid)Carbolic

HULLux(international,Premium

DovePremium

Face washes,Shower gel)Premium

Liril,pears,Premium

Jai,breezePopular

P&GCamayPremium

WIPROSantoor,baby softPremium

Wipro shikakaiPopular

KS&DLMy sore sandal soapPremium

My sore sandal goldPremium

HENKET-SPICMargoPopular

COLGATE-PALMOLIVEPalmolive natural

Premium

COMPANY PROFILE Hindustan unilever limited is the Indian established of the worlds 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.Ls 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 wealths of knowledge and international expertise to the service of local customer a truly multi-local multinational. H.U.Ls 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 Limiteds road sustainable, profitable growth for our business and long term value creation for our shareholders and employees.To realize this commitment which H.U.L has from the consumers, employees, the society and the environment, it has set for itself certain sacrosanct policies and principles. These policies and practices, has earned H.U.L the goodwill and trust of people across the country.It is certainly H.U.Ls brands and its people, but also its support systems. H.U.Ls research centre is the largest private sector industrial research laboratory of its kind in India. H.U.Ls 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.

MARKETING HUL is present in home and personal care and Foods & Beverages categories. HUL and group companies have about 40,000 employees, including 1425 managers. For marketing HUL divides the country into four regions, with regional branches in Delhi, Kolkata, Chennai and Mumbai. Headed by a regional manager, they comprise regional sales manager and area sales manager, assisted by dedicated field forces, comprising sales officers and territory sales in charges. In marketing, each category has a marketing manager who heads a team of brand managers dedicated to each or a group of brands. The brand managers, wherever appropriate, focus exclusively on brand strategy or implementation.

MANUFACTURING Each division has a nationwide manufacturing base, with each factory peopled by teams of production, engineering, quality assurance, commercial and personal managers.

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

LIMITATIONS: The study is limited to ELECTRONIC MAIL 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 ELECTRONIC MAIL, by keeping in view of time period allotted.

On few occasions consumer may be biased in giving information.

Samples size is restricted to 58 only due to paucity of time.

PRODUCT PROFILELux 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. 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. LUXs logo is a silhouette profile of a dove, the color of which often varies. LUXs 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.LUX has grown from a US-only soap bar into one of Unilevers biggest gl brand, and #3 in the Anglo-Dutch companys 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 & Gambles Olay, Beiersd Neutrogena, all of which have a similarly broad product range

SUMMARY OF RESPONSES OF MY QUESTIONNAIRE58 responsesSummary1. NameRahulsaket anandSarthakmadan maviRavi kumarMOHIT KUMARpradipHiteshchirag jainkakuli khanrayaminiPiyush SharmaPawan Kumarmanish kumarriya chaturvediAnand Vermashubham ranaGaurav Sukhijachetnariyasatvineet singhpankajvinayROHIT KUMARdivyakeshav krishanomidgeetanjali thakurgauravANKIT SHARMANavneetMeghnaAshishbharatDimple aryadeepanshu chaudharyBhavya GargPuneet KaurMaria ElenaAkshaysalmeit kaurGulshanDivyarahul rajakanksha setiachasmindaAabidsarthakShilpagauravkawaljeetBaljeet Kaurpriyanka rawatArpit THIS ARE ALL THE PEOPLE WHO FILLED MY QUESTIONNAIRE2. Age3937222320+191816212020 20 21 22 19 18 19 20 20 22 22 21 21 21 21 21 18 19 19 19 20 20 20 20 20 20 22 21 20 19 19 23 20 23 22 20 19 21 22 21 20 23 25 26 21 20 21 years19yrsAverage age rage lies b/w 19-223. Gender

male3564%

Female2036%

64% out of 100% are male and rest 20 % are female4. Occupation:B.scStudentTeacherstudystudenthousewifeSTUDENTMedical studentStudent5. Family monthly income

1,00,000713%

6. Family type

Joint1934%

Nuclear3766%

7. Do you use soaps for every bath/ shower:

Yes5496%

No24%

96% people like use soap while taking bath out of 100% rest 4% avoid using it because of skin sensitiveness or they they like to use liquid soaps while taking bath.8. How many bath soaps do you personally require every month?

1814%

22646%

31120%

4 and above1120%

The above figure shows the no. of soaps use by person for their personal use in a month. The result shows that out of 100%, 46 % people use 2 soaps for their personal use in a month, 20% people use 3 soaps, 20% people use 4 or more and rest 14% use only 1 soaps for their personal use monthly.9. How many bath soaps do you buy for your household every month?

359%

4713%

5916%

6 And Above3563%

The figure above shows the total no. of soaps used by the whole family of a person10. Which kind of bath soaps do you like?

Foamy1713%

Thick lather65%

Transparent65%

Milky3325%

Colored32%

Glycerin1411%

Medicinal2217%

Neem1915%

Sandal118%

In this question, we asked people about types of soaps people use. So, maximum (25%) people like to use milky soaps because people like it for gentleness to skin. 17 % like foamy, 5 %like thick lather, 5 % like transparent, 2% like colored, 11% like glycerin, 17 % like medicinal, 15 % like neem, 11% like sandal11. What is the maximum price you spend for standard sized bath soap?3540100 - 20050-60222530151 dollar20100908015-30/pics70Rs.40 approx40-5045465012. What is the average price you have paid in recent months for bath soap?351502p424050(4 mnths average)20025around 300 to 4003014Rs.100 approx201009010881253001,5o dollar707540-50not remembercan't recall471405013. Which brand do you prefer the most?

Lux713%

Dove2140%

Lifebuoy1223%

Hammam00%

Other1223%

This is the total brand preference of soaps by different persons. So, maximum people like to use dove because dove is very well known brand for its gentleness to skin, 23% of people prefer to use lifebuoy, 23 % use other soaps, only 13% people use lux which states that this particular brand is not very popular among the peoples. This is because of very intense competition in soap industry. 14. Do you change from one brand of soap to another?

Yes2953%

No2647%

53% people used to switch their soaps brand to another because either they were not satisfied from their current brand they are using or they are influenced by the other brand.15. If yes, How often did you change brands in the last 6 months?

Once1133%

Twice927%

Many times1339%

The data is given here about how many times a person switch their soap brand in past 6 month. 33% people changed only once, 27% people change twice and 39 % changed many times 16. Have you ever used Lux soap, If yes which things you like most in it?

Perfume2130%

Color812%

lather710%

Hygienic913%

protect skin and suits your skin1217%

value for money1217%

Other00%

Features which are liked by lux users are perfume(30%), color (12%), lather (10%), hygienic (13%), protect and suits skin (17%), value for money (17%)17. If no, it is because:

Lack of awareness312%

Lack of availability14%

You find it expensive312%

You dont like the product1768%

Other14%

Reason behind why people not able to use lux soaps is that maximum people(68%) dont like the product, lack of awareness (12%), find it expensive(12%) and other reason (1%)18. You came to know about Lux soap from:

Newspaper advertisements1317%

Radio23%

TV advertisements4661%

Word of mouth1013%

Point of sale34%

Other11%

The outcome shows that TV. advertisement plays a very important role to educate people about the product. 61% out of 100% influenced by only TV ads. Rest influenced by the newspaper ads (17%), radio (3%), word of mouth (13%), point of sale (4%) and others (1%) 19. Do you remember any of the TV advertisements of Lux soap?

yes4789%

no611%

20. Does celebrity endorsement prompt you to purchase Lux soap?

yes1834%

no3566%

21. Have you tried new variants of Lux soap after viewing the advertisements?

yes2036%

no3564%

64% people like have not tried the new variants of lux, the reason for not trying might be that the variant is not available into the market, or they have no trust on the new variants 22. Which of the offers available influence you the most to purchase Lux Soap?

Discounts offer511%

Buy one get one1532%

Combo pack2553%

Other24%

In this we can see that maximum people(53%) influenced by the combo offers provided by the company because on that scheme tey can get more discount while purchasing. Rest mat be influenced by discount offer (11%), buy one get one free (32%), and other(4%) 23. Is Lux Soap easily available to you?

yes5398%

no12%

98% people said that lux soap is easily available to their locality because lux is a very well-known international brand in many countries24. From where do you usually purchase Lux Soap?

Nearby Store3471%

Retail Store1225%

Whole Seller24%

Maximum people (71%) like to purchase soaps from their nearby store because these stores are located near to their house and people find it very convenient to purchase from there. Another reason may be that the nearby seller may influence the buyer decision because they have very contact with customer to their locality & may have complete knowledge about the product. Rest of that purchase from retail outlets (25%) and whole seller (4%) the reason might be that they get handsome discount while purchasing from them, or they like to purchase in bulk.25. Which type of Lux Soap you like the most?

Peach Milk715%

Cream Milk2146%

Pink Cream920%

Badam Milk920%

Here the preference is given for the lux soaps by the respondents who use it. So maximum 46% people like luxs cream milk soap because Refresh and replenish skin after a long days work withluxcreamy white. This soap is enriched with ultra-caring Swiss moisturizers which makes the bar so creamy that it feels like dollopof cream in your hand. The soap produces a luxurious lather and glides smoothly on the skin to make it smooth and moisturized. Rest 54% like the other varieties available in the market, i.e. peach cream (7%), pink cream (20%), badam milk (20%)26. What is the size of the Lux Soap you usually purchase?

100g1737%

200g2554%

300g49%

So the maximum people (54%) like to purchase bar of 200g, because this size is easily available into the market because and fit into their budget 27. How frequently you purchase Lux Soap?

Every Week613%

Every fortnight24%

Every month613%

Occasionally3270%

So, as we can see here lux soaps is not very popular into the indian market because of very intense competition in soap industry. 70% people purchase it occasionally, rest of them purchase it every week(13%), every fortnightly(4%), every month(13%)

AnnexureANALYSIS OF CONSUMER BEHAVIOR TOWARD LUX SOAPTop of Form1. Name

2. Age

3. Gender male female4. Occupation:

5. Family monthly income 1,00,0006. Family type Joint Nuclear7. Do you use soaps for every bath/ shower: Yes No8. How many bath soaps do you personally require every month? 1 2 3 4 and above9. How many bath soaps do you buy for your household every month? 3 4 5 6 And Above10. Which kind of bath soaps do you like? Foamy Thick lather Transparent Milky Colored Glycerin Medicinal Neem Sandal11. What is the maximum price you spend for standard sized bath soap?

12. What is the average price you have paid in recent months for bath soap?

13. Which brand do you prefer the most? Lux Dove Lifebuoy Hammam Other:14. Do you change from one brand of soap to another? Yes No15. If yes, How often did you change brands in the last 6 months? Once Twice Many times16. Have you ever used Lux soap, If yes which things you like most in it? perfume color lather hygienic protect skin and suits your skin value for money Other:17. If no, it is because: Lack of awareness Lack of availability You find it expensive You dont like the product Other:18. You came to know about Lux soap from: Newspaper advertisements Radio TV advertisements Word of mouth Point of sale Other:19. Do you remember any of the TV advertisements of Lux soap? yes no20. Does celebrity endorsement prompt you to purchase Lux soap? yes no21. Have you tried new variants of Lux soap after viewing the advertisements? yes no22. Which of the offers available influence you the most to purchase LuxSoap? Discounts offer Buy one get one Combo pack Other:23. Is Lux Soap easily available to you? yes no24. From where do you usually purchase Lux Soap? Nearby Store Retail Store Whole Seller25. Which type of Lux Soap you like the most? Peach Milk Cream Milk Pink Cream Badam Milk26. What is the size of the Lux Soap you usually purchase? 100g 200g 300g27. How frequently you purchase Lux Soap? Every Week Every fortnight Every month Occasionally