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Department of business studies
A
Project report
On
CONSUMER BEHAVIOR TOWARD LUX SOAP

UNDER THE GUIDENCE OF
MS. KANGAN JAIN

SUBMITTED BY- ROHIT KUMAR
BBS 2ND YEAR
ROLL NO.-2063
Declaration
I hereby declare that this Project Report titled “Business
Research Project on Consumer Behaviourtowards 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
SOAP”
I 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. TOPIC

PAGE
NO.

1

INTRODUCTION

1-2

2

INDUSTRY PROFILE

2-4

3

COMPANY PROFILE

5-6

4

OBJECTIVE

7

5

LIMITATION

7

6

PRODUCT PROFILE

8-9

7

SUMMARY OF RESPONSES

10-20

8

ANNEXURE

21-25
INTRODUCTION
Consumer is the king of any business activity. It is very important for any
marketing person to know how the consumer perceives different things and
how he behaves accordingly. So consumer research is imperative for the
success of any marketing effort. Hence an attempt is made in the present
Chapter to study the behavior and perception of consumer.First of all
perception is defined as the process of receiving, selecting organizing,
interpreting, checking and reacting to sensory stimuli or data.
Consumer behavior is defined as “behavior that consumer display in searching
for purchasing, using evaluating and disposing of product and services that
they expect will satisfy their needs”.
The study of consumer behavior is the study of how the individuals make
decision to spend their available resources like time, money, effort, etc, on
consumption related items. It includes the study of what they buy, when they
buy it, why they buy it, where they buy it, how often they buy it and often use
it.
As marketer, it is important to recognize why and how individuals make their
consumption decision, so that we make better strategic marketing decision. If
marketer understand consumer behavior they are able to predict how
consumer are likely to react to various information and environmental cues
and are able to shape their marketing strategies accordingly. With out doubt,
marketers who understand consumer behavior will have great competitive
edge in the market.
Consumer behavior is relatively new field of study in the mid-to-late 1960’s
with no body of research of its own, the discipline borrowed heavily from
concepts developed in other scientific disciplines, such as Psychology (study of
individuals), Sociology (Study of groups), Social psychology ( study 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 PROFILE
ABOUT THE SOAP INDUSTRY:
ORIGIN OF SOAP INDUSTRY:
History of soap dates way back from 2350 years. Soap manufacturing was
started in North America. Early in the history of Europe colonies and of the
republic. Some American companies with currently well-known names were
started 50 to 200 years ago. During middle ages, soap was made at various
places in Italy, France, Spain, England and possible other countries.
Mankind knew about soap nearly 200 years back 70 A.D. when Mr.Pllny and
Mr. elder evidentially discovered the soap when roasted meat over flowed on
the flow in ashes. This lump like product was soap and had foaming and
cleansing character. Since then 1192 A.D. that in the first time detergent was
taken in London. It is in 1931 A.D. that in the first time detergent was
discovered by Mr.Grency with the sulphated olive oil and almond oil. The
wood consumption of soap in 1884 A.D. was said to be lakhs/ton per annum
and it was in this year Mr.W.H.L. ever entered the field of the soap making in a
big way.
SOAP INDUSTRY IN INDIA:
Soap industry in India began with M/S Godrej setting up their manufacturing
unit in 1918 at Mumbai and M/S government soap factory in Bangalore. The
industry stagnated due to the in informed price control. The industry soon
recovered and experienced sharp ups wing during 1974.
PROBLEMS OF SOAP INDUSTRY:
Soap industry faces some problems in the case of raw materials. The major
ingredients like soap ash, linear alkyl, benzene and sodium Tripoli phosphate
poses number of series in terms of availability.
The demand supply gap to vegetable oil is 1.5-2 lakhs tons and is met through
imports. In recent months, price of caustic soda has shown a rising trend. The
contents of soda ash in the cheaper varieties of soap are quite high.

FUTURE OF SOAP INDUSTRY:
The growth prospects seems to be enormous considering the fact that the
percapita income consumption in India is as low at 0.30kg over the year we
have M/S HUL, M/S TAMCO,LUX etc., leading the industry in the field of soap
manufacture, growth of population, income
Consumption, expenditure increased in urban cities spread of education,
growing degree of personal hygiene etc., has increased by the spread of
audio-visual media, rising incomes and general consciousness about the
health.
ABOUT THE BUSINESS:
Major players & market shares:
Hindustan Unilever ltd., (HUL) is the leader for the toilet soap industry in
India with a 60% share in the market. Other major players from LUX is facing
competition are Godrej soaps, Wipro, Procter & Gamble, Colgate Palmolive,
Johnson & Johnson etc.,
Their market shares is as follows

COMPANIES

MARKET SHARES

HUL

60

TATA OIL MILLS

13

DOVE

07

GODREJ SOAPS

05

NIRMA

08

OTHERS

07
MARKET SCENARIO
Of the nearly 7 lakhs tons toilet soap, market for 500 tons comes from the
premium segment, 3 lakhs tons won carbolic segment and the rest are from
the batting or popular segment.There are 40 brands in the total toilet soap
market. In the popular segment Liril, Cinthol, Palmolive, Lux international have
been well established in the market. In the popular segment lux, rexona,
hamam, santore have a strong presence while among the carbolic soap
lifebuoy, Ok, nirma have proved their worth.
The important point is that the price of the soap between the various brands
generally varies between 50 paise and rupee.The soap industry does not face
serious problems to the raw materials front.
In recent times, the price of caustic soda have shows a using trend. This
contents of soda ash is the cheaper varieties of soap in quite higher linear
alkyls benzene, being an important input in manufacture of soaps the future of
this soap industry is very much dependent on this input. It is capital incentives
during the around in 700-800 cores.

SEGMENTATION OF SOAPS
The Following table lists the key brands of the main companies.
COMPANY

BRAND

SEGMENTATION

Godrej soaps

Cinthol

Premium

Godrej no 1

Popular

Marvel

Popular

Lifebuoy(plus,
gold,family,liquid)

Carbolic

Lux(international,

Premium

Dove

Premium

HUL
Face washes,
Shower gel)

Premium

Liril,pears,

Premium

Jai,breeze

Popular

P&G

Camay

Premium

WIPRO

Santoor,baby soft

Premium

Wipro shikakai

Popular

My sore sandal soap

Premium

My sore sandal gold

Premium

HENKET-SPIC

Margo

Popular

COLGATEPALMOLIVE

Palmolive natural

Premium

KS&DL
COMPANY PROFILE
Hindustanunilever limited is the Indian established of the world’s most famous
multinational company namely unilever limited. This is a very pros porous
company is the FMCG segment i.e., the fast moving consumer goods. The
company has very much well established R&D supports and a good marketing
practices and network.
The main purpose of Hindustanunilever limited is to meet the everyday needs
of people everywhere-to anticipate the aspirations of our consumer and
customer and to responds creatively and competitively with branded products
and services which raise the quality of life. H.U.L’s deep roots in local culture
and markets around the worlds are its unparallel inheritance and the
foundation for our future growth. H.U.L will brings its wealth’s of knowledge
and international expertise to the service of local customer – a truly multi-local
multinational. H.U.L’s long term success requires a total commitment to
exceptional standards of performs and productivity, to working together
effectively and to a willingness to embrace new ideas and learn continuously.
H.U.L believes that to succeed requires the highest standards of corporate
behavior towards its employees, the consumers, the societies and world in
which we live.
This is HindustanunileverLimited’s 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.L’s brands and its people, but also its support systems.
H.U.L’s research centre is the largest private sector industrial research
laboratory of its kind in India. H.U.L’s enviable reach in the remote heartland
make its kind in India.
H.U.L understands the importance of savings for the future generation, the
simple pleasures that our planet has continuously offered. Necessary
measures that H.U.L has enforced in its factories for environment protection
and pollution control, H.U.L has also taken up projects on energy conservation,
watershed management, tree plantation and soil conservation.
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 occasion’s consumer may be biased in giving information.
 Samples size is restricted to 58 only due to paucity of time.
PRODUCT PROFILE
Lux is a global brand developed byUnilever. 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. LUX’s logo is a silhouette profile of a dove, the color of which often
varies.
LUX’s products include: antiperspirants/deodorants, body washes, beauty
bars, lotions/moisturizers, hair care and facial care products.
In the US, LUX bar soap is currently produced in the cool moisture, exfoliating,
sensitive skin unscented, nutrium nourishing, white, pink, calming night, proage, 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 Unilever’s biggest gl brand,
and #3 in the Anglo-Dutch company’s portfolio behind Knorr and Lirextend the
brand across the complete personal care spectrum, and LUX now soap to
shower gel, and from deodorants to shampoo-conditioners. LUX has for its
marketing. In 2003 Ogilvy & Mather launched a series of ads for Dc women.
The brand competes fiercely with Procter & Gamble’s Olay, Beiersd
Neutrogena, all of which have a similarly broad product range
SUMMARY OF RESPONSES OF MY QUESTIONNAIRE

58 responses
Summary
1. Name
Rahul saketanand Sarthak madanmavi Ravi kumar MOHIT
KUMAR pradip Hitesh chiragjain kakulikhanra yamini Piyush Sharma Pawan
Kumar manishkumar riyachaturvedi AnandVerma shubhamrana GauravSukhija chetna riyasat vineets
ingh pankaj vinay ROHIT KUMAR divya keshavkrishan omid geetanjalithakur gaurav ANKIT
SHARMA Navneet Meghna Ashish bharat Dimple
arya deepanshuchaudhary BhavyaGarg PuneetKaur Maria
Elena Akshay salmeitkaur Gulshan Divya rahul
raj akankshasetia chasminda Aabid sarthak Shilpa gaurav kawaljeet BaljeetKaur priyankarawat Arpit

THIS ARE ALL THE PEOPLE WHO FILLED MY QUESTIONNAIRE

2. Age
39 37 22 23 20+ 19 18 16 21 20 20 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 years 19yrs

Average age rage lies b/w 19-22

3. Gender

male

35 64%

Female

20 36%

64% out of 100% are male and rest 20 % are female

4. Occupation:
B.sc Student Teacher study student housewife STUDENT Medical student Student
5. Family monthly income

<25,000

12

23%

25,000-50,000

14

27%

50,000-75,000

10

19%

75,000-1,00,000

9

17%

>1,00,000

7

13%

6. Family type

Joint

19 34%

Nuclear

37 66%

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

54 96%

No

2 4%

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?

1

8 14%

2

26 46%

3

11 20%

4 and above

11 20%

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?

3

5 9%

4

7 13%
5
6 And Above

9 16%
35 63%

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

17 13%

Thick lather

6 5%

Transparent

6 5%

Milky

33 25%

Colored

3 2%

Glycerin

14 11%

Medicinal

22 17%

Neem

19 15%

Sandal

11 8%

In this question, we asked people about types of soaps people use. So, maximum
(25%) people like to use milky soaps because people likeit 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 sandal

11. What is the maximum price you spend for standard sized bath
soap?
35 40 100 - 200 50-60 22 25 30 15 1 dollar 20 100 90 80 15-30/pics 70 Rs.40 approx 40-50 45 46 50

12. What is the average price you have paid in recent months for bath
soap?
35 150 2p 42 40 50(4 mnths average) 200 25 around 300 to 400 30 14 Rs.100
approx 20 100 90 10 88 125 300 1,5o dollar 70 75 40-50 not remembercan't recall 47 140 50

13. Which brand do you prefer the most?
Lux

7 13%

Dove

21 40%

Lifebuoy

12 23%

Hammam

0 0%

Other

12 23%

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?

Yes

29 53%

No

26 47%

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?
Once

11 33%

Twice

9 27%

Many times

13 39%

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?
Perfume

21 30%

Color

8 12%

lather

7 10%

Hygienic

9 13%

protect skin and suits your skin

12 17%

value for money

12 17%

Other

0 0%

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 awareness

3 12%

Lack of availability

1 4%

You find it expensive

3 12%

You don’t like the product
Other

17 68%
1 4%

Reason behind why people not able to use lux soaps is that maximum people(68%)
don’t 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 advertisements
Radio

13 17%
2 3%

TV advertisements

46 61%

Word of mouth

10 13%

Point of sale

3 4%

Other

1 1%

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?
yes

47 89%

no

6 11%

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

yes

18 34%

no

35 66%

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

yes

20 36%

no

35 64%

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 offer

5 11%

Buy one get one

15 32%

Combo pack

25 53%

Other

2 4%

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?

yes

53 98%

no

1 2%

98% people said that lux soap is easily available to their locality because lux is a
very well-known international brand in many countries

24. From where do you usually purchase Lux Soap?
Nearby Store

34 71%

Retail Store

12 25%

Whole Seller

2 4%

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 Milk

7 15%

Cream Milk

21 46%

Pink Cream

9 20%

Badam Milk

9 20%

Here the preference is given for the lux soaps by the respondents who use it. So
maximum 46% people like lux’s cream milk soap because Refresh and replenish
skin after a long day’s work with lux creamy white. This soap is enriched with
ultra-caring Swiss moisturizers which makes the bar so creamy that it feels like
dollop of 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?

100g

17 37%

200g

25 54%

300g

4 9%

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 Week

6 13%

Every fortnight

2 4%

Every month

6 13%

Occasionally

32 70%

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%)
Annexure
ANALYSIS OF CONSUMER BEHAVIOR
TOWARD LUX SOAP
1. Name

2. Age

3. Gender
male
female
4. Occupation:

5. Family monthly income
<25,000
25,000-50,000
50,000-75,000
75,000-1,00,000
>1,00,000
6. Family type
Joint
Nuclear
7. Do you use soaps for every bath/ shower:
Yes
No
8. How many bath soaps do you personally require every month?
1
2
3
4 and above
9. How many bath soaps do you buy for your household every month?
3
4
5
6 And Above
10. Which kind of bath soaps do you like?
Foamy
Thick lather
Transparent
Milky
Colored
Glycerin
Medicinal
Neem
Sandal
11. 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
No
15. If yes, How often did you change brands in the last 6 months?
Once
Twice
Many times
16. 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 don’t 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
no
20. Does celebrity endorsement prompt you to purchase Lux soap?
yes
no
21. Have you tried new variants of Lux soap after viewing the advertisements?
yes
no
22. 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
no
24. From where do you usually purchase Lux Soap?
Nearby Store
Retail Store
Whole Seller
25. Which type of Lux Soap you like the most?
Peach Milk
Cream Milk
Pink Cream
Badam Milk
26. What is the size of the Lux Soap you usually purchase?
100g
200g
300g
27. How frequently you purchase Lux Soap?
Every Week
Every fortnight
Every month
Occasionally

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Consumer behavior research on Lux soap

  • 1. Department of business studies A Project report On CONSUMER BEHAVIOR TOWARD LUX SOAP UNDER THE GUIDENCE OF MS. KANGAN JAIN SUBMITTED BY- ROHIT KUMAR BBS 2ND YEAR ROLL NO.-2063
  • 2. Declaration I hereby declare that this Project Report titled “Business Research Project on Consumer Behaviourtowards 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
  • 3. ACKNOWLEDGEMENT This project is a result of dedicated effort. It gives us immense pleasure to prepare this report on “CONSUMER BEHAVIOR TOWARD LUX SOAP” I 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
  • 4. S.NO. TOPIC PAGE NO. 1 INTRODUCTION 1-2 2 INDUSTRY PROFILE 2-4 3 COMPANY PROFILE 5-6 4 OBJECTIVE 7 5 LIMITATION 7 6 PRODUCT PROFILE 8-9 7 SUMMARY OF RESPONSES 10-20 8 ANNEXURE 21-25
  • 5. INTRODUCTION Consumer is the king of any business activity. It is very important for any marketing person to know how the consumer perceives different things and how he behaves accordingly. So consumer research is imperative for the success of any marketing effort. Hence an attempt is made in the present Chapter to study the behavior and perception of consumer.First of all perception is defined as the process of receiving, selecting organizing, interpreting, checking and reacting to sensory stimuli or data. Consumer behavior is defined as “behavior that consumer display in searching for purchasing, using evaluating and disposing of product and services that they expect will satisfy their needs”. The study of consumer behavior is the study of how the individuals make decision to spend their available resources like time, money, effort, etc, on consumption related items. It includes the study of what they buy, when they buy it, why they buy it, where they buy it, how often they buy it and often use it. As marketer, it is important to recognize why and how individuals make their consumption decision, so that we make better strategic marketing decision. If marketer understand consumer behavior they are able to predict how consumer are likely to react to various information and environmental cues and are able to shape their marketing strategies accordingly. With out doubt, marketers who understand consumer behavior will have great competitive edge in the market. Consumer behavior is relatively new field of study in the mid-to-late 1960’s with no body of research of its own, the discipline borrowed heavily from concepts developed in other scientific disciplines, such as Psychology (study of individuals), Sociology (Study of groups), Social psychology ( study 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
  • 6. 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 PROFILE ABOUT THE SOAP INDUSTRY: ORIGIN OF SOAP INDUSTRY: History of soap dates way back from 2350 years. Soap manufacturing was started in North America. Early in the history of Europe colonies and of the republic. Some American companies with currently well-known names were started 50 to 200 years ago. During middle ages, soap was made at various places in Italy, France, Spain, England and possible other countries. Mankind knew about soap nearly 200 years back 70 A.D. when Mr.Pllny and Mr. elder evidentially discovered the soap when roasted meat over flowed on the flow in ashes. This lump like product was soap and had foaming and cleansing character. Since then 1192 A.D. that in the first time detergent was taken in London. It is in 1931 A.D. that in the first time detergent was discovered by Mr.Grency with the sulphated olive oil and almond oil. The wood consumption of soap in 1884 A.D. was said to be lakhs/ton per annum and it was in this year Mr.W.H.L. ever entered the field of the soap making in a big way. SOAP INDUSTRY IN INDIA: Soap industry in India began with M/S Godrej setting up their manufacturing unit in 1918 at Mumbai and M/S government soap factory in Bangalore. The industry stagnated due to the in informed price control. The industry soon recovered and experienced sharp ups wing during 1974. PROBLEMS OF SOAP INDUSTRY:
  • 7. 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 percapita income consumption in India is as low at 0.30kg over the year we have M/S HUL, M/S TAMCO,LUX etc., leading the industry in the field of soap manufacture, growth of population, income Consumption, expenditure increased in urban cities spread of education, growing degree of personal hygiene etc., has increased by the spread of audio-visual media, rising incomes and general consciousness about the health. ABOUT THE BUSINESS: Major players & market shares: Hindustan Unilever ltd., (HUL) is the leader for the toilet soap industry in India with a 60% share in the market. Other major players from LUX is facing competition are Godrej soaps, Wipro, Procter & Gamble, Colgate Palmolive, Johnson & Johnson etc., Their market shares is as follows COMPANIES MARKET SHARES HUL 60 TATA OIL MILLS 13 DOVE 07 GODREJ SOAPS 05 NIRMA 08 OTHERS 07
  • 8. MARKET SCENARIO Of the nearly 7 lakhs tons toilet soap, market for 500 tons comes from the premium segment, 3 lakhs tons won carbolic segment and the rest are from the batting or popular segment.There are 40 brands in the total toilet soap market. In the popular segment Liril, Cinthol, Palmolive, Lux international have been well established in the market. In the popular segment lux, rexona, hamam, santore have a strong presence while among the carbolic soap lifebuoy, Ok, nirma have proved their worth. The important point is that the price of the soap between the various brands generally varies between 50 paise and rupee.The soap industry does not face serious problems to the raw materials front. In recent times, the price of caustic soda have shows a using trend. This contents of soda ash is the cheaper varieties of soap in quite higher linear alkyls benzene, being an important input in manufacture of soaps the future of this soap industry is very much dependent on this input. It is capital incentives during the around in 700-800 cores. SEGMENTATION OF SOAPS The Following table lists the key brands of the main companies. COMPANY BRAND SEGMENTATION Godrej soaps Cinthol Premium Godrej no 1 Popular Marvel Popular Lifebuoy(plus, gold,family,liquid) Carbolic Lux(international, Premium Dove Premium HUL
  • 9. Face washes, Shower gel) Premium Liril,pears, Premium Jai,breeze Popular P&G Camay Premium WIPRO Santoor,baby soft Premium Wipro shikakai Popular My sore sandal soap Premium My sore sandal gold Premium HENKET-SPIC Margo Popular COLGATEPALMOLIVE Palmolive natural Premium KS&DL
  • 10. COMPANY PROFILE Hindustanunilever limited is the Indian established of the world’s most famous multinational company namely unilever limited. This is a very pros porous company is the FMCG segment i.e., the fast moving consumer goods. The company has very much well established R&D supports and a good marketing practices and network. The main purpose of Hindustanunilever limited is to meet the everyday needs of people everywhere-to anticipate the aspirations of our consumer and customer and to responds creatively and competitively with branded products and services which raise the quality of life. H.U.L’s deep roots in local culture and markets around the worlds are its unparallel inheritance and the foundation for our future growth. H.U.L will brings its wealth’s of knowledge and international expertise to the service of local customer – a truly multi-local multinational. H.U.L’s long term success requires a total commitment to exceptional standards of performs and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously. H.U.L believes that to succeed requires the highest standards of corporate behavior towards its employees, the consumers, the societies and world in which we live. This is HindustanunileverLimited’s 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.L’s brands and its people, but also its support systems. H.U.L’s research centre is the largest private sector industrial research laboratory of its kind in India. H.U.L’s enviable reach in the remote heartland make its kind in India. H.U.L understands the importance of savings for the future generation, the simple pleasures that our planet has continuously offered. Necessary measures that H.U.L has enforced in its factories for environment protection and pollution control, H.U.L has also taken up projects on energy conservation, watershed management, tree plantation and soil conservation.
  • 11. 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.
  • 12. 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 occasion’s consumer may be biased in giving information.  Samples size is restricted to 58 only due to paucity of time.
  • 13. PRODUCT PROFILE Lux is a global brand developed byUnilever. 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. LUX’s logo is a silhouette profile of a dove, the color of which often varies. LUX’s products include: antiperspirants/deodorants, body washes, beauty bars, lotions/moisturizers, hair care and facial care products. In the US, LUX bar soap is currently produced in the cool moisture, exfoliating, sensitive skin unscented, nutrium nourishing, white, pink, calming night, proage, 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.
  • 14. 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 Unilever’s biggest gl brand, and #3 in the Anglo-Dutch company’s portfolio behind Knorr and Lirextend the brand across the complete personal care spectrum, and LUX now soap to shower gel, and from deodorants to shampoo-conditioners. LUX has for its marketing. In 2003 Ogilvy & Mather launched a series of ads for Dc women. The brand competes fiercely with Procter & Gamble’s Olay, Beiersd Neutrogena, all of which have a similarly broad product range
  • 15. SUMMARY OF RESPONSES OF MY QUESTIONNAIRE 58 responses Summary 1. Name Rahul saketanand Sarthak madanmavi Ravi kumar MOHIT KUMAR pradip Hitesh chiragjain kakulikhanra yamini Piyush Sharma Pawan Kumar manishkumar riyachaturvedi AnandVerma shubhamrana GauravSukhija chetna riyasat vineets ingh pankaj vinay ROHIT KUMAR divya keshavkrishan omid geetanjalithakur gaurav ANKIT SHARMA Navneet Meghna Ashish bharat Dimple arya deepanshuchaudhary BhavyaGarg PuneetKaur Maria Elena Akshay salmeitkaur Gulshan Divya rahul raj akankshasetia chasminda Aabid sarthak Shilpa gaurav kawaljeet BaljeetKaur priyankarawat Arpit THIS ARE ALL THE PEOPLE WHO FILLED MY QUESTIONNAIRE 2. Age 39 37 22 23 20+ 19 18 16 21 20 20 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 years 19yrs Average age rage lies b/w 19-22 3. Gender male 35 64% Female 20 36% 64% out of 100% are male and rest 20 % are female 4. Occupation: B.sc Student Teacher study student housewife STUDENT Medical student Student
  • 16. 5. Family monthly income <25,000 12 23% 25,000-50,000 14 27% 50,000-75,000 10 19% 75,000-1,00,000 9 17% >1,00,000 7 13% 6. Family type Joint 19 34% Nuclear 37 66% 7. Do you use soaps for every bath/ shower:
  • 17. Yes 54 96% No 2 4% 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? 1 8 14% 2 26 46% 3 11 20% 4 and above 11 20% 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? 3 5 9% 4 7 13%
  • 18. 5 6 And Above 9 16% 35 63% The figure above shows the total no. of soaps used by the whole family of a person 10. Which kind of bath soaps do you like? Foamy 17 13% Thick lather 6 5% Transparent 6 5% Milky 33 25% Colored 3 2% Glycerin 14 11% Medicinal 22 17% Neem 19 15% Sandal 11 8% In this question, we asked people about types of soaps people use. So, maximum (25%) people like to use milky soaps because people likeit 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 sandal 11. What is the maximum price you spend for standard sized bath soap? 35 40 100 - 200 50-60 22 25 30 15 1 dollar 20 100 90 80 15-30/pics 70 Rs.40 approx 40-50 45 46 50 12. What is the average price you have paid in recent months for bath soap? 35 150 2p 42 40 50(4 mnths average) 200 25 around 300 to 400 30 14 Rs.100 approx 20 100 90 10 88 125 300 1,5o dollar 70 75 40-50 not remembercan't recall 47 140 50 13. Which brand do you prefer the most?
  • 19. Lux 7 13% Dove 21 40% Lifebuoy 12 23% Hammam 0 0% Other 12 23% 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? Yes 29 53% No 26 47% 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?
  • 20. Once 11 33% Twice 9 27% Many times 13 39% 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? Perfume 21 30% Color 8 12% lather 7 10% Hygienic 9 13% protect skin and suits your skin 12 17% value for money 12 17% Other 0 0% 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:
  • 21. Lack of awareness 3 12% Lack of availability 1 4% You find it expensive 3 12% You don’t like the product Other 17 68% 1 4% Reason behind why people not able to use lux soaps is that maximum people(68%) don’t 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 advertisements Radio 13 17% 2 3% TV advertisements 46 61% Word of mouth 10 13% Point of sale 3 4% Other 1 1% 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?
  • 22. yes 47 89% no 6 11% 20. Does celebrity endorsement prompt you to purchase Lux soap? yes 18 34% no 35 66% 21. Have you tried new variants of Lux soap after viewing the advertisements? yes 20 36% no 35 64% 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
  • 23. 22. Which of the offers available influence you the most to purchase Lux Soap? Discounts offer 5 11% Buy one get one 15 32% Combo pack 25 53% Other 2 4% 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? yes 53 98% no 1 2% 98% people said that lux soap is easily available to their locality because lux is a very well-known international brand in many countries 24. From where do you usually purchase Lux Soap?
  • 24. Nearby Store 34 71% Retail Store 12 25% Whole Seller 2 4% 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 Milk 7 15% Cream Milk 21 46% Pink Cream 9 20% Badam Milk 9 20% Here the preference is given for the lux soaps by the respondents who use it. So maximum 46% people like lux’s cream milk soap because Refresh and replenish skin after a long day’s work with lux creamy white. This soap is enriched with ultra-caring Swiss moisturizers which makes the bar so creamy that it feels like dollop of 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%)
  • 25. 26. What is the size of the Lux Soap you usually purchase? 100g 17 37% 200g 25 54% 300g 4 9% 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 Week 6 13% Every fortnight 2 4% Every month 6 13% Occasionally 32 70% 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%)
  • 26. Annexure ANALYSIS OF CONSUMER BEHAVIOR TOWARD LUX SOAP 1. Name 2. Age 3. Gender male female 4. Occupation: 5. Family monthly income <25,000 25,000-50,000 50,000-75,000 75,000-1,00,000 >1,00,000 6. Family type Joint Nuclear 7. Do you use soaps for every bath/ shower: Yes No 8. How many bath soaps do you personally require every month? 1 2
  • 27. 3 4 and above 9. How many bath soaps do you buy for your household every month? 3 4 5 6 And Above 10. Which kind of bath soaps do you like? Foamy Thick lather Transparent Milky Colored Glycerin Medicinal Neem Sandal 11. 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 No 15. If yes, How often did you change brands in the last 6 months? Once Twice
  • 28. Many times 16. 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 don’t 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 no 20. Does celebrity endorsement prompt you to purchase Lux soap? yes no 21. Have you tried new variants of Lux soap after viewing the advertisements? yes no 22. Which of the offers available influence you the most to purchase LuxSoap? Discounts offer Buy one get one
  • 29. Combo pack Other: 23. Is Lux Soap easily available to you? yes no 24. From where do you usually purchase Lux Soap? Nearby Store Retail Store Whole Seller 25. Which type of Lux Soap you like the most? Peach Milk Cream Milk Pink Cream Badam Milk 26. What is the size of the Lux Soap you usually purchase? 100g 200g 300g 27. How frequently you purchase Lux Soap? Every Week Every fortnight Every month Occasionally