Introduction

The origins of personal cleanliness date back to prehistoric times. Since water is essential for life, the earliest people lived near water and knew something about its cleansing properties - at least that it rinsed mud off their hands.

A soap-like material found in clay cylinders during the excavation of ancient Babylon is evidence that soap making was known as early as 2800 B.C. Inscriptions on the cylinders say that fats were boiled with ashes, which is a method of making soap, but do not refer to the purpose of the "soap." Such materials were later used as hair styling aids.

Soap got its name, according to an ancient Roman legend, from Mount Soap, where animals were sacrificed. Rain washed a mixture of melted animal fat, or tallow, and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort.

Some of the early instances of commercial manufacturing of soap are:

In Britain references began to appear in the literature from about 1000AD, and in 1192 the monk Richard of Devises referred to the number of soap makers in Bristol and the unpleasant smells which their activities produced

A century later soap making was reported in Coventry. Other early centers of production included York and Hull. In London a 15th century "sopehouse" was reported in Bishops gate, with other sites at Cheapside, where there existed so pers Lane (later renamed Queen Street), and by the Thames at Black friars Andrew pears. In 1789, he commenced production of a transparent soap at a factory in Wells Street, off Oxford Street and became hugely successful.

Major Players
Hindustan Unilever Ltd With over seven brands LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and PEARS has 54.3% share of the overall soap market Godrej Consumer Products GCPL, Indias second largest soap maker after Hindustan Unilever Ltd, has nearly 9.2% market share. With 11% market share in value terms, it is the second largest soap maker after Hindustan Unilever. Wipro In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India. Wipro also has a profitable presence in niche market segments of infrastructure engineering, and consumer products & lighting. Procter & Gamble India Procter & Gamble India (PGHHCL) was incorporated in 1964 after Procter & Gamble, US, acquired Richardson Vicks, US. Formerly known as Richardson Hindustan (the Indian subsidiary), it was later named as P&G. It changed its name again in 1998 to Procter & Gamble Hygiene and Health Care

Nirma Incorporated as a private limited company, Nirma was converted into a deemed public company and then to a public limited one in Nov.'93. Nirma has a leadership presence in Detergents, Soaps and Personal Care Products.

HINDUSTAN UNILEVER LIMITED (HUL)

Company profile Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch giant Unilever, has been working its way into India since 1888. Formerly known as Hindustan Lever Limited. The Group's principal activities are to manufacture and market consumer products. Hindustan Unilever Limited (HUL

Logo

Labelling

The LUX Trade Character or Logo is present prominently on the package. A novel metallic substrate packaging showcases the ingredients, and a female model is shown on the pack. Also displayed graphically are the key ingredients.

Packaging The colors are different for different variants such as saffron for the saffron variant, pink for the rose extracts etc.The Bars come in package sizes of 100g, 120g, 150 g

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

OPPORTUNITIES

1. Soap industry growing by 10% in India 2. Beauty segments Compounded Annual Growth Rate (CAGR) is very high. An indication of this is that Fair and Lovelys segment is increasing at a fast rate - Lux must reinforce its presence in the beauty segment 3. More promotions like price-offs and samples 4. Retentive strategy required as the soap segment is in the mature stage of its product life cycle 5. Line extension probably with more variants catering to the beauty segment like natural, herbal soap etc 6. Liquid body wash is currently in the growth stage Lux should come out with more variants in this segment 7. Level of servicing is high during sales promotion schemes this could be brought down 8. It has a large market share and hence has a strong hold over the market

DATA ANALYSIS

RETAILERS ANALYSIS
(1)Sales Promotion Schemes Offered On Lux

S a le s P r o m o t io n s c h e m e s 40 35 30 25 PERC ENTA GE 20 15 10 5 0 P r ic e o f f P rod u ct B u n d lin g C a sh R e fu n d C ro ss P r o m o t io n P r iz e s

The

SC H EM ES

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 favour of the same.

CONSUMERS ANALYSIS
How would you rank following criterion for selecting a bathing soap?

What comes into your mind when you think about L:ux?

CONCLUSION
The findings of the empirical study indicate that unless the brand to be promoted is in the consideration set of the consumer, sales promotion by itself is unlikely to have any major impact. Clearly this shows that managers need to invest into brand building exercise so that his/her brand appears in the consideration set of the target consumers. Only after this should he spend time, money and energy on sales promotion activities. Sales promotion should not be used in isolation but need to be integrated with other tools and in line with the overall positioning of the brand. Also the importance of the role of mass media came out clearly in both the studies. Companies need to create sufficient awareness about sales promotion schemes through mass media in order to create awareness The role of retailer in influencing consumer in brand choice decision in a toilet soap category was found to be insignificant which also supports the above observations. Toilet soaps are low involvement products characterised by switching behaviors. Also the person going to the shop for the purchase of soap is the final decision maker of the brand. Hence it is essential that companies need to design attractive, striking, visible POPs for scheme announcements.

With respect to nature of scheme, the finding suggested that premium (free gift) was popular with companies. While both retailers and consumers preferred price offs. So it is necessary that the perceived value of a free gift has to be appealing and high for the target consumers. Repetitive use of the same premium (soap dish) for a prolonged period may have negative effect on the loyal customers. When the company is giving its own product free as premium, it needs to ensure the quality of the product from it as it is likely to jeopardize the image of both its products. The findings exhibited that both the retailers and consumers perceived that sales promotion activities carried out by the companies for increasing sales in short term and clearing excess stocks. What it implies is that companies need to use sales promotion synergistically and communicate so that they provide value to the target audience and enhance brand quality/image perceptions.

RECOMMENDATIONS
(1) (2) (3) (4) (5) (6) 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.

RETAILERS QUESTIONNAIRE
Name :.. Shops Name :. Address: Contact No.:.

(1)What are the sales promotion schemes offered on Lux ?

o Price off o Discount coupons

o Product bundling o Contests o Scratch card o Cross promotion o Cash refund o Prizes o Free trial o Any other
(2)What is the normal duration of the sale promotion scheme offered by Lux?

o o o o o Less than 3 months o 3 months 6 months o 6 months 1 year o More than 1 year

Less than 15 days 15 days 1 month 1 month- 3 months More than 3 months

(3)How often sales promotion schemes are offered on Lux?

(4) Affect on sales of Lux due to sales promotion schemes offered ?

o Increase in sales

o Decrease in sales o No affect o Cant say

(5)How is the sales promotion scheme communicated to you?

o Through wholesalers o Through sales representatives o Through print media o Through electronic media o Through Manufacturer
(6) Level of servicing during sales promotion?

o Very Prompt o Prompt o Moderate o Slow o Very slow o Superior and more frequent o Superior and less frequent o Similar and more frequent o Similar and less frequent
(7) Comparison of sales promotion scheme offered on Lux with competitors?

o Inferior and more frequent o Inferior and less frequent

(8) Perception of which age group gets most affected due to sales promotion schemes offered?

o o o o o o Handling problem o Stock out o Improper information o Leftover

8-15 yrs 16-25 yrs 26-45 yrs 46 -60 yrs 60 and above

(9) What are the problems faced during and after the sales promotion schemes?

(9) What are the incentives provided to you during sales promotion schemes?

o Prizes o Sponsored tour o Gifts o Cash discount o Lucky draw` coupons

(11) Which sales promotion schemes you think is the best for you to handle?

o Price off o Discount coupons o Product bundling o Contests o Scratch card o Cross promotion o Cash refund o Prizes

CUSTOMER'S QUESTIONNAIRE
Name : .......................................... Age:................................. Sex:...............

Address: . Contact No.:.

(1)Which brand of bathing soap do you use ? ............................................................................................

(2) Is the same brand of soap used by your other family members? If not , which brand of bathing soap do they use? ......................................................................................

(3) How would you rank following criterion for selecting a bathing soap?

o Color of soap o Fragrance of soap o Brand value o Price o Benefits

o Packaging o Word of mouth o Advertisement o Promotional schemes

(4) What comes in to your mind when you think about Lux?

o Soap of film stars o Beauty soap o Nothing specific

(5) Can you recall any current advertisement of Lux?

o Yes. o No.
(6) Which is the most effective medium for promoting the product?

o Advertising o Sales promotion o Public relation & Publicity o Personal selling o Internet
(7) Out of total 100 points, allot the points according to your preference on the promotional schemes? following

o Price off o Discount coupons o Contests o Scratch card o Cross promotion o Cash refund o Prizes o Free trial
(8) Do you perceive any change in quality of Lux during the sales promotion scheme?

o Superior o Inferior o No change

(9) What type of impact does the sales promotion scheme on Lux creates on you?

o Makes you switch to Lux o Buy it during sales promotion offer o Continue buying even after sales promotion offer is scrapped o No change in buying behavior
(10) How is the sales promotion scheme communicated to you?

o Through sales representatives

o Through print media o Through electronic media o Through companys stall

(11)What are the problems faced during and after the sales promotion schemes?

o Stock out o Improper information o Gifts not received o Coupons not encashed o Any other
(12) Comparison of sales promotion scheme offered on Lux with competitors?

o Superior and more frequent o Superior and less frequent o Similar and more frequent o Similar and less frequent o Inferior and more frequent o Inferior and less frequent
(13) In your family which age group gets most affected due to sales promotion schemes offered?

o Kids
Very satisfied Price Quality Distribution Network Satisfied Neutral Dissatisfied Very dissatisfied

o Youngsters o Adults o Older people

Advertising Promotional Schemes (14) How do you rate Lux on following parameters?