1.1 Background of the study
The trade atmosphere today is changing more rapidly than ever before. It is characterized by increasing competition from both domestic and foreign companies, a brandish of mergers and acquisitions, and more sophisticated and demanding customers who have great expectations related to their consumption experiences. Since services are intangible, heterogeneous, and inseparable, it is difficult to measure service quality objectively.
So the companies have focus to so many different aspects in order to make sure their sales. This report deals with meeting up the new challenges that LUX is facing to manage the selling environment. LUX has stared so many projects to get a better position in the market. The objective of the study is to see customer satisfaction about marketing mix of LUX soap. 1.2 Significance
This report is a requirement of the program for MBA program. We have tried our level best to make it as an excellent one. We used all the latest data and information. The report can help as the indicator of the level of satisfaction of the customers of the LUX soap and its marketing mix.
It provides the true practice taking place in the marketing industry, which plays an important role for every student to meet the extreme challenges of the job market. It helps us in gathering knowledge on the modern practices of the marketing programs of LUX and its way to serve its customers. Its data comparison is based on the published information and further analysis.
History Catalina Marketing Corporation was founded in 1983 by five friends, Tom Mindrum, Mike O'Brien, George Off, Mike Scroggie and Brian Yeatman, while on a boating trip to Catalina Island in Southern California. The five friends were remarkably similar, though different. All five had experience in the consumer research field. All five had strong areas (whether research, computer technology or ...
1.3 Scope of the study
It illustrates a study on customer satisfaction about the marketing mix of LUX soap. This report will help us to acquire information about the beautification industry of Bangladesh and systematically investigate the satisfaction pattern of the LUX soap users. This information will improve our knowledge, which will positively impact our learning experience.
This report provides us the opportunity to exchange ideas with our classmates and faculty and learn about different techniques. It is necessary to stay current with new processes, ideas, and methods. By doing this report we get the opportunity to explore the areas of research and bring the new information into our report.
1.4 Objective of the study
1.4.1 General Objective:
The main objective of this report is to study the customer satisfaction on marketing mix of LUX soap. 1.4.2 Specific Objective:
* To study the marketing mix of LUX soap.
* To find out the level of customer satisfaction about LUX. * To know about the beautification industry of Bangladesh. * To know about the competitor products of LUX.
* To know the impact of those competitor products on the customers of LUX. 1.5 Methodology:
1.5.1 Type of research design:
We have applied “descriptive research” to conduct the report. This includes the method of data collection and the sources of the data or information of the research. 1.5.2 Source of data:
220.127.116.11 Primary data:
This type of data collected by doing survey and observes the behavior of the customer. 18.104.22.168 Secondary data:
This type of data collected from official web site of LUX, and different articles. 1.5.3 Data collection procedure:
We have used data both qualitative and quantitative method .We have collected data for this report in two ways: 22.214.171.124 Primary data:
We collected primary data through survey and for doing survey we have prepared a questionnaire on LUX soap. We observe the behavior of customer. 126.96.36.199 Secondary data:
A 1954 ad for Lux Toilet Soap states, “Luscious is the word for Greer Garson’s complexion and she keeps it that way with Lux Toilet Soap. ” This statement is an example of how emotional appeal is used in the ad to grab the reader’s attention. The advertiser uses character appeal by including information about Garson’s success in the ad to make the reader want to use the product. Logical appeal is ...
In order to collect secondary data we used official website of Unilever Bangladesh, LUX and different articles related with this topic. 1.5.4 Research instruments:
As a tool for collecting primary data a questionnaire was constructed to carry on the sample survey. 1.5.5 Sample plan:
The entire customer group of LUX soap.
188.8.131.52 Sample elements:
The sample element is the individual customer of LUX soap.
184.108.40.206 Sample frame:
No structured sample frame was found.
220.127.116.11 Sample procedure:
Non-probability convenience sampling procedure is used in the survey. 18.104.22.168 Sample size:
The sample size is 30 customers.
The present study was not out of limitations. Some constraints are given bellow— * The main constraint of the study is inadequate access to information, which has hampered the scope of analysis required for the study.
It was unable to provide some formatted documents data for the study. * Due to time limitations, many of the aspects could not be discussed in the present report. * The customers were too busy to provide much time for interview. * The customers couldn’t provide proper information about some aspect due to their lack of knowledge. * Only few areas of Dhaka city have been considered for the study. * Samples were selected conveniently.
* The sample size does not represent the total
2. Overview of the Product
LUX is a global brand developed by Unilever. The range of products includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. LUX started as “Sunlight Flakes” laundry soap in 1899.In 1924, it became the first mass market toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements. As of 2005, LUX revenue is estimated at €1 billion, with market shares spread out to more than 100 countries across the globe.
Today, LUX is the market leader in several countries including Pakistan, Brazil, India, Thailand and South Africa. Developed by Unilever, LUX (soap) is now headquartered in Singapore. LUX launched the world’s first mass market beauty bar, “made like the costliest French soap”. Since then, LUX has been associated with over 400 of the world’s most glamorous actresses from Hollywood legends like Elizabeth Taylor, Audrey Hepburn, and Grace Kelly, to Bollywood Royalties such as Aishwarya Rai and Katrina Kaif.
Building a ‘Beauty Brand’ Veet India - Beyond Hair Removal Executive Summary The solution attempts to address the transition of Veet from a hair removal brand to a true beauty brand. Starting with a study of the depilatories market in India and Veet’s growth over the years to create a platform, the results of the primary research have been presented. The primary research was a combination of ...
Origins and history:
The brand was founded by the Lever Brothers (today known as Unilever) in 1899. The name changed from “Sunlight Flakes” to “LUX” in 1900, a Latin word for “light” and suggestive of “luxury.” LUX toilet soap was launched in the United States in 1925 and in the United Kingdom in 1928. Subsequently, LUX soap has been marketed in several forms, including hand wash, shower gel and cream bath soap.
LUX’s early advertising campaigns aimed to educate users about its credentials as a laundry product and appeared in magazines such as Ladies Home Journal. By the early 1920s, it was a hugely successful brand and in 1924, the Lever Brothers conducted a contest that led them to a very interesting finding: women were using LUX as toilet soap.
Building beauty soap credentials:
Introduced in the United States in 1924, LUX became the world’s first mass market toilet soap with the tagline “made as fine as French Soap”. In the first 2 years of launch, LUX concentrated on building its beauty soap credentials. Advertisements offered consumers “beauty soap made in the French method” at an affordable price, with the promise of smooth skin. Made with fine-texture, rich in fragrance, and manufactured using a method created in France, the first LUX toilet soap was sold for 10 cents apiece.
1928–1940: 9 out of 10 stars:
This era saw key launches of LUX in the UK, India, Argentina and Thailand. The brand concentrated on building its association with the increasingly popular movie world, focusing more on movie stars and their roles rather than on the product. In 1929, advertising featured 26 of the biggest female stars of the day, creating a huge impact among the movie-loving target audience.
This was followed by Hollywood Directors talking about the importance of smooth and youthful skin. This pioneered the trend of celebrity product endorsements. The series of print ads had stars talking about preserving youthful skin. LUX also launched campaigns featuring interviews with Stars and Close Ups of Stars, bringing to life the ‘9 out of 10’ idea.
His guiding principle is still followed by the company today: “To constantly improve what is good. ” 1949 SWAROVSKI OPTIK is founded, and goes on to become a leading manufacturer of precision optical instruments for hunting and nature observation (binoculars, telescopes, rifle scopes, range finders, and night vision and optronic devices). 1956 The first Swarovski crystals for chandeliers and ...
40s & 50s: Romancing the consumer:
Using movie star as role models, LUX’s strategy was to build relevance by looking at beauty through the consumer’s eyes. While still retaining the star element, the focus shifted to the consumer and the role of the brand in her life. Advertising commercials showed ordinary looking women with direct references to stars, such as Deanna Durbin.
60s: Romancing the brand:
The 60’s saw a shift in advertising to product stories and the romanticizing of brand through its “sensorial & emotional” dimensions. This was the era of ‘the film star feeling’ and the ‘Golden LUX’, featuring stars such as Sandra Dee, Diana Rigg and Samantha Eggar. The bathing ritual, the ‘fantasy’ element that has been the imagery of LUX was created in this era. The brand also moved forward with launching LUX in the Middle East, entering a more conservative market. 70s: Dimensionalizing beauty:
Reflecting the shift in beauty trends in the 70s, the LUX stars stepped down from their pedestals and were portrayed as multi-faceted women with natural, wholesome beauty that the ordinary consumer could relate and aspire to. The executions were more of ‘a day in the life’ of the stars with focus on their ‘natural beauty’. Stars included Brigitte Bardot and Natalie Wood. 80s: Owning the category space:
Establishing itself as THE beauty soap for stars and beautiful women, the 80s emphasized the importance of skin care – the first step to beauty. LUX was launched in China at this time. Sophia Loren, Raquel Welch and Cheryl Ladd were some famous celebrities used during this time. In India actresses Hema Malini, Parveen Babi, Madhuri Dixit, endorsed LUX soap. 90s – Early
2000s: Advanced skin benefits:
In the 90s, LUX moved from generic beauty benefits to focus on specific benefits and transformation. More emphasis on functionality and variant associations with different skin types as well as mention of ingredients. The communication was far more regional specific and localized, using stars like Malu Mader and Debora Bloch. This period launched product brand extensions Shower Cream and Gels and LUX Super Rich Shampoo in Japan and China. 2000s: Beyond movie stars:
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
In early 2000, the focus shifted from specific skin benefits to a stronger emotional space. The brand provided the link between the aspirational role models and real life with the campaign, ‘LUX’ brings out the star in you’. The benefit was now more than just beauty, it was also about the confidence that comes from beautiful skin. In 2005, LUX encouraged women to celebrate and indulge their femininity with the “Play with Beauty” philosophy, with stars like Aishwarya Rai.
The brand also connected with consumers to take a more ‘active’ stance on beauty. From 2008, building off the brand’s root strengths, focus has shifted to beauty (vs. femininity), appealing to consumers’ fantasies and aspirations. LUX believes that ‘beauty is a female instinct that shouldn’t be denied’ and showcases the pleasure that every woman enjoys from using her beauty, encapsulating that idea in a simple phrase: Declare your beauty.
Today, LUX products are manufactured at 71 locations with more than 2000 suppliers and associates providing the raw materials. It has key markets in Pakistan, Brazil, China, Bangladesh and South Africa, and is a market leader in India (for soap bars), Pakistan, Brazil, Saudi Arabia (for soap bars), Bangladesh, Thailand and Vietnam.
3.2 Vision, mission, goals and objectives:
LUX began its story in 1924 as the first mass marketed beauty soap. Now sold in over 100 countries, it is the most recognizable soap brand in the world – bringing a combination of fun, pleasure and comforts to women’s beauty routines the world over. Since its start in 1924 as the first mass marketed beauty soap, LUX has made its way to over 100 countries across the globe and is now the most recognizable soap brand in the world.
During this long journey, some of the world’s most talented and beautiful women have become a part of LUX’s history as brand ambassadors. LUX combines exquisite fragrances with the most exotic ingredients to give a truly unique bathing experience.
It is the vision of LUX to give women that million dollar feelings every time they use a LUX product, be it one of their fragrant beauty soaps or refreshing body washes. LUX believes beauty doesn’t have to be a chore and brings a combination of fun, pleasure and comfort to women’s beauty routines all over the world. MISSION
1. Introduction: The retail industry plays a significant role in the development and growth of overall economy of a nation. In countries such as UK, retailers have positioned themselves in such a way that they are able to cater all types of customers’ needs and wants. (Economic Survey, 2012). The major retailers of UK are Tesco, Sainsburys, Asda, John Lewis, Marks and Spencer etc. Even when the ...
The mission of LUX is to embrace consumers’ new expectation, to maintain good governance, product quality and long experience of working with communities. Their vitality mission will focus brands on meeting consumer needs arising from the biggest issues around the world today – ageing populations, urbanization, changing diets and lifestyles. They see growing consumer need for:
* A healthy lifestyle
* More variety, quality, taste and enjoyment
* Time, as an increasingly precious commodity
* Helping people to feel good, look good and get more out of life will enable us to meet these needs and expand our business. GOALS
The goals of LUX are-
* To maintain strong science capability.
* Ensuring the quality of the raw materials and the ingredients needed to make products. * To manufacture high-standard products.
* Promoting products to the highest extent.
* Producing large volume to achieve production cost economies. * Enabling quality products to be sold out at obtainable product. * Maintaining healthy relationship with the customers.
The objectives of LUX are-
Always working with integrity:
Conducting operations with integrity and with respect for the many people, organizations and environments.
LUX aim to make a positive impact in many ways: through the brands, commercial operations and relationships, through voluntary contributions, and through the various other ways in which they engage with society. Continuous commitment:
They’re also committed to continuously improving the way they manage the environmental impacts and are working towards the longer-term goal of developing a sustainable business. Setting out our aspirations:
Their corporate objective sets out their aspirations in running business. It’s underpinned by the code of Business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The code also supports their approach to governance and corporate responsibility. Working with others:
They want to work with suppliers who have values similar to them and work to the same standards as they do.
3.3 LUX Range:
LUX Peach & Cream blends juicy peach and moisturizing cream extracts to give you velvety, soft skin. LUX Fresh Splash is crafted with the icy freshness of cooling mint and the invigorating power of sea minerals to transform your skin from dull to vibrant in an instant. LUX Sandal & Cream uses extracts of alluring sandalwood and a unique consistency of moisturizing cream to give your skin a captivating and mesmerizing glow. LUX Purple Lotus & Cream is infused with fragrant moisturizing and beauty oils, leaving your skin silky smooth.
3.4 SWOT Analysis for LUX:
The SWOT analysis for LUX helps identify the internal environment, its
strengths and weaknesses as well as the external environment faced by it, and the opportunities and threats that it presents:
* LUX possesses a very strong network of market research. * LUX has a very wide range of products to offer.
* The parent company of LUX has helped in establishing a strong supply and distribution network. Besides, it also has access to the resources of the parent company of Unilever. * LUX possesses a very strong brand image in the market.
* The focus of LUX is going strong on beauty segment.
* LUX is a dynamic brand and is undergoes changes as per the changes in demand and trend. * The brand has innovative sales promotions tactics that spread across different forms of media – print, electronic and social. * The brand is known to deliver value-for-money in the eyes of the consumers. * It has a broad market presence and mass appeal, being the market leader in so many countries. * As per the BCG matrix, developed by the Boston Consulting Group, LUX can be put into the STAR category for high market growth and high market share.
* LUX lacks a unisex appeal as it has essentially been portrayed as a women’s beauty soap and has a lot of feminine appeal. * The wear rate of the soap is very high. It gets dissolved pretty fast and gets mushy and soggy quickly. * Certain variants of the soap, like the Haute Pink, Sunscreen, etc did not do so well in the market as some of its other variants have.
* The stock replenishment in semi-urban areas and rural areas is quite long, despite having such a wide distributor network. This leads to stock out in these areas. * Some of its advertisements have been quite controversial. * It includes too much base which makes the skin dry.
* The industry today is growing at a rate of more than 10% per annum. *
LUX can yield great benefits by reinforcing itself in the beauty segment. * Promotions strategies like trade fare, price offs, sample distributions, etc are essential with competitors. * The soap is in the maturity stage of its life cycle, so it is essential that a retentive strategy be adopted so that this can be sustained. * Ayurvedic variant of LUX could have a big scope in the market. So far, the only variant of LUX that has somewhat come close to Ayurveda, though not actually is the festive glow variant, which had the goodness of haldi and chandan ubatan.
This could cater to a new segment in the market. * LUX Kids Special soap would also help the brand greatly, as this segment has been running dry for quite some time now. In this way, brand loyalty could be caught young. * The brand extension products of LUX – the body washes, with its new range launched recently, is in the growth stage of its life cycle. They can pick up fast pace is positioned and marketed properly. Active marketing of these body washes is going on in the social media. * It can also launch face wash range as it is in great demand to today’s women.
* Number of competitors is rising – ITC, P&G, etc are fast catching up. * High internal competition also exists for the soap like Dove. * LUX seems overly relied on the beauty segment, so in case the consumer trends or preferences change, then LUX stands to be highly vulnerable. * More focus needs to be put on the newer technology.
* If constant reinvention is not there, then LUX can slip down from the maturity stage it currently is in and get into a declining phase.
3.5 Marketing Mix of LUX:
This chapter describes the way Unilever Bangladesh Ltd. use the tactical marketing tools for marketing LUX in Bangladesh. The chapter comprises of four sections. Section 2.5.1 discusses the product attributes of LUX. Section 2.5.2 visualizes the price of LUX according to different size. Section 2.5.3 conceptualizes the distribution channel of Unilever Bangladesh Ltd. This section includes a table that shows the location of the company’s warehouses all around the country. Finally section 2.5.4 discusses the promotional activities that the company undertakes for LUX.
LUX is an internationally renowned beauty soap brand of Unilever. Though manufactured in Bangladesh for the local market by Unilever Bangladesh Ltd, as an international brand, it maintains an international quality for the product. Formula given by Research and Development departments in foreign countries, LUX is produced in Bangladesh from imported raw materials like sodium soap, glycerol and different extracts according to flavors, coming from Unilever plants situated abroad.
LUX is offered in Bangladesh in four different flavors which are: LUX Peach & Cream, LUX Fresh Splash, LUX Sandal and cream and LUX Purple Lotus & Cream. Taking into account the convenience of its customers, the company manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm.
Though Unilever Bangladesh gives its LUX customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a product with a vulnerable demand in Bangladesh. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. Company carries out research on competitors’ price and brand loyalty when it feels extreme necessity of changing price. 2.5.3 Place:
Unilever Bangladesh Ltd. has a huge distribution channel for LUX all over the country as its sales reach more than 10 million pieces a year. The company has six huge warehouses, one in each division of Bangladesh, where the product goes after they are manufactured at Kalurghat factory.
The company does not use its own fleet of transport for distributing its product. However, it has outsourced its distribution process to various third party distributors, exclusively dedicated to Unilever Bangladesh Ltd. These distributors then supply the product all over Bangladesh to a huge number of retailers. Even though LUX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Bangladesh because of a recent increase in demand of its product to all segments of the population.
Unilever Bangladesh undertakes huge promotional activities to promote LUX which has topped the beauty soap industry of Bangladesh. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotional activities for LUX. It’s certain annual promotional campaigns like LUX Channel i Superstar and LUX Channel i Annual Cinema Awards has made the product a part of the glamour world. Since the 1930s, over 400 of the world’s most stunning and sensuous women have been proudly associated with LUX advertisements.
They do not only promote LUX in Bangladesh for the beauty conscious females, it also promotes the brand for males and the company proved that, by including world famous male celebrity Shahrukh Khan for their advertising campaign. Unilever Bangladesh Ltd spends a huge amount of money for promoting LUX through TV commercials, newspaper advertisements and billboards.
3. Theoretical Aspect
3.1 Customer satisfaction:
Customer satisfaction is a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as “the number of customers or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals”. In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses.
The importance of measuring customer satisfaction is discussed below: * It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. * Within organizations, customer satisfaction ratings can have powerful effects.
They focus employees on the importance of fulfilling customers’ expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction. * In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations.
Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in ‘absolute’ terms.
* Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. * Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the company’s goods and services.
* Although sales or market share can indicate how well a firm is performing currently, satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will make further purchases in the future. Much research has focused on the relationship between customer satisfaction and retention.
Different processes to measure Customer satisfaction are given below: 1. Theoretical Ground:
In literature antecedents of satisfaction are studied from different aspects. The considerations extend from psychological to physical and from normative to positive aspects. However, in most of the cases the consideration is focused on two basic constructs as customers’ expectations prior to purchase or use of a product and his relative perception of the performance of that product after using it. Expectations of a customer on a product tell us his anticipated performance for that product.
As it is suggested in the literature consumers may have various “types” of expectations when forming opinions about a product’s anticipated performance. 2. The Disconfirmation Model:
The Disconfirmation Model is based on the comparison of customers’ expectations and their perceived performance ratings. Specifically, an individual’s expectations are confirmed when a product performs as expected. It is negatively confirmed when a product performs more poorly than expected. The disconfirmation is positive when a product performs over the expectations. There are four constructs to describe the traditional disconfirmation paradigm mentioned as expectations, performance, disconfirmation and satisfaction.
The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. Their satisfaction is generally measured on a five-point scale.
Customer satisfaction data can also be collected on a 10-point scale. Regardless of the scale used, the objective is to measure customers’ perceived satisfaction with their experience of a firm’s offerings. Good quality measures need to have high satisfaction loadings, good reliability, and low error variances.
3.2 Marketing mix:
The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand’s offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps or eight Ps to address the different nature of services.
In recent times, the concept of four Cs has been introduced as a more customer-driven replacement of four Ps. And there are two four Cs theories today. One is Lauterborn’s four Cs (consumer, cost, communication, convenience), another is Shimizu’s four Cs (commodity, cost, communication, channel).
3.2.1 Producer-oriented model
The marketer E. Jerome McCarthy proposed a four Ps classification in 1960, which has since been used by marketers throughout the world. Classification|
Product| A product is seen as an item that satisfies what a consumer demand. It is a tangible good or an intangible service. For example good will for intangible. Tangible products are those that have an independent physical existence.
Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls.
Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product move.The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line’s depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company’s resources and how to configure the product mix so that each product complements the other.
The marketer must also consider product development strategies. | Price| The amount a customer pays for the product. The price is very important as it determines the company’s profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix. When setting a price, the marketer must be aware of the customer perceived value for the product.
Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The ‘reference value’ (where the consumer refers to the prices of competing products) and the ‘differential value’ (the consumer’s view of this product’s attributes versus the attributes of other products) must be taken into account. | Promotion| All of the methods of communication that a marketer may use to provide information to different parties about the product.
Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum.
Sales staff often plays an important role in word of mouth and public relations (see ‘product’ above).
| Place| Refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. | ————————————————-
3.2.2 Consumer-oriented model
Robert F. Lauterborn proposed a four Cs classification in 1993 which is a more consumer-oriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing: “P” category| “C” category| “C” definition|
Product| Consumer solution| Represents the actual product which meets up the consumer needs and wants.| Price| Cost| Reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer’s cost to change or implement the new product or service and the customer’s cost for not selecting a competitor’s product or service.|
Promotion| Communication| Represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer.| Distribution(Place)| Convenience| With the rise of Internet and hybrid models of purchasing, Place is becoming less relevant. Convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors.|
4. Analysis & Findings
We have conducted our survey on “Customer Satisfaction about the Marketing mix of LUX soap”. We have design our sample with 30 respondents. Respondent Sample:
Among 30 people, 25 were female and 5 people were male. Among 25 Female most respondents were students of Masters, Bachelors and colleges, some respondents were housewives (4 people).
In case of Male respondents all were the students. Total Respondents| 30|
Female Respondents| 25|
Male Respondents| 5|
Figure 1: Types of respondents
Age of Respondents:
We divided respondent’s age into four categories. The categories are 15-20 years, 21-30 years, 31-40 years and 41-50 years. Among 30 respondents 3 respondent’s age were in between of 15 to 20 years, one respondent was from the age category 41-50 years, 3 respondents were from 31-40 years and the others (23 respondents) were in between of 21 to 30 years. Age| No of Participants|
Between 15 to 20| 3|
Between 21 to 30| 23|
Between 31 to 40| 3|
Between 41 to 50| 1|
Figure 2: Age of respondents
1. Are you Happy with this Brand?
Options| No of Respondents|
Figure 3: Level of satisfaction of respondents with the brand When we asked about this question, 29 people agree that they are happy with this Brand LUX. Only one person seems to be unhappy. Her only reason for disappointment was, in her opinion this soap should contain extra moisture. From the above graph it is seen that 97% people are happy with this brand and 3% is unhappy. 2. Which features do you like most?
Options| No. Of respondents|
Figure 4: Level of preferred feature of the soap by the respondents We have observed that 17% of people like the different color of LUX soap.7% people like the shape of LUX and among 30 people 23 people or 76% agree that among all the features, the fragrance of LUX soap is the best feature of LUX.
3. Do you like to add any other aroma?
Options| No of Respondents|
Figure 5: Level of suggested new aroma to the soap by the respondents
When we are conducting the survey, we observed that every people want to add other aromas like Rose, Neem, Strawberry, orange in LUX soap. It is seen that 34% people want the aroma of Rose, 23% like to add Neem, 20% want the fragrance of Strawberry, 13% orange and 10% want Lemon aroma in LUX soap. 4. According to quality, which brand is the strong Competitor of LUX? Options| No of Respondents|
Figure 6: Level of competitors of LUX
According to quality, 67% respondents think that “Dove” is the strong competitor of LUX. Other 27% person thinks “Sandalina” as the strong competitor. Rest 6% feels “Dettol” is strong competitor of LUX. We have put Tibet and Meril as other options but no one thinks these are the strong competitor of LUX brand. Respondents also mentioned that “Dove” is very much expensive but in terms of quality this soap is excellent. On other hand the quality of “Sandalina” is good enough and less expensive. On other hand, “Dettol” is specially known as the bar soap which fights against the wide range of germs.
5. Are you satisfied with the quality of this soap?
Options| No of respondents|
Figure 7: Level of satisfaction with the quality of the soap by the respondents From the survey we get that, 60% of the respondents are satisfied with the quality of LUX soap. Remaining 40% are not satisfied. When we asked about the dissatisfaction of the participants, they show the cause of higher amount of alkali in the soap which makes the skin rough
6. For how long you have been using LUX?
Options| No of Respondents|
Below 2 Years| 5|
Between 5 to 10 years| 25|
Over 10 years| 0|
Figure 8: Level of time period of using LUX by the respondents During the time of survey we noticed that 83% of the people are using LUX for more than 5 to 10 years, rest amount of participants which means 17% are using LUX below than 2 years. 7. Which type of fragrance you have used in LUX?
Options| No of respondents|
Peach and cream| 3|
Fresh splash| 7|
Sandal and Cream| 12|
Purple Lotus and cream| 8|
Figure 9: Level of used fragrance of the soap by the respondents When we are conducting our survey, we find that 10 % people use peach and cream, 23% people use fresh splash, 40% use sandal and cream and 27% use purple lotus and cream. During the time to discussion with participants we noticed that people have used almost every fragrances of LUX time to time, finally they chose their favorite one and most of the people like sandal and cream because they feel that this fragrance may keep their skin more natural and healthy. 8. Which size of LUX soap you use?
Options| No of respondents|
Figure 10: Level of size of the soap used by the respondents From the survey we found that 17% of the respondents use large size of the soap whether 83%
of the respondents use medium size of the soap. When discussing the size of LUX being used by the people, many respondents told that not for regular use but during journey they use small size of LUX because it is easy to carry. 9. In your opinion which type of skin care you get from this soap?
Options| No of respondents|
Figure 11: Level of skin care derived from LUX by the respondents 3% respondents said that in their opinion LUX soap keeps their skin clean and according to 97% people, LUX keeps the skin perfumed. Here we can see most of the people think that the perfume of LUX is the most popular skin care they have got from the soap. 10. Do you think LUX should introduce more products?
Options| No of Respondents|
Figure 12: Level of need for introducing new products of LUX of the respondents Here 27% people thinks that LUX should introduce more products like LUX face wash, LUX body powder because of its unique fragrance and rest of the people, 73% thinks that there is no need to introduce more products of LUX. 11. From which source you have got information about LUX soap? Options| No of respondents|
TV advertisement| 14|
Promotional Events| 2|
Bill board| 10|
Friends and relatives| 0|
Figure 13: Level of sources of information about LUX
47% people have got information about LUX soap via TV advertisement, 13% people got information by Newspaper, 7% people know about LUX from promotional events and remaining 33% got information by the huge billboards of LUX advertisement. 12. What do you think about the promotional activities of LUX? Options| No of respondents|
Not enough| 0|
Figure 14: Level of opinions about promotional activities of LUX From the survey we found that 73% agree that the promotional activity of LUX is sufficient, they think LUX don’t need to give extra focus on their promotion activities and 27 % people voted that the promotional activity of LUX is perfect. 13. Do you think the price of LUX is affordable?
Options| No of Respondents|
Figure 15: Level of satisfaction about the price of LUX by the respondents 67% respondents think that the price of LUX is affordable and remaining 33% think that the price of LUX should be reduced. 14. Are you satisfied with the availability of this soap? Options| No of Respondents|
Figure 16: Level of satisfaction about the availability of LUX by the respondents Almost all the respondents agree that the availability of LUX is up to the satisfaction level and only one respondent disagree with the availability of LUX.
15. Your overall satisfaction about using LUX……..
Options| No of respondents|
Strongly satisfied| 2|
Less Satisfied| 2|
Not Satisfied| 0|
Figure 17: Level of overall satisfaction about the performance of LUX by the respondents The customer is asked to evaluate each statement and in term of their perception and expectation of performance of LUX. 87% people are satisfied with the overall performance of LUX, 7% people are strongly satisfied with this brand and 6% agree that they are less satisfied with the performance of this soap. The less satisfied respondents give cause about their less satisfaction is the proportion of Alkali in the soap makes skin rough and LUX should reduce their price as it is used by every level of classes.
5. Major Findings
1. They are more focused about their Promotional activities. 2. The proportion of Alkali is too much high and makes skin rough. 3. They are not so focused about the quality improvement. 4. Most of the people uses LUX because of its unique fragrance no one uses LUX for skin care. 5. Dove is the strongest internal competitor of LUX and Sandelina is the external strongest competitor in Bangladesh.
6. Some people expect that LUX will introduce more products of LUX like Face wash and body powder. 7. As every class of people use LUX, respondents think that the price of LUX should be reduced. 8. Sandal and Cream is the most used fragrance of LUX in Bangladesh. 9. Most people get information about LUX from TV advertisement. 10. People are satisfied with size of LUX Soap.
LUX has been operates its business for many years in Bangladesh where each and every person knows brand quality and different product of it and consumers are also aware about the different strategies which are used to attract more consumers to buy the product but still it has lacking to survive in the market.
From the above analysis it’s been conclude that Bangladesh Unilever Limited facing competition from the other companies. Thus to keep its market share for the growth in their business it should focus on quality management and improvement to achieve its objective. However LUX soap should penetrate the market in order to survive in this competitive world and also introduce some new product with the reasonable range in order to increase its sale and which will have greater impact on their sale. However marketing activity should also be consider throughout which will result in gaining competitive advantage from its competitors.
* Most of the respondents suggested that they would like to see more Fragrance of LUX Soap. * In order to increase more sales LUX should concentrate on appropriate reduction of cost which will directly lead to gain leadership in price. * By hiring famous stars LUX is investing huge amount to promote their products.
Our suggestion will be now LUX should discontinue spending huge amount in promotional activities. * LUX Will also have to do product development for the product line extension. * As this soap makes skin rough enough; we think LUX should invest more to improve the quality of LUX soap rather than promotional activities. Or else it can lose its market at any time because there are many strong competitors in soap market. * LUX can introduce more products like- Face Wash; Body Powder etc as this product cover a huge and different market segment.
A study on “Customer satisfaction about marketing mix of LUX Soap” Respondent Name:
Income: around ……………..
1. Are you happy with this Brand?
If No please specify ………………………………………………………………. 2. Which features do you like most?
e) Others (please Specify)
3. Do you like to add any other aroma?
f) Others (please Specify)
4. Which brand is the strong competitor of LUX (In your opinion)? a) Dove
f) Others (please Specify)
5. Are you satisfied with the quality of this Soap?
b) No (explain……….)
6. For how long you have been using LUX?
a. Below 2 year
b. Between 5 to 10 year
c. Over 10 year
7. Which type of fragrance you have used in LUX?
a. Peach and Cream
b. Fresh Splash
c. Sandal & Cream
d. Purple Lotus & Cream
8. Which size of LUX soap you use?
9. In your opinion which type of skin care you get from this soap? a) Clean
10. Do you think LUX should introduce more products?
a) Yes (please specify………..)
11. From which source you have got information about LUX soap? a) TV advertisement
c) Promotional events
e) Friends and relatives
12. What do you think these promotional activities of LUX?
c) Not enough
13. Do you think the price of LUX is affordable?
14. Are you satisfied with the availability of this soap?
15. Your overall satisfaction about using LUX ….
a) Strongly satisfied
c) Less satisfied
d) Not satisfied