Consumer Behaviour And Marketing Strategy Report On LUX Company

Executive summary

LUX is a global brand developed by Unilever. The product range includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. Lux started as "Sunlight Flakes" laundry soap in 1899. In 1925, it became the first mass-market toilet soap in the world. Our mission is “to create indulgent skin treats with the finest fragrances, that allows women to be more than what meets the eye”. As the soap is counted as a Fast-moving consumer goods which is an essential product of customer’s everyday life, it is high-turnover items such as personal care goods or detergent. This type of product is account for 50% of customer’s purchasing. It has low-involvement for customer, they do not compare to the others much as well as sharing information with others because this product are things people use often. According to the survey, Lux brand is the most best seller soap that consumer choose. Price is the most important for consumer to make a decision before they purchased. The ways that a company can improve their ROI or return on investment for marketing is they have to consider about their marketing activities and empirically-based strategy for its unique situation. The factors that should be considered in the development strategy are the assets and skills possessed by the company, the drivers of the particular market, the nature of the competition, the stage of the life cycle of the industry or market, and any strategic windows that affect to the success in the marketplace. Marketing strategies tend to focus on providing lower cost products or services than making different their offerings from those of their competition, or by focusing on a group of customers and chance to sell products.

Due to the number of customer loyalty is decrease and repeat purchase behaviour is historic low, so I decided to prepare this report in order to analyse our company’s current marketing strategy and our marketing communication mix in order to identify our customer behaviour that effect to our sales record to increase the number of customer loyalty and repeat purchase behaviour. Moreover, I will provide the strategic recommendations to our board of directors, along with the reasons for recommending further improvements.

Product Overview

Lux is categorized as the personal care brand, it was launched by the Lever brothers (known as Unilever) in 1899. At first, the brand produced retailed laundry soap but now we have other product line which are soaps, shower gels, bathing additives shampoo and conditioner. Lux becomes the market leader in several countries such as India, Pakistan, Brazil, Thailand and South Africa.

Lux have created their product philosophy which is “Lux is committed to creating indulgent skin treats women crave to provide an exceptional experience in and out of the shower. We aim to bring the best of beauty to every woman in the world. We infuse our products with fine fragrances crafted by the world’s best perfume experts. We craft amazing, state of the art textures, rich in indulgent ingredients, all designed to exceed consumer expectations. Lux is not just a soap that smells good, it’s a fine fragrance you can bathe in”.

We also have the beauty philosophy, which is “Lux believes that beauty doesn’t have to be about hard work, but rather, about pleasure. To bathe in luxurious Lux daily is to come out feeling transformed, feeling on top of the world – inspiring every woman to feel irresistible and confident in her own skin every day”.

Critical analysis

I have attempted this research because the I needs to know the motivations to purchase distinctive brands of cleansers and especially buyer opinion about LUX Soap, the elements influencing while at the same time acquiring a FMGC (FAST MOVING CONSUMER GOODS) for example, toilet soap and bath soap. The research was carried out using survey method, which Hulland et al. (2018) was determined as “Survey research methodology is widely used in marketing, and it is important for both the field and individual researchers to follow stringent guidelines to ensure that meaningful insights are attained”. I have collect the data via surveymonkey. com from 25 people who lived in Australia. Using of survey method to collect the consumer opinion about their purchasing behaviour that what factor is the key important to make a decision to buy product. CDMSs or consumer decision-making styles, also referred to as purchasing patterns were studied thru diverse methods just like the purchaser typology method, the psychographic/lifestyle method and the characteristic approach.

Information consumer behaviour makes it mandatory to first understand the purchasing behaviour. There are several models of client behaviour portraying buying technique had been developed over the last 3 decades. These models are called a consumer decision maker. Among all these models, Haines, Howard and Sheth (1970) had provided in their article which is having sophisticated model which is the most comprehensive and, hence, largely accepted. In simple words, the buying process is made up of three stages namely, ‘input’-‘process’-‘output’. Johnston (2016) has define the steps in buying process activity which have 5-step which are:

1. Need recognition: the starting point of buying system is the perceived want or a choice. need popularity is the attention of the want or a intake problem with out whose satisfaction the customer feels stressed and anxiety-charged. That is, she or he feels that a preference or need has arisen which has to be glad. Needs or needs get up either because of inner stimulus or external stimulus.
2. Information search: need/want aroused and identified may be happy handiest whilst the product or offerings is to be had. Customer hobby is indicated inside the purchaser’s willingness to are searching for in addition approximately product or delight, he searches applicable records. purchaser has many alternative resources of information to tap consisting of pals, relatives, friends, salesman, sellers, classified ads, programs and chiefly purchaser organizations.
3. Evaluation and Intention: it's far customer’s deep interest within the product or services that paves the way for assessment and intention. The assessment degrees are the stages of intellectual trial of the product or services primarily based on the accumulated records and judges the relative worth of alternatives products or services from the perspective of want gratifying potential. The final purchases depend on the relative power of the nice aim to shop for.
4. Purchases decision: it's miles the fantastic aim of the consumer that results in a purchases choice. Selection to purchase implies client commitment for a product or a carrier. Almost, it is the final level inside the shopping for manner due to the fact, it completes the exchanges method.
5. Post-purchase reaction: Post-purchase reaction or response stands for the conduct of a client after a dedication to product has been made. This submit- purchase revel in may be a fixed of fine or negative feelings. Fantastic feelings or delight will bring about repeat income or as a minimum recommending the products or offerings to other; then again, dis-pleasure or bad emotions growing tension and doubts. this degree of thoughts is known as ‘cognitive dissonance’.

The step of buying process help us to understand how the consumer select the product to buy. In addition, we must study about the motivational process of consumer for buying the product. Consumer researchers have focused on untangling the relationship between threat and involvement for several reasons. First, analysing the relationship allows a higher expertise of the precise roles played with the aid of every construct in influencing distinct purchaser behaviours. Second, a know-how of the causal linkages among the various dimensions of involvement and threat is possibly to provide wealthy perception into the psychological mechanisms through which these motivational states arise and impact next cognitive and behavioural responses as well as volitional strategies that activate patience within the case of tough behaviours. Subsequently, this information is likewise of lots practical cost, guiding strategic tasks to gain from those motivational states of consumers. The contemporary state of research in this region affords an incomplete and on occasion contradictory view of the relationship among these motivational constructs. Utpal (2001) has conducted the research, and he found that the motivational process model makes an crucial contribution to the present purchaser psychology literature. the constructs of product involvement and perceived threat have long been considered as associated, however consumer psychologists have now not defined in any detail, the mechanisms thru which the connection exists. The motivational system version, and its empirical verification, at once addresses this brief-coming by presenting an uncomplicated and clear description of the mental strategies via which the motivational states arising from enduring and situational worries have interaction, to have an effect on chance perception and behavioural responses. His research has significant practical value for marketers as well. First, providing marketers with a model of the sequence through which evaluation of riskiness occurs and factors influencing the level of risk-evaluation and perception, is likely to have many benefits. Under ordinary conditions, in low or moderate enduring involvement product classes, new brands typically find it difficult to get the consumer to process brand-related information in greater detail. Such brands typically seek to win the consumer through positive emotional appeals. This research suggests that such incumbent brands in low or moderate enduring involvement product classes could adopt an alternative advertising strategy, of increasing the situational involvement and by that means, the level of risk perception, in order to encourage receptivity to brand-related information. Furthermore, customer loyalty is the organisation maximum enduring assets. via creating and retaining client loyalty, a company develops an extended-time period, collectively beneficial courting with the clients. Corporate executives are interested in essential questions regarding the idea of customer loyalty, e. g. , the riding forces of client loyal behaviour.

Strategic recommendation

The definitions of point to relationship advertising as attracting and preserving clients within the long time. the aim is to transform buyer behaviour and status from fleeting casual come across, via marketing interventions, to committed relationships. courting advertising advocates contend that marketing can not simplest be approximately growing, selling and handing over products, wherein the emphasis turned into directed toward getting clients instead of keeping them. It is far step by step greater worried with the development and renovation of together pleasing relationships with clients and holds the promise of maintaining customers loyalty. Kumar, Vohra & Dangi (2017) have cited that price consciousness from Gabor and Granger 1961 that it as the extent to which the buyers are conscious of a product’s price during the purchase. Later, Monroe and Petroshius (1981) articulated it as the level to which the consumers are unwilling to pay more for a product and may even refrain from buying it if they locate the charge to be extra than what is suitable to them.

Innovative and creative organizations create new techniques, think innovatively, and beef up their competitive space in the industry by fulfilling their customers’ demand. Innovative strategies can incorporate a brand-new pricing version, cost propositions, marketplace expansion, client pushed rules, green supply chain, and other method for “reaching out to customers”. This marketing blend is the principle reason for shoppers to buy a positive product/service, because of a differentiation in purchaser cost with a purpose to cause increased organizational overall performance. They have given several strategies for organisation such as low-cost defenders. Low-cost defenders are to minimizes the costs in their advertising and marketing approach to achieve superior performance over competition. businesses competing with low-cost defenders differentiate themselves via lowest charge strategies with good enough product/service benefits. Differentiated defenders are players who cognizance on overdue and early majority clients introducing nice services/products in the marketplace. The simplest way for differentiated defenders to generate the maximum benefit from the commercial enterprise is to distinguish themselves heavily, presenting advanced offerings/products and other benefits. Some differentiated defenders are running in product or service orientated industries, using pre-sale and publish-sale techniques to distinguish from competitors. These agencies need to set up a unique market proposition and special consumer base a good way to rate higher charges.

Marketing communication Kitchen (1993) has defined the public relation as “it is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics”. The traditional promotional advertising is more nature depicting the ambience, good obtainable, and benefit to the company. Furthermore, sponsorships and others may represent an involvement to communicate which penetrates consumer perceptual filters in an indirect way. There also have problem with the advertising inflation, it means that marketing budgets are decrease to public relation activities, among others. In Kitchen’s (1993, p. 57) article also suggested the marketing communication for 5 elements which are;

1. Advertising: any paid form of promotion of ideas and goods by an identified sponsor.
2. Sales promotion: short-term incentives to encourage customer to purchase goods/service.
3. Personal selling: oral presentation in a conversational form between buyers and customers.
4. Marketing PR/product publicity: the latter indicates non-personal stimulation by using published medium or media that is not paid by sponsor.
5. Sponsorship: general/corporate and marketing communications

Conclusion

The marketing strategy and marketing communication that company uses must be suitable with their product and service style as well as their target customer in order to get the customer satisfaction, use the information from them and produce the product that meet their expectation. These will create the customer loyalty to our product and create the repeat purchase behaviour.