“A STUDY ON MARKETING STRATEGIES OF LAKME”

PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAIFOR PARTIAL COMPLETION OF

DEGREE OF BACHELOR OF MANAGEMENT STUDIES
UNDER THE FACULTYOF COMMERCE
2018-2019
SEM VI

SUBMITTED BY:
CHETNASINGH
ROLL NO: 52

UNDER THE GUIDANCE OF

MRS. MONIKA JAIN

S.K.SOMAIYA DEGREE COLLEGE OF ARTS SCIENCE AND

COMMERCE
VIDHYAVHAR (E), MUMBAI: 400077

MARCH 2019

1
 “A STUDY ON MARKETING STRATEGIES OF LAKME”

PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAIFOR PARTIAL COMPLETION OF

DEGREE OF BACHELOR OF MANAGEMENT STUDIES
UNDER THE FACULTYOF COMMERCE
2018-2019
SEM VI

SUBMITTED BY:
CHETNASINGH
ROLL NO: 52

UNDER THE GUIDANCE OF

MRS. MONIKA JAIN

S.K.SOMAIYA DEGREE COLLEGE OF ARTS SCIENCE AND

COMMERCE
VIDHYAVHAR (E), MUMBAI: 400077

MARCH 2019

2
 S.K.SOMAIYA DEGREE COLLEGE OF ARTS SCIENCE AND
COMMERCE
VIDHYAVHAR (E), MUMBAI: 400077
CERTIFICATE

This is to certify that Ms. CHETNA SINGH has worked and duly completed her Project
Work for the degree of BACHELOR OF MANAGEMENT STUDIESunder the faculty
of commerce inthe subject of MARKETING and her project is titled as
“MARKETING STRATEGIES OF LAKME” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any degree or diploma of any
university.
It is his/her own work and facts reported by his/her personal findings and investigations.

Name and sign of Dr. manali londhe

External Examiner college principal

Dr. aparna jain Mrs. Monika Jain

Coordinator Guiding teacher

College seal

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 DECLARATION

I undersigned Ms.Chetnasingh, hereby declare that the work embodied in

this project work titled as “marketing strategies of lakme”, forms my own
contribution to the research work carried out under the guidance of Mrs.
Monika Jain is a result of my own research work and has not been
submitted previously for any degree or diploma of any university.

Wherever references have been made to previous work of others, it has been
clearly indicated as such and included in the bibliography.

I, hereby further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

NAME AND SIGNATURE OF THE LEARNER

Certified by
NAME AND SIGNATURE OF THE GUIDE.

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 ACKNOWLEDGEMENTS

To list all who have helped me is difficult because they are so numerous and the depth is
so enormous

I would like to acknowledge the following as being the idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me this chance to do
this project.

I would like to thank my Principal,Dr. MANALI LONDHE for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our CoordinatorDR. APARNA JAIN, for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Mrs.
MONIKA JAINwhose guidance and care made the project successful.

I would like to thank my college library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and everyone who have directly or indirectly helped me
in the completion of the project especially My Parents and Peers who supported me
throughout my project.

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 INDEX
SR TITLE PAGE
NO. NO.
1. EXECUTIVE SUMMARY 10

2. INTRODUCTION 11-28
1.1 PLAN OF THE PROJECT
1.2 HISTORY
1.3 TOUCH OF CONTROVERSY
1.4 SWOT NALYSIS
1.5 EVERYTHING A GIRL WANTS
1.6 LAKME FASHION WEEK
1.7 OBJECTIVES
1.8 SCOPE
1.9 LIMITATION
1.10 SIGNIFICANCE OF THE STUDY

3. REVIEW OF LITERATURE 29-37

3.1 VISSION
3.2 MISSION
3.3 STATERGY
3.4 MARKET SEGMENTATION
3.4.1 SEGMENTATION
3.4.2 TARGETING
3.4.3 POSITIONING
3.4.4 DISTRIBUTION STATERGIES
3.4.5 POSITIONING STATERGIES
3.5 CORPORATE SOCIAL RESPONSIBILITY
3.6 RESEARCH AND DEVELOPMENT

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 3.7 MARKET OVERVIEW
3.8 MARKET TRENDS
3.9 IMPORT MARKETS
3.10MARKET ACCESS

4. RESEARCH METHODOLOGY 37-51

4.1 RESEARCH DESIGN
4.2 SAMPLE DESIGN
4.3 OBJECTIVES
4.4 SCOPE OF THE STUDY
4.5 LIMITATIONS OF THE STUDY
4.6 SIGNIFICANCE OF THE STUDY
4.7 HYPOTHESIS
4.8 DATA COLLECTION METHOD
4.8.1 PRIMARY DATA
5. SECONDARY DATA

6. DATA ANALYSIS, INTERPRETATION AND 52-74

PRESENTATION
6.1 QUESTIONNAIRE
6.2 MARKETING MIX OF LAKME
6.3 ADVERTISING STATERGIES OF LAKME
6.4 COMPETITORS
6.5 FINDINGS

7. COCNCLUSION AND SUGGESTIONS 75-77

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 8. BIBLIOGRAPHY 78

9. ANNEXURE 78-80

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9
EXECUTIVE SUMMARY

Within a short span of the last five to six years, the use of cosmetics by
Indian consumers has increased significantly with more and more men and
women takin greater interest in personal grooming, increasing disposable
incomes, changing lifestyles, influence of satellite television and greater
product choice and availability.

This cosmetics and personal care industry has been growing at an

average rate of 20 per cent for the last few years. The growing Indian
cosmetics market offers promising prospects for international brands. The
growth rate in cosmetics markets reflects an increasing demand and hair
care products in India. Perfumes and fragrances, skin care, and hair care
products are some of the major segments with promising prospects for
U.S. companies.

Penetration of most cosmetic and toiletries is very low in India.

Current consumption of many product is well below that of many
countries in Asia. The low market penetration of many cosmetics and
personal care products offers room for growth.

The urban population with increasing purchasing power is the major force
driving demand for cosmetics and toiletries. India is a very price sensitive
market and mass-market products constitute the major part of the
cosmetics and toiletries market. India’s import of cosmetics and which
toiletries and intermediate raw materials is around US$120million, of
which the U.S. has a share of approximately 10 percent.

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INTRODUCTION

Makeup is still a controversial topic for women. Plenty of feminists link it

to some sort of spooky conspiracy of the patriarchal society. But then
there are also those who don't see anything wrong in wearing it. Formally,
they are known as lipstick feminists. The views of these two groups are
broad. That is why, we need to dive into personal level. At the end of the
day, wearing makeup is a choice.

Traditionally, this ritual is added to routine during high school years.

Moms don't like it. In their view, makeup has tons of disadvantages. The
daughters could care less. For them, the advantages outweigh every
negative point, keeping the controversy alive. Even siblings clash over it.
If we peep into the advantages and disadvantages we will have to assert
that both sides are correct.

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Advantages

1. It makes you presentable: Makeup is similar to dresses. It boosts

beauty as well as hides lines and spots, helping the woman feel confident
about her face.

2.It can help you get jobs in certain fields: Presentable face is most
preferred in jobs where meeting with people is necessary. When I went to
manage my uncle's Holiday Inn I noticed that he had interest in hiring
women who wore makeup apparently because they gave an air of
sophistication. Similar pattern exists within marketing, mass
communication, airline and event planning jobs.

3. It screams that you care about yourself: Believe it or not, one reason
why men are attracted to women who wear makeup is because it says that
they are free of sadness and depression. I learned about this back in my
college Freshman year from some guys. I was amazed by the revelation.
So it is not only beauty that matters, but also our habit of taking care of
ourselves. Makeup signals just that.

4. It makes your date feel special: In some foreign countries, you will
hear songs that say "I wear makeup for my lover". Even for weddings,
special attention is given to bride's makeup. Sure the current emphasis is
on photographs. But traditionally it has to do with making the partner feel
special. In other words, it is your way of telling them that you wish to win
their heart. Men may do the same by combing hair, shaving and wearing
proper clothes.

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5.It can make you creative: Those who are used to wearing makeup
know that it is an art. In most cases, they like to experiment with it,
helping their hands become more talented.

6. It can bring either maturity or innocence to your face: There is a

misconception that makeup brings youth to only aging face. When proper
techniques and colors are used, it can make a young face appear mature.
Think about the dark shades.

7.It can make you look perfect in pictures: Not everyone is born with
photogenic facial features. Because of this, an entire set of makeup tricks
is invented by the experts. Celebrities are the clients. That said, through
trials and errors, it is possible to invent our own tricks. They can fully add
the kind of highlights we long for in our pictures.In the picture on the
right: Cinema Bizarre, one of the coolest groups from Germany

8.It makes a statement: Makeup just like a picture can tell a lot about a
person's views. By using different tricks, you can pretty much express it
all without saying a word. Think about the Gothic girls and boys.

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PLAN OF THE PROJECT

Beauty is skin deep and sure enough Lakme understand it like no one
does. Today brand lakme stand strong as one of the 100 most powerful
brands right fully so, for its ‘the’ brand that lights up the faces of
million girls, every day. It’s a brand that inspire, motivate and infuses
confidence, color, shades, brushes and tones to beautify, have been the
core attribute of the products. The challenge which cosmetic industry
has to break was the negative connotation of “being fashionable”.
Though the brand missed out on during the past year despite having
roped top brand ambassadors is that it scored low on promotional
gauge. In the following project we basically seeks to provide
experiential marketing solutions to brand. We also gauge into reasons
that why Lakme’s position as market leader was threatened when
international majors like Revlon and Maybelline entered the fray in the
mid-90s. The research process was entailed by visiting lakme outlets in
Noida, which includes the responsereceived from the audiences via
through questionnaires for deeper insights.
OBJECTIVES
1. The main objective behind the study of this project is to evaluate marketing strategies
of lakme company
2. To study the distribution channels of lakme cosmetics
3. To study the 4ps of marketing
4. Help in building positive association with people thereby enhancing brand personality
5. How to break the negative connotation of ‘being fashionable’.
6. To study lakme market share in cosmetic industry in comparison to other brands.

SCOPE OF THE STUDY

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The study uncovers the impact, utility and effectiveness and efficiency of marketing
strategies of Lakme on the success of cosmetic industry. A special emphasis is laid down
on lakme cosmetics.

The project begins with detailed information about marketing strategies and the impact of
measuring customer satisfaction in cosmetic industry. Further it covers topics as data
collection and tools used for research methodology. Then it gives analysis of the data
collected and it is then used to reach to a conclusion. The study is useful for better
understanding of marketing strategies towards lakme cosmetic industry.

For the purpose of this study a questionnaire was designed based on different parameters
to judge and understand consumer behavior towards the lakme cosmetics. Target group
pf the project was mainly lakme product users.

As this study is confined to lakme, it covers analysis of consumer behavior, attitude,

perception, marketing strategies and satisfaction with respect to lakme as a BRAND in
cosmetic industry.

LIMITATIONS OF THE STUDY

Geographical scope of the study was limited to a small area, which may not represent the
whole sector of India. Six of the sample is 100, which is ofcourse small in comparison to
entire population.

Due to the limitation of time only few people were selected for the study. So the sample
of consumer was not enough to generalize the finding of the study.

There can be interactions and explanations to the data collected. This is empirical study
and the research provides the explanation as understood by the researcher only.

The source of the data for the study was primary data with the help of self-administered
questionnaire. Hence, the chances of unbiased information are less.

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SIGNIFICANCE OF THE STUDY

The concept of marketing is related to analyzing the markets and the customers in
relation to any particular product. This is done basically in order to discover the
unfulfilled demands of the consumer. Marketing process refers to the procedure where
the steps are taken and decisions are made in order to match the requirements of the
consumers by implementing the strategies in order to compete with competitors.

Cosmetic companies in India are placing increasing emphasis on market research and
targeting new market segments such as teenagers men and young women. Cosmetics
constitutes high growth segments. Nail enamel and lipsticks constitutes for 65 percent of
total color cosmetic sales in India..

With changing lifestyles, higher disposable incomes, increasing

advertising, penetration of satellite television, awareness of western
world and growing importance of beauty pageants, there have been
significant changes and use of cosmetics is on the rise. Also with the
boom in the Indian fashion world and television industry, there has
been a rise in professional beauty care products.

LAKME HISTORY

Flashback to the early fifties. India was a young country, and typically
possessed all of the economic troubles of a budding economy. Naturally,
Prime Minister Nehru was concerned about the Indian middle and upper
class ladies giving away valuable foreign exchange buying cosmetics from
the West. Not their fault really.

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What did the Indian market has to offer them anyway? Besides, two
centuries of exposure to the Raj-and Europe-had somehow sent across a
quiet message: make-up from the best, is by default, the best.

To help change matters, Nehru asked industrialist JRD Tata to step in. He
was the only one with the necessary entrepreneurship to make a
difference. Never one to back off from a challenge -Tata began to study
the situation carefully.

To appeal to Indian ladies, the brand had to have an aspirational touch-be

affordable to all classes and yet find resonance across the board.

After much deliberation, he decided to call it Lakme--incorporating the

dramatic and glamorous appeal of the French opera after which it was
named. Interestingly, the name is a western derivative of the Indian
Goddess of Wealth--Lakshmi. But there’s no way Indian ladies would be
buying anything called Lakshmi kajal or lipstick- and so Lakme it was.

A touch of irony there, anyone?

In any case, this being the first time anyone was manufacturing cosmetics
on desi shores, a lot of research was required to figure out the unique
needs of Indian skin and color. Experts were put to work round the clock.

In 1952, Lakme started operations as a 100 percent subsidiary of Tata Oil

Mills. Simone Tata, the Swiss wife of Naval H. Tata, joined as managing
director in 1961 became its chairperson in 1982.

It helped that she was an European lady and understood where exactly to
steer the budding beauty brand.

Christened India’s very own Corporate Czarina Simone was the breath of
feminine air in a largely male dominated world. Stylish, warm and
innovative, she had lived long enough through the Second World War in

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Switzerland to understand the importance of thrift and value for money-
and the Lakme line reflected that.

It was Simone who was largely responsible in making Lakmé the

household name that it became. She was appointed to the board of Tata
Industries in 1989

Time went on. Tata eventually sold Lakme to Hindustan Unilever in 1996
for Rs.200 crore-given Unilever’s vast and varied experience in the global
FMCG field.

In 2014, Lakme was ranked 36th among India’s most trusted brands
according to the Brand Trust Report 2014. The company is the title
sponsor for Lakme Fashion Week (LFW) a bi-annual fashion event which
takes place in Mumbai.

Image over the years

Lakme has also played on pricing for its revamped range for the working
woman. It is priced between Rs.200 and Rs.600, bringing it within the
reach of most. International brands such as Revlon, Chambor and even
L’Oreal Paris are all priced over Rs.500, and Maybelline is the only mass-
market brand among the global players.

Lakme Fashion Week and School of Style

Over the decades, Lakme has not restricted itself to manufacturing make-
up, but exploring the world of glamour in its entirety. From Lakme salons
to cater to your daily make-up needs to a fashion week and school of style,
the brand has gone the distance.

For starters, the Lakme Fashion Week is a bi-annual fashion event that
takes place in Mumbai in February and August every year. Run by the
Fashion Design Council of India (FDCI), its title sponsor is Lakme, first

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started in 1999, it features the crème de la crème models and stars of the
Hindi film industry, not to forget the most coveted and respected names in
the world of fashion. From Arjun Rampal to Maliaka Arora Khan,
Aishwarya to Kareena to Deepika Padukone, it has featured the best
looking people on the Indian landscape-and launched many an iconic
career.

In 2014, Lakme was ranked 36th among India’s most trusted brands
according to the Brand Trust Report 2014. It is also the title sponsor for
Lakme Fashion Week (LFW) fashion event

A TOUCH OF CONTROVERSY

Since its inception, there have been rumors of discontent with regard to
the much touted Fashion Week, how it is more about politics and less
about fashion and so on.

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From movie star Akshay Kumar getting arrested for obscenity (when he
playfully asked wife Twinkle to lightly unzip the jeans he was wearing), to
unexpected changes

Of mentors--apart from leaving out noted designers, there have been

several criticisms directed at the event.

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SWOT ANALYSIS OF LAKME

STRENGTH:

1. High Brand awareness:

Lakme is a well-known brand in the cosmetic & beauty industry. High visibility through
targeting high end beauty parlors/salons & also through sponsoring fashion events and
strong promotions has helped the company in making top of mind awareness. 2.

2. Fantastic product line:

Lakme contributes to the beauty of women through a fantastic product line, which has
amazing depth of products. Lakme is also known to launch a variety of cosmetics which
are innovative and are known to solve the problem of cosmetics for women. 3.

3. Extensive distribution system of the parent company:

HLL is the parent company who purchased it from TATA group. Since HLL is already
an established FMCG brand so it uses extensive distribution channel to make the Lakme
products available in the market. Also in addition to traditional channel, it also uses
unconventional distribution system to make the products available at pharmacist, beauty
parlors & salons. 4.

4. Celebrity endorsement:

Lakme positioned perfectly in the mind of prospective consumers by targeting apt

celebrities to represent their brand.

5. Strong parent company:

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 HLL the parent company is the well-known company in the FMCG industry has
stable financial position which is good for its group brands.

WEAKNESS. :

1. Limited presence in the premium market:

Lakme have presence in the VFM (Value for money) segment in which it is leader.
Lakme is the overall market leader in the colour cosmetic segment (lip care and nail
enamel) with a wide range of products and prices but when it comes to premium market
which is growing at the rate of 30% Revlon is the market leader. 2.

2. Problem of differentiation:

Its broad portfolio sometimes creates confusion in the mind of the consumers. Such that,
some products are known to be very good but others are ignored because no
differentiation is present for them. 3.

3. Quality of Lakme salons:

Falling quality of Lakme salons will result in the negative word of mouth which can
affect sales & growth of the company in future.

OPPOURTUNITIES:

1. Changing lifestyle:

Migrating population & with the saturation of developed economies, changing taste &
preferences, Education & changing lifestyle of the developing economies had resulted
into growth in the grooming segment. People now want to look sharp, smart& confident.

2. Growing premium segment:

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There is a growth in the demand of premium segment goods of which grooming industry
is not an exception. So with growing demand if Lakme extend its presence in this
segment then it will help it in becoming a leader in grooming industry. 3.

3. Co-creating the growth strategies:

Creating more Collaborative & participative community focused activities will help the
company in building brand image & co-creating growth opportunities.

THREATS:

1. Intense rivalry:

Intensive competition from the local, national &International players on price &
availability factors is the major threat for the players in the segment which is affecting the
industry as a whole.

2. Counterfeit products:

Fake products are directly affecting the brand image of the company in the rural market
& small towns.

3. International brands extending into other markets:

International brands like Revlon which have centuries of expertise in the Personal care
industry can affect the business of Lakme in the selected markets or can limit their
growth rate.

4. Increasing allergies cases:

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Due to change in the lifestyle skin is becoming more sensitive due to which companies
in the personal care industry face risk of losing sales on allergic grounds.

EVERYTHING A GIRL WANTS

Lakme has a wide range of products in color cosmetics that bring visible results. To add
to this vast repertoire is a range of specialized skin care products for the discerning
women. Keeping skin looking healthy and glowing is also a part of looking great. Lakme
provide complete package with skin care range and wide range of colors to spice up the
look.

LAKME PRODUCTS

Colors

From the spicy shades to faltering look, Lakme offers arrange of products in the faces,
lips, eyes and nail segment for beauty aficionados.

Face

Lakme Daily Wear Soufflé, Lakme Perfecting liquid Foundation, Lakme

RadianceCompact, Lakme Flawless Matte Complexion Compact.

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 Lips

Lakme Enrich Lip color, PerfectingDefinition Lip pencil, Star shineLip-gloss, Glosses in
lustrous shades available in 14 shades.

Eyes

From dramatic to natural look a wide range of products are on offer to crate perfect eyes.

1. Lakme Kajal:
2. Lakme InstaEyeliner eyelids
3. LakmeLakme Shimmer Eye Cube

Nails

True Wear Nail Enamel with Lacquer like finish. Contains resins and silicones with color
lock technology that gives brilliant long lasting shine.

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 Skin

For radiant skin lakme is there to pamper your skin with specialized products for he diva
in you.

Cleansing

Strawberry silk splash face wash, Lakme fundamental Deep pore Cleansing Milk.

Moisturizer

1. Lakme fundamental Peach Milk Moisturizer

2. Lakme Fundamental Winter care Lotion

Sun lotions

The range comprises of lotions to keep your skin healthy and younger looking.

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LAKME FASHION WEEK

Lakmé Fashion Week is arguably India’s most aspirational, influential and glamorous
fashion and lifestyle event which includes bringing together India’s most elite designers,
celebrities, socialites, industrialists and sponsors. More than 40,000 visitors attend every
event, consistently attracting heavy media coverage pre and post event. In addition, the
event boasts the highest digital following for any fashion event in the world.

The event was conceived and created with a vision to "Redefine the future of fashion and
integrate India into the global fashion world." It is organized twice annually across two
editions “Summer/Resort” held in February and “Winter/Festive” which takes place in
August.

The fashion team at IMG Reliance strives to create a robust event that reaches out to a
wide variety of stakeholders within the fashion ecosystem. This includes nurturing
budding designers every season through the GenNext program which has seen the likes
of Masaba Gupta, Rahul Mishra, Pero and Nachiket Barve come through to make a name
for themselves in the Indian fashion industry.Lakmé Fashion Week also dedicates one
day to sustainability within the textileindustry, focusing on environmental impact, human
rights considerations and the promotion of Indian craft.

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 LITERATURE REVIEW

VISION

To earn the love and respect of India, by making a real difference toevery Indian.. HLL
follows its parent company’s mission to “addvitality to life”. They strive to meet
everyday needs of nutrition,hygiene, and personal care products that help people “feel
good, look good, and get more out of life”.

MISSION:

BEAUTY FOR ALL

For more than a century, Lakme has devoted itself solely to one business: beauty. It is a
business rich in meaning as it enables all individuals to express their personality gain
self-confidence itself and open up to others. Beauty is a language. Lakme has set itself
the mission of offering men & women worldwide the best cosmetics innovation in terms
of quality; efficacy & safety .It purses this goal by infinite diversity of beauty needs and
desires all over the world. Beauty is universal. Since its creation by a researcher, the
group has pushing back the frontiers of knowledge. Its unique research arms it to
continually explore new territories & invent the products of the future, while drawing
inspiration from beauty rituals the world over. Beauty is science.

By drawing on the diversity on its teams, & the richness & the complementarily of its
brand portfolio, Lakme has made the universalisation of beauty its project for the years to
come. Lakme offering beauty for all

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STRATEGY
• Grow ahead of the market by leading marketdevelopment Activities
• Leverage positive impact of growing Indian economyon consumer spending
• Grow a profitable foods and Top end business
• Grow the bottom-line ahead of top line
• Strong commitment to sustainable development

MARKET SEGMENTATION

WHAT IS STP PROCESS ?

One of the most strategic concept contributed by marketing discipline to business firms
and other types of organizations, is that of market segmentation".

Market Segmentation is a process, in which groups of buyers within a market are divided
and profiled according to a range of variables, which determine the market
characteristics and tendencies. The process of Segmentation is part of a chronological
order, which follows on to include Targeting and Positioning. Targeting is the process of
identifying the most attractive segments from the segmentation stage, usually the ones
most profitable for the business. Positioning is the final process, and is the more
business-orientated stage, where the business must assess its competitive advantage and
position itself in the consumer’s minds to be the more attractive option in these
categories.

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SEGMENTATION

Segmenting a market has widely been debated over the years as researchers have argued
over what variables to consider when dividing the market. Approaches through social,
economic and individual factors, such as brand loyalty, have been considered along with
the more widely recognized geographic, physiographic, demographic and behavioral
variables proposed by Philip Kotler. Segmenting a market therefore, is a process of
organising the market into groups that a business can gain a competitive advantage in.
They must, however, avoid over-fragmenting the market as the diversity can make it
difficult to profitably serve the smaller markets. The characteristics marketers are looking
for are measurability, accessibility, sustainability and action ability.

1. Measurability - The understanding of size, purchasing characteristics and value

needs of a particular segment.
2. Accessibility - The ability to communicate with the segment in an effective
manner.

3. Sustainability - The segment is profitable enough to differentiate itself from other

segments in the market andmaintains the value the business offers

4. . Action ability - The capability of an organization to create a competitive

advantage with its offering in the specific segment of the market

There are two approaches to segmenting a market - a discovery approach or an analytic

approach. Each approach is appropriate to the type of business and market they are
approaching. An analytic approach is a much more research and data based approach,
where two sets of information are derived and used to segment the market. The two
approaches give the business an idea for the future profitability of a segment, and the
tendencies and behaviours it portrays. The first approach gives them an idea on the future

30
growth of the segment, and whether its investment outcome is worthwhile. This,
therefore, will usually be done in advance. The second approach is more based around the
observation of the buying behaviours of the segment and is more based around primary
research. The discovery approach is more suited to a market with a limited customer
base, and the process of discovering segments is based on interest in the offer or a similar
offer the business may be able to provide. Because of this, a discovery-based approach is
a much timelier process by which to determine the profitable segments. Both approaches
can benefit from elements of the other and, in most situations, work well in unison with
each other when determining a profitable and defined segment.

Some different ways you can segment your market include the following;

Demographics which focuses on the characteristics of the customer. For example age,
gender, income bracket, education, job and cultural background. The lakme sunscreen
lays emphasis on its market which basically includes girls and women aged between 15
years of age to 45 years of age.

Psychographics which refers to the customer group's lifestyle. For example, their social
class, lifestyle, personality, opinions, and attitudes of the females.

Behaviour which is based on customer behaviour. For example, online shoppers,

shopping centre customers, brand preference and prior purchases.

Geographical location such as continent, country, state, city that the customer group
resides.

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TARGETING

Targeting is a follow on process from segmentation, and is the process of actually

determining the select markets and planning the advertising media used to make the
segment appealing. Targeting is a changing environment. Traditional targeting practices
of advertising through print and other media sources, has made way for a

social media presence, leading a much more ‘web connected’ focus. Behaviouraltargeting
is a product of this change, and focuses on the optimization of online advertising and data
collection to send a message to potential segments. This processis based around the
collection of ‘cookies’, small pieces of information collectedby a consumer’s browser
and sold to businesses to identify potential segments to appeal to. For example, someone
consistently accessing photography based searches is likely to

have advertisements for camera sales appear, due to the cookie information they deliver
showing an interest in this area. Whilst targeting a market, there are three different
market coverage choices to consider - undifferentiated, differentiated and niche
marketing. Choosing which targeting choice to pursue depends on the product or service
being offered. Undifferentiated marketing is the best option to focus on the market as a
whole and to promote products that have a wide target segment, whilst differentiated and
niche marketing are more specialized and focus on smaller, more selective segments.

32
POSITIONING

Positioning us the final stage in the ‘STP’ process and focuses on how the customer
Ultimately views your product or service in comparison to your competitors and is
important in gaining a competitive advantage in the market. Therefore, customer
perceptions have a huge impact on the brands positioning in the market. There are three
types of positioning that are key in positioning the brand to a competitive advantage;
these are Functional Positioning, Symbolic Positioning, and experiential positioning.
Functional Positioning is focused on the aspects of the products or services that can fulfill
consumers’ needs or desires. Symbolic Positioning is based on the characteristics of the
brand that fulfill customers’ self -esteem. Experiential positioning is based around the
characteristics of the brands that stimulate the sensory or emotional connection with the
customers. A combination of the three is key to positioning the brand at a competitive
advantage to its immediate competition.

Overall, positioning should provide better value than competitors and communicate this
differentiation in an effective way to the consumer.

33
4ps and STP of Lakme Promotional strategieS

1. Promotional posters.:Launch of beauty magazines.

2. Advertisement through film Commercials.
3. Open spa to promote the Brand.
4. Selecting reputed brand ambassador.
5. Sponsoring and Social Responsibility. Start campaign for safe cosmetics which
was started in February 2013.

DISTRIBUTION STATERGIES

With respect to distribution related activities like salesand marketing, HLL is second to
none in pushing theboundaries of what is possible financially, structurally,and
logistically. Beyond its pioneering work FMCGdistribution, the company has sought to
instill in itscustomers an elevate sense of brand experience whilesimultaneously
providing greater and more variedaccess to its products as well as improved clarity to
itscommunications. New initiatives include raising brandvisibility through in-store
promotions, store-basedproduct facilitators, and self-service. HLL has enabled aneven
further level of personalization and brandexperience in the direct sales arena with its
ground-breaking

34
POSITIONING STATERGIES

1. Most innovative.
2. High Quality, Advanced products & affordable price.
3. Only cosmetic brand in world that has products in all the segments Consumer,
Luxury, Professional & Pharmaceuticals.

Hindustan Unilever – Present Scenario

 15,000 employees
 1,200 managers
 2,000 suppliers & associates
 75 Manufacturing Locations
 Total Coverage 6.3 Mln Outlets
 Direct Coverage 1 Mln outlets

CORPORATE SOCIAL RESPONSIBILITY

At Lakmé, sustainability constitutes a central part of our strategy: it is the source of
innovation and cohesion of all our activities. We help protect the planet and improve the
lives of those who may come into contact with our business and products. We started this
journey with a sustainable business strategy focused on two key aspects: ethical
consumerism and environmental protection.

We use the best practices to minimize the environmental impact of our entire value chain
over the long term and are meticulous in dealings with our collaborators so as to build
long-lasting and trustworthy relationships.

35
CRUELTY-FREE PRODUCTS
We do not market any cosmetic products tested on animals.

ORGANIC INGREDIENTS
We meet the ECOCERT Greenlife standard for natural and organic cosmetics.

RECYCLING
We take full responsibility for the proper recycling of all waste generated during the
production process.

ENERGY SAVINGS
We use the CIP cleaning system to reduce water consumption and recycle the water we
do use. We use solar panels to generate clean energy.

RESEARCH AND DEVELOPMENT .

EXCELLENCE IN TECHNICAL QUALITY

In 2015, Lakmé inaugurated its headquarters, bringing together R&D, logistics,

management and the new Lakmé Studio. An industrial system with the latest
technological advances in the manufacturing of cosmetic products that offers maximum
guarantees of quality, safety and production capacity.

36
Our own research and manufacturing allow us to develop products according to the
protocols established under ISO 22716 Good Manufacturing Practices on Cosmetics

MARKET OVERVIEW

The current size of the Indian cosmetic market is approximately US$600 million. Of this,
the fastest growing segment is color cosmetics,accounting for around US$ 60 million of
the market. Industry sourcesestimate a rapid growth rate of 20 percent per annum across
differentsegments of the cosmetics industry reflecting an increasing demand for all kinds
of beauty and personal care product. Growth has come mainlyfrom the low and medium-
priced categories that account for 90 percentof the cosmetics market in terms of

37
volume.The Shahnaz and the Biotique brands dominate the premium herbalcosmetics
segment in India, estimated at USD 100 million.

Since liberalization, many international brands like Avon, Burberrys,Calvin Klein,

Cartier, Christian Dior, Estee Lauder, Elizabeth Arden,Lancome, Chambor, Coty,
L'Oreal, Oriflame, Revlon, L'Oreal,Yardley, Wella, Schwarzkopf, Escada, Nina Ricci,
Rochas, Yves St.Laurent and Japanese cosmetics company, Shiseido have entered
theIndian market.

The prices of most foreign brands have been fairlyhigh, which has deterred average
Indian consumers. Internationalbrands cater to a segment that can broadly be classified as
theurban higher income group.

MARKET TRENDS

Cosmetics and toiletries are not just the domain of women any longer and Indian men too
are increasingly taking to the use of more and more body sprays, perfumes and other
cosmetics and toiletries. With risingdemand from men, the Indian market is getting
enlarged and many players are coming out with cosmetic products especially skin care
products for men. The market size of men's personal care segment isestimated at
approximately US$ 165million, with Gillette having thelargest market share. Other major
players in this segment includeGodrej, J.L. Morison and HLL.

38
The growing demand for men'scosmetics have made many direct selling companies such
asModicare and Amway to launch new products for men.n the last five/six years, there
has been a renewed craze for herbalcosmetic and personal care products, especially in the
skin caresegment with the growing belief that chemical-based cosmetics areharmful.
Shehnaz Hussain, Biotique, and Lotus Herbals are the major players in this segment.
Many companies also expanded their range toinclude herbal variants..The urban
population in the major cities with increasing purchasing power is the main force that
drives demand for various cosmetic products in India. The advent of satellite television
and awareness of the western beauty and fashion world, advertisements and
promotions,increasing number of women joining the work force is changing preferences,
customs and cultures in India

39
IMPORT MARKETS

Costs for importing products are much higher than producing it in thecountry. India
allows entry of imported cosmetics without anyrestrictions but the average import tariff
on cosmetics products iscurrently very high at 39.2 percent. This makes imported
products veryexpensive for most consumers. Most foreign cosmetics companiesselling
premium brands have had a difficult time developing the lowvolume premium market in
India. Many had to re-work price strategiestowards the mass segment. Price is not the
only reason responsible for their problems. Poor assessment of the size of the upper
middle andhigh-income groups, and price sensitivity even within these groups, hadadded
to their problems.

According to estimates of industry experts and trade publications,India's annual imports

of cosmetics and toiletries andintermediate raw materials is approximately US$ 120
millio

n.Countries like US, Europe, mainly France, Germany, Italy, Netherlands, and Spain
account for the major share; and Australia,China, and Japan account for rest of the share.

MARKET ACCESS

Prior to March 31, 1999, India had cosmetics and toiletries on itsrestricted list of imports
and a special import license was required for import of cosmetics and toiletries into the
country.

This regulationhas now been done away with and, India today, permits import of
cosmetics and toiletries without any restrictions. This has madethe Indian market more
attractive to foreign cosmetic companies

.Imports have been made easier, but not necessarily cheaper.

40
The total import duty rate on cosmetics and toiletries classifiedunder HS Code 33.03 to
33.07 is 39.20 percent, which

eventhoughhas been scaled down over the past few years is still very much on thehigher
side. The high duties cause imports to be price uncompetitive.Certain high - end products
just do not sell in India because the final price to bring it into India is too high for
consumers to pay.

41
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. The

research methodology includes the various methods and techniques for conducting a
research. “Marketingresearch is the systematic design, collection, analysis and reporting
of data and finding relevant solution to a specific marketing situation or problem” D.
Slesinger and M. Stephenson in the encyclopedia of social sciences define research as the
“manipulation of things, concepts or symbols for the purpose of generalizing to extend,
correct or verify knowledge, whether that knowledge aids in construction of theory or in
the practice of an art”.

Research is, thus, an original contribution to the existing stock of knowledge making for
its advancement. The purpose of research is to discover answers to the questions through
the application of scientific procedures. Our project has a specified framework for
collecting data in an effective manner. Such framework is called “research design”. The
research process followed by us consists of following steps.

RESEARCH DESIGN

1. Conclusion Oriented Research:

The research was conclusion oriented because thisresearch aimed at identifying the
characteristics of a successfulrespondents. In other words it is a research when we give
our own views about the research.

2. Descriptive Research:

The research was a descriptive research as it was concerned withspecific predictions,

with narration of facts and characteristics concerning individuals specially customers. In
other words descriptive research is a research where inresearcher has no control over
variable. He just presents the picture which has already studied.

42
 3. Sample Design

- sampling design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher adopts in selectingitems for the
sample. The following factors need to be decided within the scope of sample design.

 Universe of the Study:

The universe of the study included respondent’s speciallyrespondents in Mumbai city.

 Sample Size: -

Sample size is the number of elements to be included in a study.

Our research is based on the Exploratory Study.

Research is exploratory when you use no earlier model as a basis of your study. The most
usual reason for using this approach is that youhave no other choice. Normally you would
like to take an earlier theoryas a support, but there perhaps is none, or all available
models comefrom wrong contexts. Exploratory research means that hardly anything is
known about thematter at the outset of the project. You then have to begin with a rather
vague impression of what you should study, and it is also impossible tomake a detailed
work plan in advance.The gradual process of accumulating intelligence about the object
of study means also that it will be impossible to start by defining the concepts of the
study. You have to start with the preliminary notion of your object of the study, and for
its context. During exploratory research project, these provisional concepts then gradually
gain precession.

We have collected our data by drafting a questionnaire and thereby interpreted the study.

SAMPLE DESIGN

• The sampling procedure used to produce any type of sample

• Sample size of 100 customers

 Sample center is across Mumbai.

43
HYPOTHESIS

In the classical tests of significance, two kinds of hypothesis are usedthe null hypothesis
and the alternate hypothesis. Null hypothesis ( Ho)is used for testing. It is the statement
that no difference exists betweenthe parameter and the statistic being compared. Second
is Alternativehypothesis(HA) is alternative hypothesis is alternative hypothesis which
holds thatthere has been a change.

Hypothetical testing can be viewed as a six steps procedure;

• Establish a null hypothesis

• Choose the statistical test on the basis of assumption about the population
distribution and measurement level

• select the desired level of significance

• Parametric and non parametric tests are applicable under variousconditions like
parametric operates with the interval and ratio dataand are preferred when their
assumptions can be met. Non parametric tests do not require stringent assumptions about
the population distribution an are less useful with less nominal andordinalvalues.In this
report our null hypothesis and alternative hypothesis are stated below:

1. Ho: Respondents are satisfied with the quality of Lakme products.

Ha: Respondents are not satisfied with the quality

2. Ho: respondats are brand loyal

Ha: respondants are not brand loyal

3. Ho:respondants prefer lakme

Ha: respondants do not prefer lakme

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 4. Ho :repondants are more aware about the product through advertising

Ha: respondants do not know about the ads

5. Ho: the target audience is women and girls

Ha: the target audience is not women and girls

6. Ho: respondants have wide variety of choice

Ha: respondants do not have wide variety of choice

DATA COLLECTION METHOD

The task of data collection begins after a research problem has been defined and research
design plan checked out. while deciding about the method of collection of data to be used
for the study two types of data should be kept in mind vie, primary and secondary. for the
study, both primary data and secondary data were collected

PRIMARY DATA

Primary and secondary data fall within the scope of statistics and can be used as part of a
research method. The collected data may assist a company in measuring, assessing and
discussing the results of data collection for whatever purposes the information is
required. This is where the differences between the two become relevant as some
companies need a direct approach and therefore uses primary data sources whereas others
need previously collected information - that is, secondary data - which they can apply to
their own situation.

Primary data can be explained, therefore, as information collected from sources such as
personal interviews, questionnaires or surveys with a specific intention and on a specific
subject, and observation and discussion by the researcher him or herself, which

45
information is then assessed by that person. It is a direct approach and, as it is tailored to
a company's particular needs, reveals apparently, much-needed information to that
company which started the research; that is, the results are used for the purpose for which
they were originally intended. It can be a lengthy process but does provide first-hand
information.

Some Advantages of using Primary data:

1. The investigator collects data specific to the problem under study.

2. There is no doubt about the quality of the data collected (for the investigator).
3. If required, it may be possible to obtain additional data during the study period.

Some Disadvantages of using Primary data):

1. The investigator has to contend with all the hassles of data collection-
 deciding why, what, how, when to collect
 getting the data collected (personally or through others)
 getting funding and dealing with funding agencies
 Ethical considerations (consent, permissions, etc.)

2. Ensuring the data collected is of a high standard-

 all desired data is obtained accurately, and in the format it is required in
 there is no fake/ cooked up data
 unnecessary/ useless data has not been included

3. Cost of obtaining the data is often the major expense in studies

46
 SECONDARY DATA

Secondary data is information that is already available somewhere, whether it be in

journals, on the internet, in a company's records or, on a larger scale, in corporate or
governmental archives. Secondary data allows for comparison of, say, several years
worth of statistical information relating to, for example, a sector of the economy, where
the information may be used to measure the effects of change or whatever it is that is
being researched. Sometimes both methods are used in research as companies want to
measure their own responses and previously-generated responses from which a
comparison can be made.

Some Advantages of using Secondary data:

1. The data’s already there- no hassles of data collection

2. It is less expensive
3. The investigator is not personally responsible for the quality of data (“I didn’t do
it”)

Some disadvantages of using Secondary data:

1. The investigator cannot decide what is collected (if specific data about something
is required, for instance).
2. One can only hope that the data is of good quality
3. Obtaining additional data (or even clarification) about something is not possible
(mostly)

Data is also gathered by talking to the respondants understanding their beauty needs,
what makes them go for the brand. Also the level of

 Brand awareness
 Price level
 Visibility of brand personality
 Expectancy of communication

47
All these were the factors were the prime criterion for selecting (which brand), short
listing (level of trustworthiness) which had helped us to identify the winner in the
cosmetic industry.

 Sample size of 100 coustomers

Sample centre is across Mumbai.

48
ABOUT LAKMÉ

"AN ALLY TO THE CLASSIC INDIAN WOMAN, LAKMÉ INSPIRES HER TO

EXPRESS THE UNIQUE BEAUTY AND SENSUALITY WITHIN… ENABLING
HER TO REALIZE THE POTENCY OF HER BEAUTY."

The contemporary Indian beauty expert - Lakmé continuously innovates to offer a wide
range of high performance and world class cosmetics, skincare products, and beauty
salons. Combining international cosmetic technology with an in-depth understanding of
the Indian woman’s needs, Lakmé also offers its consumers a comprehensive beauty
experience through its products that are ideal for a variety of Indian skin tones..

KEY FACTS

Lakmé was the country's first cosmetic brand to introduce make up to Indian women and
takes pride in being the expert on Indian Beauty for over 50 years.

It is a complete beauty brand spanning colour cosmetics & skin care and extending to
beauty services through the network of Lakmé Beauty Salons.

Its bond with beauty and fashion is manifested through the Lakmé Fashion Week, which
is now the largest fashion event of its kind in the country.

Lakmé was the country's FIRST COSMETIC BRAND to introduce make up to Indian
women and takes pride in being the expert on Indian Beauty for over 50 YEARS.

It is a COMPLETE BEAUTY BRAND spanning colour cosmetics & skin care and
extending to beauty services through the network of LAKMÉ SALONS.

Its bond with beauty and fashion is manifested through the LAKMÉ FASHION WEEK,
which is now the largest fashion event of its kind in the country.

49
LAKME ON FACEBOOK

With almost 19.25 lakhs Facebook fans, of which a little over 39,000 actively engages in
discussion, Lakmé has a pretty strong Facebook presence. The brand has used a nice mix
of image and video updates from its events, make up tips, and contest, which has helped
it maximize its reach among Facebook Users

When sharing tips the brand does add a call to action asking its followers to take a
particular action. For example, in the following image, the brand has asked its fans and
followers to “like” the post only if they are going to use the shared tips. 233 likes, 17
shares, and 8 comments are the testimony to how seriously fans take the tips shared by
the brand

50
Talking of the post updates, it is worth noting that Lakmé has made an apt use of
hashtags, mentions, and links to important pages (see the image below), and the copy
used in the posts may not be impressive, but it has secured some rather emotionally-
charged comments. It could also be because of the reward announced for the winners

It is these types of content pieces that have moved people to engage with the brand,
though mostly it is in the form of likes rather than comments or shares (see the images
below). The brand should work on improving the instances of share and comments on its
posts, and that it can do by improving the quality of copy it uses in its updates.

51
 DATA ANALYSIS, INTERPRETATION AND PRESENTATION

QUESTIONNAIRRE
Q1. Gender

1%

35%
male
female
transgender
64%

Q2. Which brand do respondents prefer ?

9%

10%

9%

62%

lakme loreal maybelline others

52
Q3. What is main reason for the use of lakme ?

2% 12% 15%

71%

price product 3rd Qtr promotion

Q4. How did respondents come to know about thalakmebrand ?

74%

1.2

13%

10%

advertisment word of mouth internet others

53
Q5. For which purpose do respondents use lakme products

23% 23%
13% 30%

3.2

face nail enamel eye makeup lipsticks none

Q6. Quality of lakme products

13%

6%

81%

yes no no comments

54
MARKETING MIX OF LAKME
Lakme is associated with FMCG industry and deals in personal care products. It is a
cosmetic brand of Indian origin founded in the year 1952 by its founder J.R. D. Tata.
Lakme was a subsidiary of its parent company Tomco but in the year 1996, its ownership
changed hands and currently it is owned by Hindustan Unilever. Lakme occupies the first
position as leading brand for cosmetics in India and faces fierce completion from both
Indian and international brands like the following-

L’Oreal

Garnier

Yardley

Revlon

Avon

Oriflame

Product in the Marketing Mix Of Lakme :

Lakme occupies a major share in the domestic market with its vast range of products and
related services. It has nearly three hundred items to its credit that are used by
professional hair salons as well as individuals both in the domestic and international
market. Product portfolio of Lakme includes items for

Face- It includes items like illuminators, blush, compact, concealer, bronzer, contour,
sunscreen, serums, moisturisers, scrubs, face wash, foundation and face primer. Some of
them are:

55
Lakme Radiance Complexion Compact

Lakme Absolute Blur Perfect Makeup Primer

Lakme Absolute White Intense Concealer Stick

Eyes- Includes eyeliner, mascara, kajal, eye shadow, eye primer and eyebrow enhancers.
Some of them are:

Lakme Absolute Illuminating Eye Shadow

Lakme Absolute Kohl Ultimate Kajal Black

LakmeEyeconic curling Mascara- black

Lips- It includes items like lipstick, lip gloss, lip liner and lip balm. Some of them are

Lakme Absolute Illuminating Lip Liner

Lakme 9 to 5 Crease-less Crème Lipstick

Lakme Absolute |Gloss Stylist Lip Gloss

Nails- It includes Nail paints in several colour shades and remover for its removal. Some
of the products are:

Lakme absolute Gel stylist Nail Polish

Lakme True Wear Nail Color

Lakme 9 to 5 Frosties Nail Enamel

Lakme Nail Color Remover with Vitamin E

Tools and Brushes- Includes lip brush, blush brush, eye brush sets and face brush

Make-up kit- Includes eye palettes, face palettes, customised palettes and combo sets.

56
Place in the Marketing Mix Of Lakme :

Lakme was the first brand in India dealing with cosmetics on such a large scale and its
footprint has extended towards every nook and corner of the country. It has a vast
distribution channel that includes services of nearly twelve hundred sales outlets with
beauty advisors. It has also set up one hundred and ten beauty salons in India. Its products
are easily available to customers through services of distributors, stockiest and retailers.
Besides its outlet’s products are available at hypermarkets, supermarkets, convenience
stores, discount stores, and beauty shops. Lakme has not curtailed its products to Indian
market instead its products are easily obtained in nearly seventy global countries.

57
Price in the Marketing Mix Of Lakme :

India is a price sensitive nation with most people thinking twice before spending their
money. Lakme is a cosmetic brand that caters mostly to the female population. The
company was quite sure of its approach towards pricing strategy. It wanted to garner as
many customers as possible by penetrating both urban and rural market. Therefore it has
adopted a reasonable pricing policy because it wants its products to reach masses. It
realises that affordable and pocket-friendly rates will result in large volumes and
eventually will lead to better profits.

Promotion in the Marketing Mix Of Lakme :

Lakme has adopted an aggressive marketing plan to promote its products to every nook
and corner. Its ad campaigns are advertised through television, radio, newspapers, fashion
magazines, billboards and social media platforms like Twitter, Facebook, Blogs and
YouTube. It believes in star power and its impact on common masses and has roped in
several personalities’ time and again as its brand ambassadors and to act in its ad
campaigns. Indian film star Shraddha Kapoor, Kareena Kapoor and Katrina Kaif along

58
with popular model Lisa Haydon have acted in its commercials. It is the title sponsor of
bi-annually held fashion week titled Lakme Fashion Week. The company has set up
Lakme Beauty Training Academy in Chennai, Delhi and Mumbai to assist interested
people

ADVERTISING STRATEGIES OF LAKME

In-store sampling

Lakme has in-store trail products. Since it in the cosmetics market it is very essential to
provide samples, many stores in Mumbai from time to time have Lakme sampling offers.
Where they allow you to try the product and then buy it.

59
Brand placement & Event sponsorship

Brand placement often referred to, as product placement is the sales promotions
technique of getting a marketer’s brand featured in movies and television shows. When a
firm sponsors or co-sponsors an event, the brand featured in an event immediately gains
credibility with the event audience. The audience attending an event already has a
positive attitude and affinity for the contest that they choose to attend. When this
audience encounters a brand in this very favorable reception environment, the brand
benefits from the already favorable audience attitude. Lakme India Fashion Week, thus
creates a positive image and has a huge impact on the sales of a brand. Lakme’s
association with the annual Lakme India Fashion Week (LIFW) has helped significantly
in the brand’s growth chart. A beauty brand, like Lakme, must always remain
contemporary and define trends. The LIFW has certainly helped Lakme acquire that
position. Product ranges have been launched every year to coincide with the event and
have met with considerable success. Internet promotions They are the most recent form
of sales promotions. They are promotions that are done via the Internet. It is becoming
increasingly popular because of the large use of Internet. Lakme offers its wide range of
skin and hair products as well as salons thru its website www.lakmeindia.com

BRANDING

Lakme is a brand launched with a distinct concept – “source of radiant beauty”. The
brand appeals to a distinct market segment who appreciate and like the brand concept.
The core idea is that the brand connects with the consumer group. Now the customers do
not tend to be content with the one product, which the brand offers. Rather they want
additional product which go hand in hand with the brand concept or application; for
example a Lakme user wants all the products which enhance beautybeauty lotion, deep
pore cleansing cream, lipsticks, nail enamel, eye make up etc. Line branding strategy
illustrates how well cultivated brand can be extended on to a host of related products
under a common concept. This strategy seeks to penetrate the customer rather than
penetrating the market. It seeks to fulfil all complementary needs that surround a basic
need. Line brands start with a product but later extend too a whole range of

60
complementary products. products in the line draw their identity from the main brand.
Marketing products as a line enhances the brand’s marketing power rather than selling
them as an individual brand.

CURRENT MARKET STRATEGY

* Loyalty programmes and reward systems: As part of its marketing strategy, Lakme
Unilever Ltd removed loyalty programmes and encouraged beauty salons. Lakme
Unilever has also launched ‘New Lakme Beauty Salon Rewards Programme’ with a
tagline ‘Get benefits worth Rs 3,225 for Rs 350 only’ to attract customers. There are also
different magazines and booklets designed with acme promotion and stuffs. * New look
of Website: he company also re launched a new looking Website Lakmeindia.com to
have a change in marketing of the company. * Direct Marketing for ‘Lakme Pure
Defense’: Deviating from the traditional mode of advertising, Lakme Unilever opted for
direct marketing concept to create awareness for their new launch ‘Lakme Pure Defense’.
The company deployed a bevy of beauty advisors at 1200 Lakme retail outlets across the
country to promote its new launch-dumping mass media ad campaigns. Their strategy is
not to use mass media advertising to

promote Lakme Pure Defense-the first of its kind across the globe. Instead, they aopted
for the ‘education’ route to create awareness for their product.

* Tie-up with Schwarzkopf: Lakme had a recent tie up with FMCG Player Henkel
group’s high end hair product brands Schwarzkopf Professional. Currently, Lakme has
over 100 salons across the country. Under this exclusive pact, Lakme will use
Schwarzkopf hair care products in all its salons. In return, Schwarzkopf will provide
training for hairdressers in the salons. * Lunched in Sri Lanka: HemasMarketing has
expanded the range of Lakme skin care products it markets in Sri Lanka, and unveiled a
new international logo and image for the brand. Launched in Colombo, the additions to
the Lakme skin care range are Nourishing Cold Cream, Nourishing Body Lotion, pH-
Balanced Face Wash, Calamine Lotion, Sun Screen Lotion and Hair Remover.

61
Future Market Strategy

* Online e-group: Lakme can form some e-group like Sunsilk Gang Of Girls GOG) to
understand consumer requirement. It requires no formal surveys, easy to administer,
reduces paper work. In all it used technology to effectively to promote the brand and
advertises the brand through e-generation. *

Online ordering of Lakme products

* Online appointments for Lakme Beauty Salon Strategies Under Product Mix

* New product lines can be added to the existing one which may be related or unrelated
to the company.

* Within the product line, they can have different brands at different price points to cater
to different segments of customer.

* Growth of Lakme Beauty Salons can provide better display of products and a beauty
adviser can make it much more attractive in the eyes of the customer.

*Packaging can be improved or changed of Lakme products to make it more attractive to

the customer

COMPETITORS
Promotions have emerged as the most economical and effective way to establish a
personal rapport with your customers. They have always been a part of the consumers
product s game, but nowadays, it’s almost like one can’t buy a tooth brush without
having to tote a detergent bar home as well. A gift on a festive occasion or free with the
purchase of a certain product goes miles in leaving a favourable mark on the minds of
your customers. Marketing heads are exploring the effectiveness of each and every
product as a gift to boost sales. This frenzy has led to a deluge in the range of innovative
products entering this market. Infact, the type of products entering the gifting and
promotional category is simply mind-boggling and differ from product to product. The

62
type of products offered as a promotional item range from a small ball pen to expensive
electronic items. Infact, the meaning of the term gift seems to have attained a wider
meaning. People tend to offer just about any thing under the label “Free Gift Inside”.
Value Perception could be one reason why this freebie strategy is more effective. Five
rupees off means five rupees less to the manufacturer, but a gift item which sells for five
rupees might be sourced for just Rs. 1- 2, making the offer far more cast effective. Large
MNCs like the Levers, Godrej, Philips, revlon etc. have resorted to giving their own
lesser known brands free with their popular brands and vice-versa. This automatically
tends to reflect a better sales volume as far as both the brands are concerned. The
companies tend to save their promotional expenses and utilize the same to generate better
sales in the respective brands. This trend is extensively practiced by the electronic
industry. The companies like AIWA and Videocon have been known to offer irresistible
freebies like: a walkman or a small sound system free on the purchase of a colour
television, over 10 CDs free with a purchase of a sound system etc. Such moves by these
companies forced betterestablished brands like Onida etc. think on their feet. This trend
has come in as a zephyr to the lesser popular brands striving to establish themselves in
the market. Companies that cannot invest a heavy sum in promotion or cannot afford to
engage in a massive sampling exercise simply tie up with better-known brands for their
products to be offered as free gifts. This acts as a mutual benefit for both the parties, as
one achieves better sales while the other achieves better exposure at a very nominal
expense. There tends to be a small amount of exploitation of a few lesser-known brands
in such exercises, but every thingThe latest trend as a promotional strategy that has set
the marketing arena abuzz is contests. Every second brand seems to be running a contest
to actively involve the buyer in his brand. The prizes given out by companies in contests
range from gold, diamonds to cars, homes and free trips abroad. The companies are tying
up big celebs and running contests where the customer gets to dine with his favourite star
on winning the contest. Recently Axe for it’s brand of deodorant ‘Vodoo’ actually
booked a far away island in Kerela and held the longest dance party. Customers had to
correctly answer the questions in the form placed in its pack to qualify for this party.
Another womens wear store ‘Scullers’ actually ran a competition for the women in
Bangalore where one could actually design a garment of their choice – tops, trousers,

63
capris, skirts and shorts – and have it hit the Scullers Womens wear shelves. Infact a
leading cosmetic company Lakme also ran a similar promotion where customers could
create a shade and give it the name of their choice. It is not only the customer who is
being lured by such marketing gimmicks. The companies are running extensive schemes
for the dealers too. Bell ceramics had recently organised a largest party in the ceramics
industry for their dealers at ‘Tikujini’sWadi’, Thane. The dealers along with their whole
family were invited to this party. Apart from luscious snacks there was a whole lot of
entertainment activities like games, competitions etc. for children. But at the end of the
day what emanates as the greatest question is, the companies may have no doubt charged
a premium for their products and services earlier but how safe are they by indulging in
such practices? Are the companies really benefiting by sacrificing on their profit
margins? Or is it as one of a customer puts it “ They have been charging exorbitant
premiums earlier, its time
that the return some items.

1) M.A.C

MAC (Make-up Art Cosmetics) is a leading cosmetic manufacturer, headquartered in

New York, United States. It was established in the year 1985. It is considered as a leading
professional makeup specialist in the world. They produce products that cater to people
of all ages.

The various products of MAC serve the demand of consumers and professional makeup
artists. It is at the lead in the fashion industry and collaborates with leading talents from
art and fashion domain. It offers a wide range of products that blend people with
glamorous style. Their products are available in over 200 locations in about 15 countries
across the globe. The company always focuses on developing new categories of products
and target to include 50 collections every year. Their main goal is to serve the various
demands of consumers and professional makeup artist. Due to their various products,
MAC is considered one of the top Lakme competitors.

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2) L’Oreal

L’Oreal is a well-known and leading company in the personal care and cosmetic industry.
Founded in the year 1909, L’Oreal is headquartered in France. Their annual sale of
various products is estimated at about $27.2 billion dollars. Their famous products are
color cosmetics, hair care, sun care, skin care and fragrances.

It is a total beauty care company that combines the latest technology with the great
quality. It is a global brand with many international products.

As it is the biggest beauty brand in the world, L’Oreal has a supreme commitment to the
technology, innovation, and research, thereby providing high-quality and brand-new
products for people of all ages. The band consists of five main beauty categories of hair
cair, hair color, hair style, cosmetics, and skin care. There are continuous research and
development that takes place in L’Oreal to ensure the safety of the customers and also for
new products. As L’Oreal is a fastest growing personal care and beauty products, it is
considered as one of the top Lakme competitors in the world.

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3) Maybelline

Maybelline is one of the top global cosmetics company in the United States. It helps
women to discover new looks and exhibit their own creativity and individuality.
Maybelline provides scientifically-advanced formulas, radical textures, and trendsetting
shades to enhance the beauty of women. Maybelline produces various products for eyes,
faces, and lips.

Their products are available in about 129 countries worldwide. It manufactures more than
200 products by using technologically advanced formulas. The company sells their
products across the world through retail outlets and online shopping. The products of
Maybelline are tested for quality and their makeups are all mineral based. They offer
huge choices for each product. Due to their various products and quality, Maybelline is
considered as one of the top Lakme competitors.

4) Covergirl

An American cosmetic brand, Covergirl is headquartered in Maryland, United States. It

was owned by Noxzema Chemical Company which was later acquired by Procter &
Gamble. CoverGirl provides their products for individual customer service and offers a
wide range of beauty products at reasonable prices. It deals in a wide range of cosmetics
like foundations, concealers, blushes, and lotions for face makeup, eyeshadows,

66
eyeliners, kohl pencils, and mascara for eye makeup and lipsticks, lip glosses and lip
liners.

The Covergirl cosmetics are manufactured with great care and are safe for health, human,
and the environment. They produce a wide range of products that cater to the entire
cosmetic requirements from head to toe and also to all skin types.

The biggest support for Covergirl’s growth happened when it was owned by Procter &
Gamble. This could be because the company also owned some of America’s marquee
cosmetic brands like Olay, SK-II etc. It helped the brand to expand to more regions and
also reach out to customers better. Due to their wide range of products and their
availability, Covergirl is regarded as one of the top Lakme competitors in the world.

5) Colorbar

Colorbar is one of India’s leading beauty brands that is launched in the year 2005. Their
innovative and best in class products of Colorbar make every woman feel beautiful. The
products manufactured by Colorbar meet the international standards.

It is a fastest growing beauty brand that is available in about 65 exclusive stores, more
than 900 multi-brand outlets and through partner chains across the globe. The company’s
portfolio includes many products like loose powders, highlighting kits, contour, primers,

67
concealers, BB creams, blush sticks, compacts, foundations, makeup removers, lip colors,
and wipes for the face.

The strength of the brand lies in its premium packing, continuous product innovations,
and its premium packaging. It is also known for its fast-growing and demanding target
segment of consumers. Their main focus on quality hence all their products are validated
by Market Research Group to suit the needs of the consumer and the markets it caters to.
Due to their wide range of products, Colorbar is regarded as one of the top Lakme
competitors.

6) Revlon

An American multinational company, Revlon was found in the year 1932 in the New
York City. The company started with a single product, nail enamel and over the years
entered into production of cosmetics, fragrances, skin care, hair care, and many more.

The Company has their operations in four main divisions which are the professional
division, consumer division, Elizabeth Arden segment, and Other segments.

The company is expert in a wide range of products like concealer, foundation, face
powder, blush, eyeshadow, eyebrow pencil, mascara, nail paint, lipstick, and lip gloss. As
their products reach many customers across the world, it suits any skin types and

68
complexion. Their annual turnover is estimated at about 2.3 billion USD. The company
has high customer engagement by providing 24-hour online helpdesk facility. This band
is connected to prominent celebrities like Ashley Graham, Halle Berry, Emma Stone, and
many more. Due to their various products available for customers, Revlon is considered
as one of the top Lakme competitors.

7) Avon

Avon is a well-known beauty company headquartered in London, United Kingdom.

Founded in the year 1886, Avon is the fifth largest beauty company in the world. Avon
produces various products like makeup, skin care, perfume, toiletries, and fashion.

Their products are being sold successfully in places like America, Europe, USA, UK,
Middle East, and the Asia Pacific. The company’s portfolio includes the production of
beauty, home, and fashion products. The company mainly sells the products to the
consumer through direct selling channel. Avon mainly focuses on women as their target
customers, because of which, their products are mainly for the woman. Their products
cater to all the beauty requirements.

Their products are produced after careful research and make sure of the feasibility of the
product in the market. As technology is in great use these days, Avon makes use of
technology to reach out to the customers and other stakeholders. Due to their various
products, Avon is considered as one of the top Lakme competitors.

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8) NYX

NYX is a cosmetic company that is a part of L’Oreal group. The company is

headquartered in Los Angles. The company provides various makeup and cosmetic
accessories. Its wide range of products includes powder, blushers, lip pencils, lipstick, lip
gloss, bronzer, concealers, setting sprays, contour, highlight, eyeliners, and many more.

It also provides various tools accessories used in the beauty segment. Their brand is sold
through many retailers, fashion and beauty stores, independent shops, beauty supply
stores and online store. NYX cosmetics are one of the fastest growing cosmetic
companies.

It produces high-quality and professional cosmetic products and also packed in a unique
style. As it is one of the fastest growing cosmetic companies, NYX is considered as a
strongest Lakme competitor.

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9)Bobbi Brown

An American cosmetic company, Bobbi Brown, produces and sells many cosmetic
products like skin care products, color cosmetics, and makeup tools and accessories. It is
an international prestigious beauty brand that permits women to hold and enhance their
individual beauty. The company produces mascaras, eyeshadows, brows, foundation
creams, concealers, and many more. The company was founded in the year 1991 by
Bobbi Brown, a makeup artist who turned into an entrepreneur. It produces great
products with high quality that every woman prefers it.

The company serves their customers through many duty-free stores and other personal
retail shops globally. Their products are also available for purchase online. Due to their
wide range of products, Bobbi Brown is considered as one of the top Lakme competitors
in the world.

10) Clinique

Clinique was established in the year 1968, is a popular American brand, It is a personal
care and cosmetic company that manufactures toiletries, skin care products, cosmetics,
and fragrances. The products of this brand are available in high-end department stores
located in the USA. This brand can be used for people who have sensitive or problematic
skin.It is considered one of the biggest skin care and cosmetic brands in the world.
Clinique stores are seen in across 135 countries in the world. The products of Clinique

71
are free from allergies and perfume. They also sell non-comedogenic makeup products
will more prices.

Clinique produces high-quality products and is available at varied locations. The products
of Clinique are free from chemicals. As they are into manufacturing of many products,
Clinique is considered as one of the top Lakme competitors.

11) LA Girl

Also regarded as a top Lakme competitor, LA Girl is an affordable luxury cosmetic brand
that produces various products. It produces top quality color cosmetics for all makeup
users.

The various products of LA Girl create a spin on beauty to be inspired through the art of
color. It produces various cosmetic products for eyes, lips, face nails, and accessories.

With an incredible selection of high-quality products that cater to customers across the
globe, L.A. Girl has become a targeted brand that offers beauty without compromise.
Their products are available through the offline and online store. As LA Girl is one of the
fastest growing companies, it is regarded as one of the top Lakme competitors.

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FINDINGS

Lakme is a clear market leader across all age groups and income levels.

Majourity of respondantsi.e 60 out of 100 respondants use lakme products and 10 people
use loreal 9 uses Maybelline and 19 other respondants uses othe brands.

So it is clear that lakme has more number of users.

The dissertation shows that maximum number of the respondants are using makeup
products of their brand like mascara eyeliner lipsticks etc. and the other half uses the skin
care products

Lakme provides quality products as the majour part of the respondants i.e. 81% of the
responded positively to the quality of lakme only 6% was dissatisfied with quality and the
others did not know about the quality.

The main reason for the use of lakme cosmetic is the product they offer the quality of the
product and the wide variety to chose from make customersintresed and give them wide
variety of choice. 71% of respondants are using lakme because of the product they offer .

The lakme products are mostly used by women as the women are 64% and males account
for 35% for the use of lakme products.

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81% of the sample says that the lakme provides quality products that means the
customers are satisfiedwith the quality of the lakme products this would increase the
market growth of lakme and also would satisfy its customers by providing them with
quality products.

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 CONCLUSION

Promotions have emerged as the most economical and effective way to establish a
personal rapport with your customers. They have always been a part of the consumers
product s game, but nowadays, it’s almost like one can’t buy a tooth brush without
having to tote a detergent bar home as well. A gift on a festive occasion or free with the
purchase of a certain product goes miles in leaving a favourable mark on the minds of
your customers. Marketing heads are exploring the effectiveness of each and every
product as a gift to boost sales. This frenzy has led to a deluge in the range of innovative
products entering this market. Infact, the type of products entering the gifting and
promotional category is simply mind-boggling and differ from product to product. The
type of products offered as a promotional item range from a small ball pen to expensive
electronic items. Infact, the meaning of the term gift seems to have attained a wider
meaning. People tend to offer just about any thing under the label “Free Gift Inside”.
Value Perception could be one reason why this freebie strategy is more effective. Five
rupees off means five rupees less to the manufacturer, but a gift item which sells for five
rupees might be sourced for just Rs. 1- 2, making the offer far more cast effective. Large
MNCs like the Levers, Godrej, Philips,revlon etc. have resorted to giving their own lesser
known brands free with their popular brands and vice-versa. This automatically tends to
reflect a better sales volume as far as both the brands are concerned. The companies tend
to save their promotional expenses and utilise the same to generate better sales in the
respective brands. This trend is extensively practiced by the electronic industry. The
companies like AIWA and Videocon have been known to offer irresistible freebies like: a
walkman or a small sound system free on the purchase of a colour television, over 10
CDs free with a purchase of a sound system etc. Such moves by these companies forced
better-established brands like Onida etc. think on their feet. This trend has come in as a
zephyr to the lesser popular brands striving to establish themselves in the market.
Companies that cannot invest a heavy sum in promotion or cannot afford to engage in a
massive sampling exercise simply tie up with better-known brands for their products to
be offered as free gifts. This acts as a mutual benefit for both the parties, as one achieves
better sales while the other achieves better exposure at a very nominal expense. There

75
tends to be a small amount of exploitation of a few lesser-known brands in such
exercises, but every thingThe latest trend as a promotional strategy that has set the
marketing arena abuzz is contests. Every second brand seems to be running a contest to
actively involve the buyer in his brand. The prizes given out by companies in contests
range from gold, diamonds to cars, homes and free trips abroad. The companies are tying
up big celebs and running contests where the customer gets to dine with his favourite star
on winning the contest. Recently Axe for it’s brand of deodorant ‘Vodoo’ actually
booked a far away
island in Kerela and held the longest dance party.

Lakme has done a nice job on social media with their lakme reinvent strategies. It has
registered a powerful presence on the platforms on which it is available.

Lakme has thus left no stones unturned in creating flawless products and promoting them.
This is the reason why brand hold 110 lakme salons all over the nation .it has recently
grabbed 36 positions in the Brand Trust Report, 2015 . no doubt with effective marketing
strategies and social media it will rule the world.

Lakme has managed to engage its primary target audience: girls and women, through
vaious activities that seem to catch their fancy. It is surprising and pleasant to see that the
brand has many male fans and followers as their female counterparts, but they don’t seem
to be interacting much with them while the content shown by the brand is catchy, the
tonality can be improved. A lively communication will definitely improve their
engagement and help them connect better with the audience.Also the promotions should
be done beyond fashion week .the brand shoukd not lose its focus away from cosmetics.

Owing to the brand building exercise by Lakmé, the sentiments expressed by people (see
second image), both male and female, is either positive or neutral. There is almost no
negative emotion flowing for the brand, but what is surprising is the number of male
followers of the brand. As is evident in the following image, slightly over 40% of social
media fans of the cosmetic brand comprises of male. lakmelakme1The gender

76
distribution of Lakmé’s fans could be a bit surprising, but not so its age distribution. The
closer a person is to his/her prime the likelier is his/her chance of following the brand on
social media- as you can see people between 21-30 make the largest chunk of its social
media followers. lakme2

Overall Strategy Lakmé

Looking gorgeous and feeling beautiful seem to be the mantra that Lakmé follows on
social media. The content it shares and the design of it talks not only about its products,
fashion shows, and contests, but also about the little steps a woman (or a girl) can take to
look gorgeous and be the object of much-coveted desire, as the brand sees it to be the
driving agenda of all women, or at least its fans. We need to see in the following sections,
what form this strategy takes when it comes to individual channels like Facebook,
Twitter.

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 WEBLIOGRAPHY

http://corporatecitizen.in/v2-issue3/corporate-history-lakme-was-
nehrus-idea.html

https://www.forestforwomen.com/2014/10/advantages-and-
disadvantages-of-wearing.html

https://www.slideshare.net/Deepika_Ramanathan/lakme-brand-
management

https://www.marketing91.com/marketing-mix-lakme/

https://www.scribd.com/document/361029293/Lakme

https://www.slideshare.net/sapnahlihl/consumerbeahviourandperceptio
nofwomentowardslakme

https://en.wikipedia.org/wiki/Lakm%C3%A9_Cosmetics

https://www.scribd.com/doc/42586851/Obective-of-the-Project

78
 ANNEXURE

Q 1) Age?

____________

Q 2) Gender

a. Male
b. Female
c. Transgender

Q 3) Which brand do you prefer

a. Lakme
b. Loreal
c. Maybelline
d. Others

Q 4) What is the main reason for the use of lakme?

a. Price
b. Product
c. Place
d. Promotion

Q 5) How did you come to know about the lakme brand?

a. Advertisement
b. Word of mouth
c. Internet
d. Others

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Q 6) Are you satisfied with the quality of the product?

a. Yes
b. No
c. No comments

80