INTERSHIP REPORT ON

‘’ A COMPARISON STUDY ON THE AIDA MODEL OF

MARKETING FOLLOWED BY L’OREAL & LAKME IN INDIA’’

PREPARED BY- SUBHASMITA

SAHOO
REGN NO. -1906258159
BATCH NO -2019-2021
SUBMITTED TO:
INTERNAL GUIDE EXTERNAL GUIDE
 CERTIFICATE
This is to certify that the project work titled, “A comparison
study on AIDA model of marketing followed by L’Oreal &
Lakme in India with special focus to SIP” is a bonafide work of
SUBHASMITA SAHOO REGD.NO-1906258159 carried out in
partial fulfillment for the award of degree of MASTER IN
BUSINESS ADMINISTRATION FOR THE SESSION (2019-2021) of
Biju Patnaik University of Technology, Odisha under my
guidance . This project work is original and not submitted
earlier for the award of any degree/diploma or associate ship of
any other University/Institute.

Place:
Date:
Signature of the Guide
 DECLARATION
I Subhasmita Sahoo bearing Regd.no- 1906258159 do hereby
declare that the project entitled “ A comparison study on AIDA
model of marketing followed by L’Oreal & Lakme in India with
special focus to SIP ”is the original work done by me and
submitted to Biju Patnaik University of Technology , Odisha in
partial fulfillment of requirement for the award of Master in
Business Administration is a record of originalwork done by me
under the supervision of Mr. Kunal Pattanaik.

Regd no:
Date :
Signature of Student
 ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a
key role in thesuccess of any venture. In the present world of
tough competition a project is likely a bridge between
theoretical and practical working. It is not possible to prepare a
project report without the assistance & encouragement of
other people. This once is certainly no exception. On the very
outset of this report, I would like to extend my sincere
obligation towards all the personages who have helped me in
this endeavor. Without their active guidance I would not have
made headway in the project. I am extremely thankful and pay
my gratitude to my faculty MR.KUNAL PATTANAIK for his
valuable guidance and support. I extend my special gratitude to
Dr.P.K Tripathy , principal of BIJUPATNAIK INSTITUTE OF IT &
MANAGEMENT STUDIES and Prof. Chandra Shekhar, Placement
Manager, for giving me this opportunity. At last but not the
least gratitude goes to all my friends who directly or indirectly
helped me to complete this project report .Any omission in this
brief acknowledgement does not mean lack of gratitude.
Thanking You
SUBHASMITA SAHOO
 EXCUTIVE SUMMARY

AIDA model is a blueprint that marketing, advertising and sales

functions use to target all touch points during a customer’s
purchase journey, that is, from getting to know about the
product to finally buying it. Consumer journey is analyzed by
breaking it into four fundamental stages.
 Awareness
 Interest
 Desire
 Action
CHAPTER:-I
 INTRODUCTION

 AIDA is a model used in marketing that describes the steps a

customer goes through in the process of purchasing a product.
The AIDA model has been in use since the late 19th century. It
has been reviewed and modified multiple times over the years,
both in marketing and public relations.

THE CONCEPT OF AIDA MODEL:

The AIDA model is based on four individual stages that attract

interested parties who are deciding on a product or service.
1. Attract attention: The product must attract the consumer's
attention. This is done via the advertising materials. It is a type
of “eye catcher.”Examples: a window designed in a striking
way, a sensational YouTube clip, or a themed newsletter, or a
graphic on a landing page.
2. Maintain interest: In the first phase, the attention of the
potential customer is piqued; their interest in the product or
service should be aroused. Example: detailed information on
the product is presented, for example, the product description
on a website, a product brochure or flyer, photos, or video clip
of the product.
3. Create desire: If interest in the product is aroused, it is the
seller’s task to persuade the customer that they want to own
this product. In the best-case scenario, the advertisement or
the product itself creates the desire to purchase. Example: the
seller provides clear examples of the advantages of the product
or service, taking into account the daily lives of the target
group. In the online shop, a bullet point list can generate the
desire to buy. This desire to buy can also be awakened by an
advertising medium that specifically addresses the emotions of
the customer.
4. Take action: As soon as the desire to buy is aroused, this
must be transferred into an action, that is, the purchase.
Example: In the case of online shops, this would ultimately be
the shopping cart process, in which a customer is lead to
a conversion. The customer can be encouraged to buy the
product with a call-to-action.
Nowadays, the AIDA formula is frequently supplemented with
an “S” for "satisfaction", because the product has to ultimately
satisfy the consumer. Customer satisfaction does not lie solely
with the advertising but rather with the product itself.
Therefore, the basic constellation of the four phases is only the
prerequisite for the sale.
With the insertion of the “confidence” (trust) factor, a sixth
element can also be added. Many marketers also work with the
AIDCAS model to optimize sales processes and advertising.
 HISTORY OF AIDA MODEL
The AIDA model was developed by the American businessman,
E. St. Elmo Lewis, in 1898. The original main purpose was to
optimize sales calls, specifically the interaction between seller
and buyer concerning the product. Lewis can be considered a
pioneer when it comes to the use of scientific methods for
designing advertising and sales processes. At the same time, it
was very important to Lewis to view advertising as a type of
“training” that assisted the beneficiary. Lewis’s theoretical
explanations of advertising theory rested on extensive
experience. He was, for example, marketing head at various
companies and advised organizations as well as companies
involved in the conception of advertising measures and
campaigns. He has shared his knowledge in the form of various
publications both in written form and in seminars at US
universities. His AIDA model can be perceived as an important
legacy, because the formula is still used more than 100 years
after its first appearance, for example in digital marketing .

ADVANTAGES OF AIDA MODEL:

The advantage of the AIDA model is that you can sort all your
current marketing  activities in each category to see if you're
covering all the bases, or if you need to put more efforts in
some particular place.
DISADVANTAGES OF AIDA MODEL:
A major deficiency of the is AIDA model that the purchase
decision process is not considered anymore after it ends i.e.
when a customer makes a purchase. All post-purchase effects
such as satisfaction, dissatisfaction, customer ratings, and
recommendations remain unaffected.
 INDUSTRY ANALYSIS:
The cosmetic industry describes the industry that manufactures
and distributes cosmetic products. These include colour
cosmetics, like foundation and mascara, skincare such as
moisturizers and cleansers, hair care such as shampoos,
conditioners and hair colors, and toiletries such as bubble bath
and soap.

The cosmetics and personal care industry is one of the fastest

growing consumer products sectors in India with a strong
potential for foreign companies. The personal care and
cosmetics sector in India has shown continued strong growth,
with increasing shelf space in retail stores and boutiques in
India, stocking cosmetics from around the world.
The Indian cosmetics and beauty products segment has been
witnessing steady growth of late. It is primarily categorized into
five major categories - body care, face care, hair care, and hand
care and color cosmetics. Indian beauty and personal care (BPC)
industry is estimated to be worth USD 8 billion. India’s per
capita spend on beauty and personal care is it is growing in line
with India’s GDP growth.

Many international brands like Revlon (the first international

cosmetics brand to enter India in the midnineties), Avon,
Burberrys, Calvin Klein, Christian Dior, Estee Lauder, L’Oreal,
Max factor, Max Mara, Body Shop, Maybelline New York, MAC,
Bobbi Brown and many more have been present in India for
anextensive period of time.
The top three players in the Indian market are international
players, namely Hindustan Unilever, Colgate-Palmolive India
and L'Oréal India. The other prominent international players
with a strong presence in the Indian market include Gillette
India, Johnson & Johnson (India), Reckitt Benckiser (India)
Procter & Gamble Home Products. Domestic players were
catching up over the review period with the emergence of the
trends towards natural, herbal and Ayurvedic products.
Prominent domestic players include Godrej Consumer
Products, Dabur India, Marico, Wipro Consumer Care &
Lighting, Emami and Patanjali Ayurved.

Industry landscape by Market Segment

Overall the market is moving towards premiumization, with
premium segment growing at 6.3%, as compared to 1.1% for
mass market. Indian brands (both regional and national) have a
sizeable presence in the mass category, while premium markets
are largely dominated by the international brands . Prestige
markets are largely dominated by international brands.

Geographical segmentation
Imported cosmetics have had a major impact on the Indian
market. Indian consumers tend to look towards international
brands as lifestyle enhancement products. Factors Expected to
Drive the Rural Market . Trend of growing consciousness about
grooming, with 50% of rural population aged below 25 year
With increased awareness, the rural lifestyle and habits have
started mirroring urban aspirations and lifestyle .This has
brought about a shift from homemade solutions to branded
products.

Distribution Channels and Marketing

India has seen tremendous growth of modern organized retail
channels like department stores, supermarkets, hypermarkets,
specialty store chains, and shopping malls along with direct
sales and a highly competitive ecommerce market for cosmetic
brands. Amongst the multiple sales channels, grocery retailers
continue to lead the pack. However, share of specialist
channels such as chemists, beauty stores and modern trade is
expected to grow in the next few years, with chemists and
pharmacies expected to gain significant traction.

ENVIRONMENTAL ANALYSIS OF COSMETIC

MARKET:

POLITICAL FACTORS
Some of the political factors to take into consideration are legal
issues, rules and regulations of the government and various
Others informal as well as formal rules under which a firm must
act. Some of these political factors are: TAX POLICY: the
company has to bear a tax rate of 30%, which is the highest
amongst all the tax rates, as the corporate tax rate. This
reduces the profits of the company.

ENVIRONMENTRAL REGULATIONS: as per the norms of the

government the company has to convert 30%of the land area
into green land to make the environment eco-friendly, incurring
extra cost for the company.

TRADE RESTRICTIONS& TARIFFS: the company has to bear

charges for crossing the state borders for the purchase of raw
materials and the delivery of finished product.

ECONOMIC FACTORS
The purchasing power of a prospective customer as well as the
firm’s cost of capital is affected by various economic factors.
Some economic factors include:

INFLATION RATE: the inflationary period is adversely affecting

the company as the raw materials, machineries, etc. have to be
purchased at a higher price.

INTEREST RATES: the rate of interest on corporate loan is 12%

and the company has to pay a tax of 60 lakhs per year as tax.

SOCIAL FACTORS
Demographic and cultural aspects form a part of the social
factors. These factors affect the customer needs and size of the
potential market. Some social factors include:
HEALTH CONCIOUSNESS: keeping the safety of the end users
and social responsibility in mind the company has used the
chemicals that are not harmful for the skin and are a bit costly
than the other chemicals.

ENVIRONMENT NORMS: keeping the environment norms in

mind, the company has converted 30% of its land into the
green area and also used eco- friendly paper for the purpose of
packaging.

EMPHASIS ON SAFETY: the company has emphasized on

employee safety and has taken a employees’ insurance policy
of Rs.1 crore with an annual premium of Rs. 50000/-

TECHNOLOGICAL FACTORS
Technological factors include ecological and environmental
aspects. Some technological factors are as follows:

RESEARCH AND DEVELOPMENT: the company will have to

spend a lot on the research and development of the product in
the upcoming years as the company has the advantage of being
a pioneer in launching such a product in the Indian market and
the product will be easily copied by the competitors. Thus, the
company will have to continue investing in the research and
development activities to keep a firm hold in the market.

TECHNOLOGY’S EFFECT ON FIRM’S OFFERING: The increase in

the R&D cost will affect the firm’s offering as the cost of the
product will increase with increase in R&D cost.
Porter’s Five Forces Model for
Cosmetics Industry Analysis:
Rivalry among competing firms
1. Number of competing firms
2. Product differences
3. Fixed costs/Value added
4. Industry growth
5. Switching costs

According to David, it is “the most powerful of the five forces” .

Thus, the number of competing firms matters a lot. The
difference of cosmetic is wide, so there is an opportunity for
rivals to sell different products. The industry growth influences
the development of competition. If fixed costs are high and
switching costs are low, they increase the rivalry in the
industry.

Potential Entry of New Competitors

1. Barriers to entry (rights)
2. Economies of scale
3. Capital requirements
4. Brand equity
5. Switching costs

If there are no considerable barriers to enter, there may be

many new entrants . For the cosmetic industry, the most
important barriers are the exclusive rights and economies of
scale. However, this industry has large capital requirements
since the differentiation of products that are sold in it.
Moreover, cosmetic retail is more widespread as chain stores
or exclusive brand retailers, which also make up chains.

Potential Development of Substitute Products

1. Ease of substitution
2. Buyer inclination to substitute
3. Buyer switching costs
4. Relative price performance of substitute
5. Quality depreciation

For the cosmetic industry the crucial issue is the way for buyers
to substitute and their willing to do this. For the retailers it is
better to sell unique products, for example to sell one cosmetic
brand. The less valuable is the change of quality, due to the fact
that retailer cannot influence the quality of products they sell.

Bargaining Power of Suppliers

1. Supplier concentration to firm concentration ratio
2. Strength of distribution channel
3. Impact of inputs on cost or differentiation
4. Switching costs of firms in the industry
5. Differentiation of inputs

Suppliers tend to have very little power in the retail industry.

However, for the cosmetics the exclusive suppliers matter a lot
and influence the market. They can make retailers have large
inputs on the scale of orders. If the supplier is exclusive, the
switching costs are very high. As for the cosmetic retail – the
inputs are slightly differentiated, so this variable is less crucial.
Bargaining Power of Consumers
1. Buyer information
2. Substitutes available
3. Brand identity
4. Buyer volume
5. Price sensitivity

As for cosmetics retail, “buyers are fragmented – no buyer has

any particular influence on the product or price” (Porter’s Five
Forces :A Model For Industry Analysis). Still, buyer has to be
provided with the information and has a choice of substitutes.
Some buyers tend to choose only one brand. Buyer volume and
price sensitivity are less important because cosmetic is what
people tend to buy all the time, and prices do not react on the
slightest changes.
CHAPTER-2-:COMPANY ANALYSIS
 L’Oreal  is a French personal care company headquartered in  
Clichy with a registered office in Paris. It is the world's
largest cosmetics company and has developed activities in the
field concentrating on hair color, skin care sun
protection, make-up, perfume,  and hair care.
Liliane Bettencourt was principal shareholder until her death in
2017. As of 2020, Françoise Bettencourt Meyers is the majority
owner of the company, with a 33.14% stake.

2019 SALE REPORT
 Like-for-like, i.e. based on a comparable scope of
consolidation and constant exchange rates, the sales
growth of the L’Oreal group is
 Sales: 29.87 billion Euros. +8.0% like-for-like +8.8% at
constant exchange rates
 Operating profit: 5.54 billion Euros, an increase of +12.7% 
  Earnings per share : 7.74 Euros, an increase of +9.3%
 Operating cash flow : 5.03 billion Euros, an increase of
+29.8%
 Dividend : 4.25 Euros, an increase of +10.4

The brand L'Oreal Paris represented a value of more than 28.4

billion dollars, compared to a brand value of roughly 7.36 billion
dollars for Garnier .

MARKET CAPITALISATION RATE OF

L’OREAL:
Market Capitalization measures the total value of a company
based on their stock price multiplied by the shares outstanding.
This metric is important because it gives you an idea of the size of
a company, and how the size has changed over time. When
studying companies from a relative basis, it would make sense to
compare companies that have a similar market capitalization
because factors like market share, economies of scale, and
business models would also similar.
Market Cap Benchmarks

Carrefour 11.37B

Pernod Ricard SA 38.81B

Casino Guichard Perrachon 4.162B

Market Cap Range, Past 5 Years
Minimum 88.52B Jan 15
2016

Maximum 170.76B Jan 17

2020

Average 122.79B

Marketing mix of L’oreal

Product in the Marketing mix of L’oreal

L’Oreal has a portfolio endowed with international standard of

brands covering a wide range of products while satisfying
the needs of every customer present in any part of the world.
All its products pass the international standards of testing. The
company deals in activities related to cosmetics, skin care, hair
color, make-up, sun protection, hair care and perfumes.  In
India, L’Oreal operates through four different divisions that are
as follows 

 Active cosmetics include brands like Vichy, Inneov and

Sonaflore.
 Luxury products include brands like Diesel, Ralph Lauren
and YSL.
  Professional products include brands like Technique,
Matrix Essentials, Mizani and Kerastase.
 Consumer products (personal care) include brands like
Ombrelle, Maybelline, Essie, Garnier, Magic and Colorama.

Some of the consumer favorite products of the brand are

eyeliner, mascara, eye shadow and primers for eyes, primer,
powder, foundation, concealer and blush for face. lip liner, lip
gloss, lip balm and lip color for lips, nail polish and remover for
nails, hair colors in various shades  for hair, Shampoo,
conditioner for hair care, moisturizers, cleansers, toners for skin
care and hair spray, serum for hair styling are also used. L’Oreal
also has a kid’s line of products. All the products are available in
different product sizes and different price ranges. L’Oreal is
also planning to penetrate the Ayurvedic and herbal industry in
the Indian cosmetic section. They are having ongoing talks with
some of the companies like VLCC and Biotique.
Place in the Marketing mix of L’oreal

L’Oreal has development and research centers in six places

worldwide like Japan, France US and China and its products are
available in one hundred and thirty countries of the world. The
various products are found in various outlets like perfumeries,
hair salons, super markets, pharmacies, beauty outlets and
even through direct mail. Besides this, the brand has its own
website and has tie-ups with other shopping sites on internet.

With all the needed product information, the consumers can

make purchases from any part of the world. In this changing
times internet has become one of the most important outlet for
successful purchasing and buying. . L’Oreal’s operations in India
are on an ever-growing path as the awareness of the beauty
products has resulted in the brands growth and popularity. Its
operations in India are through its fully owned subsidiary
“L’Oreal India”.

The company has set up a manufacturing plant in the city Pune

in Maharashtra, India. Most of the products are imported from
abroad and the rest are manufactured in this plant. The
successful growth of the brand in India is credited to the
efficient supply channels and distribution policies. In one of its
kind distribution strategy ,L’Oreal has appointed skillfully
trained hairdressers that work in their own salons and outlets
by providing professional services to the consumers. This
includes various treatments and product awareness campaigns
that help in creating a new consumer base. This has led to a
number of L’Oreal salons in India, where consumers come for
professional and efficient treatment and these salons are for
both the gender men and women.

Price in the Marketing mix of L’oreal

The biggest revenue earner for L’Oreal in India is the products

related to consumer division. The urban consumer is not as
price conscious as was portrayed earlier. For premium
products, the consumers are ready to dole out premium prices.
As many of the L’Oreal products belong to the high qualitative
product group, the company had to maintain a premium
pricing policy for those products. The company has decided to
maintain its value added pricing policies for all its products.
Some of the brands under L’Oreal have products that cater to
the middle class section of the society and the pricing policy for
these products is reasonable so that the consumers can easily
afford them.

Sometimes, in order to penetrate a new section of the market,

the company has offered discounts and schemes especially on
introductory products. This leads to the minimization of prices
and leads to an increase in sales figure resulting in further
revenues. In order to strike a reasonable balance between its
products and prices the company has taken steps to increase its
Stock Keeping Units, as this will help in creating a balance over
the pricing policies.
Promotion in the Marketing mix of L’oreal

L’Oreal has an advertising slogan that has always defined the

brand. The first slogan was “Because I’mWorth it”. This was
later replaced by “Because you’re Worth it” and in the year
2009, this was again changed to “Because we’re Worth it”. The
changing times along with the mindset and concept can be
seen in the changing slogans. The shift to the letter “we” was to
denote the consumer involvement in all the brand products.
L’Oreal is a truly international brand and hence its
advertisements are at a premium level. Attractive and well-
known models of international caliber are the part of
its promotions. In India, the advertising campaigns are operated
through local methods as well as through global methods to
appeal to a wide range of consumers. The advertisement
agency recruited is “McCann Erickson”.  Former Miss
World“Aishwarya Rai Bacchan” has been its brand ambassador
and international face and presently the actor “Sonam Kapoor”
has been in the L’Oreal advertisements. The ad campaigns are
in numerous television channels, radio, fashion magazines,
hoardings and neon signs.

Free products as samples are provided with other products or

at salons to market the new items. Sometimes discounts are
offered on some products to increase the sales figures and to
promote the products. In many cases, surveys for customer
satisfaction are carried out amongst the people who have used
these products.  The results are then published as part of the
promotions.

Strengths of L'Oréal 
Innovation: The brand L'Oréal has a good reputation about
offering and launching innovative products to customers across
the world. The company has well established Research &
Development (R&D) team which takes care about continuous
focus on the new product development and innovation in order
to meet customer demands and beat competition in market. 
L'Oréal has strong presence in all major markets in the world
and therefore this would be an excellent opportunity for the
company to attract new customer and thus gain new market
share which is very significant for achieving outlined objectives
and goals in business.
Diversified range of products: The Company is well known for
its diversified range of items that facilitates attracting more
customers rather than other brand because of its variation of
products. For example, they have around 20 variations only in
the category of the shampoo, conditioners and treatments and
thus it easily helps making loyal customers and hence
customers usually stay loyal to L'Oréal brand. This will have a
significant impact on the company and profitability as well since
consumers typically will have greater alternative of options for
purchasing L'Oréal branded products from the market and
therefore the company will lead to achieve their defined goals
and objectives in business.
Weaknesses of L'Oréal     
Dynamic nature of cosmetic industry: The cosmetic market is
so dynamic in nature and products are changed within a short
span of time due to changes in consumer preferences. Thus,
L'Oréal branded products will have to change its color,
fragrance, and other essential features of the products in order
to meet greater customer demand and keep updated customer
so that they are not able to switch to other brands which may
enhance competition for L'Oréal. In addition, the Company also
has to fulfill customer preference for survive within a
competitive business environment where lots of players are
ready to divert customers to their brands.   
Severe competition in cosmetics industry: There are several
companies in the field of cosmetics and beauty care industry in
the world and thus L'Oréal has to face severe competition from
the part of major competitors both the local and international
companies. Furthermore, L'Oréal brand has to depend on the
third party sales agent who may also sale other branded
products. So, overall a severe competition has to encounter
despite having strong brand name and brand identity among
the consumers across the world. 
Opportunities of L'Oréal   
Strong demand in organic products: L'Oréal is pioneer in
launching organic based beauty and cosmetics items and these
have strong demand all over the world as people are now more
conscious about health and they want to stay out of any kind of
danger from the usage of beauty care products. Thus, L'Oréal
has excellent business gap and lucrative opportunity for
attracting more and more customers who love natural blended
products for their day to day usage.
Global brand recognition: L'Oréal is one of the luxurious beauty
care products in the world and has strong brand identity among
consumers throughout the world. The company exercises very
emotional brand positioning strategy through their branding
slogan for example "Because you're worth it." This provides an
emotional feeling in consumer mind and they want to loyal to
the L'Oréal brand.  
Threats of L'Oréal  
Global economic crisis: Cosmetics are typically considered as
luxurious items as it is exchanged for more price than other
essential item that regularly have been purchased by consumer
in meeting basic requirement. During financial crisis, people
generally do not go for high price products and services rather
than going with lower price so that they can overcome financial
crisis time. Thus, any kind of change in the financial
environment in the world market would difficult to make
revenues from global market due to reluctance of buying high
priced product and service during economic crisis period.

Changes in consumer demands and preferences: Cosmetics

industry is volatile and it changes consumer preferences and
demands very frequently. So, companies need to make change
products very frequently which are costly and take time to
launch the new products which are demanded by the
consumers across the world. 

Hence, it would mean L'Oreal had to completely change their

products designs, which would take up a lot of time and
investment. However, would also create business opportunity
and beat competition in cosmetics and beauty care industry
which will allow achieving defined goals and objectives in
business. 
L'Oreal has chosen a unique strategy : Universalisation. It
means globalisation that captures, understands and respects
differences. Differences in desires, needs and traditions. To
offer tailor-made beauty, and meet the aspirations of
consumers in every part of the world.

CSR ACTIVITIES OF L’OREAL:

The Policy recognises that Corporate Social Responsibility is not

merely compliance; it is a commitment to support initiatives
that measurably improve the lives of underprivileged by one or
more of the following focus areas as notified under Section 135
read with Schedule VII of the Companies Act 2013 and the
Companies (Corporate Social Responsibility Policy) Rules 2014:
Eradicating hunger, poverty and malnutrition, promoting health
care including preventive health care and sanitation and
making available safe drinking water; Promoting education,
including special education and employment enhancing
vocation skills, especially among children, women, elderly, and
the differently abled and livelihood enhancement projects;
Promoting gender equality, empowering women, setting up
homes and hostels for women and orphans; setting up old age
homes, day care centres and such other facilities for senior
citizens and measures for reducing inequalities faced by socially
and economically backward groups; Ensuring environmental
sustainability, ecological balance, protection of flora and fauna,
animal welfare, agro forestry, conservation of natural resources
and maintaining quality of soil, air and water; Protection of
national heritage, alt and culture including restoration of
buildings and sites of historical importance and works of art;
setting up public libraries; promotion and development of
traditional arts and handicrafts: Measures for the benefit of
armed forces veterans, war widows and their dependents;
Training to promote rural sports, nationally recognised sports,
paralympic sports and Olympic sports; contribution to the
Prime Minister's National Relief Fund or any other fund set up
by the Central Government for socio-economic development
and relief and welfare of the Scheduled Caste$, the Scheduled
Tribes, other backward classes, minorities and women;
Contributions or funds provided to technology incubators
located within academic institutions which are approved by the
Central Government Rural development projects. Slum area
development, Any other Projects / activities the Government
may add from time to time to the Schedule VII of the
Companies Act, 2013 or allow through clarifications/ Circulars.
Any ancillary or incidental activities required to be performed
to undertake any of the projects mentioned above subject to
the prior approval of the CSR Committee. CSR activities shall be
undertaken as projects, programs of activities (either new or
ongoing) excluding activities undertaken in pursuance of the
normal course of business of the Company. Annual spends /
Allocation of Funds: The Company would spend not less than
2% of the average Net Profits of the Company made during the
three immediately preceding financial years. The surplus arising
out of the CSR activity will not be part of business profits of the
Company.
The company  is the title sponsor for Lakme  Fashion Week
(LFW) a bi-annual fashion event which takes place in Mumbai.

Lakme Cosmetics.

Type Privately held

Industry Personal care and salon services
Founded 1952
Founder J.R.D Tata Simone Tata
Headquarters India

Lakme Lever Private Limited's operating revenue range is INR

100 cr - 500 cr for the financial year . It's EBITDA has increased
by 0.32 % over the previous year. At the same time, it's book
net worth has increased by 12.75 %.

Sales Like-for-like, i.e. based on a comparable scope of

consolidation and constant exchange rates, the sales growth of
the L'Oreal group was +7.1%. Based on reported figures, the
Group's sales, at 31 December 2018, amounted to 26.9 billion
Euros, an increase of +3.5%.

According to the research agency Nielsen, lakme is the

current market leader, with a 17.7 per cent market share in
cosmetics and Lakme has a reputation for aggressive expansion.

MARKET CAPITALISATION RATE OF LAKME:

Market Cap (Rs Cr.) 17,621.51
P/E 104.66
Book Value (Rs) 47.80
Dividend (%) 130.00

Market Lot 1
Industry P/E 45.56
EPS (TTM) 4.72
P/C 81.92

Price/Book 10.37
Dividend Yield.(%) 0.26
Face Value (RS) 1.00
Deliverables (%)  49.37

MARKETING MIX OF LAKME:

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

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
 Lakme Eyeconic 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

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.
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 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 .
Competitive advantage in the Marketing strategy
of LAKME–
The brand started its journey as a 100% subsidiary of the Tata
Oils Mills (TOMCO) in 1952 (TOMCO had many flagship brands
like Hamam, Moti, Joy soaps) which was later sold to Hindustan
Unilever Ltd. in 1994.