MARKETING STRATEGY OF LAKME (Submitted in partial fulfilment of the requirements for-MBA) Submitted by-Janvi Raghay Under the guidance of- Prof Shalini Shrivastav Batch of 2022-24 GREATER NOIDA IN: UTE OF BUSINESS MANAG PLOT NO 11/1, KNOWLEDGE PARK-3, GREATER NOIDA-201306 (UP)ACKNOWLEDGEMEN On the very outset of this report, I would like to extent my sincere & heartfelt obligation towards all the personage who have helped me in this endeavour. Without their active guidance, help, cooperation & encouragement, [ would not have made headway in the project. I am ineffably indebted to Prof. Shalini Shrivastav for conscientious guidance and encouragement to accomplish this assignment. I am extremely thankful and pay my gratitude to my faculty for valuable guidance and completion of this project in his presence. Lextended my gratitude to GREATER NOIDA INSTITUTE OF BUSINESS MANAGEMENT for giving me this opportunity. I also acknowledge with a deep sense of reverence, my gratitude towards my parents and my friends, who has always supported me morally as well as economically Thanking you JANVI RAGHAVCERTIFICATE This is to certify that the work which is being presented in this report entitled “MARKETING STRATEGY OF LAKME” is an authentic record of the “JANVI RAGHAY ™ carried out under my supervision. The statements made by the candidate are correct to the best of my knowledge. FACULTY MENTORSTUDENT DECLARATION 1 “JANVI RAGHAY ” hereby declares that the work which is being presented in this report entitled “MARKETING STRATEGY OF LAKME” is an authentic record of my own work carried out under the supervision of “Prof, Shalini Shrivastay ”. ‘The matter embodied in this report has not been submitted by me for the award of any other degree/diploma/certificate JANVI RAGHAVCONTENTS TITLE PAGE NO. 1. INTRODUCTION 6-7 2. COMPANY PROFILE 8-9 3.LAKME HISTORY 9-10 4. SWOT ANALYSIS OF LAKME 11-13 5. QUESTIONNAIRE 14-17 6. FINDING AND ANALYSIS 18 7.RECOMMENDATIONS 19 8. CONCLUSION 20 21NTRODUCTION High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground. They fall in love, Her orthodox father vows vengeance... That's the story of Lakmé, a 19th century opera written by Frenchman Leo Delibes, from which Simone Tata borrowed the name Lakmé (French for Lakshmi, the name of the priestess), The current size of the Indian cosmetic market is approximately USS 600 million. Of this, the fastest growing segment is color cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20 percent per annum across different segments of the cosmetics industry reflecting an increasing demand for all kinds of beauty and personal care product. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. Even with a 20 percent average growth rate, the per capita consumption of cosmetics is very low in India. Current per capita expenditure on cosmetics is approximately US$ 0.68 cents as compared to US$ 36.65 in other Asian countries. However, with changing lifestyles, higher disposable incomes, increasing advertising, penetration of satellite television, awareness of the western world and growing importance of beauty pageants, there have been significant changes and use of cosmetics is on the rise. Lakme, a brand originally introduced by the Tata group of India, now bought over by Hindustan Unilever (HUL) of the Unilever group, Tips & Toes, another domestic player, and Revlon dominate the US$ 60 million color cosmetics market. Multinationals, Revlon of the U.S. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. Mass-market products account for a major share, while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. Lipsticks account fornearly a third of the market at US$ 21 million, while the market for nail enamels is estimated at around US$ 23 million. The color cosmetics segment is very competitive and has a high penetration level of 80 percent, The skin care market in India is estimated at USS 180 million. Within the last decade, this segment has seen many consumers slowly shift from the mass to the premium end of the market. The penetration rate is high in the skin-care segment as compared to color cosmetics. In the skin-care segment, price and volume played an equal role in value growth. Moisturizing lotions, fairness creams and face cleansers are the popular categories in the skin-care segment and account for approximately 60 percent of the skin-care segment. The major players in this segments are Lakme, Ponds, Fair & Lovely of the HUL group with a 50 percent market share, followed by players such as J.L. Morison that markets the Nivea range of products in India, Godrej and Revlon. Penetration levels of international cosmetics brands in India are still low. Foreign brands currently constitute only 20 percent of the market. A major reason for low penetration of international brands can be attributed to high pricing. These companies initially gained sales on their international brand image, however, repeat purchases were not forthcoming and to retain their sales growth, several foreign companies reformulated price strategies to tap the large Indian middle class. Urban women in the middle and upper income groups in the age range of 23-50 is the target group for international brands, as this group looks for better products and is willing to pay a premium for international quality products. Industry estimates suggest that there are close to 10 million such women in India.COMPANY PROFILE Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand was born. At a time when the beauty industry in India was at a nascent stage, Lakme tapped into what would grow to be amongst the leading, high consumer interest segments in the Indian Industry - that of skincare and cosmetic products. Armed with a potentcombination of foresight, research and constant innovation, Lakme has grown to be the market leader in the cosmetics industry. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care, and arm the consumer with products to pamper herself from head to toe. These include products for the lips, nails, eyes, face and skin, and services like the Lakme Beauty Salons. Lakmé history: In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé’s products. In 1998, Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL, renamed itself Trent and entered a different busine (retail). Only, the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé’s future. A brand that has over 5 decades talked of beauty is none other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from the early 80's. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. A brand that has over 5 decades talked of beauty is none other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from the early 80's, Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987, These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women.Chopra accepts that distribution has been the company's Achilles heel for some time: "The supply-chain hasn't been as robust as it should have been, but that has been the result of our efforts to reposition and reintroduce the brand." The positioning bit, although complex, is clear: Ponds is Lever's primary skincare brand; Lakmé, its aspirational colour cosmetics brand, which also has a presence in skincare. The ‘aspirational’ qualification would mean Lakmé would compete at what the company terms the 'uppet-mass' (premium) end of the colour cosmetics spectrum (products priced between Rs 85 and Rs 250) where a slew of competitors, ranging from Revlon (through Modi Revlon) to Chambor, are already slugging it out. Says Meghna Modi, 26, Executive Director, Modi Revlon: "The numbers say it all. According to ORG- MARG's retail audit, we have an 84 per cent share of the premium end of the colour cosmetics market." Chopra is quick to rubbish this claim: he says ORG-MARG does not have a representative sample of the 60,000 outlets through which colour cosmetics are sold in India Still, it is conceivable that Lakmé’s new-found aspirational strategy could have been brought about by competitors like Revlon and Maybelline, which targeted this segment. Indeed, the company's non- transfer lip-colour range follows in the wake of Maybelline’s launch of a similar range, and its new nail-enamel colours come soon after Maybelline and Revlon launched their nail-enamel range. The company's defense is that it takes at least 15 months from the conceptualization to the actual launch of products. And fashion consultants like Meher Castelino believe the brand commands an edge at the high-end: "By appropriating the fashion platform for itself, Lakmé has entrenched itself at the glamour-end."SWOT ANALYSIS of LAKME trength: » Local brand of specific relevance to India. > Strong R&D capability well linked with business. > Integrated supply chain and well spread manufacturing units > Ability to deliver Cost Savings. > Access to Unilever global technology capability and sharing of best practices from other Unilever Weaknesses: > Price positioning in some categories allows for low price competition. > Varying quality range in its products. > Falling Quality of Lame salons Opportunities: > Brand growth through increased consumption depth and frequency of usage across all categories. > Upgrading consumers through innovation to new levels of quality and performance > Building brand image by collaborating with top designers in Lakme Fashion week Threats: > Aggressive price competition from local and multinational players. > Spurious/counterfeit products in rural areas and small towns.> Non Existence of brand image in long Run Everything a girl wants Lakmé 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. Lakmé provide the complete package with the skin care range and the wide range of colors to spice up the look. Lakme products Colours, From the spicy shades to the flattering look, Lakme offers a range of products in the face, lips, eyes and nail segment for the beauty aficionados. Face Lakmé Daily Wear Soufflé ,Lakmé Perfecting liquid Foundation - Lakmé Radiance Compact ,Lakmé Flawless Matte Complexion Compact Lips Lakmé Enrich Lipcolor - . Perfecting Definition Lip Pencil - Starshine Lipgloss - Glosses in lustrous shades available in 14 shades.From dramatic to natural look- a wide range of products are on offer to create the perfect eyes. 1, Lakmé Kajal 2, Lame Insta Eyeliner eyelids 3. Lakme Lakmé Shimmer Eye Cube: True Wear Nail Enamel -Nail Enamel with Laequer-like finish. Contains resins and silicone with colour lock technology that gives brilliant long lasting shine ‘Skin For radiant skin Lakmé is there to pamper your skin with specialized products for the diva in you Cleansi Strawberry Silk Splash Face Wash , Lakmé Fundamental Deep Pore Cleansing Milk - Moisturizi 1. Lakmé Fundamental Peach Milk Moisturiser skin 2, Lakmé Fundamental Winter Care Lotion - ‘Sun Protection The range comprises of lotions to keep your skin healthy and younger looking,Questionnaire Q) Do Lakme provides quality Product? Quality Q) Are You Brand Loyal to Lakme? Brand Loyalty No 30% BYes 70%Q) For what purpose you use Lakme products? = | Ss 1 | m= Usage Eyes Lip Nail Face Color Enamel Q) What do you think about the price level of Lakme products ? Price Level ® High 30% BLow 5% 1 Optimun 65%Q) If not Lakme then which other brand? Competitors ® Revion 22% @ Oriflame 18% ™ Blue heaven 8% B L'Oreal 39% Lissome 7% ‘1 Others 6% Q) Do celebrity endorsements in advertisements attract you towards Lakme products ? Celebrity Endorsement effect > ™No17% B® Yes 83%Q) What inspire you to go for any cosmetic product? ® Color/ shades 30% B Quality 36% & Packaging 14% oY © Versatility 14% Q) What changes you would like to see in the Lakme products? Expectations More Product Range More Shades ™ Better Packaging —® Allthe above qiFINDING & ANALYS' 1. After the data analysis I reached the conclusion that around 50% respondents are use Lakme product for their Facial purpose. 2. 70% respondents said that they are loyal to Lakme product. 3.60 % respondents said that Lakme provide them quality products. 4. During analysis 39 % respondents said that L’Oreal, 22% Revelon, 18% said Oriflame, 8% BlueHeaven, 7% said Lissome, and 6% said other brands for using except Lakme. Most of the respondents go for quality (36%) in cosmetic products. 65% respondents said that price level of Lakme product is optimum. 7. 83% respondents said that celebrity endorsements in advertisements attract them towards Lakme products. 8. 47% respondents said that Lakme should have to increased their product range.RECOMMENDATIONS Y Promotions beyond fashion week ¥ The brand should not lose its focus away from cosmeti prove to very detrimental. Y For vast reach unlikely, in the short-term. “Some sort of an alliance or co-branding with the salons that already exist may, perhaps, have been a better strategy. Y the general perception is that company-owned salons are expensive. Though Lakme beauty salons are reasonably priced, it has not been communicated well enough.CONCLUSION Since the Null hypothesis is rejected therefore it states that the customers are not satisfied well with the lakme products. This would be the major cause of lose of market share in the country. Another reason is the upcoming of Regional brands in the country that is making lakme loose its sheen, Therefore the company should take in strategic steps and planning to revive its brand image accordingly The local cosmetics and toiletries market is valued at approximately RM3 billion or about US$800 million, with a growth rate of 13% annually. It is estimated that there are more than 60,000 types of cosmetic products in the local market. Imported products from Thailand, the United States, Franc Singapore and Japan dominate the market. The local cosmetics and toiletries industry generally involves mixing and formulation processes, using imported ingredients. Many of these companies are contract manufacturers, mainly for products such as shampoo and conditioners, other hair care produets, perfumes, and cosmetics. Advertising and promotion is crucial for cosmetics and toiletries products, in order to create an awareness of new products and build brand loyalty among consumers. Advertisements in TV and the print media such as newspaper and magazines, especially women’s magazines, are very common. Samples of toiletries products are distributed to individual households and products in sachet form are attached to magazines. Free gifts are given during promotion periods and are advertised in the local major newspapers and on the web. According to the industry, the market is saturated with many different types of products, and in the long run, established brands that emphasize quality and service will have the edge.BIBLIOGRAPHY © Kotler Philip , Keller Lane Kevin marketing , prentice hall of India , 2005 S.P Gupta , Business Statistics, 14" edition , 2005 * Business Statistics , J. K Sharma , edition 2005 * Tata Mc graw-Hill Edtion , Business research methods , Donald R.Cooper , Pamela S. Schindler, References © www.hindubusinessline.com * www.lakmeindia.com © www.hil.com * www.economictimes.com © www.financialexpress.com