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PROJECT REPORT On

COMPARATIVE STUDY BETWEEN MARKETING STRATEGIES OF LAKME AND REVLON

VS

Submitted by:

AMANPREET KAUR

AKNOWLEDGEMENT
I HAVE GREAT PLEASURE IN PRESENTING MY PROJECT ENTITLED LAKME AND REVLON. I INEPTNESS MY PROJECT. I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL THE FACULTY MEMBERS. FOR THIS APPROVAL & ALSO FOR HER VALUABLE GUIDANCE & SUPPORT IN COMPLETING MY PROJECT OF COMPARATIVE STUDIES BETWEEN MARKETING STRATEGIES OF LAKME AND REVLON. LAST BUT NOT THE LEAST I WOULD LIKE TO EXPRESS MY SINCERE THANKS TO THOSE WHO DIRECTLY & INDIRECTLY HELPED IN THIS PROJECT. TO ALL THOSE WHO TAKE THIS AN CONTRIBUTED OPPORTUNITY TO EXPRESS MY DEEPEST GRATITUDE & INDIRECTLY THEIR VALUABLE TIME & ASSISTED ME IN

CONTENTS  Introduction  Brief overview of marketing strategies.  Company Profile of Lakme  Company Profile of Revlon  Various Marketing strategies adopted by the two Company along with product profile  Objectives of the Study  Suggestions and Recommendations  Summary & Conclusion  Appendix  Bibliography .

The low market penetration of many cosmetics and personal care products offers room for growth. changing life styles. The Indian toiletries market is well developed and dominated by major multinational companies and a few large Indian players. the use of cosmetics by Indian consumers has increased significantly with more and more women and men taking greater interest in personal grooming. This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. companies. skin care.INTRODUCTION Within a short span of the last five-six years. The growing Indian cosmetics market offers promising prospects for international brands. Penetration of most cosmetic and toiletries is very low in India. many of the world’s popular cosmetics brands entered the Indian market in the early and mid-nineties and some more have set their sights on India. With the demand for cosmetics on the rise and the opening up of the market to foreign companies. influence of satellite television and greater product choice and availability. and hair care products are some of the major segments with promising prospects for U. Perfumes and fragrances. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. . increasing disposable incomes.S. Current consumption of many products is well below that of many countries in Asia.

Even with a 20 percent average growth rate.68 cents as compared to US$ 36. India’s import of cosmetics and toiletries and intermediate raw materials is around US$ 120 million. penetration of satellite television. awareness of the western world and growing importance of . Of this. increasing advertising. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. The objective of the study report is to analyze the consumer satisfaction level of different brands. 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. accounting for around US$ 60 million of the market. higher disposable incomes.The urban population with increasing purchasing power is the major force driving demand for cosmetics and toiletries. with changing lifestyles.65 in other Asian countries. the per capita consumption of cosmetics is very low in India. of which the U.S. particularly focused on the Lakme and Revlon products Market Overview The current size of the Indian cosmetic market is approximately US$ 600 million. the fastest growing segment is cosmetics. has a share of approximately 10 percent. Current per capita expenditure on cosmetics is approximately US$ 0. However. India is a very pricesensitive market and mass-market products constitute the major part of the cosmetics and toiletries market.

another domestic player. With rising demand from men. Tips & Toes. while the market for nail enamels is estimated at around US$ 23 million. Also. there has been a rise in demand for professional beauty care products. Lipsticks account for nearly a third of the market at US$ 21 million. with the boom in the Indian fashion world and the growth in the television industry. Lakme. The color cosmetics segment is very competitive and has a high penetration level of 80 percent. while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. there have been significant changes and use of cosmetics is on the rise. Market Trends Cosmetics 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. the Indian . Nail enamels and lipsticks account for around 65 percent of total color cosmetic sales in India. Cosmetics constitute the high growth segments. and Revlon dominate the US$ 60 million color cosmetics market. Mass-market products account for a major share. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. Revlon of the U. men and young women. Cosmetic companies in India are placing increasing emphasis on market research and targeting new market segments such as teenagers.beauty pageants. now bought over by Hindustan Lever (HLL) of the Unilever group. Most other cosmetic products are estimated to be used by less than 40 percent of the consumers. perfumes and other cosmetics. a brand originally introduced by the Tata group of India. Multinationals.S.

Price is not the only reason responsible for their problems. India is a very price sensitive market and the cosmetics and personal care product companies. many cosmetic companies launched their products in smaller pack sizes to make them more affordable. especially the new entrants have had to work out new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for themselves. Import Market Costs for importing products are much higher than producing it in the country.market is getting enlarged and many players are coming out with cosmetic products especially skin care products for men.2 percent. which has been traditionally a stronghold of a few major Indian players like Lakme has seen a lot of foreign entrants like Revlon to the market within the last decade. Poor assessment of the size of the upper middle and high-income groups. India allows entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39. Competition The Indian cosmetic market. and price sensitivity even within these groups. had added to their problems. Lakme and Revlon were the first to introduce small pack . Many had to re-work price strategies towards the mass segment. This makes imported products very expensive for most consumers. Most foreign cosmetics companies selling premium brands have had a difficult time developing the low volume premium market in India. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time.

stimulating and meeting customer’s requirements. Only the Marketing Concept is capable of keeping the organization free from marketing myopia. not the corporation has to be the centre of the business universe. The customer. Small pack sizes have proved to be very popular in the Indian market as it offers a consumer lower purchase cost and the opportunity to try new products. Revlon introduced its small-range of 8 ml nail polishes and lipsticks.It stipulates that any business should be organized around the marketing function. The concept puts the consumer both at the beginning and the end of the business cycle . and was soon followed it its strategy by major Indian companies as well. anticipating. A business cannot succeed by supplying products and services that are not properly designed to serve the needs of the customers.sizes. THE MARKETING CONCEPT The Marketing Concept was born out of the awareness that marketing starts with the determination of consumers wants and needs with the satisfaction of those wants. .

this division of HLL was focusing on Lakme. Having put the brand on `maintenance' mode. Pricing strategy With a pricing that is almost one-third that of Lakme. Elle 18. While Lakme has been high on innovation. Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers. At that point of time. of late. Elle 18 has been on maintenance mode. Vice-President. "There was a change in our strategy in the past. Speaking to Business Line. has also unleashed a campaign based on its products. Elle 18's main competitor in the youth-based cosmetics market was Tips & Toes. The brand has been growing at a lower rate than Lakme. Anil Chopra. "In the first three years. said: "We are relooking at the Elle 18 brand.MARKETING STRATEGY Lakme: To Strongly Position The Brand On The Youth Platform." Launched in 1998. But now we are now . a brand that is almost non-existent today. Mr. Elle 18. Lakme Lever is planning to revive its youth-oriented brand. Elle 18 targeted the first-time cosmetic user and currently sports two product lines comprising lipsticks and nail enamel." said Mr Chopra.

relooking at Elle 18 as there is still no brand that is so sharply positioned on the youth platform. So. . it is the salon business that has been registering the highest growth rates for Lakme Lever. our salon business has been growing the fastest. "The overall beauty market has been growing between 15-20 per cent but we have been growing higher than the market." Mr Chopra said. There was a conscious price differential between the brands to attract the first generation users of cosmetics. Meanwhile. Lakme Lever continues to innovate for its existing range of skincare and color cosmetics under the Lakme brand. "While there is no new product." Mr. we will be upgrading the existing skin care range with new formulation and packaging." However. In color cosmetics it has roped in designer Sabyasachi Mukerjee to unleash the `Free Spirit' range as part of its winter collection. an Elle 18 Lipstick was pegged at Rs 55. Chopra said. "With a small base. while a Lakme Lipstick would have an MRP of Rs 165. It recently relaunched its skincare range under the name of Lakme Fundamentals." said Mr Chopra.

Lakme Restages Its Opera Its turnaround sketch has got just a few strokes . By 1999. .. Besides. They fall in love. well." said Mr Chopra.. Lakme Lever intends consolidating its hair care portfolio launched last year under the Lakme Hair Next brand. and test the rural waters.There are plans to have 100 Lakme salons by the end of the year from the existing 92 salons across the country.grab the fashion platform. spruce up the supply-chain. actually-Hindustan Lever Ltd (HLL). Anglo-Dutch. That's the story of Lakme. Her orthodox father vows vengeance. Simone Tata was no longer on the scene. And a home-grown fashion brandoften personified as the high priestess of fashion in the country-had been sold to a multinational company whose provenance was English. "We do not want to add to existing hair care products in the market. the world looked set for a revised version of the work. The brand has been launched in the hair styling category and we want to create awareness and educate our consumers without confusing them with more products. the name of the priestess). High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground. a 19th century opera written by Frenchman Leo Delibes. from which Simone Tata borrowed the name Lakme (French for Lakshmi.

Worse.'' gushes Mumbai-based fashion choreographer Lubna Adams. The aria. Anil Chopra. but also got a virtual ownership of this plank. is Lakmé back? Getting the focus right A little bit of Lakmé history: in 1995. with HLL not appearing too keen about the brand-the company. Standing amidst the jamboree of what is. So. Only. In 1998. the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. Lever was right. not just taken a lead (over others). ''Lakmé is at the forefront of product-innovation. wasn't quite over. Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL. predictably. Almost everyone has a Lakmésomething in their (cosmetics) collection. It will be very difficult for any other brand to adopt a similar approach. 51. we have. the brand looked all set to follow the spirit of Lakmé the opera (a tragedy). arguably. Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. denies this-Lakmé. the affable Director who heads Lakmé Lever Ltd is bullish about the brand's new positioning: ''By taking on the fashion and glamour platform. the Lakmé India Fashion Week (LIFW for short). India's first fashion summit. . in a way. as is now evident. renamed itself Trent and entered a different business (retail).'' And reactions to the born-again Lakmé at the LIFW did suggest that Chopra and the brand were on to a good thing.

however. According to ORG-MARG's retail audit. but that has been the result of our efforts to reposition and reintroduce the brand. Executive Director. The 'aspirational' qualification would mean Lakmé would compete at what the company terms the 'upper-mass' (premium) end of the colour cosmetics spectrum (products priced between Rs 85 and Rs 250) where a slew of competitors. is clear: Ponds is Lever's primary skincare brand.'' The positioning bit. Modi Revlon: ''The numbers say it all.The FAQs: With Ponds becoming part of HLL. Says Meghna Modi. which also has a presence in skincare. its apparitional colour cosmetics brand. 26. we have an 84 per cent share of the premium end of the colour cosmetics market. the company has three brands: Lakmé itself. Today. are already slugging it out. Likely outcome by the strategy The premium segment. which will be positioned as a fashion-brand. ranging from Revlon (through Modi Revlon) to Chambor.'' Chopra is quick to rubbish this claim. Lakmé. he says ORGMARG does not have a representative sample of the 60. what happens to Lakmé's skincare business? What does Lever's launch of Aviance mean for Lakmé? And why is it so difficult to find Lakmé products? 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. although complex. . is just a slice of the Indian market for colour cosmetics (estimated size: Rs 275 crore).000 outlets through which colour cosmetics are sold in India.

and is testmarketing Elka. Says Nikhil Vora. Portfolio Advisor. That means Lakmé Lever will have to depend on its own kitchen garden.com: ''Though rural markets are big potential. a super-premium brand that hasn't really seen much excitement since its 1999-relaunch. and Orchid. .Elle 18. but this opera could well have a happy ending. But a focused-most of its skincare business and all of its exports business have been taken on by HLL-Lakmé does seem to be on a come-back trail. The company plans to re-re-launch Orchid by end-2000. could also catalyse Lakmé's entry into the hinterland. Any expansion into new areas should be justified by returns. a brand targeted at the lowest-end of the colour cosmetics market. which has enjoyed success as a college-girl brand. It's still the second act. a company has to think of segments carefully.'' Lakmé will remain a loner in the Lever stable: Unilever does not have a presence in the colour cosmetics segment. Sharekhan. The brand. 28. but only if tests show there is a rural market for colour cosmetics. Chopra claims.

research and constant innovation.Lakme's Profile Lakmé is an Indian brand of cosmetics. and went on to become its chairman. In 1998 Tata sold of there stakes in Lakmé Lever to to HLL. for Rs 200 Crore (45 million US$). Lakme tapped into what would grow to be amongst the leading. and there was a very small market base. Armed with a potent combination of foresight. owned by Unilever.that of skincare and cosmetic products. At a time when the beauty industry in India was at a nascent stage. Lakme started as a 100% subsidiary of Tata Group (Tomco). and arm the consumer with products to pamper herself from head to toe. These include products for . Simone Tata joined the company as director. India's first beauty brand was born. as India took her steps into freedom. Indian cosmetic industry was rather nacent. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. Lakme has grown to be the market leader in the cosmetics industry. and greater competition from global companies in cosmetics. At the time of its establishment. and went on to create Trent and Westside. they enetered into a 50-50 joint venture with Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever. Half a century ago. Lakme. it was named after the French opera Lakmé. When Tata's saw a bigger growth potential in the retail market. high consumer interest segments in the Indian Industry .

and services like the Lakme Beauty Salons About LAKMÉ The Carreras family established LAKMÉ Cosmetics in 1997 and is independent. eyes. face and skin. Branding and packaging of the product range is first class and they are tested and manufactured solely for this brand name and no other. The family has over 40 years of manufacturing experience in salon products. Combine this with FREE ongoing in- . All product formulation is in accordance with the health standards of the European Union and the United States Food & Drug Administration and is subject to ISO 9002 certification. The Products LAKMÉ leading hair care products are developed exclusively for distribution to hair and beauty salons. The Promotion Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGE for customer sales and your own use. with freestanding display units highlighting the unique quality and variety of your products and enhancing the quality of your sales and service. Lakmé East a regional distributor of Lakmé Cosmetics with its main office in Colchester is conveniently placed to provide you with all the guidance back up and support you’ll ever need. self-financed and family owned.the lips. nails. The very best raw materials are used in manufacture using the latest technology and adopting the highest levels of hygiene.

Sun Screen Lotion and Hair Remover. pH-Balanced Face Wash. which the company will continue to market in new packaging. Launched in Colombo earlier this month. but not by yourself. Nourishing Body Lotion. has announced. . the Indian cosmetics giant has expanded the range of skin care products it markets in Sri Lanka.. the addition to the Lakme skin care range are the Lakme Nourishing Cold Cream. Hemas Marketing was responsible for the distribution of Lakme Maximum Moisturiser and Lakme Deep Pore Cleansing Milk. and unveiled the company's new international logo and image. Prior to the launch of these products. Lakme's local distributor Hemas Marketing (Pte) Ltd.salon education and you have the perfect basis to grow your business for yourself. Calamine Lotion. Lakme expands skin care products Lakme.

a nail enamel unlike any before it the three founders pooled their meager resources and developed a unique manufacturing process. Using pigments instead of dyes. Our vision is to provide glamour. along with a chemist. product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world. Charles Lachman. Revlon was able to offer to woman a rich-looking. Almay®. New Complexion®. To pursue this vision. it was an improvement over the more transparent. dye-based products of . opaque nail enamel in a wide variety of shades never before available.Revlon Profile Revlon is a world leader in cosmetics. sales and operating system of a consumer packaged goods company. Opaque and long-lasting. Revlon Age Defying®. Revlon was founded in 1932. excitement and innovation through quality products at affordable prices. Our global brand name recognition. Revlon's management team combines the creativity of a cosmetics and fashion company with the marketing. by Charles Revson and his brother Joseph. Ultima II® and Flex® and Charlie®. Revlon's brands include Revlon®. who contributed the "L" in the REVLON name. skin care. fragrance and personal care and is a leading mass market cosmetics brand. Revlon's first beauty item was nail enamel. Starting with a single product . with our products sold in approximately 175 countries and territories. ColorStay®.

the year the company incorporated as Revlon Products Corporation. medium red. New Jersey. which also allowed a wider color range than the light red. going into partnership with his brother and a nail polish supplier named Charles R. In that year. Initially. Revson decided to enlarge his market by retailing his nail polish through department stores and selected drugstores. By 1937. who contributed the "l" to the Revlon name. the revolutionary "cream enamel" came from the tiny Elka company.246 in 1933. and dark red then available. Coupling this with his experience at Elka. a polish supplier to beauty salons for whom Charles Revson began to work as a sales representative in 1931. honed by his seven years of sales experience at the Pickwick Dress Company in New York. in Newark. This gave him access to more affluent customers as well as those with a moderate . the company boasted sales of $4. sales multiplied more than 40 times. 1932. he noted that the permanent wave boom was making beauty salons more popular and that demand for manicures was rising in tandem. Revlon was formed on March 1.000. however. Charles Revson decided to open his own nail polish company. Within a year. He therefore targeted beauty salons as a market niche--a fortunate choice whose importance would grow. Within its first nine months. There was a sharp rise in sales to $11. Lachman. the company had grossed $68. Revlon had a keen fashion instinct.other manufacturers. Charles Revson and his older brother Joseph distributed Elka nail polish as Revson Brothers.055. At the end of 1934. Revlon's nail polish owed its superiority to the use of pigments.

which were crafted in anticipation of the season's clothing fashions.000 Question. Each promotion featured a descriptive color name to tempt the buyer. The company received its next boost from its 1955 sole sponsorship of the CBS television show The $64. whose sponsorship of This is Your Life was providing serious competition for Revlon's lipsticks. Formulating a maxim he followed for the rest of his life.5 million. Revson was persuaded by the success of rival Hazel Bishop. Returning interest in dress sparked the company's twice-yearly nail enamel and lipstick promotions. which planned its November issue around the lipstick and nail enamel.amount of money to spend on beauty products. Marketing strategy Postwar sales strategy. "push" money given to demonstrators in stores without Revlon sales staff to insure full retail coverage. and display cards reproducing or enlarging consumer ads. color cards showing the range of colors in the promotion. Its features included the cooperation of Vogue magazine. and radio endorsements written into scripts for performers such as Bob Hope and Red Skelton. selling his product only at premium prices. Though initially reluctant to go ahead with this project. full-color spreads in fashion magazines. too. These efforts produced excellent publicity and helped to raise 1952 net sales to almost $25. was influenced by increases in spending and department store credit sales. The Fire and Ice promotion for fall 1952 was one of the most successful. Packaging was designed specifically for each line. Attracting a weekly audience of 55 . Revson steered clear of cut-rate stores.

6 million. consumers. as a result of the television show. Charlie models in Ralph Lauren clothes personified the independent woman of the 1970s. advertised. sales of some products increased 500 percent. proved Charles Revson's adage that publicity had to be heavy to sell cosmetics. Charlie was an instant success. had also become familiar to U. makers of antiperspirants and other toiletries.million people. formerly Knomark.5 million. and net sales for 1955 grew to $51. such as Norell and Intimate for women and Braggi and Pub for men. from $33. its six lines separately aimed. Revlon's advertising budget for the year. Revlon fragrances. a fragrance designed for the working woman's budget. Geared to the under-30 market. Revlon also had a new line of wig-maintenance products called Wig Wonder. $7. and marketed. Mitchum-Thayer division's widely publicized products required a 1971 advertising budget of $4 million. helping to raise Revlon's net sales figures to $506 million for 1973 and to almost $606 million the following year. . An important 1970 acquisition was the Mitchum Company of Tennessee.S. The $64. The Cosmetics and Fragrances division. was the industry leader in all franchised retail outlets. In 1973. Revlon introduced Charlie.6 million one year previously. Takeover strategy The 1970s began with annual sales of about $314 million. Mitchum joined the Thayer Laboratories subsidiary.000 Question topped the ratings within four weeks of its debut.

15 1 3 4 3 4 3 4 3 3 0.30 0.45 0.43 0.40 0.45 3.Strategy formulation framework Revlon CRITICAL SUCCSES FACTOR PRICE WEIG HT 0.30 0.60 FINANCIAL POSITION CONSUME R LOYALTY ADVERTISI NG PRODUCT QUALITY INNOVATI ON MARKET SHARE MANAGEM ENT GLOBAL EXPANSIO N TOTAL 0.18 0.10 0.10 0.40 0.10 0.43 .40 0.40 0.10 0.06 0.10 0.45 Lakme RATI NG 4 WEIGH TED SCORE 0.45 0.15 0.40 0.18 0.60 3.20 0.30 0.33 4 4 3 3 3 2 3 4 0.15 RATI NG 3 WEIGH TED SCORE 0.

.  To study the effect of Consumer Satisfaction on the Products on the brand switching behavior of the marketability of Cosmetic products.  To know the media access by consumers to know about Cosmetics Products.OBJECTIVES OF STUDY  To find out the impact of Lakme and Revlon informative Cosmetics consumer. Shampoo).  To know various cosmetics product range in the market level for Cosmetic Products (Nail Enamels. Lotions.  To know the impact of various striking features on buyers behavior.

develop new products & packaging.One Depots spread across the country integrated through a single IT network. .STRENGTH Marketing & Sales A commitment to innovate. A 300 plus professional field force serving the distributors and the main retail stores on a regular basis. Marketing Department comprising of seasoned professionals ever adaptive to market dynamics. Technology Center Providing and maintaining the international quality that the consumer deservesQualified team of technologists and scientists endeavoring to adapt formulations. Twenty. Expand and excel:All India network of sales and distribution with service reaching to two hundred thousand outlets via a network of twelve hundred distributors. Association with top of the line advertising agencies to communicate and connect its brands to the consumers.

 Mid and Premium price range are the most preferred.  Advertising Recall  Only Lakme ads recalled significantly by consumers at the unaided level. Revlon a distant second on both counts.Well equipped laboratory to control and meet the international quality standards of our products. more than half the consumers want Lipsticks the most.  When prompted for cosmetics. Consumer Preferences of Cosmetics Toplines  Buying Preferences  Among cosmetics.  Brand Preferences  Lakme is the only cosmetic brand getting significant brand recall at the unaided level. Nail Polish is a distant second. Lakme ads dominate the top of mind ad recall among consumers. . be it for brand recall or for intention to buy. Revlon and L’Oreal recalled noticeably.  When prompted for cosmetics. Lakme dominates the category in consumer minds in a big way. Revlon ads also recalled noticeably.

Large MNCs like the Levers. This frenzy has led to a deluge in the range of innovative products entering this market. the meaning of the term gift seems to have attained a wider meaning. The type of products offered as a promotional item range from a small ball pen to expensive electronic items. Marketing heads are exploring the effectiveness of each and every product as a gift to boost sales. it’s almost like one can’t buy a tooth brush without having to tote a detergent bar home as well. Value Perception could be one reason why this freebie strategy is more effective.Promotional schemes offered by Lakme and Revlon Promotions have emerged as the most economical and effective way to establish a personal rapport with your customers. Infact. People tend to offer just about any thing under the label “Free Gift Inside”. Infact. Philips. Godrej. 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.2.revlon etc. but nowadays. but a gift item which sells for five rupees might be sourced for just Rs. the type of products entering the gifting and promotional category is simply mind-boggling and differ from product to product. have resorted to . 1. They have always been a part of the consumers product s game. Five rupees off means five rupees less to the manufacturer. making the offer far more cost effective.

This acts as a mutual benefit for both the parties. Every second brand seems to be running a contest to actively involve the buyer in his brand. 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. think on their feet. as one achieves better sales while the other achieves better exposure at a very nominal expense. diamonds to cars.giving their own lesser known brands free with their popular brands and vice-versa. 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 trend is extensively practiced by the electronic industry. This automatically tends to reflect a better sales volume as far as both the brands are concerned. but every thing The latest trend as a promotional strategy that has set the marketing arena abuzz is contests. The companies are tying up big celebs and running contests where the customer gets to . There tends to be a small amount of exploitation of a few lesserknown brands in such exercises. homes and free trips abroad. Such moves by these companies forced better-established brands like Onida etc. The companies tend to save their promotional expenses and utilise the same to generate better sales in the respective brands. This trend has come in as a zephyr to the lesser popular brands striving to establish themselves in the market. The prizes given out by companies in contests range from gold.

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. Thane. But at the end of the day what emanates as the greatest question is. 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. 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 they returned some”. for children. capris.-No one would know except the horse himself . 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. skirts and shorts . competitions etc. trousers. Customers had to correctly answer the questions in the form placed in its pack to qualify for this party. It is not only the customer who is being lured by such marketing gimmicks.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. 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’s Wadi’.

4. 3. Timely feedback should be taken so that all the problems can be easily removed. More promotional schemes should be introduced for customers. 5. 2. Company should encourage solving the customer’s complaint. Promotion by local advertisement can also help in promoting Sales of the products. Customer satisfaction should be the ultimate aim so that customer complaints should be removal. .SUGGESTIONS I would like to suggest few points over which a thought can be given to overcome that drawback due to which some of the problems are faced by the products of Lakme and Revelon Products. 1. The company should provide good margin for distributorship.

While other branded companies product are not preferred due to high price and brand loyalty. Users of personnel & Health care products also generally prefer for buying the products of Revlon Groups of Companies. 1. People who are more conscious about their health are more aware about products and therefore prefer the products of Revlon Groups of Companies. 4. . The products of Revlon Groups of Companies are preferred because of its low price and easily available. 3. The advantages which the products of Lakme Groups of Companies shares over other branded companies products are as follows.FINDINGS The products of Revlon Groups of Companies are the leading choice in New Mumbai and it is far ahead from its competitors in terms of customers. The products of Revlon Groups of Companies are preferred because of its low price and easily available. While other branded products are not preferred due to high price and brand loyalty. The products of Lakme Groups of Companies are easily available at easy payments and had a very good after sales retailer services. 2.

.1% in all markets.2 % respectively.2% respectively.  The average sales across North Mumbai markets is 42.9% respectively.  The figure reveal that Lakme & Revlon has good market penetration in all most all the market covered in the survey where compared to its competitions.CONCLUSION The overall average sales of Revlon Products are 54.9% in all markets and Lakme Products are 45. NIVEA and Others.1% respectively. The average sales in different markets are as follows :-  The average Sales Across East Mumbai markets are 50. pears etc. “Monthly survey should be conducted to improve its brand image and increase customer loyalty”.  Still there is a need to Promote Lakme to reach at the level of product like ponds. Like HLL.  The average Sales across West Mumbai markets are 48.  The average sales of Lakme & Revlon across South Mumbai markets is 37.

revlon.com • www. WEBSITES • www.BIBLIOGRAPHY The essence of the report. not fully but partially as advisory notes. listed in this chapter.in .co. are inspired and collected by these sources.lakmeindia.