PROJECT REPORT On
COMPARATIVE STUDY BETWEEN MARKETING STRATEGIES OF LAKME AND REVLON
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
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
Current consumption of many products is well below that of many countries in Asia.INTRODUCTION
Within a short span of the last five-six years. changing life styles. the use of cosmetics by Indian consumers has increased significantly with more and more women and men taking greater interest in personal grooming. skin care.S. influence of satellite television and greater product choice and availability. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. The Indian toiletries market is well developed and dominated by major multinational companies and a few large Indian players. The growing Indian cosmetics market offers promising prospects for international brands. companies.
. The low market penetration of many cosmetics and personal care products offers room for growth. With the demand for cosmetics on the rise and the opening up of the market to foreign companies. 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. Penetration of most cosmetic and toiletries is very low in India. Perfumes and fragrances. This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. and hair care products are some of the major segments with promising prospects for U. increasing disposable incomes.
particularly focused on the Lakme and Revlon products
The current size of the Indian cosmetic market is approximately US$ 600 million. awareness of the western world and growing importance of
. India is a very pricesensitive market and mass-market products constitute the major part of the cosmetics and toiletries market. of which the U.65 in other Asian countries.68 cents as compared to US$ 36. Current per capita expenditure on cosmetics is approximately US$ 0. India’s import of cosmetics and toiletries and intermediate raw materials is around US$ 120 million. the fastest growing segment is cosmetics. The objective of the study report is to analyze the consumer satisfaction level of different brands. higher disposable incomes.S. Of this. increasing advertising. Even with a 20 percent average growth rate. accounting for around US$ 60 million of the market. penetration of satellite television. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. However.The urban population with increasing purchasing power is the major force driving demand for cosmetics and toiletries. 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. has a share of approximately 10 percent. the per capita consumption of cosmetics is very low in India. with changing lifestyles.
while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. Most other cosmetic products are estimated to be used by less than 40 percent of the consumers. and Revlon dominate the US$ 60 million color cosmetics market. Also. Revlon of the U. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. men and young women. while the market for nail enamels is estimated at around US$ 23 million. 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. Lakme. with the boom in the Indian fashion world and the growth in the television industry. Cosmetic companies in India are placing increasing emphasis on market research and targeting new market segments such as teenagers. Lipsticks account for nearly a third of the market at US$ 21 million. the Indian
. Mass-market products account for a major share. Tips & Toes. there have been significant changes and use of cosmetics is on the rise. now bought over by Hindustan Lever (HLL) of the Unilever group. perfumes and other cosmetics. Nail enamels and lipsticks account for around 65 percent of total color cosmetic sales in India. With rising demand from men. The color cosmetics segment is very competitive and has a high penetration level of 80 percent.S. another domestic player. Multinationals.beauty pageants. Cosmetics constitute the high growth segments. there has been a rise in demand for professional beauty care products. a brand originally introduced by the Tata group of India.
India is a very price sensitive market and the cosmetics and personal care product companies. Many had to re-work price strategies towards the mass segment. Price is not the only reason responsible for their problems. had added to their problems.market is getting enlarged and many players are coming out with cosmetic products especially skin care products for men. 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. 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. Competition The Indian cosmetic market. This makes imported products very expensive for most consumers. Import Market Costs for importing products are much higher than producing it in the country. Lakme and Revlon were the first to introduce small pack
.2 percent. India allows entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39. many cosmetic companies launched their products in smaller pack sizes to make them more affordable. 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. Poor assessment of the size of the upper middle and high-income groups. and price sensitivity even within these groups.
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.sizes. Revlon introduced its small-range of 8 ml nail polishes and lipsticks.It stipulates that any business should be organized around the marketing function.
. and was soon followed it its strategy by major Indian companies as well. The customer. anticipating. stimulating and meeting customer’s requirements. 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. A business cannot succeed by supplying products and services that are not properly designed to serve the needs of the customers. The concept puts the consumer both at the beginning and the end of the business cycle . not the corporation has to be the centre of the business universe. Only the Marketing Concept is capable of keeping the organization free from marketing myopia.
has also unleashed a campaign based on its products. said: "We are relooking at the Elle 18 brand. Having put the brand on `maintenance' mode. While Lakme has been high on innovation. Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers. Elle 18's main competitor in the youth-based cosmetics market was Tips & Toes." Launched in 1998. a brand that is almost non-existent today. Speaking to Business Line." said Mr Chopra. "There was a change in our strategy in the past. Anil Chopra. The brand has been growing at a lower rate than Lakme. At that point of time. Elle 18. Vice-President. Lakme Lever is planning to revive its youth-oriented brand. Elle 18 has been on maintenance mode. of late. Pricing strategy With a pricing that is almost one-third that of Lakme. Mr. Elle 18. "In the first three years.MARKETING STRATEGY
Lakme: To Strongly Position The Brand On The Youth Platform. Elle 18 targeted the first-time cosmetic user and currently sports two product lines comprising lipsticks and nail enamel. this division of HLL was focusing on Lakme. But now we are now
" Mr. In color cosmetics it has roped in designer Sabyasachi Mukerjee to unleash the `Free Spirit' range as part of its winter collection. It recently relaunched its skincare range under the name of Lakme Fundamentals. while a Lakme Lipstick would have an MRP of Rs 165. Lakme Lever continues to innovate for its existing range of skincare and color cosmetics under the Lakme brand.
. There was a conscious price differential between the brands to attract the first generation users of cosmetics." However. we will be upgrading the existing skin care range with new formulation and packaging." said Mr Chopra. "While there is no new product. it is the salon business that has been registering the highest growth rates for Lakme Lever. "The overall beauty market has been growing between 15-20 per cent but we have been growing higher than the market. Meanwhile. So. an Elle 18 Lipstick was pegged at Rs 55. our salon business has been growing the fastest. Chopra said. "With a small base.relooking at Elle 18 as there is still no brand that is so sharply positioned on the youth platform." Mr Chopra said.
and test the rural waters.. spruce up the supply-chain. Besides.. well. Her orthodox father vows vengeance. the name of the priestess). They fall in love. a 19th century opera written by Frenchman Leo Delibes.
." said Mr Chopra. from which Simone Tata borrowed the name Lakme (French for Lakshmi. 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. Lakme Restages Its Opera Its turnaround sketch has got just a few strokes . High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground. Lakme Lever intends consolidating its hair care portfolio launched last year under the Lakme Hair Next brand. That's the story of Lakme. Simone Tata was no longer on the scene.grab the fashion platform. 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. actually-Hindustan Lever Ltd (HLL). "We do not want to add to existing hair care products in the market.There are plans to have 100 Lakme salons by the end of the year from the existing 92 salons across the country. By 1999. the world looked set for a revised version of the work. Anglo-Dutch.
'' gushes Mumbai-based fashion choreographer Lubna Adams.
. So. ''Lakmé is at the forefront of product-innovation. the brand looked all set to follow the spirit of Lakmé the opera (a tragedy). wasn't quite over. Lever was right.Worse. the affable Director who heads Lakmé Lever Ltd is bullish about the brand's new positioning: ''By taking on the fashion and glamour platform. we have. The aria. Anil Chopra.'' And reactions to the born-again Lakmé at the LIFW did suggest that Chopra and the brand were on to a good thing. is Lakmé back? Getting the focus right A little bit of Lakmé history: in 1995. as is now evident. the Lakmé India Fashion Week (LIFW for short). the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. not just taken a lead (over others). Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. It will be very difficult for any other brand to adopt a similar approach. denies this-Lakmé. Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL. renamed itself Trent and entered a different business (retail). but also got a virtual ownership of this plank. 51. arguably. predictably. in a way. Almost everyone has a Lakmésomething in their (cosmetics) collection. with HLL not appearing too keen about the brand-the company. Standing amidst the jamboree of what is. India's first fashion summit. Only. In 1998.
Today. According to ORG-MARG's retail audit. 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. which will be positioned as a fashion-brand. Says Meghna Modi. 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. Executive Director. Modi Revlon: ''The numbers say it all. Lakmé. we have an 84 per cent share of the premium end of the colour cosmetics market. although complex. 26. ranging from Revlon (through Modi Revlon) to Chambor. Likely outcome by the strategy The premium segment.'' Chopra is quick to rubbish this claim.
. he says ORGMARG does not have a representative sample of the 60. which also has a presence in skincare. but that has been the result of our efforts to reposition and reintroduce the brand.'' The positioning bit. its apparitional colour cosmetics brand.The FAQs: With Ponds becoming part of HLL. are already slugging it out. is clear: Ponds is Lever's primary skincare brand. 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. the company has three brands: Lakmé itself. however.
which has enjoyed success as a college-girl brand. Chopra claims. could also catalyse Lakmé's entry into the hinterland. a super-premium brand that hasn't really seen much excitement since its 1999-relaunch. 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 brand. a brand targeted at the lowest-end of the colour cosmetics market. 28. a company has to think of segments carefully. Portfolio Advisor. but only if tests show there is a rural market for colour cosmetics. That means Lakmé Lever will have to depend on its own kitchen garden.com: ''Though rural markets are big potential.Elle 18. Any expansion into new areas should be justified by returns. Says Nikhil Vora. and Orchid. It's still the second act.'' Lakmé will remain a loner in the Lever stable: Unilever does not have a presence in the colour cosmetics segment. Sharekhan.
. The company plans to re-re-launch Orchid by end-2000. and is testmarketing Elka.
Simone Tata joined the company as director. Lakme started as a 100% subsidiary of Tata Group (Tomco). When Tata's saw a bigger growth potential in the retail market.that of skincare and cosmetic products. and went on to create Trent and Westside. and there was a very small market base. high consumer interest segments in the Indian Industry . owned by Unilever. At the time of its establishment. and went on to become its chairman. and greater competition from global companies in cosmetics. Half a century ago. as India took her steps into freedom. Armed with a potent combination of foresight. it was named after the French opera Lakmé. These include products for
. India's first beauty brand was born.Lakme's Profile
Lakmé is an Indian brand of cosmetics. Indian cosmetic industry was rather nacent. research and constant innovation. Lakme. they enetered into a 50-50 joint venture with Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever. Lakme has grown to be the market leader in the cosmetics industry. and arm the consumer with products to pamper herself from head to toe. In 1998 Tata sold of there stakes in Lakmé Lever to to HLL. Lakme tapped into what would grow to be amongst the leading. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. At a time when the beauty industry in India was at a nascent stage. for Rs 200 Crore (45 million US$).
Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGE for customer sales and your own use. face and skin. 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. eyes. self-financed and family owned. The Products LAKMÉ leading hair care products are developed exclusively for distribution to hair and beauty salons. and services like the Lakme Beauty Salons About LAKMÉ The Carreras family established LAKMÉ Cosmetics in 1997 and is independent. 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.the lips. Combine this with FREE ongoing in-
. Branding and packaging of the product range is first class and they are tested and manufactured solely for this brand name and no other. with freestanding display units highlighting the unique quality and variety of your products and enhancing the quality of your sales and service. The family has over 40 years of manufacturing experience in salon products. nails. The very best raw materials are used in manufacture using the latest technology and adopting the highest levels of hygiene.
and unveiled the company's new international logo and image.
. Sun Screen Lotion and Hair Remover. Calamine Lotion. Hemas Marketing was responsible for the distribution of Lakme Maximum Moisturiser and Lakme Deep Pore Cleansing Milk. the Indian cosmetics giant has expanded the range of skin care products it markets in Sri Lanka. Launched in Colombo earlier this month. Lakme's local distributor Hemas Marketing (Pte) Ltd. but not by yourself. pH-Balanced Face Wash. which the company will continue to market in new packaging.. Nourishing Body Lotion. Prior to the launch of these products. Lakme expands skin care products Lakme.salon education and you have the perfect basis to grow your business for yourself. has announced. the addition to the Lakme skin care range are the Lakme Nourishing Cold Cream.
it was an improvement over the more transparent. Revlon's first beauty item was nail enamel. Revlon's management team combines the creativity of a cosmetics and fashion company with the marketing. Opaque and long-lasting. by Charles Revson and his brother Joseph. product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world.a nail enamel unlike any before it the three founders pooled their meager resources and developed a unique manufacturing process. Revlon was founded in 1932. who contributed the "L" in the REVLON name. fragrance and personal care and is a leading mass market cosmetics brand. Almay®. Using pigments instead of dyes. sales and operating system of a consumer packaged goods company. excitement and innovation through quality products at affordable prices. dye-based products of
Revlon is a world leader in cosmetics. opaque nail enamel in a wide variety of shades never before available. Our vision is to provide glamour. New Complexion®. skin care. Charles Lachman. Revlon was able to offer to woman a rich-looking. Revlon's brands include Revlon®. ColorStay®. To pursue this vision. Our global brand name recognition. with our products sold in approximately 175 countries and territories. Revlon Age Defying®. along with a chemist. Ultima II® and Flex® and Charlie®. Starting with a single product .
a polish supplier to beauty salons for whom Charles Revson began to work as a sales representative in 1931. sales multiplied more than 40 times. Coupling this with his experience at Elka. the year the company incorporated as Revlon Products Corporation.246 in 1933. There was a sharp rise in sales to $11. Revlon's nail polish owed its superiority to the use of pigments. Revson decided to enlarge his market by retailing his nail polish through department stores and selected drugstores. Charles Revson and his older brother Joseph distributed Elka nail polish as Revson Brothers. 1932. At the end of 1934. New Jersey. Revlon was formed on March 1. By 1937. In that year.000.other manufacturers. He therefore targeted beauty salons as a market niche--a fortunate choice whose importance would grow. Lachman. This gave him access to more affluent customers as well as those with a moderate
. going into partnership with his brother and a nail polish supplier named Charles R. Within its first nine months. who contributed the "l" to the Revlon name.
Revlon had a keen fashion instinct. Initially. and dark red then available. in Newark. the revolutionary "cream enamel" came from the tiny Elka company. however. honed by his seven years of
sales experience at the Pickwick Dress Company in New York.055. the company had grossed $68. the company boasted sales of $4. which also allowed a wider color range than the light red. Within a year. medium red. Charles Revson decided to open his own nail polish company. he noted that the permanent wave boom was making beauty salons more popular and that demand for manicures was rising in tandem.
whose sponsorship of This is Your Life was providing serious competition for Revlon's lipsticks. too. Each promotion featured a descriptive color name to tempt the buyer.amount of money to spend on beauty products.5 million. "push" money given to demonstrators in stores without Revlon sales staff to insure full retail coverage. color cards showing the range of colors in the promotion. Revson was persuaded by the success of rival Hazel Bishop. Formulating a maxim he followed for the rest of his life. Returning interest in dress sparked the company's twice-yearly nail enamel and lipstick promotions. The Fire and Ice promotion for fall 1952 was one of the most successful. and radio endorsements written into scripts for performers such as Bob Hope and Red Skelton. and display cards reproducing or enlarging consumer ads. which were crafted in anticipation of the season's clothing fashions. Revson steered clear of cut-rate stores. selling his product only at premium prices. Packaging was designed specifically for each line. The company received its next boost from its 1955 sole sponsorship of the CBS television show The $64. Though initially reluctant to go ahead with this project. Attracting a weekly audience of 55
. which planned its November issue around the lipstick and nail enamel. These efforts produced excellent publicity and helped to raise 1952 net sales to almost $25.000 Question. Its features included the cooperation of Vogue magazine. Marketing strategy Postwar sales strategy. full-color spreads in fashion magazines. was influenced by increases in spending and department store credit sales.
Revlon introduced Charlie. 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.000 Question topped the ratings within four weeks of its debut. Revlon fragrances. as a result of the television show. advertised. Geared to the under-30 market.5 million.6 million one year previously. The $64. In 1973. had also become familiar to U. Mitchum joined the Thayer Laboratories subsidiary. sales of some products increased 500 percent.6 million. formerly Knomark. was the industry leader in all franchised retail outlets. An important 1970 acquisition was the Mitchum Company of Tennessee. Takeover strategy The 1970s began with annual sales of about $314 million. Charlie models in Ralph Lauren clothes personified the independent woman of the 1970s. The Cosmetics and Fragrances division.
.million people. from $33. Revlon also had a new line of wig-maintenance products called Wig Wonder. Charlie was an instant success. and net sales for 1955 grew to $51. and marketed. consumers.S. $7. such as Norell and Intimate for women and Braggi and Pub for men. its six lines separately aimed. makers of antiperspirants and other toiletries. Revlon's advertising budget for the year. proved Charles Revson's adage that publicity had to be heavy to sell cosmetics. a fragrance designed for the working woman's budget.
4 4 3 3 3 2 3 4
0.45 0.60 3.40 0.40 0.30 0.10 0.45 3.15 1
3 4 3 4 3 4 3 3
0.18 0.Strategy formulation framework
CRITICAL SUCCSES FACTOR PRICE WEIG HT 0.15 RATI NG 3 WEIGH TED SCORE 0.60
FINANCIAL POSITION CONSUME R LOYALTY ADVERTISI NG PRODUCT QUALITY INNOVATI ON MARKET SHARE MANAGEM ENT GLOBAL EXPANSIO N TOTAL
0.06 0.45 0.40 0.40 0.10 0.10 0.30 0.40 0.43 0.18 0.43
.20 0.10 0.30 0.45
RATI NG 4 WEIGH TED SCORE 0.15 0.
OBJECTIVES OF STUDY
To find out the impact of Lakme and Revlon informative Cosmetics consumer. To know the impact of various striking features on buyers behavior. To know various cosmetics product range in the market level for Cosmetic Products (Nail Enamels. To know the media access by consumers to know about Cosmetics Products. To study the effect of Consumer Satisfaction on the Products on the brand switching behavior of the
marketability of Cosmetic products. Shampoo). Lotions.
Twenty.One Depots spread across the country integrated through a single IT network. 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. Marketing Department comprising of seasoned professionals ever adaptive to market dynamics.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. Association with top of the line advertising agencies to communicate and connect its brands to the consumers. Technology Center Providing and maintaining the international quality that the consumer deservesQualified team of technologists and scientists endeavoring to adapt formulations. develop new products & packaging.
Revlon ads also recalled noticeably. Lakme dominates the category in consumer minds in a big way.
Advertising Recall Only Lakme ads recalled significantly by consumers at the unaided level. Brand Preferences Lakme is the only cosmetic brand getting significant brand recall at the unaided level. be it for brand recall or for intention to buy. Mid and Premium price range are the most preferred. Revlon a distant second on both counts. When prompted for cosmetics. more than half the consumers want Lipsticks the most.
. Nail Polish is a distant second. Revlon and L’Oreal recalled noticeably. Consumer Preferences of Cosmetics Toplines Buying Preferences Among cosmetics. Lakme ads dominate the top of mind ad recall among consumers.Well equipped laboratory to control and meet the international quality standards of our products. When prompted for cosmetics.
but nowadays.revlon etc. They have always been a part of the consumers product s game. People tend to offer just about any thing under the label “Free Gift Inside”. Infact. it’s almost like one can’t buy a tooth brush without having to tote a detergent bar home as well.2. Godrej. Infact. have resorted to
. The type of products offered as a promotional item range from a small ball pen to expensive electronic items. 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. making the offer far more cost effective. but a gift item which sells for five rupees might be sourced for just Rs.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. This frenzy has led to a deluge in the range of innovative products entering this market. the type of products entering the gifting and promotional category is simply mind-boggling and differ from product to product. 1. Five rupees off means five rupees less to the manufacturer. Philips. Marketing heads are exploring the effectiveness of each and every product as a gift to boost sales.
Large MNCs like the Levers. Value Perception could be one reason why this freebie strategy is more effective. the meaning of the term gift seems to have attained a wider meaning.
This trend is extensively practiced by the electronic industry. homes and free trips abroad. as one achieves better sales while the other achieves better exposure at a very nominal expense. 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. 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. There tends to be a small amount of exploitation of a few lesserknown brands in such exercises. This automatically tends to reflect a better sales volume as far as both the brands are concerned. Every second brand seems to be running a contest to actively involve the buyer in his brand. over 10 CDs free with a purchase of a sound system etc. The prizes given out by companies in contests range from gold.giving their own lesser known brands free with their popular brands and vice-versa. This acts as a mutual benefit for both the parties. The companies are tying up big celebs and running contests where the customer gets to
. The companies tend to save their promotional expenses and utilise the same to generate better sales in the respective brands. but every thing The latest trend as a promotional strategy that has set the marketing arena abuzz is contests. Such moves by these companies forced better-established brands like Onida etc. diamonds to cars.
capris. The companies are running extensive schemes for the dealers too. Recently Axe for it’s brand of deodorant ‘Vodoo’ actually booked a far away island in Kerela and held the longest dance party. skirts and shorts .dine with his favourite star on winning the contest. Bell ceramics had recently organised a largest party in the ceramics industry for their dealers at ‘Tikujini’s Wadi’. its time they returned some”. 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.and have it hit the Scullers Womens wear shelves. competitions etc. The dealers along with their whole family were invited to this party. for children. 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. Apart from luscious snacks there was a whole lot of entertainment activities like games. 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.
But at the end of the day what emanates as the greatest question is. 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. Thane.-No one would know except the horse himself
4. More promotional schemes should be introduced for customers. Timely feedback should be taken so that all the problems can be easily removed. 2. 3. 1. The company should provide good margin for distributorship. Customer satisfaction should be the ultimate aim so that customer complaints should be removal. Company should encourage solving the customer’s complaint.
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. 5. Promotion by local advertisement can also help in promoting Sales of the products.
3. The advantages which the products of Lakme Groups of Companies shares over other branded companies products are as follows. While other branded products are not preferred due to high price and brand loyalty. 4. Users of personnel & Health care products also generally prefer for buying the products of Revlon Groups of Companies. The products of Revlon Groups of Companies are preferred because of its low price and easily available. The products of Lakme Groups of Companies are easily available at easy payments and had a very good after sales retailer services. People who are more conscious about their health are more aware about products and therefore prefer the products of Revlon Groups of Companies. While other branded companies product are not preferred due to high price and brand loyalty. 1. The products of Revlon Groups of Companies are preferred because of its low price and easily available.
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. 2.
The average sales of Lakme & Revlon across South Mumbai markets
is 37. Like HLL.
. “Monthly survey should be conducted to improve its brand image and increase customer loyalty”.1%
respectively. Still there is a need to Promote Lakme to reach at the level of product like ponds.2 % respectively.CONCLUSION
The overall average sales of Revlon Products are 54.1% in all markets.2%
respectively.9% in all markets and Lakme Products are 45. NIVEA and Others. 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.
The average Sales across West Mumbai markets are 48.
The average sales across North Mumbai markets is 42. pears etc. The average sales in different markets are as follows :-
The average Sales Across East Mumbai markets are 50.9%
not fully but partially as advisory notes.co.com • www.revlon.BIBLIOGRAPHY
The essence of the report.lakmeindia.in
. listed in this chapter.
• www. are inspired and collected by these sources.