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Lakme (hitesh)

Lakme (hitesh)

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06/25/2013

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Research

Report

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Lakme

(A

Product of Hindustan Unilever Ltd)

CONTENTS
EXECUTIVE SUMMARY 1. INTRODUCTION 2. CRITICAL REVIEW OF LITERATURE 3. RESEARCH METHODOLOGY 3.1 OBJECTIVE OF THE STUDY 3.3HYPOTHESIS 3.3 RESEARCH DESIGN 3.4 SAMPLE DESIGN 4. INDUSTRY PROFILE 5. DATA,FINDING & ANALYSIS 6. RECOMMENDATION & CONCLUSION 7. BILIOGRAPHY 8. REFRENCES

Executive summary
About the project
Within a short span of the last five-six years, the use of cosmetics by Indian consumers has increased significantly with more and more women and men taking greater interest in personal grooming, increasing disposable incomes, changing life styles, influence of satellite television and greater product choice and availability. This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. The growing Indian cosmetics market offers promising prospects for international brands. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. Perfumes and fragrances, skin care, and hair care products are some of the major segments with promising prospects for U.S. companies. Penetration of most cosmetic and toiletries is very low in India. Current consumption of many products is well below that of many countries in Asia. The low market penetration of many cosmetics and personal care products offers room for growth. The urban population with increasing purchasing power is the major force driving demand for cosmetics and toiletries. India is a very price-sensitive market and mass-market products constitute the major

Max -45yrs) via through questionnaire for deeper insights. The challenge which the cosmetic industry has to break was the negative connotation of “being fashionable’’. has a share of approximately 10 percent.We also gauge into reasons that why Lakme’s position as market leader was threatened when international majors like Revlon and Maybelline entered the fray in the mid-90s. of which the U. India’s import of cosmetics and toiletries and intermediate raw materials is around US$ 120 million.which includes the response received from target audiences(Min age 19yrs.S.part of the cosmetics and toiletries market. shades.everyday. motivate and infuses confidence Colours .The research process was entailed by visiting lakme outlets in noida . Plan of the project Beauty is skin deep… and sure enough Lakme understand it like no one does .Though the brand missed out on during the past year despite having roped top brand ambassadors is that it scored low on promotional gauge. In the following project we basically seeks to provide experiential marketing solutions to a brand (Lakme) .Today brand lakme stand strong as one of the 100 most powerful brands and right fully so . CHAPTER 2.CRITICAL REVIEW OF LITERATURE . It’s a brand that inspire. have been the core attribute of the and tones to products. brushes beautify .for it’s ‘the’ brand that lights up the face of million girls .

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Significant focus is on sales counters. beauty advisors and dealer aids. Almost everyone has a Lakmé-something in their (cosmetics) collection. Lakme Lever ''Lakmé is at the forefront of product-innovation. .Below the line initiatives are extremely important in the cosmetic segment since the buying experience is as important as brand image and advertising.'' said Mumbaibased fashion choreographer Lubna Adams. We constantly integrate a lot of the above the line campaigns like 'Whose watching your lips' with below the line initiatives Anil Chopra. Business Head.

The Indian cosmetics industry is in churn. Even as the premium segment is getting crowded, the rural market is turning out to be the stronghold of smaller, regional players. Although stiff competition has emerged for Lakme Lever within the Rs 250-crore colour cosmetics market, it continues to lead. In the skincare market, estimated at Rs 700 crore, Lakme's market share averages 7-8 per cent. Catalyst spoke to Anil Chopra, Lakme Lever's Business Head.

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awareness of the western world and growing importance of beauty pageants. Of this. However. a 19th century opera written by Frenchman Leo Delibes. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. penetration of satellite television. accounting for around US$ 60 million of the market. The current size of the Indian cosmetic market is approximately US$ 600 million. from which Simone Tata borrowed the name Lakmé (French for Lakshmi.INTRODUCTION High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground. there have been significant changes and use of cosmetics is on the rise. Current per capita expenditure on cosmetics is approximately US$ 0.. increasing advertising. the fastest growing segment is color cosmetics. Even with a 20 percent average growth rate. the name of the priestess). They fall in love.. That's the story of Lakmé.65 in other Asian countries. the per capita consumption of cosmetics is very low in India. Her orthodox father vows vengeance. with changing lifestyles. .68 cents as compared to US$ 36. higher disposable incomes. 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.

L. Moisturizing lotions. while the market for nail enamels is estimated at around US$ 23 million. Godrej and Revlon. Mass-market products account for a major share. price and volume played an equal role in value growth. now bought over by Hindustan Unilever (HUL) of the Unilever group. The major players in this segments are Lakme. 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.S. Ponds. Within the last decade. this segment has seen many consumers slowly shift from the mass to the premium end of the market. and Revlon dominate the US$ 60 million color cosmetics market. Morison that markets the Nivea range of products in India. Penetration levels of international cosmetics brands in India are still low. a brand originally introduced by the Tata group of India. Tips & Toes. In the skin-care segment. Multinationals. Foreign brands currently . Lipsticks account for nearly a third of the market at US$ 21 million. followed by players such as J. Fair & Lovely of the HUL group with a 50 percent market share. Revlon of the U. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. another domestic player.Lakme. The skin care market in India is estimated at US$ 180 million. while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. The penetration rate is high in the skin-care segment as compared to color cosmetics. The color cosmetics segment is very competitive and has a high penetration level of 80 percent.

Urban women in the middle and upper income groups in the age range of 23-50 is the target group for international brands. several foreign companies reformulated price strategies to tap the large Indian middle class. 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. A major reason for low penetration of international brands can be attributed to high pricing. however. repeat purchases were not forthcoming and to retain their sales growth.constitute only 20 percent of the market. Chapter 3 RESEARCH METHODOLOGY The research is based on:- . These companies initially gained sales on their international brand image.

➢ Magazines ➢ ➢ ➢ ➢ ➢ Expectancy of Communication All these factors were the prime criterion for selecting (Which brand??).Primary Data 1) Questionnaire Secondary Data ➢ Internet ➢ Company Reports& Broachers Newspapers Articles &journals Data is also gathered by talking to the respondents (Target Audience. Also the level of :Brand awareness. understanding their beauty needs.what aspire them to go for the (lakme)brand. Price level. Visibility of brand personality. Objective . Short listing and ranking (level of trustworthiness? or most favoured ) which had helped us for identifying the winner in cosmetics industry.

Hypothetical testing can be viewed as a six steps procedure. Null hypothesis ( Ho) is used for testing. Second is Alternative hypothesis (HA) is alternative hypothesis is alternative hypothesis which holds that there has been a change. • Establish a null hypothesis • Choose the statistical test on the basis of assumption about the population distribution and measurement level • select the desired level of significance . 4 How can the brand retain its lost spot? HYPOTHESIS In the classical tests of significance. two kinds of hypothesis are used the null hypothesis and the alternate hypothesis.1 Help in building a positive association with people thereby enhancing brand personality 2 How to break the negative connotation of ‘’Being fashionable’’ 3 Why has Lakme missed out on promotional gauge despite roping in top brand ambassadors. It is the statement that no difference exists between the parameter and the statistic being compared.

In this report our null hypothesis and alternative hypothesis are stated below: • Ho: Respondents are satisfied with the quality of Lakme products. Ha: Respondents are not satisfied with the quality • Ho: Respondents are brand Loyal Ha: Respondents are not brand Loyal • Ho: Respondents prefer lakme Ha: Respondents do not prefer lakme • HO: Respondent are satisfied nor aware of new product range H: Respondent are not aware of new range. Non parametric tests do not require stringent assumptions about the population distribution and are less useful with less nominal and ordinal values.• Parametric and non parametric tests are applicable under various conditions like parametric operates with the interval and ratio data and are preferred when their assumptions can be met. • HO: Respondent do believe that endorsement by celebrity play any role in the decision making .

We have collected our data by drafting a questionnaire and thereby interpreted or analyzed or result by using the Microsoft excel. The most usual reason for using this approach is that you have no other choice. Research is exploratory when you use no earlier model as a basis of your study. The gradual process of accumulating intelligence about the object of study means also that it will be impossible to start by defining the concepts of study.HA: Respondent do not believe that endorsement by celebrity play an important role in the decision making RESEARCH DESIGN Our research is based on the Exploratory Study. Sample design . these provisional concepts then gradually gain precision. but there perhaps is none. Normally you would like to take an earlier theory as a support. You have to start with a preliminary notion of your object of study. or all available models come from wrong contexts. and of its context. Exploratory research means that hardly anything is known about the matter at the outset of the project. You then have to begin with a rather vague impression of what you should study. and it is also impossible to make a detailed work plan in advance. During the exploratory research project.

 The sampling procedure used to produce any type of sample  Sample size of 100 customers. Sample centre = Amity Girls hostel CHAPTER 4 COMPANY PROFILE .

that of skincare and cosmetic products. India's first beauty brand was born. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. high consumer interest segments in the Indian Industry . These . Lakme has grown to be the market leader in the cosmetics industry. Armed with a potent combination of foresight. Lakme tapped into what would grow to be amongst the leading.Half a century ago. and arm the consumer with products to pamper herself from head to toe. research and constant innovation. Lakme. At a time when the beauty industry in India was at a nascent stage. as India took her steps into freedom.

eyes. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty. Only. the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL. Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. nails. In 1998. Launched in 1952. renamed itself Trent and entered a different business (retail). face and skin. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty.include products for the lips. A brand that has over 5 decades talked of beauty is none other than Lakmé. and services like the Lakme Beauty Salons. A brand that has over 5 decades talked of beauty is none other than Lakmé. A little bit of Lakmé history: In 1995. it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. These ranges have been constantly innovated to bring . for this it has introduced a range of skincare products from 1987. Launched in 1952. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. for this it has introduced a range of skincare products from 1987.

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. Modi Revlon: ''The numbers say it all. are already slugging it out. Still. which targeted this segment. we have an 84 per cent share of the premium end of the colour cosmetics market. although complex. its aspirational colour cosmetics brand. Indeed. ranging from Revlon (through Modi Revlon) to Chambor. he says ORG-MARG does not have a representative sample of the 60.'' The positioning bit. 26.'' Chopra is quick to rubbish this claim. it is conceivable that Lakmé's new-found aspirational strategy could have been brought about by competitors like Revlon and Maybelline. According to ORG-MARG's retail audit. the company's nontransfer lip-colour range follows in the wake of Maybelline's launch of a similar range. Lakmé.specialized beauty care and complete the range for the definitive women. but that has been the result of our efforts to reposition and reintroduce the brand. 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. and its new nail-enamel colours come soon after Maybelline and Revlon launched their nail-enamel range. The .000 outlets through which colour cosmetics are sold in India. Says Meghna Modi. which also has a presence in skincare. Executive Director. is clear: Ponds is Lever's primary skincare brand.

'' SWOT ANALYSIS Of LAKME Strengths :  local brand of specific relevance to India.company's defense is that it takes at least 15 months from the conceptualization to the actual launch of products. well linked with business. . Lakmé has entrenched itself at the glamour-end. And fashion consultants like Meher Castelino believe the brand commands an edge at the high-end: ''By appropriating the fashion platform for itself.  Integrated supply chain and well spread manufacturing units. Access to Unilever global technology capability and sharing of practices from other Unilever Weaknesses : best  Ability to deliver Cost Savings.   Price positioning in some categories allows for low price competition.  Strong R&D capability.

Keeping skin looking healthy and glowing is also a part of looking great. . Upgrading consumers through innovation to new levels of quality and performance.  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. Lakmé provide the complete package with the skin care range and the wide range of colors to spice up the look. 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.   Building brand image by collaborating with top designers in Lakme Fashion week Threats :  Aggressive price competition from local and multinational players. To add to this vast repertoire is a range of specialized skin care products for the discerning women.

Lakme Lakmé Shimmer Eye Cube: Nails True Wear Nail Enamel -Nail Enamel with Lacquer-like finish.Starshine Lipgloss . Perfecting Definition Lip Pencil .a wide range of products are on offer to create the perfect eyes. lips.Lakmé Perfecting liquid Foundation Lakmé Radiance Compact . Eyes From dramatic to natural look. Lame Insta Eyeliner eyelids 3. Lakmé Flawless Matte Complexion Compact Lips Lakmé Enrich Lipcolor . Face Lakmé Daily Wear Soufflé . Lakmé Kajal: 2. Contains resins and silicone with colour lock technology that gives brilliant long lasting shine . eyes and nail segment for the beauty aficionados. Lakme offers a range of products in the face. 1.Glosses in lustrous shades available in 14 shades..Lakme products Colours From the spicy shades to the flattering look.

Lakmé Fundamental Peach Milk Moisturiser skin. . Lakmé Fundamental Winter Care Lotion Sun Protection The range comprises of lotions to keep your skin healthy and younger looking.Skin For radiant skin Lakmé is there to pamper your skin with specialized products for the diva in you. 2. Lakmé Fundamental Deep Pore Cleansing Milk Moisturizing 1. Cleansing Strawberry Silk Splash Face Wash .

CHAPTER 5 INDUSTRY PROFILE Hindustan Unilever Limited Chairman: Harish Manwani CEO and Managing Director: Douglas (Doug) Baillie Director. Sundaram . Finance and IT: D.

formerly Hindustan Lever Limited . They strive to meet everyday needs of nutrition. and Rexona. the non-executive chairman of the board.. HLL follows its parent company’s mission to “add vitality to life”. In addition to the FMCG segment. as well as the ice cream brand Kwality Wall's. soap. shampoos and hair coloring brands including Sunsilk Naturals and Clinic. It is Fast-Moving Consumer Goods (FMCG) Industry that includes detergents. HUL has developed a line of food items. primarily under the Kissan and Knorr Annapurna brands.000 employees are headed by Harish Manwani. and get more out of life”. VISION To earn the love and respect of India. Liril. Pear's. HUL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand. shampoo deodorant. skin care brands Fair & Lovely and Pond's. STRATEGY . Breeze. look good. and personal care products that help people “feel good. is India’s largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai India and its 41.Hindustan Unilever Limited (abbreviated to HUL). hygiene. The company's cosmetic line is led by the Lakme brand. and other personal care items. HUL's toothpaste. by making a real difference to every Indian. and oral care brands Pepsodent and Close-Up. Lifebuoy. and cosmetics personal care brands include soap brands such as Lux. Dove.

Beyond its pioneering work FMCG distribution. HLL has enabled an even further level of personalization and brand . and self-service. structurally. and logistically. New initiatives include raising brand visibility through in-store promotions. store-based product facilitators.• Grow ahead of the market by leading market development Activities Leverage positive impact of growing Indian economy on consumer spending • • Grow a profitable foods and Top end business • Grow the bottom-line ahead of top line Strong commitment to sustainable development DISTRIBUTION With respect to distribution related activities like sales and marketing. the company has sought to instill in its customers an elevate sense of brand experience while simultaneously providing greater and more varied access to its products as well as improved clarity to its communications. HLL is second to none in pushing the boundaries of what is possible financially.

Hindustan Unilever – Present Scenario • 15. having amassed an army of consultants 250.3 Mln Outlets • Direct Coverage 1 Mln outlets .000 strong with access to 80 % of city dwelling Indians.000 suppliers & associates • 75 Manufacturing Locations • Total Coverage 6.experience in the direct sales arena with its groundbreaking Hindustan UniLever Network.000 employees • 1.200 managers • 2.

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The Shahnaz and the Biotique brands dominate the premium herbal cosmetics segment in India. 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. . Of this. the fastest growing segment is color cosmetics. estimated at USD 100 million.Market Overview The current size of the Indian cosmetic market is approximately US$ 600 million. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume.

Wella. Elizabeth Arden. International brands cater to a segment that can broadly be classified as the urban higher income group. Yardley. the Indian market is getting enlarged and many players are coming out with cosmetic products especially skin care products for men. The growing demand for men's cosmetics have made many direct selling companies such as Modicare and Amway to launch new products for men. The market size of men's personal care segment is estimated at approximately US$ 165million. In the last five/six years. Lancome. Laurent and Japanese cosmetics company. Morison and HLL. Rochas. which has deterred average Indian consumers.. Schwarzkopf. L'Oreal. Escada. Chambor. L'Oreal. Nina Ricci. perfumes and other cosmetics and toiletries. Revlon. The prices of most foreign brands have been fairly high. Yves St. Burberrys. Market Trends Cosmetics and toiletries are not just the domain of women any longer and Indian men too are increasingly taking to the use of more and more body sprays. Shiseido have entered the Indian market. With rising demand from men.L. Christian Dior. Other major players in this segment include Godrej. Cartier. there has been a renewed craze for herbal cosmetic and personal care products. especially in the skin care . Coty. J. Oriflame. many international brands like Avon. Since liberalization. with Gillette having the largest market share. Estee Lauder. Calvin Klein.

The advent of satellite television and awareness of the western beauty and fashion world. Poor assessment of the size of the upper middle and high-income groups. Biotique. Many had to rework price strategies towards the mass segment. customs and cultures in India Import Market Costs for importing products are much higher than producing it in the country. Most foreign cosmetics companies selling premium brands have had a difficult time developing the low volume premium market in India. and price sensitivity even within these groups. had added to their problems. The urban population in the major cities with increasing purchasing power is the main force that drives demand for various cosmetic products in India. Shehnaz Hussain. This makes imported products very expensive for most consumers.2 percent. . advertisements and promotions.segment with the growing belief that chemical-based cosmetics are harmful. and Lotus Herbals are the major players in this segment. Price is not the only reason responsible for their problems. India allows entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39. increasing number of women joining the work force is changing preferences. Many companies also expanded their range to include herbal variants..

which has been traditionally a stronghold of a few major Indian players like Lakme. 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. and Ponds has seen a lot of foreign entrants to the market within the last decade.According to estimates of industry experts and trade publications. and Australia. many cosmetic and toiletries companies launched their products in smaller pack sizes to make them more affordable. . Revlon introduced its small-range of 8 ml nail polishes and lipsticks. Europe. and was soon followed it its strategy by major Indian companies as well. Competition The Indian cosmetic market. Netherlands. like US. mainly France. and Japan account for rest of the share. Italy. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time. India is a very price sensitive market and the cosmetics and personal care product companies. China. India's Countries annual imports of cosmetics and toiletries and intermediate raw materials is approximately US$ 120 million. HLL and Revlon were the first to introduce small pack sizes. Germany. and Spain account for the major share.

Beauty counselors or advisors at retails outlets have been very successful in gaining attention. . constant product innovation and quality improvement. sunscreen lotions. Some companies such as Lakme have even set up exclusive Lakme beauty parlors at major cities in India through the franchisee route . creating product awareness and overcoming consumers lack of familiarity with. In the skin-care segment. A strong brand promotional campaign.Stiff competition in the cosmetics and toiletries market also saw an increase in the range of new products being introduced for newer application concepts in the last few years. L'Oreal markets its range of specialized hair care products exclusively through salons and beauty parlors. and many more. there has been a upgrade to valueadded products such as under-eye wrinkle removing creams. dark circle removing creams toners. and fears about many cosmetics and personal care products such as home hair permanents and color cosmetics. and the ability to provide a variety of quality products are some of the major reasons for the success of most companies. from just creams and moisturizers. L'Oreal currently is the only company in the market that has a hair color range tailored exclusively for parlors.. . good distribution network. fairness creams.

lipsticks and nail polish. The fastest growing market is however color cosmetics. The Indian skin-care market is not yet fully tapped and offers promising prospects as a growth area. The urban market itself for specialized cosmetic products remains to be fully exploited. which account for US$ 60 million of the total market. Major domestic players have also not been able to penetrate this market. a dominant player like Lakme have embarked upon a business plan to establish their . The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. Sales Prospects The growing Indian cosmetics market offers promising opportunities for international brands. The most promising segments for international companies to pursue are perfumes and fragrances. shampoos. is currently India's largest cosmetics and personal care products producer and its brands has the dominant share (more than 50 percent) in segments such as personal wash.HLL. skin care. Penetration of color cosmetics is lower than the penetration prospects of the skin-care segment. To promote the growth of their products. and specialized/professional skin care and hair care products. The rural market in India for cosmetics and toiletries remains is largely untapped.

as mentioned earlier offers skin care advise through touchscreen kiosks. There is a marked shift among consumers from functional common-fits-all products to more specialized formulations. Market Access Prior to March 31. previously perceived by many as harmful to skin. This regulation has now been done away with and. India had cosmetics and toiletries on its restricted list of imports and a special import license was required for import of cosmetics and toiletries into the country. This is one of the reasons why an increasing number of cosmetic companies are dealing with consumers directly through special exclusive counters in major departmental stores and malls featuring their own beauty consultants. permits import of . L'Oreal India has established a consumer advisory unit and Ponds. Other key issues regarding sales prospects are product variety and retailing strategies as well. and telephone help-lines.exclusive franchised beauty salons across major metros in the country. Indians generally perceive foreign brands as being of superior quality. India today. 1999. Imported cosmetics have had a major impact on the Indian market. Foreign products have enhanced growth of the Indian market by attracting aspirational consumers and increasing acceptance of color cosmetics.

07 is 39. Certain high . which even though has been scaled down over the past few years is still very much on the higher side. but not necessarily cheaper. The total import duty rate on cosmetics and toiletries classified under HS Code 33.end products just do not sell in India because the final price to bring it into India is too high for consumers to pay.cosmetics and toiletries without any restrictions. Chapter 6 Questionnaire . The high duties cause imports to be price uncompetitive.03 to 33. This has made the Indian market more attractive to foreign cosmetic companies.20 percent. Imports have been made easier.

Q) Do lakme provides Quality Products? Q) Are You Brand Loyal to Lakme? .

Q) For what purpose You use lakme products ? Q)What do you think about the price level of Lakme products ? Q)If not Lakme then which Other brand ? .

Q) Do celebrity endorsements in advertisements attract you towards Lakme products ? Q)What inspire you to go for any cosmetic product? .

Q)What changes you would like to see in the Lakme products? CHAPTER 7FINDING & ANALYSIS .

Hypothesis Testing using Chi Square Overall Satisfaction .

48 χ2=40.25 12.1 Table value=9.96 Table value=3. So the Ho is rejected.8 0 61.25 11.8 {(Oi- Loyalty Satisfaction level Loyal Not a loyal Observed(O) Expected(E) (Oi-Ei)2 18 82 50 50 1024 1024 χ2 {(Oi- Ei)2 /E } 20.χ2=86.84 Since the table value is less than the χ2. 16 20 55 5 4 20 20 20 20 20 16 0 1225 225 256 χ2 Ei)2 / } 0. Observed(O) Expected(E) (Oi-Ei)2 Satisfaction level Excellent Good Average Poor Neutral/Cant Say So the Ho is rejected.49 Since the table value is less than the χ2. Advocasy .48 20.

So the Ho is rejected.56 Table value=3. Advertising/Communication effect Communication Observed(O) level Effected Not at all 17 83 Expected(E) 50 50 (Oi-Ei)2 1089 1089 χ2 {(Oi-Ei)2 /E } 21.78 21.78 χ2=43.Satisfaction Observed(O) Expected(E) 50 50 (Oi-Ei)2 100 100 χ2 2 2 {(Oi- level Recommend 40 Will Not 60 recommend Ei)2 /E } χ2=4 Table value=3.84 Since the table value is less than the χ2.84 Since the table value is less than the χ2. So the Ho is rejected. Price Level .

in the short-term.333 24. It can proved to very detrimental. have been a better strategy.33 33. ✔ .0889 802. Satisfaction level High Low Optimum Observed(O) Expected(E) (Oi-Ei)2 30 5 65 33. “Some sort of an alliance or co-branding with the salons that already exist may.33 33.9889 χ2 {(OiEi)2 /E } 0.99 Since the table value is less than the χ2.33 11.09 So the Ho is rejected. CHAPTER 8 RECOMMENDATIONS ✔ ✔ Promotions beyond fashion week The brand should not lose its focus away from cosmetics. For vast reach unlikely.08 30.5889 1002. perhaps.503 Table value=5.χ2=54.

000 types of cosmetic products in the . 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. it has not been communicated well enough. This would be the major cause of lose of market share in the country. with a growth rate of 13% annually.✔ The general perception is that company-owned salons are expensive. The local cosmetics and toiletries market is valued at approximately RM3 billion or about US$800 million. CHAPTER 9 –CONCLUSION Since the Null hypothesis is rejected therefore it states that the customers are not satisfied well with the lakme products . It is estimated that there are more than 60. Though Lakme beauty salons are reasonably priced.

are very common. Samples of toiletries products are distributed to individual households and products in sachet form are attached to magazines. perfumes. the market is saturated with many different types of products. and in the long run. . According to the industry. established brands that emphasize quality and service will have the edge. mainly for products such as shampoo and conditioners. France. especially women’s magazines.local market. Singapore and Japan dominate the market. and cosmetics. in order to create an awareness of new products and build brand loyalty among consumers. the United States. Advertising and promotion is crucial for cosmetics and toiletries products. other hair care products. The local cosmetics and toiletries industry generally involves mixing and formulation processes. Many of these companies are contract manufacturers. using imported ingredients. Free gifts are given during promotion periods and are advertised in the local major newspapers and on the web. Advertisements in TV and the print media such as newspaper and magazines. . Imported products from Thailand.

. Business research methods . edition 2005 • Tata Mc graw-Hill Edtion .P Gupta . prentice hall of India . K Sharma . 2005 • S. Business Statistics. J.BIBLIOGRAPHY • Kotler Philip . Donald R. Schindler. Keller Lane Kevin marketing . 14th edition .Cooper . Pamela S. 2005 • Business Statistics .

com www.hindubusinessline.com www.lakmeindia.com .com • www.References • • • • www.com www.financialexpress.economictimes.hll.

Annexure Questionnnaire Market Survey For Lakme Products Name Age Sex Address : : : : State/Province: Contact No. : .

For Which Purpose you usually use Lakme Products ? ○ Eyes .1. Do you Think Lakme provides quality Products to its customers? ○ Yes ○ No ○ Can. What inspire you to go for Lakme ? ○ Colour/Shades ○ Price ○ Packaging ○ Versatility ○ Others 2. Are You Brand Loyal to Lakme or you Switch To others too.? ○ Yes ○ No 3.t Say 4.

What do you think about the price level Of Lakme products? ○ High ○ Optimum ○ Low . According to you what kind of promotional activities can make Lakme reach customers in a better way which can increase there market share ? ○ Lucky Draws ○ Free Bonanza ○ Free sample Distibutions ○ Discount Coupons ○ Others 6.○ Lip Colour ○ Face ○ Nail Enamel 5.

7. then which other brand? ○ Revlon ○ Oriflame ○ Blue Heaven ○ L’Oreal ○ Lissome ○ Others 9. From Where do you purchase your product ? ○ Departmental store ○ Cosmetic stores ○ Drug/Pharmacy ○ Supermarket ○ Beauty Salon ○ Others 8 If not Lakme . How would you rate the Lakme products ? ○ Good . Are you aware of the new range of Lakme Products? ○ Yes ○ No 10.

○ Very Good ○ Poor ○ Average ○ Can’t Say 11. What changes you would like to see in the Lakme products? ○ More product range ○ More shades ○ Better packaging ○ All of the above 13. Do the Celebrity Endorsements in the Advertisements attract you towards the product ? ○ Yes ○ No 12. Will you Recommend Lakme products to Others ? ○ Yes ○ No .

Lakme. At a time when the beauty industry in India was at a nascent stage. and services like the Lakme Beauty Salons. In 1998. Lakme has grown to be the market leader in the cosmetics industry. Armed with a potent combination of foresight. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. research and constant innovation. eyes. nails. Lakme tapped into what would grow to be amongst the leading. face and skin. A little bit of Lakmé history: In 1995.Case Study Lakme (A Brand of Hindustan Unilever Ltd. India's first beauty brand was born. as India took her steps into freedom. Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. These include products for the lips.that of skincare and cosmetic products. and arm the consumer with products to pamper herself from head to toe.) Half a century ago. high consumer interest segments in the Indian Industry . Lakmé sold its brands (and the 50 per cent it owned in the JV) to .

Only. Lakmé is all about setting trends and dominating the fashion arena. today. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty. . the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future.HLL. Launched in 1952. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. for this it has introduced a range of skincare products from 1987. 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. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. Launched in 1952. A brand that has over 5 decades talked of beauty is none other than Lakmé. A brand that has over 5 decades talked of beauty is none other than Lakmé. for this it has introduced a range of skincare products from 1987. renamed itself Trent and entered a different business (retail). With a unique blend of understanding of women of all ages.

shampoos and hair coloring brands including Sunsilk Naturals and Clinic. formerly Hindustan Lever Limited . shampoo deodorant. the non-executive chairman of the board. It is currently headquartered in Mumbai India and its 41. Dove. Breeze. and Rexona. toothpaste. and cosmetics HUL's personal care brands include soap brands such as Lux. HUL has developed a line of food items. soap.000 employees are headed by Harish Manwani. It is Fast-Moving Consumer Goods (FMCG) Industry that includes detergents. Lifebuoy. The company's cosmetic line is led by the Lakme brand. Pear's. skin care brands Fair & Lovely and Pond's. Lakme Going Global ? If the company manages to scale up the brand and increase its consumption within India. primarily under the Kissan and Knorr Annapurna brands. and oral care brands Pepsodent and Close-Up. HUL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand. as well as the ice cream brand Kwality Wall's.Hindustan Lever’s Lakme Lever Lakme is the brand of Hindustan Unilever Limited (abbreviated to HUL). Liril. is India’s consumer products company and was formed in 1933 largest as Lever Brothers India Limited. there are strong indications that Lakme could leverage Unilever’s global reach on the back of the Anglo- . In addition to the FMCG segment. and other personal care items.

Dutch major’s priorities on personal care and D&E (developing and emerging markets) Given Lakme’s service sector lineage. Elle 18's main competitor in the youth-based cosmetics market was Tips & Toes. Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers. this division of HLL was focusing on Lakme.services. Elle 18. a brand that is almost non-existent today. "In the first three years. Elle 18. The company has Unilever Foodsolutions which works with customers including caterers. Pricing With a pricing that is almost one-third that of Lakme. Reviving Of Lakme’s Brand Lakme Lever had revived its youth-oriented brand. of late. . has also unleashed a campaign based on its products. restaurateurs and major hotel and fastfood chains to create food solutions that help grow their business. Having put the brand on `maintenance' mode." said Mr Chopra. At that point of time. the business model could benefit from what is perceived to be Unilever’s proposed area of interest for the future . Launched in 1998. Elle 18 targeted the first-time cosmetic user and currently sports two product lines comprising lipsticks and nail enamel.

" said Mr Chopra. Lakme Lever continues to innovate for its existing range of skincare and colour cosmetics under the Lakme brand. . Meanwhile. "While there is no new product. The brand has been growing at a lower rate than Lakme. "With a small base. So. while a Lakme Lipstick would have an MRP of Rs 165. While Lakme has been high on innovation. It recently relaunched its skincare range under the name of Lakme Fundamentals." Mr Chopra said. our salon business has been growing the fastest. In colour 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. There are plans to have 100 Lakme salons by the end of the year from the existing 92 salons across the country. "The overall beauty market has been growing between 15-20 per cent but we have been growing higher than the market. it is the salon business that has been registering the highest growth rates for Lakme Lever. we will be upgrading the existing skin care range with new formulation and packaging." However." Mr Chopra said. Elle 18 has been on maintenance mode. But now we are now relooking at Elle 18 as there is still no brand that is so sharply positioned on the youth platform."There was a change in our strategy in the past. There was a conscious price differential between the brands to attract the first generation users of cosmetics.

in the short-term. have been a better strategy. it has not been communicated well enough. For vast reach unlikely. Recommendations ✔ Promotions beyond fashion week ✔ The brand should not lose its focus away from cosmetics. perhaps. • May loose its Sheen in a long run. It can proved to very detrimental.Besides. Problems • Increasing Competition • Low Rating of lame Salons (not so good customer services) • No new Strategies to look for improvements. Though Lakme beauty salons are reasonably priced. . “Some sort of an alliance or cobranding with the salons that already exist may. Lakme Lever intends consolidating its hair care portfolio launched last year under the Lakme Hair Next brand. ✔ ✔ The general perception is that company-owned salons are expensive.

With a unique blend of understanding of women of all ages.understands the importance of maintaining and accentuating a women¶s natural beauty. it offered a range of cosmetics with nail polishes & lipsticks from the early 80¶s. Lakmé is all about setting trends and dominating the fashion arena. for this it has introduced a range of skincare products from 1987. A brand that has over 5 decades talked of beauty is none other than Lakmé. for this it has introduced a range of skincare products from 1987. Lakmé also understands the importance of maintaining and accentuating a women¶s natural beauty. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. today. . Launched in 1952. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women.

Breeze. there are strong indications that Lakme could leverage Unilever¶s global reach on the back of the Anglo- . The company's cosmetic line is led by the Lakme brand. and oral care brands Pepsodent and Close-Up.Hindustan Lever¶s Lakme Lever Lakme is the brand of Hindustan Unilever Limited (abbreviated to HUL). shampoo deodorant. Lifebuoy. It is Fast-Moving Consumer Goods (FMCG) Industry that includes detergents. In addition to the FMCG segment. toothpaste. primarily under the Kissan and Knorr Annapurna brands. and other personal care items. soap. Lakme Going Global ? If the company manages to scale up the brand and increase its consumption within India. as well as the ice cream brand Kwality Wall's. Dove. Liril. HUL has developed a line of food items. and cosmetics HUL's personal care brands include soap brands such as Lux. Pear's. is India¶s consumer products company and was formed in 1933 largest as Lever Brothers India Limited.000 employees are headed by Harish Manwani. It is currently headquartered in Mumbai India and its 41. the non-executive chairman of the board. formerly Hindustan Lever Limited . and Rexona. skin care brands Fair & Lovely and Pond's. shampoos and hair coloring brands including Sunsilk Naturals and Clinic. HUL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand.

Dutch major¶s priorities on personal care and D&E (developing and emerging markets) Given Lakme¶s service sector lineage. restaurateurs and major hotel and fastfood chains to create food solutions that help grow their business. At that point of time. this division of HLL was focusing on Lakme. Elle 18's main competitor in the youth-based cosmetics market was Tips & Toes. the business model could benefit from what is perceived to be Unilever¶s proposed area of interest for the future . a brand that is almost non-existent today." said Mr Chopra.services. . Having put the brand on `maintenance' mode. Elle 18 targeted the first-time cosmetic user and currently sports two product lines comprising lipsticks and nail enamel. Elle 18. Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers. The company has Unilever Foodsolutions which works with customers including caterers. Reviving Of Lakme¶s Brand Lakme Lever had revived its youth-oriented brand. Launched in 1998. "In the first three years.

"There was a change in our strategy in the past. Elle 18. But now we are now relooking at Elle 18 as there is still no brand that is so sharply positioned on the youth platform. has also unleashed a campaign based on its products. Elle 18 has been on maintenance mode. While Lakme has been high on innovation. Meanwhile. There was a conscious price differential between the brands to attract the first generation users of cosmetics. So. In colour 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. an Elle 18 Lipstick was pegged at Rs 55. Lakme Lever continues to innovate for its existing range of skincare and colour cosmetics under the Lakme brand. we will be upgrading the existing skin care range with new formulation and packaging. of late." Mr Chopra said. The brand has been growing at a lower rate than Lakme. . while a Lakme Lipstick would have an MRP of Rs 165.Pricing With a pricing that is almost one-third that of Lakme. "While there is no new product." said Mr Chopra.

Besides."The overall beauty market has been growing between 15-20 per cent but we have been growing higher than the market. Lakme Lever intends consolidating its hair care portfolio launched last year under the Lakme Hair Next brand. There are plans to have 100 Lakme salons by the end of the year from the existing 92 salons across the country. y May loose its Sheen in a long run. It can proved to very detrimental. have been a better strategy. Recommendations  Promotions beyond fashion week  The brand should not lose its focus away from cosmetics. in the short-term. . perhaps." However.  For vast reach unlikely. "With a small base. it is the salon business that has been registering the highest growth rates for Lakme Lever. ³Some sort of an alliance or cobranding with the salons that already exist may. our salon business has been growing the fastest. Problems y Increasing Competition y Low Rating of lame Salons (not so good customer services) y No new Strategies to look for improvements." Mr Chopra said.

. The general perception is that company-owned salons are expensive. Though Lakme beauty salons are reasonably priced. it has not been communicated well enough.

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