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COMPARATIVE STUDIES BETWEEN LAKME AND REVLON WITH THE REFRENCE OF THEIR PRODUCTS
SUBMITTED IN THE PARTIAL FULFILLMENT TOWARDS THE AWARD OF B.B.A (Gen.), 3rd SEM BATCH : 2010-2013
DR. BHIM RAO AMBEDHKAR University ARYAN INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES Sector 13, Avas Vikas Colony,Agra
Faculty Guide Submitted by: MRS. APARNA PORWAL HONEY AGARWAL
DR.BHIM RAO AMBEDKAR UNIVERSITY, AGRA
CERTIFICATE Certified that Ms. Honey agarwal of Aryan institute of management of computer studies has submitted her project report entitled “COMPARATIVE STUDIES BETWEEN LAKME AND REVLON WITH THE REFRENCE OF THEIR PRODUCTS” under the guidance of Mrs. Aparna Porwal. After completion it successfully in the fulfillment of requirement for the award of degree of bachelor of business administration of “Aryan institute of management of computer studies”.
Dr. S.K.Gupta AJAY SHARMA (Director) (Head of dept.) (AIMCS)
I HAVE GREAT PLEASURE IN PRESENTING MY PROJECT ENTITLED LAKME AND REVLON. I TAKE THIS AN OPPORTUNITY TO EXPRESS MY DEEPEST GRATITUDE & INEPTNESS TO ALL THOSE WHO CONTRIBUTED INDIRECTLY THEIR VALUABLE TIME & ASSISTED ME IN MY PROJECT. I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL THE FACULTY MEMBERS. FOR THIS APPROVAL & ALSO FOR HER VALUABLE GUIDANCE & SUPPORT REVLON. IN COMPLETING STUDIES MY PROJECT LAKME OF AND COMPARATIVE BETWEEN
LAST BUT NOT THE LEAST I WOULD LIKE TO EXPRESS MY SINCERE THANKS TO THOSE WHO DIRECTLY & INDIRECTLY HELPED IN THIS PROJECT. 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 Research Methodology Data Analysis & Interpretation Suggestions and Recommendations Summary & Conclusion Appendix Questionnaire .
The growing Indian cosmetics market offers promising prospects for international brands. increasing disposable incomes. 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. 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. The growth rate in the cosmetics market reflects an . changing life styles. influence of satellite television and greater product choice and availability. Bibliography INTRODUCTION Within a short span of the last five-six years. With the demand for cosmetics on the rise and the opening up of the market to foreign companies.
skin care. of which the U.S.increasing demand for beauty care products in India. India’s import of cosmetics and toiletries and intermediate raw materials is around US$ 120 million. Industry sources estimate a rapid growth rate of 20 percent per annum across different segments of the cosmetics industry reflecting an increasing . India is a very price-sensitive market and mass-market products constitute the major part of the cosmetics and toiletries market. The Indian toiletries market is well developed and dominated by major multinational companies and a few large Indian players. Perfumes and fragrances. accounting for around US$ 60 million of the market. the fastest growing segment is cosmetics. particularly focused on the Lakme and Revlon products Market Overview The current size of the Indian cosmetic market is approximately US$ 600 million. The objective of the study report is to analyze the consumer satisfaction level of different brands. The urban population with increasing purchasing power is the major force driving demand for cosmetics and toiletries. The low market penetration of many cosmetics and personal care products offers room for growth.S. 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. and hair care products are some of the major segments with promising prospects for U. Of this. companies. has a share of approximately 10 percent.
with the boom in the Indian fashion world and the growth in the television industry. with changing lifestyles. Revlon of the U. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. Multinationals. However. and Revlon dominate the US$ 60 million color cosmetics market. a brand originally introduced by the Tata group of India. the per capita consumption of cosmetics is very low in India.65 in other Asian countries. there have been significant changes and use of cosmetics is on the rise. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. increasing advertising. Mass-market products account for a major share. men and young women. Nail enamels and lipsticks account for around 65 percent of total color cosmetic sales in India. Even with a 20 percent average growth rate. Current per capita expenditure on cosmetics is approximately US$ 0. awareness of the western world and growing importance of beauty pageants. penetration of satellite television. now bought over by Hindustan Lever (HLL) of the Unilever group. while the premium segment accounts only for a mere . Lakme. another domestic player. there has been a rise in demand for professional beauty care products. Cosmetics constitute the high growth segments. Also. higher disposable incomes. Tips & Toes.68 cents as compared to US$ 36.demand for all kinds of beauty and personal care product. Cosmetic companies in India are placing increasing emphasis on market research and targeting new market segments such as teenagers.S.
Many had to rework price strategies towards the mass segment. . Most foreign cosmetics companies selling premium brands have had a difficult time developing the low volume premium market in India. The color cosmetics segment is very competitive and has a high penetration level of 80 percent. Most other cosmetic products are estimated to be used by less than 40 percent of the consumers. perfumes and other cosmetics. With rising demand from men. 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 market is getting enlarged and many players are coming out with cosmetic products especially skin care products for men. while the market for nail enamels is estimated at around US$ 23 million. Lipsticks account for nearly a third of the market at US$ 21 million. and price sensitivity even within these groups. had added to 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. This makes imported products very expensive for most consumers. Price is not the only reason responsible for their problems. Poor assessment of the size of the upper middle and high-income groups.9 per cent in lipsticks and 5 per cent in nail enamels.2 percent. Import Market Costs for importing products are much higher than producing it in the country.
stimulating . 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. 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.Competition The Indian cosmetic market. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time. Revlon introduced its small-range of 8 ml nail polishes and lipsticks. India is a very price sensitive market and the cosmetics and personal care product companies. 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. many cosmetic companies launched their products in smaller pack sizes to make them more affordable.It stipulates that any business should be organized around the marketing function. 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. The concept puts the consumer both at the beginning and the end of the business cycle . anticipating. and was soon followed it its strategy by major Indian companies as well. Lakme and Revlon were the first to introduce small pack sizes.
Drucker. the consumer is the focal point of the business. The concept enables the firm to look at the nature and missions of its business fron the point of view of consumer. and treat him as the pivot around the entire business has to be built.and meeting customer’s requirements. In other words. converts economic resources into wealth. The concept enjoys on the firm to accept ‘the consumer as he is’. It is the customer who determines what a business is. the concept translated into practice.with all his inherent contradictions. When a firm adopts Marketing Concept . Features of the Marketing Concept (1) Consumer Orientation An overwhelming emphasis on the consumer and his need is the first distinguishing feature of the Marketing Concept. . the textbook idea of ‘consumer sovereignty’. The customer. not the corporation has to be the centre of the business universe.” The purpose of any business is to generate a customer. Only the Marketing Concept is capable of keeping the organization free from marketing myopia. The importance of the consumer as per marketing concept can be seen clearly in the words of Peter F. things into goods. through being wiling to pay for a good or services. A business cannot succeed by supplying products and services that are not properly designed to serve the needs of the customers. It is the customer and he alone who.
not an end in itself. The Marketing Concept emphasizes that it is not enough if a firm has consumer orientation. In organizations that do not practice integrated management. It is the of fulfilling the needs of the consumer. the different functions and department of the organizations are preoccupied with the optimization of their specific activities . it is essential that such an orientation leads to consumer satisfaction. In organization that pratises integrated management. And for this is to happen. And this leads to the third major feature of the Marketing Concept.often at the cost of optimization of overall result. is a means. keeping marketing as the pivot. (3) Consumer Satisfaction Integrated management action as explained above. This is the essential because every function has the bearing on the consumer and the aim is to see that all the functions lead to the favorable impact on the consumer. all functions have to be integrated and properly aligned with marketing. Namely consumer satisfaction. the management insists on the absolute coordination of all company actions keeping marketing/customer as the focus. The concept .(2) Integrated Management Action The second major feature of the Marketing Concept is Integrated Management Action. Integrated management action simply means that all the different functions of the business Must b tightly integrated with one another.
"In the first three years. MARKETING STRATEGY To strongly position the brand on the youth platform 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. Elle 18's main competitor in the youthbased cosmetics market was Tips & Toes. said: "We are relooking at the Elle 18 brand. this division of HLL was focusing on Lakme. Speaking to Business Line. Elle 18. Having put the brand on `maintenance' mode. Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers." Launched in 1998.underscores that no firm can afford to ignore the satisfaction of the consumer. At that point of time. Vice-President." said Mr Chopra. it counters the temptations of short-sighted attitudes towards consumer satisfaction. . a brand that is almost nonexistent today. Mr Anil Chopra.
an Elle 18 Lipstick was pegged at Rs 55. has also unleashed a campaign based on its products. In color cosmetics it has roped in designer Sabyasachi Mukerjee to unleash the `Free Spirit' range as part of its winter collection. .Pricing strategy With a pricing that is almost one-third that of Lakme. While Lakme has been high on innovation. of late. 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. There was a conscious price differential between the brands to attract the first generation users of cosmetics. It recently relaunched its skincare range under the name of Lakme Fundamentals. while a Lakme Lipstick would have an MRP of Rs 165. The brand has been growing at a lower rate than Lakme. Elle 18 has been on maintenance mode. Meanwhile. Lakme Lever continues to innovate for its existing range of skincare and color cosmetics under the Lakme brand. we will be upgrading the existing skin care range with new formulation and packaging. "There was a change in our strategy in the past." said Mr Chopra." Mr Chopra said. So. "While there is no new product.
Chopra said. our salon business has been growing the fastest." Mr."The overall beauty market has been growing between 15-20 per cent but we have been growing higher than the market. "With a small base. There are plans to have 100 Lakme salons by the end of the year from the existing 92 salons across the country. it is the salon business that has been registering the highest growth rates for Lakme Lever. Lakme Lever intends consolidating its hair care portfolio launched last year under the Lakme Hair Next brand. Besides. "We do not want to add to existing hair care products in the market. . 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." said Mr Chopra." However.
By 1999. from which Simone Tata borrowed the name Lakme (French for Lakshmi. Anglo-Dutch. well. the world looked set for a revised version of the work. a 19th century opera written by Frenchman Leo Delibes. Simone Tata was no longer on the scene. the name of the priestess). High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground.. denies this-Lakmé.MARKETING STRATEGY Lakme Restages Its Opera Its turnaround sketch has got just a few strokes . Worse. . and test the rural waters. predictably. actually-Hindustan Lever Ltd (HLL). spruce up the supply-chain. with HLL not appearing too keen about the brand-the company. Her orthodox father vows vengeance. That's the story of Lakme. They fall in love. the brand looked all set to follow the spirit of Lakmé the opera (a tragedy).grab the fashion platform. And a home-grown fashion brand-often personified as the high priestess of fashion in the country-had been sold to a multinational company whose provenance was English..
Almost everyone has a Lakmésomething in their (cosmetics) collection. Anil Chopra. is Lakmé back? Getting the focus right A little bit of Lakmé history: in 1995.Lever was right. arguably. Standing amidst the jamboree of what is. Only. we have. 51. as is now evident. not just taken a lead (over others). The aria. Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. but also got a virtual ownership of this plank. ''Lakmé is at the forefront of product-innovation. wasn't quite over. the Lakmé India Fashion Week (LIFW for short). Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL. India's first fashion summit. in a way. the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. renamed itself Trent and entered a different business (retail). the affable Director who heads Lakmé Lever Ltd is bullish about the brand's new positioning: ''By taking on the fashion and glamour platform. .'' And reactions to the born-again Lakmé at the LIFW did suggest that Chopra and the brand were on to a good thing. In 1998. So.'' gushes Mumbai-based fashion choreographer Lubna Adams. It will be very difficult for any other brand to adopt a similar approach.
000 outlets through which colour cosmetics are sold in India. ranging from Revlon (through Modi Revlon) to Chambor. 26. Says Meghna Modi. but that has been the result of our efforts to reposition and reintroduce the brand. he says ORG-MARG does not have a representative sample of the 60.The FAQs: With Ponds becoming part of HLL. Executive Director. Likely outcome by the strategy . is clear: Ponds is Lever's primary skincare brand. According to ORG-MARG's retail audit. its apparitional colour cosmetics 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. Modi Revlon: ''The numbers say it all. we have an 84 per cent share of the premium end of the colour cosmetics market. which also has a presence in skincare. Lakmé. 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.'' The positioning bit. although complex. are already slugging it out.'' Chopra is quick to rubbish this claim.
however. The brand. the company has three brands: Lakmé itself. but this opera could well have a happy ending. could also catalyse Lakmé's entry into the hinterland.'' Lakmé will remain a loner in the Lever stable: Unilever does not have a presence in the colour cosmetics segment. a company has to think of segments carefully.com: ''Though rural markets are big potential. Elle 18. . Portfolio Advisor. Chopra claims. Says Nikhil Vora. That means Lakmé Lever will have to depend on its own kitchen garden. which will be positioned as a fashion-brand. and is test-marketing Elka.The premium segment. Any expansion into new areas should be justified by returns. a brand targeted at the lowest-end of the colour cosmetics market. But a focusedmost 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. which has enjoyed success as a collegegirl brand. Today. a super-premium brand that hasn't really seen much excitement since its 1999-relaunch. but only if tests show there is a rural market for colour cosmetics. Sharekhan. The company plans to re-re-launch Orchid by end-2000. 28. and Orchid. is just a slice of the Indian market for colour cosmetics (estimated size: Rs 275 crore). It's still the second act.
trends and opportunities. which distinguishes this report from any other available competitive benchmarking report on this company: 1. Industry Analysis Section: This section covers an analytical overview on the respective industry segment. . Inc. M&A developments and business strategies. Besides a comparative analysis on these metrics. product offerings & their USPs (unique selling points). issues. geographical coverage. financial performance. this Competitive Benchmarking Report has two USPs. companies’ performance vis-a-vis industry trends.Marketing strategy Revlon. .Competitive Benchmarking Report This report compares the company with its closest competitors on various parameters such as business segments. challenges.
market/industry position. From a strategic decision making perspective. to get a comprehensive perspective financial performance. This report offers a comprehensive overview on the key strategies adopted by these market leaders to gain a stronger market position in this competitive environment. Comparative SWOT analysis on the company. business analysts and on decision product makers offerings. investors. This analytical report is especially created for top management. its competitors and respective industry segment in a tabular format. It can be best used to derive a framework for strategic planning with key success factors (KSFs) of the industry or marketplace on specific metrics.2. and business strategies etc of the company in relation to its competitors & industry segment. Delivery will take 4-5 business days as the publication is updated at time of order to ensure the information is as current as possible. . it can be further used to develop future quality and market initiatives for the company to enhance its overall competitive position.
and greater competition from global companies in cosmetics. and went on to create Trent and Westside. Lakme started as a 100% subsidiary of Tata Group (Tomco). Lakme tapped into what would grow to be amongst . for Rs 200 Crore (45 million US$). Half a century ago. Simone Tata joined the company as director. India's first beauty brand was born. and went on to become its chairman. it was named after the French opera Lakmé. When Tata's saw a bigger growth potential in the retail market. owned by Unilever. as India took her steps into freedom. At the time of its establishment. they enetered into a 50-50 joint venture with Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever. and there was a very small market base. Indian cosmetic industry was rather nacent. At a time when the beauty industry in India was at a nascent stage. Lakme.Lakme's Profile Lakmé is an Indian brand of cosmetics. In 1998 Tata sold of there stakes in Lakmé Lever to to HLL.
the leading. Armed with a potent combination of foresight. self-financed and family owned. nails. Branding and packaging of the product range is first class and they are tested and manufactured solely for this brand name and no other. high consumer interest segments in the Indian Industry that of skincare and cosmetic products. The Products LAKMÉ leading hair care products are developed exclusively for distribution to hair and beauty salons. These include products for the lips. research and constant innovation. All product formulation is in accordance . The very best raw materials are used in manufacture using the latest technology and adopting the highest levels of hygiene. 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. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. and services like the Lakme Beauty Salons About LAKMÉ The Carreras family established LAKMÉ Cosmetics in 1997 and is independent. The family has over 40 years of manufacturing experience in salon products. 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. face and skin. eyes.
. The Promotion Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGE for customer sales and your own use. Lakme's local distributor Hemas Marketing (Pte) Ltd. has announced. Sun Screen Lotion and Hair Remover. Calamine Lotion. which the company will continue to market in new packaging. with freestanding display units highlighting the unique quality and variety of your products and enhancing the quality of your sales and service. Lakme expands skin care products Lakme. and unveiled the company's new international logo and image. the Indian cosmetics giant has expanded the range of skin care products it markets in Sri Lanka.with the health standards of the European Union and the United States Food & Drug Administration and is subject to ISO 9002 certification. but not by yourself. pH-Balanced Face Wash. Prior to the launch of these products. Launched in Colombo earlier this month. Hemas Marketing was responsible for the distribution of Lakme Maximum Moisturiser and Lakme Deep Pore Cleansing Milk. Combine this with FREE ongoing in-salon education and you have the perfect basis to grow your business for yourself. Nourishing Body Lotion.. the addition to the Lakme skin care range are the Lakme Nourishing Cold Cream.
part of Tata . owned by Unilever. we can enjoy mutual success limited only by ambition and effort. Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco). For our part. “We are committed to you and your customers. plus direct access to the main technical European team. By working together. a totally reliable service. but because we need each other. Our warehouse is constantly re-stocked to ensure products are always available for immediate delivery and at the keenest prices. providing the finest hair care products available. PLUS a complete programme of professional support that virtually guarantees your success – all in one superb package. Interested? Lakme cosmetics Lakmé is an Indian brand of cosmetics.Support Lakmé East is here to give you all the help and support you need. Lakmé East can make your job easier by supplying the highest quality products. we believe our on-going support programme is second to none. We presently have two highly trained Stylist/Technicians constantly in the field ensuring our salons are getting all the help they need with the very best product and training possible. Not because we’re altruistic.” To Summarise For those of you already involved in the hair care business Lakmé offers a natural progression to broaden business prospects and boost profits.
Simone Tata joined the company as director. so to speak. it was named after the French opera Lakmé. At the time of its establishment. they enetered into a 50-50 joint venture with Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever. “Lakme was launched at the request of Panditji who decided to ban imports of cosmetics. answers. When Tata's saw a bigger growth potential in the retail market. and went on to become its chairman. We chatted with the Czarina of Indian business about a subject that’s close to her heart . Indian cosmetic industry was rather nascent. Lakme has changed faces. But when she does meet the press. as she arrived five minutes early for the meeting. and there was a very small market base.beauty. All his friends in Delhi started moaning and groaning.Group. so he asked the Tatas to bring out a . ET met the former chairman of Trent at her offices in Bombay House in South Mumbai. As managing director of Lakme in the 1960s and 1970s. Mrs Tata had been given a huge brief . armed with a file containing questions.from on high. and greater competition from global companies in cosmetics. And Mrs Tata almost caught us on the wrong foot. Simone Tata shows that she’s as much on top of business and consumer issues as any high-profile CEO. and her notes. attitudes too SHE’S perhaps more media-shy than her famously reticent nephew Ratan Tata.
in a market which consisted of just talcum powder. It introduced the Indian woman to colour launching lipsticks. From a situation even twenty years ago when makeup was a special occasion item.” Competition did come along. “I didn’t have a benchmark. and the brand’s marketing campaigns addressed these taboos directly. foundations and more. Lakme was ahead of the curve. it’s . you had to play it the way it came as long as you had the vision and as long as you could see the evolution in the rest of the world.” she explained.” she said. with copy explaining that using cosmetics didn’t mean one was “cheap”. “There was also a famous nail enamel called Cutex. face powder and vanishing cream. That was his understanding of cosmetics . Lakme has come a long way since then. but even in those early days. and we were confident that the day will come where it would be needed. “We thought that it should be available for those who wanted it.” she reminisces. We did not. “Makeup was considered to be a way to attract the male sex and therefore very much frowned upon. Every nail enamel was called Cutex whether by Lakme or whoever. Lakme’s initial task was attitude change. Mrs Tata went beyond the brief. That did happen. but Mrs Tata admits that it took a long time.” she says. nail enamels.powders and perfumes. with brands like Pond’s.” she laughs. But not too many of those early competitors are around today: “I suppose they gave up.range of powders and perfumes. with the real turnaround happening only in the 1980s. Max Factor and Himalayan.
today moved to being a part of everyday grooming.” she says. Mrs Tata hasn’t been in the beauty business for a while . We are a generation of busy women. “That’s a state secret.on what. Readymade is seen as far quicker to apply and works faster. “Most women have given up their grandmothers’ recipes.” is all she would say .I think I’m faithful to Lakme.she started the Tata’s retail company Trent in 1998 . because it’s a specialised formulation that suits her skin. she had some rapid fire questions for us .on what cosmetics we used. When ET tried to turn the tables on her. andwhich brands we favoured. “It’s all Lakme . she’d admit to using just one-night cream that is a non-Lakme product. she turned staunch loyalist. During the course of our meeting.” But for one exception. But she wouldn’t reveal which one.but she’s not left it behind.
Products Face Lips Make Up | Enrich Lip Colour | Lipgloss | Lipliner | Dual Definition LipColor 'n' Liner | Eyes Nails | True Wear Nail Enamel | Lakme Pure Defense Anti-Pollution System | Eye Shadow. Liner & Kajal | Cleansers .
| Detoxifying Facial Wash | Night Cream | |Day Lotion | Serum | Cleansers Sun Care Body Care Sun Care Matte Effect Body Care Hairnext Matte Effect Discover Glow Hairnext Moisturisers Moisturisers .
pursuant to which the Company licenses certain of its key brand names to third parties for complementary beauty-related products and accessories. fragrances.400. military exchanges and commissaries and has a licensing business. including foundation. The Group sells face makeup. Cosmetics & Health Care Cosmetics & Toiletries UNITED STATES 5600 Business Description Revlon. The products are sold in more than 100 countries .100. Inc.000 Drugs. powder. beauty tools. Inc. skincare. under Revlon brand names.. .Company Profile Company Profile: Ticker: Exchanges: 2007 Sales: Major Industry: Sub Industry: Country: Employees: Revlon. The Group also sells consumer products to U. REV NYSE 1.S.Revlon. Its principal customers include large mass volume retailers and chain drug and food stores. blush and concealers. anti-perspirants and deodorants and other personal care products. as well as certain department stores and other specialty stores. hair color. The Group's principal activities are to manufactures and sell an extensive array of cosmetics. It operates in a single segment. Inc. such as perfumeries.
com— in an effort to connect with consumers. Australia. the company has relaunched its website— Lakmeindia. In addition. Mexico and South Africa. For starters. HLL Focuses On Community Activities For Lakme ( June '7.including in the United States. FE) In a significant move. U. HLL advertises to keep up with competition Intensifying competition in categories like soaps and skin care is leading FMCG company Hindustan Lever (HLL) to aggressively up its adspend as its market shares in these categories has slipped in the six months from March to September. Hindustan Lever Ltd is stepping up its online marketing initiatives to promote its flagship brand Lakme in cyber space.K.2002. HLL has also kicked off its community building exercises by launching an interactive section titled —My Lakme —at Lakme’s new Website— for the first time. . France. Canada.
Our global brand name recognition. product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world. with our products sold in approximately 175 countries and territories. sales and operating system of a consumer packaged goods company. fragrance and personal care and is a leading mass market cosmetics brand. ColorStay®. Our vision is to provide glamour. Revlon's management team combines the creativity of a cosmetics and fashion company with the marketing. New . To pursue this vision. excitement and innovation through quality products at affordable prices. skin care.Revlon Profile Revlon is a world leader in cosmetics. Revlon's brands include Revlon®.
Revlon was founded in 1932. David L. Using pigments instead of dyes. Almay®. Starting with a single product . Merele Feldstrhoms.a nail enamel unlike any before it . by Charles Revson and his brother Joseph. CEO Lillian Orienbeck. Paul Bohan. Ownership • • Ronald Perelman: 60% (77% of votes) FMR Corp. Ultima II® and Flex® and Charlie®.the three founders pooled their meager resources and developed a unique manufacturing process. Howard Gillyhans.Perlmahnn Key Dates .Complexion®. opaque nail enamel in a wide variety of shades never before available. who contributed the "L" in the REVLON name. along with a chemist. Revlon Age Defying®.: 20% Corporate governance Current members of the board of directors of Revlon are: Adrienn Boyiensteins. Charles Lachman. Donna Drayerskeens. Martin Landau. Revlon was able to offer to woman a rich-looking.
1940: Lipstick is added the company's product line. the revolutionary "cream enamel" came from the tiny Elka company. 2007: Revlon is sold to Pantry Pride. a subsidiary of Ronald Perelman's MacAndrews & Forbes Holdings. 1935: The company's first ad appears in The New Yorker magazine. medium red. dye-based products of other manufacturers. Lachman establish Revlon. Revlon's nail polish owed its superiority to the use of pigments. 2010: The company's professional products line is sold. is purchased. Initially. it was an improvement over the more transparent. New Jersey. in Newark. Vitamin & Pharmaceutical Corporation is acquired. and becomes a private company.1932: Brothers Charles and Joseph Revson and Charles R. Opaque and longlasting. which also allowed a wider color range than the light red. A Nail Polish Company Is Founded in 1932 Revlon's first beauty item was nail enamel. and dark red then available. a polish supplier to beauty salons for whom Charles Revson began to work as a sales representative in . 2008: ColorStay lipstick is introduced. 1966: U. and goes public. 2009: Revlon makes an initial public offering of stock. 2006: The Charlie fragrance is launched. 2005: Mitchum Co. 1955: The company changes its name to Revlon Inc.S.
the company boasted sales of $4.246 in 1933. Coupling this with his experience at Elka. Revlon had a keen fashion instinct. selling his product only at premium prices. honed by his seven years of sales experience at the Pickwick Dress Company in New York. Charles Revson decided to open his own nail polish company. By 1937. Lachman. he noted that the permanent wave boom was making beauty salons more popular and that demand for manicures was rising in tandem. however. Formulating a maxim he followed for the rest of his life.1931. Within its first nine months. At the end of 1934. Revlon was formed on March 1. Revson decided to enlarge his market by retailing his nail polish through department stores and selected drugstores. This gave him access to more affluent customers as well as those with a moderate amount of money to spend on beauty products. sales multiplied more than 40 times. the year the company incorporated as Revlon Products Corporation.055. . There was a sharp rise in sales to $11. Revson steered clear of cut-rate stores. Within a year. going into partnership with his brother and a nail polish supplier named Charles R. Charles Revson and his older brother Joseph distributed Elka nail polish as Revson Brothers. who contributed the "l" to the Revlon name. He therefore targeted beauty salons as a market niche--a fortunate choice whose importance would grow.000. In that year. 1932. the company had grossed $68.
Revson was persuaded by the success of rival Hazel Bishop. full-color spreads in fashion magazines. Though initially reluctant to go ahead with this project. and display cards reproducing or enlarging consumer ads. Packaging was designed specifically for each line.000 Question. color cards showing the range of colors in the promotion. was influenced by increases in spending and department store credit sales.Marketing strategy Postwar sales strategy. These efforts produced excellent publicity and helped to raise 1952 net sales to almost $25. The . The Fire and Ice promotion for fall 1952 was one of the most successful. Each promotion featured a descriptive color name to tempt the buyer. Returning interest in dress sparked the company's twice-yearly nail enamel and lipstick promotions. The company received its next boost from its 1955 sole sponsorship of the CBS television show The $64. which planned its November issue around the lipstick and nail enamel. "push" money given to demonstrators in stores without Revlon sales staff to insure full retail coverage. Attracting a weekly audience of 55 million people. Its features included the cooperation of Vogue magazine. too.5 million. whose sponsorship of This is Your Life was providing serious competition for Revlon's lipsticks. and radio endorsements written into scripts for performers such as Bob Hope and Red Skelton. which were crafted in anticipation of the season's clothing fashions.
its six lines separately aimed. and net sales for 1955 grew to $51.$64.S. such as Norell and Intimate for women and Braggi and Pub for men. a fragrance designed for the working woman's budget. from $33. had also become familiar to U. Revlon also had a new line of wig-maintenance products called Wig Wonder. Charlie was an instant success. makers of antiperspirants and other toiletries. proved Charles Revson's adage that publicity had to be heavy to sell cosmetics. Revlon's advertising budget for the year. advertised.6 million one year previously.5 million. Mitchum-Thayer division's widely publicized products required a 1971 advertising budget of $4 million. and marketed. Geared to the under-30 market. Revlon fragrances.000 Question topped the ratings within four weeks of its debut. Mitchum joined the Thayer Laboratories subsidiary.6 million. consumers. Charlie models in Ralph Lauren clothes personified the independent woman of the 1970s. sales of some products increased 500 percent. helping to raise Revlon's net sales figures to $506 million for 1973 and to almost $606 million . formerly Knomark. was the industry leader in all franchised retail outlets. An important 1970 acquisition was the Mitchum Company of Tennessee. The Cosmetics and Fragrances division. In 1973. Takeover strategy The 1970s began with annual sales of about $314 million. $7. as a result of the television show. Revlon introduced Charlie.
the following year. • lipstick • lipgloss • lipliner .
• Foundation • Powder • Blush .
• Concealer • Mascara • Eyeshadow • .
Eyeliner • Browcolor • False Eyeslashes • Nailcolor .
• Nailcare • Artificial Nails • Haircolor .
To know the media access by consumers to know about Cosmetics Products. To study the effect of Consumer Satisfaction on the marketability of Cosmetic products.• Beauty Tools • Fragrance 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. Products on the brand switching behavior of the .
sex and occupation of the respondent among the strata formed was done random sampling for the collection of primary data. Shampoo). To know various cosmetics product range in the market level for Cosmetic Products (Nail Enamels. Sample was taken only in the Agra to determine the attitude of customers towards importance of branding in modern marketing. . The persons were contacted and the data was collected from them by the means of questionnaire. Lotions. The researcher truly on the basis of his convenience did the sampling. Sample unit was mainly each of those customers. RESEARCH METHODOLOGY In the present study stratified sampling was done and strata were formed on the basis of the age. which are using and/or knowing about cosmetic Products of Revlon or Lakme in Agra.
Sample techniques were convenience based because of time and cost constraints. .Sample size is 100 respondents.
questionnaire method is found to be most effective. For collecting primary data consumer survey has conducted in Agra city with the help of a predetermined questionnaire.Research Design The research design is the specification of method and producers for acquiring the information needed. . Data Collection ( Primary & Secondary ):Data was collected from both primary and secondary sources. Keeping in view the nature of study. This framework is to ensure that the relevant data are collected accurately in an economic manner. 2. which determines the course of action toward the collection and analysis of required data. It is the framework.
Factors like1.A.B.C for Lakme and Revlon range.Competitors 3.Customers We also have to know the mission and vision of the organization and also have to the analysis of the sales position. Comparative analysis of width & depth of Lakme and Revlon products & its Competitor for each market.Economic Factors 5.Quality 4. .Social Factors 6. • Finding out prospective markets & retail outlet to increase coverage of Lakme and Revlon product The project Assigned to US is "Identification of External Factors which effect the organization with special selling of the Lakme and Revlon Company." The objective behind this project was to know the various External Factors that effects the organization.Government Policy 2.Marketing Strategies of Revlon & Lakme • • Classifying Cream as A+.
Technology Center Providing and maintaining the international quality that the consumer deservesQualified team of technologists and scientists endeavoring to adapt formulations. . 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.One Depots spread across the country integrated through a single IT network. Twenty.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. develop new products & packaging. Marketing Department comprising of seasoned professionals ever adaptive to market dynamics.
When prompted for cosmetics. be it for brand recall or for intention to buy. Revlon a distant second on both counts. Revlon ads also recalled noticeably.Well equipped laboratory to control and meet the international quality standards of our products. more than half the consumers want Lipsticks the most. Lakme ads dominate the top of mind ad recall among consumers. Nail Polish is a distant second. . Lakme dominates the category in consumer minds in a big way. Consumer Preferences of Cosmetics Toplines Buying Preferences Among cosmetics. When prompted for cosmetics. Mid and Premium price range are the most preferred. Advertising Recall Only Lakme ads recalled significantly by consumers at the unaided level. Revlon and L’Oreal recalled noticeably. Brand Preferences Lakme is the only cosmetic brand getting significant brand recall at the unaided level.
People tend to offer just about any thing under the label “Free Gift Inside”. the meaning of the term gift seems to have attained a wider meaning. it’s almost like one can’t buy a tooth brush without having to tote a detergent bar home as well. They have always been a part of the consumers product s game. 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. This frenzy has led to a deluge in the range of innovative products entering this market. Marketing heads are exploring the effectiveness of each and every product as a gift to boost sales. Godrej. Five rupees off means five rupees less to the manufacturer. have resorted to giving their own lesser known brands free with their popular . making the offer far more cast effective. but nowadays. but a gift item which sells for five rupees might be sourced for just Rs.2. Philips. Infact. The type of products offered as a promotional item range from a small ball pen to expensive electronic items.revlon etc. Value Perception could be one reason why this freebie strategy is more effective. 1. Infact. Large MNCs like the Levers. the type of products entering the gifting and promotional category is simply mind-boggling and differ from product to product.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 acts as a mutual benefit for both the parties. 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 dine with his favourite star on . This trend is extensively practiced by the electronic industry. Such moves by these companies forced better-established brands like Onida etc. There tends to be a small amount of exploitation of a few lesser-known brands in such exercises. homes and free trips abroad. This trend has come in as a zephyr to the lesser popular brands striving to establish themselves in the market. The companies tend to save their promotional expenses and utilise the same to generate better sales in the respective brands. This automatically tends to reflect a better sales volume as far as both the brands are concerned. as one achieves better sales while the other achieves better exposure at a very nominal expense. The prizes given out by companies in contests range from gold. diamonds to cars. 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.brands and vice-versa. over 10 CDs free with a purchase of a sound system etc. 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. Every second brand seems to be running a contest to actively involve the buyer in his brand.
-No one would know except the horse himself .winning the contest. The dealers along with their whole family were invited to this party.and have it hit the Scullers Womens wear shelves. Recently Axe for it’s brand of deodorant ‘Vodoo’ actually booked a far away island in Kerela and held the longest dance party. for children. The companies are running extensive schemes for the dealers too. But at the end of the day what emanates as the greatest question is. 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. It is not only the customer who is being lured by such marketing gimmicks. capris. trousers. 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. 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. Apart from luscious snacks there was a whole lot of entertainment activities like games. competitions etc. Thane. Bell ceramics had recently organised a largest party in the ceramics industry for their dealers at ‘Tikujini’s Wadi’. its time they returned some”. Customers had to correctly answer the questions in the form placed in its pack to qualify for this party. skirts and shorts .
Do you use cosmetic products? No. 20 Yes No Yes. 80 Interpretation : 100% respondents in use cosmetics products their 80 percent customer called yes and 20 percent customer called No. .Data Analysis of Customer’s 1.
(Q2) What all the products of Revlon do you use? Revlon 50 40 30 20 10 0 Shampoos Lotions Nail enamels Lipstics 45 35 30 20 Revlon .
(Q3) What all the products of Lakme do you use? Lakme 50 45 40 35 30 25 20 15 10 5 0 Shampoos Lotions Nail enamels 30 40 34 48 Lakme Lipstics .
35 Yes Yes.(Q6) Are you satisfied with the products of Lakme? No. 65 No .
(Q7) Are you satisfied with the products of Revlon? Yes. 55 Yes No . 45 No.
(Q8) In future what type of incentives will attract you?
60 50 40 30 20 10 0
DATA ANALYSIS OF DEALER’S
How did u get the dealership for the particular product?
40 30 20 10 0
33 23 15
2 How you advertise your products?
40 30 20 10 0
36 31 21 25
3 Which company you prefer the most? 30 25 20 15 10 5 0 Lakme 30 20 28 26 Revlon None Any other .
According to margin which company is providing you good profit margin? 50 40 30 20 10 0 50 30 15 10 Lakme Revlon None Any other .4.
5. This could have saved the finding of the study from devilling to too much from reality. 2. 3. The general question has more true representation than the detailed question. The random sampling includes more people. as the people are mainly used Lakme of Revlon Products.LIMITATIONS OF THE STUDY 1. The questionnaire has been filled up by those people who used Lakme of Revlon Products. Since some of the random sample people are not sincere while writing responses and must have affected the finding. This constraint might have affected the study finding. Since it is impossible to choose all walks of life in people in random sample. This led a bias in favour of people and affect the study finding. This constraint must have hampered the study finding in favour of peoples having Personnel & Health Care. . 4.
3. The company should provide good margin for distributorship. Promotion by local advertisement can also help in promoting Sales of the products. Company should encourage solving the customer’s complaint. 2. Customer satisfaction should be the ultimate aim so that customer complaints should be removal. 4. 1.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. Timely feedback should be taken so that all the problems can be easily removed. More promotional schemes should be introduced for customers. 5. .
. 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. While other branded companies product are not preferred due to high price and brand loyalty. The products of Revlon Groups of Companies are preferred because of its low price and easily available. 4. People who are more conscious about their health are more aware about products and therefore prefer the products of Revlon Groups of Companies. The products of Revlon Groups of Companies are preferred because of its low price and easily available. 1.FINDING The products of Revlon Groups of Companies are the leading choice in New Agra and it is far ahead from its competitors in terms of customers. 3. The advantages which the products of Lakme Groups of Companies shares over other branded companies products are as follows. 2. Users of personnel & Health care products also generally prefer for buying the products of Revlon Groups of Companies.
2 % respectively. The average sales in different markets are as follows :- The average Sales Across East Agra markets are 50. pears etc. “Monthly survey should be conducted to improve its brand image and increase customer loyalty”.2% respectively. The average sales across North Agra markets is 42.1% in all markets.CONCLUSION The overall average sales of Revlon Products are 54. The average sales of Lakme & Revlon across South Agra markets is 37. . The average Sales across West Agra markets are 48. Like HLL.9% respectively.9% in all markets and Lakme Products are 45. 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. Still there is a need to Promote Lakme to reach at the level of product like ponds.1% respectively. NIVEA and Others.
not fully but partially as advisory notes.revlon. . WEBSITES • www.co.lakmeindia.BIBLIOGRAPHY The essence of the report. R. listed in this chapter. BOOKS • KOTHARI C. are inspired and collected by these sources. BY RESEARCH METHODOLOGY . NEW PADMA PUBLICATION .in . NEW DELHI.com • www.
Are you satisfied with the products of Lakme? (a) yes (b) No 7. Are you satisfied with the products of Revlon? (a) yes (b) No 8. What all the products of Lakme do you use? (a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics 4. How u come to know about all the products of the company? (a) Advertising (b) Hoardings (c) Brand Image 5. In future what type of incentives will attract you? (a) Quality (b) Price (c) Discount(d) Offers .CUSTOMERS QUESTIONNAIRE 1. Do you use cosmetic products? (a) yes (b) No 2. What all the products of Revlon do you use? (a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics 3. Reasons for purchasing the particular products of the company? (a) Better Quality (b) Easy availability (d) Brand Image (c) Low rates 6.
According to margin which company is providing you good profit margin? (a) Lakme (b) Revlon (c) None (d) Any Other 5. According to you which company provides better quality? (a) Customer demand (c) More profit margin (e) All above (b) Brand Image (d) Advertising 6 Why you keep products of a particular company at your shop? (a) Customer demand (c) More profit margin (e) All above (b) Brand Image (d) Advertising 7 According to you which company’s product sales the most? (a) Shampoos (b) Lotions (c) Nail enamels (d) Lipstics 8. Are you satisfied with your company you prefer? (a) Yes (b) No . How did u get the dealership for the particular product? (a) Hoardings (c) Pamphlets 2 (b) Advertisements (d) Any Other How you advertise your products? (a) Through displays (c) Discounts (b) Free Samples (d) Any Other 3 Which company you prefer the most? (a) Lakme (b) Revlon (c) None(d) Any Other 4.DEALER’S QUESTIONNAIRE 1.
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