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MASS MARKET’S COSMETIC LEADER – “LAKME
Submitted by : Pooja: PG-12-033 Nidhi: PG-12-043
Mayuri: PG-12-053 Submitted To: Prof. Trupti .K. 12/22/2012 1
Sr. No. 1. Introduction
PAGE No. 3
The Cosmetic industry
General overview about the company
Brands In Cosmetic Industry Customer Segments and Major players
5. 5.1 5.2 5.3
Market Share And Competitor Analysis Competitive Advantage Key Differentiator For Success of The Brand Price Related Differentiation 16
6. 7. 7.1 7.2
SWOT Analysis of LAKME Competition And Challenges In Cosmetic Industry
19 Competition Challenges In Cosmetic Industry Reason For LAKME‘S Survival In this cut throat competitive Cosmetic Industry
Modern cosmetics include skin-care preparations. astringents.‖ The attraction of a beautiful face did not appear yesterday. eye makeup. or irregularity. and Americans. Italians. The art of cosmetics has definitely changed over time and through different cultures including: Egyptians. 3 . ―A women without paint is like food without salt. Serving to beautify the body. defect. COSMETICS 1. dyes. ―A preparation. painted ladies and even gentlemen have been known through time in artwork and illustrations.1 INTRODUCTION The word ―cosmetics‖ comes from the Greek word kosmetikos meaning ―skilled in adornment‖. and nail polish. foundation. Romans. shampoo. designed to beautify the body by direct application or Something superficial that is used to cover a deficiency or defect.1. mouthwashes. French. depilatories. The way people wear makeup and the reasons why they wear it have changed dramatically over time. promoting attractiveness. such as powder or a skin cream. Plautus. Greeks. Related products include antiperspirants. Thus the benefits of cosmetics would be: someone who takes care of your beauty needs A long lasting beautification product range It helps you to get a beautiful skin Someone who tells you right thing about looking good. The Roman philosopher. face powder and rouge (blusher). hair curling and straightening preparations. especially the face and hair or Serving to modify or improve the appearance of a physical feature. lipstick. The evolution of cosmetics has truly changed through the centuries. or altering the appearance without affecting the body's structure or functions. beautifying. and bath crystals. The earliest known cosmetics were in use in Egypt in the 4th millennium BC. FDA defines cosmetics as: "Intended to be applied to the human body for cleansing. hair colours. and bleaches. The U." This broad definition includes any material intended for use as a component of a cosmetic product. In simple words cosmetics would mean.S. once wrote.
increase in disposable incomes. However. Although Indians are strongly attached and committed to their traditions. along with the crowning of three Indians as Miss World and Miss Universe during the preceding four years. the cosmetic consumption patterns of Indian women have changed. India's urban population is the main engine that fuels the demand for various cosmetic products. The entry of many multinationals into the Indian cosmetics industry in 2005 has made it an extremely challenging and dynamic market. re-launches and brand extensions spread across multiple price points. THE COSMETIC INDUSTRY India. have made Indian women conscious of their appearance. and culture. with a population of nearly a billion people. The preference of Indian consumers is changing from the ‗merely functional‘ products to more ‗advanced and specialized‘ cosmetic items. Consequently. Comparatively the range of cosmetic and beauty products in India has widened tremendously. while other global countries are taking to the traditional Indian herbal and 4 . Beauty products manufacturers in India mostly cater to the great demand for cosmetics that fall into the low or medium-price categories as the greatest demand in India have always been for these economically priced products. In 2005. and changes in peoples taste. is a country of contrasts. the advent of television and the awareness of the western world are changing the tastes and customs of India. The ‗morphing‘ of India is subtle and the changes are not visible for the first time visitor. Foreign players have focused more on Product innovation.2. The key growth drivers for the cosmetics market in India are rapid urbanization. sales of cosmetics rose by 6% in current value terms in India. It is also predicted that there is a huge potential for cosmetics in India. the market liberalization process that began in 1991. The Indian cosmetics industry is growing in terms of product development and marketing. The leading players have streamlined their ad spend to effect savings that has allowed them revamp their pricing strategies as well as offer free gifts to retain consumers. An interesting trend among Indian cosmetic consumers is. and enhanced product penetration by extending their distribution networks. which saw its value share rising from 27% in 1999 to 31% in 2005 and are likely to continue to surge ahead over the forecast period. The Indian cosmetic Industry has witnessed rapid growth over the last couple of decades. and this trend is fuelling growth in the cosmetic sector. Indian cosmetics market is valued at $950 million. India in cosmetics.
New facts that have been unveiled by a series of cosmetics business market analysis India reveal that many International companies are now outsourcing cosmetics to India and that the industry of cosmetic products in India is growing at an average rate of almost twenty percent annually. A boom in the Indian fashion industry has also been linked to the increased awareness of Indian people about their appearances and consequently contributed to an increase in the demand for cosmetic products. 195. The first being the increase for the demand in Indian cost-effective products and the second being the increased purchasing power of the average Indian. The emergence of a young urban elite section with increasing disposable income in cities. statistics have shown that the average Indian consumer spends much less on cosmetic products than consumers from every 5 . Despite the huge nascent potential in India. With the introduction of satellite television. even with the massive surge in the popularity of cosmetic products. changing lifestyles.ayurvedic applications for beauty solutions. the average Indian consumer is constantly bombarded with advertisements and information on new cosmetic products which often translates into the desire to purchase them. a wide array of television channels as well as the Internet. herbal cosmetics from India have a great demand in the overseas market and many cosmetic products that are manufactured in India today are supplied to international suppliers of branded cosmetics products like The Body Shop for example.6 billion. mounting aspirations. frequent relevant product launches and growing beauty consciousness and awareness. increasing appetite for western goods. cosmetics grew at relatively slow pace in constant value terms over the 2005-2010 as was expected for this forecast period. penetration of satellite TV. increased affordability of lifestyle-oriented and luxury products. the main reasons being a greater ability to purchase personal grooming products among a larger base of financially independent women. increase in the number of working women. The projected sales in 2010 at constant 2005 prices is Rs. in recent years in the cosmetics market India competitors have begun to manufacture products to cater to an International need. in the belief that the association with and use of an international brand confers one with a sophisticated and upper class image. especially among the younger population. However. This increase is attributed to two main factors. There are also many reasons for the increased demand for cosmetic products in particular. Indian consumers are increasingly looking to international personal care brands as lifestyle enhancement products. However. For instance.
Fragrances . Herbal products . of which nail varnish. Skin care . which includes beauty services. International brands account for only 20% of the cosmetics market.21%. In the entire range of products that fall within the territory of the Indian cosmetic market.65 in other Asian countries. the penetration level of cosmetics and toiletries product is still very low in India. The enormous growth in this segment has not only attracted many MNCs but also provided space for many Indian companies to foray or expand their product range. Thus the total size of the Indian retail beauty and cosmetics market is currently estimated at $950 million [Colour cosmetics account for 14%. cleansers and toners. Unilever and Procter & Gamble are major players in the Indian cosmetic sector of shampoos and hair products.68 cents compared to $36.7%]. Hair care . is $2. lipsticks and lip glosses account for the most sales. The penetration level of international cosmetics brand in India is also low. This means that the Indian cosmetic industry has an even greater potential for growth than it is presently experiencing. Skin-care cosmetics have experienced a slower growth and products such as anti-wrinkle creams. Companies like Ponds and Fair and Lovely rule the roost in this segment. this industry has been growing at 20-25 percent the last few years. Thus The cosmetics industry.other part of the world. With more women and men becoming conscious of their and willing to spend on their grooming. popular local brand names include Lakme and Revlon. moisturizers and fairness creams in this genre. However. This low level of market penetration can be perceived as an opportunity for major players. The overall beauty and wellness market. is expanding exponentially. which started glowing in the early 1990s. the Indian hair-care cosmetic sector now has a few foreign brands to compete with these giants as well.68 billion. The per capita expenditure on cosmetic products in India is approximately $0. However.9%. the most popular items are colour cosmetics. Beauty services . others .19%. In this area.17%. for instance are not as popular as facial creams.13%. 6 .
At a time when the beauty industry in India was at a nascent stage. Lakme has grown to be the market leader in the cosmetics industry. eyes. 7 . Lakme. 2. as India took her steps into freedom. GENERAL OVERVIEW ABOUT THE COMPANY Half a century ago. It has a brand personality of someone who takes care of you and your beauty needs. and services like the Lakme Beauty Salons. nails. research and constant innovation. Lakme tapped into what would grow to be amongst the leading. high consumer interest segments in the Indian Industry – that is of skincare and cosmetic products. Now HUL (Hindustan Unilever Limited) has about 88 salons all over India providing beauty services.3. These include products for the lips. It tries to position itself amongst its consumers as a product range that will help them look beautiful as is evident from its catchphrases: 1. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. Lakme is a product range that caters to the beautification needs of not only women in their adult age but in today's context teenagers also. India's first beauty brand was born. Armed with a potent combination of foresight. and arm the consumer with products to pamper her from head to toe. On top of the world! Source of radiant beauty! Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India. face and skin.
Product range of Lakme: TYPE PRODUCTS Lakmé Hair Care Lakme Hair Next GEL MOUSSE SPRAY SERUM Lakmé Eyes 9 to 5 Intense Volume Mascara Quick Dry Eye Liner Defining Eye Liner Perfect Definition Eye Pencil Lakme Thicklash Mascara Lakme Eye Pot Nine to Five Satin Glide Eye Shadow Intense Shine Eyeliner Kajal Shimmer Eye Cube High definition 8 .
Eyeliner Eye Color Quartet • Flawless Makeup Lakmé Face • Creme Compact • Matte Compact • Radiant Compact • Liquid Foundation • Face Magic • Rose Powder • Face Highlighter Lakmé Lipsticks • Enrich Lip Colour • Lipgloss • Lipliner • Aqua Shine Lip Color • Enrich 9 to 5 Lip Color • Enrich 9 to 5 Lip Duo • Enrich Metallic Lip Color • Tarun Tahiliani Lakmé Nails • True Wear Nail Enamel • Free Spirit Nail Color • Glamour True Wear Nail Color Winter 2009 • Fruit Facial Scrub • Deep Hydrating Mask • Creme Face Wash Lakmé Cleansers 9 .
• Matt effect Morning Fresh Set • Strawberry Silk Splash Face Wash • Deep Pore Cleanser • Matteffect Purifying Face Wash • Matteffect Refreshing Astringent • Matteffect Icy Fresh Gel • Peach Milk Moisturiser • Winter Care Moisturiser Lakmé Moisturisers Lakme Pure Defence Anti-Pollution System • Pure Defense Detoxifying Facial Wash • Pure Defense Protective Day Lotion • Pure Defense Detoxifying Serum • Pure Defense Restorative Night Creme • Lakme Sun Expert Ultra 10 .
Lakme Sun Expert matte SPF 20 & 30 • Lakme Sun Expert Cream SPF 30 • Lakme Sun Expert Sunscreen Lotion SPF 15 Lakme Matte Effect • Lakme Matteffect Purifying Face Wash • Lakme Matteffect Refreshing Astringent • Lakme Matteffect Morning Fresh Set • Lakme Matteffect Icy Fresh Gel Lakme Bridal Sutra collection • Bridal Jewel Eyeliner • Bridal True Wear Nail Colour • Lip Chrome • Glide on Eye Colour • Jewel Sindoor • Enrich Metallics Lipcolor 11 .
• Silk Naturelle Daily Foundation • Pure Rouge Blusher • Just Kissed Cheek and Lip Tint • Enrich Matte Lip Color • Glide On Lip Color • Eye Artist Lakme Spa Line • Shea Nut Hand Butter • Nail Beauty Oil • Honey Cuticle Cleaner • Protective Base Coat • Nail Color Remover Oil • Hard Wear Top Coat 12 .
BRANDS IN COSMETIC INDUSTRY Since market liberalization. Coty.4. repeat purchases were not forthcoming because the products were not priced competitively. Chambor. Lakme leads the market with sales of Rs 100 crore. Other international brands in the sector with a major part of the rest. these companies became price-sensitive and most of the international brands are now priced competitively in the Indian market. both. The organised colour cosmetics market is estimated at Rs 340 crore currently. Revlon. some of them engaged in the multi-level-marketing model for their products are: L'Oreal. These companies initially cashed in on their international brand image. Revlon has a market share of 80% in the premium market. Yardley. Consequently. The colour cosmetic segment which has Indian players and multinational company players which offers the highest competition such as: Lakme Lever Shenaz Hussain Ponds. Revlon's sales account for Rs 60 crore of that. 13 . mainly dominate this market. Garnier Laboratories. Oriflame. Avon. Lakme is the overall market leader in the colour cosmetic segment (lip care and nail enamel) with a wide range of products and prices. Unilever Colgate Palmolive Domestic players like Lakme. however. L‘Oreal. several multinational companies have entered the Indian market such as: Revlon.
it specially dominates the mass market segment and also in on the way to acquire the premium market with its innovative marketing mix. Fired with the zeal of changing the complexion of the cosmetics market. has registered a growth of 11 per cent. new entrants have to contend with serious competition in India from local as well as global players. Kao and Body Shop) and are in an advanced stage of market development.Lakme. Paris-based Escada group. Lakme's share stands at 34 per cent. Revlon. and that of Elle 18 is 25 per cent. Mary Ann Kay. Revlon too has grown 65 per cent to strengthen its share to 13 per cent during the period. Maybelline competes with Revlon and Lakme in the colour cosmetics market in India. Sweden's Oriflame. packaging and completely built products. USA's Avon Cosmetics. at Rs 107 crore. They are already exploiting prospects based on imports of active ingredients. The lip and nail colour market. they are fuelling the change using satellite television. Avon. Nivea-makers have not identified the changing needs of the new Indian woman. The international brands that are ambitiously fishing in the Indian waters are: Switzerland's Torstone's Chambor. Mass market products account for a major share. As per the data. In that regard. around 70 per cent. Multinationals feel that Indian companies . It is not coincidence that many of these MNCs entered the Indian market in the mid-Nineties. women's magazines and beauty pageants but we cannot avoid the fact that Lakme too has the largest reach in the Indian market. Maybelline. Pond's. Laboratories Garnier. while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. 14 . Benckiser (Coty Vitacare). The most important global players are already in India (except perhaps Estee Lauder.
It has become an everyday tool to make men and women more presentable. Every part of cosmetics plays its particular role in making a women's image.1CUSTOMER SEGMENTS AND MAJOR PLAYERS Customer segments i. 15 . But nowadays men too are getting more conscious about their looks and making themselves presentable. Women today are more conscious about their beauty other than anything. As per findings every women even the poor ones would definitely spend some amount of their income on basic cosmetic products such as lipstick.4. the target audience of this industry would be both women and men both. kajal and nail polish depending upon their affordability. So women of every age would form 70% of customer segment of cosmetic industry.e. Thus today cosmetics play major part in both women and men‘s life and the industry generates several billion dollars in products and income.
MARKET SHARE AND COMPETITOR ANALYSIS Lakme is the overall market leader in the color cosmetic with a wide range of products and prices. Lakme‘s promotion like speciality counters in departmental stores. Lakme is economical as compared to its competitor foreign brands. Accordingly if Lakme increases its price it may lose its customers and thus its pricing is the main competitive advantage it has over other brands which are highly priced. Another strong point of Lakme. Lakme enjoyed a market share of 52% at one time as the consumers didn't have many choices but as the foreign brands like Revlon and Maybelline came in. This was primarily due to the fact that consumers now had easy access to high quality products and with rising disposable income and size of the Indian middle class consumers shifted their attention to foreign players. Lakme products are priced in such a way that mass market can buy it. 16 . Lakme has over the years built a brand that has got a special place in the hearts of Indian women.1 COMPETITIVE ADVANTAGE Lakme is a brand that epitomizes the feminity of Indian women. The major reason they attributed to this was that it was the first cosmetic brand in India which was particularly catering to the need of Indian women and thus set a trend for the foreign players to tap the Indian market. it lost its position initially. Thus its customers feel that Lakme is a healthy choice in order to keep a healthy and beautiful skin. The various advertisements of Lakme try to tell their consumers that they provide them with a complete solution for their beauty enhancement. both. Lakme‘s advertising is it‘s another important benefit. television advertisements by the company‘s brand ambassadors. shades and products from time to time. managed to gain its position back. Lakme now however leads with sales of Rs 100 crores in market and can be considered as a best preferred and sold product in the overall cosmetic market due to the advantage it has over its competitors.5. But however Lakme still. most importantly Lakme salons whereby all Lakme products are available has helped it to increase its market share. This was attributed to the length and depth of its product mix. 5. Lakme advertises every new product it launches carefully so as to ensure that it is noticed by the mass. It was the first cosmetic brand in India that captured the imagination of consumers. malls. Today also it is said that it is a trendsetter in cosmetics as it keeps on coming out with novel colours. This particular aspect has never been harped upon by Lakme in its advertisements.
3 PRICE RELAED DIFFERENTIATION 12 COMPETITIVE PRICE: LOREAL L‘OREAL HAIR CARE L‘OREAL CLEANSER L‘OREAL TONER SUNSCREEN LOTION MOISTURIZER LAKME LAKME HAIR CARE LAKME CLEANSER LAKME TONER SUNSCREEN LOTION MOISTURIZER = 120-195 = 45-75 = 85 = 80-150 = 90-160 = 175-210 = 480 = 370 = 830 = 590 1 2 http://corallista.000 stores. This is truly.2 KEY DIFFERENTIATOR FOR SUCCESS OF THE BRAND Lakme‘s key differentiator is that they provide the best of Unilever technology on skincare range and their partnership with Milan-based Intercos Italia. the leading creator of new cosmetics technology and fashion trendsetter for global beauty brands. is its reach.experts say. 5. This enables Lakme to combine the best available International cosmetics technology with an in-depth understanding of the Indian woman's needs to create relevant and innovative beauty products and services. the ‗best of both worlds‘. 5. With a retail reach of close to 1000 counters and an overall direct reach of 40.com/loreal/ 17 .urbantouch.com/2011/11/25/lakme-absolute-range-now-in-stores-price-range-update/ http://www. This large presence gives the brand volumes and makes it the largest cosmetics brand in India. Lakme is one of the most widely available brands.
Lakme beauty training academy in Mumbai. global technology WEAKNESS High service costs Use of hard chemicals OPPORTUNITIES Brand growth through increased consumption depth Growth in business of beauty salons.mbaskool. THREATS Aggressive price competition from local and multinational players Availability products Reports regarding presence of Lead in lipstick of cheap beauty 3 http://www. SWOT ANALYSIS OF LAKME 3 STRENGTHS High quality man power Brand name Vast range of products and services Distribution channel Unilever capability.html 18 .6.com/brandguide/fmcg/913-lakme. Chennai and new Delhi.
1 COMPETITION The Indian cosmetic market. from just creams and moisturizers. driving up value growth. which has been traditionally a stronghold of a few major Indian players like Lakme. and Ponds has seen a lot of foreign entrants to the market within the last decade. HLL and Revlon were the first to introduce small pack sizes. Revlon introduced its small-range of 8 ml nail polishes and lipsticks. Beauty counsellors or advisors at retails outlets have been very successful in gaining attention. liquid lip colour. and was soon followed it its strategy by major Indian companies as well. 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. and long-stay lipsticks being introduced. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time. Sunscreen lotions. many cosmetic companies launched their products in smaller pack sizes to make them more affordable. India is a very price sensitive market and the cosmetics and personal care product companies. Stiff competition in the cosmetics and market also saw an increase in the range of new products being introduced for newer application concepts in the last few years. Fairness creams. The colour cosmetics market saw new products such as smudge-proof lipsticks and mascaras. there has been an upgrade to value-added products such as : Under-eye wrinkle removing creams. and 19 . Dark circle removing creams toners. such as point-of-sale advice and beauty counselling have shown to boosts sales of cosmetics and personal care products and driven growth in the Indian market. COMPETITION AND CHALLENGES IN COSMETIC INDUSTRY 7. 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 them. These specialized applications led to growth in volumes and also enabled companies to price the products at a premium. creating product awareness and overcoming consumer‘s lack of familiarity with.7. Service marketing strategies. In the skin-care segment.
constant product innovation and quality improvement. where the duty has been reduced to 12. there is no organized cosmetic industry body that can take up the issue with the government. However. lipsticks and nail polish. L'Oreal markets its range of specialized hair care products exclusively through salons and beauty parlours. 20 . Thus today the grey channel makes up about 60% of the Indian cosmetics market. where pricing can vary from 30–70% from Indian product pricing. Some companies such as Lakme have even set up exclusive Lakme beauty salons at major cities in India through the franchisee route. Another company. Ponds established consumer advisory cells and through touch screen counters and telephone help-lines offers advice on skin care. shampoos. There are small retailers in the market who directly import from markets such as Dubai. good distribution network. Most vendors add the duty to the product pricing to generate the right revenue. skin care. The Indian duty structure on imported products can pose a major deterrent to multinational vendors.2 CHALLENGES IN COSMETIC INDUSTRY While the market seems impressive. Major herbal cosmetics brands such as Shahnaz Hussain and Biotique also operate chains of salons through franchisees and offer specialized training courses to customers. Despite the new value added taxation regime. A strong brand promotional campaign. This in turn reflects in the pricing of the products. and the ability to provide a variety of quality products are some of the major reasons for the success of most companies.fears about many cosmetics and personal care products such as home hair permanents and colour cosmetics. The company was also the first to introduce modern hair colour and shampoos for coloured hair in the Indian market. there are hurdles that impede growth. L'Oreal currently is the only company in the market that has a hair colour range tailored exclusively for parlours. Companies continue to innovate on selling methods. 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. Popular Indian brand. the overall duty on the product still comes to about 40%. Baccarose. 7. In fact this leads to the biggest threat —the unorganized or grey channel.5%. HLL. owners of the Chambor brand organizes tea party make-up sessions at major Indian cities.
Women all over the world are always expected to look good and Indian women are no exception. Lakme was the first major beauty brand in India and takes pride in being the expert on Indian Beauty for over 50 years. which is the largest span of outlets with ―Beauty Advisors‖ in the country. concept of personality groups and the concept of perpetual selection.8. This means that the consumers of Lakme have an impulsive drive for which they seek immediate satisfaction without concern for means of satisfaction. Thus it becomes but natural for Indian women to try and look good and use beauty products that help 4 http://cosmetics.htm 21 . One of the reasons for its survival would also be the way in which it influences its existing and potential customers. Its bond with beauty and fashion is manifested through the Lakme Fashion Week. expressive. CONCEPT OF EGO Lakme tries to position itself on the basis of its appeal to the consumers which have an ego. Lakme influences its customers through the concept of Ego. beauty and sensuality. original. Lakme inspires her to unleash the potency of her femininity. Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman.com/1/rise_indian_beauty_market. They help the Indian woman in expression of her best self – sensual.indianetzone. alive and intuitive. More so because of the fact that Indian women in general do not have a fair skin like that of their western counterparts. which is now the largest fashion event of its kind in the country. Lakme has a foot print of over 1200 assisted sales outlets. skin care & hair styling products and extending to beauty services through the network of Lakme Beauty Salons. It is complete beauty brand spanning colour cosmetics. REASON FOR LAKME’S SURVIVAL IN THIS CUT THROAT COMPETITIVE COSMETIC INDUSTRY 4 ―Lakme is the Indian woman‘s Beauty Sutra‖ – inspiring expression of her unique beauty and sensuality.
but India‘s biggest beauty brand has tried hard to go the premium way.e. Women always appreciate if someone calls them beautiful and it has become the custom of the society to see women in such a context. Some call it the ‗Air Deccan of the cosmetics industry‘. Needless to say that Lakme plays on the concept of women wanting themselves to be appreciated for their beauty and being loved for that. CONCEPT OF PERSONALITY GROUPS: Lakme tries to woo the compliant consumers i. The Fashion Week has been a part of India‘s biggest cosmetics brand‘s strategy to go in for an image makeover – from a brand of the masses to the preferred brand of the classes as well. wanted and appreciated. As is earlier stated women are supposed to look good not only in western countries but also in India. packaging and attractive print advertisements. The major reason for its survival is its journey from leading mass market brand to the leading premium market brand. With globalization and liberalization of Indian economy and the changing demographics and income levels there is more and more concern to look good as today's Indian woman is no longer confined to her home but is a big contributor to the growth of Indian economy. So it would be prudent to say that according to the societal norms a women has to look good at all times and which has a bearing on the psychology of female consumers towards cosmetic products which help them achieve that desired look. If we look at the line extensions of Lakme than we would observe that it is in almost all the segments of cosmetic care ranging from hair care to skin care to beauty salons! Looking at the product depth it is pretty evident that Lakme has actually tried to fill in all areas that it can. CONCEPT OF PERPETUAL SELECTION: On the basis of perceptual selection Lakme has tried to position itself among its consumers in the following way: Lakme has tried to gain the attention of its consumers by line extension and having more and more product depth. they try to target people those who have desire to be loved. Lakme association with the 22 . particularly the nail paint and the lip colour segment is a big hit among Indian women as it offers them a wide variety of products in terms of colours as well as various styles that they can choose from.enhance their looks and style.
regular cosmetics users are moving from the masstige to the premium and prestige brands. Experts say what went against Lakme in its bid to take on the likes of L‘Oreal and Revlon is its image. The association with Fashion Week has helped Lakme to traverse the entire spectrum from the mass-end to the premium. The encouragement to go the premium way increased when the Lakme‘s high end products started contributing a considerable amount to Lakme‘s overall revenue. The premium is a Rs 300 crore category with players like Estee Lauder. the 88 Lakme Beauty Salons. Cosmetic is an Rs 2000 crore market. The journey to become a leading premium cosmetics brand in the Rs 500-700 crore modern retail market is proving to be a long haul. out of which the mid-premium is a Rs 1000 crore category where L‘Oreal is the market leader. Consumers who enter the market for the first time usually choose among Lakme.‖ Further. unlike other cosmetic brands. L‘Oreal. And here L‘Oreal has the largest market share. ―Lakme still was the Air Deccan of the Indian cosmetics industry. 23 . which offer consumers a ‗Beauty Sutra‘ experience. and now the recently-launched Lakme Studio. Lakme over the last five years has been losing market share in the modern trade format.Lakme India fashion week started 10 years ago when a survey by Hindustan Unilever. All what was needed was to create two distinct brands and formulate separate strategies for the masses and the classes which Lakme did with the brands like Elle 18 and Orchid. Shisiedo and Lancome and the mass segment is a Rs 700 crore market where Lakme is the market leader. Chambor and Maybelline. The major reason for this association was a thought that Fashion and cosmetics go well together. showed that the youth perceived Lakme to be their mothers‘ brand. Its image of a budget brand for the masses was difficult to shed. Lakme has since graduated to become the co-host of the Fashion Week along with IMG. But not everyone was convinced whether these efforts have been enough for the brand to make a lasting impression in the premium space. a sports and fashion events management company. ―The prestige and premium categories have higher growth as compared to th e masstige segment. which had then acquired the brand from the Tata‘s. were all part of those efforts to become a premium brand and get an international look. The Fashion Week. With the increasing number of new brands now available in the Indian market.
CONCLUSION Lakme‘s bid for the premium segment got a major push when Lakme Salon launched a first-of-its-kind Lakme Studio in Delhi which offered ultra-premium beauty services. its economical pricing strategy. Lakme is one of the most widely available brands. Lakme‘s focuses only on Indian markets and they are the market leader in this sector and will continue to sustain leadership only in Indian markets rather taking the brand in the global markets. experts say.9. With a retail reach of close to 1000 counters and an overall direct reach of 40. Lakme‘s wide range of products for entire market segment. its right brand positioning. Lakme still occupies a special place in the hearts of Indian women 24 . The strong point of Lakme. when most multinational beauty products are available in India.000 stores. availability in the local kirana and the drug stores to the departmental stores and now also on the internet is an example of its wide distribution network and its massive promotion mix acts as its success factor in becoming India‘s largest cosmetic brand. And even today. is its reach. It has almost survived the competition from the market leaders in that category. This large presence gives the brand volumes and makes it the largest cosmetics brand in India. Lakme Studio has tied up with Nail Spa that uses the latest nail technology from the US to bring a bouquet of services like nail extensions and nail art. Thus Lakme being a mass market brand has almost on a verge to also become a prestige market brand.
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