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Lakm is an [[India] brand of cosmetics, owned by Unilever and run by CEO Anil Co!ra"
Lakme started as a #$$% subsidiary of &ata Oil 'ills (&omco), !art of te &ata *rou!+ it was
named after te ,renc o!era Lakm, wic itself is te ,renc form of Laksmi, te -oddess of
wealt, also renowned for er beauty" Indian cosmet Lakme was started in #./0, famously
because te ten 1rime 'inister, 2awaarlal 3eru, was concerned tat Indian women were
s!endin- !recious forei-n e4can-e on beauty !roducts, and !ersonally re5uested 267 &ata to
manufacture tem in India" 8imone &ata 9oined te com!any as director, and went on to become
its cairman" In #..: &ata sold off teir stakes in Lakm Lever to ;LL, for 6s 0$$ Crore(</
million U8=), and went on to create &rent and >estside" Even today, wen most multinational
beauty !roducts are available in India, Lakme still occu!ies a s!ecial !lace in te earts of Indian
Lakme also started its new business in te beauty industry by settin- u! Lakme ?eauty
8alons all over India" 3ow ;UL (;industan Unilever Limited) as about ##$ salons all over
India !rovidin- beauty services" Lakme@ as been ranked as <At most trusted brand in India
by &e ?rand &rust 6e!ort &e com!any is te title s!onsor for Lakme ,asion >eek(L,>) a
biBannual fasion event wic takes !lace in 'umbai"
&is cosmetics and !ersonal care industry as been -rowin- at an avera-e rate of 0$ !er
cent for te last few years" &e -rowin- Indian cosmetics market offers !romisin- !ros!ects for
international brands" &e -rowt rate in te cosmetics market reflects an increasin- demand for
beauty care !roducts in India" 1erfumes and fra-rances, skin care, and air care !roducts are
some of te ma9or se-ments wit !romisin- !ros!ects for U"8" com!anies"
1enetration of most cosmetic and toiletries is very low in India" Current consum!tion of
many !roducts is well below tat of many countries in Asia" &e low market !enetration of
many cosmetics and !ersonal care !roducts offers room for -rowt" &e Indian toiletries market
is well develo!ed and dominated by ma9or multinational com!anies and a few lar-e Indian
&e urban !o!ulation wit increasin- !urcasin- !ower is te ma9or force drivin-
demand for cosmetics and toiletries" India is a very !riceBsensitive market and massBmarket
!roducts constitute te ma9or !art of te cosmetics and toiletries market" IndiaCs im!ort of
cosmetics and toiletries and intermediate raw materials is around U8= #0$ million, of wic
te U"8"
Market Overview
&e current siDe of te Indian cosmetic market is a!!ro4imately U8= :$$ million" Of tis,
te fastest -rowin- se-ment is cosmetics, accountin- for around U8= :$ million of te market"
Industry sources estimate a ra!id -rowt rate of 0$ !ercent !er annum across different se-ments
of te cosmetics industry reflectin- an increasin- demand for all kinds of beauty and !ersonal
care !roduct" *rowt as come mainly from te low and mediumB!riced cate-ories tat account
for .$ !ercent of te cosmetics market in terms of volume"
Even wit a 0$ !ercent avera-e -rowt rate, te !er ca!ita consum!tion of cosmetics is
very low in India" Current !er ca!ita e4!enditure on cosmetics is a!!ro4imately U8= $":E cents
as com!ared to U8= F:":/ in oter Asian countries" ;owever, wit can-in- lifestyles, i-er
dis!osable incomes, increasin- advertisin-, !enetration of satellite television, awareness of te
western world and -rowin- im!ortance of beauty !a-eants, tere ave been si-nificant can-es
and use of cosmetics is on te rise" Also, wit te boom in te Indian fasion world and te
-rowt in te television industry, tere as been a rise in demand for !rofessional beauty care
!roducts" Cosmetic com!anies in India are !lacin- increasin- em!asis on market researc and
tar-etin- new market se-ments suc as teena-ers, men and youn- women" Cosmetics constitute
te i- -rowt se-ments" 3ail enamels and li!sticks account for around :/ !ercent of total
color cosmetic sales in India" Lakme, a brand ori-inally introduced by te &ata -rou! of India,
now bou-t over by ;industan Lever (;LL) of te Unilever -rou!, &i!s G &oes, anoter
domestic !layer, and 6evlon dominate te U8= :$ million color cosmetics market"
'ultinationals, 6evlon of te U"8" and L@Oreal@s 'aybelline as a dominant sare of te small
!remium li!sticks and nail enamels market" 'assBmarket !roducts account for a ma9or sare,
wile te !remium se-ment accounts only for a mere . !er cent in li!sticks and / !er cent in
nail enamels" Li!sticks account for nearly a tird of te market at U8= 0# million, wile te
market for nail enamels is estimated at around U8= 0F million" &e color cosmetics se-ment is
very com!etitive and as a i- !enetration level of E$ !ercent" 'ost oter cosmetic !roducts
are estimated to be used by less tan <$ !ercent of te consumers"
Market Trends
Cosmetics are not 9ust te domain of women any lon-er and Indian men too are
increasin-ly takin- to te use of more and more body s!rays, !erfumes and oter cosmetics"
>it risin- demand from men, te Indian market is -ettin- enlar-ed and many !layers are
comin- out wit cosmetic !roducts es!ecially skin care !roducts for men"
Import Market
Costs for im!ortin- !roducts are muc i-er tan !roducin- it in te country" India
allows entry of im!orted cosmetics witout any restrictions but te avera-e im!ort tariff on
cosmetics !roducts is currently very i- at F."0 !ercent" &is makes im!orted !roducts very
e4!ensive for most consumers" 'ost forei-n cosmetics com!anies sellin- !remium brands ave
ad a difficult time develo!in- te low volume !remium market in India" 'any ad to reBwork
!rice strate-ies towards te mass se-ment" 1rice is not te only reason res!onsible for teir
!roblems" 1oor assessment of te siDe of te u!!er middle and i-Bincome -rou!s, and !rice
sensitivity even witin tese -rou!s, ad added to teir !roblems"
Objective of the Project
&e !rimary motive is to understand te brandin- strate-ies and of
tecom!any to !romote its 3o" # in cosmetic"
&e secondary motive is to understand ow te com!any overcomes te
callen-es !ut forward by te rival com!anies on com!etition !romotion and marketin- strate-ies
of its !roduct

&e researc is based onHB
1rimary 7ata
8econdary 7ata
#"Internet0"Com!any 6e!orts G ?roacersF"'a-aDines<"3ews!a!ers Articles G 2ournals7ata is also
-atered by talkin- to te res!ondents (&ar-et Audiences,understandin- teir beauty needs, wat as!ire
tem to -o for te brand"Also te level ofHB#)?rand awareness0)1rice level,F)Jisibility of
brand !ersonality<)E4!ectancy of communicationAll tese factors were te !rime criterion for selectin-
(wic brand), sort listin-and rankin- (level of trustwortiness or most favoured) wic ad el!ed us
foridentifyin- te winner in cosmetics industries
Research esi$n
&e researc desi-n is te s!ecification of metod and !roducers for ac5uirin- te
information needed" It is te framework, wic determines te course of action toward te
collection and analysis of re5uired data" &is framework is to ensure tat te relevant data are
collected accurately in an economic manner"
ata Co%%ection & Primar' ( Secondar')
7ata was collected from bot !rimary and secondary sources" ,or collectin- !rimary data
consumer survey as conducted in yderabad city wit te el! of a !redetermined
5uestionnaire" Kee!in- in view te nature of study, 5uestionnaire metod is found to be most

It was im!ossible to -ater te current sales of MLakmeC and te currentbrandin- strate-y
a!!lied by te com!any because as a !art of secret information of te com!any tey ave not
disclosed it"
It was also not !ossible to know te to! !osition in te sales of cosmeticstis year, as te com!any
as still not come u! wit its facts and fi-ures