CONCEPT OF MARKET SEGMENTATION

“Market segmentation is the process of dividing a market into distinct subgroups of consumers with distinct
needs, characteristics, or behavior, who might require separate products or marketing mixes.” (Philip
Kotler).

Market segmentation is the identification of portions of the market that are different from one another
.Segmentation allows the firm to better satisfy the needs of its potential customers .The marketing concept
calls for understanding customers and satisfying their needs better than the competitors .But different
customers have different needs ,and it is rarely impossible to satisfy all customers by treating them alike
Mass marketing refers to treatment of market as a homogenous group and offering the same marketing mix
to all customers .Mass marketing allows economies of scale to be realized through mass production ,mass
distribution and mass communication .The drawback of mass marketing is that customer needs and
preferences differ and the same offering is unlikely to be viewed as optimal by all customers. If firm ignored
the differing customer needs, another firm likely would enter the market with a product that serves a specific
group, and the incumbent firms would lose those customers.

Target marketing on the other hand recognizes the diversity of customers and does not try to please all of
them with the same offering. The first step in target marketing is to identify different market segments and
their needs.

This project aims to study market segmentation strategy of Lakme with special reference to product Lakme
lipsticks.

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BASES FOR SEGMENTATION

Lakme lipstick market is a consumer market. Consumer market can be segmented on the following
customer characteristics.

CONSUMER MARKET

GEOGRAPHIC DEMOGRAPHIC PSYCOGRAPHIC BEHAVIORAL

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Geographic Segmentation

Geographical segmentation divides markets into different geographical areas. Marketers use geographic
segmentation because consumers in different areas may display certain characteristics and behaviors in that
particular region.

The following are some examples of geographic variables often used in segmentation.

 Countries
 Nations
 States
 Regions
 Cities
 Neighborhoods

3
Demographic Segmentation

Demographics originate from the word ‘demography’ which means a ‘study of population’.

Some demographic segmentation variables include.

 Age
 Gender
 Family size
 Family lifecycle
 Generation: baby-boomers, Generation x etc.
 Income
 Occupation
 Education
 Ethnicity
 Nationality
 Religion
 Social class

As people age their needs and wants change, some organizations develop specific products aimed at
particular age groups. Gender segmentation is commonly used within the cosmetics, clothing and
magazine industry. Many of these variables have standard categories for their values. For example,
family lifecycle often is expressed as bachelor, married with no children (DINKS: Double Income No
Kids), full nest, empty-nest, or solitary survivor. Some of these categories have several stages, for
example, full nest I, II or III depending on the age of the children.

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Psychographic Segmentation

Although demographic segmentation is useful, marketers can use alternative segmentation variables which
aim to develop more accurate profiles of their target segments. Psychographic segmentation groups
customers according to their lifestyle. Activities, interests, and opinions (AIO) surveys are one tool for
measuring lifestyle. Some psychographic variables include.

 Activities: Activities indicate how a consumer/family spends his/her/their time.

 Interests: Interests are a family or consumer's preferences or priorities.
 Opinions: Opinions are how a consumer feels about a wide variety of events and things.
 Attitudes: Attitude refers to a person’s beliefs and feelings to act in certain way.
 Values: Values refer to family values or cultural values a person follow throughout out his or her life.

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Behavioral Segmentation

Behavioral segmentation is based on actual customer behavior toward products. Some behavioralistic
variables include:

 Benefits sought: Refers to benefit a consumer seeks from purchasing a product.

 Usage rate: Divides customers into light, medium and heavy users.
 Brand loyalty
 User status: potential, first-time, regular, etc.
 Readiness to buy
 Occasions: holidays and events that stimulate purchases

Behavioral segmentation has the advantage of using variables that are closely related to the product itself.
It is a fairly direct starting point for market segmentation.

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INDUSTRY PROFILE

Cosmetic industry-the burgeoning Indian cosmetic industry is worth around Rs.1200 crore, with the
organized sector accounting for a share of Rs.500 crore and the rest being with the unorganized segment.
while the total cosmetic market is growing at a rate of 20% per annum, the new back- to- nature fad is
expanding the herbal cosmetics segment to grow at a phenomenal rate of 70%.A decade ago, the upper
segment of the cosmetic market was firmly in the grip of Lakme whose creams, lipsticks and blush adorned
many an Indian face. It was challenged by tips &toes when the company started offering qualitative product
at competitive prices. And the attraction of a potentially lucrative market lured a plethora of companies, big
and small, to jump into the fray.

Of late, the market has been witnessing the lot of hectic competition. Indian companies are being forced to
defend their position as more internationally famous brands come into the Indian market. Revlon
International, Avon, Garnier laboratories and Oriflame etc, have entered Indian market through different
joint ventures.

MARKET SHARE OF LAKME PRODUCTS

5%
10%

35% Lakme
Revlon
21% Maybeline
Loreal
Other

29%

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HISTORY

Way back in the early 1950s, an economic survey of spending in India revealed that Indian women were
splurging on imported cosmetics. Nehru was not very happy because it was affecting the forex reserves.
Maintaining the forex reserves was of utmost importance considering the fact that Indian economy was still
in its nascent stage. Nehru hit upon the idea of a home grown beauty brand which would cater to cosmetic
needs of Indian women.

It was a challenge of its kind because it had to fulfill the needs of “Indian skin” in which foreign brands fell
short and at the same time, have a brand identity which would appeal to the upper middle class women who
were really the ones splurging on expensive foreign branded cosmetics.

Nehru knew that only JRD Tata had the passion and entrepreneurship skills to tackle the above challenges
and personally requested him to come up with a solution, which he readily accepted.

Doing market research to find out the needs of Indian women and hiring experts & chemical engineers
from the beauty industry was not really a challenge for JRD but coming up with a brand identity certainly
was. Finally, after giving it a lot of thought, he named it “Lakmé” after the French Opera.

The reason he chose this particular French opera name was because “Lakmé”
derives its name from Sanskrit for “Lakshmi”, the goddess of wealth and epitome of beauty. It was the
perfect name for the company as it was actually bringing wealth to the nation (by saving precious forex),
could correlate itself very well with the beautiful Goddess and it appealed well to upper middle class women
due to its videshi sounding name (“Lakshmi lipstick” or “Lakshmi eyeliner” would have sounded very desi).

That was the kind of thought process which went into any job which JRD Tata took up and the results were
always exemplary. Lakme was started in 1952 as a 100% subsidiary of Tata oil mill. It was a hugely
successful brand and the rest is history. Simone Tata joined the company as director, and went on to become
its chairman. In 1996, Tata sold its stake in Lakme to HLL since it felt that HLL being an FMCG company
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will do better justice to the company and HLL have continued to efficiently nurture the brainchild of JRD.
Even today, when most multinational beauty products are available in India, Lakme still occupies a special
place in the hearts of Indian women.

COMPANY LOGO

COMPANY TAGLINE

Look beautiful, feel beautiful.

BRAND OVERVIEW

Lakme has successfully developed a brand with clear international vocation, renowned for the quality of its
products, its close working relationship with professionals from around the world and their innovative
contributions on application techniques.

At the present time the Lakmé brand boasts over 300 products, used in professional hair salons in over 70
countries around the world and present each year at the most important international fairs. Thanks to the
intense research into new formulas, techniques and styles, inspired by the latest advances in international
hairstyling, it is a company in expansion.

In the Brand Trust Report 2012,Lakme was ranked 104th among India’s most trusted brands and
subsequently, according to the Brand Trust Report 2013,Lakme was ranked 71 st among India’s most trusted
brands according to the Brand Trust Report 2014,a study conducted by Trust Research Advisory, a brand
analytics company.

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COMPANY PROMOTIONAL ACTIVITIES:

Lakme Salon

With over 100 franchised outlets across the country, Lakme has earned years of experience as a successful
franchisor. Lakme continuously innovates to offer a wide range of high quality skin care products, color
cosmetics and beauty services. In addition to leveraging Unilever’s worldwide expertise, Lakme also
partners with the trendsetters for global beauty brands, the Milan-based intercos Italia as well as Paris based
Fiabila. Combining international cosmetics technology with an in-depth understanding of the Indian
women’s needs, Lakme offers its consumers a holistic beauty experience through its products and services at
the Lakme Beauty Salons.

Lakme Fashion Week (LFW)

Lakme Fashion Week (LFW) is a bi-annual fashion event that takes place in Mumbai. Its Summer-Resort
show takes place in February whiles the Winter-Festive show takes place in August. It is considered a
premier fashion event in India.It is run by Fashion Design Council of India (FDCI) and the title sponsor is
Lakme.

A model showcasing at the Lakme Fashion Week 2010

The event first took place in 1999 and international models such as Naomi Campbell as well as Indian film
stars such as Deepika Padukone, Malaika Arora Khan, and Arjun Rampal have participated in it.
International labels that have taken part in LFW include Louis Vuitton, Dolce & Gabbana, and Roberto
Cavalli. Among Indian designers, Manish Malhotra, Rohit Bal, Tarun Tahiliani, and Ritu Beri have taken
part in the event.The event has been responsible for launching the careers of designers such as Sabyasachi
Mukherjee

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Lakme on facebook

With almost 19.25 lakhs Facebook fans, of which a little over 39,000 actively engage in discussion, Lakmé
has a pretty strong Facebook presence. The brand has used a nice mix of image and video updates from its
events, make up tips, and contest, which has helped it maximize its reach among Facebook Users

Lakme on twitter

Like Facebook, Lakmé is also significantly active on Twitter, in recent times, even though the number of its
total fans is barely 10 thousand. But that could be because of some wrong decision taken in the past. At the
moment, the brand is going strong and causing some real conversation on the micro-blogging website.

Lakme on youtube

The brand is also active on YouTube. It has more than 14,000 followers, with total video views of more than
82 lakhs, which is a respectable number in its own right. While many of its videos have not crossed a 1 lakh
view count, some of them have recorded way beyond that.

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LAKME LIPSTICKS
Lakme offers lip liners, lip glosses, lip balms and a great range of lipsticks.Few details about the whole
lipstick range.

Lakme Absolute Gloss Addict

Price: INR 800

Net Wt: 4 ml

These were launched in June 2014 along with some nail paints and skin care products to feature in
this Gloss Addict range.

Lakme describes them as- “Join the gloss revolution! Get addicted to the best of both worlds – Incredible hi-
shine of a liquid lip gloss & one stroke application of a lipstick. Introducing Lakmé Absolute Gloss Addict:
Created by backstage Experts at Lakmé Fashion Week for Runway-Ready lips in 15 Glamorous Shades!
Lakmé Reinvent. Professional High shine in a single stroke application.”

These have very creamy feel and a finish of a gloss, which is why these lip colors are not insanely
pigmented though few of them prove to be exception. The shades of this range are really pretty and a treat
for gloss lovers.

Lakme Absolute Lip Tints

Price: INR 800

Net Wt: 2 gm

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You just might wonder why we have a lip tint here. Well these are highly pigmented tints which do not
really look like that of a lip stain rather its offers color pay off like that of a lipstick. These are very
hydrating on lips which give all the more reasons to love these. Lakme says this about these lip tints- “These
thick creamy pencils in 8 pop shades deliver rich deep color and incredible shine in just a stroke, to give
your lips that pop like it should. A high performance make-up collection of lip tints in shades of summer,
including bright orange, vivacious pink and flaming red for that amazing “read-my-lips” pout. Rich color
delivery, Unique Pop Shades.”

Lakme Absolute Creme Lipcolor

Price: INR 675

Net Wt: 3.2 gm

If light weight, smooth texture, rich pigmentation and creamy finish are your desires for a lipstick, then you
surely need to check out the Lakme Absolute Crème LipColor range. This range was a huge hit which is
definitely not something to be surprised about after all such fabulous 19 lipstick shades deserve popularity.
Lakme says about these- “This Luxurious lip color gives higher color delivery. Enriched with Vitamin E and
Wheat germ oil this rich creme stick keeps your lips silky, soft and smooth.”

Lakme Absolute Matte Lipcolor

Price: INR 525

Net Wt: 3.2 gm

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Lakme seemed keen on satiating demands of all kinds of customers and which is why it introduced matte lip
colors in its Absolute range. These lipsticks are absolutely matte with very rich color pay off and soft
texture. Lakme offers a total of 26 shades inclusive of 6 new shades. The new 6 shades are not easily
available and are usually out of stock.

Lakme says about these- “ Enriched with Vitamin E & Wheat Oil, Lakmé Absolute Matte Lipcolor keeps
your lips soft, smooth & silky with every application.”

Lakme Absolute Lip Sync: 6 in 1 Day & Night Palette

Price: INR 875

Lakme has a great lip palette too. Lip Palettes come in handy especially during travels and lakme sensed the
need of lip palettes. This lips palette consists of six lip colors and comes along with a dual end brush. These
lip colors are wearable during both day and night.

Lakme 9 To 5 Matte Lip Color

Price: INR 400

Net Wt: 3.6 ml

This is an exclusive lipstick range especially dedicated for working women. These lipsticks come in subtle
shades perfect for office wears, are not very dry and are long staying. This range has a total number of 38
lips colors to offer. Lakme says – “Lakmé Nine to Five brings you a range of 15 shades that sit on your lips
all day long. Enriched with Vitamin E; it conditions your lips & softens them with wheat germ oil. So, perk
those soft, smooth lips with a touch of matte.”

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Lakme Enrich Satin Lip Color

Price: INR 230

Net Wt: 4.4 ml

The Lakme Enrich Satin Lip Color needs no introduction. These are the most popular and affordable lipstick
of Lakme and the color range is immense. Lakme offers 70 different shades in this range. These are velvety
smooth, densely pigmented and soft textured lippies.

Lakme Lip Love Lipstick

Price: INR 725

Lakme offers 12 shades in this range. The USP of these lippies is the SPF 16 and Collagen content in them.
These are hydrating on lips and come in adorable packaging.

Lakme Aquashine Lip Color

Price: INR 550

Net Wt: 2.55 ml

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This is a uniquely conceptualized range which features the color of lip stick, shine of lip gloss and comfort
of lip gloss, all together in a single tube. A total of 14 shades come in this range, which give luscious long
lasting color to supple pouts.

Lakme 9 To 5 Crease-Less Lipsticks

Price: INR 450

These are the recent launches of Lakme and are an addition to their 9 to 5 range but with a variation. These
lipsticks claim to be creaseless and have a soft creamy texture. These have SPF 15 and claim to keep lips
nourished. A total of 20 shades come under this category.

Elle 18 Color Pop Lipstick

Price: INR 120

This exciting & funky range of color cosmetics has been specially designed for young trendy girls. Packaged in cool
bottle shapes, the Elle 18 color bombs are little goblets specially designed to deliver a pop of rich intense colors. With
the goodness of Cocoa butter, Jojoba Oil, Rose Water and Almonds, the Elle 18 range of cosmetics offers consumers
an array of bright colors to complement any outfit. The super cute range not only looks good but feels great to carry
along  anytime anywhere.

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The study is carried out with following objective

1. To study proper strategy for marketing Lakme lipstick

It aims to study appropriate marketing strategies and promotional schemes for lakme lipsticks that suits
the tastes of the individuals of a particular market segment. It also aims to relate products to the target
segments

2. To understand the need of target customers for Lakme lipstick

The study aims to understand the needs of the target audience and adopt specific marketing plans
accordingly. Lakme can adopt a more focused approach for its product lipstick as a result of market
segmentation.

3. To differentiate customers for product

Lakme lipstick varies between Rs 120 to Rs 800.Thus middle class and upper class can afford these
products. This study aims to understand the behavior pattern of these classes and to target them
accordingly. The study also aims to understand their buying decisions.

4. To identify the customers

This study aims to identify customers for Lakme lipstick. For e.g. women of all age do not use lipstick
products. Thus study aims to identify customers for the product to target them.

5. To study the product effectively

This study aims to help Lakme to know and understand their customers better. It aims to enable it to
reach a wider audience and promote their products more effectively. Its objective is enabling Lakme to
concentrate their hard work on the target audience and get suitable results.

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1. This study will help the marketers of Lakme lipstick to spot and compare marketing opportunities. It
will also help them to examine the needs of each segment and determine to what extent the current
offering satisfies these needs. Segments which have low level of satisfaction from current offerings
represent excellent opportunities for the marketer.
2. This study will help to provide knowledge about different segments, which will help the marketer to
better allocate the total marketing budget. Differences in customer response to different marketing
tools serve as the basis for deciding on the allocation of market funds to different customer groups.
3. This study will help the marketer’s of Lakme Company to modify their product service and
marketing appeals to suit the target segment.
4. This study will facilitate Lakme in setting up of realistic selling targets and priorities.
5. This study will help management to identify new profitable segments which deserve special
attention.
6. This will help the company to deal with competition more effectively by using resources more
effectively.
7. This study will also help to develop appropriate service packages for each market segment.

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1. Segmentation increases costs. When a firm attempts to serve several market segments, there is a
proliferation of products. Cost of production rises due to shorter production runs and product
variations.
2. Larger inventory has to be maintained by both the manufacturer and the distributors.
3. Promotion and distribution expenditures increase when separate programme are used for different
market segments.
4. When characteristics of a market segment change investment made already might become useless.

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RESEARCH DESIGN

A research design is an arrangement of conditions for collection and analysis of the data in a manner that
aims to combine relevance to the research purpose with economy in procedure.

The study is descriptive in nature i.e. descriptive research. Descriptive research is concerned with
describing the characteristics of a particular individual or group. This includes surveys and fact-finding
enquiries of different kinds. The main characteristic of this method is that the researcher has no control over
the variables; one can only report what has happened or what is happening. Thus, the research design in case
of descriptive study is a comparative design throwing light on all the areas and must be prepared keeping the
objectives of the study and the resources available.

SAMPLING METHOD

The sampling method used was convenience sampling method. Convenience sampling involves the sample
being drawn from that part of the population which is close to hand.

POPULATION SIZE

The universe of the study consists of females (between 14 to 42 years of age) of Nagpur. The number of
respondents is 100.

DATA SOURCE

The research is based on:-

Primary data

1) Questionnaire

Secondary data

 Internet
 Company reports & broachers
 Magazines
 Newspapers, articles & journals

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In this report our null hypothesis and alternative hypothesis are stated below:

 Ho: Respondents are not satisfied with the quality of Lakme products.
H1: Respondents are satisfied with the quality.
 Ho: Respondents are not brand loyal.
H1: Respondents are brand loyal.
 Ho: Respondents are not satisfied with the prices of the Lakme lipstick.
H1: Respondents are satisfied with the prices of Lakme lipstick.
 H1: Lakme is not successful in its market segmentation policy for lipstick.
 H1: Lakme is successful in its market segmentation policy for lipstick.

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DEMOGRAPHIC SEGMENTATION

AGE:-

Expenditure on lipstick by different age group people

Table no-1

Sr.No. Age Group No of users out of 100

1 60~69 yrs 10
2 50~59 yrs 16
3 40~49 yrs 27
4 30~39 yrs 30
5 15~29 yrs 17
Total 100

No of users out of 100

35
30
25
20 No of users out of
15 100
10
5
0
60~69 50~59 40~49 30~39 15~29
yrs yrs yrs yrs yrs

INFERENCE

From the table and graph it is clear that number of users between the age group of 15 to 49 is more as
compare to 50+.Accordingly target customers for lipstick product is between 15 to 49 years of age.

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GENDER: - Targets female members of the society.

SOCIAL CLASS:-

 Upper class
 Middle class
 Lower class

Lakme should target these different class segment as per there income level, culture and values.

INCOME:-

Table no-2

Sr.no Income level(earning per month) Customers(expenditure on

lipstick per month)
1 10000~30000 100
2 31000~50000 300
3 51000~70000 500
4 71000~90000 700

5 91000~110000 900

INFERENCE

From the table it is clear that women with income level between31000 to110000 can afford to buy lakme
lipstick, since Lakme produce high price product which can be afforded by these income level groups. Thus
target customers for Lakme lipstick are middle class and upper class.

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OCCUPATION: -

Table no-3

Sr.no Occupation Customers

1 Student 33
2 Working women 45
3 House wife 22
Total 100

Customers
50
45
40
35
30
25 Customers
20
15
10
5
0
Student Working House wife
women

INFERENCE

It is clear from the above table and graph that student and working women are the frequent users of lipstick
product and thus provide good number of customers for lipstick product.

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GEOGRAPHIC SEGMENTATION

REGION

Region wise lipstick usage.

Lipstick usage
25

20

15
Lipstick usage

10

0
Bengal Gujarat Punjab Tamil

INFERENCE

From the graph it is clear that Bengal and Gujarat both states provide large market for lipstick in India. Thus
Lakme should open more retail shops in these states.

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CITIES

INDIA’S WEALTHIEST CITIES BY AVERAGE ANNUAL INCOME PER HOUSEHOLD

1000
900
800
700
600
500
400
300
200
100
0

Source: National Council of Applied Economic Research (NCAER)

INFERENCE

India’s top five wealthiest cities are Mumbai, Delhi, Kolkata, Chennai and Hyderabad, closely
followed by Bangalore .Lakme should target lipstick with different price range accordingly.

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RURAL Vs URBAN AREA:-

Table no-4

Particular Urban area (per month) Rural area (per month)

Average Cosmetic expenditure per 900 100
person

Average Cosmetic expenditure per person

1000
900
800
700
600
500 Average Cosmetic
400 expenditure per
300 person
200
100
0
Urban area Rural area (per
(per month) month)

INFERENCE

It is clear from the above table and graphs that cosmetic expenditure in rural area very low. Therefore target
market for lakme lipstick should be only urban area because of its high priced products.

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PSYCHOGRAPHIC SEGMENTATION

ATTITUDE

 Some buyers have compulsive buying attitude. This segment should be target of Lakme lipstick
products.
 Some buyers are experimental especially young ones. Lakme should try to attract them by providing
lipstick with large number of color option.
 Lakme should introduce simple lipsticks for plain people, colorful lipsticks for people who are happy
and full of energy and lipsticks that are exotic for the people who like crazy patterns.

ACTIVITIES

Buyers can be divided into following categories-

 Some buyers choose to live “belonging lifestyle which will be reflected in her wearing conservative
clothes, spending considerable time with her family and participating in social activities.
 Some buyers live active personal life and playing hard when comes to travel and sports.
Lakme should target both the type of buyers according to their taste and lifestyle.

In short the psychographic or lifestyle segmentation of a woman for Lakme lipsticks is as follows

 She is the kind of woman who loves life

 She is positive in her attitude towards life

 She has an individual  point of view and will act according to her whims

 She is well groomed

 She shops with her friends

 She shops for pleasure and on impulse

 Dressing up is a part of her normal routine

 She works hard but parties harder

 She is well travelled and is aware of the international brands

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 She is very quality conscious

 She is class conscious

 She is looking for variety more than anything else

 She needs to be made to feel special & unique

 She needs to be flattered and valued

 She wants to be seen at all the best places in town

 She eats at the best restaurants and parties at the best night clubs

 She is a regular party person

 She reads magazines like ELLE, COSMOPOLITAN etc

 She knows what she wants in life and knows she will get it eventually

 She is a fulfilled person

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BEHAVIORAL SEGMENTATION

OCCASION: -Lakme should introduce its product under two different categories

 Special occasion –Bright shades of lipstick for party wear.

 Regular occasion-Light and sober shades of lipstick for office wear.

BENEFITS:-Customers require lipstick which can last longer and give shine in single stroke. Lakme should
try to provide lipstick product with these features.

USAGE RATE:-Some customers are frequent users of lipstick. Lakme should target such customer through
different marketing policies.

USER STATUS:-

 Potential -Lakme should target non-users by informing them about various types of lakme lipstick
available in market to suit their requirement through advertisements, personal selling etc.
 First time -Lakme should encourage them through various marketing policies to buy more products
in future.

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  Regular –Lakme should understand their needs and customize its product according to their
requirement in order to retain them.

BRAND LOYALTY:-Many of the buyers purchase products of same brand name because of its image for
quality products. Such customers should be retain by lakme by providing them with quality products.

In the market following lipstick are available for different segments of society

1. LAKME ABSOLUTE GLOSS ADDICT

Features

 Gives Professional High shine in a single stroke application

 Available in 15 Shades
 MRP: Rs. 800

Target audience

GEOGRAPHICS:-

Region: Urban areas

DEMOGRAPHICS:-

Occupation: Students and Professionals

Income: 600,000 p.a +

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Education: Graduates, Post-graduates, professionals

Sex: Females

Religion: Insignificant

Social class: Upper.

PSYCHOGRAPHICS:-

Lifestyle:
She’s the new age generation, fashion conscious and takes care of her image. Cosmetics are a feel good
factor for her, which she showcases. She’s keeps up with the trends. She’s a conformist looking for a unique
twist, with a subtle narcissism about her.

BEHAVORIAL:-

Occasions: Going out (party, social events etc.)

User status: Regular

Benefits: Enhances beauty, unique colors, highest quality ingredients, Environment friendly packaging

User rate: Heavy users.

Readiness stage: Informed

2. LAKME ABSOLUTE LIP SYNC: 6 IN 1 DAY & NIGHT PALETTE:-

Features

 six sensational lip shades in one slender travel kit

 Palette includes day and night colors
 Two Sided Brush
 MRP:Rs.800

Target audience
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GEOGRAPHICS

Region: Urban Areas

DEMOGRAPHICS

Occupation: Professional Woman whose job is to travel

Income: 600,000 p.a +

Education: Graduates, Post graduates, Professionals

Sex: Females

Religion: Insignificant

Social class: Upper

Family life cycle: Single, married

PSYCHOGRAPHICS

Lifestyle:

She’s the new generation independent women whose job is to travel day and night. She is fashion conscious
and takes care of her image. Cosmetics are a feel good factor for her, which she showcases.

BEHAVORIAL

Occasion: Going out (business tours, adventure tours, etc)

User status: Regular

Benefits: Convenient to use during travelling, healthy looking lips on the go, unique colors, and highest
quality ingredients.

User status: Heavy users

Readiness stage: Informed

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 3. LAKME 9 TO 5 MATTE LIP COLOR:-

Features

 High performance color fix formula

 38 color shades suited for office wear
 Soft and smooth texture
 Matte Finish
 Vitamin E
 Wheat germ oil
 Travel friendly packaging
 MRP:Rs 400

Target audience

GEOGRAPHICS

Region: Urban areas

DEMOGRAPHICS

Occupation: Students and working women.

Income: 300,000 p.a +

Education: Graduates, Post-graduates, Professionals

Sex: Female

Religion: Insignificant

Social class: Medium

Family life cycle: Single, married

PSYCHOGRAPHICS

Lifestyle:

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She’s the new age working woman who is independent and earns income for her family. She may be
executive or may be from among general staff in office. She is fashion conscious and takes care of her
image. Cosmetics are a feel good factor for her, which she showcases.

BEHAVORIAL

Occasion: Going out (college, office, etc.)

User status: Regular

Benefits: Colors suitable to wear in office, provide long lasting effect, enhances beauty, unique colors,
highest quality ingredients, environment friendly packaging.

User rate: Heavy users.

Readiness stage: Informed

4. LAKME ENRICH SATIN LIP COLOR:-

Features

 Range of 70 shades
 Higher Color delivery
 Vitamin E
 Olive Extracts
 MRP:Rs230

Target audience

GEOGRAPHICS

Region: Urban areas

DEMOGRAPHICS

Occupation: Students and Working women

Income: 1, 50,000 p.a +

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Education: Graduates, Post-graduates, Professionals

Sex: Female

Religion: Insignificant

Social class: Upper, Middle

Family life cycle: Young, single, married

PSYCHOGRAPHICS

Lifestyle:

She’s the new age generation, fashion conscious and takes care of her image. Cosmetics are a feel good
factor for her, which she showcases. She’s keeps up with the trends and has her hand on the pulse of what’s
en vogue. She’s a conformist looking for a unique twist, with a subtle narcissism about her.

BEHAVORIAL

Occasions: Going out (college, office, party etc.)

User status: Regular

Benefits: Enhances beauty, Unique colors, Highest quality ingredients, Environment friendly packaging

User rate: Heavy users

Readiness stage: Informed

5. ELLE 18 COLOR POPS LIPSTICK

Features

 Easily available and affordable

 Cute and travel friendly packaging
 Very creamy texture and nice pigmentation
 Moisturizes the lips
 There are colors for everyone – Pinks, Reds and Browns match Indian skin tones very well. 
 Elle18 Color burst Lipsticks will go with all Skin types and all Ages.
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  MRP: Rs 110

Target audience

GEOGRAPHICS

Region: Urban areas

DEMOGRAPHICS

Occupation: Students

Income: 1, 00,000 p.a +

Education: Graduates, Post-graduates

Sex: Female

Religion: Insignificant

Social class: Middle

Family life cycle: Young, single

PSYCHOGRAPHICS

Lifestyle:

She’s the new generation young woman. She is fashion conscious and takes care of her image. Cosmetics
are a feel good factor for her, which she showcases. She’s keeps up with the trends. She’s a conformist
looking for a unique twist, with a subtle narcissism about her.

BEHAVORIAL
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Occasion: Going out (college, party etc)

User status: Regular

Benefits: Enhances beauty, Unique colors, Highest quality ingredients, Environment friendly packaging

User rate: Heavy users

Readiness stage: Informed

PROS OF LAKME LIPSTICKS

 Lakme provide wide range of lipstick shades.

 It provides quality products.
 Provide easy to handle products.
 Elle 18 products introduce by Lakme is easily available and affordable.
 Provide lipsticks fit for Indian outfits.
 Provide lipsticks with long lasting effect

CONS OF LAKME LIPSTICKS

 Lakme products are overpriced.

 It advertises its lipstick that they give long lasting effects but it’s some lipstick products fail in this
area.
 Its some products like Lakme enrich satin lipstick#160 are not at all suitable for Indian skin tones.
 It’s some lipstick products have very limited shades.

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1. Lakme lipsticks are overpriced. It should try to lower their cost.
2. In many of its lipstick products it provides very less shades of color. Thus it should introduce more
colors for such lipsticks.
3. For most of its products it advertises that they give long lasting effect, but they not. Lakme should
solve these problems.
4. It would be wise for the company to target young people by introducing more crazy shades in Elle
18.
5. Increase in channels of distribution is needed. Elle 18 is not a luxury product, thus it should be made
available in every cosmetic store.
6. Elle 18 is affordable products of lakme. Thus it should try to bring color shades in Elle 18 lipsticks
that are suitable for office wears or color shades that suit middle age woman.
7. As Elle 18 lipsticks are low cost products, it should make it available in rural market also.

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Market segmentation is very important for any organization. Segmentation allows the firm to better satisfy
the needs of its potential customer. During my research, I found that the segmentation of market by Lakme
for its product lipstick is quite satisfactory as Lakme is gradually coming up with products for different
segment of the society.

Though Lakme does not cater to the low level income group but the Elle-18 range it offers is low-priced and
hence can satisfy this end of the market also. Moreover Lakme understands the need of customization and
introduce products according to the convenience of its customers.

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Websites:-

www.lakme.com

www.market segmentation.com

www.market segmentation of cosmetic product.com

www.mba research project.com

Text books:-

 Marketing Management

(Dr.S.C.Gulhane)

 Research Methodology
(Dr.Pradeep .M. Navghare)

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 QUESTIONNARE

Respected Sir/Madam,

I am a student, pursuing M.COM from HISLOP COLLEGE, Nagpur .I am doing a project on “A STUDY
ON MARKET SEGMENTATION OF LAKME LIPSTICK”.I request you to cooperate in my research
study, by kindly filing up the following questionnaire.

Name: - Contact no:-

E-mail id: - Destination:-

Personal details

1. Age:

[a] under 20 [b] 20-26

[c] 26-32 [d] 32&above

2. Occupation:

[a] Student [b] Working woman

[c]Housewife

3. Monthly income:

[a] Below 10000 [b] Rs 10000-20000

[c] Rs 20000-40000 [d] Rs 40000 & above

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4. Do you use Lakme lipstick?

[a] Yes [b]No

5. For how long have you been using Lakme Lipstick?

[a]Less than a year [b] 1 year

[c] 2 years [d] Less than 5 years

[e] More than 5 years

6. What do you think is the main reason for your use of Lakme lipstick?

[a] Price [b] Variety

[c] Quality [d] Availability

[e] Promotion

7. Any problems you face while using it?

[a] Yes (specify) [b] No

8. What changes you would like to see in Lakme lipstick?

[a] More products range [b] More shades

[c] Better packaging [d] All of the above

9. Will you recommend Lakme lipsticks to others?

[a] Yes [b] No

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10. Do you think that Lakme lipstick provides you with an option of healthy long lasting and harmless
make-up-answer with a statement?

11. Would you continue to buy Lakme lipsticks even if there is increased to say up-to 10-15% in prices of
Lakme lipsticks?

[a] Yes [b] No

12. Give your remark regarding the Lakme lipstick?

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