Summer Internship Project Report

On
“A
STUDY ON PERCEPTION OF WOMEN AS A CONSUMER
TOWARDS COSMETICS AND ITS RELEVANCE IN SOCIETY”

LAKME LEVER

Submitted in partial fulfillment of the requirements for the Two Year Full Time
Masters in Business Administration

Submitted by-
Yashita Parashar
MBA18A05

Under the guidance of

Prof G Pravin Kumar Mr. Kamal Aarora

Deputy HOD (Marketing) Business Development Manager

Pune Institute of Business Management Lakme Lever

Pune Pune

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Table of Contents
CERTIFICATE OF ORIGINALITY ............................................................................................. 4
CERTIFICATE OF COMPANY .................................................................................................... 5
DECLARATION ............................................................................................................................. 6
ACKNOWLEDGEMENT ............................................................................................................... 7
EXECUTIVE SUMMARY.............................................................................................................. 8
1.0 Introduction ............................................................................................................................... 9
THE BEAUTY INDUSTRY ........................................................................................................ 9
LITERATURE REVIEW.......................................................................................................... 10
LAKME FRANCHISE .................................................................................................................. 11
RELEVANCE OF THE STUDY WITH LAKME SALON ..................................................... 12
NATURE OF THE STUDY ...................................................................................................... 12
INTENDED USAGE OF THE STUDY .................................................................................... 12
SECTORIAL INFORMATION ................................................................................................ 13
GROWTH RATE OF FMCG SECTOR................................................................................... 14
INVESTMENT & DEVELOPMENTS IN THE FMCG SECTOR ............................................... 15
GOVERNMENT INITIATIVES ......................................................................................................... 16
ROADS AHEAD........................................................................................................................ 16
3.0 COMPANY INFORMATION ........................................................................................................ 17
ABOUT LAKME LEVER......................................................................................................... 19
MISSION: ................................................................................................................................. 19
VISION: .................................................................................................................................... 19
MARKETING MIX OF LAKME ....................................................................................................... 20
1.PRODUCT IN THE MARKETING MIX OF LAKME: ........................................................ 20
2. PLACE IN THE MARKETING MIX OF LAKME: ............................................................. 21
3. PRICE IN THE MARKETING MIX OF LAKME: .............................................................. 21
4. PROMOTION IN THE MARKETING MIX OF LAKME: ................................................................ 22
SWOT ANALYSIS OF LAKME: - ........................................................................................... 23
USP OF LAKME ....................................................................................................................... 25
PRODUCTS OFFERED BY LAKME ...................................................................................... 28
MY PROJECT INFORMATION: - ............................................................................................. 29
4.0 RESEARCH METHODOLOGY ............................................................................................ 32
5.0 DATA INTERPRETATION ................................................................................................... 34

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 FINDINGS: ................................................................................................................................ 40
CONCLUSION.............................................................................................................................. 41
BIBLOGRAPHY ........................................................................................................................... 42
ANNEXURE .................................................................................................................................. 43

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 CERTIFICATE OF ORIGINALITY

I hereby declare that this Summer Internship Project is my own work and that, to
the best of my knowledge and belief, it reproduces no material previously
published or written that has been accepted for the award of any other degree of
diploma, except where due acknowledgement has been made in the text.
Yashita Parashar

MBA18A05

Marketing II

4
CERTIFICATE OF COMPANY

5
 DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “A study on
perception of woman as consumers towards cosmetics and its relevance in
society” written and submitted by me to the University of Pune, in partial
fulfillment of the requirement for the award of degree of Master of Business
Administration under the guidance of Mr. G Pravin is my original work and the
conclusions drawn there in are based on the material collected by myself.

Place: Pune

Name; Yashita Parashar

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 ACKNOWLEDGEMENT

I take this as an opportunity to thanks with bottom of my heart all those without
whom the journey of doing my project would not have been as pleasant and
wonderful as it has been to me. Working on this project was a constant learning
and experience for life time.

For any project to be a success, it is very important to get the right guidance
and support which I got from my internal mentor Mr. G. Pravin Kumar and
external mentor “Mr. Kamal Aarora” and also the staff members of “LAKME
LEVER” for their kind support during the project.

I want to express my deep gratitude to our institute Pune Institute of Business

Management, Pune for giving me this wonderful opportunity to undertake this
project and enhance my knowledge

Finally, I would like to convey my heartiest thanks to all my well-wishers for

their blessings and co-operation throughout my study. They boosted me up
every day to work with high spirit.

Yashita Parashar

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 EXECUTIVE SUMMARY

The internship was carried out by the company “Lakme Lever”, under the project
title “A study on the perception of woman as consumer of cosmetics and its
relevance in the society” in the context to Pune region under the guidance of Mr.
Kamal Aarora (Business Development Manager) at Lakme Lever.

I was assigned with the areas which were untouched in Pune like Wagoli,
Kothrud, Bavdhan and many others. I have visited many salons for the conversion
model and have done meetings with the prospect clients with the help of my
external mentor.I have also fetched data and done cold calling for the location of
Kolhapur, Solapur. Out of the meetings and calling I have generated 120 prospect
clients for the salon model as well as for the conversion model. Alongside the
daily task I have understand and analyzed the factors which convinced the
business person to invest in beauty industry and also the salon owners to convert
themselves into Lakme salon.

With the learnings gained from the daily work of the organization I have skilled
myself up in the skill set that is required to be an employable individual. I have
also gained an insight of the beauty industry as well as of franchise model.

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 1.0 Introduction

Indian economy has been contributed by many sectors and it’s the 3rd largest economy in the
world. Indian service sector is one of the key drivers for the upliftment of India economy. The
sector has contributed 54.17 per cent of India’s Gross Value Added at current price in 2018-
19*. Net service exports stood at US$ 60.25 billion in April-December. The service sector isn't
just the prevailing part in India's GDP, yet has additionally pulled in noteworthy outside
speculation streams, contributed essentially to trades just as gave huge scale business. Every
economy in the world depends upon the service sector as it contributes a major share in a
country’s GDP. India positions fifteenth in the administration yield and gives work to around
23% of the absolute workforce in the nation. In spite of the fact that the administration part is
India's number one segment adding to over 40% of GDP, yet it contributes not exactly one
percent of the gross assessment structure. The significance of the administration part in the
Indian economy can be additionally measured by the way that most of new work in the sorted
out division has been in the administration segment. While the aggregate work in the sorted
out division over the most recent 25 years has expanded by around 57%, the expansion in work
in the administration division in the comparing time frame was around 70%. The key major
drivers – the agricultural and the manufacturing sector in India has become a silent contributor
and the service sector with its upgradation and high involvement of technologies paved its way
to the highest generator of revenue and business in the present scenario of India trade market

THE BEAUTY INDUSTRY

The beauty industry is growing faster than even before. Today it is valued at an estimation of
$580 billion and counting.

There are three unique circumstances that continue to prop up the beauty industry:

1. Consumers, mostly women, are on a journey of exploration. They are enjoying new
products and finding new brands. This is part of a larger generational shift of younger
consumers rejecting the large brands their parents preferred and seeking out locally-
made, artisanal, natural products in all consumer categories. The need to be
Instagrammable at all times also helps.

2. Young, independent brands are supporting a surge in creativity. It seems like every day
there is a new brand with a new idea about how to become or remain beautiful.

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 Entrepreneurship is boiling over in the beauty industry. These young brands are
supported by the physical retail beauty channel.

3. Acquisitions by the major beauty companies of ever-smaller companies at very high

values are drawing in more founders and driving more creativity every day.

LITERATURE REVIEW
Franchising is an important means of doing business for many entrepreneurs. It is suited for
environments characterized by intense competition, rapidly changing customer tastes, and a
trend towards localized market segments. It provides large company advantages such as
economies of scale in marketing and production while providing for entrepreneurial discretion
at the unit level.

Franchising is an organizational form in which a company grants an individual or another

company the right to do business in a prescribed manner over a certain period of time in a
specified place in return for royalties or the payment of other fees. The company granting the
right is termed the "franchisor," the receiver of the right is the "franchisee," and the right is the
"franchise". The outlet or the operational establishment where the franchising operation is
conducted is called the "franchised unit." A franchisor usually has a number of franchised units.
Units that are owned by the franchisor and operated by its employees are referred to as

10
"company-owned units." The word "franchising system" refers to the franchisor and all units
(both franchised and company-owned).

Franchising systems can be broadly divided into two types. "Product/Trade Name" franchising
is a relationship between the supplier and the dealer in which the dealer agrees to acquire some
of the identity of the supplier in order to become the preferred source of the supplier's goods.
"Business Format" franchising is an ongoing relationship between the franchisor/franchisee
that not only includes product, service, and trademark, but also the entire concept of the
business.

LAKME FRANCHISE
Lakme is one of the famous Indian cosmetics brand in the beauty industry which is owned by
Hindustan Unilever. Lakme offers a wide range of products like skincare products, colour
cosmetics products, hair care and beauty salons spread across the country. Lakme has grown
to more than 240 stores scattered across over 60 markets, managed by a crew of over 2200
experts attending to 1,000,000 customers. Also, Lakme enables to start your own business by
joining your hands with Lakme.

Benefits of Becoming Lakme Franchise

There are various benefits to becoming a Lakme Franchise are as follows

 Lakme provides future owner with sustainable growth in the business model.

 Benefits of availing loan from private and public sector banks at attractive interest rates
to female entrepreneurs.

 Active support and guidance for Franchise startup for the Franchisee.

 Continuous Support in Business development, delivery of products to the customers

and marketing.

 Course design and delivery support.

 Academic and technical functions will be conducted under training.

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  Additionally, training will be covered in the areas such as project management, standard
operating procedure, and IT development.

RELEVANCE OF THE STUDY WITH LAKME SALON

Lakme salon which is spread across the nation, also provides a wide range of world class
products as well. It is known by consumers for its products since the time of independence.
The study helps to find out the competition level of lakme as with the growth in beauty
industry the beauty companies are also rising. It will also help to find out the perception of
consumer with the constant change in the environment, how they have started seeing the
cosmetic industry, how important it is in their daily life, how the price factor plays an
important role. It gives an idea on the occasion when the salon would be on more in demand
area where more importance could be given.

NATURE OF THE STUDY

This study is based on the exploratory research design. Exploratory research design is a
design where the problem is not clearly defined. It is conducted to have a better
understanding of existing problem, but will not provide a conclusive result. It is that
research design which dealt onto collect feedback about the consumption metrics both from
existing customers as well as other users. This study has been carried out to see the behavior
of consumers when it comes to cosmetics and purpose of using it. Here, the exploratory
research design has been used as this topic is totally new for the study and no other
conclusion has been deduced on this so far.

INTENDED USAGE OF THE STUDY

This study can be used to refer the consumer behavior of the women while choosing
cosmetics. It further lies on the beauty industry and find out the different vertical which
influence the decision making in order to choose their cosmetics and the occasion and the
factors which make them aware about it.

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 2.0 THEORITICAL BACKGROUND

SECTORIAL INFORMATION

Fast Moving Consumer Goods (FMCG) goods, popularly named as consumer packaged goods,
play a vital role as a necessity and as an inelastic product. The Indian FMCG sector is the fourth
largest sector the economy with a total market size of Rs. 167,100crs.

COMPOSITION OF FMCG SECTOR

The FMCG sector mainly comprises of

the three segments – food & beverages,
household, personal care and health care

The principle constituents of Fmcg are

household care, Personal Care, and Food
&Beverages accounting for 50 per cent
of FMCG Sales in India. The urban
segment (accounts for a revenue share of around 60 per cent) is the largest contributor to the
overall revenue generated by the FMCG sector in India and recorded a market size of around
US$ 29.4 billion in 2016-17. However, in the last few years, the FMCG market has grown at a
faster pace in rural India compared with urban India. Semi-urban and rural segments are
growing at a rapid pace and FMCG products account for 50 per cent of total rural spending.

Rural India accounts for 70% of India’s population, 56% of National Income, 64% of total
expenditure and one third of the total savings. The market is estimated to grow to US$ 100
billion by 2025, according to market research firm Nielsen. In the last decade the FMCG sector
has grown at an average of 11% a year in the last five years, annual growth accelerated to 17%.
The FMCG Industry is characterized by a well established distribution network, low
penetration levels, low operating cost, lower per capita consumption and intense competition
between the organized and unorganized segments.

Growth driven by increasing consumption led by rise in incomes, changing lifestyles and
favorable demographics. Growing awareness, easier access and changing lifestyles have been
the key growth drivers for the sector. Rural consumption has increased, led by a combination
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of increasing incomes and higher aspiration levels; there is an increased demand for branded
products in rural India. The rural FMCG market in India is expected to grow at a CAGR of
14.6

percent, and reach US$ 220 billion by 2025 from US$ 29.4 billion in 2016. In FY18, FMCG’s
rural segment contributed an estimated 10 per cent of the total income and it is forecasted to
contribute 15-16 per cent in FY 19. Another major factor propelling the demand for food
services in India is the growing youth population, primarily in the country’s urban regions.
India has a large base of young consumers who form the majority of the workforce and, due to
time constraints, barely get time for cooking. The Internet has contributed in a big way to
increase a company’s reach. It is estimated that 40 per cent of all FMCG purchases in India
will be online by 2020, thereby making it a US$ 5-6 billion business opportunity. By the year
2025, e-commerce will contribute around 10-15 per cent sales of few categories in the FMCG
sector.

India has one of the largest livestock population in the world. Fifty percent of the buffaloes and
twenty percent of the cattle in the world are found in India, most of which are milk cows and
buffaloes. Dairy development in India has been acknowledged the world over as one of modern
India’s most successful developmental programme. Today, India is the largest milk producing
country in the world. India's dairy industry is expected to maintain 15 per cent compounded
annual growth (CAGR) over 2016-20, and attain value of Rs 9.4 trillion India's dairy industry
is worth Rs 5.4 trillion by value, having grown at 15 per cent CAGRduring2010-16. Going
ahead, the dairy industry is expected to maintain 15 per cent CAGR over 2016-20, and attain
value of Rs 9.4 trillion on rising consumerism India has progressed from being deficient in
milk production at 20 million MT in 1970 to becoming the world's largest milk producer at 160
million MT, accounting for 18.5 percent of global milk production. Further, India is expected
to emerge as the largest dairy producer by 2020.

GROWTH RATE OF FMCG SECTOR

The FMCG industry is the fourth largest industry of India. The FMCG sector has grown from
US$ 31.6 billion in 2011 to US$ 49 billion in 2016. The sector is further expected to grow at a
Compound Annual Growth Rate (CAGR) of 20.6 per cent to reach US$ 103.7 billion by 2020.

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INVESTMENT & DEVELOPMENTS IN THE FMCG SECTOR

The government has allowed 100 per cent Foreign Direct Investment (FDI) in food processing
and single-brand retail and 51 per cent in multi-brand retail. This would bolster employment
and supply chains, and also provide high visibility for FMCG brands in organized retail
markets, bolstering consumer spending and encouraging more product launches. The sector
witnessed healthy FDI inflows of US$ 13.07 billion, during April 2000 to December 2017.
Some of the recent developments in the FMCG sector are as follows:
• The Hershey Co plans to invest US$ 50 million over the next five years in India, its
fastest growing core market outside of US.

• As a part of its Rs 25,000 crore (US$ 3.88 billion) investment package, ITC will invest
Rs 10,000 crore (US$ 1.55 billion) to expand its food processing segment.

• The bottling arm of Coca-Cola India, Hindustan Coca-Cola Beverages (HCCB) is

planning to increase its retail reach by one million new outlets and is targeting revenue
of US$ 2.5 billion by 2020.

• Future Retail will acquire Hyper City, which is owned by Shoppers Stop for Rs 911
crore (US$ 139.7 million) to further consolidate its business and have a better footing
in the hypermarket segment.

• Patanjali will spend US$743.72 million in various food parks in Maharashtra, Madhya
Pradesh, Assam, Andhra Pradesh and Uttar Pradesh.

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GOVERNMENT INITIATIVES
Some of the major initiatives taken by the government to promote the FMCG sector in India
are as follows:
• In the Union Budget 2017-18, the Government of India has proposed to spend more on
the rural side with an aim to double the farmer’s income in five years; as well as the cut
in income tax rate targeting mainly the small tax payers, focus on affordable housing
and infrastructure development will provide multiple growth drivers for the consumer
market industry.

• The Government of India’s decision to allow 100 per cent Foreign Direct Investment
(FDI) in online retail of goods and services through the automatic route has provided
clarity on the existing businesses of e-commerce companies operating in India.

• With the demand for skilled labor growing among Indian industries, the government
plans to train 500 million people by 2022 and is also encouraging private players and
entrepreneurs to invest in the venture. Many governments,corporate and educational
organizations are working towards providing training and education to create a skilled
workforce.
• The Government of India has drafted a new Consumer Protection Bill with special
emphasis on setting up an extensive mechanism to ensure simple, speedy, accessible,
affordable and timely delivery of justice to consumers.

• The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the
FMCG products such as Soap, Toothpaste and Hair oil now come under 18 per cent tax
bracket against the previous 23-24 per cent rate.

ROADS AHEAD
FMCG brands would need to focus on R and D and Innovation as means of growth. One area
that we see global and local FMCG brands investing more in is health and wellness. Health and
wellness is mega trend shaping consumer preferences and shopping habits and FMCG brands
are listening. Leading global and Indian food and beverage brands have embraced this trend
and are focused on creating new emerging brands in health and wellness. Growing awareness,
easier access, and changing lifestyle have been the key growth drivers for the sector.

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 3.0 COMPANY INFORMATION

(HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80
years in India. On any given day, nine out of ten Indian households use our products to feel
good, look good and get more out of life – giving us a unique opportunity to build a brighter
future. HUL works to create a better future every day and helps people feel good, look good
and get more out of life with brands and services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water
purifiers, the Company is a part of the everyday life of millions of consumers across India. Its
portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel,
Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,
Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
The Company has about 18,000 employees and has sales of INR 37660 crores (financial year
2018-19). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home
Care, Personal Care and Refreshment products with sales in over 190 countries and an annual
sales turnover of €51 billion in 2018. Unilever has over 67% shareholding in HUL.

Our vision is to grow our business, while decoupling our environmental footprint from our
growth and increasing our positive social impact.
Our Corporate Purpose states that to succeed requires "the highest standards of corporate
behavior towards everyone we work with, the communities we touch, and the environment on
which we have an impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many people, organizations
and environments our business touches has always been at the heart of our corporate
responsibility.

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Positive impact
We aim to make a positive impact in many ways: through our brands, our commercial
operations and relationships, through voluntary contributions, and through the various other
ways in which we engage with society.

Continuous commitment
We're also committed to continuously improving the way we manage our environmental
impacts and are working towards our longer-term goal of developing a sustainable business.

Setting out our aspirations

Our Corporate Purpose sets out our aspirations in running our business. It's underpinned by our
Code of Business Principles which describes the operational standards that everyone at
Unilever follows, wherever they are in the world. The Code also supports our approach to
governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the same
standards we do. Our Supplier Code, aligned to our own Code of Business Principles,
comprises eleven principles covering business integrity and responsibilities relating to
employees, consumers and the environment.

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ABOUT LAKME LEVER

Launched in 1952, Lakmé is the first home-grown

successful cosmetics brand in India.

The classic Indian woman is expressive, confident and

redefines the definition and meaning of beauty. She
not only inspires but also aspires to achieve the best.
From being the contemporary Indian beauty expert to
becoming the flag-bearer of the latest makeup trends
and styles that hit the runway, Lakmé as a brand
continues to be innovative with its approach towards
the world of makeup and beauty.
Whether it is products that are synthesized to meet every Indian woman’s requirements, or the
world-class hair, beauty and skin care services offered at Lakmé Salons,Lakmé are proud to
deliver only the finest!

MISSION:
Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and
sensuality. Thus, enabling her to realize the potency of her beauty.

VISION:
The vision statement focus on encouraging people to do more, helping people feel good, and
reducing their impact on the environment.

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TAGLINE OF LAKME LEVER:
Lakme Reinvent; Beauty sutra; Inspired haircare

MARKETING MIX OF LAKME

Lakme occupies a major share in the domestic market with its vast range of products and related
services. It has nearly three hundred items to its credit that are used by professional hair salons
as well as individuals both in the domestic and international market.

1.PRODUCT IN THE MARKETING MIX OF LAKME:

 FACE- It includes items like illuminators, blush, compact, concealer, bronzer, contour,
sunscreen, serums, moisturisers, scrubs, face wash, foundation and face primer. Some
of them are:
 Lakme Radiance Complexion Compact
 Lakme Absolute Blur Perfect Makeup Primer
 Lakme Absolute White Intense Concealer Stick

 EYES- Includes eyeliner, mascara, kajal, eye shadow, eye primer and eyebrow
enhancers. Some of them are
 Lakme Absolute Illuminating Eye Shadow
 Lakme Absolute Kohl Ultimate Kajal Black
 LakmeEyeconic curling Mascara- black

 LIPS- It includes items like lipstick, lip gloss, lip liner and lip balm. Some of them are:
 Lakme Absolute Illuminating Lip Liner
 Lakme 9 to 5 Crease-less Crème Lipstick
 Lakme Absolute |Gloss Stylist Lip Gloss

 NAILS- It includes Nail paints in several colour shades and remover for its removal.
Some of the products are:
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  Lakme absolute Gel stylist Nail Polish
 Lakme True Wear Nail Color
 Lakme 9 to 5 Frosties Nail Enamel
 Lakme Nail Color Remover with Vitamin E

 TOOLS AND BRUSHES- Includes lip brush, blush brush, eye brush sets and face
brush

 MAKE-UP KIT- Includes eye palettes, face palettes, customised palettes and combo
sets

2. PLACE IN THE MARKETING MIX OF LAKME:

Lakme was the first brand in India dealing with cosmetics on such a large scale and its footprint
has extended towards every nook and corner of the country. It has a vast
distribution channel that includes services of nearly twelve hundred sales outlets with beauty
advisors. It has also set up one hundred and ten beauty salons in India. Its products are easily
available to customers through services of distributors, stockiest and retailers. Besides its
outlet’s products are available at hypermarkets, supermarkets, convenience stores, discount
stores, and beauty shops. Lakme has not curtailed its products to Indian market instead its
products are easily obtained in nearly seventy global countries.

3. PRICE IN THE MARKETING MIX OF LAKME:

India is a price sensitive nation with most people thinking twice before spending their money.
Lakme is a cosmetic brand that caters mostly to the female population. The company was quite
sure of its approach towards pricing strategy. It wanted to garner as many customers as possible
by penetrating both urban and rural market. Therefore it has adopted a reasonable pricing policy
because it wants its products to reach masses. It realises that affordable and pocket-friendly
rates will result in large volumes and eventually will lead to better profits

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4. PROMOTION IN THE MARKETING MIX OF LAKME:

Lakme has adopted an aggressive marketing plan to promote its products to every nook and
corner. Its ad campaigns are advertised through television, radio, newspapers, fashion
magazines, billboards and social
media platforms
like Twitter, Facebook, Blogs
and YouTube. It believes in star
power and its impact on common
masses and has roped in several
personalities’ time and again as
its brand ambassadors and to act
in its ad campaigns. Indian film star Shraddha Kapoor, Kareena Kapoor and Katrina Kaif along
with popular model Lisa Haydon have acted in its commercials. It is the title sponsor of bi-
annually held fashion week titled Lakme Fashion Week. The company has set up Lakme
Beauty Training Academy in Chennai, Delhi and Mumbai to assist interested people.

STP OF LAKME

1. SEGMENTATION
• Demographic: - in this segment, lakme targeted females from the age group of teenagers
to adults.
• Geographic: - in this segment, lakme has mainly focused on the urban area.
• Psychographic: - In this segment, women are more concerned about their looks and
how they feel about it. So, Lakme has provided them with a wide range of skin care
products that has helped them come off their age and now. They are constantly changing
their lifestyle and lakme is constantly innovating to matchup with their wants. Lakme
has targeted nearly the whole of India based on these different types of segmentation
because of the fact that Indian women in general do not have a fair skin like that of
western counterparts.

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2. TAR GETING
• It basically targets on tier 1 and tier 2 cities, women of 18 and above age, upper
middle/upper class groups.

3. POSITIONING
• As lakme is now a completely owned subsidy of HUL, it was able to position itself well
in the market due to the name and goodwill of its parent company.
• Lakme was the first cosmetic company launched in India. Therefore, it had a greater
hand to position itself well in the Indian market, it included attributes and benefits like
➢ A long lasting beautification product range.
➢ Something that is not harsh on your body or harmful for your beauty.
➢ A product that helps you get a beautiful skin.
➢ A cosmetic product that you can wear for the entire day and not a special occasion.
➢ Someone who tells you right things about looking good.

➢ It covers all facets of beauty care for women

SWOT ANALYSIS OF LAKME: -

STRENGTHS IN THE SWOT ANALYSIS OF LAKME

• High Brand awareness: Lakme is a well-known brand in the cosmetic & beauty
industry. High visibility through targeting high end beauty parlors/salons & also
through sponsoring fashion events and strong promotions has helped the company in
making top of mind awareness.
• Fantastic product line: Lakme contributes to the beauty of women through a fantastic
product line, which has amazing depth of products. Lakme is also known to launch a
variety of cosmetics which are innovative and are known to sole the problem of
cosmetics for women.
• Extensive distribution system of the parent company: HLL is the parent company who
purchased it from TATA group. Since HLL is already an established FMCG brand so
it uses extensive distribution channel to make the Lakme products available in the

23
 market. Also in addition to traditional channel, it also uses unconventional distribution
system to make the products available at pharmacist, beauty parlors & salons.
• Celebrity endorsement: Lakme positioned perfectly in the mind of prospective
consumers by targeting apt celebrities to represent their brand.
• Strong parent company: HLL the parent company is the well-known company in the
FMCG industry has stable financial position which is good for its group brands.

WEAKNESSES IN THE SWOT ANALYSIS OF LAKME

• Limited presence in the premium market: Lakme have presence in the VFM (Value for
money) segment in which it is leader. Lakme is the overall market leader in the color
cosme tic segment (lip care and nail enamel) with a wide range of products and prices
but when it comes to premium market which is growing at the rate of 30% Revlon is
the market leader.
• Problem of differentiation: Its broad portfolio sometimes creates confusion in the mind
of the consumers. Such that, some products are known to be very good but others are
ignored because no differentiation is present for them.
• Quality of Lakme salons: Falling quality of Lakme salons will result in the negative
word of mouth which can affect sales & growth of the company in future.

OPPORTUNITIES IN THE SWOT ANALYSIS OF LAKME

• Changing lifestyle: Migrating population & with the saturation of developed
economies, changing taste & preferences, Education & changing lifestyle of the
developing economies had resulted into growth in the grooming segment. People now
want to look sharp, smart & confident.
• Growing premium segment: There is a growth in the demand of premium segment
goods of which grooming industry is not an exception. So with growing demand if
Lakme extend its presence in this segment then it will help it in becoming a leader in
grooming industry.
• Co-creating the growth strategies: Creating more Collaborative & participative
community focused activities will help the company in building brand image & co-
creating growth opportunities.

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THREATS IN THE SWOT ANALYSIS OF LAKME
• Intense rivalry: Intensive competition from the local, national & International players
on price & availability factors is the major threat for the players in the segment which
is affecting the industry as a whole.
• Counterfeit products: Fake products are directly affecting the brand image of the
company in the rural market & small towns.
• International brands extending into other markets: International brands like Revlon
which have centuries of expertise in the Personal care industry can affect the business
of Lakme in the selected markets or can limit their growth rate.
• Increasing allergies cases: Due to change in the lifestyle skin is becoming more
sensitive due to which companies in the personal care industry face risk of losing sales
on allergic grounds.

USP OF LAKME
Lakme brings expert products and services that are borne out of true understanding of the needs
of the Indian women.

COMPETITORS

25
ORGANIZATIONAL STRUCTURE

26
ABOUT LAKME SALON

From India’s most prestigious FMCG Company, Hindustan Unilever Limited comes a chain
of salons, dedicated to the Indian woman and her exploration of beauty. Lakmé Salon’s state-
of-the-arttechnology; team of professional hair stylists and beauty experts; latest techniques
and services; and unparalleled backstage experience at Lakmé Fashion Week, the nation’s
premium fashion showcase; make it the ultimate destination for hair and beauty treatments in
the country.
Beginning with its first salon in 1980, Lakmé Salon has now grown to more than 240 stores
spread across over 60 markets, led by a team of over 2200 experts attending to 1,000,000
customers. Our commitment to best professional service for hair and beauty treatments is what
has defined our brand for more than 35 successful years.

At the centre of Lakmé Salon’s work lies its expertise – an eye for beauty honed by years of
backstage experience at Lakmé Fashion Week. Lakmé Pro-Stylists have been behind some of
the most iconic looks to grace the runway, and Lakmé Salon brings this artistry to modern
Indian women through the newest styles and cutting-edge services.
At Lakmé Salon, with over 35 years of experience, and a footprint of over 400+ Lakmé Salons
in 125 cities across the length and breadth of the country, we have developed a deep
understanding of the beauty industry, its professionals and the skills needed to make a mark.
More than 280 entrepreneurs have partnered with Lakmé Lever as franchisees to own and
operate Lakmé Salons across the country. We launched Lakmé Absolute salon in 2012, which
offers bespoke services defining the ultimate facets of hair and beauty. The state-of-the-art
salon is currently present in the 3 cities- Delhi, Bengaluru and Mumbai. In 2015, Lakmé Lever
formalized a strategic alliance with Aptech – a global leader in vocational training to set up 80
Lakmé beauty academies to train 50,000 stylists across India, over five years. Lakmé Academy
powered by Aptech, offers both foundation and advanced level training in skin, hair and make-
up.

Each year, Lakmé Salon crafts a set of looks that are aligned with the current trends and in tune
with the preferences of the Indian audience. The current collection highlights ‘Timeless Brides
Reinvented’ which is a collection that pairs ancient with the modern, age-old techniques with
new-age sensibilities and classic styles with contemporary trends.
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PRODUCTS OFFERED BY LAKME

Lakme Makeup RANGE

 Lakme 9 to 5 Complexion Care CC Cream Foundation.
 Lakme Enrich Matte Lipstick
 Lakme Enrich Lip Crayon
 Lakme Enrich Matte Lipstick
 Lakme Absolute Shine Liquid Eye Liner 4.5 ml
 Lakme 9 to 5 Flawless Matte Complexion Compact
 Lakme 9 to 5 Primer Plus Matte Lip Color
 Lakme True Wear Nail Color 404

SERVICE OFFERED AT LAKME SALON

1 SKIN
 Skin Care - Treatments

 Body Care

 Skin Care

 Skin Care - Basics

 Skin Care - Depilation

 All Skin Services

2 HAIR CARE
 Colors
 Styling
 Haircut
 All Hair Service
3 MAKEUP
 Styling
 Saree Drape
 Makeup
 All Makeup Services

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4 HANDS & FEET
 Hand Care

 Feet Care

 Nails

 All Hand & Feet Services

MY PROJECT INFORMATION: -

ABOUT FRANCHISEE MODEL OF LAKME SALON

FRANCHISEE CRITERIA: -

 Individuals with integrity and ethics.

 Passionate and devoted to managing business.
 Customer oriented approach and willing to go to the extra mile for customer
satisfaction.
 Ability to build and manage a team.
 Contribute sufficient time and effort to run the business.
 Minimum 900 sq. owned leased space and minimum investment of Rs. 50-60 lacs.

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FRANCHISEE PROCESS: -
I. PROFILING A FRANCHISEE
Lakme salon franchisees must be fully committed to the successful running of their business
and be willing to go over and above to offer superior service. We are looking for individuals
with integrity and ethics who show initiative and resourcefulness.

They must be passionate and devoted to managing the business and have a customer-
oriented approach, willing to go to the extra mile to please patrons.

II. INVESTMENT
To begin your career as a lakme salon partner, you need an initial minimum investment
of Rs. 50-60 lacs and a property of 900 sqft. Onwards. If you can fulfill both steps
above, please go further to step 3 and we will take it from the form.
III. ALMOST THERE

Click below to fill your details and our representative will get in touch with you shortly.

LAKME WEBSITE VIEW:-

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FOR BECOMING A FRANCHISEE PARTNER ONLINE FORM IS ALSO AVAILABLE
WHICH IS SHOWN AS BELOW:

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 4.0 RESEARCH METHODOLOGY

PROJECT TITLE: A study on perception of women as consumer towards

cosmetics and its relevance in the society.

RESEARCH OBJECTIVE:

PRIMARY OBJECTIVE

1. To understand the buying behaviour of consumers towards cosmetics.

2. To determine the factors affecting the purchasing behaviour.
3. To understand the desired price range by the consumers.

SECONDARY OBJECTIVE

1. To understand the brands popular among the consumer.

2. To determine the factors making them aware about the cosmetics.
3. To determine the satisfaction level of consumer from the existing products that
they are using.

RESEARCH DESIGN:

This research helps to identify the factors which are making women buy the cosmetics and
factors which are making them aware about the same. It helps me to understand the price range
in which they are buying the products and also the price range desired by them.

TARGET SEGMENT:

The segmented target was women and girls who uses cosmetics.

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SAMPLE FRAME:

The sampling frame of the target population were women who are students, homemaker,
government officer, businesswoman, entrepreneurs and various others.

SAMPLE SIZE:

The sample size taken was 124 respondents out of 150 on a probability basis.

SAMPLING TECHNIQUE:

Sampling was done through probability basis. The theory behind the research is idealist as,
quantitative methods were used.

DATA COLLECTION:

For the purpose of collecting data a well designed questionnaire was used which was collected
either online or personally.

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 5.0 DATA INTERPRETATION

The sample size is 124 respondents, which includes the population from high end to low end
customer from Pune.

The analysis is based upon the questions that were asked to the people through questionnaire.

ANALYSIS:

1.Do you use cosmetics?

INFERENCE: Out of the total Do you use cosmetics?

sample of 124 women 90% of the
women use cosmetic while only 2% 2%8% YES
of them does not use it while 8% of NO
the use it sometimes. MAYBE
90%

2. How often do you use cosmetics?

INFERENCE; Out of 124 women,

the graph shows that 33% of
women uses cosmetics everyday
while 28% uses them

34
3. Reasons for buying and using cosmetics?

INFERENCE: Out of all 124 women the main reason for buying and using cosmetics for
them is to improve the way they look which is followed up by the reason being Psychological
satisfaction and Fashion status.

4. On which occasion do you most use cosmetics?

INFERENCE: Most of the women uses cosmetics during the wedding time i.e 40% , while
most of the women wear makeup during parties and whenever they feel like. Other data
shows that 10% of women uses it during dates and outside their home.
35
5 Factors considered while purchasing cosmetics?

INFERENCE: The factor which played the most role was Quality which is at 80% followed
up by Brand i.e 49% , Price at 48% , end of use at 30% followed by packaging at 12%.

6 Factors making awareness about the cosmetics?

INFERENCE:As per data 76 women consider Media while 70 women consider Friends and
family as major awareness, while Shopkeeper , Doctor , Beautician at 16,11, 54 respectively.

36
7 Average spending on cosmetics.

INFERENCE: The average spending was between Rs 500-1000 while the graph shows the
Rs 4000 above was very less while 29% of women spend 29%.

8 Role of advertisement in decision making.

INFERENCE: According
to the data 49% of women
consider that advertisement
does play a vital role while
18.5% does not think the
same way while other i.e
32.3% were not sure about
it.

37
9 Brand popular among the consumers.

INFERENCE: It was seen through the study that more than 50% of the respondents uses
Lakme and it’s the brand was most popular among the consumers.The brands like Maybelline
and Elle18 is also at 35% and 6% respectively.

10 Opinion about cosmetics.

INFERENCE:49.2% of
women considers that it is both
necessity as well as luxury
while 35% of them thinks its
luxury while rest considers it’s
a necessity.

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11 Satisfaction of consumers towards the products that they are using?

INFERENCE: Out of 124

women 60 women rate their
product 4 out of 5 while 35
gives 5 out of 5 while 29 gives
3 out of 5.

12 The desired changes from the existing products that they have been using?

INFERENCE:
Out of 124 women
31.5% women
desired for better
quality, while
other desired for
value for money at
29% followed up
by increased value
at 28.2% and
Better brand value
at 11.3% .

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FINDINGS:

From the research conducted above it helped to find out.

I. 90% of the women uses cosmetics and consider it as a daily activity.

II. Women uses cosmetics in order to improve personality as well as to gain
psychological satisfaction.
III. Brand plays a major role while purchasing any cosmetics
IV. Lakme is the most popular brand among the consumers the reason being as it is the
most renowned and old brand and the marketing of the brand is strong as it organizes
events like Lakme Fashion Week.
V. Cosmetics are considered as a necessity more than a luxury products these days.
VI. Brands and quality is the key factor which are consideres while purchasing any
cosmetics.
VII. Media is considered as an important factor regarding the awareness of the cosmetics.
VIII. The study helps to find out that the affordable price range for the consumers is
between 500-1500.

40
CONCLUSION

From the study entitled “A study on the perception of women as consumers towards
cosmetics and its relevance in the society” helped me to see the insights of the factor which
drives the consumer to purchase any cosmetic product. The factors and the reason which
induce them to apply those cosmetics which are no longer consider as a luxury, which was
earlier considered from the traditional outlook. It has also given me the idea of how cosmetics
have become a part of routine for the consumer and are being used on several occasions. It
also helped to understand the affordable price range and the level of satisfaction they have
from the existing products that they are been using.

It also gave the insight of how consumers are using cosmetics on the social media platform
like Instagram, Facebook, and becoming entrepreneur in the way of Vlogger, Bloggers etc.
They inspire others and teach them how to use the same in a proper way.

The beauty industry is growing in every aspect.

41
BIBLOGRAPHY

 https://www.forbes.com/sites/richardkestenbaum/2018/09/09/beauty-industry-biggest-
trends-skin-care-loreal-shiseido-lauder/#1b804cc06982

https://www.businessinsider.in/Beauty-has-blown-up-to-be-a-532-billion-industry-
and-analysts-say-that-these-4-trends-will-make-it-even-
bigger/articleshow/70149243.cms?utm_source=contentofinterest&utm_medium=text
&utm_campaign=cppst

42
 ANNEXURE

QUESTIONNAIRE

PERCEPTION OF WOMEN AS CONSUMER TOWARDS CONSUMPTION OF

COSMATICS AND ITS RELAVANCE

1 Name

_______________________

2 Age

 18-24
 25-35
 35-50
 50 above

3 Occupation

 Student
 Business
 Service
 Other

4 Salary

 0-200000
 200000-500000
 600000-1000000
 Above 1000000

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5 Do you use cosmetics

 Yes
 No

6 Which cosmetics do you use?

 Branded
 Herbal
 Local

7 Reasons for buying and using Cosmetics

 To improve personality
 Social influence
 Fashion and status symbol
 Psychological satisfaction

8 On which occasions do you most use cosmetics?

 Parties
 Dates
 Wedding
 Corporate Meeting
 Outside Home
 Whenever you feel like

9 What is your opinion about cosmetics?

 Luxury
 Necessity
 Both

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10 What factors do you consider while purchasing cosmetics

 Brand
 Price
 Quality
 Packaging
 Ease of use

11 What are the sources that make you aware of cosmetics?

 Beauticians
 Doctors
 Shopkeepers
 Friends and family
 Media

12 From where do you purchase cosmetics?

 Beauty Parlors
 Exclusive cosmetic stores
 General stores
 Internet
 Direct Sales

13 How much on an average do you spend on cosmetics in a month?

 100-500
 500-1000
 1000-1500
 1500-2000
 More
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15 Do you think cosmetics advertisement helps you to decide on type and specific brand of
cosmetics?

 Yes
 No

16 Do you use the same Brand of cosmetics for all the existing product categories in
cosmetics?

 Yes
 No

18 Have you ever experienced any inferiority in cosmetics you have purchased. If yes how
has that influenced your buying behavior?

 Brand switching
 Category switching
46
  Brand loyal

 Any other

19 Which brand comes to your mind when you heard the word cosmetics

 Lakme
 Revlon
 Maybelline
 Colorbar
 Elle 18

20 How satisfied are you with the personal care products that you have and have been using
recently?

 Extremely satisfied
 Somewhat satisfied
 Neutral
 Dissatisfied

21 What are your desired changes in product that you have been using?

 Better quality
 Better brand value
 Value for money
 Increased quantity

22 What are the desired price range you want for all your cosmetics?

 0-500
 500-1000
 1000-2000
 2000-5000

47