You are on page 1of 81

A

DISSERTATION
ON
“A COMPARATIVE STUDY OF MARKETING
STRATEGIES OF LAKME & REVLON”

FOR PARTIAL FULLFILLMENT OF THE REQUIREMENT


FOR THE AWARD OF

Bachelor of Commercs
(B.Com Hons)

UNDER THE SUPERVISION OF


DR SIDDHARTH JAIN

SUBMITTED BY
KRATIKA SHARMA
B.Com (2017)
En No. 20140113

INSTITUTE OF BUSINESS MANAGEMENT,


MANGALAYATAN UNIVERSITY,
33rd KM STONE, ALIGARH-MATHURA HIGHWAY,
BESWAN, ALIGARH
CERTIFICATE OF THE SUPERVISOR

This is to certify that the work entitled “A Comparative study of


Marketing Strategies of Lakme & Revlon” is a piece of
Dissertation Report work done by Ms Kratika Sharma under my guidance
and supervision for the degree of Bachelor of Commerce from
Mangalayatan University Aligarh.
To the best of knowledge and belief the Report:
i. Embodies the work of the candidate himself.
ii. Has duly been completed.
iii. Fulfills the requirement of the ordinance relating to the Bachelor
Commerce degree of the university and
iv. Up to the standard both in respect of contents and language for
being referred to the examiner.

Signature of Supervisor
Date
ACKNOWLEDGEMENT

It was indeed an opportunity for me to be a part for my dissertation, as a

partial fulfillment of three years degree course of Bachelor of Commerce.

It was an insightful experience where I was given an exposure in the field

of Commerce. It was during this training that I was able to apply my

theoretical knowledge into practical one.

It is a great pleasure to extent my heartful thanks to my supervisor Dr.

Siddharth Jain and Dr. Abhay Kumar (Director, IBM)

Mangalayatan University, Aligarh my report guide for giving me an

opportunity to learn the applicability of marketing strategies Theories.

I would like to express my special gratitude to of all my respected teachers

and my seniors, who are always a source of inspiration for me and played

an important role in making my project report a memorable.

Akshay Kumar

Mangalayatan University

Aligarh
Student’s Declaration

This is to certify that Thesis/Report entitled “A Comparative study of

Marketing Strategies of Lakme & Revlon” which is submitted by

me in partial fulfillment of the requirement for the award of degree

BACHELOR OF BUSINESS ADMINISTRATION to Mangalayatan

University, Aligarh comprises only my original work and due

acknowledgement has been made in the text to all other material used.

Signature
Date: Kratika Sharma
TABLE OF CONTENTS

INTRODUCTION

 Introduction
 Need and significance of the study
 Objective of the study
 Literature Review
 Limitation of the study

CONCEPTUAL FRAMEWORK

COLLECTION OF DATA

 Research Design
 Sampling Design
 Source of Data
 Data Collection tools
 Methods of Data Collection

DATA ANALYSIS AND INTERPRETATION

FINDINGS
CONCLUSION
SUGGESTION
FUTURE SCOPE OF RESERACH
BIBLIOGRAPHY
APPENDIX ( QUESTIONNAIRE)
INTRODUCTION
Introduction
In the highly competitive cosmetics market, brands are learning quickly to

make women – in their myriad roles of mother, wife, sister and daughter – as

the centre of their universe. Brands such as Revlon, Maybelline, Lakmé and

L’Oreal have taken to digital media in a big way to increase connect with

‘women of today’.

Saluting the true spirit of womanhood, Revlon recently launched its new

campaign –‘Choices by Revlon’. This 13-month long digital only campaign

will highlight 13 different topics that Indian women are keen to discuss about

on a social media platform. Revlon is offering this platform, which is an ode to

women’s individuality and celebrates their views and their ability to make

choices without fear or favour.

Maybelline has gone a step ahead and decided to give women across the

country a more intimate experience. For Karwa Chauth, the cosmetics brand

engaged women from across Delhi NCR, Lucknow and Kanpur, wherein they

were given free makeovers and mehendi application on purchase of Maybelline

products.

Keeping the wedding season in mind, Lakmé Salon played host to women

planning bachelorette parties for their best friends – the conditions of the

contest being tagging their friends, uploading pictures on Pinterest and using

the hashtag #Beautiful Brides. This resulted in increased site traffic, making

Lakmé Salon’s website popular as well as creating hype for Lakmé’s products.
L’Oreal, on the other hand, created a special app for the Cannes Film Festival.

Women from across India had to pass stages of a contest – from dressing up

and posting pictures of themselves on the ‘red carpet’ to get a feel of being on

the actual red carpet of one of the most celebrated international film festivals.

Digital media has also become a platform for cosmetics brands to launch new

products and create awareness about them. For instance, Maybelline

used Twitter with the hash tag doesn’t last long enough to promote its new

range of lipsticks and also launched its latest collection of nail paints on its

website.

With a well-defined and well aligned objective, brands today are increasingly

turning towards women of today, creating campaigns that grab enough eyeballs

for top of mind reference. From going all out on the digital space to justifying it

with extensive BTL activities – spends are becoming streamlined, attention is

high and women are the centre of everyone’s attention.

Like most of you I was pretty unconvinced about the new Lakme Pop tints

which Lakme introduced with lot of pomp and show. Have  you noticed that

ever since Kareena Kapoor has become Lakme Ambassador, there has been a

sharp rise in their product pricing. Few days back when I was picking up the

pop tints I found every one jumping over their Rs100 discount but nobody was

bothered to check them out. In fact Lifestyle counter did not have any testers

for these and new products were hidden somewhere.India is a price sensitive
country and I am sure it’s going to take little time for these pop tints to make a

mark.

As far as Revlon Lip Stains are concerned they have been around , loved and

hated .Some just got them in 3-4 shades and some didn’t like them all but its

true that it has been one of the recent hot selling products of Revlon.

Before we move ahead let us know what both companies claim and the pricing

ABOUT LAKME POP TINTS:-

Lakmé Absolute POP TINTS, 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 and nail tints in pastel tones

of blue, green and corals.These thick creamy pencils in 8 pop shades deliver

rich deep color and incredible shine in just a stroke, to give you lips

that pop like it should.

o Price – INR800

 Revlon Just Bitten Kissable Balm Stain

Its a pampering balm fused with a lightweight lipstain in an adorable chubby

crayon. Just Bitten Kissable Balm Stain gives softer, smoother lips with a

perfect flush of color that lasts hour after hour. The gel formula comes in 12

vibrant shades that match any look or mood.

 Lightweight Lipstain + Moisturizing Balm


-100% of women who tried it felt their lips were instantly moisturized with a

soft stain of color

-Retractable chubby crayon, no sharpener required

 EXPERT TIPS:

 Step 1: Apply Just Bitten Kissable™ Balm Stain evenly to clean, bare lips.

Build color and coverage as desired.

 Step 2: Reapply as desired for moisturizing shine throughout the day.

Price – INR 600

 
LAKME POP TINTS  VS REVLON JUST BITTEN KISSABLE BALM

STAIN

o Pigmentation  – With Revlon Lip Stains I need to glide them two three

times to cover up the pigmentation and get even application.I need to

wait for a 2-3 seconds for the tint to settle down.It works pretty fine on

the lower lip but on my upper lip which is pigmented it needed little

work. Whereas Lakme pop tint seems more or less like a light weight

lipstick which needs no layering as such.They hide pigmentation easily.

If you have highly pigmented lips then you might need two layers max

unlike Revlon lip stains.

o Hydrating – Revlon lip stain looks glossy and more hydrating but they

are not. Lakme one is more hydrating and doesn’t need lip balm

underneath. Lakme Pop tints will suit dry lips more and won’t

accentuate fine lines which Revlon does to an extent.

o Shimmer – Lakme Pop tints have really really fine shimmer where as

Revlon is more glossy without shimmer in it.

o Staying power –  In Lakme pop tints, intense shades like Red or berry

stay for 2-3 hours and then the tint stays for a while but less intense

shades are not that long staying and need touch ups.Same is the case

with Revlon ones but I do find they are tad bit longer staying than

Lakme.
o Packaging – Revlon packaging is more fun and is easily recognized as

the shade on packaging is similar to  the shade inside. whereas Lakme

packaging is black with a transparent cap.

o Price – Lake Pop tints cost INR 800 where as Revlon  Lip Stains cost

INR 600.

Swatches of Revlon lips stain Romantic  and Lakme Pop tint Plum rush  .

Revlon is more glossy where as Lakme one is more pigmented and even .

I prefer Lakme more because it suits my pigmented lips, moreover they are not

drying. With Revlon, if you didn’t come across the drying and pigmentation

problem then you should stick to it as  it cost 200 bucks less and there is more

shade variation in it 

SO WHAT ARE YOU GOING TO PREFER ? REVLON JUST BITTEN

KISSABLE BALM STAIN OR LAKME POP TINTS ?

 P.S – Our team members bought more pop tints although everyone was

saving . I am so jealous to know that Shweta got them of INR 720 .

You might like reading these also

o Avon Ultra Color Rich Vitalicious Lipstick Enduring Sable Review &

Swatches

o Milani Runway Eyes Fashion Shadows Haute Couture

o Things To Learn From Celebrities -Beauty & Fashion Blunders


o Forest Essentials Rupam Nourishing Facial Cleansing Paste Review

o Coastal Scents Duo Defining Wand Platinum/Aztec Review & Swatches

o Purely Pro Blush Universal Review & Swatches

o Maybelline Baby Lips Lip Balm Antioxidant Berry Review

o MAC Archies Girl’s Collection OH OH OH Lipstick Review &

Swatches

o Kitten Heels!

o My Birthday On Instagram

o 8 Surprising Reasons you’re Not Losing Weight

Makeup brands on social media may not be as product oriented as retail

brands but neither are they exceptional in their social media strategies. While

some of them are doing a great job by promoting blogger reviews, running

contests and creating branded content, others are merely using social media as

another platform to promote their offers and products.

In addition to pushing their products, these brands are also luring their target

market with cosmetic hampers. They should, instead, try and pop in some

innovation into their campaigns to effectively boost their branding. When

everyone is doing the same, what makes your brand stand out from the crowd?

I have studied 10 brands within a 3 month period between 15th November

2013 to 15th February 2014.

 Revlon

 Maybelline
 Olay

 Ponds

 Avon

 Oriflame

 Elle18

 Lakme

 Colorbar

 Loreal Paris

On Twitter, only 3 brands cross the 10K+ mark. L’Oreal Paris India is leading

with 18K+ followers, followed by Revlon India with 16K+ followres

and Oriflame India with 12K+ followers.

Unlike Facebook, brands enjoy a better growth on Twitter, ranging upto

65%. Lakme India has the highest growth at 64% while Olay India has the

lowest growth at 6.5%.

Top 10 Cosmetics Brands in India

Cosmetics are something which have become an integral part of a woman’s

fashion statement. They not only manage to camouflage her flaws but also

enhance her features. ASSOCHAM prepared a report in 2012 on India’s

cosmetics market and showed that it has been growing at an annual pace of

20%. In 2013 the Indian cosmetic industry is valued at 29,000 crores. The

following list tries to capture the various brands that are popular among the

consumers due to different reasons ranging from being economical, or being

organic or being made up of superior ingredients.


LIST OF TOP 10 OR LEADING COSMETICS BRANDS IN THE

INDIAN MARKET

Lakme

Lakme is a reputed Indian brand which is owned by Unilever. The company is

headed by Mr Anil Chopra who is the CEO of the company. Lakme was

founded in the year 1952 by JRD Tata. In 1996 the Tata group decided to sell

off its stake in Lakme to Hindustan Lever Limited. Lakme was also ranked at

47th as one of the most trusted brands in India according to The Brand Trust

Report in 2011. This brand also sponsors the Lakme Fashion Week (LFW)

twice a year. It also launched the Lakmé Perfect Radiance and Lakmé eyeconic

kajal which gained significant market share. In the financial year 2012,

Hindustan Unilever Limited had a rise in profit before tax and interest of about

23%.

Lotus

 The company Lotus Herbals Ltd. was set up two decades ago in the year 1993

by Kamal Passi. This brand deals with manufacturing and selling of various

kinds of cosmetics. The list includes face cleansers, sunscreens, winter care,

hair oils, and shampoos. Passi knew the importance of good packaging and

made sure his products stand out in design. He also priced his products at least

10-15%  lower than the contemporary brands in the segment. However he

doesn’t believe making a huge expenditure on advertising. Lotus Herbals Ltd

Company specialises in producing cosmetics that claim to have Ayurveda as

well as herbal goodness. The brand promotes their products by accrediting their
USP to be an amalgamation of traditional knowledge along with modern

technology. They believe in making use of herbal ingredients and making their

product devoid of chemical-based, synthetic cosmetics. This brand is also

strictly against the cruel practice of animal testing. Lotus Herbals Ltd. is

growing at a rate of 35%-40% a year.

Biotique

Biotique was launched by Vinita Jain in the year 1984. This brand also

manages to stand out in the world of chemical-based cosmetics as it doesn’t

contain any artificial preservatives or synthetic fragrances. The ingredients

used are extracted naturally from herbs. Moreover the herbs/plants used for

extracting raw material are also monitored from its nascent stage hence the end

product is organic.

L’Oreal

L’Oreal is one of the giants in the cosmetic segment in the world. Jean-Paul

Agon is the chairman and CEO. The Company has been present in India for

about 20 years. Today, L’Oreal India is a subsidiary of L’Oreal which is

growing at a very fast rate. L’Oreal Paris is one of the trademark brands of this

company. In 2013 L’Oreal decided to invest Rs.970 crores in India. Moreover

in the same year L’Oreal made its first acquisition in India - Cheryl’s

Cosmeceuticals, thus entering the professional skincare segment. In 2013 the

company grew at a commendable rate of 70%.


Shahnaz Husain

This brand was founded in the 1970’s by Shahnaz Husain. In the year 2006 she

was awarded the Padma Shri. This brand also tries to harness the natural

goodness of Ayurveda. Currently it has around 350 products spread out over

different categories like skin, hair, makeup etc. The brand claims that its USP is

the hard work done on research so that the quality of the product is of superior

grade.

Revlon India

Among all the international players in the cosmetic segment in India, the first

one to launch was none other than Revlon in 1995. It happened due to the

collaboration between Umesh K Modi along with Revlon Pvt Ltd  in 1994 .

Pricing is done for the mid-level consumers as it neither too high nor too low

priced. The company owns approximately 20-25 % of the domestic colour

cosmetic market share. 

Maybelline

It was launched way back in 1915 by T.L. It was later acquired by L’Oreal and

in India it was launched by  its subsidiary, L’Oreal India. One of the major

factors that have helped this brand to carve its niche is being reasonably priced

in spite of having an international appeal. The Maybelline Colossal range was a

huge hit in India which made the brand more popular.

Himalaya

The Himalaya Drug Company was founded in the year 1930 by Mr. M. Manal

who had a vision to make Ayurveda accessible to the world. Himalaya has been
able to patent its sunscreen, Under-Eye Cream, Anti-Acne range and Hair Loss

cream among others from the United States Patent and Trademark Office. The

business of Himalaya in India contributed 60% of the brand’s sales of Rs 1,

200 crores in 2011. Himalaya is also the owner of the popular face wash

‘Purifying Neem’ which is very popular in a country like India where problems

like acne and greasy skin are widespread.

Colorbar

Colorbar Cosmetics is one of the leading brands of cosmetics in India. It was

founded in 2004.  The founder as well as managing director of the brand is

Samir Modi.  The brand is known for its bright peppy colours and has a number

of products to add colour to nails, eyes, lips and face. 

Elle 18

 The brand Elle 18 is owned by Hindustan Unilever Limited (HUL).  It was

launched in 1998. Elle 18 is aimed at the youth as it has bright colours along

with neon shades in its products. The pricing of the products are also done

keeping in mind the youth. The Elle 18 Colour Pop Liner (5ml) is priced at Rs

75.
NEED AND SIGNIFICANCE OF THE STUDY

Many of the world's popular cosmetics brands entered the Indian market in the

1990s as the Indian market opened up to foreign companies. The cosmetics and

personal care industry has been growing at an average rate of 15-20 percent for

the last few years. Growth has come mainly from the low and medium-priced

categories, which account for 90 percent of the cosmetics market in terms of

volume. Even though mass-market products still constitute the major portion of

the India cosmetics and toiletries market, increased disposable income has led

to growth in demand for premium products. The urban population in particular,

with its rising purchasing power, is the main force that drives the demand for

various cosmetic products in India.

The reasons for the growing demand for cosmetic products in India also

include: greater access to television, which has created a growing awareness of

the western world; increased advertising in general; and greater product choice

and availability. The success of contestants from India at various well known

international beauty pageants in the last few years has also contributed to

making Indian women more conscious of their appearance and more aware of

western cosmetic products and brands. Also, a boom in the Indian fashion

world has contributed to the rise in demand for professional beauty care

products.

Even with double-digit growth rates, the market penetration of cosmetics and

toiletries products in India is very low. Current per capita expenditure on

cosmetics is approximately $1.00, as compared to $36.65 in other Asian


countries. This low market penetration for cosmetics and personal care

products in India can be viewed as an opportunity for more significant growth

down the road in this country of 1 billion people.

The current size of India's cosmetic and toiletries market is about $950 million.

The fastest growing segment is color cosmetics, accounting for around $60

million of the total market. Nail enamels and lipstick account for about round

65 percent of the color cosmetic segment. Revlon and L'Oreal dominate the

small premium lipsticks and nail enamels niches. Lipstick sales account for

nearly a third of the market at $21 million, while the market for nail enamels is

about $23 million. Lakme, a brand originally introduced by the Tata Group of

India, but now owned by Hindustan Lever (HLL) of the Unilever group, Tips

& Toes, and Revlon dominate the color cosmetics market. The color cosmetics

segment is very competitive and has a high penetration level, compared to

other market segments.


OBJECTIVES OF STUDY

The objectives of this project report articulate:-

 To analyze the factors which influence the buying

decisions.

 The analyze the effect of media on buying behaviour.

 To know the attitude of consumer users regarding the

branded cosmetic products.

 To study the behaviour of the consumers towards the

cosmetic products.

 To study the most preferable cosmetic brand among

the consumer
LITERATURE REVIEW

Lakmé is an Indian cosmetics brand which is owned by Hindustan

Unilever and run by CEO Puskharaj Shenai. Having Shraddha Kapoor as the

ambassador, it ranked at number 1 among the cosmetics brands in India. Lakme

started as a 100% subsidiary ofTata Oil Mills (Tomco). It was named after

the French opera Lakmé, which itself is the French form of Lakshmi (the

goddess of wealth) who is renowned for her beauty. It was started in 1952

famously, because the Prime Minister Jawaharlal Nehru was concerned that

Indian women were spending precious foreign exchange on beauty products

and personally requested JRD Tata to manufacture them in India. Simone

Tata joined the company as director and went on to become the chairperson. In

1996, Tata sold off their stakes in Lakmé Lever to HLL, for Rs 200 Crore (45

million US$).

In the Brand Trust Report 2012, Lakme was ranked 104th among India's most

trusted brands and following the next year it was ranked 71st among India's

most trusted brands. In 2014, Lakme was ranked 36th among India's most

trusted brands according to the Brand Trust Report 2014. The company is the

title sponsor for Lakme Fashion Week (LFW) a bi-annual fashion event which

takes place in Mumbai.

Why was the cosmetics company named Lakme?

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.

(Although some sources claim that Nehru took up this issue because a certain

women’s association approached him to put forward their concerns about non-

availability of affordable beauty products. But having studied about Nehru’s

visions and views, I am of the opinion that he had considered beauty products

as luxury and would have never spent any time/effort to satisfy those women’s

luxurious needs. Instead, he took up the issue because it was affecting forex

and related to the economy. Banning such products was impossible in a

democracy, so starting an Indian company was the only solution.)

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. In

1996, Tata sold its stake in Lakme to HLL since it felt that HLL being an FMCG

company will do better justice to the company and HLL have continued to efficiently

nurture the brainchild of JRD. A recent survey ranked Lakme to be one of the top 50

most trusted brands in India.


About the Revlon

Revlon, Inc. is an American cosmetics, skin care, fragrance, and personal


care company founded in 1932.

HISTORY
Revlon was founded in the midst of the Great Depression, 1931, by Charles

Revson and his brother Joseph along with a chemist, Charles Lachman, who

contributed the "L" in the Revlon name. Starting with a single product — a new

type of nail enamel — the three founders pooled their resources and developed

a unique manufacturing process. Using pigments instead of dyes, Revlon

developed a variety of new shades of opaque nail enamel. In 1937, Revlon

started selling the polishes in department stores and drug stores. In six years,

the company became a multimillion dollar organization. By 1940, Revlon

offered an entire manicure line, and added lipstick to the collection. During

World War II, Revlon created makeup and related products for the U.S. Army,

which was honored in 1944 with the Army-Navy "E" Award for Excellence.

By the end of the war, Revlon was listed as one of America's top five cosmetic

houses. Expanding its capabilities, the company bought Graef & Schmidt, a

cutlery manufacturer seized by the government in 1943 because of German

business ties. This acquisition made it possible for Revlon to produce its own

manicure and pedicure instruments, instead of buying them from outside

supply sources.
In November 1955, Revlon went public. The IPO price was $12 per share, but
it reached $30 per share within 8 weeks.

In the 1960s, Revson segmented Revlon Inc into different divisions, each
focusing on a different market. He borrowed this strategy from General
Motors. Each division had its own target customer:

 Revlon, the largest and most popular-priced brand

 Princess Marcella Borghese, upscale/international

 Ultima II, premium

 Natural Wonder, juniors

 Moon Drops, dry skin

 Etherea, hypo-allergenic
LIMITATIONS

1. Limited area ; The main limitation of the COSMETIC project I found

that there was limited area in survey area was only Aligarh.

2. Lack of response from respond side ; COSMETIC customer has

lack of respond they don’t has keen interest while filling the

questionnaire.

3. Time boundation ; There was time boundation while filling the

questionnaire it was so difficult to filling all the questionnaire in a

limited time.

4. Low data availability ; Customer has low data in regard of

COSMETIC they don’t know the various COSMETIC brands

5. Small sample size


CONCEPTUAL FRAMEWORK
CONCEPTUAL FRAMEWORK

The skin care market in India is about $180 million. The market for specialized

skin care products such as sunscreens, toners, cleansers, astringents, dark circle

removing creams, anti-wrinkle creams and day and night creams has grown

steadily in recent years. Most consumers, however, are still are using only

facial cream and moisturizers, with moisturizing lotions, fairness creams and

facial cleansers being the most popular products. These products account for

approximately 60 percent of the skin-care segment. The major players in this

segment are Lakme, Ponds, Fair & Lovely, J.L. Morison and Revlon.

The size of the hair care market in India is about $200 million. International

companies, including Unilever, through its subsidiary, HLL, and Procter &

Gamble dominate the shampoo market in India. The hair coloring and

styling/gel market segment is at a nascent stage and there are not many local

brands available. Foreign brands such as L'Oreal and Wella have started to

make inroads into this segment by positioning hair colors as a fashion

accessory. The market penetration of these products is very low, however, and

limited to a small section of the urban market. The market for hair creams,

mainly used for hair grooming by men, is also very small. Hair oiling, an age-

old Indian tradition mainly used as a pre-wash nourishment treatment, is a

major niche in this sector.

In the last few years, there has been a renewed craze for herbal cosmetic and

personal care products, especially in the skin care segment with the growing

belief that chemical-based cosmetics are harmful. Local majors, including


Shahnaz, Lotus Herbals, and the Biotique brands dominate the premium herbal

cosmetics segment in India, estimated at $100 million. Many companies have

expanded their product range into herbal variants, including companies with a

primary focus on health care products.

Market penetration levels of international cosmetics brands in India are low.

Foreign brands currently constitute only 20 percent of the market, due largely

to the higher pricing these brands carry. Foreign brands initially garnered sales

in the market based on their international brand image, but repeat purchases

were not forthcoming. To hit their sales growth targets, several foreign

companies have had to reformulate their pricing strategies to tap the most

promising market segment—urban women in the middle and upper income

groups in the age range of 23-50.

The toiletries market segment in India is well developed and dominated by

multinational companies and a few large Indian companies. This segment is

also characterized by high entry barriers, a high rate of new product launches,

and high advertising expenditures. Bath and shower products account for the

largest share of the toiletries market segment. The toiletries segment can be

divided into two categories: the less price sensitive niche and the highly brand

conscious premium niche. The price sensitive niche caters to the middle and

lower middle class and the premium niche caters to the urban and higher class.

Nowadays, cosmetics and toiletries are not just of interest to women

consumers. Indian men are increasingly using body sprays, colognes and other

cosmetics and toiletries. With a rising demand from men, many players are
coming out with men's cosmetic products, especially in skin care. Overall, the

market size of the men's personal care segment is about $165 million, with

Gillette having won the largest market share to date. Other major players in this

segment include Godrej, J.L. Morison and HLL.

India's annual import of cosmetics and toiletries and intermediate raw materials

is around $121 million, of which the U.S. has a share of approximately 10

percent. France, Germany, Italy, Netherlands, and Spain account for the lion's

share of imports, with Australia, China, and Japan accounting for the rest.

Regulatory Regime

Prior to March 31, 1999, cosmetics and toiletries were on an Indian import

"restricted list". This meant that a special import license was required to import

cosmetics and toiletries into the country. Today, India permits the importation

of cosmetics and toiletries without any restrictions. Although the importation

process has been made easier and India has also reduced import tariffs

substantially from a high of over 70 percent a couple of years ago, the current

34.44 percent total import tariff on cosmetics products though very much an

improvement is still on the higher side as compared to other countries. Import

tariffs on cosmetic products last year were 40.38 percent.

Effective January, 2001, the Indian government made it mandatory for all pre-

packaged goods (intended for direct retail sale) imported into India to bear the

following labeling declarations: i) name and address of the importer; ii) generic

or common name of the commodity packed; iii) net quantity in terms of

standard unit of weights and measures; iv) month and year of packing in which
the commodity is manufactured or packed or imported; and v) maximum retail

sales price (MRP) at which the commodity in packaged form may be sold to

the end consumer. The MRP includes all taxes, freight transport charges,

commission payable to dealers, and all charges towards advertising, delivery,

packing, forwarding and the like. Compliance of the above-stated requirements

has to be ensured before the import consignments are cleared by customs in

India. The import of pre-packaged commodities such as raw materials, bulk

imports, etc., that need to undergo further processing before they are sold to

end consumers are not included under this labeling requirement.

The term "cosmeceuticals" is not recognized in India. Doctors in India are not

allowed to sell products and would not prescribe anything imported that does

not have FDA approval. If a cosmeceutical product cannot be sold as an over-

the-counter item and is classified as a pharmaceutical item, the product would

require approval from the office of the Drug Controller of India in the Ministry

of Health. The import of such products will only be allowed if the generic

product category is registered with the Drug Controller's Office. The contact

address of the Drug Controllers office is: Drug Controller of India, Ministry of

Health, Government of India, 342, 3rd floor, A Wing, Nirman Bhawan, New

Delhi 110001

Best Prospects

Perfumes and fragrances, and specialized/professional skin care and hair care

products are some of the major product niches with promising prospects for

U.S. companies. Sophisticated products such as fragrances, non-transfer long-


stay lipsticks, liquid lip color, eye make-up, anti ageing/anti wrinkle creams,

professional hair-care products, preparations for shaving creams, are some of

the major cosmetics items imported by India.

Industry sources expect significant growth in the mass segment and

comparatively less so in the premium segments of the Indian cosmetics market.

The market base in the premium segment is very small, therefore, the scope for

rising volumes in this segment is modest. Prospects for increasing volumes is

higher in the mass-market segment mainly because the market base for this

segment is bigger. This segment can best be tapped with lower pricing

strategies, especially when trying to persuade end-users to try out new

products.

Distribution channels
An increasing number of cosmetics companies are now dealing with

consumers directly through special exclusive counters in major departmental

stores and malls featuring their own beauty consultants. Service marketing

strategies, such as point-of-sale advice and beauty counseling, have proven to

be effective methods to increase sales of cosmetics

and personal care products. Beauty counselors or advisors at retails outlets

have been very successful in gaining attention, creating product awareness and

overcoming consumers fears about many cosmetics and personal care products

such as home hair permanents and color cosmetics.

L'Oreal India has established a consumer advisory unit and Ponds offers skin

care advise through touch-screen kiosks and telephone help lines for skin care.

L'Oreal also markets its range of specialized hair care products exclusively

through salons and beauty parlors and is currently the only company in the

market that has a hair color range tailored exclusively for parlors. To promote

the growth of their products, a number of Indian companies have established

exclusive franchised beauty salons in major metros that offer specialized

training courses to customers. Beautique, an exclusive one-stop shop for

imported cosmetic brands in New Delhi, offers qualified beauty consultants to

provide free advice and makeovers to consumers. Companies also continue to

innovate their selling methods. For example, Baccarose, owners of the

Chamber brand, organizes tea party make-up sessions at major Indian cities.

In general, India is a very price sensitive market. Cosmetics and personal care

product companies, especially the new entrants, have had to work out
innovative strategies to satisfy Indian preferences and budgets in order to

establish a hold in the market. For example, given the price-sensitivity of

Indian consumers, many cosmetic and toiletries companies launched their

products in smaller pack sizes to make them more affordable. Small pack sizes

have proved to be very popular in the Indian market as the concept offers

consumers lower purchase costs and the opportunity to try new products.

A strong brand promotional campaign, good distribution network, constant

product innovation and quality improvement, and the ability to provide a

variety of quality products are some of the major reasons for the success in the

market. Understanding the attitudes, preferences and aspirations of the

different segments of India's consumers is crucial to achieving success in the

Indian market.

ABOUT COSMETICS...

Cosmetics is general term applied to all preparations used externally to

condition and beautify the body, by cleaning, coloring, softening, or protecting

the skin, hair, nails, lips, or eyes. Perfumery is usually excluded from the field

of cosmetics, although perfumes are commonly manufactured in coordination

with cosmetics.

The use of cosmetics is worldwide and dates from the cosmetics as

they are now known originated in the Far East, the study of non-industrial

cultures indicates the use of cosmetics in every part of the world. The war

paint of Native Americans, the tattooing and scarification (making of

superficial incisions of the skin) practiced by many peoples (the Maori of New
Zealand and numerous African cultures, for instance), and the use of woad (a

plant dye used by ancient Britons to paint their bodies blue) are all forms of

cosmetic used for psychological intimidation of the enemy as well as

adornment.

The earliest known cosmetics come from the 1st Dynasty of Egypt (about

3100-2907 BC). Tombs of this era have yielded unguent jars, and from

remains of later periods it is evident that the unguents were scented. Such

preparations, as well as perfumed oils, were extensively used by both men and

women to keep the skin supple and unwrinkled in the dry heat of Egypt.

Egyptian women also developed the art of decorating the eyes by applying

dark green color to the lower lid and by blackening the lashes and the upper lid

with kohl, a preparation made from antimony or soot. It is likely that the Jews

adopted the use of cosmetics from the Egyptians, since references to face

painting appear in the Old Testament.

By the middle of the 1st century AD, cosmetics were widely used by the

Romans, who employed kohl for darkening eyelashes and eyelids, chalk for

whitening the complexion, rouge and depilatories (hair-removing

preparations), and pumice for cleaning the teeth. In the Middle Ages the

Crusaders found cosmetics widely used in the Middle East, and it was they

who spread the use of cosmetics throughout Europe.

The almost universal use of cosmetics in modern times has grown with the

scientific study of the ingredients employed. This research was begun by the
French in the 19th century, and led to the development of more and better

cosmetics at low cost.

A large variety of cosmetics is generally available today. Cold cream is an

emulsion of various oils and waxes and water; it is employed to cleanse and

soften the skin. Various purpose-made moisturizers and cleansers are also

available. Face powder and dusting powder, based on talcum (powdered

magnesium silicate) and zinc oxide, are used to dry and give the skin a satin-

like texture. Lip color, either applied directly as a lipstick or brushed on to the

lips, is made of cocoa butter or lanolin, and is manufactured in an endless

variety of shades, as are rouges, mixtures of red pigments and starch or finely

powdered clay. Bath salts and other bath preparations combine water-softening

agents such as sodium carbonate or borax with perfume; bath oils are also a

popular skin-softening and perfuming aid. Nail polishes are lacquers or

plastics available in many colors. Hair lotions and sprays are used to condition

the hair, keep it in place, or make it glossy. Shampoos are based on soap or

synthetic detergents.

Hair-coloring dyes, tints, and rinses, available in many shades and colors, are

widely used cosmetic products. Henna is a vegetable dye, used for centuries to

impart a red tint to the hair. Weak solutions of hydrogen peroxide are often

employed as hair bleaches. For coloring the eyebrows and eyelashes, mascara

is generally used. This is a compound of gum and black, brown, green, or blue

pigment. Sulphides of calcium and barium, which remove hair from the skin,
are generally the active agents in cosmetic depilatories. Bronzes are creams

that impart a color to the skin similar to that of suntan.

Cosmetics and perfumery are by no means confined to use by women, as

might be assumed. Grooming aids frequently used by men include powders,

colognes, and lotions, particularly alcohol-based aftershave lotions; hair tonics,

often with an alcohol or quinine base; and deodorants.

Annual retail sales of men's and women's toiletries in the Western world today
make cosmetics a large and highly profitable industry.
Top 10 International Brand

1. Littles India, Mumbai, India

baby products feeding bottles polycarbonate polypropylene silicone rubber

teats nipples pacifiers infant toys bibs garments non spill cups training cups

plastic sippers baby wipes baby cosmetics such as baby talcum powder soap,

adult tooth brush -- oem orders for baby bottles welcome

2. Bagla Cosmetics Pvt. Ltd., New Delhi, India

M/S Bagla cosmetics Pvt. Ltd. was founded on 1.8.1997 but after extensive

Research & Development for 2 Years, we launched our herbal based beauty

products, derived from latest technique which can only ensure no side effects.

Our company has consistently been meeting the expectation level of customers

& providing optimum satisfaction.

3. Aliza Cosmetics, New Delhi, India

We here wish to introduce ourselves as one of the leading manufacturer &

supplier of high class export quality Nail polish, Nail Enamel Remover, non-

settling Nail Lacquers, Lipsticks, Nail Polish Raw Materials & Chemicals for

Nail Polish etc. since 1975.

4. Estelle chemicals pvt ltd, Ahmednagar, India

We Estelle chemicals pvt ltd are the leading manufacturers of various food,

osmetic, harma additives our products are- 1) Glycerol monostearate

(SE/NSE) 2) glyceroltristearae 3) sorbitan monostearate, sorbitan mono

oleate, sorbitan mono palmitatate,sorbitan mono laurate, 4) ethylene glycol


monostearate, ethylene glycol di stearate 5) coco diethanol amide, we are also

exporting all the above said products kindly feel free to contact us for any

above said products.

5. Mars Exim Private Limited, Ludhiana, India

We are manufacturers & Govt. of India Recognized Export House. We have

satisfied clients in around 45 countries. We manufacture Powdered Diet Juice

in 6 flavours (5gms for 2 litre) Sugar candies, Biscuits, Whiskey, Rum &

Gin.,Baking Powder in pouch pack, Aji No Moto etc Pharmaceuticals &

Surgicals: Tablets, capsules, syrups, ointments, Injectables, Orthopaedic Items,

cosmetics & Herbal Products and hospital supplies like surgicals etc.

6.Dew Cosmetics, India

We would like to introduce ourselves as manufacturers, suppliers and

exporters of herbal cosmetics for skin and hair care like Dew Herbal Raal Hair

Oil,Dew Herbal Shikakai Shampoo, Dew Herbal Witch Hazel Astringent, Dew

Herbal Brahmi Hair Oil, Dew Herbal Face Pack for normal/dry skin, Dew

Herbal Face pack for oily skin, etc since

7.All-Season Herbs Pvt Ltd, Bangalore, India

With over 35 yrs. Experience in traditional medicine and herbal industry, the

founders of All-Season Herbs have come a long way in exploring herbs and

their derivatives. This rich experience in the trade and its growing commercial

significance has impelled us to diversify into growing, trading and


manufacture of Botanical / Herbal extracts for Colour, Flavour, cosmetics,

Neutraceutical and Pharmaceutical industry

8.DAXAL COSMETICS P. LTD., Ahmedabad, India

DAXAL cosmetics P. LTD. Is Introduce Itself As One Of The Leading

Manufacturer & Exporter Of cosmetics & Toiletries Items Like Toothpaste,

Shaving Cream, Detergent Powder, Shampoo from India.

9.Ayur International, New Delhi, India

We are the Indias largest producer of Herbal cosmetics. Our product range

includes Shampoos, Creams, Face Packs, Face Masks, Lotions etc

1O. Indusspray, Bangalore, India

Contract manufacturers of aerosols. Also exporters of cosmetic aerosols,

household aerosols, industrial aerosols, medicinal and pharma aerosols

Hindustan Lever Ltd stays well ahead of the competition with

breadth of presence, impressive distribution and continued

investment

Although new players entered cosmetics and toiletries, and existing players

added to their offerings, Hindustan Lever Ltd remained well ahead of the

competition. In a highly-fragmented market, Hindustan Lever Ltd was the only

player to hold a double-digit value share in 2006, with Colgate-Palmolive

India Ltd a distant second. Hindustan Lever Ltd's success was on account of its

breadth of presence across various cosmetics and toiletries products, coupled

with the best distribution system nationally and continued investment in


product promotion. Domestic companies also looked at the buyout of brands

and companies as a means of improving value growth, with players like Dabur

India Ltd, Godrej Consumer Products Ltd and Marico Ltd all on the prowl for

companies and brands that not only add to the top line but also bring in

intangible benefits.

Robust forecast performance predicted, with competition expected to hot up

Cosmetics and toiletries is expected to continue on its upward growth curve

during the forecast period. While value growth of the more penetrated bath and

shower products and oral hygiene is expected to be lower than overall value

growth of the market, deodorants, colour cosmetics and fragrances are all

expected to see double-digit constant value CAGRs (compound annual growth

rates). With this growth will come increased competition, and a growing array

of domestic and international brands are expected to enter the fray.

Developments in modern retailing in India are predicted to help these new

brands establish their presence more rapidly than during the review period.
Influencing factors of buying behvaiour of Cosmetics products

Consumer buying behaviour is influenced by four key set of buyer

characteristics: cultural, social, personal, and psychological. Although many of

these factors cannot be influenced by the marketers, they can be useful in

identifying interested buyers and in shaping product and appeals to serve

consumer needs better.

Culture: is the most basic determinant of a person's wants and behaviour. It

includes the basic values, perceptions, preferences, and behaviours that a

person learns from family. But where as Subculture is "culture within cultures"

that have distinct values and lifestyle and can be based on anything from age of

ethnicity.

Social factors: also influences a buyer's behaviours. A person's references

groups has strongly effect product and brand choices.

Personal: characteristics influence the buying decision. The consumer lifestyle

is the whole pattern of acting and interacting in the world are also an important

influences on purchase decisions.

Brand

Brand can be one of the factors that why young people buy product, they

believe on brand because their parents or friends use it. Or they build an image

that this brand provides them the most satisfaction level to look them attractive.

Advertising

Advertising is an element that is used to convince message to in a very

informal way to buy the product as it is most satisfy them when uses.
Advertising can be an excellent tool to catch the youth attention; this may lead

to switch the brand and try the other brand of product and look them more

attractive than before.

Price

As the dissertation focus of attention is youth particularly with the working

class, still some are conscious about the affordable price with good quality of

product.

Product quality

The young generation is concern about the quality of the product. They want to

use the product without any side effect or harm on their skin.

Status

The art of handling self-image can take on a great deal of importance in

cosmetics specially developed and allow them to remain attractive in the eyes

of other. Most youth of both genders wear makeup. Does this mean they are all

looking for attention? Do all youth who wear makeup have self-esteem?

Lifestyle

The time youth dedicate to the lifestyle not only plays a part in building

harmony between the body and the mind. It also takes part in building self-

respect. The way we see ourselves affects the way others see us. This is why

quality of life starts here, since essentially, men and women exist in the eyes of

others. Youth wear cosmetic makeup because that would make them feel

different about their looks.


Industry Today

The worldwide annual expenditures for cosmetics is estimated at U.S. $18

billion. Of the major firms, the oldest and the largest is L'Oreal, which was

founded by Eugene Schueller in 1909 as the French Harmless Hair Colouring

Company (now owned by Liliane Bettencourt 27.5% and Nestle 26.4%, with

the remaining 46.1% are publicly traded). The market was developed in the

USA during the 1910s by Elizabeth Arden, Helena Rubinstein, and Max

Factor. These firms were joined by Revlon just before World War II and Estee

Lauder just after.

Like most industry, cosmetic companies resist regulation by government

agencies like the FDA, and have lobbied against this throughout the years.

Criticism and controversy

Further information Campaign for Safe Cosmetics and California

Safe Cosmetics Act of 2005

During the 20th century, the popularity of cosmetics increased rapidly.

Especially in the United States, cosmetics are used by girls at an increasingly

young age. Many companies have catered to this expanding market by

introducing more flavored lipsticks and glosses, cosmetics packaged in glittery,

sparkly packaging and marketing and advertising using young models. The

social consequences of younger and younger beautification has had much

attention in the media over the last few years.

Criticism of cosmetics has come from a variety of sources, including feminists,

animal rights activists, authors and public interest groups. There is a growing
awareness and preference for cosmetics that are without any toxic ingredients,

especially those derived from petroleum, sodium lauryl sulfate (SLS), and

parabens.

Numerous published reports have raised concern over the safety of a few

surfactants. SLS causes a number of skin issues including dermatitis.

Parabens can cause skin irritation and contact dermatitis in individuals with

paraben allergies, a small percentage of the general population. Animal

experiments have shown that parabens have a weak estrogenic activity, acting

as xenoestrogens.

Prolonged use of makeup has also been linked to thinning eyelashes.

Synthetic fragrances are widely used in consumer products. Studies concluded

from patch testing show synthetic fragrances are made of many ingredients

which cause allergic reactions.

Makeup Types

 Lipstick, lip gloss, lip liner, lip plumper, lip balm, lip luster, lip

conditioner and lip boosters.

 Foundation, used to color the face and conceal flaws to produce an

impression of health and youth. Usually a liquid, cream, powder or

mousse.

 Powder, or face illuminator used to set the foundation, giving a matte

finish.

 Rouge, blush or blusher, cheek stain used to color the cheeks and

emphasize the cheekbones. This comes in powder, cream and gel forms.
 Bronzer, used to create a more tanned or sun-kissed look.

 Mascara and lash extender, lash conditioner used to enhance the

eyelashes. Can be of different colors and even waterproof.

 Eye liner and eye shadow, eye shimmer and glitter eye pencils as well as

different color pencils used to color and emphasize the eyelids (larger eyes

are a sign of youth).

 Eyebrow pencils, creams, waxes, gels and powders are used to fill in

and define the brows.

 Nail polish, used to color the fingernails and toenails.

 Concealer, a type of thick opaque makeup used to cover

pimples, various spots and inconsistencies in the skin.

Also included in the general category of cosmetics are skin care products.

These include creams and lotions to moisturize the face and body, sunscreens

to protect the skin from damaging UV radiation, and treatment products to

repair or hide skin imperfections (acne, wrinkles, dark circles under eyes, etc.).

Cosmetics can also be described by the form of the product, as well as the area

for application. Cosmetics can be liquid or cream emulsions; powders, both

pressed and loose; dispersions; and anhydrous creams or sticks.

Special Effects

Cosmetic contact lenses

In addition to over-the-counter cosmetic products, recent years have seen an

increasing market for prescription or surgical cosmetic procedures. These range


from temporary enhancements, such as cosmetic colored contact lenses, to

major cosmetic surgery.

Many techniques, such as microdermabrasion and physical or chemical peels,

remove the oldest, top layers of skin cells. The younger layers of skin left

behind appear more plump, youthful, and soft. Permanent application of

pigments (tattooing) is also used cosmetically.

Ingredients

While there is assurance from the largest cosmetic companies that their various

ingredients are safe to use, there is a growing preference for cosmetics that are

without any "synthetic" ingredients, especially those derived from petroleum.

Once a niche market, certified organic products are becoming more

mainstream.

Ingredients' listings in cosmetics are highly regulated in many countries. The

testing of cosmetic products on animals is a subject of some controversy. It is

now illegal in the United Kingdom, the Netherlands, and Belgium, and a ban

across the European Union is due to come into effect in 2009.


Comparison of Lakme and Revlon Products in price

Face Powder

 Lakme Base Magique Transforming Smoothing Primer (Price – Rs.

875)

 Revlon Face Perfector (Price – Rs. 875)

Setting Powder

 Lakme Rose Powder (Price – Rs. 120)

 Revlon Time Plus Compact Powder (Price – Rs. 200)

Concealer

 Lakme Absolute White Intense Concealer Stick (Price – Rs. 450)

 Revlon Photoready Concealer (Price – Rs. 750)

Blush

 Lakme Absolute Cheek Chromatic Baked Blush  (Price – Rs. 550)

 Revlon Ideal Luminous Blush  (Price – Rs. 599)

Bronzer

 Lakme Absolute Sun Kissed Bronzer  (Price – Rs. 699)

 Revlon Dream Mousse Bronzer  (Price – Rs. 990)

Highlighter

 Lakme Radiant Glow Face Illuminator Pen (Price – Rs 450)

 Revlon Age Defying Spa Face Illuminator  (Price – Rs 850)


Eye shadow Palette

 Lakme Natural Eyeshadow Palette Review (Rs.700)

 Revlon High Intensity Eyeshadow Palette (Price – Rs. 825)

Eyeliner

 Lakme Lasting Drama Studio Gel Eyeliner (Price – Rs.410)

 Revlon Colorstay Gel Eyeliner  (Rs. 690)

Pencil Eyeliner

 Lakme Absolute Eye Pencil (Price – Rs. 199)

 Revlon Eyeliner Pencil (Price – Rs. 270)

Mascara

 Lakme Eyeconic Curling Mascara  (Price – Rs. 250)

 Revlon Colossal Volume Mascara  (Price – Rs. 330)

Lipstick

 Lakme Nine to Five – Sun Shimmer (Price – Rs.500)

 Revlon Colorburst – Crimson (Price – Rs.610)


COLLECTION OF DATA
RESEARCH METHODOLOGY
Universe:
 Infinite
Research Design:
 Descriptive Research Design
Types of Data:
 Primary Data
 Secondary Data
Data Collection Methods:
1. Primary Data
 Questionnaire
2. Secondary Data
 Magazines
 Internet
 Reports
Sampling Technique:
 Non-probability (Convenience)
Sample Size:
 100
Sample Unit:
 Cosmetic Users (Womens)
Sample Area:
 Aligarh
DATA ANALYSIS AND

INTERPRETATION
DATA ANALYSIS AND INTERPRETATION

Q. 1: Are you the regular user of cosmetic product?


(A) Yes (B) No

Interpretation:

The above graph shows that 90% respondents are regular use of

cosmetic product and remaining 10% not use regular it.


Q. 2: Do you familiar with the brands?

(A) Yes (B) No

Interpretation:

The above graph shows that 75% respondents are familiar with the

brands and remaining 25% respondents not familiar with the brands.
Q. 3: Do you prefer the branded cosmetic product?

(A) Yes (B) No

Interpretation:

The above graph shows that 58 % respondents prefer the branded

cosmetic product and remaining 42% not prefer the branded cosmetic products.
Q. 4:. Reasons for using the Cosmetics?
(a) Good looking (b) Fashion trends (c) to shoe

oneself modern

(d)Any other reason

Interpretation:

The above graph shows that 40% respondents using the cosmetic for

good looking , 20% use for fashion trends, 20% use to shoe oneself modern and

remaining 20% use for any other reason.


Q. 5 Which brand do you prefer?

(a) Revelon (b) Lakme (c) Ponds (d) Others

Interpretation:

The above graph shows that 10% respondents use Revelon, 40% use

Lakme, 10% use Ponds, and remaining 40% use prefer for others brands.
Q. 6 Reason for purchasing the particular brand

(a) Price (b) Quality (c) Friends (d) Brand ambassador

Interpretation:

The above graph shows that 20% respondents purchase for price, 40%

purchase for quality, 15% purchase for friends and remaining 25% purchase for

brand ambassador.
Q. 7 How frequently you are purchasing the cosmetic products?

(a)Regularly (b) On time to 3 Months

(c) One time in 6 Months (d) More than 6 months

Interpretation:

The above graph shows that 10% respondents are regularly use, 30%

respondents purchase on time to 3 months, 40% respondents purchase one time

in 6 months and remaining 20% purchase more than 6 months.


Q. 8 Do you think that cosmetic products create any negative effect in your

health?

(a)Yes (b) No

Interpretation:

The above graph shows that 45% respondents cosmetic products create

any negative effect in their health and remaining 55% respondents not think as.
Q. 9 Do you think branded cosmetic products are less harmful in comparison

of local products?

(a)Yes (b) No

Interpretation:

The above graph shows that 75% respondents think that and remaining

25% respondents not think that.


Q. 10 If yes, than what effect?

(a)Skin infection (b) Eye side problems (c) Regular headache

(d) any other

Interpretation:

The above graph shows that 35% respondents think that it effect on skin

infection , 20% respondents have effect of eye side problems, 15% effect

regular headache and remaining 30% have any other effect.


Q. 11 How many times you purchase cosmetic after watching the

advertisement?

(a)One times (b) Two times (c) Always

Interpretation:

The above graph shows that 10% respondents purchase one times, 30%

have purchase in two times and remaining 60% purchase for always.
Q.12: Money is the matter while you select the brand:

(a) Yes (b) No

Interpretation:

The above graph shows that 70% respondents think that money is the

matter while they select the brand and remaining 30% not think as.
Q.13. For how long have you been using the Revlon brand?

a) Less than a year 

b) 1 year 

c) 2 year 

d) Less than 5 years

e) More than 5 years

Interpretation:

The above graph shows that 10% respondents using Revlon less than 1

year, 20% using last one year, 25% using last two year, 30% using less than 5

years and 15% using more than 5 years.


Q.14. What do you think, is the main reason for your use of Revlon brand?

a) Price

b) Products

c) Place

d) Promotion

Interpretation:

The above graph shows that 10% respondents says price of Revlon

affordable , 30% says the product, 20% says for place and 25% says the

promotional schemes for main reason.


Q.15. How did you come to know about the Revlon brand?

a) Through advertisement

b) Word of mouth influence

c) Internet

Interpretation:

The above graph shows that 25% respondents says I know about Revlon

through advertisement, 40% respondents know through the word of mouth and

35% respondents know through the Internet


Q.16. For how long have you been using the Lakme brand?

a) Less than a year 

b) 1 year 

c) 2 year 

d) Less than 5 years

e) More than 5 years

Interpretation:

The above graph shows that 15% respondents using Revlon less than 1

year, 18% using last one year, 22% using last two year, 25% using less than 5

years and 20% using more than 5 years.


Q.17. What do you think, is the main reason for your use of Lakme brand?

a) Price

b) Products

c) Place

d) Promotion

Interpretation:

The above graph shows that 15% respondents says price of Revlon

affordable , 45% says the product, 15% says for place and 25% says the

promotional schemes for main reason.


Q.18. How did you come to know about the Lakme brand?

a) Through advertisement

b) Word of mouth influence

c) Internet

Interpretation:

The above graph shows that 20% respondents says I know about Revlon

through advertisement, 55% respondents know through the word of mouth and

25% respondents know through the Internet


FINDINGS
 During the project I found that people believe in branded cosmetic

products .

 During the project I also found that lots of people use different kinds of

cosmetic brands.

 Cosmetics companies providing the various products for every class of

income group.

 Branded cosmetic companies have better market shares then other local.

 Mostly respondents are agree with the money is a matter of selected

brand.

 Mostly respondents says that approximately four or five times

watching the advertising then purchasing the cosmetics


SUGGESTIONS
Suggestions

 Lakme of lately, keeping in view the challenge of the global market,


maximizing team performance, focusing on core competencies, meeting
the demand of demanding customer, felt the need of improving both
supplier and customer relationship.
 The main goal of the company is to satisfy it's customers. It is one of the
leading companies in maintaining customer relationship management
(CRM).
 The tools adopted by Revlon are world class-Switching from brand
management to category management system has led to better
management of brands. Revlon has become synonymous with every day
low pricing (EDLP).this has increased it's market share as well as
profits.
 Distribution is also one of it's greatest strength. It follows the
administered vertical marketing system. It has got very well relationship
with some of it's bulk buyers like Walmart. Advertisement, mainly T.V.
ads has been the company's main promotional strategy. R&D of the
company continues to support the company's business by developing
innovative products and process to cater to consumers needs and
preferences.
 Thus the challenge before Revlon is to face it's arch rival Lakme. It can
do so by launching brands which have more mass appeal.
 In spite of the few shortcomings, Revlon is a household name and most
of the consumers have a high regard for the company's product. The
products are synonymous with quality and effectiveness.
Conclusion

Cosmetic products are widely used by people now a days and hence the

number of players enter into this business has increased considerably.

Companies try to identify the consumer’s attitude towards these cosmetic

products so that they position their products to the particular category of

people rather spending unnecessarily on non-targeted people. This study has

provided a platform for the corporate to think on different dimensions what

consumers prefer, which make them in deciding on Marketing Mix of

different products, like modify the product or change in product design, fixing

of price that better suit the targeted audience, appropriate promotion mix

namely sales promotion, advertising, publicity and personal selling, and

finally change in distribution channel.

Dynamic value growth is driven by booming economy

and changing consumer perception

In 2006, current value growth of cosmetics and toiletries in India was

the highest during the review period. A booming economy, which put

more money in the hands of Indian consumers, meant that consumer

disposable incomes grew, as did the spending on cosmetics and

toiletries. Value growth was also driven by changing consumer

perception, whereby most cosmetics and toiletries were increasingly

considered as essential items for daily use, rather than as luxury

products for indulgence. Mass products, including essential bath and


shower products and oral hygiene, accounted for the bulk of value

sales, whereas premium products were restricted to the upper middle

classes and niche high-income consumers.

Niche products grow in line with expanding consumer

base

Growing from a smaller base, niche products witnessed the most

dynamic value and volume growth in 2006. Products like colour

cosmetics, deodorants and fragrances all witnessed double-digit value

growth in 2006, as new consumers started to use the products, and

existing consumers traded up to more premium products. With

increasingly availability of domestic and international brands, and

greater product availability at affordable prices, consumers also started

to move away from using products from the grey and the unorganised

channel. This further benefited value sales through the organised

channel.

Price increase witnessed across the board

While the economy was booming and consumers were in the mood to

spend, manufacturers saw 2006 as the best time to increase prices of

products. Raw material prices of most essential products, like

vegetable oils, increased and manufacturers passed the price increase

to the consumer. With competition on the increase, manufacturers also

introduced better packaging with more vibrant colours, relaunched


products, and increased spending on advertising and promotion, all of

which added to costs. A significant shift in purchasing behaviour was

also observed, with consumers trading-up to more premium brands,

and new consumers shifting from the unorganised to the organised

channel, both of which enabled an overall price increase.


BIBLIOGRAPHY

1. BOOKS
 Femina
 Meri saheli
 Women era

2.WEB SOURCES
 www.Google.com
 www.loreal.com
 www.ayurinternational.com
 www.lakme.com
 www.revelon.com

3. MEGAZINES
 India today
 Lakme fashion weak
Questionnaire

Name:
……………………………..Address……………………………………
Age………………………Mob…………………………………………

Q. 1: Are you the regular user of cosmetic product?

(A) Yes (B) No

Q. 2: Do you familiar with the brands?


(A) Yes (B) No
Q. 3: Do you prefer the branded cosmetic product?

(A) Yes (B) No

Q. 4:. Reasons for using the Cosmetics?


(a) Good looking (b) Fashion trends (c) to shoe oneself modern
(b) (d)Any other reason
Q. 5 Which brand do you prefer?
(a) Revelon (b) Lakme (c) Ponds (d) Others
Q. 6 Reason for purchasing the particular brand
(a) Price (b) Quality (c) Friends (d) Brand ambassador
Q. 7 How frequently you are purchasing the cosmetic products?
(a)Regularly (b) On time to 3 Months
(c) One time in 6 Months (d) More than 6 months
Q. 8 Do you think that cosmetic products create any negative effect in your
health?
(a)Yes (b) No

Q. 9 Do you think branded cosmetic products are less harmfull in comparison


of local products?
(a)Yes (b) No
Q. 10 If yes, than what effect?
(a)Skin infection (b) Eye side problems (c) Regular headic
(c) anyother
Q. 11 How many times you purchase cosmetic after watching the
advertisement?
(a)One times (b) Two times (c) Always
Q.12: Money is the matter while you select the brand.

(a) Yes (b) No


Q.13. For how long have you been using the Revlon brand?
f) Less than a year 
g) 1 year 
h) 2 year 
i) Less than 5 years
j) More than 5 years
Q.14. What do you think, is the main reason for your use of Revlon brand?
e) Price
f) Products
g) Place
h) Promotion
Q.15. How did you come to know about the Revlon brand?
d) Through advertisement
e) Word of mouth influence
f) Internet
Q.16. For how long have you been using the Lakme brand?
f) Less than a year 
g) 1 year 
h) 2 year 
i) Less than 5 years
j) More than 5 years
Q.17. What do you think, is the main reason for your use of Lakme brand?
e) Price
f) Products
g) Place
h) Promotion
Q.18. How did you come to know about the Lakme brand?
d) Through advertisement
e) Word of mouth influence
f) Internet

You might also like