CERTIFICATE FROM THE GUIDE

This is to certify that this project entitled “MARKETING

STRATEGIES OF LAKME” Submitted in partial fulfillment of
degree of master of business administration to the (your college),
(YOUR COLLEGE) done by SUSHRITA DUBEY. ROLL NO - is
authentic work carried out by him at “MARKETING STRATEGIES
OF LAKME” Under my guidance. The matter embodied in this
project work has not been submitted earlier for award of any degree or
diploma to the best of my knowledge & belief.

Signature of student Signature of guide

SUSHRITA DUBEY
guide
MBA 4 TH
SEM.
Roll No. (your college) ,

1
 ACKNOWLEDGEMENT

Firstly I would like to thank (your college), to give an opportunity to

do such an innovative project in my Fourth Semester.

I would like to extend my sincere gratitude and appreciation to my

project guide (guide) who initiated me into the study of
MARKETING STRATEGIES OF LAKME. It has indeed been a great
experience working under her during the course of project for her/his
invaluable advice and guidance provided throughout this project.

I am highly obliged to acknowledge our H.O.D (guide) for giving me

an opportunity to conduct a detail study and analysis of the topic
relevant to my project.

Last but not the least; I would like to thank all those who directly or
indirectly helped me in giving the final touchup to the project.

2
 CERTIFICATE

This is to certify that project entitled “MARKETING STRATEGIES OF

LAKME” submitted in partial fulfillment of the degree of MBA to (your
college) , (YOUR COLLEGE)., prepared by SUSHRITA DUBEY, ROLL NO
- Is a result of sincere and authentic work carried out by him under the
guidance of (guide) faculty, Submission of this project is mandatory for award
of his degree.

Date: Head of the Department

3
 EXAMINER’S CERTIFICATE

This is to certify that SUSHRITA DUBEY student of MBA 4th semester, (your
college) , (YOUR COLLEGE), Has submitted the project report entitled
“MARKETING STRATEGIES OF LAKME” for the partial
fulfillment of the award of MBA 4th semester and has completed this project in
scheduled time.

We approve the sincere work done on this project and the project report.

INTERNAL EXAMINER EXTERNAL EXAMINER

HEAD OF DEPARTMENT

E-MAIL : Date :

4
 APPROVAL CERTIFICATE

This is to approve that the work presented in the project titled entitled
“MARKETING STRATEGIES OF LAKME” was carried out by
“SUSHRITA DUBEY” and submitted for the partial fulfillment for the award
of the degree of MASTER OF BUSINESS ADMINISTRATION in (your
college) ,is the original work carried out under the guidance and supervision of
(YOUR GUIDE) and that no part of this work has been submitted elsewhere for
the award of any degree or diploma.

5
 INDEX

CHAPTER NO. TITLE PAGE NO.

01. INTRODUCTION ON HINDUSTAN 11-27

UNILEVER LIMITED

02. INTRODUCTIO ON LAKME 28-44

03. OBJECTIVES 45-46

04. MARKETING STRATEGIES OF LAKME 47-54

05. LIMITATION 55-56

06. COMPANY PROFILE 57-59

07. SWOT ANALYSIS 60-65

08. RESEARCH AND METHODOLOGY 66-69

09. SUGGESTIONS 70-71

10. CONCLUSION 72-73

11. ANNEXTURE 74-75

6
 CHAPTER – 01

INTRODUCTION ON
HINDUSTAN UNILEVER
LIMITED

7
INTRODUTION ON HINDUSTAN UNILEVER
LIMITED

Hindustan Unilever limited (HUL) is an Indian consumer goods

based in Mumbai, Maharashtra. It is owned by Anglo-Dutch company
Unilever which ownsa 67% controlling share in HUL as of March
2015 and is the holding company of HUL. HUL`S products includes
foods, beverages, cleaning agents, personal care products, and water
purifiers.

HUL was established in 1933 as Lever Brothers and in 1956 become

known as Hindustan Lever Limited, as a result of a merger between
Lever Brothers, Hindustan Vanaspati Mfg. company Ltd. and United
Traders Ltd. It is headquartered in Mumbai, India and employs over
16000 workers, whilst also indirectly helping to facilitate the
employment of over 65000 people. The company was renamed in
June 2007 as “Hindustan Unilever Limited.”

8
Hindustan Unilever`s distribution covers over 2 million retail outlet
across India directly and its products are available in over 64 million
outlets in the country. As Nielsen market research data, two out of
three Indian are use HUL products

HISTORY OF HINDUSTAN UNILEVER LIMITED

Soon after followed Lifebuoy in 1895 and other famous brands like
Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous
Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan

Vanaspati Manufacturing Company, followed by Lever Brothers India
Limited (1933) and United Traders Limited (1935). These three
companies merged to form HUL in November 1956; HUL offered
10% of its equity to the Indian public, being the first among the
foreign subsidiaries to do so. Unilever now holds 67.2% equity in the
company. The rest of the shareholding is distributed among about
three lakh individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By

1903, the company had launched Red Label tea in the country. In
1912, Brooke Bond & Co. India Limited was formed. Brooke Bond
joined the Unilever fold in 1984 through an international acquisition.
The erstwhile Lipton's links with India were forged in 1898. Unilever

9
acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was
incorporated.

Pond's (India) Limited had been present in India since 1947. It joined
the Unilever fold through an international acquisition of Chesebrough
Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the
stimulus of economic growth. The growth process has been
accompanied by judicious diversification, always in line with Indian
opinions and aspirations.

The liberalisation of the Indian economy, started in 1991, clearly

marked an inflexion in HUL's and the Group's growth curve. Removal
of the regulatory framework allowed the company to explore every
single product and opportunity segment, without any constraints on
production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and

mergers. In one of the most visible and talked about events of India's
corporate history, the erstwhile Tata Oil Mills Company (TOMCO)
merged with HUL, effective from April 1, 1993. In 1996, HUL and
yet another Tata company, Lakme Limited, formed a 50:50 joint
venture, Lakme Unilever Limited, to market Lakme's market-leading
cosmetics and other appropriate products of both the companies.

10
Subsequently in 1998, Lakme Limited sold its brands to HUL and
divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark
Corporation in 1994, Kimberly-Clark Lever Ltd, which markets
Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a
subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory
represents the largest manufacturinginvestment in the
Himalayankingdom. The UNL factory manufactures HUL's products
like Soaps, Detergents and Personal Products both for the domestic
market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and

alliances on the Foods and Beverages front. In 1992, the erstwhile
Brooke Bond acquired Kothari General Foods, with significant
interests in Instant Coffee. In 1993, it acquired the Kissan business
from the UB Group and the Dollops Icecream business from Cadbury
India.

As a measure of backward integration, Tea Estates and Doom Dooma,

two plantation companies of Unilever, were merged with Brooke
Bond. Then in 1994, Brooke Bond India and Lipton India merged to
form Brooke Bond Lipton India Limited (BBLIL), enabling greater
focus and ensuring synergy in the traditional Beverages business.
1994 witnessed BBLIL launching the Wall's range of Frozen Desserts.
By the end of the year, the company entered into a strategic alliance

11
with the KwalityIcecream Group families and in 1995 the Milkfood
100% Icecream marketing and distribution rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996.
The internal restructuring culminated in the merger of Pond's (India)
Limited (PIL) with HUL in 1998. The two companies had significant
overlaps in Personal Products, Speciality Chemicals and Exports
businesses, besides a common distribution system since 1993
forPersonal Products. The two also had a common management pool
and a technology base. The amalgamation was done to ensure for the
Group, benefits from scale economies both in domestic and export
markets and enable it to fund investments required for aggressively
building new categories.

In January 2000, in a historic step, the government decided to award

74 per cent equity in Modern Foods to HUL, thereby beginning the
divestment of government equity in public sector undertakings (PSU)
to private sector partners. HUL's entry into Bread is a strategic
extension of the company's wheat business. In 2002, HUL acquired
the government's remaining stake in Modern Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat

business of the Amalgam Group of Companies, a leader in value
added Marine Products exports.

12
HUL launched a slew of new business initiatives in the early part of
2000‟s. Project Shakti was started in 2001. It is a rural initiative that
targets small villages populated by less than 5000 individuals. It is a
unique win-win initiative that catalyses rural affluence even as it
benefits business. Currently, there are over 45,000 Shakti
entrepreneurs covering over 100,000 villages across 15 states and
reaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty centre
category with the Ayush product range and Ayush Therapy Centres.
Hindustan Unilever Network, Direct to home business was launched
in 2003 and this was followed by the launch of „Pureit‟ water purifier
in 2004.

In 2007, the Company name was formally changed to Hindustan

Unilever Limited after receiving the approval of share holders during
the 74th AGM on 18 May 2007. Brooke Bond and Surf Excel
breached the Rs 1,000 crore sales mark the same year followed by
Wheel which crossed the Rs.2,000 crore sales milestone in 2008.

On 17th October 2008, HUL completed 75 years of corporate

existence in India.

In January 2010, the HUL head office shifted from the landmark
Lever House, at Backbay Reclamation, Mumbai to the new campus in
Andheri (E), Mumbai.

13
On 15th November, 2010, the Unilever Sustainable Living Plan was
officially launched in India at New Delhi.

In March, 2012 HUL‟s state of the art Learning Centre was

inaugurated at the Hindustan Unilever campus at Andheri, Mumbai.

In April, 2012, the Customer Insight & Innovation Centre (CiiC) was
inaugurated at the Hindustan Unilever campus at Andheri, Mumbai

HUL completes 80 years of corporate existence in India on October

17th, 2013.

LEADERSHIP

HUL has produced many business leaders for corporate India,

including Harish Manwani, the non-executive chairman of HUL and
the former chief operating officer of Unilever. He was also a member
of Unilever Leadership Executive team (ULE), which comprises the
company's top management and is responsible for managing
Unilever's profit and loss, and delivering growth across its regions,
categories and functions. Sanjiv Mehta was appointed as the
Managing Director and Chief Executive Officer of HUL with effect
from 10 October 2013. He has also been appointed as Executive vice-
president, South Asia, Unilever and is also the executive head of the
South Asia cluster for Unilever.

14
Hindustan Unilever Limited earned the highest recognition of
„Leadership in HR Excellence‟ across industries at the 5th
Confederation of Indian Industry (CII) National HR Excellence
Awards 2014.

With a ranking of three in the 2014 Global Aon Hewitt Top

Companies for Leaders survey, HUL was the highest ranked Indian
company to feature on the list.

HUL was ranked 4th in the Hewitt Global Leadership Survey 2007
with only GE, P&G and Nokia ranking ahead of HUL in the ability to
produce leaders.A study conducted by Aon Hewitt, The RBL Group
and Fortune in 2011, ranked the company number six in the list of
'Top Companies for Leaders 2011 Study Results'. The company was
awarded the CII- Prize for Leadership in HR Excellence at the 2nd CII
National HR Conclave 2011 held on October 2011

© Unilever 2016

AWARDS

The Institute of Competitiveness, India, has recognized Hindustan

Unilever Limited‟s Project Shakti for „Creating Shared Value‟ and
bestowed upon the company the Porter Prize for 2014.

HUL was the 1 highest ranked Indian company on the Forbes list of
„Most Innovative Companies‟ across the globe for 2014

15
Was ranked number three on Fortune India‟s list of India‟s most
admired companies. In the list compiled with the help of global
management consultancy Hay Group.HUL was recognized as top
FMCG Company in India by Dun & Bradstreet Corporate Awards
2014.

HUL is Client of the Year at Effies 2013 – 2014.

Hindustan Unilever Limited was recognised as the 'Conscious

Capitalist of the Year' at the 2013 Forbes India Leadership Awards.

HUL won 12 awards overall with 4 Golds, 4 Silvers and 4 Bronzes at

the 2013 Emvies Awards.

HUL ranks number two on the on Fortune India's 2013 '50 Most
Admired Companies list'.

Hindustan Unilever Limited has emerged as the No. 4 'Most

Respected Company in India' in a survey conducted by Business
World in 2013.

As per the latest Nielsen Campus Track-business school survey

released in March 2015, Hindustan Unilever has emerged as the No.1
employer of choice for B-school students who will graduate in 2013,
across functions. HUL also retained the 'Dream Employer' status for
the 6th year running and continues to be the top company considered
for application by B-School student in India.

16
In 2012, HUL was recognised as one of the world's most innovative
companies by Forbes. With a ranking of number 6, it was the highest
ranked FMCG Company.

Hindustan Unilever Limited (HUL) won the first prize at FICCI Water
Awards 2012 under the category of 'community initiatives by industry'
for Gundar Basin Project, a water conservation initiative.

Hindustan Unilever Limited won 13 awards at the Emvies 2012 Media

Awards organized by the Advertising Club Bombay in September
2012.

The company received four awards at the Spikes Asia Awards 2012,
held in September. The awards included one Grand Prix one Gold
Award and two Silver Awards.

HUL's Chhindwara Unit won the National Safety Award for

outstanding performance in Industrial Safety. These awards were
instituted by the Union Ministry of Labour and Employment in 1965.

HUL was one of the eight Indian companies to be featured on the

Forbes list of World's Most Reputed companies in 2007.

In July 2012 Hindustan Unilever Limited won the Golden Peacock

Occupational Health and Safety Award for 2012 in the FMCG
category for its safety and health initiatives and continuous
improvement on key metrics.

Hindustan Unilever Limited is rated as best 3Ci Company which is

registered with National Industrial Classification Code 15140.

17
Pond's Talcum Powder's packaging innovation has secured a Silver
Award at the prestigious 24th DuPont Global Packaging Award, in
May 2012.The brand was recognized for cost and waste reduction.

In May 2012, HUL & Star Bazaar received the silver award for
'Creating Consumer Value through Joint Promotional and Event
Forecasting' at the 13th ECR Efficient Consumer Response Asia
Pacific Conference.

In 2011, HUL was named the most innovative company in India by

Forbes and ranked 6th in the top 10 list of most innovative companies
in the world.

Hindustan Unilever Ltd received the National Award for Excellence

in Corporate Governance 2011 of the Institute of Company Secretaries
of India (ICSI) for excellence in corporate governance

In 2012, Hindustan Unilever emerged as the No. 1 employer of choice

for B-School students who will graduate in 2012. In addition, HUL
also retained the 'Dream Employer' status for the 3rd year running .

Hindustan Unilever ranked No. 2 in Fortune India's Most Admired

Companies list, which was released by Fortune India in partnership
with the Hay Group. The company received the highest scores for
endurance and financial soundness

HUL was ranked 47th in The Brand Trust Report 2014 published by
Trust Research Advisory. 36 HUL brands also featured in the list

18
including Lux, Dove, Lipton, Vim, Kissan, Bru, Rexona, Close
Up,Clinic Plus, Pond's, Knorr, andPepsodent among others.

HUL emerged as the top 'Dream Employer' as well as the top

company considered for application in the annual B-School Survey
conducted by Nielsen in November 2010. This was the second
successive year that HUL has been rated as the top 'Dream Employer'
in India. HUL has also emerged as the top employer of choice among
the top six Indian Institutes of Management (IIMA, B, C, L, K and I).

HUL won three awards at the 'CNBC Awaaz Storyboard Consumer

Awards' in 2011 – Most Recommended FMCG Company of the Year;
Most Consumer Conscious Company of the Year and Digital
Marketer of the Year.

The company was felicitated in April 2010 for receiving the highest
number of patents in the year 2009 at Annual Intellectual Property
Awards 2010.

In 2007, Hindustan Unilever was rated as the most respected company

in India for the past 25 years by Businessworld, one of India's leading
business magazines. The rating was based on a compilation of the
magazine's annual survey of India's most reputed companies over the
past 25 years.

HUL is one of the country's largest exporters; it has been recognised

as a Golden Super Star Trading House by the Government of India.

19
HEADQUARTERS
Hindustan Unilever's corporate headquarters are located
at Andheri (E), Mumbai. The campus is spread over 12.5 acres of land
and houses over 1,600 employees. Some of the facilities available for
the employees include a convenience store, a food court, an
occupational health centre, a gym, a sports & recreation centre and a
day care centre.

The campus received a certification from LEED (Leadership in

Energy and Environmental Design)Gold in 'New Construction'
category, by Indian Green Building Council (IGBC), Hyderabad,
under license from the United States Green Building
Council (USGBC)

The company's previous headquarters was located at Backbay

Reclamation, Mumbai at the Lever House, where it was housed for
over 46 years.

BRANDS

HUL is the market leader in Indian consumer products with presence

in over 20 consumer categories such as soaps, teas, detergents, and
shampoo amongst others with over 700 million Indian consumers
using its products Sixteen of HUL`s brands featured in the ACNielsen

20
Brand Equity list of 100 Most Trusted Brand Annual Survey (2014),
carried out by Brand Equity, a supplement of The Economics Times.

The “most trusted brands” from HUL in the top 100 list (their ranks in
brackets) are: LUX(6), Surf Excel(7), Clinic Plus(8), Rin(13),
Lifebuoy(15), Close up(21), Pond`s(22), Pepsodent(24), Fair
&Lovely(29), Dove(30), Sunsilk(32), Vim (48), Wheel(67),
Vaseline(70), Pears(78), Lakme(91).

The latest launches for HUL includes: Knorr Chinese Noodles,

Schezwan and Hot & Spicy, Lakme Absolute Sculpt Range, Lakme
Lip Love, Magnum Choco Cappuccino and Axe Gold Temptation.

Food Brands:

 Annapurna salt and atta

 Bru Coffee
 Brooke Bond (3Roses, Taj Mahal, Taaza, Red Label) tea
 Kissan squashes, Ketchups, juices, and jams
 Lipton tea
 Knorr soups & meal makers and soupy noodles
 Kwality wall`s frozen desert
 Modern Bread, ready to eat chapattis and other bakery items (now
sold to Everstone Capital)

21
Home Care Brands

 Active Wheel detergent

 Cif Cream Cleaner
 Comfort fabric softners
 Domex disinfectant toilet cleaner
 Rin detergents and bleach
 Sun light detergent and color care
 Surf Excel detergent and gentle wash
 Vim dishwash
 Magic-Water Saver

22
Personal Care Brands:
 Aviance Beauty Solutions
 Axe deodorant and after shaving lotion and soap
 LEVER Ayush Therapy ayurvedic health care and personal care
product
 Breeze Beauty soap
 Clear anti-dandruff hair products
 Clinic Plus shampoo and oil
 Close up toothpaste
 Dove skin cleansing and hair care range :bar, lotion, creams, &
anti-perspirant deodorants
 Denim shaving products
 Fair & Lovely skin-lightening products

23
 Hamam
 LAKME BEAUTY PRODUCTS AND SALONS
 Lifebuoy soaps and hand wash range
 Liril 2000 soap
 Lux soap, body wash, & deodorant
 Pears soap
 Pepsodent toothpaste
 Pond`s talcs and creams
 Rexona soap
 Sunsikl shampoo
 Sure anti- perspirant
 Vaseline petroleum jelly, skin care lotion
 TRESemm`e
 TIGI

24
 CHAPTER –02

INTRODUCTION ON LAKME

25
Introduction of Lakme

Lakmé is an Indian cosmetics brand which is owned by Hindustan

Unilever and run by CEO PuskharajShenai. Having Shraddha
Kapoor as the ambassador, it ranked at number 1 among the cosmetics
brands in India. Lakme started as a 100% subsidiary of Tata Oil Mills
(Tomco). It was named after the Frenchopera 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 Tatajoined 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$).

26
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

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 )

Sponsor for Lakme Fashion Week (LFW) a bi-annual fashion event

which takes place in Mumbai.

Lakme today has grown to have a wide variety of products and

services that cover all facts of beauty care, and aem the consumer with
product to pamper her from head to toe. These include products from
the lips, nails, eyes, face and skin and services like the Lakme beauty
salons.

27
HISTORY OF LAKME

It was the early 1950‟s. India had just won her freedom and the
economy was shaky. Upper middle class women were spending
valuable foreign exchange on western cosmetics while the more
middle class women had no access to quality makeup because of non-
availability in the Indian market. Prime Minister Jawaharlal Nehru
approached JRD Tata to come up with a solution.

28
Tata, the always hungry entrepreneur, took on the challenge
ecstatically. The biggest difficulty was coming up with a brand
identity that appealed to both classes of women. He settled on Lakmé,
taking the name from the French opera of the same name. Funnily the
name is a western take on the Indian goddess of wealth Lakshmi. But,
as this article puts it, Lakshmi lipstick or Lakshmi kajal would never
have worked with the Indian ladies who were used to buying foreign
cosmetics.
This being the first time an Indian cosmetic company was being
founded, extensive market research went into determining the needs of
the Indian skin and color. Experts were hired from every field. In 1952
Lakmé started as a 100 per cent subsidiary of Tata Oil Mills. Simone
Tata, the French wife of Naval H. Tata, joined as managing director in
1961 and rose to become its chairman in 1982. Being a western born
woman who had made India her home, she understood the core
formula of the brand and was instrumental in shaping Lakmé into the
household name that it became. She was appointed to the board of
Tata Industries in 1989.

Observing the rapid growth in the retail sector, Tata sold Lakmé to
Hindustan Unilever in 1996 for 200 crore. They imagined that a
dedicated FMGC company would be able to do better justice to the
brand.

29
PRODUCT PROFILE

Product for eyes

Product for lips

Product for face

31
Product for nails

Product for hairs

Product for body care

32
Product for sun protection

33
Major Product Ranges

Lakme 9 to 5 Range

Lakme Absolute
Range

Lakme Classics Range

34
LALME SALONS

Lakme Lever has a presence of more than 270+ Lakme Salons at

premium locations in over 70 cities. Lakme Salons are dedicated
towards the evolvement of the modern Indian woman and her
exploration of beauty. Lakme Salon brings a plethora of beauty and
grooming services that proudly match up to international standards. Its
repertoire of professional beauty experts and hair stylists are much
sought after by the contemporary Indian women who are looking to
explore the fine art of beauty to the fullest and only by the best.

Known for creativity with stunning hair and make-up techniques and
excellent skin care services, Lakme Salons bring the back stage
expertise and experience of Lakme Fashion Week to the modern
Indian woman. Professionally trained hair and make-up experts with

35
countless shows under their belt and outstanding skin services come
together at Lakme and offer an unforgettable experience one that`s
360 degrees by nature.

Experts behind Lakme Salons

SHAILESH MOOLYA

Shailesh helms Lakme Salon`s

hairstyling operations, ensuring the
highest standards are maintained at all
salons.

DISHA MEHER

When it comes to skin and nails,

Disha`s is the last word. The brains
behind the services, she ensures that
Lakme Salon makes way for new
trends.

36
SUSHMA KHAN

With a world of experience under her belt,

Sushma is a make up maestro who always
knows what looks best.

37
LAKME FASHION WEEK

Lakme Fashion Week is a bi-annual fashion event that takes place in

Mumbai. Its Summer-Resort show takes place in April while
the Winter-Festiveshow takes place in August.[1]

ACTIVITES
It is considered a premier
fashion event in India.[2] It
is run by IMG
Reliance and the title
sponsor is Lakme.[3]

The event first took place

in 1999 and international
models such as Naomi Campbell as well as Indian film stars such
as Deepika Padukone, Malaika Arora Khan, and Arjun Rampal have
participated in it. International labels that have taken part in LFW
includeLouis Vuitton, Dolce & Gabbana, andRoberto Cavalli. Among
Indian designers, Manish Malhotra, Rohit Bal,TarunTahiliani,
and Ritu Beri have taken part in the event.[4][5] The event has been
responsible for launching the careers of designers such as Sabyasachi
Mukherjee.[6]

38
BRAND AMBASSDOR OF LAKME

Kareena Kapoor Khan

Kareena Kapoor has been chosen as the face of Lakme Absolute. She
fits the brand as she embodies the essence of beauty, which the brand
represents. As the face of Lakme Absolute , Kapoor will be part of the
brand`s campaign and unveil the
Absolute looks at the Lakme
Grand Finale by Manish Malhotra
at Lakme Fashion Week Winter
/Festive 2011,which will be held
from 16-21 August.

Lakme Absolute is the brand`s

long-wear make-up line with
products that last up to 16 hours
designed by Lakme make-up
experts.

Kapoor said, “I am very proud to

be associated with a brand that introduced the concept of make-up to
the Indian woman and I`m excited to under take this journey with
them. Lakme Absolute keeps my skin radiant and makes me look

39
beautiful the whole day without any touch-up. It`s long wear and high-
performance products are just what I need.

Lakme general manager FaridaKaliyadan says, “We are delighted to

have Kareena as a face of Lakme absolute and launch its excited range
of products. Lakme Absolute has been specially designed keeping in
mind the Indian skin tone, texture and weather condition.
Kareena`sconfidet persona and beauty makes her the perfect choice
for Lakme Absolute

40
Shraddha Kapoor

After Kareena Kapoor Khan, it‟s now Shraddha Kapoor has been
roped in as the brand ambassador of the leading cosmetic brand
Lakme.Talking about her association with the brand, Kapoor said.
“It‟s a veryspecial association.
“I was the face of Lakme a few years ago and I am back this time as
the brand ambassador of Lakme. To be the face of the country‟s
leading cosmetic brand is definitely a privilege,” said Shraddha.

41
CHAPTER – 03

OBJECTIVES

42
OBJECTIVES

 The main objective behind the study of this project is to evaluate

the distribution channel for Lakme Company.

 To study the marketing strategies of Lakme cosmetics.

 To study the 4ps. of marketing.

 To study Lakme market shares in cosmetics industry in

comparison to other brands.

 To analyze the reason for Lakme`s initial strategy in India.

 To know and analyze the level of satisfaction of customers with

regard to Lakme asone of the major player in cosmetic industry.

 To understand the relation ship between customer (who demand

the product) and the suppliers or manufacturers (who produce
the goods).

 For understanding the company`s structure and functioning

among various departments like finance accounts, HR, etc.
better.

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 CHAPTER – 04

MARKETING STRATEGIES OF
LAKME

44
MARKETING STRATEGIES OF LAKME

What is the meaning of marketing?

Marketing is the communication between a company and the

consumer audience that aims to increase the value of the company or
its merchandise, or to raise the profile of the company and its products
in the public mind. The purpose of marketing is to induce behavioral
change in the receptive audience. The American Marketing
Association has defined marketing as "the activity, set of institutions,
and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners,
and society at large." [2]

.Marketing are activities of a company associated with buying and

selling a product or service. It includes advertising, selling and
delivering products to people. People who work in marketing
departments of companies try to get the attention of target audiences
by using slogans, packaging design, celebrity endorsements media
exposure and general.

45
Definitions:

1 According to the American Marketing

Association (AMA) Board of Directors, Marketing is the
activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at
large.

2 Dr. Philip Kotler- defines marketing as “the science and art

of exploring, creating, and delivering value to satisfy the
needs of a target market at a profit. Marketing identifies
unfulfilled needs and desires. It defines, measures and
quantifies the size of the identified market and the profit
potential. It pinpoints which segments the company is
capable of serving best and it designs and promotes the
appropriate products and services.”

What is the meaning of marketing strategy?

An organization's strategy that combines all of its marketing goals into

one comprehensive plan. A good marketing strategy should be drawn
from market research and focus on the right product mix in order to
achieve the maximum profit potential and sustain the business. The
marketing strategy is the foundation of a marketing plan.
46
Marketing strategy has the fundamental goal of increasing sales and
achieving a sustainable competitive advantage. Marketing strategy
includes all basic, short-term, and long-term activities in the field
of marketing that deal with the analysis of the strategic initial situation
of a company and the formulation, evaluation and selection of market-
oriented strategies and therefore contribute to the goals of the
company and its marketing objectives.

Definition:
1. Chartered Institute of Marketing - “Marketing is the
management process responsible for identifying, anticipating
and satisfying customer requirements profitably”.

Marketing Mix

The marketing mix is a crucial tool to help understand what the

product or service can offer and how to plan for a successful product
offering. Themarketing mix is most commonly executed through the 4
P's of marketing: Price, Product, Promotion, and Place.

While marketing the products, firm need to create a successful

marketing mix the right product sold at the right price in the right
place and using the most suitable promotion. To create the right
marketing mix, businesses have to meet following conditions:

47
Product:

The product has to have the right features with broader choice and
should satisfy consumer needs such as; it must look well and work
well.

Price:

The price must be right. The price of the item is clearly an important
cause of the value of sales made. Price decides success of product in
market.

Place:

The goods must be in the right place at the right time. Making sure
that the goods arrive when and where, as they are wanted an important
operations.

Promotion:

Promotion is the business of communicating with customers. It will

provide information that will help the company in making a decision
to buy a product and services. However, successful promotion
increases sales, so that advertising and other costs are spread over a
larger output.

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MARKET TRENDS OF LAKME

If you noticed, there are more advertisements these days of the make
up brandswhen compared to few years back. That is because of the
upgrades that people want to make in their life. They are getting paid
better, they go out more and most importantly, they want to look
better. And all the mentionedcompanies want to make use that of very
desire of the consumer. So, the current trend in marketing is to
advertise your product better, rope in some fab celeb, and have a
irresistible description about your product. That is what gets the girls
mostly. I know, half of it is crap but somewhere in back of their mind
they think maybe yes, this product will deliver what it promises. Also,
there is rise in online beauty bloggers from India on the Internet.
These companies tie up with them and ask for a exclusive review of
their product. Sometimes, these bloggers even hold contests and give
certain products as prizes. Plus, also a rise in services like Fab bag
which allow you to try the products personally.

When it comes to distribution, again, supermarkets never use to have a

grand section for cosmetics. Now they do. Because that is where all
the middle class people go frequently. But sadly, the companies fail to
distribute adequate stock there and one can easily utilize this to their
advantage.Online shopping is there too, there are tons of ladies who
order stuff from there. They leave reviews, which again contributes to
product value and convinces an other person to buy it.

49
Color cosmetics brand Lakme is up scaling its make-up range in India
to appeal to the premium to market and become more competitive in a
move that could be copied to Hindustan unilever`s other segment
should it be successful.

India is very competitive arena in the color cosmetics field with

foreign brands such as L`oreal Paris and Estee Lauder dominating the
market, however, Lakme wants a piece of the action.

The company has introduced its Lakme Absolute range of products a

premium prices targeting urban women who prefer premium
cosmetics.

If this premium products are a success, Unilever may put the same
strategy in place in other areas of its portfolio revitalizing the slow
volume growth of its other brands such as fair & lovely and clinic
plus.

Lakme Absolute Range

 For the elite, page-3 class

 Test market through- Lakme India Fashion Week

 Test market through –Lakme Absolute Salon

 Encourage models to post selfies on social networking websites

 Analyze reviews.

50
Lakme Classic Range
 Make-up for daily wear, Lakme basics.

 Market tester at stores.

 Promotion through online –Lakme Reinvent Studio.

 Video tutorials

51
CHAPTER – 05
LIMITATIONS

52
LIMITATIONS

Though, I`m satisfied with what with I have done for the final project,
yet I can say that I had performed much better than this if I would
have more time to finish this project. Apart from this, while
conducting interview I faced so many problems and sometimes I got
frustrated when the approached customer took the interview lightly. It
was really very tough to make them ready for answering questions.
Besides these, everything I found well in doing this task and it can be
emphatically said that there is limitation of everything and so nothing
I found new in my case. Whatever experienced I have gained, I will
make use of these in my future professional life.

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 CHAPTER - 06

COMPANY PROFILE

54
ABOUT LAKME

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.

Contemporary Indian beauty experts Lakme continuously innovates to

offer a wide range of high performance and world class color
cosmetics, skincare products, and beauty salons. Combining
international cosmetics technology with an in depth understanding of
the Indian woman`s needs. Lakme also offers its consumers a
comprehensive beauty experience though its products and services at
the Lakme Salons and Studios.

Key Facts

 Lakme was the country`s first cosmetics brand to introduce

make up to Indian woman its takes pride in beings the experts on
Indian beauty for over 50 years.

 It is a complete beauty brand spanning color cosmetics & skin

care and extending to beauty services though the network of
Lakme Beauty Salons.

55
  Its bend with beauty and fashion is manifested though the
Lakme Fashion Week, which is now the largest fashion events of
its kind in the country.

Profile of Lakme

Industry personal care

Founded 1952

Founder J. R. D. Tata

Key PeopleSanjiv Mehta(CEO Unilever)

Pushkarajshenai (CEO Lakme)

Purnima Lamba (Head Innovations)

Shraddha Kapoor (ambassador)

Headquarters India

Products Cosmetics, beauty products, and Salon Services

Websites lakmeindia.com

56
 CHAPTER - 07

SWOT ANALYSIS

57
STRATEGIC MARKETING ANALYSIS

The strategic marketing was analyzed by applying three variables i.e.

SWOT analysis, porters five forces and 4P`s (marketing mix)

SIGNIFICANCE OF SWOT ANALYSIS

SWOT analysis stands for strengths, weakness, opportunities and

threats which are method of analysis for auditing an organization and
its environment. SWOT analysis applies to all corporate level, all
business which simplify in marketing plans. The SWOT analysis
allows analysis a company, their goals, business plans and decisions.
It also implies reviewing the positives and negatives of the industry
and the company itself.

Strengths and weakness are internal factors that crate value or destroy
value. They include assets and human skills compares to its
competitors. They can be measured using internal assessments or
external benchmarks. Opportunities and threats are external factors
that create value or destroy value. A company cannot control them. It
includes demographic, economic, political, technical, social, legal
factors. Any organization must try to create a fit with its external
environment.

58
SWOT analysis of Lakme
Lakme is one of the leading cosmetics brands across the world from
the house of Hindustan unilever‟s. Interestingly was name after the
French opera, and Lakme is another form of the goddess Lakshmi
most commonly known‟s for blessing of wealth. Lakme is heritage
brand at least in India, and it was started in 1952.

Strengths in the SWOT analysis of Lakme:

1. 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 promotion has helped the company in making top of mind
awareness.

2. Fantastic products line: HLL is the parents 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 market. Also in addition traditional
channel it also uses.

3. Extension distribution of the parent company: HLL is the parent

company who purchased it from TATAgroup. Since HLL is already
an established FMCG so it uses extension distribution channel to
make the Lakme products available in the market. Also in addition
traditional channel it also uses. Unconventional distribution system to
make the products available at pharmacist beauty/parlors and salons.
59
4. Celebrity endorsement: Lakme positioned perfectly in the mind of
prospective by targeting apt celebrities to represent their brand.

5. Strong parent company: HLL the parent company is the well

known company in the FMCG industry has financial position which is
good for it groups brands.

Weakness in the SWOT analysis Lakme:

1. 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
cosmetics segment (lip care and nail enamel) with a wide
range of product and prices but when it comes to premium
market which is growing at the rate of 30% Revlonis the
market leader.
2. Problem of differentiation: its board 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.
3. Quality of Lakme salons: Falling quality of Lakme salons
will results in the negative word of mouth which can affect
sales and growth of the company in future.

60
Opportunities in the SWOT analysis of Lakme:

1. Changing lifestyles: Migrating population and with the situation

development economies, changing taste and preferences.
Education and changing lifestyles of the developing economies
had resulted into growth in the grooming segment. People now
want to look sharp, smart and confident.
2. Growing premium segment: There is the growth in thedemand
ofpremium 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.
3. Co-creating the growth strategies: Creating more collaborative
and participative community focused activities will help the
company in building brand image and co-creating growth
opportunities.

Threats in the SWOT analysis of Lakme:

1. Intense rivalry: Intensive competitions from the local, nation

and international players on price and availability factors is the
major threats for the players in the segment which is affecting
the industry as a whole.

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2. Counterfeit products: Fake products are directly affecting the
brand image of the company in the rural market and small
towns.
3. 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.
4. Increasing allergies cases: Due to change in the lifestyles skin
is becoming more sensitive due to which companies in the
personal care industry face risk of losing sales on allergic
grounds.

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 CHAPTER- 08

RESEARCH METHODOLOGY

63
RESEARCH

Research comprises “creative work undertaken on a systematic basis

in order to increase the stock of knowledge, including knowledge of
humans, culture and society, and the use of this stock of knowledge to
device new applications.” It is used to establish or confirm facts,
reaffirm the results of previous work, solve new or existing problems,
support theorems, or develop new theories.

Definition:

Godwin Colibao– “In the broadest sense of the word, the definition of
research includes any gathering of data, information and facts for the
advancement of knowledge.”

METHODOLOGY

Methodology is the systematic, theoretical analysis of the methods

applied to a field of study. It comprises the theoretical analysis of the
body of methods and principles associated with branch of knowledge.
Typically, it encompasses concept such as paradigm, theoretical
model, phases and quantitative or qualitative techniques. A
methodology does not setout to provide solutions-it is, therefore, not
the same as a method. Instead, a methodology offers the theoretical
underpinning for understanding which method, set of methods, or best
practices can be applied to specific case, for example, to calculate a
specific result.
64
RESEARCH METHODOLOGY

The process used to collect information and data for the purpose of
making business decisions. The methodology may include publication
research, interviews, surveys, and other research techniques, and could
and include both present and historical information. Research
methodology refers to all the instruments like questionnaire and
behavior attitude measurement that are used in research. The science
is termed as research methodology. It refers to the process of
conducting the research.

TOOLS OF DATA COLLECTION:

1. Primary Data – The data which are obtained for the first time
by the investigator himself for his purpose are called primary
data. According to Horace Secrist, “By primary data are mean
those data which are original, that is, those in which little or no
grouping has been made, the instance being recorded or
itemized. They are essentially raw materials” For example, if a
person collects data a fresh first time about debt, then this data is
primary for him.

2. Secondary Data –The data whichhave already been collected by

some other investigator / person / institutions for their purpose
and the present investigator user then are called secondary data.

65
 In this case, the investigator dose not collect the data but used
the data collected by other purposes. According to M.M.Blair,
“Secondary data are those already existences and which have
been collected for some other purpose the answering of the
question at hand.” For examples: if a person uses the data
regarding foreign import - export published by government for
studying payment- balance, then these data are secondary for
him.

Collection of Data

The source of the data of the project on Marketing Strategies

of Lakme is secondary data.

Sources are –

1. Internet

2. Newspaper

3. Magazines

4. Articles

66
CHAPTER – 09

SUGGESTIONS

67
Suggestion

 The supply must be properly fulfilled so the need of the

customer satisfies.

 Target selling for the dealer / agent can increase the sales of
company.

 The company must concern to the satisfaction of customer

demand.

 The company and dealer should develop its marketing

information system up to date information of competitor`s
policy, price, price and product, target market, so the company
can know its strengths and weaknesses.

 Brand preferences studies reveal that comparatively there is

more preference for Lakme among consumers so in order to
attract and maintain his consumers. Advertising programs should
be intensified.

 Perception of the consumer is changing rapidly. They seek new

benefits and values in their preferred brand. Moreover, consumer
likes to have brand at low rate. So Lakme should insert it so as to
meet the changing preference of the consumer.

68
CHAPTER-10

CONCLUSION

69
CONCLUSION

The competition is fierce in the multi- channels retailing

environment. A business that hopes to grow and prosper requires
a comprehensive logistics and transportation strategy, executed
flawlessly. The dilemma for management lies in trying to meet
consumers growing expectation while keeping costs in check. In
response to these issue of multichannel growth, more and more
carries are branching out to offer logistics services.

Those businesses that work to build successful relationships with

logistics and transportation vendors will find that their efforts
lead to improved customers services and profitability. It`s not an
easy task, but it is certainly one that`s achievable with the tools
and technology available today.

Lakme has been found to be the most preferred brand it meet the
promise made to the customers. A consumer relies on the Lakme
products because it provides good quality, good results, good
services, etc. so, that customer may prefer Lakme products.

While conducting survey I found that the customer may like the
showrooms of the Lakme products. They still likes the easily
availability of various products. So the Lakme products
customers are fully satisfied to use the products.

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CHAPTER – 11

ANNEXTURE

71
BIBLIOGRAPHY

1. Research methodology by N. Thanulingom.

2. Research methodology by C. R. Kothari.

3. Methodology of research in social scienceby

Dr.O.R.Krishna Swami.

WEBLIOGRAPHY

1. www.google.com

2. www.wikipedia.org

3. www.lakme.com

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