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A Project on
A STUDY ON CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME

PRODUCTS IN PANVEL.
Submitted to
KLE College of Science and Commerce, Kalamboli
In Partial Fulfillment of the Degree Bachelor of Management Studies
Under the University Of Mumbai
Submitted By
Khan Shifa Abdul Muttalib
TY.BMS (Marketing)
Roll No.09
Guide By
Prof. DR. Geeta Kohade
(Department of Mangement)
Bachelor of Management Studies
Semester VI

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DECLARATION BY GUIDANCE
This is to certify that Ms. Khan Shifa Abdul Muttalib has worked and duly completed her
Project Work for the degree of Bachelor of Management Studies under the faculty of commerce in
the subject of the Marketing and her project is entitled, “A STUDY ON CUSTOMER BUYING
BEHAVIOUR TOWARDS LAKME PRODUCTS IN PANVEL.” under my supervision.
I further certify that the entire work has been done by the learner under my guidance and that
no part of this has been submitted previously for any Degree or Diploma of any University.
It is her own work and facts reported by her personal findings and investigations.
(Signature of the Faculty Guide) (Name and designation the Guide)
Prof. Dr. Geeta Kohade
Assistant Professor

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(Management of Department)
DECLARATION BY LEARNER
The undersigned Miss Khan Shifa Abdul Muttalib here by, declare that the work embodied
in this project work titled “A STUDY ON CUSTOMER BUYING BEHAVIOUR
TOWARDS LAKME PRODUCTS IN PANVEL.” forms my own contribution to the
research work carried out under the guidance of “Prof. Dr. Geeta Kohade” is a result of my
own research work has not been previously submitted to any other Degree/ Diploma to this or
any other university.
Where reference has been made to previous work of other, it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance rules and ethical conduct.
Place:
Date:

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Student’s Signature
Khan Shifa Abdul Muttalib
CERTIFICATE
This is to certify that Miss. Khan Shifa Abdul Muttalib
Class: TYBMS. (Marketing) Roll No: 09. has satisfactory carried out the project work entitled as
“A STUDY ON CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME PRODUCTS IN
PANVEL.” in the academic year 2019- 2020 as a part T. Y. B. M. S. examination.
Prof. Dr.Geeta Kohade

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ACKNOWLEDGEMENT
It gives me great gratification to submit this project to the University of Mumbai as a part of
curriculum of my BMS course. I take this opportunity with great pleasure to present before you this
project on “Lakme” which results changes in consumer behavior.”
I would like to acknowledgment the following as being channels and fresh dimension in the
completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this project.
I would like to thank my Principle, Prof. (Dr) Ghanshyam D. Giri for providing the necessary
facilities required for completion of this project.
I take this opportunity like to express my sincere gratitude towards my project guide Prof. Dr.
Geeta Kohade whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and E-
Library related to my project.

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Lastly, I would like to thank each and every person who directly or indirectly helped me in
completion of the project especially my Parents and Peers who supported me throughout my
project.
TITLE
TABLE OF TITLE PAGE NO.

CHAPTER 1. INTRODUCTION
1.1 MEANING
1.2 HISTORY 9-26
1.3 INTRODUCTION OF LAKME
PRODUCTS
1.4 KEYS FACTS
1.5 TOP LAKME COMPETITORS
1.6 PRODUCT LINE OF THE COMPANY
CHAPTER 2. RESEARCH
METHODOLOGY
1.1 OBJECTIVES 27-30
1.2 HYPOTHESIS
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1.3 SIGNIFICANCE
1.4 LIMITATIONS
CHAPTER 3. REVIEW OF LITERATURE 31-34

CHAPTER 4. DATA ANALYSIS AND
INTERPRETATIONS 35-44
CHAPTER 5. CONCLUSIONS
5.1 FINDINGS
5.2 SUGGESTION AND 45-48
RECOMMENDATIONS
5.3 LIMITATIONS
5.4 CONCLUSION
ANNEXURE 49
INDEX
Table of Contents Page No.

Introduction 9-26
Research Methodology 27-30
Review of Literature 31-34
Data Analysis and Data Interpretations 35-44

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Findings 45
Suggestion and Recommendations 46
Limitations 47
Conclusion 48
A STUDY ON CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME

PRODUCTS IN PANVEL.
CHAPTER 1 :- INTRODUCTION:
Cosmetics and toiletries are not just the domain of women any longer and Indian men too are
increasingly taking to the use of more and more body sprays, perfumes and other cosmetics and
toiletries. With rising demand from men, the Indian market is getting enlarged and many players are

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coming out with cosmetic products especially skin care products for men. Globalization will
certainly increase cosmetic products penetration and all professionals shall equip themselves to
exploit opportunities offered by this sector.
The consumers are the largest economic group in any country and the present day business activities
are because of consumers only. Thus, consumers are the pillars of the economy. The consumers are
not only the heart of marketing system, but also the controller of marketing functions. But it the
modern marketing system consumers sovereignty has become a myth on account of the variety of
problems in the process of merchandising. The study of consumer behavior enables marketers to
understand and predict consumer behavior in the market place; It also promote understanding of the
role that consumption plays in the lives of individual.
This gives me an opportunity to work on with this endeavor focusing on theConsumer behavior and
perception of women towards cosmetics with special reference to the Lakme’s cosmetics products’.
The primary objective of the study is to understand the consumer behavior and perception of
women by studying the awareness of the financial products within the consumers and the number of
consumers who take the products from Lakme.
The introductory chapter gives and insight to the cosmetic industry. It briefly explains about the
history of cosmetic sector. It also contain the organizational profile of Lakme, stating about its mile
stones, vision, products, protection solutions, advertising effectiveness and finally about its
marketing strategies and challenges.
The second chapter gives a glimpses idea about the area of dissertation i.e. theoretical background
of the study. This part clearly explains the theoretical part of consumer behavior in general. It also
includes statement of the problem, need and impotents of the present study and focal objectives of
the dissertation undertaken. The third chapter explains about literature review. It briefly describes
what all are the information source for the present study and what benefits has derived from the
reference of those literatures.
1.1 MEANING OF CONSUMER BUYING BEHAVIOUR:
Buying behaviour is the decision processes and acts of people/prospective customers involved in
buying and using products.
Kotler (2004, p.601) defined Consumer-buying

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behavior as “The buying behavior consumers – individuals and house holds who buy goods and
services for personal consumption.” In his definition word “consumer” referred to that person
who search goods and services and then purchase it for self satisfaction. Consumer term also
refers to two main consuming entities: firstly personal consumers and secondly consumers who
belong to any organization. An individual or personal consumer only purchase goods and
services their own consumption. So here final consumer is any individual person, while those
consumers who belong to any organization purchases any product or service for their
organizational use. These consumers consist of profit and non profit business, government
agencies, institutions; all these organizations must purchase products, equipment and services in
order to operate their firm (Kotler, 2004).
Interaction between people based on certain emotions, moods, affection and feelings is named as
consumer behavior by Peter and Olson (1993) in their study. At the same time their other
definition of consumer behavior explained that those environmental events in which they
exchange ideas and benefits with each other. The term “buying behavior” is referred to people’s
Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It
blends elements from psychology, sociology, social anthropology and economics. It attempts to
understand the buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the consumer from groups
such as family, friends, reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer playing the
three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for
customer behaviour analysis as it has a keen interest in the re- discovery of the true meaning of
marketing through the re-affirmation of the importance of the customer or buyer. A greater
importance is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be categorized into
social choice and welfare functions.
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Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem is
used for a social function, social welfare function is achieved. Some specifications of the social
functions are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and weak
and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale
simultaneously. The most important characteristic of a social function is identification of the
interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides
services in order to satisfy customers. With that in mind, the productive system is considered from
its beginning at the production level, to the end of the cycle, the consumer.
Belch and Belch define consumer behaviour as 'the process and activities people engage in when
searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as
to satisfy their needs and desires'.'
purchase behavior in which they purchase products only for personal consumption and not for
business purposes (Peter and Olson, 1993).
Most marketing researches have used Fishbein’s (1967) attitudinal model for their marketing
related studies more specifically in the field of consumer behavior (Lilien et al., 1992), and this
attitudinal model provides researchers a very helpful lens through the help which they can study
and elaborates those factors which can explain consumer buying intention and adoption. This
model states that the major dominance on behavior is always been determined by intention. Few
more major factors other then intention like attitudes, individual norms, and perceived behavioral
control are also been explained as connected to an appropriate set of salient behavioral,
normative, and control beliefs about the behaviour. However, the biggest problem with the
Fishbein’s model was that it only limits its scope to adoption level and does not go beyond to
study few other vital factors which can help in explaining and prediction of consumer
continuance behaviour (repurchase). So to overcome this problem Oliver in 1980s made one
another model with the name of “the expectation-confirmation model” which has covered the
area of post-purchase behaviour. This model is being one of the most famous models which is
being used by consumer behavior researchers in their literature. Its used being more specific in
those studies where researchers wanted to explain consumer satisfaction and repeat purchase.
The focal point of this whole model is Satisfaction by which we mean the level of difference
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between consumer expectation and perceived performance. The expectation-confirmation theory

states that if the performance perceived by the consumers gets up to the level of his/her
expectation then confirmation is being made which will ultimately leads to satisfied consumer.
Bhattacherjee (2001) in his study found that those consumers which are satisfied after the
consumption of product or service will more likely to continue with the purchase of the same
products.
1.2 FACTORS WHICH INFLUENCE CONSUMER BEAHVIOUR:
Internal influences
Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality,

motivation, knowledge, attitudes, beliefs, and feelings. consumer behaviour concern with consumer
need consumer actions in the direction of satisfying needs leads to his behaviour of every
individuals depend on thinking.
External influences
Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family, social
class, reference groups, lifestyle, and market mix factors
Consumer purchases are influenced strongly by or there are four factors. The following are the
certain factors which influence the consumer behavior:
Cultural Factor :-
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class
Culture:-
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The set of basic values perceptions, wants, and behaviours learned by a member of society from
family and other important institutions. Culture is the most basic cause of a person’s wants and
behaviour. Every group or society has a culture, and cultural influences on buying behaviour may
vary greatly from country to country
Sub Culture :-
A group of people with shared value systems based on common life experiences and situations.
Each culture contains smaller sub cultures a group of people with shared value system based on
common life experiences and situations. Sub culture includes nationalities, religions, racial group
and geographic regions. Many sub culture make up important market segments and marketers often
design products.
Social Class:-
Almost every society has some form of social structure, social classes are society’s relatively
permanent and ordered divisions whose members share similar values, interests and behaviour.
Social Factors :-
A consumer’s behaviour also is influenced by social factors, such as the (i) Groups (ii)
Family (iii) Roles and status
Groups :-
Two or more people who interact to accomplish individual or mutual goals.A person’s behavious is
influenced by many small groups. Groups that have a direct influence and to which a person
belongs are called membership groups. Some are primary groups includes family, friends,
neighbours and coworkers. Some are secondary groups, which are more formal and have less
regular interaction. These includes organizations like religious groups, professional association and
trade unions.
Family:-
Family members can strongly influence buyer behaviour. The family is the most important
consumer buying organization society and it has been researched extensively. Marketers are
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interested in the roles, and influence of the husband, wife and children on the purchase of different
products and services.
Roles and Status :-
A person belongs to many groups, family, clubs, organizations.
The person’s position in each group can be defined in terms of both role and status.
Personal Factors :-
It includes
Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality and
self concept.
Age and Life cycle Stage:-
People changes the goods and services they buy over their lifetimes. Tastes in food, clothes,
furniture, and recreation are often age related. Buying is also shaped by the stage of the family life
cycle.
Occupation :-
A person’s occupation affects the goods and services bought. Blue collar workers tend to buy more
rugged work clothes, whereas white-collar workers buy more business suits. A Co. can even
specialize in making products needed by a given occupational group. Thus, computer software
companies will design different products for brand managers, accountants, engineers, lawyers, and
doctors.
Economic situation :-
A person’s economic situation will affect product choice
Life Style :-
Life Style is a person’s Pattern of living, understanding these forces involves measuring consumer’s
major AIO dimensions. i.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion,
family recreation) and opinions (about themselves, Business, Products)
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Personality and Self concept :-
Each person’s distinct personality influence his or her buying behaviour. Personality refers to the
unique psychological characteristics that lead to relatively consistent and lasting responses to one’s
own environment.
Psychological Factors :-
It includes these Factors.
i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes
Motivation :-
Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the
need
Perception :-
The process by which people select, Organize, and interpret information to form a meaningful
picture of the world.
Learning:-
Changes in an individuals behaviour arising from experience.
Beliefs and attitudes :-
Belief is a descriptive thought that a person holds about something
Attitude, a Person’s consistently favourable or unfavourable evaluations, feelings, and tendencies

towards an object or idea
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1.3 INTRODUCTION TO COSMETICS INDUSTRY IN INDIA
India, with a population of nearly a billion people, is a country of contrasts. India's urban population is the main
engine that fuels the demand for various cosmetic products. The ‘morphing’ of India is subtle and the changes are
not visible for the first time visitor. However, the market liberalization process that began in 1991, along with the
crowning of three Indians as Miss World and Miss Universe during the preceding four years, have made Indian
women conscious of their appearance. Consequently, the cosmetic consumption patterns of Indian women have
changed, and this trend is fuelling growth in the cosmetic sector. The Indian cosmetics and toiletries market grew by
8.7% in current value terms in 2001, with value sales amounting to Rs126 billion.
The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products,
while at the same time the legendary emerging middle- class has generally been fuelling demand for cosmetics and
upper-mass toiletries.
Products that are too specialized have yet to be successful on the Indian market. Examples include toners, hand care
and other value-added skin care products, bath & shower products and aftershave balm. Only the richest consumers
can afford these; indeed, the average consumer may be unaware of their purpose or even existence.
This also explains the relatively poor showing of perfumes, especially the premium variety.
This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years.
The growing Indian cosmetics market offers promising prospects for international brands. The growth rate in the
cosmetics market reflects an increasing demand for beauty care products in India. Perfumes and fragrances, skin
care, and hair care products are some of the major segments with promising prospects for U.S. companies.
Penetration of most cosmetic and toiletries is very low in India. Current consumption of many products is well below
that of many countries in Asia. The low market penetration of many cosmetics and personal care products offers
room for growth.
Market Overview :
The current size of the Indian cosmetic market is approximately US$ 600 million. Of this, the fastest growing
segment is color cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid
growth rate of 20 percent per annum across different segments of the cosmetics industry reflecting an increasing
demand for all kinds of beauty and personal care product. Growth has come mainly from the low and medium-priced
categories that account for 90 percent of thecosmetics market in terms of volume.
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Nail enamels and lipsticks account for around 65 percent of total color cosmetic sales in India. Lakme, a brand
originally introduced by the Tata group of India, now bought over by Hindustan Lever (HLL) of the Unilever group,
Tips & Toes, another domestic player, and Revlon dominate the US$ 60 million color cosmetics market.
Multinationals, Revlon of the U.S. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and
nail enamels market. Mass-market products account for a major share; while the premium segment accounts only for
a mere 9 per cent in lipsticks and 5 per cent in nail enamels. The skin care market in India is estimated at US$ 180
million. Within the last decade, this segment has seen many consumers slowly shift from the mass to the premium
end of the market. In the skin-care segment, price and volume played an equal role in value growth. From a very
basic level of most consumers using only face cream and moisturizers, the market for more specialized skin care
products such as sun screens, toners, cleansers, and astringents, dark circle removing creams, anti-wrinkle creams
and day and night creams seems to have grown steadily in recent years.
Moisturizing lotions, fairness creams and face cleansers are the popular categories in the skin-care segment and
account for approximately 60 percent of the skin-care segment. The major players in this segments are Lakme,
Ponds, Fair & Lovely of the HLL group with a 50 percent market share, followed by players such as J.L. Morison
that markets the Nivea range of products in India, Godrej and Revlon. The size of the hair care market in India is
estimated at more than US$ 200 million, 50 percent of which interestingly comes from sales of shampoo.
International companies like Unilever through its subsidiary, Hindustan Lever (Sun silk, Organics, Clinic, and Lux);
and Procter & Gamble (with brands such as Pantene, Head & Shoulders) dominate the shampoo market in India with
approximately 58 and 20 percent market share respectively.
The market for hair creams, mainly used for hair grooming by men is also very small. Hair oiling, an age old
tradition of Indians and mainly used as a pre-wash nourishment is a major segment in this sector and has giants like
HLL and local Dabur and Marico Industries fighting for market share in the hair oil segment. More and more shelves
in shops and boutiques are stocked with cosmetics from around the world. Since liberalization, many international
brands like Avon, Burberrys, Calvin Klein, Cartier, Christian Dior, Estee Lauder, Elizabeth Arden, Lancome,
Chambor, Coty, L'Oreal, Oriflame, Revlon, L'Oreal, Yardley, Wella, Schwarzkopf, Escada, Nina Ricci, Rochas, Yves
St. Laurent and Japanese cosmetics company, Shiseido have entered the Indianmarket.
The prices of most foreign brands have been fairly high, which has deterred average Indian consumers. International
brands cater to a segment that can broadly be classified as the urban higher income group. Penetration levels of
international cosmetics brands in India are still low. Foreign brands currently constitute only 20 percent of the
market. A major reason for low penetration of international brands can be attributed to high pricing.
Market Trends
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Cosmetics and toiletries are not just the domain of women any longer and Indian men too are increasingly taking to
the use of more and more body sprays, perfumes and other cosmetics and toiletries. With rising demand from men,
the Indian market is getting enlarged and many players are coming out with cosmetic products especially skin care
products for men. In the last five/six 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.
Shehnaz Hussain, Biotique, and Lotus Herbals are the major players in this segment. Many companies also expanded
their range to include herbal variants. The growing popularity for natural products also attracted many primarily
health-care companies such as Himalaya Drugs (with its Ayurvedic Concepts range), and Dabur to launch natural-
based cosmetic products.
Import Market
Costs for importing products are much higher than producing it in the country. India allows entry of imported
cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39.2
percent. This makes imported products very expensive for most consumers. Most foreign cosmetics companies
selling premium brands have had a difficult time developing the low volume premium market in India.
Competition
The Indian cosmetic market, which has been traditionally a stronghold of a few major Indian players like Lakme,
and Ponds has seen a lot of foreign entrants to the market within the last decade. India is a very price sensitive
market and the cosmetics and personal care product companies, especially the new entrants have had to work out
new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a
niche market for themselves. HLL and Revlon were the firstto introduce small pack sizes. Revlon introduced its
small-range of 8 ml nail polishes and lipsticks, and was soon followed it its strategy by major Indian companies as
well.
Small pack sizes have proved to be very popular in the Indian market as it offers a consumer lower purchase cost and
the opportunity to try new products. . In the skin- care segment, from just creams and moisturizers, there has been a
upgrade to value- added products such as under-eye wrinkle removing creams, dark circle removing creams toners,
sunscreen lotions, fairness creams, and many more.
The color cosmetics market saw new products such as smudge-proof lipsticks and mascaras, liquid lip color, and
long-stay lipsticks being introduced. These specialized applications led to growth in volumes and also enabled
companies to price the products at a premium, driving up value growth.
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L'Oreal markets its range of specialized hair care products exclusively through salons and beauty parlors. L'Oreal
currently is the only company in the market that has a hair color range tailored exclusively for parlors. The company
was also the first to introduce modern hair color and shampoos for colored hair in the Indian market.
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 of
most companies.
HUL, is currently India's largest cosmetics and personal care products producer and its brands has the dominant
share (more than 50 percent) in segments such as personal wash, skin care, shampoos, lipsticks and nail polish.
Sales Prospects
The growing Indian cosmetics market offers promising opportunities for international brands. The growth rate in the
cosmetics market reflects an increasing demand for beauty care products in India. The most promising segments for
international companies to pursue are perfumes and fragrances, and specialized/professional skin care and hair care
products. The fastest growing market is however color cosmetics, which account for US$ 60 million of the total
market.
The rural market in India for cosmetics and toiletries remains is largely untapped. Major domestic players have also
not been able to penetrate this market. The urban market itself for specialized cosmetic products remains to be fully
exploited. The Indian skin-care market is not yet fully tapped and offers promising prospects as a growth area.
Penetration of color cosmetics is lower than the penetration prospects ofthe skin-care segment.
To promote the growth of their products, a dominant player like Lakme have embarked upon a business plan to
establish their exclusive franchised beauty salons across major metros in the country. Imported cosmetics have had a
major impact on the Indian market.
L'Oreal India has established a consumer advisory unit and Ponds, as mentioned earlier offers skin care advise
through touch-screen kiosks, and telephone help-lines. Beautique - an exclusive one-stop shop for only imported
cosmetic brands set up recently in New Delhi has qualified beauty consultants to provide free advice and make overs
to consumers.
Market Access
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Prior to March 31, 1999, India had cosmetics and toiletries on its restricted list of imports and a special import
license was required for import of cosmetics and toiletries into the country. This regulation has now been done away
with and, India today, permits import of cosmetics and toiletries without any restrictions. This has made the Indian
market more attractive to foreign cosmetic companies. Imports have been made easier, but not necessarily cheaper.
1.4 INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED
Hindustan Unilever Limited (HUL) (BSE: HUL) is India's largest fast moving consumer goods company, touching
thelives of two out of three Indians with over 20 distinct categories in home & personal care products and food &
beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of over
Rs. 13,000 crores. HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star
Trading House by the Government of India.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited
through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.. It is headquartered
in Mumbai, India and has an employee strength of over 15,000 employees and contributes for indirect employment
of over 52,000 people. The company was renamed in June 2007 to “Hindustan Unilever Limited”.
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
annual survey of India’s Most Reputed Companies over the past 25 years. HUL is the market leader in Indian
consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos
amongst others with over 700 million Indian consumers using its products. It has over 35 brands. Sixteen of HUL’s
brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008).
According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. It’s a company
that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands).
Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products are
available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India. It has 39 factories in the
country. Two out of three Indians use the company’s products and HUL products have the largest consumer reach
being available in over 80 per cent of consumer homes across India.
The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of
the eight Indian companies to be featured on theForbes list of World’s Most Reputed companies in 200.
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1.5 HISTORY OF 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.
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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.
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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
(“Lakshmilipstick” 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.
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1.6 COMPANY PROFILE
Lakme is an Indian brand of cosmetics, owned by Unilever and run by CEO Anil Chopra. Lakme
started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it was named after
the French opera Lakme, which itself is the French form of Lakshmi, the goddess of wealth, also
renowned for her beauty. Indian cosmetic Lakme was started in 1952, famously because the then
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 its chairman. In 1996
Tata sold off their stakes in Lakme Lever to HLL, for Rs 200 Crore (45 million US$), and went on
to create Trent and Westside. Even today, when most multinational beauty products are available in
India, Lakme still occupies a special place in the hearts of Indian women.
Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all
over India. Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing
beauty services. Lakme' has been ranked as 47th most trusted brand in India by The Brand Trust
Report The company is the title sponsor for Lakme Fashion Week (LFW) a bi-annual fashion event
which takes place in Mumbai.
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1.7 MAKEUP TYPES
Cosmetics include skin-care creams, lotions, powder, perfumes, lipsticks, fingernail and toe nail
polish, eye and facial makeup ,towelettes, permanent waves, colored contact lenses, hair colors, hair
sprays and gels, deodorants, hand sanitizer, baby products, bath oils, bubble baths, bath
salts, butters and many other types of products. A subset of cosmetics is called "make-up," which
refers primarily to colored products intended to alter the user’s appearance. Many manufacturers
distinguish between decorative cosmetics and care cosmetics.
Most cosmetics are distinguished by the area of the body intended for application.
Face Primer, Come in various formulas to suit individual skin concerns. Most are meant to reduce
the appearance of pore size, prolong the wear of makeup, and allow for a smoother application of
makeup. Applied before foundation.
Eye Primer, Used to prolong the wear of eye shadows on the eye as well as intensify color payoff
from shadows.
Lip gloss g, is a sheer form of lipstick that is in a liquid form.
Lipstick, lip gloss, lip balm, lip conditioner, lip primer, and lip boosters. Lip stains have a water or
gel base and may contain alcohol to help the product stay on the lips. The idea behind lip stains is to
temporarily saturate the lips with a dye, rather than covering them with a colored wax. Usually
designed to be waterproof, the product may come with an applicator brush or be applied with a
finger.
Concealer makeup used to cover any imperfections of the skin. Concealer is often used for any
extra coverage needed to cover blemishes, or any other marks. Concealer is often thicker and more
solid than foundation, and provides longer lasting, and more detailed coverage. Some formulations
are meant only for the eye or only for the face.
Foundation used to smooth out the face and cover spots or uneven skin coloration. Usually a liquid,
cream, or powder, as well as most recently, a light and fluffy mousse, which provides excellent
coverage as well. Foundation primer can be applied before or after to get a smoother finish. Some
primers come in powder or liquid form to be applied before foundation as a base, while other
primers come as a spray to be applied after you are finished to help make-up last longer.
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Face powder used to set the foundation, giving a matte finish, and also to conceal small flaws or
blemishes.
Rouge, blush or blusher, cheek coloring used to bring out the color in the cheeks and make
the cheekbones appear more defined. This comes in powder, cream, and liquid forms.
Contour powder/creams, used to define the face. It can be used to give the illusion of a slimmer face
or to even modify a person’s face shape as desired. Usually a few shades darker than one’s own skin
tone and matte in finish to create the illusion of depth. A darker toned foundation/concealer can be
used instead to contour to create a more natural look.
Highlight, used to draw attention to the high points of the face as well as to add glow to the face. It
comes in liquid, cream, and powder form. Often contains shimmer, but sometimes does not. A
lighter toned foundation/concealer can be used instead to highlight create a more natural look.
Bronzer, used to give skin a bit of color by adding a golden or bronze glow. Can come in matte,
semi matte/satin, or shimmer finishes.
Mascara is used to darken, lengthen, and thicken the eyelashes. It is available in natural colors such
as brown and black, but also comes in bolder colors such as blue, pink, or purple. There are many
different formulas, including waterproof for those prone to allergies or sudden tears. Often used
after an eyelash curler and mascara primer. There are now also many mascaras with certain
components to help lashes to grow longer and thicker
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1.8 MISSION:
BEAUTY FOR ALL
For more than a century, Lakme has devoted itself solely to one business: beauty. It is a business
rich in meaning as it enables all individuals to express their personality gain self-confidence itself
and open up to others.
BEAUTY IS A LANGUAGE
Lakme has set itself the mission of offering men & women worldwide the best cosmetics innovation
in terms of quality; efficacy & safety .It purses this goal by infinite diversity of beauty needs and
desires all over the world.
ACHIEVEMENTS
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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 expert Lakmé continuously innovates to offer a wide range of high
performance and world class color cosmetics, skincare products, and beauty salons. Combining
international cosmetic technology with an in-depth understanding of the Indian woman’s needs,
Lakmé also offers its consumers a comprehensive beauty experience through its products and
services at the Lakmé Salons and Studios.
Key Facts
•Lakme was the country's first cosmetic brand to introduce make up to Indian women and takes
pride in being the expert on Indian Beauty for over 50 years.
•It is a complete beauty brand spanning colour cosmetics & skin care and extending to beauty
services through the network of Lakme Beauty Salons.
•Its bond with beauty and fashion is manifested through the Lakme Fashion Week, which is now the
largest fashion event of its kind in the country.
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1.9 TOP LAKME COMPETITORS
July 3, 2018 By Hitesh Bhasin
Lakme, owned by Hindustan Unilever is a famous Indian cosmetic brand. It is the number one
cosmetic brands in India. It produces a wide range of products which inspires every woman to
express the unique beauty thereby making them realize the strength of their beauty.
It innovates continuously on various products to offer huge world-class cosmetics, beauty salons,
and skin care products. It combines international cosmetic technology with a deep understanding
of the needs of an Indian woman.
It also provides the consumers complete beauty products that suit many Indian skin tones. Lakme
has created its visibility in the market through high-end beauty parlors or salons, and through
various fashion events’ sponsor.
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Through this article let us discuss the top Lakme competitors.
1) M.A.C
MAC (Make-up Art Cosmetics) is a leading cosmetic manufacturer, headquartered in New York,
United States. It was established in the year 1985. It is considered as a leading professional
makeup specialist in the world. They produce products that cater to people of all ages.
The various products of MAC serve the demand of consumers and professional makeup artists. It
is at the lead in the fashion industry and collaborates with leading talents from art and fashion
domain. It offers a wide range of products that blend people with glamorous style. Their products
are available in over 200 locations in about 15 countries across the globe. The company always
focuses on developing new categories of products and target to include 50 collections every year.
Their main goal is to serve the various demands of consumers and professional makeup artist.
Due to their various products, MAC is considered one of the top Lakme competitors.
2) L’OREAL
L’Oreal is a well-known and leading company in the personal care and cosmetic industry.
Founded in the year 1909, L’Oreal is headquartered in France. Their annual sale of various
products is estimated at about $27.2 billion dollars. Their famous products are color cosmetics,
hair care, sun care, skin care and fragrances.
It is a total beauty care company that combines the latest technology with the great quality. It is a
global brand with many international products.
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As it is the biggest beauty brand in the world, L’Oreal has a supreme commitment to the
technology, innovation, and research, thereby providing high-quality and brand-new products for
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people of all ages. The band consists of five main beauty categories of hair cair, hair color, hair
style, cosmetics, and skin care. There are continuous research and development that takes place
in L’Oreal to ensure the safety of the customers and also for new products. As L’Oreal is a fastest
growing personal care and beauty products, it is considered as one of the top Lakme competitors
in the world.
3) Maybelline
Maybelline is one of the top global cosmetics company in the United States. It helps women to
discover new looks and exhibit their own creativity and individuality. Maybelline provides
scientifically-advanced formulas, radical textures, and trendsetting shades to enhance the beauty
of women. Maybelline produces various products for eyes, faces, and lips.
Their products are available in about 129 countries worldwide. It manufactures more than 200
products by using technologically advanced formulas. The company sells their products across
the world through retail outlets and online shopping. The products of Maybelline are tested for
quality and their makeups are all mineral based. They offer huge choices for each product. Due
to their various products and quality, Maybelline is considered as one of the top Lakme
competitors.
4) Covergirl
An American cosmetic brand, Covergirl is headquartered in Maryland, United States. It was

owned by Noxzema Chemical Company which was later acquired by Procter & Gamble.
CoverGirl provides their products for individual customer service and offers a wide range of
beauty products at reasonable prices. It deals in a wide range of cosmetics like foundations,
concealers, blushes, and lotions for face makeup, eyeshadows, eyeliners, kohl pencils, and
mascara for eye makeup and lipsticks, lip glosses and lip liners.
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The Covergirl cosmetics are manufactured with great care and are safe for health, human, and the
environment. They produce a wide range of products that cater to the entire cosmetic
requirements from head to toe and also to all skin types.
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The biggest support for Covergirl’s growth happened when it was owned by Procter & Gamble.
This could be because the company also owned some of America’s marquee cosmetic brands like
Olay, SK-II etc. It helped the brand to expand to more regions and also reach out to customers
better. Due to their wide range of products and their availability, Covergirl is regarded as one of
the top Lakme competitors in the world.
5) Colorbar
Colorbar is one of India’s leading beauty brands that is launched in the year 2005. Their
innovative and best in class products of Colorbar make every woman feel beautiful. The products
manufactured by Colorbar meet the international standards.
It is a fastest growing beauty brand that is available in about 65 exclusive stores, more than 900
multi-brand outlets and through partner chains across the globe. The
company’s portfolio includes many products like loose powders, highlighting kits, contour,
primers, concealers, BB creams, blush sticks, compacts, foundations, makeup removers,
lip colors, and wipes for the face.
The strength of the brand lies in its premium packing, continuous product innovations, and its
premium packaging. It is also known for its fast-growing and demanding target segment of
consumers. Their main focus on quality hence all their products are validated by Market
Research Group to suit the needs of the consumer and the markets it caters to. Due to their wide
range of products, Colorbar is regarded as one of the top Lakme competitors.
6) Revlon
An American multinational company, Revlon was found in the year 1932 in the New York City.
The company started with a single product, nail enamel and over the years entered into
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production of cosmetics, fragrances, skin care, hair care, and many more.
The Company has their operations in four main divisions which are the professional division,
consumer division, Elizabeth Arden segment, and Other segments.
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The company is expert in a wide range of products like concealer, foundation, face powder,
blush, eyeshadow, eyebrow pencil, mascara, nail paint, lipstick, and lip gloss. As their products
reach many customers across the world, it suits any skin types and complexion. Their annual
turnover is estimated at about 2.3 billion USD. The company has high customer engagement by
providing 24-hour online helpdesk facility. This band is connected to prominent celebrities like
Ashley Graham, Halle Berry, Emma Stone, and many more. Due to their various products
available for customers, Revlon is considered as one of the top Lakme competitors.
7) Avon
Avon is a well-known beauty company headquartered in London, United Kingdom. Founded in

the year 1886, Avon is the fifth largest beauty company in the world. Avon produces various
products like makeup, skin care, perfume, toiletries, and fashion.
Their products are being sold successfully in places like America, Europe, USA, UK, Middle
East, and the Asia Pacific. The company’s portfolio includes the production of beauty, home, and
fashion products. The company mainly sells the products to the consumer through direct selling
channel. Avon mainly focuses on women as their target customers, because of which, their
products are mainly for the woman. Their products cater to all the beauty requirements.
Their products are produced after careful research and make sure of the feasibility of the product
in the market. As technology is in great use these days, Avon makes use of technology to reach
out to the customers and other stakeholders. Due to their various products, Avon is considered as
one of the top Lakme competitors.
8) NYX
NYX is a cosmetic company that is a part of L’Oreal group. The company is headquartered in
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Los Angles. The company provides various makeup and cosmetic accessories. Its wide range of
products includes powder, blushers, lip pencils, lipstick, lip gloss, bronzer, concealers, setting
sprays, contour, highlight, eyeliners, and many more.
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It also provides various tools accessories used in the beauty segment. Their brand is sold through
many retailers, fashion and beauty stores, independent shops, beauty supply stores and online
store. NYX cosmetics are one of the fastest growing cosmetic companies.
It produces high-quality and professional cosmetic products and also packed in a unique style. As
it is one of the fastest growing cosmetic companies, NYX is considered as a strongest Lakme
competitor.
9) Bobbi Brown
An American cosmetic company, Bobbi Brown, produces and sells many cosmetic products like
skin care products, color cosmetics, and makeup tools and accessories. It is an international
prestigious beauty brand that permits women to hold and enhance their individual beauty. The
company produces mascaras, eyeshadows, brows, foundation creams, concealers, and many
more. The company was founded in the year 1991 by Bobbi Brown, a makeup artist who turned
into an entrepreneur. It produces great products with high quality that every woman prefers it.
The company serves their customers through many duty-free stores and other personal retail
shops globally. Their products are also available for purchase online. Due to their wide range of
products, Bobbi Brown is considered as one of the top Lakme competitors in the world.
10) Clinique
Clinique was established in the year 1968, is a popular American brand, It is a personal care and
cosmetic company that manufactures toiletries, skin care products, cosmetics, and fragrances.
The products of this brand are available in high-end department stores located in the USA. This
brand can be used for people who have sensitive or problematic skin.
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It is considered one of the biggest skin care and cosmetic brands in the world. Clinique stores are
seen in across 135 countries in the world. The products of Clinique are free from allergies and
perfume. They also sell non-comedogenic makeup products will more prices.
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Clinique produces high-quality products and is available at varied locations. The products of
Clinique are free from chemicals. As they are into manufacturing of many products, Clinique is
considered as one of the top Lakme competitors.
11) LA Girl
Also regarded as a top Lakme competitor, LA Girl is an affordable luxury cosmetic brand that
produces various products. It produces top quality color cosmetics for all makeup users.
The various products of LA Girl create a spin on beauty to be inspired through the art of color. It
produces various cosmetic products for eyes, lips, face nails, and accessories.
With an incredible selection of high-quality products that cater to customers across the globe,
L.A. Girl has become a targeted brand that offers beauty without compromise. Their products are
available through the offline and online store. As LA Girl is one of the fastest growing
companies, it is regarded as one of the top Lakme competitors.
From being the contemporary Indian beauty expert to becoming the flag-bearer of the latest
makeup trends and styles that hit the runway, Lakmé as a brand continues to be innovative with
its approach towards the world of makeup and beauty.
Whether it is products that are synthesized to meet every Indian woman’s requirements, or the
world-class hair, beauty and skin care services offered at Lakmé Salons, we at Lakmé are proud
to deliver only the finest!
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1.10 PRODUCT LINE OF COMPANY:
LAKME ABSOLUTE
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Making face make-up a simpler yet foolproof experience, Lakme launches Lakme Absolute Face
Stylist – a high performance professional face make-up range that includes Lakmé Absolute Face
Stylist Concealer, Lakmé Absolute Face Stylist Foundation, Lakmé Absolute Face Stylist Compact
and Lakmé Absolute Face Stylist Blush Duos. The new, break through and innovative combination
of ingredients in each product promises professional results with every application.
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LAKME 9to5 PRIMER +MATTE LIPSTICK
Lakmé 9 to 5 The Office Stylist Range consists of a wide collection for daily office wear
with subtle shades that require no touch-ups through the day, providing an impeccably styled look
and allowing a hassle-free transition from the desk to the office party.MARKET SHARE
With a smooth application and an intense colour payoff, the Lakmé 9to5 Primer + Matte Lip Colors
come with a built-in primer that sets a flawless matte base and evens out your lips.
Available in 30 highlight pigmented and work-ready shades that last up to 12 hours, touch-ups
are now a thing of the past.
MRP inclusive of all taxes on all products
Net Quantity: 3.6 g
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LAKME ABSOLUTE INFINITY EYESHADOW PALETTE
For those who love getting artsy with their eyes, say hello to the all new Lakmé Absolute Infinity
Eyeshadow Palette - Midnight Magic ! Turn heads with shades of dark blue, berry, purple, green
and brown available in the Midnight Magic palette. Get experimenting with these dazzling and
enigmatic shades. Offbeat or classic, subtlety or drama... whatever your mood be, Lakmé
Absolute Infinity Eyeshadow Palettes are here to stay!
MRP inclusive of all taxes on all products

Net Quantity: 12 g
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LAKME ABSOLUTE HYDRA PRO GEL CRÈME
Feel an Instant rush of hydration with Lakme Hydra Pro Range. Lakme Absolute Hydra Pro Gel
Crème locks in hydration and improves skin texture, reduces moisture loss giving your skin a dewy
– fresh, hydrated look. This lightweight gel formula is infused with revolutionary water bank
molecule, hyaluronic acid, it instantly plumps up skin. It is clinically proven to instantly boost skin
hydration* by 70% and lock in hydration for 72 hours. For Superior results use Lakme Absolute
Hydra Pro Gel Crème during the day and Overnight gel before going to bed to get supple, fresh
looking skin.
MRP inclusive of all taxes on all products Net Quantity: 50g
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LAKME EYECONIC
Lakme has come out with two new “Eyeconic” range Products, a basic mascara and a kajal,
which I think each one
of us use on a daily basis. So, its a good call to come out with such products at such a great price
point of Rs. 199 for
the kajal and Rs. 250 for the mascara. One thing I absolutely love about these two is the appeal
they have in terms of the
packaging and the color and the name “Eyeconic” (remLAKME “eye-am” from Maybelline?). This
will be a hit with the
younger girls (I am 27, not so old though) and also a hitLAKME newcomers to makeup.
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CHAPTER 2:-RESEARCH OF METHODOLOGY:
2.1 MEANING OF RESEARCH
1. Lakme products are helpful in creating awareness and perception among customers.
2 Advertisements develop self-concepts in order to induce purchase decisions.
3 Lakme is an admired beauty brand and a leader in the beauty industry.
4. With and in depth understanding of international cosmetic technology and beauty and skin care
needs of Indian women, Lakme offers an all-round beauty experience through its products and
services at Lakme salons.
2.1 OBJECTIVES:
-To know about consumers behavior towards lakme products.
-To know preference of consumers towards lakme.
-To know satisfaction of lakme products.
-To know problem faced by lakme products.
-To know how oftenly customers purchase lakme products.
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2.3 HYPOTHESIS:
NULL HYPOTHESIS
Different demographic factors are not associated with consumer buying behaviour.
ALTERNATIVE HYPOTHESIS
Different demographic factors are associated with consumer buying behaviour.
2.4 SIGNIFICANCE OF CUSTOMER BUYING BEHAVIOUR:
Understanding consumer behavior is essential for a company to find success for its current products
as well as new product launches. Every consumer has a different thought process and attitude
towards buying a particular product. If a company fails to understand the reaction of a consumer
towards a product, there are high chances of product failure.
1. Consumer Differentiation:
In marketing, consumer differentiation is a way to distinguish a consumer from several other

consumers. This helps to make a target group of consumers with the same or similar behavior.
2. Retention of Consumers:
Consumer behavior is not just important to attract new customers, but it is very important to retain
existing customers as well. When a customer is happy about a particular product, he/she will repeat
the purchase. Therefore, marketing the product should be done in such a way that it will convince
customers to buy the product again and again.
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Thus, it is very evident that creating customer and retaining them is very important. This can be
done only by understanding and paying attention towards the consumer’s buying behavior.
3. Design Relevant Marketing Programe:
Understanding consumer behavior allows you to create effective marketing campaigns. Each
campaign can speak specifically to the separate group of consumers based on their behavior.
For example, while targeting kids market, you may have to look out for venues such as TV ads,
school programes and blogs targeting young mothers. You will need to take different messaging
approaches for different consumer groups.
4. Predicting Market Trend
5. Competition:
6. Innovate New Products:
7. Stay Relevant in the Market
8. Improve Customer Service
2.5 LIMITATIONS IN CUSTOMER BUYING BEHAVIOUR
Consumer buying behavior is a psychological process that is important to businesses and

marketing professionals. Consumer buying behavior relates to the identification of consistent
stages of decision making used in every purchase situation. The process begins with need
recognition, followed by information gathering, a purchase and finally, post-purchase evaluation.
Marketers rely on an understanding of buyer behavior to effectively position products and
services. However, consumer buying behavior does have limitations.
1. Inconsistency
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One of the biggest drawbacks of relying too heavily on consumer buying behavior is that
consumers rarely apply the same steps in the same way for every product and service purchase.
This makes it more difficult for marketers trying to stimulate a need or to offer messages that
enhance the likelihood of a purchase for their brand. Thus, most companies have to perform more
research into their particular market segments and how they approach their brand.
2. Limited Buyer Interest
Another primary limitation for marketers using the consumer buying behavior model is that
consumers sometimes are much less involved in a purchase decision. For instance, someone
buying laundry detergent is generally less involved in the purchase than someone buying a car or
washer and dryer. Thus, the ability of marketers to affect consumers by analyzing buyer behavior
is limited. Consumers that are less involved spend less time seeking or viewing information about
the purchase.
3. Social and Cultural Influences
Marketers spend significant time trying to interpret consumer buying behavior related to their
products, but they must also understand how each given customer is influenced externally by
social relationships and culture. Selling barbecue to Americans for the Fourth of July is fairly
predictable. However, knowing how a given customer is influenced by family, friends and their
community for purchases of appliances, food and household items is significantly more complex.
4. Applying Stimuli
In its "Buyer Behavior" overview, MMC Learning points out that marketing tries to respond to
consumer buying behavior by communicating with stimuli expected to elicit the desired consumer
response. For instance, a fast food restaurant may promote its late night drive through window to
inspire a desire from the market for a late night meal. Unfortunately, MMC Learning notes that
buying behavior involves a number of complicated psychological variables related to consumer
perception, motivation, learning, memory, attitude and personality. Accurately predicting response
to a given message often demands significant marketing research and focus group studies.
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CHAPTER 3:-REVIEW OF LITERATURE
This part of the chapter presents a review of existing literature on consumer behaviour towards
cosmetics in order to gain insight into the research work. Such reviews highlight the significant
studies not only in India but throughout the world. This review also focuses on the preferences,
advertisements, the cosmetic markets and the consumption pattern of cosmetic consumers. This
chapter analyses the extensive literature about the behaviour of cosmetic consumers, including their
attitudes and perception.
As a natural human tendency when consumers want to purchase a product, they consult the existing
users first and obtain a preliminary opinion. They also gather information about special features in
it, make a decision to purchase, buy and use the product, then evaluate the quality of the product.
Many women prefer cosmetics because it makes them feel confident and pretty. Women’s choice of
cosmetics has changed from luxury category to an essential category. Due to the advent of satellite
television the awareness level of women towards cosmetics has increased a lot. They feel that
cosmetics highlight their attractive features and conceal their facial flaws. The increasing fashion
trends, beauty consciousness, high disposable income diversity, consumer demands insist 19 the
cosmetic consumers to choose different cosmetic items. The following reviews deals with the
awareness level and preference level of cosmetic consumers.
When consumers perceive an advertisement for a certain brand as promoting another, it is not only
ineffective, but even counterproductive (Kamen, 1987; Poiesz and Verhallen, 1989): it produces an
effect that the advertiser specially wants to avoid.
Therefore, perception, although seldomly studied, is a phenomenon that has an impact over its
consumers, and researchers. unremitting attention, and measures of consumer behavior and
perception should be added to the more conventional measures to increase the sales of a
product(Poiesz and Verhallen, 1989).
Consumer behavior is studied so that we can come to know that how perception and attitude of a
person decides that what should be the buying pattern of the consumers (Poiesz and Verhallen,
1989).
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Sengupta and Noopur Agrawal
Not only the consumer behavior but the perception of consumers, may be the subject of people
buying the products of lakme (Poiesz and Verhallen, 1989).
Correct identification and confusion are not perfectly related. It is possible that the recipient of the
message cannot attribute any particular brand to an advertising message, in which case he/she is not
really confused, but simply does not have any idea.
A consumer confusing brands thinks he/she recognises the brand. Depending upon what is the
perception of the consumers, it can be positive or negative. (Häcker and Verhallen, 1988; Poiesz and
Verhallen, 1989). Negative perception refers to the extent to which the respondents will not buy the
product. Positive brand perception refers to the degree to which the other respondents are willing to
buy the product. Positive Brand perception is an advantage for a brand. Negative brand perception
may be a threat to a clear positioningof the product amongst the women.
Brengman et al. (2001) found that Consumers most vulnerable to brand perception generally have
higher level of knowledge about the products which they are using.
Products are becoming more and more objectively similar with respect to their functionality and
product presentation (Poiesz and Verhallen, 1989). Ha (1996) refers to the degree of similarity and
proximity of advertisements. (De Pelsmacker and Geuens, 1997a).the more the proximity the more
consumers are prone to buy the products.
Successful advertising techniques get imitated and waves of similar advertising arise. It can be
expected that a higher DOSS leads to more brand confusion. In parallel, similarity in visual
appearance of products has also been found to be a major reason for confusion in advertising
(Loken and Ross, 1986; Ward and Loken, 1986).
Furthermore, in a study of brand perception of consumers cited the product or the packaging. as a
primary reason for recognition and buying of the product. (De Pelsmacker and Van Den Bergh,
1997b).
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By Indiaretailing Bureau
December 13, 2019
Lakme Salon brings alive the vision to ‘Beautify the Future’ by educating talent in 115 Lakme
Academy powered by Aptech centres and creating career and entrepreneurship opportunities for
4000+ team members across 460+ salons across the country.
Taking ahead this mission, Lakme Salon launched its network-wide sustainability initiative under
the campaign ‘Happy New You’. One of the largest chains with 460+ salons across 154+ cities,
Lakme Salon aims to reduce its carbon footprint and build a sustainable business model
through this initiative, while also inspiring their 1 million+ customers to adopt environment friendly
practices.
Lakme Salon took the first steps in this direction in 2018 by making small changes in their
operations i.e switching to LED lighting, installing water-saving nozzles and maintaining optimal
a/c temperatures in the salons. Additionally, they planted 40,000 trees that will offset the total
carbon footprint of 69 Salons through electricity consumption, in 20 years.
Taking this initiative one step higher, the 2nd phase of the campaign launching on December 13 will
have all 460+ salons take multiple actions to go green.
These initiatives include:
-Complete shift to e-bills, thereby reducing paper consumption
-Implementing waste segregation in the salons
-Installation of energy-efficient fixtures that will reduce energy consumption by upto 75 pc
-Switching to biodegradable consumables
-Introducing glass bottles – replacing single use plastic
-Adding high oxygen indoor plants
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Pushkaraj Shenai, CEO, Lakme Lever said, “The Unilever Sustainability mission has inspired our
team to articulate and live the Lakme Salon vision – BEAUTIFY THE FUTURE – to create a
beautiful future for our consumers, employees and franchisee partners by building a sustainable
business. We are making Lakme Salon operations sustainable from December through our various
initiatives. Our vision is being supported and led by our franchisee partners. While the sustainability
initiatives are being implemented across the network, we have also launched 8 green salons with
our franchise partners this year. These salons use eco-friendly design and materials in construction.
We will scale this up with more partners in 2020.”
During the year-end festive season, the chain will also roll out exciting engagement offers to bring
their customers on board with this initiative.
Customers will receive an eco-friendly scrunchie with plantable seeds with their bills and a reusable
bag sourced from the NGO Goonj on purchase of any retail product. They can also spinthe ‘Wheel
of Happiness’ and avail exciting offers for themselves. With every offer redeemed, Lakme Salon
will plant 1 tree on behalf of the consumer. Additionally, every Showstopper member of their
Runway Rewards loyalty program will receive an eco-friendly gift including the scrunchies,
plantable seed bombs and bamboo speakers.
In keeping with the spirit of the initiative, all salons will be decorated by the employees using old
and upcycled newspapers and plastic bottles. Employees will also take the ‘green pledge’ as part of
the campaign.
Lakme Salon, present in 154 cities across India, has 460+ salons with over 360 franchise partners.
The brand operates under COCO, FOFO and FOCO models. With a comprehensive 6P franchise
model, it supports budding entrepreneurs to set up and successfully run their own Lakme Salon.
Through its LEAP program, it also helps tenured employees to setup their own salons.
Ashita Marya Consulting Editor
January 1, 2020
Opinions expressed by Entrepreneur contributors are their own.
In a journey that spans over three decades, Lakme Salon has excelled in the beauty and cosmetics
industry. With an expansive network of 450 salons across India, the brand now looks at opening two
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new outlets every week. In this interview, the company's spokesperson highlights the reasons why
the brand has been such a huge success in India
Could you walk us through the key highlights in Lakme Salon’s journey in India We started our
journey in 1980 with one salon, but it took us 30 years to open our first 100 stores and we reached
the milestone in 2010. And since then, every two years we have been adding 100 salons to our
boutique of store
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CHAPTER 4:- DATA ANALYSIS AND INTERPRETATION
ANALYSIS OF QUESTIONNAIRE:
1. AGE?
SR.NO PARTICULARS NO.OF RESPONDENTS % OF RESPONDENTS
1 15-24 years 45 45%

2 25-30 years 21 21%
3 31-40 years 19 19%
4 13 13 13%
5 60 2 2%
TOTAL 100 100%
In the above pie chart diagram, most of the respondents belongs to a youngster age group [15-24]
Years that is 45%. After that [25-30] years includes 21%. [31-40] years includes 19% respondents.
Below 15 years of respondents includes 13%. The least respondents which is 41 years and above
includes only 2%.
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2. DO YOU USE COSMETICS PRODUCTS?
SR.NO PARTICULARS NO.OF RESPONDENTS %OF RESPONDENTS
1 YES 89 89%
2 NO 11 11%
TOTAL 100 100%
In the above pie chart diagram, 89% of respondents use cosmetics products.
And 11% of respondents do not use cosmetics products.
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3. OCCUPATION?
1 Student 45 45%
2 Business 19 19%
3 Service 24 24%
4 Housewife 4 4%
5 House wife 4 4%
6 House wife 1 1%
7 House wife 1 1%
8 retired 1 1%
9 Jobless 1 1%
TOTAL 100 100%
In the above pie chart diagram, most of the respondents belongs to students category, it includes
45%. Business respondents includes 19%. People who do services includes 24% respondents.
Housewives includes 6% respondents. Retired and Jobless includes 2% respondents.
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4. WHICH BRAND DO YOU PREFER?
1 LAKME 72 72%
2 AVON 4 4%
3 ORIFLAME 13 13%
4 GARNIER 7 7%
5 MAYBELLINE 1 1%
6 FOREVER 52 1 1%
7 VICO TURMERIC 1 1%
8 ORGANIC BRANDS 1% 1%
TOTAL 100 100%
In the above pie chart diagram, most of the people prefer to use Lakme products it includes 72%
of respondents. 4% of respondents uses Avon products. 13% of respondents prefer to use Oriflame
products. 7% of respondents uses Garnier products. 4% of respondents uses other brand products.
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5. ARE YOU BRAND CONSCIOUS?
1 YES 54 54%
2 NO 46 46%
TOTAL 100 100%
In the above pie chart diagram, 54% of respondents are brand consious.
And 46% of respondents are not brand conscious.
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6. WHICH LAKME PRODUCT DO YOU PREFER?
1 LAKME EYECONIC 37%
KAJAL 37
2 LAKME SUN EXPERT 27 27%
ULTRA MATTE
3 LAKME EYELINER 26 26%

4 All 2 2%
5 Face powder 1 1%
6 Facewash 1 1%
7 LIPSTICK BCOZ THEY 1 1%
ARE LONGLASTING
AND with MATT
FINISHING
8 Lakme Foundation 1 1%
9 Foundation 1 1
10 no lAKME 1 1%
11 oriflame eyconic 1 1%
lipstick
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12 1 1%
TOTAL 100 100%
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In the above pie chart diagram, the highest Lakme used product is Lakme eyeconic kajal
which is 37%
respondents. Then 27% respondents uses Lakme sun expert ultra matte. 26% respondents uses
Lakme
eyeliner. 2% people prefer to use all three of the Lakme products. 8% of respondents prefer to use
other
Lakme products such as face powder, facewash, lipstick, foundation, etc.
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7. DO YOU FACE ANY PROBLEM WHILE USING LAKME PRODUCTS?

1 NO 77 77%
2 YES 23% 23%
TOTAL 100 100%
In the above pie chart diagram, 77% of the respondents do not face any problem while using
Lakme
products. And 23% of the people faces problem while using Lakme products.
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8. ARE YOU SATISFIED WITH THE LAKME PRODUCTS YOU ARE USING?
1 YES 80 80%
2 NO 14 14%
3 CAN’T SAY 6 6%
TOTAL 100 100%
In the above pie chart diagram, 80% of the people are satisfied with the Lakme products they use.
14% of the people are not satisfied with the Lakme products they use. And 6% of the people can’t
say
whether they are satisfied or not while using Lakme products.
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9. HOW OFTENLY YOU PURCHASE LAKME PRODUCTS?
1 Monthly 36 36%
2 Yearly 57 57%
3 Not used 2 2%
4 Daily 2 2%
5 6 months 1 1%
6 0 1 1%
7 Weekly 1 1%
TOTAL 100 100%
In the above pie chart diagram, 36% of the respondents purchase Lakme products monthly.
57% of the respondents purchase Lakme products yearly. 2% of the respondents purchase it on daily
basis.
1% of the respondents purchase once in a 6 month. 1% of the respondents purchase on weekly
basis. 3% of
the respondents does not use Lakme product
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CHAPTER 5 :-SUGGESTION & CONCLUSION
5.1 SUGGESTIONS AND RECOMMENDATIONS
1 As per the consumer responses and their suggestions the supply must be properly fulfilled so the
need of the customer satisfies.
2 The company and dealer should develop its marketing information system up to date information of
competitors policy, price and product, target market, so the company can know its strengths and
weaknesses.
3 Brand preference 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.
4 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.
5 Lakme is the market leader in makeup products. Most of the consumers are brand loyal. They should
be treated as intangible assets. Lakme should ever strive to satisfy them.
6 They should fulfill the consumer needs.
7 It is suggested that packaging of Lakme are liked by the consumers as compared not satisfied with
quantity of the product.
8 Marketer should provide quality as well as quantity of the Lakme product at reasonable price
according to customers need and wants.
9 Awareness of the different variants of products are available in the market mostly the consumers are
highly satisfied because of its packaging style of the product.
10 Size of the products should be improved with quantity and also can add new shades.
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5.2 FINDINGS
1 It has been found that Age group of youngster (15-24) years has maximum respondents because of
the fashionable product of Lakme.
2 Maximum number of the consumers use cosmetics products that is 89%. And very less number of
consumers do not use cosmetics products.
3 Maximum number of respondents belongs to students category because mostly students like to use
cosmetics products.
4 Most of the respondents prefer to use Lakme products which is 72%. Very less number of people do
not use Lakme products because of their skin problems.
5 Here large percentage of respondents are brand conscious who only uses Lakme products. And less
percentage of people are not brand conscious.
6 Lakme eyeconic kajal is the most preferable product amongs other Lakme products. Because it is
long lasting and smudge free girls mostly prefer using lost lasting and smudge free products.
7 Sun expert ultra matte lotion is also preferable for girls because it protects from harmful rays and it is
non-sticky and lightweighted.
8 Maximum number of respondents do not face any problem while using Lakme products. Because the
quality of the product is moral, which is not harmful for the skin.
9 80% of the respondents are satisfied with the Lakme products they use. Because Lakme continuously
innovates to offer a wide range of high performance and world class cosmetics, Skincare products,
and Beautys salons.
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10 Majority of the customers are satisfied with marketing strategies for Lakme provided by the
marketer.
LIMITATIONS
1 Sample size is limited due to the time constraints.
2 Survey method is covered only near by area .
3 Survey is limited in panvel region only.
4 Resopondents are not perfectly answered because online survey were collected the responses.
5.3 CONCLUSION
The predictable desire of every woman to stay young and beautiful is everlasting. Make-up products are a
powerful weapon in the hands of women which transform normal looking women to beautiful and attractive
women. This study attempts to analyse the behaviour and attitude of the respondents towards make-up
products.
It is done by probing the attitude of the cosmetic respondents and the different factors, which influence
consumers to purchase them. Cosmetic consumers believe that make-up products will enhance their natural
beauty, feel presentable and increase their confidence level. The primary attributes which influences them to
purchase make-up product is quality.
Marketers of make-up products need to understand this and try to cope with the situation. They should
create awareness in the minds of women that makeup products are not luxury items but are essential items in
their daily life routine. They should also emphasise the need for make-up products by insisting the users
through highlighting the aesthetic value of using quality product items. The other important factor which the
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marketers should throw attention is to retain the brand switchers. Due to the awareness of natural cosmetics,
the cosmetic respondents are slowly switching over to them.
Then the marketers have to tap the rural segment by creating awareness to them. Various medias can be used
to access the rural 197 consumers among which, the television advertising is the powerful source and can be
intensively used. If the marketers concentrate on these factors they can easily capture both the urban market
and rural market.
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6.1 BIBLIOGRAPHY
6.1 ANNEXURE:
1 Do you use cosmetic products?

Yes
No
2 How oftenly you use Lakme products?

Monthly
Yearly
Other
3 Which brand do you prefer?

Lakme
Avon
Oriflame
Garnier
4 Are you brand conscious?

Yes
No
5 Which Lakme product do you prefer?

Lakme eyeconic kajal
Lakme sun expert ultra matte
Lakme eyeliner
6 Are you satisfied with the lakme product you are using?
Yes
No
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Cant say
7 Do you face any problem while using lakme products?
Yes
No
6.2 REFERENCE
1. https:// en.wikipedia.org/wiki/Lakm%C3%A9_cosmetics
2. https://www.omniconvert.com/blog/consumer-behavior-in-marketing-patterns-types-
segmentation.html
3. http://reviewsimpact.com/lakme-products-list-with-price
4. https://www.businessmanagementideas.com/consumer-behavior/importance-and-significance-of-
studying-consumer-behaviour/21013
5. https://bizfluent.com/info-8331268-limitations-consumer-buying-behavior.html
6. https://mail.google.com/mail/u/0/?
tab=rm&ogbl#search/google+form/FMfcgxwHMGDWczRMFfkdgMCDqkhXTwxL
7. https://www.acrwebsite.org/volumes/5891/volumes/v09/NA-09
8. https://shodhganga.inflibnet.ac.in/bitstream/10603/175586/11/11_chapter5
9. http://www.ijetsr.com/images/short_pdf/1514833582_1244-1249-mccia159_ijetsr
10. https://www.alliedmarketresearch.com/cosmetics-market
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Principles Of Management And Marketing (University of Mumbai)

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A STUDY ON CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME

KLE College of Science and Commerce, Kalamboli

In Partial Fulfillment of the Degree Bachelor of Management Studies

Under the University Of Mumbai

Khan Shifa Abdul Muttalib

Prof. DR. Geeta Kohade

Bachelor of Management Studies

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(Signature of the Faculty Guide) (Name and designation the Guide)

Prof. Dr. Geeta Kohade

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This is to certify that Miss. Khan Shifa Abdul Muttalib

Prof. Dr.Geeta Kohade

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TABLE OF TITLE PAGE NO.

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CHAPTER 3. REVIEW OF LITERATURE 31-34

Table of Contents Page No.

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A STUDY ON CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME

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1.1 MEANING OF CONSUMER BUYING BEHAVIOUR:

Kotler (2004, p.601) defined Consumer-buying

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between consumer expectation and perceived performance. The expectation-confirmation theory

1.2 FACTORS WHICH INFLUENCE CONSUMER BEAHVIOUR:

Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality,

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Roles and Status :-

A person belongs to many groups, family, clubs, organizations.

Age and Life cycle Stage:-

A person’s economic situation will affect product choice

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Personality and Self concept :-

It includes these Factors.

i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes

Changes in an individuals behaviour arising from experience.

Beliefs and attitudes :-

Belief is a descriptive thought that a person holds about something

Attitude, a Person’s consistently favourable or unfavourable evaluations, feelings, and tendencies

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1.3 INTRODUCTION TO COSMETICS INDUSTRY IN INDIA

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1.4 INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED

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1.5 HISTORY OF LAKME

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1.6 COMPANY PROFILE

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