PROJECT REPORT On COMPARATIVE STUDIES BETWEEN LAKME ANDREVLON WITH THE REFRENCE OF THEIR PRODUCTS V/s SUBMITTED IN THE PARTIAL FULFILLMENT TOWARDS THE AWARD OF B.B.A (Gen.), 3rd SEM BATCH : 2010-2013 DR. BHIM RAO AMBEDHKAR University ARYAN INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES Sector 13, Avas Vikas Colony,AgraFaculty Guide Submitted by:MRS. APARNA PORWAL HONEY AGARWAL
DR.BHIM RAO AMBEDKAR UNIVERSITY, AGRA CERTIFICATECertified that Ms. Honey agarwal of Aryaninstitute of management of computer studies hassubmitted her project report entitled“COMPARATIVE STUDIES BETWEEN LAKME ANDREVLON WITH THE REFRENCE OF THEIRPRODUCTS” under the guidance of Mrs. AparnaPorwal. After completion it successfully in the fulfillmentof requirement for the award of degree of bachelorof business administration of “Aryan institute ofmanagement of computer studies”.Dr. S.K.Gupta AJAY SHARMA (Director) (Head of dept.) (AIMCS)
AKNOWLEDGEMENT I HAVE GREAT PLEASURE IN PRESENTING MY PROJECTENTITLED LAKME AND REVLON. I TAKE THIS AN OPPORTUNITYTO EXPRESS MY DEEPEST GRATITUDE & INEPTNESS TO ALLTHOSE WHO CONTRIBUTED INDIRECTLY THEIR VALUABLE TIME& ASSISTED ME IN MY PROJECT. I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL THEFACULTY MEMBERS. FOR THIS APPROVAL & ALSO FOR HERVALUABLE GUIDANCE & SUPPORT IN COMPLETING MYPROJECT OF COMPARATIVE STUDIES BETWEEN LAKME ANDREVLON. LAST BUT NOT THE LEAST I WOULD LIKE TO EXPRESS MYSINCERE THANKS TO THOSE WHO DIRECTLY & INDIRECTLYHELPED IN THIS PROJECT.
CONTENTS Introduction Brief overview of marketing strategies. Company Profile of Lakme Company Profile of Revlon Various Marketing strategies adopted by the two Company along with product profile Objectives of the Study Research Methodology Data Analysis & Interpretation Suggestions and Recommendations Summary & Conclusion Appendix Questionnaire Bibliography
INTRODUCTION Within a short span of the last five-six years, the use ofcosmetics by Indian consumers has increased significantly with moreand more women and men taking greater interest in personalgrooming, increasing disposable incomes, changing life styles,influence of satellite television and greater product choice andavailability. With the demand for cosmetics on the rise and theopening up of the market to foreign companies, many of the world’spopular cosmetics brands entered the Indian market in the early andmid-nineties and some more have set their sights on India. This cosmetics and personal care industry has been growing atan average rate of 20 per cent for the last few years. The growingIndian cosmetics market offers promising prospects for internationalbrands. The growth rate in the cosmetics market reflects anincreasing demand for beauty care products in India. Perfumes andfragrances, skin care, and hair care products are some of the majorsegments 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 manycountries in Asia. The low market penetration of many cosmetics andpersonal care products offers room for growth. The Indian toiletries
market is well developed and dominated by major multinationalcompanies and a few large Indian players. The urban population with increasing purchasing power is themajor force driving demand for cosmetics and toiletries. India is a veryprice-sensitive market and mass-market products constitute themajor part of the cosmetics and toiletries market. India’s import ofcosmetics and toiletries and intermediate raw materials is around US$120 million, of which the U.S. has a share of approximately 10percent. The objective of the study report is to analyze the consumersatisfaction level of different brands, particularly focused on theLakme and Revlon productsMarket Overview The current size of the Indian cosmetic market is approximatelyUS$ 600 million. Of this, the fastest growing segment is cosmetics,accounting for around US$ 60 million of the market. Industry sourcesestimate a rapid growth rate of 20 percent per annum across differentsegments of the cosmetics industry reflecting an increasing demandfor all kinds of beauty and personal care product. Growth has comemainly from the low and medium-priced categories that account for90 percent of the cosmetics market in terms of volume. Even with a 20 percent average growth rate, the per capitaconsumption of cosmetics is very low in India. Current per capitaexpenditure on cosmetics is approximately US$ 0.68 cents as
compared to US$ 36.65 in other Asian countries. However, withchanging lifestyles, higher disposable incomes, increasing advertising,penetration of satellite television, awareness of the western world andgrowing importance of beauty pageants, there have been significantchanges and use of cosmetics is on the rise. Also, with the boom inthe Indian fashion world and the growth in the television industry,there has been a rise in demand for professional beauty careproducts. Cosmetic companies in India are placing increasingemphasis on market research and targeting new market segmentssuch as teenagers, men and young women. Cosmetics constitute thehigh growth segments. Nail enamels and lipsticks account for around65 percent of total color cosmetic sales in India. Lakme, a brandoriginally introduced by the Tata group of India, now bought over byHindustan Lever (HLL) of the Unilever group, Tips & Toes, anotherdomestic player, and Revlon dominate the US$ 60 million colorcosmetics market. Multinationals, Revlon of the U.S. and LOrealsMaybelline has a dominant share of the small premium lipsticks andnail enamels market. Mass-market products account for a majorshare, while the premium segment accounts only for a mere 9 percent in lipsticks and 5 per cent in nail enamels. Lipsticks account fornearly a third of the market at US$ 21 million, while the market fornail enamels is estimated at around US$ 23 million. The colorcosmetics segment is very competitive and has a high penetrationlevel of 80 percent. Most other cosmetic products are estimated to beused by less than 40 percent of the consumers.
Market Trends Cosmetics are not just the domain of women any longer andIndian men too are increasingly taking to the use of more and morebody sprays, perfumes and other cosmetics. With rising demand frommen, the Indian market is getting enlarged and many players arecoming out with cosmetic products especially skin care products formen.Import Market Costs for importing products are much higher than producing itin the country. India allows entry of imported cosmetics without anyrestrictions but the average import tariff on cosmetics products iscurrently very high at 39.2 percent. This makes imported productsvery expensive for most consumers. Most foreign cosmetics companiesselling premium brands have had a difficult time developing the lowvolume premium market in India. Many had to re-work pricestrategies towards the mass segment. Price is not the only reasonresponsible for their problems. Poor assessment of the size of theupper middle and high-income groups, and price sensitivity evenwithin these groups, had added to their problems.Competition The Indian cosmetic market, which has been traditionally astronghold of a few major Indian players like Lakme has seen a lot offoreign entrants like Revlon to the market within the last decade.India is a very price sensitive market and the cosmetics and personalcare product companies, especially the new entrants have had to work
out new innovative strategies to suit Indian preferences and budgetsto establish a hold on the market and establish a niche market forthemselves. Given the price-sensitivity of the Indian consumer who do notnormally prefer to fork out a large sum at one time, many cosmeticcompanies launched their products in smaller pack sizes to makethem more affordable. Lakme and Revlon were the first to introducesmall pack sizes. Revlon introduced its small-range of 8 ml nailpolishes and lipsticks, and was soon followed it its strategy by majorIndian companies as well. Small pack sizes have proved to be verypopular in the Indian market as it offers a consumer lower purchasecost and the opportunity to try new products.THE MARKETING CONCEPT The Marketing Concept was born out of the awareness thatmarketing starts with the determination of consumers wants andneeds with the satisfaction of those wants. The concept puts the consumer both at the beginning and theend of the business cycle .It stipulates that any business should beorganized around the marketing function, anticipating, stimulatingand meeting customer’s requirements. The customer, not thecorporation has to be the centre of the business universe. A business cannot succeed by supplying products and servicesthat are not properly designed to serve the needs of the customers.Only the Marketing Concept is capable of keeping the organizationfree from marketing myopia.
Features of the Marketing Concept(1) Consumer Orientation An overwhelming emphasis on the consumer and his need is the first distinguishing feature of the Marketing Concept. The concept enables the firm to look at the nature and missions of its business fron the point of view of consumer. The importance of the consumer as per marketing concept can be seen clearly in the words of Peter F.Drucker,” The purpose of any business is to generate a customer. It is thecustomer who determines what a business is. It is the customer and he alone who, through being wiling topay for a good or services, converts economic resources into wealth,things into goods. When a firm adopts Marketing Concept , the consumer is thefocal point of the business. The concept enjoys on the firm to accept‘the consumer as he is’- with all his inherent contradictions, and treathim as the pivot around the entire business has to be built. In otherwords, the concept translated into practice, the textbook idea of‘consumer sovereignty’. (2) Integrated Management Action The second major feature of the Marketing Concept is Integrated Management Action. Integrated management action simply means that all the different functions of the business Must b tightly integrated with one another, keeping marketing as the pivot. This is the essential because every function has the
bearing on the consumer and the aim is to see that all thefunctions lead to the favorable impact on the consumer. And forthis is to happen, all functions have to be integrated andproperly aligned with marketing. In organizations that do not practice integratedmanagement, the different functions and department of theorganizations are preoccupied with the optimization of theirspecific activities .often at the cost of optimization of overallresult. In organization that pratises integrated management, themanagement insists on the absolute coordination of allcompany actions keeping marketing/customer as the focus.(3) Consumer Satisfaction Integrated management action as explained above, is ameans, not an end in itself. It is the of fulfilling the needs of theconsumer. And this leads to the third major feature of theMarketing Concept. Namely consumer satisfaction. TheMarketing Concept emphasizes that it is not enough if a firmhas consumer orientation; it is essential that such anorientation leads to consumer satisfaction. The conceptunderscores that no firm can afford to ignore the satisfaction ofthe consumer; it counters the temptations of short-sightedattitudes towards consumer satisfaction.
MARKETING STRATEGYTo strongly position the brand on the youth platform Lakme Lever is planning to revive its youth-oriented brand, Elle18. Having put the brand on `maintenance mode, this division of HLLwas focusing on Lakme. Speaking to Business Line, Mr Anil Chopra, Vice-President,said: "We are relooking at the Elle 18 brand." Launched in 1998, Elle 18 targeted the first-time cosmetic userand currently sports two product lines comprising lipsticks and nailenamel. "In the first three years, Elle 18 registered sharp growth ratesand the purpose was to create a new segment of consumers," said MrChopra. At that point of time, Elle 18s main competitor in the youth-based cosmetics market was Tips & Toes, a brand that is almost non-existent today.Pricing strategy With a pricing that is almost one-third that of Lakme, Elle 18, oflate, has also unleashed a campaign based on its products.
"There was a change in our strategy in the past. While Lakmehas been high on innovation, Elle 18 has been on maintenance mode.The brand has been growing at a lower rate than Lakme. But now weare now relooking at Elle 18 as there is still no brand that is sosharply positioned on the youth platform," said Mr Chopra. There was a conscious price differential between the brands toattract the first generation users of cosmetics. So, while a LakmeLipstick would have an MRP of Rs 165, an Elle 18 Lipstick was peggedat Rs 55. Meanwhile, Lakme Lever continues to innovate for its existingrange of skincare and color cosmetics under the Lakme brand. It recently relaunched its skincare range under the name ofLakme Fundamentals. "While there is no new product, we will be upgrading theexisting skin care range with new formulation and packaging," MrChopra said. In color cosmetics it has roped in designer Sabyasachi Mukerjeeto unleash the `Free Spirit range as part of its winter collection. "The overall beauty market has been growing between 15-20 percent but we have been growing higher than the market."
However, it is the salon business that has been registering thehighest growth rates for Lakme Lever. "With a small base, our salon business has been growing thefastest," Mr. Chopra said. There are plans to have 100 Lakme salons by the end of theyear from the existing 92 salons across the country. Besides, Lakme Lever intends consolidating its hair careportfolio launched last year under the Lakme Hair Next brand. "We do not want to add to existing hair care products in themarket. The brand has been launched in the hair styling category andwe want to create awareness and educate our consumers withoutconfusing them with more products," said Mr Chopra.
MARKETING STRATEGYLakme Restages Its Opera Its turnaround sketch has got just a few strokes - grab thefashion platform, spruce up the supply-chain, and test the ruralwaters. High priestess of sacred Indian temple meets English armyofficer whos unwittingly strayed into holy ground. They fall in love.Her orthodox father vows vengeance... Thats the story of Lakme, a19th century opera written by Frenchman Leo Delibes, from whichSimone Tata borrowed the name Lakme (French for Lakshmi, thename of the priestess). By 1999, the world looked set for a revised version of the work.Simone Tata was no longer on the scene. And a home-grown fashionbrand-often personified as the high priestess of fashion in thecountry-had been sold to a multinational company whose provenancewas English, well, Anglo-Dutch, actually-Hindustan Lever Ltd (HLL). Worse, with HLL not appearing too keen about the brand-thecompany, predictably, denies this-Lakmé, the brand looked all set tofollow the spirit of Lakmé the opera (a tragedy). Lever was right. The aria, as is now evident, wasnt quite over.Standing amidst the jamboree of what is, arguably, Indias firstfashion summit, the Lakmé India Fashion Week (LIFW for short), Anil
Chopra, 51, the affable Director who heads Lakmé Lever Ltd is bullishabout the brands new positioning: By taking on the fashion andglamour platform, we have, in a way, not just taken a lead (overothers), but also got a virtual ownership of this plank. It will be verydifficult for any other brand to adopt a similar approach. Andreactions to the born-again Lakmé at the LIFW did suggest thatChopra and the brand were on to a good thing. Lakmé is at theforefront of product-innovation. Almost everyone has a Lakmé-something in their (cosmetics) collection, gushes Mumbai-basedfashion choreographer Lubna Adams. So, is Lakmé back?Getting the focus right A little bit of Lakmé history: in 1995, Lakmé Ltd (a Tata Groupcompany) and HLL formed a 50:50 venture Lakmé Lever that wouldmarket and distribute Lakmés products. In 1998, Lakmé sold itsbrands (and the 50 per cent it owned in the JV) to HLL, renamed itselfTrent and entered a different business (retail). Only, the years between1995 and 2000 saw HLL wrestling with several issues with a bearingon Lakmés future. The FAQs: With Ponds becoming part of HLL, what happens toLakmés skincare business? What does Levers launch of Aviancemean for Lakmé? And why is it so difficult to find Lakmé products? Chopra accepts that distribution has been the companysAchilles heel for some time: The supply-chain hasnt been as robust
as it should have been, but that has been the result of our efforts toreposition and reintroduce the brand. The positioning bit, althoughcomplex, is clear: Ponds is Levers primary skincare brand; Lakmé, itsapparitional colour cosmetics brand, which also has a presence inskincare. The aspirational qualification would mean Lakmé wouldcompete at what the company terms the upper-mass (premium) endof the colour cosmetics spectrum (products priced between Rs 85 andRs 250) where a slew of competitors, ranging from Revlon (throughModi Revlon) to Chambor, are already slugging it out. Says MeghnaModi, 26, Executive Director, Modi Revlon: The numbers say it all.According to ORG-MARGs retail audit, we have an 84 per cent shareof the premium end of the colour cosmetics market. Chopra is quickto rubbish this claim; he says ORG-MARG does not have arepresentative sample of the 60,000 outlets through which colourcosmetics are sold in India.Likely outcome by the strategy The premium segment, however, is just a slice of the Indianmarket for colour cosmetics (estimated size: Rs 275 crore). Today, thecompany has three brands: Lakmé itself, which will be positioned as afashion-brand; Elle 18, which has enjoyed success as a college-girlbrand; and Orchid, a super-premium brand that hasnt really seenmuch excitement since its 1999-relaunch.
The company plans to re-re-launch Orchid by end-2000, and istest-marketing Elka, a brand targeted at the lowest-end of the colourcosmetics market. The brand, Chopra claims, could also catalyseLakmés entry into the hinterland, but only if tests show there is arural market for colour cosmetics. Says Nikhil Vora, 28, PortfolioAdvisor, Sharekhan.com: Though rural markets are big potential, acompany has to think of segments carefully. Any expansion into newareas should be justified by returns. Lakmé will remain a loner in the Lever stable: Unilever does nothave a presence in the colour cosmetics segment. That means LakméLever will have to depend on its own kitchen garden. But a focused-most of its skincare business and all of its exports business have beentaken on by HLL-Lakmé does seem to be on a come-back trail. Its stillthe second act, but this opera could well have a happy ending.
Marketing strategy Revlon, Inc. - Competitive Benchmarking Report This report compares the company with its closest competitorson various parameters such as business segments, product offerings& their USPs (unique selling points), geographical coverage, financialperformance, M&A developments and business strategies. Besides a comparative analysis on these metrics, thisCompetitive Benchmarking Report has two USPs, which distinguishesthis report from any other available competitive benchmarking reporton this company: 1. Industry Analysis Section: This section covers an analytical overview on the respective industry segment, companies’ performance vis-a-vis industry trends, issues, challenges, trends and opportunities. 2. Comparative SWOT analysis on the company, its competitors and respective industry segment in a tabular format. This analytical report is especially created for top management,investors, business analysts and decision makers to get acomprehensive perspective on product offerings, financialperformance, market/industry position, and business strategies etc ofthe company in relation to its competitors & industry segment.
This report offers a comprehensive overview on the keystrategies adopted by these market leaders to gain a stronger marketposition in this competitive environment. It can be best used to derivea framework for strategic planning with key success factors (KSFs) ofthe industry or marketplace on specific metrics. From a strategicdecision making perspective, it can be further used to develop futurequality and market initiatives for the company to enhance its overallcompetitive position. Delivery will take 4-5 business days as the publication isupdated at time of order to ensure the information is as current aspossible.
Lakmes Profile Lakmé is an Indian brand of cosmetics, owned by Unilever.Lakme started as a 100% subsidiary of Tata Group (Tomco), it wasnamed after the French opera Lakmé. At the time of its establishment,Indian cosmetic industry was rather nacent, and there was a verysmall market base. Simone Tata joined the company as director, andwent on to become its chairman. When Tatas saw a bigger growthpotential in the retail market, and greater competition from globalcompanies in cosmetics, they enetered into a 50-50 joint venture withHindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 toform Lakme Lever. In 1998 Tata sold of there stakes in Lakmé Lever toto HLL, for Rs 200 Crore (45 million US$), and went on to create Trentand Westside. Half a century ago, as India took her steps intofreedom, Lakme, Indias first beauty brand was born. At a time whenthe beauty industry in India was at a nascent stage, Lakme tappedinto what would grow to be amongst the leading, high consumerinterest segments in the Indian Industry - that of skincare andcosmetic products. Armed with a potent combination of foresight,research and constant innovation, Lakme has grown to be the marketleader in the cosmetics industry. Lakme today has grown to have a wide variety of products andservices that cover all facets of beauty care, and arm the consumerwith products to pamper herself from head to toe. These include
products for the lips, nails, eyes, face and skin, and services like theLakme Beauty SalonsAbout LAKMÉ The Carreras family established LAKMÉ Cosmetics in 1997 andis independent, self-financed and family owned. The family has over40 years of manufacturing experience in salon products. Lakmé East aregional distributor of Lakmé Cosmetics with its main office inColchester is conveniently placed to provide you with all the guidanceback up and support you’ll ever need. The Products LAKMÉ leading hair care products are developed exclusively fordistribution to hair and beauty salons. Branding and packaging of theproduct range is first class and they are tested and manufacturedsolely for this brand name and no other. The very best raw materialsare used in manufacture using the latest technology and adopting thehighest levels of hygiene. All product formulation is in accordancewith the health standards of the European Union and the UnitedStates Food & Drug Administration and is subject to ISO 9002certification. The Promotion Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGEfor customer sales and your own use, with freestanding display unitshighlighting the unique quality and variety of your products and
enhancing the quality of your sales and service. Combine this withFREE ongoing in-salon education and you have the perfect basis togrow your business for yourself, but not by yourself.Lakme expands skin care products Lakme, the Indian cosmetics giant has expanded the range ofskin care products it markets in Sri Lanka, and unveiled thecompanys new international logo and image, Lakmes local distributorHemas Marketing (Pte) Ltd., has announced. Launched in Colombo earlier this month, the addition to theLakme skin care range are the Lakme Nourishing Cold Cream,Nourishing Body Lotion, pH-Balanced Face Wash, Calamine Lotion,Sun Screen Lotion and Hair Remover. Prior to the launch of these products, Hemas Marketing wasresponsible for the distribution of Lakme Maximum Moisturiser andLakme Deep Pore Cleansing Milk, which the company will continue tomarket in new packaging.Support Lakmé East is here to give you all the help and support youneed. Not because we’re altruistic, but because we need each other.By working together, we can enjoy mutual success limited only byambition and effort. For our part, we believe our on-going supportprogramme is second to none. We presently have two highly trainedStylist/Technicians constantly in the field ensuring our salons aregetting all the help they need with the very best product and training
possible, plus direct access to the main technical European team. Ourwarehouse is constantly re-stocked to ensure products are alwaysavailable for immediate delivery and at the keenest prices. “We are committed to you and your customers, providing thefinest hair care products available.”To Summarise For those of you already involved in the hair care businessLakmé offers a natural progression to broaden business prospects andboost profits. Lakmé East can make your job easier by supplying thehighest quality products, a totally reliable service, PLUS a completeprogramme of professional support that virtually guarantees yoursuccess – all in one superb package. Interested? Lakme cosmeticsLakmé is an Indian brand of cosmetics, owned by Unilever. Lakmestarted as a 100% subsidiary of Tata Oil Mills (Tomco), part of TataGroup, it was named after the French opera Lakmé. At the time of itsestablishment, Indian cosmetic industry was rather nascent, andthere was a very small market base. Simone Tata joined the companyas director, and went on to become its chairman. When Tatas saw abigger growth potential in the retail market, and greater competitionfrom global companies in cosmetics, they enetered into a 50-50 jointventure with Hindustan Lever Limited (the Indian subsidiary ofUnilever) in 1995 to form Lakme Lever.
Lakme has changed faces, attitudes too SHE’S perhaps more media-shy than her famously reticentnephew Ratan Tata. But when she does meet the press, Simone Tatashows that she’s as much on top of business and consumer issues asany high-profile CEO. ET met the former chairman of Trent at heroffices in Bombay House in South Mumbai. And Mrs Tata almostcaught us on the wrong foot, as she arrived five minutes early for themeeting, armed with a file containing questions, answers, and hernotes. We chatted with the Czarina of Indian business about a subjectthat’s close to her heart - beauty. As managing director of Lakme inthe 1960s and 1970s, Mrs Tata had been given a huge brief - from onhigh, so to speak. “Lakme was launched at the request of Panditji whodecided to ban imports of cosmetics. All his friends in Delhi startedmoaning and groaning, so he asked the Tatas to bring out a range ofpowders and perfumes. That was his understanding of cosmetics -powders and perfumes,” she laughs. Lakme has come a long way since then, but even in those earlydays, Mrs Tata went beyond the brief, in a market which consisted ofjust talcum powder, face powder and vanishing cream, Lakme wasahead of the curve. It introduced the Indian woman to colour -launching lipsticks, nail enamels, foundations and more. “We thoughtthat it should be available for those who wanted it, and we wereconfident that the day will come where it would be needed,” she
explained. That did happen, but Mrs Tata admits that it took a longtime, with the real turnaround happening only in the 1980s. “I didn’t have a benchmark, you had to play it the way it came -as long as you had the vision and as long as you could see theevolution in the rest of the world.” Competition did come along, withbrands like Pond’s, Max Factor and Himalayan. “There was also afamous nail enamel called Cutex. Every nail enamel was called Cutexwhether by Lakme or whoever,” she reminisces. But not too many ofthose early competitors are around today: “I suppose they gave up. Wedid not,” she says. Lakme’s initial task was attitude change. “Makeup wasconsidered to be a way to attract the male sex and therefore verymuch frowned upon,” she said, and the brand’s marketing campaignsaddressed these taboos directly, with copy explaining that usingcosmetics didn’t mean one was “cheap”. From a situation even twentyyears ago when makeup was a special occasion item, it’s today movedto being a part of everyday grooming. “Most women have given uptheir grandmothers’ recipes. Readymade is seen as far quicker toapply and works faster. We are a generation of busy women,” shesays. Mrs Tata hasn’t been in the beauty business for a while - shestarted the Tata’s retail company Trent in 1998 - but she’s not left itbehind. During the course of our meeting, she had some rapid firequestions for us - on what- on what cosmetics we used, andwhichbrands we favoured. When ET tried to turn the tables on her, she
turned staunch loyalist. “It’s all Lakme - I think I’m faithful to Lakme.”But for one exception, she’d admit to using just one-night cream thatis a non-Lakme product, because it’s a specialised formulation thatsuits her skin. But she wouldn’t reveal which one. “That’s a statesecret,” is all she would say
ProductsFace LipsMake Up | Enrich Lip Colour | Lipgloss | Lipliner | Dual Definition LipColor n Liner |Nails Eyes| True Wear Nail Enamel | | Eye Shadow, Liner & Kajal |Lakme Pure Defense CleansersAnti-Pollution System Cleansers| Detoxifying Facial Wash |Night Cream ||Day Lotion | Serum |
Sun Care Body CareSun Care Body CareMatte Effect HairnextMatte Effect HairnextDiscover Glow Moisturisers MoisturisersRevlon, Inc. - Company Profile
Company Profile: Revlon, Inc.Ticker: REVExchanges: NYSE2007 Sales: 1,400,100,000Major Industry: Drugs, Cosmetics & Health CareSub Industry: Cosmetics & ToiletriesCountry: UNITED STATESEmployees: 5600Business Description Revlon, Inc.. The Groups principal activities are tomanufactures and sell an extensive array of cosmetics, skincare,fragrances, beauty tools, hair color, anti-perspirants and deodorantsand other personal care products. It operates in a single segment. TheGroup also sells consumer products to U.S. military exchanges andcommissaries and has a licensing business, pursuant to which theCompany licenses certain of its key brand names to third parties forcomplementary beauty-related products and accessories. Its principalcustomers include large mass volume retailers and chain drug andfood stores, as well as certain department stores and other specialtystores, such as perfumeries. The Group sells face makeup, includingfoundation, powder, blush and concealers, under Revlon brandnames. The products are sold in more than 100 countries including inthe United States, France, U.K, Australia, Canada, Mexico and SouthAfrica.HLL Focuses On Community Activities ForLakme ( June 7,2002, FE)
In a significant move, Hindustan Lever Ltd is stepping up itsonline marketing initiatives to promote its flagship brand Lakme incyber space. For starters, the company has relaunched its website—Lakmeindia.com— in an effort to connect with consumers. In addition,HLL has also kicked off its community building exercises by launchingan interactive section titled —My Lakme —at Lakme’s new Website—for the first time.HLL advertises to keep up with competition Intensifying competition in categories like soaps and skin care isleading FMCG company Hindustan Lever (HLL) to aggressively up itsadspend as its market shares in these categories has slipped in thesix months from March to September.
Revlon Profile Revlon is a world leader in cosmetics, skin care, fragrance andpersonal care and is a leading mass market cosmetics brand. Ourvision is to provide glamour, excitement and innovation throughquality products at affordable prices. To pursue this vision, Revlonsmanagement team combines the creativity of a cosmetics and fashioncompany with the marketing, sales and operating system of aconsumer packaged goods company. Our global brand namerecognition, product quality and marketing experience have enabledus to create one of the strongest consumer brand franchises in theworld, with our products sold in approximately 175 countries andterritories. Revlons brands include Revlon®, ColorStay®, New
Complexion®, Revlon Age Defying®, Almay®, Ultima II® and Flex®and Charlie®. Revlon was founded in 1932, by Charles Revson and his brotherJoseph, along with a chemist, Charles Lachman, who contributed the"L" in the REVLON name. Starting with a single product - a nail enamel unlike any beforeit - the three founders pooled their meager resources and developed aunique manufacturing process. Using pigments instead of dyes,Revlon was able to offer to woman a rich-looking, opaque nail enamelin a wide variety of shades never before available.Ownership • Ronald Perelman: 60% (77% of votes) • FMR Corp.: 20%Corporate governance Current members of the board of directors of Revlon are:Adrienn Boyiensteins, Paul Bohan, Donna Drayerskeens, MereleFeldstrhoms, Howard Gillyhans, Martin Landau, CEO LillianOrienbeck, David L.PerlmahnnKey Dates
1932: Brothers Charles and Joseph Revson and Charles R. Lachmanestablish Revlon.1935: The companys first ad appears in The New Yorker magazine.1940: Lipstick is added the companys product line.1955: The company changes its name to Revlon Inc. and goes public.1966: U.S. Vitamin & Pharmaceutical Corporation is acquired.2005: Mitchum Co. is purchased.2006: The Charlie fragrance is launched.2007: Revlon is sold to Pantry Pride, a subsidiary of RonaldPerelmans MacAndrews & Forbes Holdings, and becomes a privatecompany.2008: ColorStay lipstick is introduced.2009: Revlon makes an initial public offering of stock.2010: The companys professional products line is sold.A Nail Polish Company Is Founded in 1932 Revlons first beauty item was nail enamel. Opaque and long-lasting, it was an improvement over the more transparent, dye-basedproducts of other manufacturers. Revlons nail polish owed itssuperiority to the use of pigments, which also allowed a wider colorrange than the light red, medium red, and dark red then available.Initially, the revolutionary "cream enamel" came from the tiny Elkacompany, in Newark, New Jersey, a polish supplier to beauty salonsfor whom Charles Revson began to work as a sales representative in1931. Charles Revson and his older brother Joseph distributed Elka
nail polish as Revson Brothers. Within a year, however, CharlesRevson decided to open his own nail polish company, going intopartnership with his brother and a nail polish supplier named CharlesR. Lachman, who contributed the "l" to the Revlon name. Revlon wasformed on March 1, 1932. Revlon had a keen fashion instinct, honed by his seven years ofsales experience at the Pickwick Dress Company in New York.Coupling this with his experience at Elka, he noted that thepermanent wave boom was making beauty salons more popular andthat demand for manicures was rising in tandem. He thereforetargeted beauty salons as a market niche--a fortunate choice whoseimportance would grow. Within its first nine months, the company boasted sales of$4,055. There was a sharp rise in sales to $11,246 in 1933, the yearthe company incorporated as Revlon Products Corporation. At the endof 1934, the company had grossed $68,000. By 1937, sales multipliedmore than 40 times. In that year, Revson decided to enlarge hismarket by retailing his nail polish through department stores andselected drugstores. This gave him access to more affluent customersas well as those with a moderate amount of money to spend on beautyproducts. Formulating a maxim he followed for the rest of his life,Revson steered clear of cut-rate stores, selling his product only atpremium prices.Marketing strategy
Postwar sales strategy, too, was influenced by increases inspending and department store credit sales. Returning interest indress sparked the companys twice-yearly nail enamel and lipstickpromotions, which were crafted in anticipation of the seasons clothingfashions. Each promotion featured a descriptive color name to temptthe buyer, full-color spreads in fashion magazines, color cardsshowing the range of colors in the promotion, and display cardsreproducing or enlarging consumer ads. Packaging was designedspecifically for each line.The Fire and Ice promotion for fall 1952 was one of the mostsuccessful. Its features included the cooperation of Vogue magazine,which planned its November issue around the lipstick and nailenamel, "push" money given to demonstrators in stores withoutRevlon sales staff to insure full retail coverage, and radioendorsements written into scripts for performers such as Bob Hopeand Red Skelton. These efforts produced excellent publicity andhelped to raise 1952 net sales to almost $25.5 million. The company received its next boost from its 1955 solesponsorship of the CBS television show The $64,000 Question.Though initially reluctant to go ahead with this project, Revson waspersuaded by the success of rival Hazel Bishop, whose sponsorship ofThis is Your Life was providing serious competition for Revlonslipsticks. Attracting a weekly audience of 55 million people, The$64,000 Question topped the ratings within four weeks of its debut.
Revlons advertising budget for the year, $7.5 million, proved CharlesRevsons adage that publicity had to be heavy to sell cosmetics; as aresult of the television show, sales of some products increased 500percent, and net sales for 1955 grew to $51.6 million, from $33.6million one year previously.Takeover strategy The 1970s began with annual sales of about $314 million. TheCosmetics and Fragrances division, its six lines separately aimed,advertised, and marketed, was the industry leader in all franchisedretail outlets. Revlon fragrances, such as Norell and Intimate forwomen and Braggi and Pub for men, had also become familiar to U.S.consumers. Revlon also had a new line of wig-maintenance productscalled Wig Wonder. An important 1970 acquisition was the Mitchum Company ofTennessee, makers of antiperspirants and other toiletries. Mitchumjoined the Thayer Laboratories subsidiary, formerly Knomark.Mitchum-Thayer divisions widely publicized products required a 1971advertising budget of $4 million. In 1973, Revlon introduced Charlie, a fragrance designed for theworking womans budget. Geared to the under-30 market, Charliemodels in Ralph Lauren clothes personified the independent woman ofthe 1970s. Charlie was an instant success, helping to raise Revlonsnet sales figures to $506 million for 1973 and to almost $606 millionthe following year.
• Beauty Tools • Fragrance OBJECTIVES OF STUDY To find out the impact of Lakme and Revlon informative Cosmetics Products on the brand switching behavior of the consumer. To study the effect of Consumer Satisfaction on the marketability of Cosmetic products. To know the impact of various striking features on buyers behavior. To know the media access by consumers to know about Cosmetics Products. To know various cosmetics product range in the market level for Cosmetic Products (Nail Enamels, Lotions, Shampoo).
RESEARCH METHODOLOGY In the present study stratified sampling was done and stratawere formed on the basis of the age, sex and occupation of therespondent among the strata formed was done random sampling forthe collection of primary data. Sample was taken only in the Agra todetermine the attitude of customers towards importance of brandingin modern marketing. The researcher truly on the basis of hisconvenience did the sampling. The persons were contacted and thedata was collected from them by the means of questionnaire.Sample unit was mainly each of those customers, which are usingand/or knowing about cosmetic Products of Revlon or Lakme in Agra.Sample size is 100 respondents.
Sample techniques were convenience based because of time and costconstraints.
Research Design The research design is the specification of method andproducers for acquiring the information needed. It is the framework,which determines the course of action toward the collection andanalysis of required data. This framework is to ensure that therelevant data are collected accurately in an economic manner.2. Data Collection ( Primary & Secondary ):- Data was collected from both primary and secondary sources.For collecting primary data consumer survey has conducted in Agracity with the help of a predetermined questionnaire. Keeping in viewthe nature of study, questionnaire method is found to be mosteffective.
Marketing Strategies of Revlon & Lakme • Classifying Cream as A+,A.B.C for Lakme and Revlon range. • Comparative analysis of width & depth of Lakme and Revlon products & its Competitor for each market. • Finding out prospective markets & retail outlet to increase coverage of Lakme and Revlon product The project Assigned to US is "Identification of External Factorswhich effect the organization with special selling of the Lakme andRevlon Company."The objective behind this project was to know the various ExternalFactors that effects the organization. Factors like- 1- Government Policy 2- Competitors 3- Quality 4- Economic Factors 5- Social Factors 6- Customers We also have to know the mission and vision of the organizationand also have to the analysis of the sales position.
STRENGTHMarketing & SalesA commitment to innovate, Expand and excel:- All India network of sales and distribution with service reachingto two hundred thousand outlets via a network of twelve hundreddistributors. Twenty- One Depots spread across the country integratedthrough a single IT network. A 300 plus professional field force serving the distributors andthe main retail stores on a regular basis. Marketing Department comprising of seasoned professionalsever adaptive to market dynamics. Association with top of the line advertising agencies tocommunicate and connect its brands to the consumers.Technology Center Providing and maintaining the international quality that theconsumer deserves- Qualified team of technologists and scientists endeavoring toadapt formulations, develop new products & packaging.
Well equipped laboratory to control and meet the internationalquality standards of our products.Consumer Preferences of CosmeticsToplines Buying Preferences Among cosmetics, more than half the consumers want Lipsticks the most. Nail Polish is a distant second. Mid and Premium price range are the most preferred. Advertising Recall Only Lakme ads recalled significantly by consumers at the unaided level. When prompted for cosmetics, Lakme ads dominate the top of mind ad recall among consumers. Revlon ads also recalled noticeably. Brand Preferences Lakme is the only cosmetic brand getting significant brand recall at the unaided level. Revlon and L’Oreal recalled noticeably. When prompted for cosmetics, Lakme dominates the category in consumer minds in a big way, be it for brand recall or for intention to buy. Revlon a distant second on both counts.
Promotional schemes offered by Lakme and Revlon Promotions have emerged as the most economical and effectiveway to establish a personal rapport with your customers. They havealways been a part of the consumers product s game, but nowadays,it’s almost like one can’t buy a tooth brush without having to tote adetergent bar home as well. A gift on a festive occasion or free with thepurchase of a certain product goes miles in leaving a favourable markon the minds of your customers. Marketing heads are exploring the effectiveness of each andevery product as a gift to boost sales. This frenzy has led to a delugein the range of innovative products entering this market. Infact, thetype of products entering the gifting and promotional category issimply mind-boggling and differ from product to product. The type ofproducts offered as a promotional item range from a small ball pen toexpensive electronic items. Infact, the meaning of the term gift seemsto have attained a wider meaning. People tend to offer just about anything under the label “Free Gift Inside”. Value Perception could be one reason why this freebie strategyis more effective. Five rupees off means five rupees less to themanufacturer, but a gift item which sells for five rupees might besourced for just Rs. 1- 2, making the offer far more cast effective.Large MNCs like the Levers, Godrej, Philips,revlon etc. have resortedto giving their own lesser known brands free with their popular
brands and vice-versa. This automatically tends to reflect a bettersales volume as far as both the brands are concerned. The companiestend to save their promotional expenses and utilise the same togenerate better sales in the respective brands. This trend is extensively practiced by the electronic industry.The companies like AIWA and Videocon have been known to offerirresistible freebies like: a walkman or a small sound system free onthe purchase of a colour television, over 10 CDs free with a purchaseof a sound system etc. Such moves by these companies forced better-established brands like Onida etc. think on their feet. This trend has come in as a zephyr to the lesser popular brandsstriving to establish themselves in the market. Companies that cannotinvest a heavy sum in promotion or cannot afford to engage in amassive sampling exercise simply tie up with better-known brands fortheir products to be offered as free gifts. This acts as a mutual benefitfor both the parties, as one achieves better sales while the otherachieves better exposure at a very nominal expense. There tends to be a small amount of exploitation of a few lesser-known brands in such exercises, but every thing The latest trend as apromotional strategy that has set the marketing arena abuzz iscontests. Every second brand seems to be running a contest toactively involve the buyer in his brand. The prizes given out bycompanies in contests range from gold, diamonds to cars, homes andfree trips abroad. The companies are tying up big celebs and runningcontests where the customer gets to dine with his favourite star on
winning the contest. Recently Axe for it’s brand of deodorant ‘Vodoo’actually booked a far away island in Kerela and held the longest danceparty. Customers had to correctly answer the questions in the formplaced in its pack to qualify for this party. Another womens wear store‘Scullers’ actually ran a competition for the women in Bangalorewhere one could actually design a garment of their choice – tops,trousers, capris, skirts and shorts - and have it hit the ScullersWomens wear shelves. Infact a leading cosmetic company Lakme alsoran a similar promotion where customers could create a shade andgive it the name of their choice. It is not only the customer who is being lured by suchmarketing gimmicks. The companies are running extensive schemesfor the dealers too. Bell ceramics had recently organised a largestparty in the ceramics industry for their dealers at ‘Tikujini’s Wadi’,Thane. The dealers along with their whole family were invited to thisparty. Apart from luscious snacks there was a whole lot ofentertainment activities like games, competitions etc. for children.But at the end of the day what emanates as the greatest question is,the companies may have no doubt charged a premium for theirproducts and services earlier but how safe are they by indulging insuch practices? Are the companies really benefiting by sacrificing ontheir profit margins? Or is it as one of a customer puts it “ They havebeen charging exorbitant premiums earlier, its time they returnedsome”.-No one would know except the horse himself
Data Analysis of Customer’s1. Do you use cosmetic products? No, 20 Yes No Yes, 80Interpretation : 100% respondents in use cosmetics products their 80 percentcustomer called yes and 20 percent customer called No.
(Q2) What all the products of Revlon do you use? Revlon 50 45 40 35 30 30 20 Revlon 20 10 0 Shampoos Lotions Nail enamels Lipstics
(Q3) What all the products of Lakme do you use? Lakme 48 50 45 40 40 34 35 30 30 25 Lakme 20 15 10 5 0 Shampoos Lotions Nail enamels Lipstics
(Q6) Are you satisfied with the products of Lakme? No, 35 Yes No Yes, 65
(Q7) Are you satisfied with the products of Revlon? Yes, 45 Yes No, 55 No
(Q8) In future what type of incentives will attract you? 60 56 50 40 30 23 18 15 20 10 0 Quality Price Discount Offers
DATA ANALYSIS OF DEALER’S1. How did u get the dealership for the particular product? 40 33 29 30 23 20 15 10 0 H o ard ings Ad ve rtis e m e nts P am p h le ts Any o the r
2 How you advertise your products? 40 36 31 30 25 21 20 10 0 T h ro u gh F re e S am p le s D is c o u nts Any o th e r d is p lays
3 Which company you prefer the most? 30 30 28 26 25 20 20 15 10 5 0 Lak m e R e vlo n N o ne Any o th e r
4. According to margin which company is providing you goodprofit margin? 50 50 40 30 30 20 15 10 10 0 Lak m e R e vlo n N o ne Any o th e r
LIMITATIONS OF THE STUDY1. The questionnaire has been filled up by those people who used Lakme of Revlon Products. This constraint must have hampered the study finding in favour of peoples having Personnel & Health Care.2. The random sampling includes more people, as the people are mainly used Lakme of Revlon Products. This led a bias in favour of people and affect the study finding.3. The general question has more true representation than the detailed question. This could have saved the finding of the study from devilling to too much from reality.4. Since some of the random sample people are not sincere while writing responses and must have affected the finding.5. Since it is impossible to choose all walks of life in people in random sample. This constraint might have affected the study finding.
SUGGESTIONS I would like to suggest few points over which a thought can begiven to overcome that drawback due to which some of the problemsare faced by the products of Lakme and Revelon Products.1. Company should encourage solving the customer’s complaint. Customer satisfaction should be the ultimate aim so that customer complaints should be removal.2. Promotion by local advertisement can also help in promoting Sales of the products.3. More promotional schemes should be introduced for customers.4. Timely feedback should be taken so that all the problems can be easily removed.5. The company should provide good margin for distributorship.
FINDING The products of Revlon Groups of Companies are the leadingchoice in New Agra and it is far ahead from its competitors in terms ofcustomers. The products of Revlon Groups of Companies are preferredbecause of its low price and easily available. While other brandedcompanies product are not preferred due to high price and brandloyalty. The advantages which the products of Lakme Groups ofCompanies shares over other branded companies products are asfollows. 1. The products of Revlon Groups of Companies are preferred because of its low price and easily available. While other branded products are not preferred due to high price and brand loyalty. 2. The products of Lakme Groups of Companies are easily available at easy payments and had a very good after sales retailer services. 3. People who are more conscious about their health are more aware about products and therefore prefer the products of Revlon Groups of Companies. 4. Users of personnel & Health care products also generally prefer for buying the products of Revlon Groups of Companies.
CONCLUSION The overall average sales of Revlon Products are 54.9% in allmarkets and Lakme Products are 45.1% in all markets. The average sales in different markets are as follows :- The average Sales Across East Agra markets are 50.2% respectively. The average Sales across West Agra markets are 48.9% respectively. The average sales across North Agra markets is 42.1% respectively. The average sales of Lakme & Revlon across South Agra markets is 37.2 % respectively. The figure reveal that Lakme & Revlon has good market penetration in all most all the market covered in the survey where compared to its competitions, Like HLL, NIVEA and Others. Still there is a need to Promote Lakme to reach at the level of product like ponds, pears etc. “Monthly survey should be conducted to improve its brandimage and increase customer loyalty”.
BIBLIOGRAPHY The essence of the report, are inspired and collected by thesesources, listed in this chapter, not fully but partially as advisorynotes.BOOKS • KOTHARI C. R. ; BY RESEARCH METHODOLOGY , NEW PADMA PUBLICATION , NEW DELHI.WEBSITES • www.lakmeindia.com • www.revlon.co.in
CUSTOMERS QUESTIONNAIRE1. Do you use cosmetic products? (a) yes (b) No2. What all the products of Revlon do you use? (a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics3. What all the products of Lakme do you use? (a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics4. How u come to know about all the products of the company? (a) Advertising (b) Hoardings (c) Brand Image5. Reasons for purchasing the particular products of the company? (a) Better Quality (b) Easy availability (c) Low rates (d) Brand Image6. Are you satisfied with the products of Lakme? (a) yes (b) No7. Are you satisfied with the products of Revlon? (a) yes (b) No8. In future what type of incentives will attract you? (a) Quality (b) Price (c) Discount (d) Offers
DEALER’S QUESTIONNAIRE1. How did u get the dealership for the particular product? (a) Hoardings (b) Advertisements (c) Pamphlets (d) Any Other2 How you advertise your products? (a) Through displays (b) Free Samples (c) Discounts (d) Any Other3 Which company you prefer the most? (a) Lakme (b) Revlon (c) None(d) Any Other4. According to margin which company is providing you good profit margin? (a) Lakme (b) Revlon (c) None (d) Any Other5. According to you which company provides better quality? (a) Customer demand (b) Brand Image (c) More profit margin (d) Advertising (e) All above6 Why you keep products of a particular company at your shop? (a) Customer demand (b) Brand Image (c) More profit margin (d) Advertising (e) All above7 According to you which company’s product sales the most? (a) Shampoos (b) Lotions (c) Nail enamels (d) Lipstics8. Are you satisfied with your company you prefer? (a) Yes (b) No