Project report-on-lakme

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  • 1. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Research Report on Lakme (A Product of Hindustan Unilever Ltd)www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 2. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CONTENTS EXECUTIVE SUMMARY 1. INTRODUCTION 2. CRITICAL REVIEW OF LITERATURE 3. RESEARCH METHODOLOGY 3.1 OBJECTIVE OF THE STUDY 3.2 HYPOTHESIS 3.3 RESEARCH DESIGN 3.4SAMPLE DESIGN 4. INDUSTRY PROFILE 5. DATA,FINDING & ANALYSIS 6. RECOMMENDATION & CONCLUSION 7. BILIOGRAPHY 8. REFRENCESwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 3. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Executive summaryAbout the projectWithin a short span of the last five-six years, the use of cosmetics byIndian consumers has increased significantly with more and morewomen and men taking greater interest in personal grooming, increasingdisposable incomes, changing life styles, influence of satellite televisionand greater product choice and availability.This cosmetics and personal care industry has been growing at anaverage rate of 20 per cent for the last few years. The growing Indiancosmetics market offers promising prospects for international brands.The growth rate in the cosmetics market reflects an increasing demandfor beauty care products in India. Perfumes and fragrances, skin care,and hair care products are some of the major segments with promisingprospects 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 urban population with increasing purchasing power is the majorforce driving demand for cosmetics and toiletries. India is a very price-sensitive market and mass-market products constitute the major part ofwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 4. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.the cosmetics and toiletries market. India’s import of cosmetics andtoiletries and intermediate raw materials is around US$ 120 million,of which the U.S. has a share of approximately 10 percent.Plan of the projectBeauty is skin deep… and sure enough Lakme understand it like no onedoes .Today brand lakme stand strong as one of the 100 most powerfulbrands and right fully so ,for it’s ‘the’ brand that lights up the face ofmillion girls ,everyday. It’s a brand that inspire, motivate and infusesconfidence Colours , shades, brushes and tones to beautify , have beenthe core attribute of the products. The challenge which the cosmeticindustry has to break was the negative connotation of “beingfashionable’’.Though the brand missed out on during the past yeardespite having roped top brand ambassadors is that it scored low onpromotional gauge. In the following project we basically seeks toprovide experiential marketing solutions to a brand (Lakme) .We alsogauge into reasons that why Lakme’s position as market leader wasthreatened when international majors like Revlon and Maybellineentered the fray in the mid-90s.The research process was entailed byvisiting lakme outlets in noida ,which includes the response receivedfrom target audiences(Min age 19yrs- Max -45yrs) via throughquestionnaire for deeper insights.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 5. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.CHAPTER 2- CRITICALREVIEW OF LITERATUREwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 6. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 7. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 8. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 9. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Below the line initiatives are extremely important in the cosmeticsegment since the buying experience is as important as brand image andadvertising. Significant focus is on sales counters, beauty advisors anddealer aids. We constantly integrate a lot of the above the linecampaigns like Whose watching your lips with below the line initiativesAnil Chopra, Business Head, Lakme LeverLakmé is at the forefront of product-innovation. Almost everyone has aLakmé-something in their (cosmetics) collection, said Mumbai-basedfashion choreographer Lubna Adams.The Indian cosmetics industry is in churn. Even as the premium segmentis getting crowded, the rural market is turning out to be the strongholdof smaller, regional players. Although stiff competition has emerged forLakme Lever within the Rs 250-crore colour cosmetics market, itcontinues to lead. In the skincare market, estimated at Rs 700 crore,Lakmes market share averages 7-8 per cent. Catalyst spoke to AnilChopra, Lakme Levers Business Head.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 10. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 11. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose..www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 12. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 13. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 14. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. INTRODUCTIONwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 15. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.High priestess of sacred Indian temple meets English army officer whosunwittingly strayed into holy ground. They fall in love. Her orthodoxfather vows vengeance... Thats the story of Lakmé, a 19th century operawritten by Frenchman Leo Delibes, from which Simone Tata borrowedthe name Lakmé (French for Lakshmi, the name of the priestess).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 sourcesestimate a rapid growth rate of 20 percent per annum across differentsegments of the cosmetics industry reflecting an increasing demand forall kinds of beauty and personal care product. Growth has come mainlyfrom the low and medium-priced categories that account for 90 percentof the cosmetics market in terms of volume.Even with a 20 percent average growth rate, the per capita consumptionof cosmetics is very low in India. Current per capita expenditure oncosmetics is approximately US$ 0.68 cents as compared to US$ 36.65 inother Asian countries. However, with changing lifestyles, higherdisposable incomes, increasing advertising, penetration of satellitetelevision, awareness of the western world and growing importanceof beauty pageants, there have been significant changes and use ofcosmetics is on the rise.Lakme, a brand originally introduced by the Tata group of India, nowbought over by Hindustan Unilever (HUL) of the Unilever group, Tips& Toes, another domestic player, and Revlon dominate the US$ 60million color cosmetics market. Multinationals, Revlon of the U.S. andLOreals Maybelline has a dominant share of the small premiumlipsticks and nail enamels market. Mass-market products account for amajor share, 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 for nailenamels is estimated at around US$ 23 million. The color cosmeticswww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 16. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.segment is very competitive and has a high penetration level of 80percent.The skin care market in India is estimated at US$ 180 million. Withinthe last decade, this segment has seen many consumers slowly shift fromthe mass to the premium end of the market. The penetration rate ishigh in the skin-care segment as compared to color cosmetics. In theskin-care segment, price and volume played an equal role in valuegrowth. Moisturizing lotions, fairness creams and face cleansers are thepopular categories in the skin-care segment and account forapproximately 60 percent of the skin-care segment. The major players inthis segments are Lakme, Ponds, Fair & Lovely of the HUL group with a50 percent market share, followed by players such as J.L. Morison thatmarkets the Nivea range of products in India, Godrej and Revlon.Penetration levels of international cosmetics brands in India are still low.Foreign brands currently constitute only 20 percent of the market. Amajor reason for low penetration of international brands can beattributed to high pricing. These companies initially gained sales on theirinternational brand image, however, repeat purchases were notforthcoming and to retain their sales growth, several foreign companiesreformulated price strategies to tap the large Indian middle class. Urbanwomen in the middle and upper income groups in the age range of 23-50is the target group for international brands, as this group looks for betterproducts and is willing to pay a premium for international qualityproducts. Industry estimates suggest that there are close to 10 millionsuch women in India.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 17. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Chapter 3 RESEARCH METHODOLOGYwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 18. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.The research is based on:-Primary Data 1) QuestionnaireSecondary Data  Internet  Company Reports& Broachers  Magazines  Newspapers Articles &journals Data is also gathered by talking to the respondents (Target Audience,understanding their beauty needs,what aspire them to go for the(lakme)brand. Also the level of :-  Brand awareness,  Price level,  Visibility of brand personality.  Expectancy of CommunicationAll these factors were the prime criterion for selecting (Which brand??),Short listing and ranking (level of trustworthiness? or most favoured )which had helped us for identifying the winner in cosmetics industry.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 19. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Objective 1 Help in building a positive association with people thereby enhancing brand personality 2 How to break the negative connotation of ‘’Being fashionable’’ 3 Why has Lakme missed out on promotional gauge despite roping in top brand ambassadors. 4 How can the brand retain its lost spot?HYPOTHESISIn the classical tests of significance, two kinds of hypothesis are used thenull hypothesis and the alternate hypothesis. Null hypothesis ( Ho) isused for testing. It is the statement that no difference exists between theparameter and the statistic being compared. Second is Alternativehypothesis(HA) is alternative hypothesis is alternative hypothesis which holds thatthere has been a change.Hypothetical testing can be viewed as a six steps procedure; • Establish a null hypothesis • Choose the statistical test on the basis of assumption about the population distribution and measurement level • select the desired level of significance • Parametric and non parametric tests are applicable under various conditions like parametric operates with the interval and ratio datawww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 20. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. and are preferred when their assumptions can be met. Non parametric tests do not require stringent assumptions about the population distribution and are less useful with less nominal and ordinal values.In this report our null hypothesis and alternative hypothesis are statedbelow: • Ho: Respondents are satisfied with the quality of Lakme products. Ha: Respondents are not satisfied with the quality • Ho: Respondents are brand Loyal Ha: Respondents are not brand Loyal • Ho: Respondents prefer lakme Ha: Respondents do not prefer lakme • HO: Respondent are satisfied nor aware of new product range H: Respondent are not aware of new range. • HO: Respondent do believe that endorsement by celebrity play any role in the decision making HA: Respondent do not believe that endorsement by celebrity play an important role in the decision makingwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 21. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.RESEARCH DESIGNOur research is based on the Exploratory Study.Research is exploratory when you use no earlier model as a basis of yourstudy. The most usual reason for using this approach is that you have noother choice. Normally you would like to take an earlier theory as asupport, but there perhaps is none, or all available models come fromwrong contexts.Exploratory research means that hardly anything is known about thematter at the outset of the project. You then have to begin with a rathervague impression of what you should study, and it is also impossible tomake a detailed work plan in advance.The gradual process of accumulating intelligence about the object ofstudy means also that it will be impossible to start by defining the concepts ofstudy. You have to start with a preliminary notion of your object ofstudy, and of its context. During the exploratory research project, theseprovisional concepts then gradually gain precision.We have collected our data by drafting a questionnaire and therebyinterpreted or analyzed or result by using the Microsoft excel.Sample designwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 22. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.  The sampling procedure used to produce any type of sample  Sample size of 100 customers. Sample centre = Amity Girls hostel CHAPTER 4 COMPANY PROFILEwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 23. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Half a century ago, as India took her steps into freedom, Lakme, Indiasfirst beauty brand was born. At a time when the beauty industry in Indiawas at a nascent stage, Lakme tapped into what would grow to beamongst the leading, high consumer interest segments in the IndianIndustry - that of skincare and cosmetic products. Armed with a potentcombination of foresight, research and constant innovation, Lakme hasgrown to be the market leader in the cosmetics industry. Lakme todayhas grown to have a wide variety of products and services that cover allfacets of beauty care, and arm the consumer with products to pamperwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 24. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.herself from head to toe. These include products for the lips, nails, eyes,face and skin, and services like the Lakme Beauty Salons.A little bit of Lakmé history:In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50venture Lakmé Lever that would market and distribute Lakmésproducts. In 1998, Lakmé sold its brands (and the 50 per cent it ownedin the JV) to HLL, renamed itself Trent and entered a different business(retail). Only, the years between 1995 and 2000 saw HLL wrestling withseveral issues with a bearing on Lakmés future. A brand that has over 5decades talked of beauty is none other than Lakmé. Launched in 1952, itoffered a range of cosmetics with nail polishes & lipsticks from the early80’s. Lakmé also understands the importance of maintaining andaccentuating a women’s natural beauty, for this it has introduced a rangeof skincare products from 1987. These ranges have been constantlyinnovated to bring specialized beauty care and complete the range forthe definitive women.A brand that has over 5 decades talked of beauty is none other thanLakmé. Launched in 1952, it offered a range of cosmetics with nailpolishes & lipsticks from the early 80’s. Lakmé also understands theimportance of maintaining and accentuating a women’s natural beauty,for this it has introduced a range of skincare products from 1987. Theseranges have been constantly innovated to bring specialized beauty careand complete the range for the definitive women. Chopra accepts that distribution has been the companys Achilles heelfor some time: The supply-chain hasnt been as robust as it should havebeen, but that has been the result of our efforts to reposition andreintroduce the brand. The positioning bit, although complex, is clear:www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 25. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Ponds is Levers primary skincare brand; Lakmé, its aspirational colourcosmetics brand, which also has a presence in skincare.The aspirational qualification would mean Lakmé would compete atwhat the company terms the upper-mass (premium) end of the colourcosmetics spectrum (products priced between Rs 85 and Rs 250) where aslew of competitors, ranging from Revlon (through Modi Revlon) toChambor, are already slugging it out. Says Meghna Modi, 26, ExecutiveDirector, Modi Revlon: The numbers say it all. According to ORG-MARGs retail audit, we have an 84 per cent share of the premium endof the colour cosmetics market. Chopra is quick to rubbish this claim;he says ORG-MARG does not have a representative sample of the60,000 outlets through which colour cosmetics are sold in India.Still, it is conceivable that Lakmés new-found aspirational strategycould have been brought about by competitors like Revlon andMaybelline, which targeted this segment. Indeed, the companys non-transfer lip-colour range follows in the wake of Maybellines launch of asimilar range, and its new nail-enamel colours come soon afterMaybelline and Revlon launched their nail-enamel range. Thecompanys defense is that it takes at least 15 months from theconceptualization to the actual launch of products.And fashion consultants like Meher Castelino believe the brandcommands an edge at the high-end: By appropriating the fashionplatform for itself, Lakmé has entrenched itself at the glamour-end.SWOT ANALYSIS Of LAKMEStrengths :  local brand of specific relevance to India.  Strong R&D capability, well linked with business.  Integrated supply chain and well spread manufacturing units.  Ability to deliver Cost Savings.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 26. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.  Access to Unilever global technology capability and sharing of best practices from other UnileverWeaknesses :  Price positioning in some categories allows for low price competition.  Varying quality range in its products.  Falling Quality of Lame salonsOpportunities :  Brand growth through increased consumption depth and frequency of usage across all categories.  Upgrading consumers through innovation to new levels of quality and performance.  Building brand image by collaborating with top designers in Lakme Fashion weekThreats :  Aggressive price competition from local and multinational players.  Spurious/counterfeit products in rural areas and small towns.  Non Existence of brand image in long RunEverything a girl wantsLakmé has a wide range of products in color cosmetics that bring visibleresults. To add to this vast repertoire is a range of specialized skin carewww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 27. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.products for the discerning women. Keeping skin looking healthy andglowing is also a part of looking great. Lakmé provide the completepackage with the skin care range and the wide range of colors to spiceup the look.Lakme productsColoursFrom the spicy shades to the flattering look, Lakme offers a range ofproducts in the face, lips, eyes and nail segment for the beautyaficionados.FaceLakmé Daily Wear Soufflé ,Lakmé Perfecting liquid Foundation -Lakmé Radiance Compact , Lakmé Flawless Matte ComplexionCompactLipsLakmé Enrich Lipcolor - . Perfecting Definition Lip Pencil - StarshineLipgloss - Glosses in lustrous shades available in 14 shades.EyesFrom dramatic to natural look- a wide range of products are on offer tocreate the perfect eyes. 1. Lakmé Kajal: 2. Lame Insta Eyeliner eyelids 3. Lakme Lakmé Shimmer Eye Cube:www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 28. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.NailsTrue Wear Nail Enamel -Nail Enamel with Lacquer-like finish. Containsresins and silicone with colour lock technology that gives brilliant longlasting shineSkinFor radiant skin Lakmé is there to pamper your skin with specializedproducts for the diva in you.CleansingStrawberry Silk Splash Face Wash , Lakmé Fundamental Deep PoreCleansing Milk -Moisturizing1. Lakmé Fundamental Peach Milk Moisturiser skin.2. Lakmé Fundamental Winter Care Lotion -Sun ProtectionThe range comprises of lotions to keep your skin healthy and youngerlooking.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 29. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER 5 INDUSTRY PROFILEwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 30. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Hindustan Unilever Limited Chairman: Harish Manwani CEO and Managing Director: Douglas (Doug) Baillie Director, Finance and IT: D. SundaramHindustan Unilever Limited (abbreviated to HUL), formerlyHindustan Lever Limited , is India’s largest consumer productscompany and was formed in 1933 as Lever Brothers India Limited. Itis currently headquartered in Mumbai India and its 41,000 employeesare headed by Harish Manwani, the non-executive chairman of theboard. It is Fast-Moving Consumer Goods (FMCG) Industry thatincludes detergents, soap, shampoo deodorant, toothpaste, and otherpersonal care items, and cosmetics HULs personal care brands includesoap brands such as Lux, Lifebuoy, Liril, Breeze, Dove, Pears, andRexona; shampoos and hair coloring brands including Sunsilk Naturalsand Clinic; skin care brands Fair & Lovely and Ponds; and oral carebrands Pepsodent and Close-Up. The companys cosmetic line is led bythe Lakme brand. HUL also produces a line of Ayurvedic personal andhealthcare items under the Ayush brand. In addition to the FMCGsegment, HUL has developed a line of food items, primarily under theKissan and Knorr Annapurna brands, as well as the ice cream brandKwality Walls.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 31. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. VISIONTo earn the love and respect of India, by making a real difference toevery Indian.. HLL follows its parent company’s mission to “add vitalityto life”. They strive to meet everyday needs of nutrition, hygiene, andpersonal care products that help people “feel good, look good, and getmore out of life”. STRATEGY Grow ahead of the market by leading market developmentActivities Leverage positive impact of growing Indian economy onconsumer spending Grow a profitable foods and Top end business Grow the bottom-line ahead of top line Strong commitment to sustainable development DISTRIBUTIONwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 32. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.With respect to distribution related activities like sales and marketing, HLLis second to none in pushing the boundaries of what is possible financially,structurally, and logistically. Beyond its pioneering work FMCGdistribution, the company has sought to instill in its customers an elevatesense of brand experience while simultaneously providing greater and morevaried access to its products as well as improved clarity to itscommunications. New initiatives include raising brand visibility throughin-store promotions, store-based product facilitators, and self-service. HLLhas enabled an even further level of personalization and brand experience inthe direct sales arena with its ground-breaking Hindustan UniLeverNetwork, having amassed an army of consultants 250,000 strong withaccess to 80 % of city dwelling Indians.Hindustan Unilever – Present Scenario • 15,000 employees • 1,200 managers • 2,000 suppliers & associates • 75 Manufacturing Locations • Total Coverage 6.3 Mln Outlets • Direct Coverage 1 Mln outletswww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 33. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 34. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Market OverviewThe 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 sourcesestimate a rapid growth rate of 20 percent per annum across differentsegments of the cosmetics industry reflecting an increasing demand forall kinds of beauty and personal care product. Growth has come mainlyfrom the low and medium-priced categories that account for 90 percentof the cosmetics market in terms of volume.The Shahnaz and the Biotique brands dominate the premium herbalcosmetics segment in India, estimated at USD 100 million.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 35. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.. Since liberalization, many international brands like Avon, Burberrys,Calvin Klein, Cartier, Christian Dior, Estee Lauder, Elizabeth Arden,Lancome, Chambor, Coty, LOreal, Oriflame, Revlon, LOreal, Yardley,Wella, Schwarzkopf, Escada, Nina Ricci, Rochas, Yves St. Laurent andJapanese cosmetics company, Shiseido have entered the Indian market.The prices of most foreign brands have been fairly high, which hasdeterred average Indian consumers. International brands cater to asegment that can broadly be classified as the urban higher incomegroup.Market TrendsCosmetics and toiletries are not just the domain of women any longerand Indian men too are increasingly taking to the use of more and morebody sprays, perfumes and other cosmetics and toiletries. With risingdemand from men, the Indian market is getting enlarged and manyplayers are coming out with cosmetic products especially skin careproducts for men. The market size of mens personal care segment isestimated at approximately US$ 165million, with Gillette having thelargest market share. Other major players in this segment includeGodrej, J.L. Morison and HLL. The growing demand for menscosmetics have made many direct selling companies such asModicare and Amway to launch new products for men. In the last five/six years, there has been a renewed craze for herbalcosmetic and personal care products, especially in the skin care segmentwith the growing belief that chemical-based cosmetics are harmful.Shehnaz Hussain, Biotique, and Lotus Herbals are the major players inthis segment. Many companies also expanded their range to includeherbal variants..The urban population in the major cities with increasing purchasingpower is the main force that drives demand for various cosmeticwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 36. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.products in India. The advent of satellite television and awareness of thewestern beauty and fashion world, advertisements and promotions,increasing number of women joining the work force is changingpreferences, customs and cultures in IndiaImport MarketCosts for importing products are much higher than producing it in thecountry. 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 products veryexpensive 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 price strategiestowards the mass segment. Price is not the only reason responsible fortheir problems. Poor assessment of the size of the upper middle andhigh-income groups, and price sensitivity even within these groups, hadadded to their problems.According to estimates of industry experts and trade publications,Indias annual imports of cosmetics and toiletries and intermediateraw materials is approximately US$ 120 million. Countries like US,Europe, mainly France, Germany, Italy, Netherlands, and Spain accountfor the major share; and Australia, China, and Japan account for rest ofthe share.CompetitionThe Indian cosmetic market, which has been traditionally a strongholdof a few major Indian players like Lakme, and Ponds has seen a lot offoreign entrants to the market within the last decade. India is a very pricewww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 37. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.sensitive market and the cosmetics and personal care product companies,especially the new entrants have had to work out new innovativestrategies to suit Indian preferences and budgets to establish a hold onthe market and establish a niche market for themselves.Given the price-sensitivity of the Indian consumer who do not normallyprefer to fork out a large sum at one time, many cosmetic and toiletriescompanies launched their products in smaller pack sizes to make themmore affordable. HLL and Revlon were the first to introduce small packsizes. Revlon introduced its small-range of 8 ml nail polishes andlipsticks, and was soon followed it its strategy by major Indiancompanies as well.Stiff competition in the cosmetics and toiletries market also saw anincrease in the range of new products being introduced for newerapplication concepts in the last few years. In the skin-care segment, fromjust creams and moisturizers, there has been a upgrade to value-addedproducts such as under-eye wrinkle removing creams, dark circleremoving creams toners, sunscreen lotions, fairness creams, and manymore..Beauty counselors or advisors at retails outlets have been verysuccessful in gaining attention, creating product awareness andovercoming consumers lack of familiarity with, and fears about manycosmetics and personal care products such as home hair permanents andcolor cosmetics. Some companies such as Lakme have even set upexclusive Lakme beauty parlors at major cities in India through thefranchisee route . LOreal markets its range of specialized hair care products exclusivelythrough salons and beauty parlors. LOreal currently is the onlycompany in the market that has a hair color range tailoredexclusively for parlors..www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 38. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. A strong brand promotional campaign, good distribution network,constant product innovation and quality improvement, and theability to provide a variety of quality products are some of themajor reasons for the success of most companies.HLL, is currently Indias largest cosmetics and personal care productsproducer and its brands has the dominant share (more than 50 percent) insegments such as personal wash, skin care, shampoos, lipsticks and nailpolish.Sales ProspectsThe growing Indian cosmetics market offers promising opportunities forinternational brands. The growth rate in the cosmetics market reflects anincreasing demand for beauty care products in India. The mostpromising segments for international companies to pursue areperfumes and fragrances, and specialized/professional skin care andhair care products. The fastest growing market is however colorcosmetics, which account for US$ 60 million of the total market.The rural market in India for cosmetics and toiletries remains is largelyuntapped. Major domestic players have also not been able to penetratethis market. The urban market itself for specialized cosmetic productsremains to be fully exploited. The Indian skin-care market is not yetfully tapped and offers promising prospects as a growth area. Penetrationof color cosmetics is lower than the penetration prospects of the skin-care segment.To promote the growth of their products, a dominant player like Lakmehave embarked upon a business plan to establish their exclusivefranchised beauty salons across major metros in the country.Imported cosmetics have had a major impact on the Indian market.Foreign products have enhanced growth of the Indian market bywww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 39. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.attracting aspirational consumers and increasing acceptance of colorcosmetics, previously perceived by many as harmful to skin. Indiansgenerally perceive foreign brands as being of superior quality.Other key issues regarding sales prospects are product variety andretailing strategies as well. There is a marked shift amongconsumers from functional common-fits-all products to morespecialized formulations. This is one of the reasons why anincreasing number of cosmetic companies are dealing withconsumers directly through special exclusive counters in majordepartmental stores and malls featuring their own beautyconsultants. LOreal India has established a consumer advisory unit andPonds, as mentioned earlier offers skin care advise through touch-screenkiosks, and telephone help-lines.Market Access Prior to March 31, 1999, India had cosmetics and toiletries on itsrestricted list of imports and a special import license was required forimport of cosmetics and toiletries into the country. This regulation hasnow been done away with and, India today, permits import ofcosmetics and toiletries without any restrictions. This has made theIndian market more attractive to foreign cosmetic companies.Imports have been made easier, but not necessarily cheaper.The total import duty rate on cosmetics and toiletries classifiedunder HS Code 33.03 to 33.07 is 39.20 percent, which even thoughhas been scaled down over the past few years is still very much on thehigher side. The high duties cause imports to be price uncompetitive.Certain high - end products just do not sell in India because the finalprice to bring it into India is too high for consumers to pay.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 40. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Chapter 6 Questionnairewww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 41. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Q) Do lakme provides Quality Products?Q) Are You Brand Loyal to Lakme?www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 42. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Q) For what purpose You use lakmeproducts ?www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 43. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Q)What do you think about the price level of Lakmeproducts ?Q)If not Lakme then which Other brand ?www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 44. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Q) Do celebrity endorsements in advertisements attract youtowards Lakme products ?www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 45. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Q)What inspire you to go for any cosmetic product?www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 46. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Q)What changes you would like to see in the Lakmeproducts?www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 47. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER 7- FINDING & ANALYSIS Hypothesis Testing using Chi Squarewww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 48. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Overall Satisfaction Observed(O) Expected(E) (Oi-Ei)2 χ2 {(Oi-Satisfaction Ei)2 / }levelExcellent 16 20 16 0.8Good 20 20 0 0Average 55 20 1225 61.25Poor 5 20 225 11.25Neutral/Cant 4 20 256 12.8Say χ2=86.1 Table value=9.49 Since the table value is less than the χ2. So the Ho is rejected. Loyalty Satisfaction level Observed(O) Expected(E) (Oi-Ei)2 χ2 {(Oi- Ei)2 /E } Loyal 18 50 1024 20.48 Not a loyal 82 50 1024 20.48 www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 49. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.χ2=40.96Table value=3.84Since the table value is less than the χ2.So the Ho is rejected.AdvocasySatisfaction Observed(O) Expected(E) (Oi-Ei)2 χ2 {(Oi-level Ei)2 /E } Recommend 40 50 100 2Will Not 60 50 100 2recommendχ2=4Table value=3.84Since the table value is less than the χ2.So the Ho is rejected.Advertising/Communication effectCommunication Observed(O) Expected(E) (Oi-Ei)2 χ2 {(Oi-Ei)2level /E } Effected 17 50 1089 21.78Not at all 83 50 1089 21.78χ2=43.56Table value=3.84www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 50. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Since the table value is less than the χ2.Satisfaction Observed(O) Expected(E) (Oi-Ei)2 χ2 {(Oi-level Ei)2 /E }High 30 33.33 11.0889 0.333Low 5 33.33 802.5889 24.08Optimum 65 33.33 1002.9889 30.09So the Ho is rejected.Price Levelχ2=54.503Table value=5.99Since the table value is less than the χ2.So the Ho is rejected.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 51. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER 8 RECOMMENDATIONSwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 52. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Promotions beyond fashion week The brand should not lose its focus away from cosmetics. It can proved to very detrimental. For vast reach unlikely, in the short-term. “Some sort of an alliance or co-branding with the salons that already exist may, perhaps, have been a better strategy. The general perception is that company-owned salons are expensive. Though Lakme beauty salons are reasonably priced, it has not been communicated well enough.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 53. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER 9 -CONCLUSIONwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 54. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Since the Null hypothesis is rejected therefore it states that the customers arenot satisfied well with the lakme products . This would be the major cause oflose of market share in the country. Another reason is the upcoming ofRegional brands in the country that is making lakme loose its sheen.Therefore the company should take in strategic steps and planning to reviveits brand image accordingly.The local cosmetics and toiletries market is valued at approximately RM3billion or about US$800 million, with a growth rate of 13% annually. It isestimated that there are more than 60,000 types of cosmetic products in thelocal market. Imported products from Thailand, the United States, France,Singapore and Japan dominate the market.The local cosmetics and toiletries industry generally involves mixing andformulation processes, using imported ingredients. Many of thesecompanies are contract manufacturers, mainly for products such as shampooand conditioners, other hair care products, perfumes, and cosmetics.Advertising and promotion is crucial for cosmetics and toiletriesproducts, in order to create an awareness of new products and buildwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 55. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.brand loyalty among consumers. Advertisements in TV and the printmedia such as newspaper and magazines, especially women’s magazines,are very common. Samples of toiletries products are distributed toindividual households and products in sachet form are attached tomagazines. Free gifts are given during promotion periods and are advertisedin the local major newspapers and on the web.According to the industry, the market is saturated with many different typesof products, and in the long run, established brands that emphasize qualityand service will have the edge..www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 56. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. BIBLIOGRAPHY • Kotler Philip , Keller Lane Kevin marketing , prentice hall of India , 2005 • S.P Gupta , Business Statistics, 14th edition , 2005 • Business Statistics , J. K Sharma , edition 2005 • Tata Mc graw-Hill Edtion , Business research methods , Donald R.Cooper , Pamela S. Schindler.www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 57. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.References • www.hindubusinessline.com • www.lakmeindia.comwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 58. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summertraining report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. • www.hll.com • www.economictimes.com • www.financialexpress.comwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/