Lakmé is an Indian cosmetics brand owned by Hindustan Unilever. It was started in 1952 at the request of then-Prime Minister Jawaharlal Nehru to produce beauty products domestically and reduce foreign exchange spending. Lakmé offers a wide range of cosmetics and skincare products as well as beauty salon services. It remains the dominant player in the Indian cosmetics market with a 17.7% market share.

1. Lakmé is an ally to the Indian Woman and
inspires her to express her unique beauty
andsensuality.Thus,itenableshertorealize
the potency of her beauty.
Contemporary Indian beauty expert Lakmé
continuouslyinnovatestoofferawide range
of high performance and world class colour
cosmetics, skincare products, and beauty
salons. Combining international cosmetic
technology with an in-depth understanding
of the Indian woman’s needs, Lakmé also
offers its consumers a comprehensive
beauty experience through its products and
services at the Lakmé Salons and Studios.
Corporate overview:
Lakmé is an Indian brand of cosmetics, owned
by Hindustan Unilever and run by CEO Pushkaraj
Shenai. Lakmé started as a 100% subsidiary
of Tata Oil Mills (Tomco), part of the Tata Group.
It was named after the French opera Lakmé,
which itself is the French form of Lakshmi, the
goddess of wealth, also renowned for her beauty.
Indian cosmet Lakmé was started in 1952,
famously because the then Prime
Minister, Jawaharlal Nehru, was concerned that
Indian women were spending precious foreign
exchange on beauty products, and personally
requested JRD Tata to manufacture them in
India. Simone Tata joined the company as
director,and went on to become its chairman. In
1996 Tata sold off their stakes in Lakmé Lever
to HLL, for Rs 200 Crore (45 million US$), and
went on to create Trent and Westside. Even
today, when most multinational beauty products
are available in India, Lakmé still occupies a
special place inthe heartsof Indian women.
Lakmé is the current market leader in the
Indiancosmeticsmarketwitha17.7percent
market share.
Lakmé also started its new business in the
beauty industry by setting up Lakmé
Beauty Salons all over India. Now HUL
(Hindustan Unilever Limited) has about
110 salons all over India providing beauty
services. In the Brand Trust Report 2012,
Lakmé was ranked 104th among India's
most trusted brands and subsequently,
according to the Brand Trust Report 2013,
Lakmé was ranked 71st among India's
most trusted brands. In 2014 however,
Lakmé was ranked 36th among India's
most trusted brands according to the
Brand Trust Report 2014, a study
conducted by Trust Research Advisory, a
brand analytics company. The company is
the title sponsor for Lakmé Fashion
Week (LFW) a bi-annual fashion event
which takes place in Mumbai
History
Way back in the early 1950s, an economic
survey of spending in India revealed that
Indian women were splurging on imported
cosmetics. Nehru was not very happy
because it was affecting the forex reserves.
Maintaining the forex reserves was of
utmostimportance consideringthe factthat
Indianeconomywasstillinitsnascentstage.
Nehru hit upon the idea of a home grown
beautybrandwhichwouldcatertocosmetic
needs of Indian women.

2. (Although some sources claim that
Nehru took up this issue because a
certain women’s associationapproached
him to put forward their concerns about
non-availability of affordable beauty
products. But having studied about
Nehru’s visions and views, I am of the
opinion that he had considered beauty
products as luxury and would have never
spent any time/effort to satisfy those
women’s luxurious needs. Instead, he
took up the issue because it was
affecting forex and related to the
economy. Banning such products was
impossible in a democracy, so starting an
Indian company was the only solution.)
It was a challenge of its kind because it
had to fulfil the needs of “Indian skin” in
which foreign brands fellshort and at the
same time, have a brand identity which
would appeal to the upper middle class
women who were really the ones
splurging on expensive foreign branded
cosmetics.
Nehru knew that only JRD Tata had the
passion and entrepreneurship skills to
tackle the above challenges and
personally requested him to come up
with a solution, which he readily
accepted.
Doing market research to find out the
needs of Indian women and hiring
experts & chemical engineers from the
beauty industry was not really a
challenge for JRD but coming up with a
brand identity certainly was. Finally,
after giving it a lot of thought, he named
it “Lakmé” after the French Opera.
The reason he chose this particular
French opera name was because
“Lakmé” derives its name from Sanskrit
for “Lakshmi”,the goddess of wealth and
epitome of beauty. It was the perfect
name for the company as it was actually
bringing wealth to the nation (by saving
precious forex), could correlate itself
very well with the beautiful Goddess and
it appealed well to upper middle class
women due to its “Videshi” sounding
name (“Lakshmi lipstick” or “Lakshmi
eyeliner” would have sounded very
“Desi”).

3. Lakmé’s Business:
Lakmé remains the dominant player in the
Rs. 1,100-crore organized make-up market
in India. With cosmetics use growing in
India and more women moving into the
urban workforce, experts say the pressure
to come up with chic products is growing.
Women are increasingly getting
aspirational and also have the means to
ensure they can buy what they want in
their drive to enhance their beauty.
Lakmé has also played on pricing for its
revamped range for the working woman. It
is priced between Rs 200/- and Rs 600,
bringing it within the reach of most.
International brands such as Revlon,
Chambor and even L'Oreal Paris are all
priced over Rs 500, and Maybelline is the
only mass-market brand among the global
players.
About the Industry:
The cosmetic industry is a profitable
business for most of the manufactures of
cosmetic products.
The cosmetic industry worldwide seems to
be continuously developing many famous
companies sell their cosmetic products
online also in countries in which they don’t
have representatives
Our Mission
Unilever's mission is to add vitality of life.
They meet every day needs for nutrition,
hygiene,andpersonal care withbrands that
help people feel good, look good and get
more out of life. Our mission
Enthused with Vitality
Vitality is at the heart of everything we do.
It's inourbrands,ourpeople andourvalues.
Vitality means different things to different
people.Some seeitasenergy,othersview it
more broadlyas a healthystate of body and
mind ± of feeling alive. Whatever their
personal definition, millions of people
around the world use our products daily to
add Vitality to their lives - whether that's
through feeling great because they’ve got
shinyhairand a brilliantsmile,keepingtheir
homesfreshand clean,or by enjoying great
cup of tea, satisfyingmeal or healthy snack.
Ever since the 19th Century when William
Hesketh Lever stated that the company’s
mission was "to make cleanliness
commonplace;tolessenworkforwomen;to
foster health and contribute to personal
attractiveness, that life may be more
enjoyableandrewardingforthe peoplewho
use our products," Vitality has been at the
heart of our business. Vitality defines what
we stand for: our values, what makes us
different,andhow we contribute to society.
It's the commonthreadthatlinksourbrands
and it’s central to the unique way we
operate around the world.
Health & nutrition
Our Vitality mission commits us to growing
our business by addressing health and
nutrition issues. We focus on priorities
including children and family nutrition,
cardiovascular health and weight
management.
Inside & out
Our culture also embodies Vitality. Adding
Vitalityof life requiresthe higheststandards
of behaviour towards everyone we work
with, the communities we touch and the
environments on which we have an impact.

4. The growingdemandformore Vitalityinlife
provides us with a huge opportunity for
growth. The way we work and the products
we developare shapedbyconsumertrends,
alongwiththe needto helpraise healthand
hygiene standards in both the developing
and industrialised regions of the world.
Our Vision:
The visionof HindustanLeveristo integrate
social, economic, and environmental
considerations intoits business and brands.
The company also aims to focus on climate
change, water, packaging and sustainable
agricultural resources as our key
sustainability themes. The company also
focuses on making global partnerships on
nutrition and hygiene issues.
Product and Services
Brand products
Contemporary Indian beauty expert
Lakmé continuously innovates to offer a
wide range of high performance and
world class colour cosmetics, skincare
products, and beauty salons. Combining
international cosmetic technology with
an in-depth understanding of the Indian
woman’s needs, Lakmé also offers its
consumers a comprehensive beauty
experience through its products and
services atthe Lakmé Salons and Studios.
KEY FACTS
 Lakmé was the country's first cosmetic
brand to introduce make up to Indian
women and takes pride in being the
expert on Indian Beauty for over 50 years
 It is a complete beauty brand spanning
colour cosmetics & skin care and
extending to beauty services through the
network of Lakmé Beauty Salons.
 Its bond with beauty and fashion is
manifested through the Lakmé Fashion
Week, which is now the largest fashion
event of its kind in the country.
Broadly, one could categorise Lakmé
products and services into 3 sections:
 Skin
o Moisturizing
o Cleansing
o Skin Lightening
o Sun Protection
o Youth Boosting
o CC Cream
o Skin Gloss
 Make-Up
o Lakmé hascategorizeditsMake-
upproducts basedonthe usage,
i.e.
 Face
 Eyes
 Lips
 Nails
o It also lists make-up products
under 3 brands, which are:
 Absolute
 9 to 5
 Classics
 Salon
Lakmé Salonoffersvariousservices,few
of which are:
o Hair Styles

5. o Nails
o Make up
LAKMÉ ABSOLUTE SCULPT
Lakmé Absolute’s latest range of high
definition Sculpt lipsticks has arrived! One
stroke of contoured perfection is all one
needtogeta chiseled,longwearexperience
with a rich matte finish. Available in 15
dramaticshades(the brightestshadessofar
in the Absolute range), Lakmé Absolute
Sculpt Studio Hi-Definition Matte Lipstick is
your go-to professional product that
providesnothingless than an expert finish.
Key features:
High colour pay off in one stroke
Matte texture and finish
Long lasting formula
Highly recommended by Lakmé makeup
experts
Most vibrant matte collection from Lakmé
Absolute
LAKMÉ ABSOLUTE GLOSS ADDICT
Professional High shine in a single stroke
application
It is available in 15 Shades
LAKMÉ ABSOLUTE GEL STYLIST
Supershinyand plumpnailsinone stroke.It
deliversrich colourfor highcoverage for gel
nails with a professional finish.
KEY FEATURES
Professional finish gel nails
Hi-shine, high coverage, rich colour
RecommendedbyLakmé’smakeup experts

6. LAKMÉ ABSOLUTE MATTREAL SKIN
NATURAL MOUSSE
Feather-light finish easily blends into the
skin keeping it healthy, hidespores & evens
out skin tones. The new SPF 8 formula
protects the skin from sun damage, leaving
it peachy-soft & naturally flawless for up to
16 hours.
SPF 8
Feather light texture
Stays up to 16 hours
LAKMÉ ABSOLUTE DRAMA STYLIST SHADOW
CRAYON
Sultry,somberorsassy.Womenlovedrama!
Unleash your drama quotient with Lakmé's
Drama Stylist Crayon
Services
Lakmé Salon is dedicated towards the
evolvement of the modern Indian woman
and her exploration of beauty.
It brings a plethora of beauty and
grooming services that proudly match up
to international standards. Its repertoire of
professional beauty experts and hair
stylists are much sought after by the
contemporary Indianwomen of today who
are looking out to explore the fine art of
beauty to the fullest and only by the best.
Known for their creativity with stunning
hair and make-up techniques and
excellent skin care services, Lakmé Lever
brings the backstage expertise and
experience of Lakmé Fashion Week to the
modern Indian woman. Professionally
trained hair and makeup experts with
countless shows under their belt and
outstanding skinservicescome together at
Lakmé and offer an unforgettable
experience; one that’s 360 degrees by
nature.
Lakmé Lever has a presence of more than
250 Lakmé Salons at premium locations in
over 50 cities.

7. Lakmé Salon soon after launched the
epitome of absolute luxury and exclusivity
in the name of Lakmé Absolute Salon. Tthe
salon offers bespoke services that define
the ultimate facets of hair and beauty. This
state-of-the-art salon is currently present
in the 3 cities - Delhi, Bangalore and
Mumbai.
With the success of the franchisee model
and interest from entrepreneurs and
professionals to associate with the brand,
Lakmé Lever has tied up with Bharatiya
Mahila Bank to support women
entrepreneurs seeking loans to set up
Lakmé franchisees.
Our state-of-the-art services and spaces of
expertise can be seen in all their
franchises. With hair and makeup experts
at consumer’s service, we bring together
amazing services and trends from around
the world to a salon near customers.
Lakmé Revamp Studio
Lakmé Revamp studio is an online platform
where consumerscanexperimentwiththeir
looks by uploading their image and trying
out different products offered by Lakmé.
It gives them an insight on which shade to
choose and how to dress up for important
events.
Services provided at Lakmé Salon:
 Trendy hair styles:
We love your locks as much as you
do! From quick cuts to styling –
pamper your hair only at Lakmé
Salon.

8. Essential looks:
Hair cut
Wash and blow dry
Change your look:
Straighten your lustrous locks or get an
edgy up-do for every occasion. Designed
by international experts; our products are
infused with natural ingredients such as
rice bran oil, bamboo leaf, Japanese
honeysuckle, lychee and dragon fruit that
soften, straighten and sculpt your hair
fashionably. So, step in and pamper
yourself withour exclusive services only at
Lakmé Salon.
- Ultimate Blow-dry
- Sleek Mystique
- Smoothening
- Rebonding
- Strait Therapy
- Perming
 Be bold, nails:
Make a fashion statement and give
your nails a quick makeover.
Nail art:
Basic Tips
Cut, file &polishto show off hands that are
paid attention to and taken care off.
Party Tips
Let your nails do all the talking. Get your
nails party ready with vibrant colours and
exciting patterns.
Bridal Tips
A wide range of colours and nail art
designed to complete your perfect
wedding look.
Style gels application:
Get absolute gloss and shine on your
fingertips with Lakmé Gel Stylist.
Style gels removal:
Give yourself a removal treatment for
crystal clean, shiny finger tips.
 Brilliant body:
Detoxify, de-stress and relax!

9. Head:
Hot Oil Massages
Stimulate the nerves; nourish your roots,
scalp and hair with our Hot Oil Massages.
It increases vitality and gives you that
healthy hair after - glow, leaving your hair
relaxed and rejuvenated.
Choose from: Coconut Oil / Aroma /
Almond Oil / Olive Oil
Body:
Let our professionals work their way
through all your pressure points and
choose from three relaxing alternatives -
Detoxifying, Relaxing and Stress relief.
Waxing:
Regular sugar wax/ lipid /oil based wax/
chocolate wax
 Perfect make-up:
From festive looks to fashion
makeovers, we’ve got it all!
Every day:
Casual/every day make up
Let our experts work their magic and give
you the perfect everyday look to suit your
skin tone and personality type. Dress up or
dressdownanylookwithEverydaymakeup.
Party Makeup
Be the life of the partywithconcealingparty
makeup that’s perfect for an evening out or
a special celebration. So put it on and stay
gorgeous.
Bridal:
When it’s D-day, the day when all eyes are
on you, you are going to want to look
picture perfect. Our experts will create a
lookto suit your outfit,the type of function
and make sure you look stunning
throughout.
Beauty comes to your
doorstep
Allow our make-up artist to can visit your
home or wedding venue and give our bride
make-up services in a setting most
convenient to you. Kindly contact the
Customer Experience Manager for details
(Service available at select Salons and
Studios only).
Bridal Glimpse Service
Perhaps, you wish to experiment with an
entirely new look. The bridal glimpse
service is just for you. Explore and see
what you like. This service includes trial
make-up (Kroylan / Mac), hair service and
saree draping.
 Radiant faces:
Our experts pamper, moisturize
and enhance your skin with care.

10. Everyday essentials:
Threading
Remove unwanted hair from your face and
get perfectly shaped brows by our experts.
Bleaching
Lightens hair from spots where you don’t
want to wax.
Waxing
Eyebrows/Upper Lip/Chin
Clean ups
Basic clean-up
Fresh Fruit
Melon mist fruit
Citrus fruit
Strawberry fruit
Masques
Quick Glow
Chocolicious
Skin Soft
Facials
Fruit Facial
Revival
Acne Scar Reducing
Skin Solutions:
Basic
Indulge in the goodness of the Algae
Collagen Masque as it reduces any
signs of pre-ageing, maturing and
dehydration of the skin with
ingredients like Sea algae, Chondrus
Crispus, Glycerin and Lavender Oil.
This masque instantly helps reduce
fine lines giving your skin a radiant and
youthful glow in just 30 minutes.
Ageless
Get youthful skin with this facial that
hydrates, tightens and rejuvenates skin.
Advanced
Youth InfinitySculptingFacial/ Anti- ageing
with/without eye treatment
Special Treatment:
Basic Facial
Aroma:
A massage and face treatment with
de-stressing and invigorating
aromatherapy essential oils; effective
for relaxing mind and body.
Peppermint:
Recommended for skin during
summers. Experience the tingling
freshness of minty goodness for
glowing, tan-free skin.
Winter Blush
Advanced
Pure Defense Anti- Pollution
Free- Spirit Floral
Eye rejuvenation
Organic Eye treatment
Skin Enhancement:
Basic Facials
Complexion enhancement:
Enhance your complexion through skin
lightening and improvement of skin
texture.
Instant glow:
Reward your skin with an immediate glow
and freshness - leaving you looking
radiant.
Advanced
Vita- C Skin Brightening
De- Tanning
Lakmé Perfect radiance- instant
Whitening Facial
Nirvana Glow

11. Skin lightening with/without eye
treatment
Radiant glow with/without eye
treatment
Luminance 3+ Ritual
- Masques
Algae Collagen:
Reduce early signs of ageing with our
all new Algae Collagen Masque. Leave
your skin hydrated with ingredients
like Sea algae, Chondrus
Crispus,Glycerinand Lavender Oil. Get
instant results witha single application
and reduce fine lines for a younger,
radiant glow.
Gold Collagen:
Discover the magic of real 24 carat
gold dust working on your skin. In
combination with sea algae and
collagen, these ingredients together
hydrate, nourish and tighten your skin
in just 40 minutes, to reveal beautiful
glowing skin.
Summer Cool off Mineral Masque
 Colour your hair:
Smoking hot Auburn or subtle
browns; we’ve all the colours in
the palette.
Global:
Get the latest trends in hair straight from
Hollywood.
Our Premium Ombre brings style and
grace to your locks.
Global Hair Colouring
Ombre look Premium
Roots:
Strengthen your hair from root to tip. Give
your roots the power of Schwarzkopf,
Igora & Tigi.
Roots:
1/2 inch
1 inch
2 inch
Highlights:
Kick it up a notch with radiant highlights
Rich in colour and hue; we bring
Schwarzkopf, Igora and Tigi to give your
tresses the perfect hue withspecial Ombre
techniques.
Services:
Crown Area Highlights
Full Head Highlights
Colour Stripping
Ombre Look Premium- Crown Highlights
Ombre Look Premium- Full Streaking
Ombre Look Premium- Colour Stripping
Per Streak
Block Colouring
 Take care, hair:
Say bye-bye to split ends and dry
scalp.

12. Essentials for coloured hair:
Lock moisture in your tresses with our
essential treatment.
Pick anyof these servicesfor coloured hair:
Renew Indulgence
Pre Colour Treatment
Post Colour Treatment
Treatments:
Treat for your tresses
Take care of your luscious hair with any of
these packages:
Hair Fall Control Treatment
Dandruff Control Treatment
Protein Restore Treatment
Absorb the oil:
Give your hair nature's goodness
Almond/ Aroma/ Olive Oil Massage/
Coconut Oil Massage
 Pamper my hands and feet:
Lather up in our special spa
treatment.
Manicure and pedicure:
- Aroma
Aroma oils and mineral salts come
together to refresh, refine and soften your
hands/feet.
- Peppermint
Peppermint cools and refreshes the skin
with a unique mint and Basil based
ingredients.
It protects from pigmentation, moisture
loss and other harsh effects of the Sun.
Spas:
Pure Defense & Orchid
The Free spirit Blossom Manicure with
Orchid Essential scrub and an Orchid
Fortifying mask is made from floral
extracts that are rich in essential oils and
help to relax and rejuvenate your tired
hands/ feet. This relaxing spa treatment
fights effects of pollution,defends against
environment stress & restores a good skin.
Massages:

13. Foot Reflexology
The treatment involves a gentle pressure
point massage aimed at the reflex areas on
the feet which correspond to the various
parts of the body. Phyto Body Scrub,
Lemon and Mint Firming Body Mask, Algae
and Mint Body FirmingMask, Mineral Salts
along with a reflexologyfoot tool are used
to derive the best of the treatment.
Masques:
Take some time out to pamper your hands
and feet, treat them to an indulgent Soft
caress Hands and Foot masque. It removes
tan and hydrates the skin in addition to
your regular manicure/ pedicure. Ideal for
winters when the skin tends to get dry.
This treatment is also very good for
treating cracked heels.
Summer De- Tanning Hand & Feet masque
(Removes Tan)
Soft caress Hand & Feet masque
(Hydration & Dryness)
 Picture perfect brides:
A special treat for the bride-to-be.
Scalp Perfection:
For the bride-to-be;Lakmé Salon pampers
your hair with massages, therapy, cuts &
styling. Bring volume and shine to your
tresses from the best of expert care.
Steal the spotlight on your special day with
Lakmé Salon hair care.
Simply skin:
Give your skin all the attention it needs.
Our face treatments, body massages and
other skin services specialize in keeping
your skin flawless, porcelain clear with a
natural glow.
Delightful Hands and Feet:
From manicures to pedicures, essential
oils& flower extracts; we layer your hands
& feetwithsift,silky& refreshinglysmooth
skin.
Tie the knot with beauty:
Delightful hands & feet: From manicures
to pedicures, essential oils & flower
extracts; we layer your hands & feet with
soft, silky & refreshingly smooth skin.
Media Statements:
Below the line initiatives are extremely
importantinthe cosmeticsegmentsincethe
buying experience is as important as brand
image andadvertising.Significantfocusison
sales counters, beauty advisors and dealer
aids. We constantly integrate a lot of the
above the line campaigns like 'Whose
watching your lips' with below the line
initiatives Anil Chopra,BusinessHead,
Lakmé Lever
''Lakmé is at the forefront of product-
innovation. Almost everyone has a Lakmé-
something in their (cosmetics) collection,''
said Mumbai-based fashion choreographer
Lubna Adams.

14. The Indian cosmetics industry is in churn.
Even as the premium segment is getting
crowded, the rural market is turning out to
be the stronghold of smaller, regional
players. Although stiff competition has
emergedforLakmé Leverwithinthe Rs 250-
crore colour cosmetics market, it continues
to lead.Inthe skincare market,estimatedat
Rs700 crore, Lakmé'smarketshare averages
7-8 per cent. Catalyst spoke to Anil Chopra,
Lakmé Lever's Business Head.
Corporate affairs and culture
Great brands and great people are our
biggest assets. Sustainable, profitable
growth can only be achieved in an
organization which focuses on
performance culture and where
employeesare engagedandempowered
to be the best they can be.
Future success depends on being lean,agile
and competitive in a resource-challenged
world. In three years, we have transformed
our structure to enable us to move faster,
innovate better and leverage our
Global scale.
Ways of working inside culture:
SOME OFTHE KEYITEMS OF THE EMPLOYEE
ENGAGEMENT PROGRAMMES ARE AS
FOLLOWS:
 EMPLOYER OF CHOICE–
ATTRACTING THE RIGHT TALENT:
A LEARNING CULTURE: The
company follows a holistic 70:20:10
capability building approach across
functions.We believethat70% of all
capability is built on the job, 20%
through coaching and short term
projectsand10% throughclassroom
learning. There are multiple forums
for learning including quarterly
webcasts, regular guest sessions
from industry stalwarts and portals
to ensure a constant flow of best
practices.
 DEVELOPING LEADERS FOR THE
FUTURE:
Lakmé iswell knownfornurturingtalent
and building leaders, driven by the
leader’s philosophy. Such a mindset
ensuresthatleadershipgetsingrainedin
all people across the companies rather
than placing as the responsibility of a
function or a few individuals.
1. Lakmé’s deep roots in local cultures
and markets around the world has
given Lakmé strong relationship
with consumers and are the
foundation.We willbringourwealth
and knowledge and international
expertise to the service of local
consumers- a truly multi-local
multinational.
SCALE AND GEOGRAPHIC LOCATION :

15. Market Overview:
The current size of the Indian cosmetic
marketisapproximatelyUS$600 million.
Of this, the fastest growing segment is
colour cosmetic, accounting for around
US$ 60 million of the market. Industry
sources estimate a rapid growth of
20% percent per annum across
difference segments
Lakmé vis-à-vis its competitors:
Chart showing the reason which
motivates respondents to buy Lakmé
PRODUCTS:
What sets the brand apart
Respondentswilluse Lakméevenif the price
rises by 15%s:
Thisshowsthat the productis a price leader
and has captured the market.how
How Lakmé influences its customers:
 The Conceptof EGO : Lakmé triesto
position itself on the basis of its
appeal to the customerswhichhave
an ego. This means that the
consumers of Lakmé have an
impulsive drive for which they seek
immediate satisfaction without
concern for means of satisfaction
 The concept of personality groups:
Lakmé tries to woo the compliant
consumers on the basis of
personality groups i.e, people who
move towards others. Those who
desired to be loved and lovedto be
appreciated.
 Line extension : Lakmé has
triedtogainthe attentionto
its consumers by line
extension and having more
and more product depth ,
packaging and attractive
print advertisements. If we
lookatthe line extensionsof
Lakmé than we would
observe that it is in almost
all the segmentsof cosmetic
care ranging from hair care
22%
18%
8%
39%
7%
6%
COMPETITORS
REVLON
ORIFLAME
BLUE
HEAVEN
L'OREAL
55%35%
7%3%
REASONS FOR MOTIVATION
TO USE LAKME PRODUCT
MEASURABLE RESULTS ECONOMICAL
EASILY AVALIBALE TREND SETTER
Yes
65%
No
35%
FREQUENCY
Yes No

16. to skin care to beauty
salons.
Presence & Outreach of Lakmé
Lakmé, which got its name from a late 19th
century French Opera Lakmé by Léo
Delibes, which is the French word for
Goddess Lakshmi, has been inthe business
of sharing secrets of the mythical beauty of
goddesses to Indian women. And in its
attempt to diffuse the message to the
mass, the cosmetic brand has used all
kinds of marketing channels, including the
now-popular digital media, led by social
media platforms.
Audience Analysis of Lakmé: Owing to
the brand building exercise by Lakmé, the
sentiments expressed by people (see
second image), both male and female, is
either positive or neutral. There is almost
no negative emotionflowingfor the brand,
but what is surprising is the number of
male followers of the brand. As is evident
in the image, slightly over 40% of social
media fans of the cosmetic brand
comprises of male.
AgeDistribution: The gender distribution
of Lakmé’s fans could be a bit surprising,
but not so its age distribution. The closer a
person is to his/her prime the likelier is
his/her chance of following the brand on
social media- as you can see people
between 21-30 make the largest chunk of
its social media followers.
Overall Strategy Lakmé :
Now cosmetics and personal care industry
has been growing at an average rate of 20
per cent for the last few years. The
growing Indian cosmetics market offers
promising prospects for international
brands. The growth rate in the cosmetics
market reflects an increasing demand for
beauty care products in India. Perfumes
and fragrances, skin care, and hair care
products are some of the major segments
with promising prospects for U.S.
companies.
Penetration of most cosmetic and
toiletries is very low in India. Current
consumption of many products is well
below that of many countries in Asia. The
low market penetration of many cosmetics
and personal care products offers room for
growth.
The urban population with increasing
purchasing power is the major force
driving demand for cosmetics and
toiletries. India is a very price-sensitive
market and mass-market products
constitute the major part of the cosmetics
and toiletries market. India’s import of
cosmetics and toiletries and intermediate
raw materials isaround US$ 120 million,of

17. which the U.S. has a share of
approximately 10 percent.
Looking gorgeous and feeling beautiful
seem to be the mantra that Lakmé follows
on social media. The content it shares and
the design of it talks not only about its
products, fashion shows, and contests, but
also about the little steps a woman (or a
girl) can take to look gorgeous and be the
object of much-coveted desire, as the
brand seesitto be the driving agenda of all
women, or at least itsfans. We need to see
in the following sections, what form this
strategy takes when it comes to individual
channels like Facebook, Twitter, and the
like.
Lakmé on Facebook: With almost
19.25 lakhs Facebook fans, of which a little
over 39,000 actively engages in discussion,
Lakmé has a pretty strong Facebook
presence. The brand has used a nice mix of
image and video updates from its events,
make up tips, and contest, which has
helped it maximize its reach among
Facebook Users. When sharing tips the
brand does add a call to action asking its
followers to take a particular action. For
example,inthe followingimage,the brand
has asked its fans and followers to “like”
the post only if they are going to use the
shared tips.The content pieces have
moved people to engage with the brand,
though mostly it is in the form of likes
rather than comments or shares.The
brand should work on improving the
instances of share and comments on its
posts, and that it can do by improving the
quality of copy it uses in its updates.
Lakmé on Twitter: Like Facebook,
Lakmé is also significantly active
on Twitter, in recent times, even though
the number of its total fans is barely 10
thousand. the brand does not only follow
the “use Twitter for contest” route alone,
or to amplify the reach of its Facebook
content. The social media team of Lakmé
has been successful in causing some real
conversation on its timeline via its
updates. On Twitter as well, the brand
influences females more than males,
which isquite understandable, considering
the nature of the products it has to sell and
the content it shares on the platform.
Comparison with competitor:
Revlon is one of the closest competitors of
Lakmé in the market, and on social media
as well. The brand has a pretty strong
presence on Facebook, but it is not as big
as even half of the size of the brand we are
studying. It has a fan base of a little over
8.5 lakhs, but per post engagement on the
page is higher than that on Lakmé’s
despite the fact that the competitor
prefers sharing product-promotion type
updates unlike Lakmé, which shares
various kinds of stuffs.

18. Lakmé Elsewhere on social media: The
brand is also active on YouTube and
Pinterest.Ithas more than14,000 followers,
withtotal videoviewsof more than82lakhs,
which is a respectable number in its own
right. While many of its videos have not
crossed a 1 lakh view count, some of them
have recorded way beyond that. For
example, the DIY nail art video has been
watched more than 2 lakh times, and the
Kareena has been seen more than 9.5 lakhs
times. On Pinterest, it has more than 744
followers. Here the cosmetic brand has
created 49 boards to entice followers with
attractive pins.Although744isnotanumber
to be proudof butseeingthe strengthof the
platform in India, it is not a number to
complain about it.
Conclusion:Lakmé hasdone a nice jobon
social media. It has registered a powerful
presence on the platforms on which it is
available. Lakmé has managed to engage its
primary target audience: girls and women,
throughvariousactivitiesthatseemtocatch
their fancy. It is surprising and pleasant to
see that the brand has as many male fans
and followers as their female counterparts,
but they don’t seem to be interacting much
withthem.While the contentsharedby the
brand is catchy, the tonality can be
improved. A lively brand needs to be more
conversational andpublishupdatesthatare
share-able.
Geographical Reach
At the presenttime the Lakmé brand boasts
over 300 products,usedin professional hair
salonsinover70 countriesaroundthe world
andpresenteachyearatthe mostimportant
international fairs. Thanks to the intense
researchinto new formulas,techniquesand
styles, inspired by the latest advances in
international hairstyling, it is a company in
expansion.Lakmé hasalsoventuredintothe
beauty services business with the launch of
‘Lakmé Beauty Salons’ which has already
become a leading beauty salon chain with
more than 100 salons across different cities
of India
ConsumerBehaviour&Perception&Market
Research:
LAKMÉ’S POSITIONING IN TERMS OF
PERSONALITY AND SELF CONCEPT:
Lakmé is a product range that caters to the
beautification needs of not only women in
their adultage but in today's context
teenagers also. It has a brand personality of
someone who takes care of you and your
beauty needs. It tries to position itself
amongst its consumers as a product
rangethatwill helpthemlookbeautiful asis
evident from its catchphrases:
1. On top of the world!
2. Source of radiant beauty
1 Lakmé has a range of beauty products to
offer to its consumers. Some of the ways in
which it tries to position itself:
1. Lakmé Hair Colour: magic of colours
(collage).
2. Lakmé (versatile eye shadow collection):
rich, long lasting and healthy make up.
3. Lakmé fairperfect:Forflawlesslyfairskin.
4. Lakmé face magic: daily wear soufflé.

19. 5. Lakmé (skin vitalizer): radiant skin, now
and forever.
6. Lakmé (moisturizer):radiantskin,nowand
forever.
7. Lakmé nail polish and lipstick: electric
brilliance/sensual brilliance/free
spirit/peppermint/9 to 5
8. Lakmé sun expert (sunscreen): sun safe
hamesha! (Face the sun with a smile)
9. Lakmé pure defense: anti-pollution
system.
10. Lakmé Tropical Island (cosmetics):
defining the future of fashion.
11. Lakmé hair care (international): natural
haircare,a source of pleasureandwellbeing
12. Lakmé hair next: exclusive range of
hairstyle products that give you that salon
look instantly. On the basis of above
mentionedpositioningstrategiesLakmé can
have the following characteristics that
determine its personality:
•Someone who takes care of your beauty
needs.
•A longlastingbeautificationproductrange.
•Something that is not harsh on your body
or harmful for your beauty.
•A productthat providesyouwithanoption
of getting beautiful hair.
•A product that helps you get a beautiful
skin.
•A cosmetic product that you can wear for
the entire day and not a special occasion.
•Someone who tells you right things about
looking good.
•It's an Indian cosmetic brand.
•It covers all facets of beauty care for
women. The following factors of Lakmé's
personality help in differentiation of its
products from the competition:
•It covers all facets of beauty care.
•It helpsarmthe consumerwithproductsto
pamperherfromheadto toe i.e.acomplete
product range.
•The quality of its products which can be
only gauged by the consumer perception of
the brand.
•India's firstbeautybrand and is there for a
long time in the market (since
independence).However, most of the other
foreign brands have come only lately.
How Lakmé IsInfluencingItsConsumers:The
Concept Of Ego:
•According to Freudian Psychoanalytic
theory Lakmé tries to position itself on the
basis of its appeal to the consumers which
have an ego.Thismeansthatthe consumers
of Lakmé have an impulsive drive for which
they seek immediate satisfaction without
concern for means of satisfaction
•Women all over the world are always
expected to look good and Indian women
are no exception; More so because of the
fact that Indian women in general do not
have a fair skin like that of their western
counterparts. Thus it becomes but natural
for Indian women to try and look good and
use beauty productsthathelpenhance their
looks and style. With globalization and
liberalization of Indian economy and the
changing demographics and income levels
there ismore andmore concerntolookgood
as today's Indian woman is no longer
confinedtoherhome butisabigcontributor
to the growth of Indian economy.

20. The Concept of Personality Groups:
•Lakmé tries to woo the compliant
consumers according to Karen Horney's
classification of personality groups i.e.
people who move towards others. Those
who have desire to beloved, wanted and
appreciated. As is earlier stated women are
supposed to look good not only in western
countries but also in India.
•Womenalwaysappreciate if someonecalls
them beautiful and it has become the
custom of the societyto see womenin such
a context.Soitwouldbe prudenttosay that
according to the societal norms a women
has tolookgoodat all timesandwhichhasa
bearing on the psychology of female
consumers towards cosmetic products
which help them achieve that desired look.
Needless to say that Lakmé plays on the
conceptof womenwantingthemselvestobe
appreciatedfortheirbeautyandbeingloved
for that
Concept of Perceptual Selection:
On the basis of perceptual selection Lakmé
has tried to position itself among its
consumers in the following ways:
•Lakmé has triedto gainthe attentionof its
consumers by line extension and having
more and more product depth, packaging
and attractive print advertisements. If we
lookat the line extensionsof Lakmé thanwe
would observe that it is in almost all the
segmentsof cosmeticcare rangingfromhair
care to skincare tobeautysalons!Lookingat
the product depth it is pretty evident that
Lakmé has actually tried to fill in all areas
that itcan, particularlythe nail paintand the
lip colour segment is a big hit among Indian
women as it offers them a wide variety of
products in terms of colours as well as
various styles that they can choose from.
•It was the firstcosmeticbrandin Indiathat
captured the imagination of consumers. It
had a market share of 52%
At one time as the consumers didn't have
manychoicesbutas the foreign brandscame
in, it lost its Numero Uno position. This was
primarily due to the fact that consumers
now hadeasyaccesstohighqualityproducts
andwithrisingdisposable incomeandsizeof
the Indian middle class consumers shifted
their attention to foreign players.
Perception And Attitude Of Consumers
Towards Lakmé:
According to the answers in the in-depth
interview of the respondents:
What respondents feel:
•Colourful:20% (6/30) of the respondentsin
the in-depth interview said that
theyassociated Lakmé with colours i.e.
something which is vibrant and lively.
Accordingto themLakmé offersthemwitha
wide range of coloursinproduct categoryof
nail paint and lip colour. This makes them
perceive it as colourful.
What Lakmé wants them to feel:
Thisconsumerperceptiongoeswellwiththe
positioning of Lakmé’s lip colour and nail
polish as they try to position it as colourful
and vibrant which is how the consumers
perceive it as.
What respondents feel:
•30% (9/30) respondentsfeltthatLakmé isa
trendsetter for fashionable cosmetics in
India. The major reason they attributed to
this was that it was the first cosmetic brand
in India which was particularly catering to
the need of Indian women and thus set a
trend for the foreign players to tap the
Indianmarket.Todayalso theysaidthat it is
a trendsetter in cosmetics as it keeps on
coming out with novel colours, shades and
products from time to time.
What Lakmé wants them to feel:
This again matches with what the company
wantsIndian consumerstoperceive aboutit

21. as isevidentfromthe shownadvertisement.
Lakmé’sstrategyhasbeentocome withnew
and vibrantcoloursand shadesof cosmetics
each and every season. Currently it is
aggressively advertising its ‘Tropical Island
Collection whichhasbeendesignedbynone
otherthanfamousfashiondesignerWendell
Rodricks.
What respondent feel:
20% (6/30) respondentsfeelthatLakmé’slip
colourislongerlastingascomparedtoother
brands suchas MaybellineandRevlon.They
felt that it is because of good quality of lip
colour that was provided by the company.
What Lakmé wants them to feel:
This is what Lakmé is trying to do with the
advertisementsof itslipcolour.Infactit has
launcheda special range of lip colour that is
called 9 to 5 range and is meant for women
who are working in offices. This product is
primarilyharpingonthe premise thatthe lip
colour stays longer than any other and is
meant for working women who stay in
officesfrom9 to 5 and can’t give that much
time for their looks in between working
hours.
What respondents feel:
•10% (3/30) respondentsfeltthatwhenthey
thoughtof Lakmé theythoughtof an expert
in beauty care. According to them it is a
brand which communicates to them the
various ways in which they can protect as
well as enhance their beauty.
What Lakmé wants them to feel:
This advertisement of Lakmé is exactly
trying to communicate this message to its
consumers that the brand is an expert in
beauty care as it helps the consumer not
only to look beautiful but also helps her to
protect her beauty.
What respondents feel:
•10% (3/30) of respondents felt that Lakmé
although is not a very well-known and
trusted brand for its hair care products but
still the new range of hair styling products
that ithas broughtoutinthe markethave to
some extent provided them with an easy
way of making their hair look beautiful.
What Lakmé wants them to feel:
This advertisement of Lakmé although is
trying to say the same thing but the
perception of consumers has not been built
according to what the company is primarily
lookingfori.e.itistryingto positionitselfas
an instant hairstyling product.
What respondents feel:
•10% (3/30) feltthatLakmé’sskincare lotion
is one of the best products in its category
and provides them with optimum care in
winters. However they said that the role of
cosmetic product is different for different
environments.Theydisagreedaboutthe fact
that the cosmeticproductsactuallyhelpyou
maintain a good and healthy skin for a long
time unless it is of good quality. They were
of the opinion that a good and healthy skin
can only be obtained by proper diet and
hydration with the help of liquids taken
orally
In this context Lakmé has tried to woo its
consumers by means of informative
advertisement but the perception of its
consumersdoesn’t gel withthatof whatthe
company wantsto do. The major reason for
this could be the level of sophistication of
the respondent.Inthiscase theyare learned
womenfroma B-school.Howeverincase of
women who are not at all abreast with the
actual mechanisms of body’s maintenance
of goodhealth,itcanbe agoodwayof trying
to generate awareness amongst it
consumers regarding the role this product
can play in the achievement of the
consumer’s goal.

22. PREVAILING CONSUMER ATTITUDE:
The prevailing attitude of the consumers
regarding Lakmé is that it is:
•A brand that epitomizes the felinity of
Indian women. 30% (9/30) of the
respondents of the in depth interview felt
that Lakmé has over the years built a brand
that has got special place in the hearts of
Indian women. This was attributed to the
length and depth of its product mix.
•20% (6/30) of the respondents feel that
Lakmé is economical as compared to its
competitor foreign brands. This particular
aspect has never been harped upon by
Lakmé in its advertisements. When asked
whether the consumers would buy the
products of Lakmé if their price was
increasedmostof the respondentswere not
able tomake uptheirmind.Theywere of the
opinion that low price is one of the major
strengths of the brand and it should remain
like that.
•10% (3/30) of the respondents felt that
Lakmé provides them a complete range of
cosmetic products. This is in line with what
Lakmé has been trying to position it as.
Thevarious advertisements of Lakmé try to
tell their consumers that they provide them
with complete solution for their beauty
enhancement.
•20% (6/30) respondents felt that Lakmé is
not at all a healthychoice inorderto keep a
healthy andbeautifulskin.Thisisincontrast
withits skincare productsas theytry to tell
their consumers that using their skin care
products would help them achieve radiant
and glowing skin. The major reason is the
growing popularity of herbal products and
the usage of chemicalsinLakmé products.In
this respect what we as a group feel that
Lakmé should start a new product line of
Herbal orAyurvedabasedcosmeticproducts
as Lakmé is already considered as a
trendsetter in cosmetics industry by various
consumers. So it should not miss the
opportunity andshouldeitherlauncha new
product line or incorporate Herbal or
Ayurveda ingredients in its product
portfolio.
Special Note WithRespectTo The Prevailing
Consumer Attitude:
We as a group came to the conclusion that
whatevernegative attitude consumers have
regardingLakmé atIBSHyderabadcampusit
maybe because the respondents were highly
informed regarding the products and
product range. They were all B school
students and were aware of the recent
developments with respect to the cosmetic
industry to some extent. If we look at a
broader picture women today are changing
their attitude towards more healthier and
natural cosmetic products as a whole and
are reluctant to use chemical based
cosmetics if they have better options.
Moreover due to immense competition it is
very much evidentthatconsumersof Lakmé
would switch over to healthier brands as in
this product category the brand loyalty of
the consumerstays as longas the product is
providing the consumer the desired level of
satisfaction.Sincethatlevelisalreadyon the
changing side its high time Lakmé looks at
beautificationnotonlyintermsof cosmetics
but healthy cosmetics, example, firstly the
respondents were asked a particular
question and then, they were probed on
reasons for their response given to the
interviewer. Earlier we narrowed down the
sources of data collection to focus groups
and individual in-depth interviews. But
finally we ended up by selecting individual
in-depth interviews. The advantages of in-
depth interviews over focus groups are:
1. More quality:
Unlike focusgroups,one- on-one interviews
can avoid responses that are influenced by
other people. Like in our case where
personal beauty care is a critical issue. Girls
or women tend to get influenced by other

23. participants of the focus group in order to
avoid any embarrassing situation. This kind
of behaviour is not seen in case of in-depth
interview.Interviewersmayaskrespondents
directlyandfindouttheirpersonal thoughts
on the product;thisultimatelyenhancesthe
quality of information.
2.More quantity:
We can receive twice the amount of
information per respondent in an in-depth
interview, where the interviewer speaks at
most 20 percent of the time, as in atypical
10-member focus group.
3.More depth:
In-depthinterviewscaptureall the relevance
of the qualitative information of focus
groups. Every word the respondent speaks
can be tapped and transcribed and used in
multiple ways. Well-designedsurveyscango
beyond surface answers and produce a rich
database of interviewstoproduce analytical
reports, identify broad themes, and
understand the ranges and depth of
reactions.
4.More representation:
In-depth interviews allow a much more
representative approach. Respondents are
carefully selected to represent the
marketplace as accurately as possible.As in
our case, the respondents were girls.
Therefore itwasbettertoconduct individual
in-depth interviews as girls can feel
comfortable in answering questions
pertaining to beauty care of a person.
5.More value:
One-on-one interviews can double or triple
the numberof minutesthat the respondent
is talking, and that is the true goal of our
research: understanding your consumers
better.
6. More convenient:
As we are residing in a residential B-school
where we are under inevitable pressure of
assignments and placements, so it was
difficult for us to schedule a focus group
discussion comprising of 7-8 girls and that
too we have to conduct 3-4 focus group
discussions. In comparison to focus groups,
individual interviews were easier
toschedule.7.As our subject of research i.e.
personal beauty care of women is quite
sensitive, therefore individual in-depth
interviews were more appropriate in order
to get more of the talking from girls or
women.8.Moreover, with one respondent,
there isabsolutelynopotentialforinfluence
from other respondents which might have
been prevalent if it was a focus group
discussion instead of an individual in-depth
interview. As we have clearly mentioned
myriad advantages of in-depth interviews
over focus group discussions,there are also
some limitations of individual in-depth
interviews. They are:
i).There is no group interaction among girls.
Therefore, stimulation for new ideas from
respondents comes from the interviewer.
ii).In the absence of group pressure of girls,
the thinking of respondents is not
challenged.
iii).Ittakesalotof timetoobtaininformation
and analyse it.
Limitations of Qualitative Methods:
•The results are not necessarily
representative of what would be found in
the population, and hence cannot be
projected.
•There is typically a great deal of ambiguity
in the results of qualitative methods.
•Susceptibility of the results to misuse.
•Flexibility that is the hallmark of these
qualitative methods gives the moderator or
interviewer great latitude in directing the
questions; similarly, an analyst with a

24. particular point of view may interpret the
thoughts and comments selectively to
support that view.
Primary & Secondary Research:
The research is based on:-
Primary Data
1) Questionnaire
Secondary 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 (Lakmé) brand.
Also the level of:-
Brand awareness,
Price level,
Visibility of brand personality.
Expectancy of Communication
All these factorswere the primecriterionfor
selecting (Which brand??), Short listing and
ranking (level of trustworthiness? or most
favoured) which had helped us for
identifyingthe winnerincosmeticsindustry.
Objective
1.Helpinbuildingapositive associationwith
people therebyenhancingbrandpersonality
2.How to break the negative connotation of
‘’Being fashionable’’
3.Why has Lakmé missed out on
promotional gauge despite roping in top
brand ambassadors.
4How can the brand retain its lost spot?
Hypothesis
In the classical tests of significance, two
kinds of hypothesis are used the null
hypothesis and the alternate hypothesis.
Null hypothesis( Ho) is usedfor testing.Itis
the statement that no difference exists
between the parameter and the statistic
being compared. Second is Alternative
hypothesis
(HA) is alternative hypothesis is alternative
hypothesis which holds that there 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 data 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 stated below:
•Ho: Respondents are satisfied with the
quality of Lakmé products.
Ha: Respondents are not satisfied with the
quality
•Ho: Respondents are brand Loyal
Ha: Respondents are not brand Loyal
•Ho: Respondents prefer Lakmé
Ha: Respondents do not prefer Lakmé

25. •HO: Respondent are satisfied nor aware of
new product range
Ha: 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
endorsementbycelebrityplayan important
role in the decision making
Lakmé Events:
Lakmé Fashion Week:
Lakmé Fashion Week (LFW) is a bi-annual fashion
event that takes place in Mumbai. Its Summer-
Resort show takes place in February whiles the
Winter-Festive show takes place in August.
It is considered a premier fashion event in
India. It is run by Fashion Design Council of
India (FDCI) and the title sponsor
is Lakmé.[3]
The event first took place in 1999 and
international models such as Naomi
Campbell as well as Indian film stars such
as Deepika Padukone, Malaika Arora Khan,
and Arjun Rampal have participated in it.
International labelsthat have taken part in
LFW include Louis Vuitton, Dolce &
Gabbana, and Roberto Cavalli. Among
Indian designers, Manish Malhotra, Rohit
Bal, Tarun Tahiliani, and Ritu Beri have
taken part in the event. The event has
been responsible for launching the careers
of designers such as Sabyasachi
Mukherjee.
New initiatives like 'Emerging Designer
Category' and 'GenNext' were unveiledfor
the first time in India at the inaugural
Lakmé Fashion Week 2006 with an aim to
provide a platform for promising young
talent to establish them across India. Both
Lakmé and IMG have been pivotal for the
success of the Lakmé India Fashion Week
over the last six years.
Lakmé Fashion Week is ranked number 1
fashion show of India.
 Lakmé celebrated the 15th year of
Lakmé Fashion Week this 15th
August (2015).

26.  Armaan Aiman took us to the state
of eclipse with their collection
inspired from the legends of the
moon. The collection observed the
phenomenon of eclipse and the
processes that beautify it. From
wolf rogue to the ocean, the
collection documented the stories
of the moon.
 Dia Mirza and Diana Penty were at
the Anita Dongre’s
Grassroots collection preview in
Mumbai. Anita Dongre
Grassroots gave a beautiful tribute to
the Indian Crafts for Lakmé Fashion
Week. It was a tribute to the hands
of history.
Aartivijay Gupta's collection, inspired by
the Indian Vegetable Market "Mandi" her
collection reinvented the Indian Farmers
gamcha checks. Hand-woven jaamdanis,
worsted wools, pashminas and mul had
been used as the canvas fabric for the art
work.

27. Competition:
Major multinational companies such as:
 Revlon
 Yardley
 Garnier
 L’Oreal
 Ponds
Lakmé Lever, that runs over 120 Lakmé
Salons across the country, has
restructured its business model to take on
aggressive competitors vying to capture
the growing spends of Indian consumers
on personal grooming.
Lakmé Lever's hybrid business model – a
handful of company-owned salons and
over a hundred franchisee run – will now
be tweaked in favor of more company-
owned salons.
Revlon is one of the closest competitors of
Lakmé in the market, and on social media
as well. The brand has a pretty strong
presence on Facebook, but it is not as big
as even half of the size of the brand. It has
a fan base of a little over 8.5 lakhs, but per
post engagement on the page is higher
than that on Lakmé’s despite the fact that
the competitor prefers sharing product-
promotion type updates unlike Lakmé,
which shares various kinds of stuffs.
Lakmé also has more positive emotion
flowing on its social media pages
than Revlon does, which means, the
studied brand may not a have higher per-
post engagement, but its fans are more in
love with the brand in comparison to its
competitor who gets more likes and
comments on the posts.
Although the Twitter follower base of
Revlon is almost double the size of that of
Lakmé, the Klout score of the latter isa tad
bit higher than that of the former, which
may indicate the engagement of fans and
followers with the page and the influence
of the brand on the platform.

28. Even as L’Oreal India had invested R500
crore for its expansion plans, Hindustan
Unilever (HUL) had bet big on star power
and innovations to promote its cosmetics
and beauty services brand Lakmé in
domestic markets. While HUL had roped in
cine star Kareena Kapoor to endorse its
new range of cosmetics ‘Lakmé Absolute’,
L’Oreal India had beamed a high-voltage
television campaign featuring Aishwarya
Rai Bachchan to promote itsflagshipbrand
L’Oreal Paris.
As part of itsgrowth strategy, L’Oreal India
had set up a research & innovation centre
at Mankhurd inMumbai and a new factory
in Pune. With increasing competition,
Lakmé and L’Oreal will compete to gain
market share in the branded beauty
products sector in India.
HUL had sharpened its focus on
innovations to sustain its leading edge in
the branded cosmetics and beauty
services sector. On HUL’s strategy, Farida
Kaliyadan, the then general manager,
Lakmé said: “With the launch of Lakmé
Absolute, we have taken our make-up to
the next level. Our new launch is
specificallydesignedfor the contemporary
Indian woman. We chose Kareena Kapoor
as she epitomizes the spirit of our new
brand.”
Lakmé iscommittedtooperate andgrow its
business in a socially responsible way. Our
visionistogrow ourbusinesswhilstreducing
the environmental impactof our operations
and increasing our positive social impact.
Ouraimistoachieve responsible growth and
we will inspire to bring this to life by
encouraging people to take small everyday
actions that will add up to make a big
difference.
Corporate Social Responsibility
(CSR)
Principles: Lakmé’s CSR Policy is supported
by the following principles:
1. We are committed to conducting our
operationswithintegrityandrespect,inthe
interestof ourstakeholders,andinline with
our Code of Business Principles.
2. We believe growth and environmental
sustainability need not be conflicting. Our
business model is designed to deliver
sustainable growth.The inputstothe model
are our brands, our people and our
operations. The outputs to the model are
sustained growth, lower environmental
impact and positive social impact. The
differentiator in our business model is our
USLP and the goal of sustainable living.
3. We collaborate andengage withdifferent
stakeholdersincludingGovernments,NGOs,
IGOs,Suppliers,Farmers,andDistributorsto
tackle the challenges faced by the society.
In accordance with Section 135(5) of the
Companies Act, 2013 (the Act), HUL is
committed to spend at least 2% of its
average net profits made during the three
immediately preceding financial years in
some of the identified activities that are
listed in Schedule VII (as amended) to the
Act. This will include the spends through
activities undertaken by Hindustan Unilever

29. Foundation (HUF), our not for profit
subsidiary Company, aimed at building
capacities to conserve water and to further
community development initiatives.
Various initiatives by Lakmé are as follows:
1) Project Shakti : Project Shakti is an
initiative to financially empower
rural women and create livelihood
opportunitiesforthem.Throughthis
project,the Companyendeavoursto
enhance livelihoodsof rural women.
Around 70% of Shakti Ammas are
workinginlowHumanDevelopment
Index (HDI < 0.51) districts. We
contact and appointrural womenas
Shakti Entrepreneurs (SE),
commonly referred as 'Shakti
Ammas'. SE is educated and trained
by the rural promoter about the
Company products and their utility
in day to day life in maintaining
health and hygiene. After being
trained about the products she
receives stocks from our rural
distributor at a discount below the
price at whichthe productsare sold
in the normal course. The Shakti
Entrepreneurthensellsthese goods
bothdirectlytoconsumers(through
home to home selling) and to
retailersinthe village.The Company
has trained thousands of Shakti
Ammasacrossthe villagesinabidto
developanentrepreneurialmindset
and make them financially
independentandmore empowered.
A typical Shakti Ammaearnsaround
Rs.1000/- permonththroughselling
our products. A Shakti Amma in her
village gainsasocial stature asshe is
associated with the reputed
company in addition to being
financially empowered.
2) Safe Drinking Water : The lack of
safe drinkingwaterisa major public
health issue, particularly in
developing countries where
majorityof diseasesare waterborne.
Pureit in-home water purifier
provides water 'as safe as boiled
water', without the need for
electricity or running water. Pureit
partners with NGOs across the
countryto make safe drinkingwater
accessible to people.
3) FAL Foundation : The Foundation
identifies academically exceptional
girls from financially challenged
backgroundsandoffersscholarships
to the candidates. To maintain
integrityandfairnessthe selectionis
done by a panel of eminent
personalities from diverse fields.
4) Sustainable Sourcing: Animportant
part of our raw materialscome from
farms and decisionsrelatingtosuch
procurement can have profound
implications on climate change and
farmers’ livelihoods. In 2012, we
entered into a public-private
partnership with the Maharashtra
Government for sustainable
sourcingof tomatoeslocally.Forthis
project, the Government of
Maharashtra in2013 registeredover
1600 farmers who grow tomatoes
on over 2000 acres.
5) Prabhat : ‘Prabhat’ (Dawn) is a
program which focuses on
communities around our factories.

30. The areasof interventionare Health
& Hygiene, raising livelihoods and
conserving water. The Water
Conservation initiative is led by
Hindustan Unilever Foundation, a
wholly owned subsidiary of HUL
which looks at improving the water
security in selected regions. The
Livelihood programme aims to
empowertoday’syouthbyproviding
themwithemployable skills thereby
enhancing their livelihoods. HUL is
collaborating with NGOs to
implement the project.
6) Sanjivani : HUL runs a free mobile
medical service camp -- Sanjivani --
near its Doom Dooma Factory in
Assam. The aim is to provide free
mobile medical facilityinthe interior
villages of Assam. There are two
mobile vans dedicated to the
project, each vehicle has one male
and one female doctor, two nurses,
a medical attendant (helper) and a
driver. The vans are equipped with
basic kits such as diagnostic kit,
blood pressure measuring unit,
medicines and a mobile stretcher.
The Sanjivani team has provided
medical assistance tonearly2.5lakh
patients since its inception in 2003
and covered more than four
thousand camps till July 2013.
Branding & Strategy
Lakmé remains the dominant player in
the Rs 1,100-crore organised make-up
market in India. With cosmetics use
growing in India and more women
moving into the urban workforce,
experts say the pressure to come up with
chic products is growing. Women are
increasingly getting aspirational and also
have the means to ensure they can buy
what they want in their drive to enhance
their beauty.
Lakmé has responded to these mutiple
challenges with a range of products from
eyeliners, compacts, blushers, nail polish
to lipsticks under 9 to 5. Lip and nail
colour, in particular, are new additions to
the range. The packaging has also been
revamped to make it exciting for the
working woman.
Lakmé has also played on pricing for its
revamped range for the working woman.
It is priced between Rs 200 and Rs 600,
bringing it within the reach of most.
International brands such as Revlon,
Chambor and even L'Oreal Paris are all
priced over Rs 500, and Maybelline is the
only mass-market brand among the
global players.
The Fashion Week has been a part of
India’s biggest cosmetics brand’s
strategy to go in for an image makeover
– from a brand of the masses to the
preferred brand of the classes as well.
The associated started 10 years ago
when a survey by Hindustan Unilever,
which had then acquired the brand from
the Tatas, showed that the youth
perceived Lakmé to be their mothers’
brand. Lakmé has since graduated to
become the co-host of the Fashion Week
along with IMG, a sports and fashion
events management company. The
association with Fashion Week has
helped Lakmé to traverse the entire
spectrum from the mass-end to the
premium, unlike other cosmetic brands.
Lakmé is well on its course to become a

31. more premium brand. The Fashion
Week, the 140 Lakmé Beauty Salons,
which offer consumers a ‘Beauty Sutra’
experience, and now the recently-
launched Lakmé Studio, are all part of
those efforts. Lakmé also partners with
leading cosmetic house Milan-based
Intercos Italia, Germany’s Schwann
Stabilo and Paris-based Fiabila to
combine international cosmetics
technology with its understanding of the
Indian woman’s needs.Lakmé's high-end
products now contribute over 10 per
cent of Lakmé’s overall revenues.
But not everyone is convinced whether
these efforts have been enough for the
brand to make alasting impression in the
premium space. Experts say what goes
against Lakmé in its bid to take on the
likes of L’Oreal and Revlon is its image.
“Lakmé is still the Air Deccan of the
Indian cosmetics industry. Its image of a
budget brand for the masses will be
difficult to shed.
The one-size-fits-all strategy won’t work.
Lakmé needs to create two distinct
brands and formulate separate
strategies for the masses and the classes.
The journey to become a leading
premium cosmetics brand in the Rs 500-
700 crore modern retail market is
proving to be a long haul. With the
increasing number of new brands now
available in the Indian market, Lakmé
over the last five years has been losing
market share in the modern trade
format. Consumers who enter the
market for the first time usually choose
among Lakmé, L’Oreal, Chambor and
MayBelline. And here L’Oreal has the
largest market share.
Further, regular cosmetics users are
moving from the masstige (a marketing
term meaning prestigefor the masses)to
the premium and prestige brands. The
prestige and premium categories have
higher growth as compared to the
masstige segment.
Cosmetics is a Rs 2000 crore market, out
of which the mid-premium is a Rs 1000
crore category where L’Oreal is the
market leader. The premium is a Rs 300
crore category with players like Estee
Lauder, Shisiedo and Lancome and the
mass segment is a Rs 700 crore market.
Lakmé’s bid for the premium segment
got a major push when Lakmé Salon
launched a first-of-its-kind Lakmé Studio
in Delhi which will offer ultra-premium
beauty services. Lakmé Studio has tied
up with Nail Spa that uses the latest nail
technology from the US to bring a
bouquet of services like nail extensions
and nail art.
The strong point of Lakmé is its reach.
With a retail reach of close to 1000
counters and an overall direct reach of
40,000 stores, Lakmé is one of the most
widely available brands. This large
presence gives the brand volumes and
makes it the largest cosmetics brand in
India.
The association with the Fashion Week
has given us the ability to launch a new
range of products catering to the lower
masstigeand masstigesegments.Players
in the masstige segment include Revlon,
L’Oreal, Chambor, Maybelline and
Colourbar.
Deviating from the traditional mode of
advertising, Lakmé Lever, part of the
Hindustan Unilever Ltd (HUL) has opted

32. for a different strategy to market its new
launch ‘Lakmé Pure Defense’. The
company has deployed a bevy of beauty
advisors at 1200 Lakmé retail outlets
across the country to promote its new
launch-dumping mass media ad
campaigns. According to industry
analysts, Indian skin care majors are
increasingly opting for direct marketing
concept to create awareness for their
products.” Recognising the growing
significance of targeted marketing, HUL
is now using this method to woo
consumers at malls, retail outlets and
departmental stores.
SWOT Analysis of Lakmé
Since market liberalization, several
multinational companies, such as Revlon,
Coty, Oriflame, Chambor, Avon, Yardley,
NinaRicci,GarnierLaboratories,andL'oreal,
have entered the Indian market. These
companies initially cashed in on their
international brand image; however, repeat
purchases were not forthcoming because
the productswere not pricedcompetitively.
Consequently, these companies became
price-sensitiveandmostof the international
brands are now priced competitively in the
Indian market.
The colour cosmetic segment which has
Indian players such as Lakmé Lever, Tips
& Toes and Shenaz Hussain and
multinational company players such as J.
L. Morrison, Ponds, Unilever and Colgate
Palmolive, offers the highest
competition. Domestic players like
Lakmé, Tips & Toes and My Fair Lady,
mainly dominate this market.
Revlon has a market share of 80% in the
premium market. Lakmé is the overall
market leader in the colour cosmetic
segment (lip care and nailenamel) with a
wide range of products and prices, both.
The organised colour cosmetics market is
estimated at Rs 340 crore currently.
Revlon's sales account for Rs 60 crore of
that. Lakmé leads the market with sales
of Rs 100 crore. Lakmé, has recently
joined forces with Hindustan Lever
Limited (HLL) and calls itself Lakmé-
Lever.
Other international brands in the sector
include L'Oreal, Revlon, Maybelline,
Benckiser and Avon with a major part of
the rest, some of them engaged in the
multi-level-marketing model for their
products.
The most important global players are
already in India (except perhaps Estee
Lauder, Mary Ann Kay, Kao and Body
Shop) and are in an advanced stage of
market development. They are already
exploiting prospects based on imports of
active ingredients, packaging and
completely built products. In that regard,
new entrants have to contend with
serious competition in India from localas
well as global players.
Multinationals feel that Indian
companies - Lakmé, Pond's, Nivea-
makers J. L.Morrison and Tips & Toes
makers Paramount Cosmetics - have not
identified the changing needs of the new
Indian woman. It is therefore that
Switzerland's Torstone's Chambor,
Sweden's Oriflame, USA's Avon
Cosmetics, Revlon, Benckiser (Coty
Vitacare), Paris-based Escada group and
Laboratories Garnier (Synergie) are
ambitiously fishing in the Indian waters.
It is not coincidence that many of these
MNCs entered the Indian market in the

33. mid-Nineties. Fired with the zeal of
changing the complexion of the
cosmetics market, they are fuelling the
change using satellite television,
women's magazines and beauty
pageants.
Maybelline competes with Revlon and
Lakmé in the colour cosmetics market in
India. Revlon too has grown 65 per cent
to strengthen its share to 13 per cent
during the period. As per the data,
Lakmé's share stands at 34 per cent, and
that of Elle 18 is 25 per cent - both of
which have suffered a de-growth over
the previous period. The lip and nail
colour market, at Rs 107 crore, has
registered a growth of 11 per cent.
Mass market products account for a
major share, around 70 per cent, while
the premium segment accounts only for
a mere 9 per cent in lipsticks and 5 per
cent in nail enamels.
Strengths:
1. local brand of specific a
relevance to India.
2. Strong R&D capability, well
linked with business.
3. Integrated supply chain and
well spread manufacturing
units.
4. Ability to deliver Cost Savings.
5. Access to Unilever global
technology capability and
sharing of best practices from
other Unilever
Weaknesses:
1. Price positioning in some
categories allows for low price
competition
2. Varying quality range in its
products.
3. Falling Quality of Lame salons
Opportunities :
1. Brand growth through
increased consumption depth
and frequency of usage across
all categories
2. Upgrading consumers through
innovation tonew levels of
quality and performance.
3. Building brand image by
collaborating with top
designers in Lakmé Fashion
week
Threats :
1. Aggressive price competition
from local and multinational
players.
2. Spurious/counterfeit products
in rural areas and small towns.
3. Non Existence of brand image
in long Run
PEST Analysis
PEST analysis is a part of external macro-
environment in which the firm operates can be
expressed in terms of the following factors:
 Political
 Economical
 Social
 Technological

34. To analyse various macro environmental
factors we use PEST analysis. PEST analysis fits
into an overall environmental scan.
Political Factors
Some of the political factors to take into
consideration are legal issues, rules and
regulations of the government and various
others informal as well as formal rules under
which a firm must act. Some of these political
factors are:
Tax Policy: the company has to bear a tax rate
of 30%, which is thehighest amongst allthe tax
rates, as the corporate tax rate. This reduces
the profits of the company.
Environmental Regulations: as per the norms
of the government thecompany has to convert
30%of the land area into green land to make
the environment eco-friendly, incurring extra
cost for the company.
Trade Restrictions& Tariffs: the company has
to bear charges for crossing the state borders
for the purchase of raw materials and the
delivery of finished product.
Economic Factors
The purchasing power of a prospective
customer as well as the firm's cost of capital is
affected by various economic factors. Some
economic factors include:
Inflation Rate: the inflationary period is
adversely affecting the company as the raw
materials, machineries, etc. have to be
purchased at a higher price.
Interest Rates: the rate of interest on
corporate loan is 12% and the company has to
pay a tax of 60 lakhs per year as tax.
Social Factors
Demographic and cultural aspects form a part
of the social factors. These factors affect the
customer needs and size of the potential
market. Some social factors include:
Health Consciousness: keeping the safety of
the end users and social responsibility in mind
the company has used the chemicals that are
not harmful for the skin and are a bit costly
than the other chemicals.
Environment Norms: keeping the
environment norms in mind, the company has
converted 30% of its land into the green area
and also used eco- friendly paper for the
purpose of packaging.
Emphasis on Safety: the company has
emphasized on employee safety and has taken
a employees' insurance policy of Rs.1 crore
with an annual premium of Rs. 50000/-
Technological Factors
Technological factors include ecological and
environmental aspects. Some technological
factors are as follows:
Research and Development: the company will
have to spend a lot on the research and
development of the product in the upcoming
years as the company has the advantage of
being a pioneer in launching such a product in
the Indian market and the product will be
easily copied by the competitors. Thus, the
company will have to continue investing in the
research and development activities to keep a
firm hold in the market.
Technology's Effect on Firm's Offering: The
increase in the R&D cost will affect the firm's
offering as thecost of the product will increase
with increase in R&D cost.
Segmentation, Targeting and
Positioning
Market Segmentation
 Market segmentationisamarketing
conceptwhich dividesthe complete
market set up into smaller subsets
comprising of consumers with a
similar taste, demand and
preference.

35.  A market segment is a small unit
within a large market comprising of
likeminded individuals.
 One market segment is totally
distinct from the other segment.
 A market segment comprises of
individuals who think on the same
lines and have similar interests.
 The individuals from the same
segmentrespondina similarwayto
the fluctuations in the market.
Basis of Market Segmentation
 Gender
The marketers divide the market
into smaller segments based on
gender. Both men and women
have different interests and
preferences, and thus the need
for segmentation.
Organizations need to have
different marketing strategies for
men which would obviously not
work in case of females.
A woman would not purchase a
product meant for males and vice
a versa.
The segmentation of the market
as per the gender is important in
many industries like cosmetics,
footwear, jewellery and apparel
industries.
 Age Group
Division on the basis of age group
of the target audience is also one
of the ways of market
segmentation.
The products and marketing
strategies for teenagers would
obviously be different than kids.
Age group (0 - 10 years) - Toys,
Nappies, Baby Food, Prams
Age Group (10 - 20 years) - Toys,
Apparels, Books, School Bags
Age group (20 years and above) -
Cosmetics, Anti-Ageing Products,
Magazines, apparels and so on
 Income
Marketers divide the consumers
into small segments as per their
income. Individuals are classified
into segments according to their
monthly earnings.
The three categories are:
 High Income Group
 Medium Income Group
 Low Income Group
Stores catering to the higher
income group would have
different range of products and
strategies as compared to stores
which target the lower income
group.
Pantaloon, Carrefour, Shopper’s
stop target the high income
group as compared to Vishal
Retail, Reliance Retail or Big
bazaar who cater to the
individuals belonging to the
lower income segment.
 Marital Status
Market segmentation can also be
as per the marital status of the

36. individuals. Travel agencies
would not have similar holiday
packages for bachelors and
married couples.
 Occupation
Office goers would have different
needs as compared to school &
college students.
Types of Market Segmentation
1)Demographic
In this segment Lakmé targeted Females
from the age group of 24 – 42 & now they
are targeting young women.
2)Geographic
In this Lakmé has mainly focused on the
urban area.
3)Psychographic
In this, women are more concerned about
their looks and how they feel about it. So,
Lakmé has providedthemwithawide range
of skin care products that has helped them
come off their age and now. They are
constantlychangingtheirlifestyle&Lakmé is
constantlyinnovatingtomatchupwiththeir
wants.
Lakmé has targeted nearly the whole of
INDIA based on these different types of
segmentationbecauseof the factthatIndian
womeningeneral donothave afairskinlike
that of their western counterparts.
Thusitbecomesnatural forIndianwomento
try and look good and use beauty products
thathelpenhance theirlooksandstyle.With
globalization and liberalization of Indian
economy and the changing demographics
and income levels there is more and more
concern to look good as today's Indian
woman is no longer confined to her home
but is a big contributor to the growth of
Indian economy.
Targeting & Positioning
As we mentioned above that Lakmé was
originally a TATA company. Lakmé Unilever
Limited which was a 50:50 joint venture of
Lakmé and HUL was formedin1995. Finally,
in 1998, HUL acquired the remaining 50%
stake to make Lakmé a completely HUL
brand. Lakmé offers both skin care and
cosmetics products. It has a wide variety of
products which includes products for lips,
nails,eyes,face andskin.Mostof the Lakmé
ads feature beautiful girls who woo guys
withtheirLakmé-caredlips,nailsorskin.The
tagline of the brandis:‘OnTopof theWorld’.
Just to prove the point that the fashion
orientedpremiumpositionof the brand has
not changed over the last 20 years. It tries
to positionitself amongstitsconsumersasa
product range that will help them look
beautiful asisevidentfromitscatchphrases:
1. On top of the world.
2. Source of radiant beauty.
Positioning strategies for Lakmé include the
following characteristics to determine its
personality:
Positioning by corporate identity:
As Lakmé is now a completely owned
subsidy of HUL, it was able to position itself
well in the market due to the name and
goodwill of its parent company.
Positioning by attribute and benefits:
Lakmé was the first cosmetic company
launchedinIndia.Therefore,ithadagreater
hand to position itself well in the Indian

37. market, it included attributes and benefits
like:
•Someone who takes care of your beauty
needs.
•A longlastingbeautificationproductrange.
•Something that is not harsh on your body
or harmful for your beauty.
•A product that helps you get a beautiful
skin.
•A cosmetic product that you can wear for
the entire day and not a special occasion.
•Someone who tells you right things about
looking good.
•It's an Indian cosmetic brand.
•It covers all facets of beauty care for
women.
The followingfactorsof Lakmé'spersonality
help in differentiation of its products from
the Competition:
•It covers all facts of beauty care.
•It helpsarmthe consumerwithproductsto
pamperherfromheadto toe i.e.acomplete
product range.
•The quality of its products which can be
only gauged by the consumer perception of
the brand.
•India's firstbeauty brand and is there for a
long time in the market (since
independence).
However, most of the other foreign brands
have come only lately.
Marketing Mix (4P's of marketing)
Marketing mix which is one of the main
factors of marketing, has become most
necessary for any organization to grow and
survive.Marketingmix isamongthe famous
marketingtermandcoversbasicelementsof
tactical components of marketing plan.
Four P’s of marketing need to think before
applying any marketing strategy to any
business segment.Marketing mix moreover
describesthe strategicpositionof productin
market.
PRODUCT
We have mentioned the Lakmé Skin Care
products above in the Product Description
part. Lakmé develops and manufactures its
products to satisfy particular needs of
society at large. The product range that
Lakmé Skin care has to offer is as follows:
1) Sunscreen Lotion
2) Lakmé Matt effect Purifying Face
Wash
3) Lakmé Pure Defense Detoxifying
Facial Wash
4) Lakmé Intense Body Milk
Lakmé also has a wide range of products in
colour cosmetics that bring visible results.
To add to this vast is a range of specialized
skincare productsforthe discerningwomen.
Keeping skin looking healthy and glowing is
also a part of looking
great. Lakmé provide the complete package

38. with the skin care range
andthe wide range of colourstospiceupthe
look.
PRICE
Price isthe secondcomponentof marketing
mix and can be determined by company
based on various economic factors and cost
of production and marketing. Price is what
consumers actually pay for product in
marketing mix.
Lakmé haspriceditsproductsreasonablyfor
Indiancustomers.Theyhave a vast range of
products which are priced differently and
cater to all types of customers in the
country. Indian women are price cautions
andtheywantvalue formoneyandtheyalso
spend wisely, they avoidexperimenting and
therefore taking the above things into
consideration,Lakmé makes sure that they
provide the best qualityin the best possible
price, hence leaving behind their
competitors.
PLACE
Costumers will purchase the product from
place where it is located.Place inmarketing
mix can be seen as distribution channel and
cover physical store as well as virtual store
on internet.
There are two categories of channels of
distribution
Prestige - Department stores, specialty
stores and chain department stores.
Broad - food stores, cosmetic discounters,
warehouse clubs,and mass merchandisers.
Lakmé is a product range that caters to the
beautification needs of not only women in
their adult age but in today's context
teenagers also. It has a brand personality of
someone who takes care of you and your
beauty needs. It tries to position itself
amongst its consumers as a product range
that will help them look beautiful as is
evident from its catchphrases:
1. On top of the world!
2. Source of radiant beauty.
Lakmé Skin Care Products are easily
available. From departmental stores to big
retail stores like Shopper's Stop, etc. will
have Lakmé Products available with them.
Malls have a special demonstration of the
products for the customers who are willing
to buy the products.
PROMOTION
The fourth component of marketing mix
covers way of communications being used
by marketers to convey product message in
a marketplace. There various ways to
promote product by means of word of
mouth,advertising,publicrelationandpoint
of sale.

39. Promotional Strategies
Purpose of Promotion
To increase customerawarenessbothof the
productsand knowledge aboutthe products
desirable features and benefits.
Elements of Promotion
1. Personal selling - Lakmé uses
personally selling as a very important
aspectof promotion.The demonstration
of products and making sure that the
customers try experimenting with the
new products are done through
personal selling.
2. Advertising- Lakmé advertises its
products on a regular basis, they use
celebrities like Yana Gupta, Indrani Das
Gupta, etc for their advertising
campaigns.The mediumof advertisingis
print media like newspapers, magazines
and television.
3. Direct Marketing- Lakmé has kept in
touch with their customers through
mails, telephone and non-personal
contact tools.They take feedbacksfrom
their specific customers and try
providing them with what they want.
4. Trail and service promotion- The
demonstration of their products and
services that they provide at various
malls and also the discounts that they
offer on their products is a part of this
promotion. They have offers such as A
small 30ml tube of the new Skin
brightening gel free with the Sunscreen
lotion.
5. Sponsorship- They support certain
events or people for their promotion
andtocome inthe eyesofeverypossible
consumer like the Lakmé fashion week,
etc.
Objectives Of Promotional Strategy
1. To provide information and educate
the customers
2. To increase demandand usage of the
products.
3. To differentiate the products.
4. To stabilize existing activity levels
Segmentation
 On the basis of density: Urban, Sub-
urban, Rural
 On the basis of gender: Male ,Female
 On the basis of demographic age: (18-
25, 25-35, 35-45, 45-55, 55-65)
 On the basis of occupation: Working
women house wife students
 On the basis of social class: Working
Class, Upper Class, Middle Class Lower
Class
 On the basis of psychographic
lifestyle: Culture oriented, Sports
oriented, Outdoor oriented
 Geographic region: India (Focusing on
Delhi, Mumbai, Kolkata, Bangalore
and Jaipur)
Targeting
The target market of the product is as follows:
 On the basis of density

40.  On the basis of gender
 On the basis of demographic age
 On the basis of occupation
 On the basis of social class
 On the basis of psychographic lifestyle
 Geographic region
Positioning
Positioning can be defined as the process or
steps by which we ensure that the company's
product have a unique identity and image in
the consumers mind.
The main purpose behind it is to fix the brand
in the consumers psyche so as to maximize its
prospective benefit to the company goal is to
locate the brand in the minds of consumers to
maximize the potential benefit to the firm.
As a result of positioning, a successful creation
of value proposition is created in the
consumers mind.
The company is positioning its product as the
first anti-sweat lotion.
The company will promote its product using
various advertisement tools such as television
ads, print ads and broachers.
Marketing & Sales Strategy
Brief Analysis
The current market of fashion products is
increasinginitssize andhasgrownata brisk
rate of around 10% in the past couple of
years. Hence with its current infrastructure
and distributionnetworkof Lakmé,itcando
wonders in this market. With the help of
Lakmé;fashionweekithas triedto make an
international impact so it has huge amount
of scope to expanditsreachto international
arena. Also in this international positioning
Unilever the mother company will help in
the distribution network.
Macro Environment
 Demographic factors:
o India has a large population
out of which a major
segmentisthe youth,which
in turn is an advantage for
the cosmetic industry.
o Out of the large population
present, another aspect
important for the cosmetics
and hair care industryisthe
age mix. Our country has a
good percentage of the
youth which is the major
consumer base for the
products.
o Education and increased
awareness levels are also
additional reasons. The
need to look good and
present oneself well is on
the rise due to this, thereby
giving a boost to the
cosmetic industry.
 Economic factors:
o The higher income levelsof
the consumers and the
amount of disposable
incomes affect their
purchasing powers. The
need for personal hygiene
and grooming has a high
impact on the industry.
 Social-Cultural factors:
o With the changing times,
there is a change in the
people's habits, attitudes
and behaviour. More and
more prefertouse thelatest
cosmetics and are generally
aware of what they want
and what suits them. This
gives a major boost to the
sales and scope to the
company and the industry.
o Fashion also plays a major
role in influencing the
consumer's mind and in his
decision making abilities

41. and preference of products
he chooses to use.
Micro Environmental Factors
These are internal factors close to the
company that have a direct impact on the
company's strategy. These factors include:
 Customers:Organizationssurviveon
the basis of meeting the needs,
wants and providing benefits for
theircustomers.Failuretodoso will
result in a failed business strategy.
 Employees: Employing the correct
staff and keeping these staff
motivatedisan essential partof the
strategic planning process of an
organization. Training and
development plays an essential role
particular in service sector
marketing in-order to gain a
competitive edge.
 Suppliers: Increase in raw material
priceswill have aknock on effecton
the marketing mix strategy of an
organization. Prices may be forced
up as a result. Closer supplier
relationships are one way of
ensuring competitive and quality
products for an organization.
 Media: Positive or adverse media
attentions to a company's product
or service caninsome casesmakeor
break it. Consumer programmes
with a wider and more direct
audience can also have a very
powerful and positive impact,
forcingthe companyto change their
tactics.
 Competitors:The name of the game
inmarketingisdifferentiation.What
benefitcanthe companyofferwhich
is better than their competitors?
Can they sustain this differentiation
over a period of time from their
competitors? Competitor analysis
and monitoring is crucial if the
company is to maintain its position
within the market. Competitors
include Revlon, Oriflame, Mac,
Avon, Maybelline,etc.
Product
Face
A complete line of foundations,powdersand
blushers for all skin types and complexions.
Come in a range of flattering finishes and
beautiful shades.
Price
As the product umbrella of Lakmé is vast,
whichcatersforcosmeticandskincare need
for almost all kind of women, hence the
pricingstructure reflectsvariationinmarket-
segment requirements, purchase timings
and order levels. Lakmé product's price is
uniformly administered across the country
with slight variation for the products
delivered abroad.
PLACE AND PROMOTION
Lakmé -Advertising
By not following the traditional mode of
advertising, Lakmé Unilever, adopted
different strategy for the product launches
The company do not use mass media
marketing for the launch or advertising
Lakmé Products; They have adopted the
education'strategythatmeanstheyeducate
their customer about the use of the
products.
Getting the focus right
The 'aspirational' qualification would mean
Lakmé; would compete at what the
companyterms the 'upper-mass'(premium)
end of the colour cosmetics spectrum
(productspricedbetween Rs 85 and Rs 250)
where a slew of competitors are already
slugging it out.

42. And fashion consultants like Meher
Castelino believe the brand commands an
edge at the high-end: ''By appropriating the
fashion platform for itself, Lakmé; has
entrenched itself at the glamour-end.''
Getting the spread right
The premium segment, however, is just a
slice of the Indian market for colour
cosmetics (estimated size: Rs 275 crore).
Today, the company has three brands:
Lakmé; itself, which will be positioned as a
fashion-brand.
Advertising Strategies by Lakmé
In-store sampling
Lakmé has in-store trail products. Since it in
the cosmetics market it is very essential to
provide samples, many stores in Mumbai
from time to time have Lakmé sampling
offers. Where they allow you to try the
product and then buy it.
Brand placement & Event sponsorship
Brand placement often referred to, as
product placement is the sales promotions
technique of getting a marketer's brand
featured in movies and television shows.
When a firm sponsors or co-sponsors an
event, the brand featured in an event
immediatelygains credibility with the event
audience. The audience attending an event
already has a positive attitude and affinity
for the contest that they choose to attend.
When this audience encounters a brand in
thisvery favourable receptionenvironment,
the brand benefits from the already
favourable audience attitude. Lakmé India
FashionWeek,thuscreatesa positive image
and has a huge impact on the sales of a
brand.
Lakmé's association with the annual Lakmé
India Fashion Week (LIFW) has helped
significantly in the brand's growth chart. A
beauty brand, like Lakmé, must always
remain contemporary and define trends.
The LIFWhascertainlyhelped Lakméacquire
that position. Product ranges have been
launched every year to coincide with the
event and have met with considerable
success.
Internet promotions
They are the most recent form of sales
promotions. They are promotions that are
done via the Internet. It is becoming
increasinglypopularbecauseof thelarge use
of Internet. Lakmé offers its wide range of
skinand hair products as well as salonsthru
its website www.Lakméindia.com
Line Branding
Lakmé is a brand launched with a distinct
concept - "source of radiant beauty". The
brand appeals to a distinct market segment
who appreciate and like the brand concept.
The core ideaisthatthe brandconnectswith
the consumergroup.Now the customersdo
nottendtobe contentwiththe one product,
which the brand offers. Rather they want
additional product which go hand in hand
with the brand concept or application; for
example aLakmé userwantsall the products
which enhance beauty-beauty lotion, deep
pore cleansing cream, lipsticks, nail enamel,
eye makeup etc.
Line branding strategy illustrates how well
cultivated brand can be extended on to a
host of related products under a common
concept.Thisstrategyseekstopenetrate the
customer rather than penetrating the
market. It seeks to fulfil all complementary
needs that surround a basic need. Line
brands start witha product butlater extend
to a whole range of complementary
products.The productsinthe line draw their
identity from the main brand. Marketing
products as a line enhances the brand's
marketingpowerratherthansellingthemas
an individual brand.

43. Lakmé- Retail & Distribution
Channels of distribution are categorized as
follows -
Broad - Cosmetic discounters,
Supermarkets, and mass merchandisers.
Examples are D-Mart, Big Bazaar etc.
Alternative - is identified by five different
marketing methods:
 Direct Sales
 Direct Mail/TV/Print
 Free Standing Stores
 Health Food Stores
 Salons
Lakmé's Retail marketing has evolved, the
consumerhas become more knowledgeable
and demanding, and cosmetics themselves
have become more sophisticated and
innovative. About the only thing that has
remainedconstantinthe cosmeticsindustry
overthe yearsis women'slove of cosmetics.
Technological advanceshaveallowedforthe
creation of multifunctional products of
Lakmé - products that perform more than
their basic role. For example, Lakmé
cosmetics that contain ceramides and
vitamins, as well as UV protection are
popular. Today, foundations protect from
ultraviolet rays, lipsticks moisturize and
mascaras thicken and condition. These
Lakmé Multifunctional products have
enjoyed much success, thanks to more
discerning consumers who are demanding
value for money in their colour cosmetics
purchases.
 The biggest performance
development in Lakmé colour
cosmetics has been the creation of
"stay-on" products.
 Lakmé has alsoattractedconsumers
by products that are easier to apply
and convenient to use, such as pen
lipsticksandfast-dryingnailpolishes
 Women buy the majority of their
cosmetics from mass, drug or food
stores where selecting products
yourself is the norm. Lakmé has
introduceditswideproductrange at
all these facilities.
 Research shows that sales doubles
when self-service is offered. Giving
people the choice attracted new
customers to Lakmé.
 Innovative technologies have
allowed manufacturers to create
dramatically improved cosmetic
samples and to distribute samples
beyond the point-of-sale, even into
the home. Lakmé believesthat the
mosteffective samplingvehiclesare
those designed to reach consumers
at home.
 Greater product penetration in
suburban and rural areas, frequent
product launches and greater
interest in personal grooming,
especially among the younger
population,drivesgrowthof Lakmé.
Higher levels of disposable income
and lower product prices through
smaller packaging sizes made these
cosmetics affordable to more
consumers.
 SKUs - Selling Kit Unit sizes and
packagingcan be effectivelyusedto
generate trial and initiate demand
for a product, without
compromising on price. Lakmé has
various SKUs in colour cosmetics.
Lakmé is also emphasising on making the
brand prominently visible in the crowded
stores. Their outlet visibility programmes
cover over 25,000 outlets in key cities,
deploying a large number of third party
merchandisers and agencies to ensure
superior display of their products. Greater
interactioniskeytotouchingconsumersand
they are using the point-of-purchase for a
much higher level of direct contact. For
example, Lakmé Beauty Advisors in key

44. outlets promote sales and provide specific
information and product testing,facilitating
an informed choice to women seeking 4
beauty solutions. Encouraged by this, they
are undertaking a similar initiative across
many of their other brands where in-store
facilitators offer promotions and provide
product information.
For many developing categories, such in-
store sampling, education and experience
will play a major role in building the brand.
Lakmé startedusingCRM. It setupdozensof
beauty salons across the country, where it
has Lakmé beauty advisors who interact
directly with customers and advise them.
This helps the company get firsthand
knowledge of customer preferences. As a
result, sales at the outlets are growing by
42%. This is way above the 10% to 25%
enjoyed by the 60,000 outlets that sell
Lakmé products sans advisors.
Standing amidst the jamboree of what is,
arguably, India's first fashion summit, the
Lakmé;IndiaFashionWeek(LIFWfor short),
Anil Chopra, 51, the affable Director who
heads Lakmé; Unilever Ltd is bullish about
the brand's new positioning: ''By taking on
the fashionandglamour platform,we have,
in a way, not justtakena lead(overothers),
butalsogota virtual ownershipof thisplank.
It will be verydifficultforanyotherbrandto
adopt a similar approach.'' And reactions to
the born-again Lakmé; at the LIFW did
suggest that Chopra and the brand were on
to a good thing. ''Lakmé; is at the forefront
of product-innovation.Almosteveryonehas
a Lakmé;-something in their (cosmetics)
collection,'' gushes Mumbai-based fashion
choreographer Lubna Adams. So, is Lakmé;
back?
Current Market Strategy
 Loyalty programmes and reward
systems: As part of its marketing
strategy, Lakmé Unilever Ltd
removed loyalty programmes and
encouraged beauty salons. Lakmé
Unilever has also launched 'New
Lakmé Beauty Salon Rewards
Programme' with a tagline 'Get
benefits worth Rs 3,225 for Rs 350
only'toattract customers.There are
also different magazines and
booklets designed with acme
promotion and stuffs.
 New look of Website: he company
also re launched a new looking
Website Lakméindia.com to have a
change in marketing of the
company.
 Direct Marketing for 'Lakmé Pure
Defense': Deviating from the
traditional mode of advertising,
Lakmé Unilever opted for direct
marketing concept to create
awareness for their new launch
'Lakmé Pure Defense'.The company
deployed a bevy of beauty advisors
at 1200 Lakmé retail outlets across
the country to promote its new
launch-dumping mass media ad
campaigns. Their strategy is not to
use mass media advertising to
promote Lakmé Pure Defense-the
first of its kind across the globe.
Instead, they opted for the
'education' route to create
awareness for their product.
 Tie-upwithSchwarzkopf: Lakmé had
a recent tie up with FMCG Player
Henkel group's high end hair
product brands Schwarzkopf
Professional. Currently, Lakmé has
over 100 salons across the country.
Underthisexclusive pact, Lakmé will
use Schwarzkopf hair care products
in all its salons. In return,
Schwarzkopf willprovidetrainingfor
hairdressers in the salons.
 Lunched in Sri Lanka: Hemas
Marketing has expanded the range
of Lakmé skin care products it
marketsin Sri Lanka, and unveileda

45. new international logo and image
forthe brand.LaunchedinColombo,
the additionstothe Lakmé skincare
range are Nourishing Cold Cream,
Nourishing Body Lotion, pH-
Balanced Face Wash, Calamine
Lotion, Sun Screen Lotion and Hair
Remover.
 In 2008, deviating from the
traditional mode of advertising,
Lakmé Lever, part of the Hindustan
Unilever Ltd (HUL) had opted for a
different strategy to market its new
launch ‘Lakmé Pure Defense’. The
company had deployed a bevy of
beautyadvisorsat1200 Lakmé retail
outlets across the country to
promote its new launch-dumping
mass media ad campaigns. On the
other hand, HUL’s arch rival Procter
& Gamble India(P&G) hadkickedoff
an aggressive consumer activation
programme to popularise its skin
care brand ‘Olay’ in Mumbai.
Clearly,the accent seemedtobe on
‘direct consumer contact’ in the Rs
2,200 crore Indianskincare market.
 As per Lakmé on it’s one of the
initiative, their strategy was not to
use mass media advertising to
promote Lakmé Pure Defense-the
first of its kind across the globe.
Instead, they had opted for the
‘education’ route to create
awareness for our new product.”
With the help of Unilever skincare
technology, the company had
developed ‘Lakmé Pure Defense’ in
India.
 According to industry analysts,
Indian skin care majors are
increasingly opting for direct
marketing concept to create
awareness for their products.”
Recognisingthegrowingsignificance
of targetedmarketing,HULandP&G
are now using this method to woo
consumers at malls, retail outlets
anddepartmental stores,”explained
an analyst based in Mumbai. With
increasingcompetition,the sectoris
expected to register a healthy
growththisyear. To supportits new
launch, Lakmé alsointroduced‘Pure
Defense-Anti Pollution facials’ at
Lakmé Beauty Salons across the
country.”
Positioning
Lakmé’s positioningin terms of personality
and self concept: Brand positioning:
Brand Positioning is a marketing strategy
that aims to make a brand occupy a
distinct position, relative to competing
brands, in the mind of the customer.
Lakmé is a product range that caters to the
beautification needs of not only women in
their adultage but in today's context
teenagers also. It has a brand personality of
someone who takes care of you and your
beauty needs. It tries to position itself
amongst its consumers as a product
rangethatwill helpthemlookbeautiful as is
evidentfromitscatchphrases:Ontop of the
world!
Source of radiant beauty
Lakmé has a range of beauty products to
offer to its consumers. Some of the ways in
which it tries to position itself:
1. Lakmé Hair Colour: magicof colours
(collage).2.Lakmé (versatile eye
shadow collection):rich,longlasting
and healthy make up.3.Lakmé fair
perfect: For flawlessly fair
skin!4.Lakmé face magic: dailywear
soufflé.5.Lakmé (skin vitalizer):
radiant skin, now and
forever.6.Lakmé (moisturizer):
radiant skin, now and forever.

46. 2. Lakmé nail polish and lipstick:
electric brilliance/sensual
brilliance/freespirit/peppermint/9
to 5
3. Lakmé sun expert (sunscreen): sun safe
hamesha!(Face the sunwithasmile). Lakmé
pure defense: anti-pollution
system.10.Lakmé Tropical Island
(cosmetics):defining the future of fashion.
Lakmé hair care (international): natural hair
care, a source of pleasure and well being
4. Lakmé hair next: exclusive range of
hairstyle products that give you that salon
look instantly.On the basis of above
mentionedpositioningstrategies Lakmé can
have the followingcharacteristics that
determine its personality:
Someone who takes care of your beauty
needs. A long lasting beautification product
range. Something that is not harsh on your
body or harmful for your beauty. A product
that provides you with an option of getting
beautiful hair.A productthathelpsyougeta
beautiful skin.
Itcoversall facetsof beautycare forwomen.
The followingfactorsof Lakmé'spersonality
help in differentiation of its products from
thecompetition:Itcoversallfacetsof beauty
care.
 It helps arm the consumer with
products to pamper her from head
to toe i.e. a complete product
range.
 The qualityof itsproductswhichcan
be only gauged by the consumer
perception of the brand.
India's first beauty brand and is there for a
long time in the market (since
independence).However, most of the other
foreign brands have come only lately.
Future Market Strategy
•Online e-group: Lakmé can form some e-
group like Sunsilk Gang of Girls GOG) to
understand consumer requirement. It
requires no formal surveys, easy to
administer,reducespaperwork.Inall itused
technology too effectively to promote the
brand and advertises the brand through e-
generation.
•Online ordering of Lakmé products
•Online appointments for Lakmé Beauty
Salon
Strategies under Product Mix
 New product lines can be added to
the existing one which may be
related or unrelated to the
company.
 Within the product line, they can
have different brands at different
price points to cater to different
segments of customer.
 Growth of Lakmé BeautySalonscan
provide better display of products

47. and a beauty adviser can make it
much more attractive in the eyes of
the customer.
 Packaging can be improved or
changedof Lakmé productsto make
it more attractive to the customer.
 Lakmé Salon is also trying to tie up
with financial institutions who
would provide finance to its
prospective franchisees. Going
forward, Model of franchising has
been successful, and they see it to
be a big contributor to our future
growth”.
 “Looking at the present scenario of
the beauty industry, it augurs to
grow at a healthy rate. The market
offerings will become more
specialized and we will see
organized players making their
mark. Lakmé Salon reiterates
Lakmé’s belief and commitment
towardsofferingholisticbeautycare
which stands strong