This document provides an overview of a project report that compares marketing strategies and products between Lakme and Revlon in India. It includes an introduction on the cosmetics industry in India and market trends. It also provides company profiles of Lakme and Revlon. The document outlines the objectives of the study and research methodology. It includes sections on data analysis, recommendations, and conclusions. The report was submitted by Honey Agarwal to fulfill requirements for a Bachelor's degree in business administration.

1. PROJECT REPORT
On
COMPARATIVE STUDIES BETWEEN LAKME AND
REVLON WITH THE REFRENCE OF THEIR PRODUCTS
V/s
SUBMITTED IN THE PARTIAL FULFILLMENT
TOWARDS THE AWARD
OF
B.B.A (Gen.), 3rd SEM
BATCH : 2010-2013
DR. BHIM RAO AMBEDHKAR University
ARYAN INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES
Sector 13, Avas Vikas Colony,Agra
Faculty Guide Submitted by:
MRS. APARNA PORWAL HONEY AGARWAL

2. DR.BHIM RAO AMBEDKAR UNIVERSITY, AGRA
CERTIFICATE
Certified that Ms. Honey agarwal of Aryan
institute of management of computer studies has
submitted her project report entitled
“COMPARATIVE STUDIES BETWEEN LAKME AND
REVLON WITH THE REFRENCE OF THEIR
PRODUCTS” under the guidance of Mrs. Aparna
Porwal.
After completion it successfully in the fulfillment
of requirement for the award of degree of bachelor
of business administration of “Aryan institute of
management of computer studies”.
Dr. S.K.Gupta AJAY SHARMA
(Director) (Head of dept.)
(AIMCS)

3. AKNOWLEDGEMENT
I HAVE GREAT PLEASURE IN PRESENTING MY PROJECT
ENTITLED LAKME AND REVLON. I TAKE THIS AN OPPORTUNITY
TO EXPRESS MY DEEPEST GRATITUDE & INEPTNESS TO ALL
THOSE WHO CONTRIBUTED INDIRECTLY THEIR VALUABLE TIME
& ASSISTED ME IN MY PROJECT.
I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL THE
FACULTY MEMBERS. FOR THIS APPROVAL & ALSO FOR HER
VALUABLE GUIDANCE & SUPPORT IN COMPLETING MY
PROJECT OF COMPARATIVE STUDIES BETWEEN LAKME AND
REVLON.
LAST BUT NOT THE LEAST I WOULD LIKE TO EXPRESS MY
SINCERE THANKS TO THOSE WHO DIRECTLY & INDIRECTLY
HELPED IN THIS PROJECT.

4. CONTENTS
 Introduction
 Brief overview of marketing strategies.
 Company Profile of Lakme
 Company Profile of Revlon
 Various Marketing strategies adopted by the two
Company along with product profile
 Objectives of the Study
 Research Methodology
 Data Analysis & Interpretation
 Suggestions and Recommendations
 Summary & Conclusion
 Appendix
 Questionnaire
 Bibliography

5. INTRODUCTION
Within a short span of the last five-six years, the use of
cosmetics by Indian consumers has increased significantly with more
and more women and men taking greater interest in personal
grooming, increasing disposable incomes, changing life styles,
influence of satellite television and greater product choice and
availability. With the demand for cosmetics on the rise and the
opening up of the market to foreign companies, many of the world’s
popular cosmetics brands entered the Indian market in the early and
mid-nineties and some more have set their sights on India.
This cosmetics and personal care industry has been growing at
an average rate of 20 per cent for the last few years. The growing
Indian cosmetics market offers promising prospects for international
brands. The growth rate in the cosmetics market reflects an
increasing demand for beauty care products in India. Perfumes and
fragrances, skin care, and hair care products are some of the major
segments with promising prospects for U.S. companies.
Penetration of most cosmetic and toiletries is very low in India.
Current consumption of many products is well below that of many
countries in Asia. The low market penetration of many cosmetics and
personal care products offers room for growth. The Indian toiletries

6. market is well developed and dominated by major multinational
companies and a few large Indian players.
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 is around US$
120 million, of which the U.S. has a share of approximately 10
percent. The objective of the study report is to analyze the consumer
satisfaction level of different brands, particularly focused on the
Lakme and Revlon products
Market Overview
The current size of the Indian cosmetic market is approximately
US$ 600 million. Of this, the fastest growing segment is cosmetics,
accounting for around US$ 60 million of the market. Industry sources
estimate a rapid growth rate of 20 percent per annum across different
segments of the cosmetics industry reflecting an increasing demand
for all kinds of beauty and personal care product. Growth has come
mainly from the low and medium-priced categories that account for
90 percent of the cosmetics market in terms of volume.
Even with a 20 percent average growth rate, the per capita
consumption of cosmetics is very low in India. Current per capita
expenditure on cosmetics is approximately US$ 0.68 cents as

7. compared to US$ 36.65 in other Asian countries. However, with
changing lifestyles, higher disposable incomes, increasing advertising,
penetration of satellite television, awareness of the western world and
growing importance of beauty pageants, there have been significant
changes and use of cosmetics is on the rise. Also, with the boom in
the Indian fashion world and the growth in the television industry,
there has been a rise in demand for professional beauty care
products. Cosmetic companies in India are placing increasing
emphasis on market research and targeting new market segments
such as teenagers, men and young women. Cosmetics constitute the
high growth segments. Nail enamels and lipsticks account for around
65 percent of total color cosmetic sales in India. Lakme, a brand
originally introduced by the Tata group of India, now bought over by
Hindustan Lever (HLL) of the Unilever group, Tips & Toes, another
domestic player, and Revlon dominate the US$ 60 million color
cosmetics market. Multinationals, Revlon of the U.S. and L'Oreal's
Maybelline has a dominant share of the small premium lipsticks and
nail enamels market. Mass-market products account for a major
share, while the premium segment accounts only for a mere 9 per
cent in lipsticks and 5 per cent in nail enamels. Lipsticks account for
nearly a third of the market at US$ 21 million, while the market for
nail enamels is estimated at around US$ 23 million. The color
cosmetics segment is very competitive and has a high penetration
level of 80 percent. Most other cosmetic products are estimated to be
used by less than 40 percent of the consumers.

8. Market Trends
Cosmetics are not just the domain of women any longer and
Indian men too are increasingly taking to the use of more and more
body sprays, perfumes and other cosmetics. With rising demand from
men, the Indian market is getting enlarged and many players are
coming out with cosmetic products especially skin care products for
men.
Import Market
Costs for importing products are much higher than producing it
in the country. India allows entry of imported cosmetics without any
restrictions but the average import tariff on cosmetics products is
currently very high at 39.2 percent. This makes imported products
very expensive for most consumers. Most foreign cosmetics companies
selling premium brands have had a difficult time developing the low
volume premium market in India. Many had to re-work price
strategies towards the mass segment. Price is not the only reason
responsible for their problems. Poor assessment of the size of the
upper middle and high-income groups, and price sensitivity even
within these groups, had added to their problems.
Competition
The Indian cosmetic market, which has been traditionally a
stronghold of a few major Indian players like Lakme has seen a lot of
foreign entrants like Revlon to the market within the last decade.
India is a very price sensitive market and the cosmetics and personal
care product companies, especially the new entrants have had to work

9. out new innovative strategies to suit Indian preferences and budgets
to establish a hold on the market and establish a niche market for
themselves.
Given the price-sensitivity of the Indian consumer who do not
normally prefer to fork out a large sum at one time, many cosmetic
companies launched their products in smaller pack sizes to make
them more affordable. Lakme and Revlon were the first to introduce
small pack sizes. Revlon introduced its small-range of 8 ml nail
polishes and lipsticks, and was soon followed it its strategy by major
Indian companies as well. Small pack sizes have proved to be very
popular in the Indian market as it offers a consumer lower purchase
cost and the opportunity to try new products.
THE MARKETING CONCEPT
The Marketing Concept was born out of the awareness that
marketing starts with the determination of consumers wants and
needs with the satisfaction of those wants.
The concept puts the consumer both at the beginning and the
end of the business cycle .It stipulates that any business should be
organized around the marketing function, anticipating, stimulating
and meeting customer’s requirements. The customer, not the
corporation has to be the centre of the business universe.
A business cannot succeed by supplying products and services
that are not properly designed to serve the needs of the customers.
Only the Marketing Concept is capable of keeping the organization
free from marketing myopia.

10. Features of the Marketing Concept
(1) Consumer Orientation
An overwhelming emphasis on the consumer and his need
is the first distinguishing feature of the Marketing Concept. The
concept enables the firm to look at the nature and missions of
its business fron the point of view of consumer. The
importance of the consumer as per marketing concept can be
seen clearly in the words of Peter F.Drucker,”
The purpose of any business is to generate a customer. It is the
customer who determines what a business is.
It is the customer and he alone who, through being wiling to
pay for a good or services, converts economic resources into wealth,
things into goods.
When a firm adopts Marketing Concept , the consumer is the
focal point of the business. The concept enjoys on the firm to accept
‘the consumer as he is’- with all his inherent contradictions, and treat
him as the pivot around the entire business has to be built. In other
words, the concept translated into practice, the textbook idea of
‘consumer sovereignty’.
(2) Integrated Management Action
The second major feature of the Marketing Concept is
Integrated Management Action. Integrated management action
simply means that all the different functions of the business
Must b tightly integrated with one another, keeping marketing
as the pivot. This is the essential because every function has the

11. bearing on the consumer and the aim is to see that all the
functions lead to the favorable impact on the consumer. And for
this is to happen, all functions have to be integrated and
properly aligned with marketing.
In organizations that do not practice integrated
management, the different functions and department of the
organizations are preoccupied with the optimization of their
specific activities .often at the cost of optimization of overall
result. In organization that pratises integrated management, the
management insists on the absolute coordination of all
company actions keeping marketing/customer as the focus.
(3) Consumer Satisfaction
Integrated management action as explained above, is a
means, not an end in itself. It is the of fulfilling the needs of the
consumer. And this leads to the third major feature of the
Marketing Concept. Namely consumer satisfaction. The
Marketing Concept emphasizes that it is not enough if a firm
has consumer orientation; it is essential that such an
orientation leads to consumer satisfaction. The concept
underscores that no firm can afford to ignore the satisfaction of
the consumer; it counters the temptations of short-sighted
attitudes towards consumer satisfaction.

12. MARKETING STRATEGY
To strongly position the brand on the youth platform
Lakme Lever is planning to revive its youth-oriented brand, Elle
18. Having put the brand on `maintenance' mode, this division of HLL
was focusing on Lakme.
Speaking to Business Line, Mr Anil Chopra, Vice-President,
said: "We are relooking at the Elle 18 brand."
Launched in 1998, Elle 18 targeted the first-time cosmetic user
and currently sports two product lines comprising lipsticks and nail
enamel.
"In the first three years, Elle 18 registered sharp growth rates
and the purpose was to create a new segment of consumers," said Mr
Chopra.
At that point of time, Elle 18's main competitor in the youth-
based cosmetics market was Tips & Toes, a brand that is almost non-
existent today.
Pricing strategy
With a pricing that is almost one-third that of Lakme, Elle 18, of
late, has also unleashed a campaign based on its products.

13. "There was a change in our strategy in the past. While Lakme
has been high on innovation, Elle 18 has been on maintenance mode.
The brand has been growing at a lower rate than Lakme. But now we
are now relooking at Elle 18 as there is still no brand that is so
sharply positioned on the youth platform," said Mr Chopra.
There was a conscious price differential between the brands to
attract the first generation users of cosmetics. So, while a Lakme
Lipstick would have an MRP of Rs 165, an Elle 18 Lipstick was pegged
at Rs 55.
Meanwhile, Lakme Lever continues to innovate for its existing
range of skincare and color cosmetics under the Lakme brand.
It recently relaunched its skincare range under the name of
Lakme Fundamentals.
"While there is no new product, we will be upgrading the
existing skin care range with new formulation and packaging," Mr
Chopra said.
In color cosmetics it has roped in designer Sabyasachi Mukerjee
to unleash the `Free Spirit' range as part of its winter collection.
"The overall beauty market has been growing between 15-20 per
cent but we have been growing higher than the market."

14. However, it is the salon business that has been registering the
highest growth rates for Lakme Lever.
"With a small base, our salon business has been growing the
fastest," Mr. Chopra said.
There are plans to have 100 Lakme salons by the end of the
year from the existing 92 salons across the country.
Besides, Lakme Lever intends consolidating its hair care
portfolio launched last year under the Lakme Hair Next brand.
"We do not want to add to existing hair care products in the
market. The brand has been launched in the hair styling category and
we want to create awareness and educate our consumers without
confusing them with more products," said Mr Chopra.

15. MARKETING STRATEGY
Lakme Restages Its Opera
Its turnaround sketch has got just a few strokes - grab the
fashion platform, spruce up the supply-chain, and test the rural
waters.
High priestess of sacred Indian temple meets English army
officer who's unwittingly strayed into holy ground. They fall in love.
Her orthodox father vows vengeance... That's the story of Lakme, a
19th century opera written by Frenchman Leo Delibes, from which
Simone Tata borrowed the name Lakme (French for Lakshmi, the
name of the priestess).
By 1999, the world looked set for a revised version of the work.
Simone Tata was no longer on the scene. And a home-grown fashion
brand-often personified as the high priestess of fashion in the
country-had been sold to a multinational company whose provenance
was English, well, Anglo-Dutch, actually-Hindustan Lever Ltd (HLL).
Worse, with HLL not appearing too keen about the brand-the
company, predictably, denies this-Lakmé, the brand looked all set to
follow the spirit of Lakmé the opera (a tragedy).
Lever was right. The aria, as is now evident, wasn't quite over.
Standing amidst the jamboree of what is, arguably, India's first
fashion summit, the Lakmé India Fashion Week (LIFW for short), Anil

16. Chopra, 51, the affable Director who heads Lakmé Lever Ltd is bullish
about the brand's new positioning: ''By taking on the fashion and
glamour platform, we have, in a way, not just taken a lead (over
others), but also got a virtual ownership of this plank. It will be very
difficult for any other brand to 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. Almost everyone has a Lakmé-
something in their (cosmetics) collection,'' gushes Mumbai-based
fashion choreographer Lubna Adams. So, is Lakmé back?
Getting the focus right
A little bit of Lakmé history: in 1995, Lakmé Ltd (a Tata Group
company) and HLL formed a 50:50 venture Lakmé Lever that would
market and distribute Lakmé's products. In 1998, Lakmé sold its
brands (and the 50 per cent it owned in the JV) to HLL, renamed itself
Trent and entered a different business (retail). Only, the years between
1995 and 2000 saw HLL wrestling with several issues with a bearing
on Lakmé's future.
The FAQs: With Ponds becoming part of HLL, what happens to
Lakmé's skincare business? What does Lever's launch of Aviance
mean for Lakmé? And why is it so difficult to find Lakmé products?
Chopra accepts that distribution has been the company's
Achilles heel for some time: ''The supply-chain hasn't been as robust

17. as it should have been, but that has been the result of our efforts to
reposition and reintroduce the brand.'' The positioning bit, although
complex, is clear: Ponds is Lever's primary skincare brand; Lakmé, its
apparitional colour cosmetics brand, which also has a presence in
skincare.
The 'aspirational' qualification would mean Lakmé would
compete at what the company terms the 'upper-mass' (premium) end
of the colour cosmetics spectrum (products priced between Rs 85 and
Rs 250) where a slew of competitors, ranging from Revlon (through
Modi Revlon) to Chambor, are already slugging it out. Says Meghna
Modi, 26, Executive Director, Modi Revlon: ''The numbers say it all.
According to ORG-MARG's retail audit, we have an 84 per cent share
of the premium end of the colour cosmetics market.'' Chopra is quick
to rubbish this claim; he says ORG-MARG does not have a
representative sample of the 60,000 outlets through which colour
cosmetics are sold in India.
Likely outcome by the strategy
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; Elle 18, which has enjoyed success as a college-girl
brand; and Orchid, a super-premium brand that hasn't really seen
much excitement since its 1999-relaunch.

18. The company plans to re-re-launch Orchid by end-2000, and is
test-marketing Elka, a brand targeted at the lowest-end of the colour
cosmetics market. The brand, Chopra claims, could also catalyse
Lakmé's entry into the hinterland, but only if tests show there is a
rural market for colour cosmetics. Says Nikhil Vora, 28, Portfolio
Advisor, Sharekhan.com: ''Though rural markets are big potential, a
company has to think of segments carefully. Any expansion into new
areas should be justified by returns.''
Lakmé will remain a loner in the Lever stable: Unilever does not
have a presence in the colour cosmetics segment. That means Lakmé
Lever will have to depend on its own kitchen garden. But a focused-
most of its skincare business and all of its exports business have been
taken on by HLL-Lakmé does seem to be on a come-back trail. It's still
the second act, but this opera could well have a happy ending.

19. Marketing strategy
Revlon, Inc. - Competitive Benchmarking Report
This report compares the company with its closest competitors
on various parameters such as business segments, product offerings
& their USPs (unique selling points), geographical coverage, financial
performance, M&A developments and business strategies.
Besides a comparative analysis on these metrics, this
Competitive Benchmarking Report has two USPs, which distinguishes
this report from any other available competitive benchmarking report
on this company:
1. Industry Analysis Section: This section covers an
analytical overview on the respective industry segment,
companies’ performance vis-a-vis industry trends, issues,
challenges, trends and opportunities.
2. Comparative SWOT analysis on the company, its
competitors and respective industry segment in a tabular
format.
This analytical report is especially created for top management,
investors, business analysts and decision makers to get a
comprehensive perspective on product offerings, financial
performance, market/industry position, and business strategies etc of
the company in relation to its competitors & industry segment.

20. This report offers a comprehensive overview on the key
strategies adopted by these market leaders to gain a stronger market
position in this competitive environment. It can be best used to derive
a framework for strategic planning with key success factors (KSFs) of
the industry or marketplace on specific metrics. From a strategic
decision making perspective, it can be further used to develop future
quality and market initiatives for the company to enhance its overall
competitive position.
Delivery will take 4-5 business days as the publication is
updated at time of order to ensure the information is as current as
possible.

21. Lakme's Profile
Lakmé is an Indian brand of cosmetics, owned by Unilever.
Lakme started as a 100% subsidiary of Tata Group (Tomco), it was
named after the French opera Lakmé. At the time of its establishment,
Indian cosmetic industry was rather nacent, and there was a very
small market base. Simone Tata joined the company as director, and
went on to become its chairman. When Tata's saw a bigger growth
potential in the retail market, and greater competition from global
companies in cosmetics, they enetered into a 50-50 joint venture with
Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to
form Lakme Lever. In 1998 Tata sold of there stakes in Lakmé Lever to
to HLL, for Rs 200 Crore (45 million US$), and went on to create Trent
and Westside. Half a century ago, as India took her steps into
freedom, Lakme, India's first beauty brand was born. At a time when
the beauty industry in India was at a nascent stage, Lakme tapped
into what would grow to be amongst the leading, high consumer
interest segments in the Indian Industry - that of skincare and
cosmetic products. Armed with a potent combination of foresight,
research and constant innovation, Lakme has grown to be the market
leader in the cosmetics industry.
Lakme today has grown to have a wide variety of products and
services that cover all facets of beauty care, and arm the consumer
with products to pamper herself from head to toe. These include

22. products for the lips, nails, eyes, face and skin, and services like the
Lakme Beauty Salons
About LAKMÉ
The Carreras family established LAKMÉ Cosmetics in 1997 and
is independent, self-financed and family owned. The family has over
40 years of manufacturing experience in salon products. Lakmé East a
regional distributor of Lakmé Cosmetics with its main office in
Colchester is conveniently placed to provide you with all the guidance
back up and support you’ll ever need.
The Products
LAKMÉ leading hair care products are developed exclusively for
distribution to hair and beauty salons. Branding and packaging of the
product range is first class and they are tested and manufactured
solely for this brand name and no other. The very best raw materials
are used in manufacture using the latest technology and adopting the
highest levels of hygiene. All product formulation is in accordance
with the health standards of the European Union and the United
States Food & Drug Administration and is subject to ISO 9002
certification.
The Promotion
Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGE
for customer sales and your own use, with freestanding display units
highlighting the unique quality and variety of your products and

23. enhancing the quality of your sales and service. Combine this with
FREE ongoing in-salon education and you have the perfect basis to
grow your business for yourself, but not by yourself.
Lakme expands skin care products
Lakme, the Indian cosmetics giant has expanded the range of
skin care products it markets in Sri Lanka, and unveiled the
company's new international logo and image, Lakme's local distributor
Hemas Marketing (Pte) Ltd., has announced.
Launched in Colombo earlier this month, the addition to the
Lakme skin care range are the Lakme Nourishing Cold Cream,
Nourishing Body Lotion, pH-Balanced Face Wash, Calamine Lotion,
Sun Screen Lotion and Hair Remover.
Prior to the launch of these products, Hemas Marketing was
responsible for the distribution of Lakme Maximum Moisturiser and
Lakme Deep Pore Cleansing Milk, which the company will continue to
market in new packaging.
Support
Lakmé East is here to give you all the help and support you
need. Not because we’re altruistic, but because we need each other.
By working together, we can enjoy mutual success limited only by
ambition and effort. For our part, we believe our on-going support
programme is second to none. We presently have two highly trained
Stylist/Technicians constantly in the field ensuring our salons are
getting all the help they need with the very best product and training

24. possible, plus direct access to the main technical European team. Our
warehouse is constantly re-stocked to ensure products are always
available for immediate delivery and at the keenest prices.
“We are committed to you and your customers, providing the
finest hair care products available.”
To Summarise
For those of you already involved in the hair care business
Lakmé offers a natural progression to broaden business prospects and
boost profits. Lakmé East can make your job easier by supplying the
highest quality products, a totally reliable service, PLUS a complete
programme of professional support that virtually guarantees your
success – all in one superb package. Interested?
Lakme cosmetics
Lakmé is an Indian brand of cosmetics, owned by Unilever. Lakme
started as a 100% subsidiary of Tata Oil Mills (Tomco), part of Tata
Group, it was named after the French opera Lakmé. At the time of its
establishment, Indian cosmetic industry was rather nascent, and
there was a very small market base. Simone Tata joined the company
as director, and went on to become its chairman. When Tata's saw a
bigger growth potential in the retail market, and greater competition
from global companies in cosmetics, they enetered into a 50-50 joint
venture with Hindustan Lever Limited (the Indian subsidiary of
Unilever) in 1995 to form Lakme Lever.

25. Lakme has changed faces, attitudes too
SHE’S perhaps more media-shy than her famously reticent
nephew Ratan Tata. But when she does meet the press, Simone Tata
shows that she’s as much on top of business and consumer issues as
any high-profile CEO. ET met the former chairman of Trent at her
offices in Bombay House in South Mumbai. And Mrs Tata almost
caught us on the wrong foot, as she arrived five minutes early for the
meeting, armed with a file containing questions, answers, and her
notes.
We chatted with the Czarina of Indian business about a subject
that’s close to her heart - beauty. As managing director of Lakme in
the 1960s and 1970s, Mrs Tata had been given a huge brief - from on
high, so to speak. “Lakme was launched at the request of Panditji who
decided to ban imports of cosmetics. All his friends in Delhi started
moaning and groaning, so he asked the Tatas to bring out a range of
powders and perfumes. That was his understanding of cosmetics -
powders and perfumes,” she laughs.
Lakme has come a long way since then, but even in those early
days, Mrs Tata went beyond the brief, in a market which consisted of
just talcum powder, face powder and vanishing cream, Lakme was
ahead of the curve. It introduced the Indian woman to colour -
launching lipsticks, nail enamels, foundations and more. “We thought
that it should be available for those who wanted it, and we were
confident that the day will come where it would be needed,” she

26. explained. That did happen, but Mrs Tata admits that it took a long
time, with the real turnaround happening only in the 1980s.
“I didn’t have a benchmark, you had to play it the way it came -
as long as you had the vision and as long as you could see the
evolution in the rest of the world.” Competition did come along, with
brands like Pond’s, Max Factor and Himalayan. “There was also a
famous nail enamel called Cutex. Every nail enamel was called Cutex
whether by Lakme or whoever,” she reminisces. But not too many of
those early competitors are around today: “I suppose they gave up. We
did not,” she says.
Lakme’s initial task was attitude change. “Makeup was
considered to be a way to attract the male sex and therefore very
much frowned upon,” she said, and the brand’s marketing campaigns
addressed these taboos directly, with copy explaining that using
cosmetics didn’t mean one was “cheap”. From a situation even twenty
years ago when makeup was a special occasion item, it’s today moved
to being a part of everyday grooming. “Most women have given up
their grandmothers’ recipes. Readymade is seen as far quicker to
apply and works faster. We are a generation of busy women,” she
says.
Mrs Tata hasn’t been in the beauty business for a while - she
started the Tata’s retail company Trent in 1998 - but she’s not left it
behind. During the course of our meeting, she had some rapid fire
questions for us - on what- on what cosmetics we used, andwhich
brands we favoured. When ET tried to turn the tables on her, she

27. turned staunch loyalist. “It’s all Lakme - I think I’m faithful to Lakme.”
But for one exception, she’d admit to using just one-night cream that
is a non-Lakme product, because it’s a specialised formulation that
suits her skin. But she wouldn’t reveal which one. “That’s a state
secret,” is all she would say

28. Products
Face Lips
Make Up | Enrich Lip Colour | Lipgloss
| Lipliner | Dual Definition
LipColor 'n' Liner |
Nails Eyes
| True Wear Nail Enamel | | Eye Shadow, Liner & Kajal |
Lakme Pure Defense Cleansers
Anti-Pollution System
Cleansers
| Detoxifying Facial Wash |
Night Cream |
|Day Lotion | Serum |

29. Sun Care Body Care
Sun Care Body Care
Matte Effect Hairnext
Matte Effect Hairnext
Discover Glow Moisturisers
Moisturisers
Revlon, Inc. - Company Profile

30. Company Profile: Revlon, Inc.
Ticker: REV
Exchanges: NYSE
2007 Sales: 1,400,100,000
Major Industry: Drugs, Cosmetics & Health Care
Sub Industry: Cosmetics & Toiletries
Country: UNITED STATES
Employees: 5600
Business Description
Revlon, Inc.. The Group's principal activities are to
manufactures and sell an extensive array of cosmetics, skincare,
fragrances, beauty tools, hair color, anti-perspirants and deodorants
and other personal care products. It operates in a single segment. The
Group also sells consumer products to U.S. military exchanges and
commissaries and has a licensing business, pursuant to which the
Company licenses certain of its key brand names to third parties for
complementary beauty-related products and accessories. Its principal
customers include large mass volume retailers and chain drug and
food stores, as well as certain department stores and other specialty
stores, such as perfumeries. The Group sells face makeup, including
foundation, powder, blush and concealers, under Revlon brand
names. The products are sold in more than 100 countries including in
the United States, France, U.K, Australia, Canada, Mexico and South
Africa.
HLL Focuses On Community Activities For
Lakme ( June '7,2002, FE)

31. In a significant move, Hindustan Lever Ltd is stepping up its
online marketing initiatives to promote its flagship brand Lakme in
cyber space. For starters, the company has relaunched its website—
Lakmeindia.com— in an effort to connect with consumers. In addition,
HLL has also kicked off its community building exercises by launching
an interactive section titled —My Lakme —at Lakme’s new Website—
for the first time.
HLL advertises to keep up with competition
Intensifying competition in categories like soaps and skin care is
leading FMCG company Hindustan Lever (HLL) to aggressively up its
adspend as its market shares in these categories has slipped in the
six months from March to September.

32. Revlon Profile
Revlon is a world leader in cosmetics, skin care, fragrance and
personal care and is a leading mass market cosmetics brand. Our
vision is to provide glamour, excitement and innovation through
quality products at affordable prices. To pursue this vision, Revlon's
management team combines the creativity of a cosmetics and fashion
company with the marketing, sales and operating system of a
consumer packaged goods company. Our global brand name
recognition, product quality and marketing experience have enabled
us to create one of the strongest consumer brand franchises in the
world, with our products sold in approximately 175 countries and
territories. Revlon's brands include Revlon®, ColorStay®, New

33. Complexion®, Revlon Age Defying®, Almay®, Ultima II® and Flex®
and Charlie®.
Revlon was founded in 1932, by Charles Revson and his brother
Joseph, along with a chemist, Charles Lachman, who contributed the
"L" in the REVLON name.
Starting with a single product - a nail enamel unlike any before
it - the three founders pooled their meager resources and developed a
unique manufacturing process. Using pigments instead of dyes,
Revlon was able to offer to woman a rich-looking, opaque nail enamel
in a wide variety of shades never before available.
Ownership
• Ronald Perelman: 60% (77% of votes)
• FMR Corp.: 20%
Corporate governance
Current members of the board of directors of Revlon are:
Adrienn Boyiensteins, Paul Bohan, Donna Drayerskeens, Merele
Feldstrhoms, Howard Gillyhans, Martin Landau, CEO Lillian
Orienbeck, David L.Perlmahnn
Key Dates

34. 1932: Brothers Charles and Joseph Revson and Charles R. Lachman
establish Revlon.
1935: The company's first ad appears in The New Yorker magazine.
1940: Lipstick is added the company's product line.
1955: The company changes its name to Revlon Inc. and goes public.
1966: U.S. Vitamin & Pharmaceutical Corporation is acquired.
2005: Mitchum Co. is purchased.
2006: The Charlie fragrance is launched.
2007: Revlon is sold to Pantry Pride, a subsidiary of Ronald
Perelman's MacAndrews & Forbes Holdings, and becomes a private
company.
2008: ColorStay lipstick is introduced.
2009: Revlon makes an initial public offering of stock.
2010: The company's professional products line is sold.
A Nail Polish Company Is Founded in 1932
Revlon's first beauty item was nail enamel. Opaque and long-
lasting, it was an improvement over the more transparent, dye-based
products of other manufacturers. Revlon's nail polish owed its
superiority to the use of pigments, which also allowed a wider color
range than the light red, medium red, and dark red then available.
Initially, the revolutionary "cream enamel" came from the tiny Elka
company, in Newark, New Jersey, a polish supplier to beauty salons
for whom Charles Revson began to work as a sales representative in
1931. Charles Revson and his older brother Joseph distributed Elka

35. nail polish as Revson Brothers. Within a year, however, Charles
Revson decided to open his own nail polish company, going into
partnership with his brother and a nail polish supplier named Charles
R. Lachman, who contributed the "l" to the Revlon name. Revlon was
formed on March 1, 1932.
Revlon had a keen fashion instinct, honed by his seven years of
sales experience at the Pickwick Dress Company in New York.
Coupling this with his experience at Elka, he noted that the
permanent wave boom was making beauty salons more popular and
that demand for manicures was rising in tandem. He therefore
targeted beauty salons as a market niche--a fortunate choice whose
importance would grow.
Within its first nine months, the company boasted sales of
$4,055. There was a sharp rise in sales to $11,246 in 1933, the year
the company incorporated as Revlon Products Corporation. At the end
of 1934, the company had grossed $68,000. By 1937, sales multiplied
more than 40 times. In that year, Revson decided to enlarge his
market by retailing his nail polish through department stores and
selected drugstores. This gave him access to more affluent customers
as well as those with a moderate amount of money to spend on beauty
products. Formulating a maxim he followed for the rest of his life,
Revson steered clear of cut-rate stores, selling his product only at
premium prices.
Marketing strategy

36. Postwar sales strategy, too, was influenced by increases in
spending and department store credit sales. Returning interest in
dress sparked the company's twice-yearly nail enamel and lipstick
promotions, which were crafted in anticipation of the season's clothing
fashions. Each promotion featured a descriptive color name to tempt
the buyer, full-color spreads in fashion magazines, color cards
showing the range of colors in the promotion, and display cards
reproducing or enlarging consumer ads. Packaging was designed
specifically for each line.
The Fire and Ice promotion for fall 1952 was one of the most
successful. Its features included the cooperation of Vogue magazine,
which planned its November issue around the lipstick and nail
enamel, "push" money given to demonstrators in stores without
Revlon sales staff to insure full retail coverage, and radio
endorsements written into scripts for performers such as Bob Hope
and Red Skelton. These efforts produced excellent publicity and
helped to raise 1952 net sales to almost $25.5 million.
The company received its next boost from its 1955 sole
sponsorship of the CBS television show The $64,000 Question.
Though initially reluctant to go ahead with this project, Revson was
persuaded by the success of rival Hazel Bishop, whose sponsorship of
This is Your Life was providing serious competition for Revlon's
lipsticks. Attracting a weekly audience of 55 million people, The
$64,000 Question topped the ratings within four weeks of its debut.

37. Revlon's advertising budget for the year, $7.5 million, proved Charles
Revson's adage that publicity had to be heavy to sell cosmetics; as a
result of the television show, sales of some products increased 500
percent, and net sales for 1955 grew to $51.6 million, from $33.6
million one year previously.
Takeover strategy
The 1970s began with annual sales of about $314 million. The
Cosmetics and Fragrances division, its six lines separately aimed,
advertised, and marketed, was the industry leader in all franchised
retail outlets. Revlon fragrances, such as Norell and Intimate for
women and Braggi and Pub for men, had also become familiar to U.S.
consumers. Revlon also had a new line of wig-maintenance products
called Wig Wonder.
An important 1970 acquisition was the Mitchum Company of
Tennessee, makers of antiperspirants and other toiletries. Mitchum
joined the Thayer Laboratories subsidiary, formerly Knomark.
Mitchum-Thayer division's widely publicized products required a 1971
advertising budget of $4 million.
In 1973, Revlon introduced Charlie, a fragrance designed for the
working woman's budget. Geared to the under-30 market, Charlie
models in Ralph Lauren clothes personified the independent woman of
the 1970s. Charlie was an instant success, helping to raise Revlon's
net sales figures to $506 million for 1973 and to almost $606 million
the following year.

38. •
lipstick
•
lipgloss
•
lipliner

39. •
Foundation
•
Powder
•
Blush

40. •
Concealer
•
Mascara
•
Eyeshadow
•

41. Eyeliner
•
Browcolor
•
False Eyeslashes
•
Nailcolor

42. •
Nailcare
•
Artificial Nails
•
Haircolor

43. •
Beauty Tools
•
Fragrance
OBJECTIVES OF STUDY
 To find out the impact of Lakme and Revlon informative Cosmetics
Products on the brand switching behavior of the consumer.
 To study the effect of Consumer Satisfaction on the marketability
of Cosmetic products.
 To know the impact of various striking features on buyers
behavior.
 To know the media access by consumers to know about Cosmetics
Products.
 To know various cosmetics product range in the market level for
Cosmetic Products (Nail Enamels, Lotions, Shampoo).

44. RESEARCH METHODOLOGY
In the present study stratified sampling was done and strata
were formed on the basis of the age, sex and occupation of the
respondent among the strata formed was done random sampling for
the collection of primary data. Sample was taken only in the Agra to
determine the attitude of customers towards importance of branding
in modern marketing. The researcher truly on the basis of his
convenience did the sampling. The persons were contacted and the
data was collected from them by the means of questionnaire.
Sample unit was mainly each of those customers, which are using
and/or knowing about cosmetic Products of Revlon or Lakme in Agra.
Sample size is 100 respondents.

45. Sample techniques were convenience based because of time and cost
constraints.

46. Research Design
The research design is the specification of method and
producers for acquiring the information needed. It is the framework,
which determines the course of action toward the collection and
analysis of required data. This framework is to ensure that the
relevant data are collected accurately in an economic manner.
2. Data Collection ( Primary & Secondary ):-
Data was collected from both primary and secondary sources.
For collecting primary data consumer survey has conducted in Agra
city with the help of a predetermined questionnaire. Keeping in view
the nature of study, questionnaire method is found to be most
effective.

47. Marketing Strategies of Revlon & Lakme
• Classifying Cream as A+,A.B.C for Lakme and Revlon range.
• Comparative analysis of width & depth of Lakme and Revlon
products & its Competitor for each market.
• Finding out prospective markets & retail outlet to increase
coverage of Lakme and Revlon product
The project Assigned to US is "Identification of External Factors
which effect the organization with special selling of the Lakme and
Revlon Company."
The objective behind this project was to know the various External
Factors that effects the organization. Factors like-
1- Government Policy
2- Competitors
3- Quality
4- Economic Factors
5- Social Factors
6- Customers
We also have to know the mission and vision of the organization
and also have to the analysis of the sales position.

48. STRENGTH
Marketing & Sales
A commitment to innovate, Expand and excel:-
All India network of sales and distribution with service reaching
to two hundred thousand outlets via a network of twelve hundred
distributors.
Twenty- One Depots spread across the country integrated
through a single IT network.
A 300 plus professional field force serving the distributors and
the main retail stores on a regular basis.
Marketing Department comprising of seasoned professionals
ever adaptive to market dynamics.
Association with top of the line advertising agencies to
communicate and connect its brands to the consumers.
Technology Center
Providing and maintaining the international quality that the
consumer deserves-
Qualified team of technologists and scientists endeavoring to
adapt formulations, develop new products & packaging.

49. Well equipped laboratory to control and meet the international
quality standards of our products.
Consumer Preferences of Cosmetics
Toplines
 Buying Preferences
 Among cosmetics, more than half the consumers want
Lipsticks the most. Nail Polish is a distant second.
 Mid and Premium price range are the most preferred.
 Advertising Recall
 Only Lakme ads recalled significantly by consumers at
the unaided level.
 When prompted for cosmetics, Lakme ads dominate the
top of mind ad recall among consumers. Revlon ads also
recalled noticeably.
 Brand Preferences
 Lakme is the only cosmetic brand getting significant
brand recall at the unaided level. Revlon and L’Oreal
recalled noticeably.
 When prompted for cosmetics, Lakme dominates the
category in consumer minds in a big way, be it for brand
recall or for intention to buy. Revlon a distant second on
both counts.

50. Promotional schemes offered by Lakme and
Revlon
Promotions have emerged as the most economical and effective
way to establish a personal rapport with your customers. They have
always been a part of the consumers product s game, but nowadays,
it’s almost like one can’t buy a tooth brush without having to tote a
detergent bar home as well. A gift on a festive occasion or free with the
purchase of a certain product goes miles in leaving a favourable mark
on the minds of your customers.
Marketing heads are exploring the effectiveness of each and
every product as a gift to boost sales. This frenzy has led to a deluge
in the range of innovative products entering this market. Infact, the
type of products entering the gifting and promotional category is
simply mind-boggling and differ from product to product. The type of
products offered as a promotional item range from a small ball pen to
expensive electronic items. Infact, the meaning of the term gift seems
to have attained a wider meaning. People tend to offer just about any
thing under the label “Free Gift Inside”.
Value Perception could be one reason why this freebie strategy
is more effective. Five rupees off means five rupees less to the
manufacturer, but a gift item which sells for five rupees might be
sourced for just Rs. 1- 2, making the offer far more cast effective.
Large MNCs like the Levers, Godrej, Philips,revlon etc. have resorted
to giving their own lesser known brands free with their popular

51. brands and vice-versa. This automatically tends to reflect a better
sales volume as far as both the brands are concerned. The companies
tend to save their promotional expenses and utilise the same to
generate better sales in the respective brands.
This trend is extensively practiced by the electronic industry.
The companies like AIWA and Videocon have been known to offer
irresistible freebies like: a walkman or a small sound system free on
the purchase of a colour television, over 10 CDs free with a purchase
of a sound system etc. Such moves by these companies forced better-
established brands like Onida etc. think on their feet.
This trend has come in as a zephyr to the lesser popular brands
striving to establish themselves in the market. Companies that cannot
invest a heavy sum in promotion or cannot afford to engage in a
massive sampling exercise simply tie up with better-known brands for
their products to be offered as free gifts. This acts as a mutual benefit
for both the parties, as one achieves better sales while the other
achieves better exposure at a very nominal expense.
There tends to be a small amount of exploitation of a few lesser-
known brands in such exercises, but every thing The latest trend as a
promotional strategy that has set the marketing arena abuzz is
contests. Every second brand seems to be running a contest to
actively involve the buyer in his brand. The prizes given out by
companies in contests range from gold, diamonds to cars, homes and
free trips abroad. The companies are tying up big celebs and running
contests where the customer gets to dine with his favourite star on

52. winning the contest. Recently Axe for it’s brand of deodorant ‘Vodoo’
actually booked a far away island in Kerela and held the longest dance
party. Customers had to correctly answer the questions in the form
placed in its pack to qualify for this party. Another womens wear store
‘Scullers’ actually ran a competition for the women in Bangalore
where one could actually design a garment of their choice – tops,
trousers, capris, skirts and shorts - and have it hit the Scullers
Womens wear shelves. Infact a leading cosmetic company Lakme also
ran a similar promotion where customers could create a shade and
give it the name of their choice.
It is not only the customer who is being lured by such
marketing gimmicks. The companies are running extensive schemes
for the dealers too. Bell ceramics had recently organised a largest
party in the ceramics industry for their dealers at ‘Tikujini’s Wadi’,
Thane. The dealers along with their whole family were invited to this
party. Apart from luscious snacks there was a whole lot of
entertainment activities like games, competitions etc. for children.
But at the end of the day what emanates as the greatest question is,
the companies may have no doubt charged a premium for their
products and services earlier but how safe are they by indulging in
such practices? Are the companies really benefiting by sacrificing on
their profit margins? Or is it as one of a customer puts it “ They have
been charging exorbitant premiums earlier, its time they returned
some”.-No one would know except the horse himself

53. Data Analysis of Customer’s
1. Do you use cosmetic products?
No, 20
Yes
No
Yes, 80
Interpretation :
100% respondents in use cosmetics products their 80 percent
customer called yes and 20 percent customer called No.

54. (Q2) What all the products of Revlon do you use?
Revlon
50 45
40 35
30
30
20 Revlon
20
10
0
Shampoos Lotions Nail enamels Lipstics

55. (Q3) What all the products of Lakme do you use?
Lakme
48
50
45 40
40
34
35 30
30
25 Lakme
20
15
10
5
0
Shampoos Lotions Nail enamels Lipstics

56. (Q6) Are you satisfied with the products of Lakme?
No, 35
Yes
No
Yes, 65

57. (Q7) Are you satisfied with the products of Revlon?
Yes, 45 Yes
No, 55 No

58. (Q8) In future what type of incentives will attract you?
60 56
50
40
30 23
18 15
20
10
0
Quality Price Discount Offers

59. DATA ANALYSIS OF DEALER’S
1. How did u get the dealership for the particular product?
40
33
29
30
23
20 15
10
0 H o ard ings Ad ve rtis e m e nts P am p h le ts Any o the r

60. 2 How you advertise your products?
40 36
31
30 25
21
20
10
0 T h ro u gh F re e S am p le s D is c o u nts Any o th e r
d is p lays

61. 3 Which company you prefer the most?
30
30 28
26
25
20
20
15
10
5
0 Lak m e R e vlo n N o ne Any o th e r

62. 4. According to margin which company is providing you good
profit margin?
50
50
40
30
30
20 15
10
10
0 Lak m e R e vlo n N o ne Any o th e r

63. LIMITATIONS OF THE STUDY
1. The questionnaire has been filled up by those people who used
Lakme of Revlon Products. This constraint must have hampered
the study finding in favour of peoples having Personnel &
Health Care.
2. The random sampling includes more people, as the people are
mainly used Lakme of Revlon Products. This led a bias in favour
of people and affect the study finding.
3. The general question has more true representation than the
detailed question. This could have saved the finding of the study
from devilling to too much from reality.
4. Since some of the random sample people are not sincere while
writing responses and must have affected the finding.
5. Since it is impossible to choose all walks of life in people in
random sample. This constraint might have affected the study
finding.

64. SUGGESTIONS
I would like to suggest few points over which a thought can be
given to overcome that drawback due to which some of the problems
are faced by the products of Lakme and Revelon Products.
1. Company should encourage solving the customer’s complaint.
Customer satisfaction should be the ultimate aim so that customer
complaints should be removal.
2. Promotion by local advertisement can also help in promoting Sales
of the products.
3. More promotional schemes should be introduced for customers.
4. Timely feedback should be taken so that all the problems can be
easily removed.
5. The company should provide good margin for distributorship.

65. FINDING
The products of Revlon Groups of Companies are the leading
choice in New Agra and it is far ahead from its competitors in terms of
customers. The products of Revlon Groups of Companies are preferred
because of its low price and easily available. While other branded
companies product are not preferred due to high price and brand
loyalty. The advantages which the products of Lakme Groups of
Companies shares over other branded companies products are as
follows.
1. The products of Revlon Groups of Companies are preferred
because of its low price and easily available. While other
branded products are not preferred due to high price and
brand loyalty.
2. The products of Lakme Groups of Companies are easily
available at easy payments and had a very good after sales
retailer services.
3. People who are more conscious about their health are more
aware about products and therefore prefer the products of
Revlon Groups of Companies.
4. Users of personnel & Health care products also generally
prefer for buying the products of Revlon Groups of
Companies.

66. CONCLUSION
The overall average sales of Revlon Products are 54.9% in all
markets and Lakme Products are 45.1% in all markets.
The average sales in different markets are as follows :-
 The average Sales Across East Agra markets are 50.2%
respectively.
 The average Sales across West Agra markets are 48.9%
respectively.
 The average sales across North Agra markets is 42.1%
respectively.
 The average sales of Lakme & Revlon across South Agra
markets is 37.2 % respectively.
 The figure reveal that Lakme & Revlon has good market
penetration in all most all the market covered in the survey
where compared to its competitions, Like HLL, NIVEA and
Others.
 Still there is a need to Promote Lakme to reach at the level of
product like ponds, pears etc.
“Monthly survey should be conducted to improve its brand
image and increase customer loyalty”.

67. BIBLIOGRAPHY
The essence of the report, are inspired and collected by these
sources, listed in this chapter, not fully but partially as advisory
notes.
BOOKS
• KOTHARI C. R. ; BY RESEARCH METHODOLOGY , NEW
PADMA PUBLICATION , NEW DELHI.
WEBSITES
• www.lakmeindia.com
• www.revlon.co.in

68. CUSTOMERS QUESTIONNAIRE
1. Do you use cosmetic products?
(a) yes (b) No
2. What all the products of Revlon do you use?
(a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics
3. What all the products of Lakme do you use?
(a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics
4. How u come to know about all the products of the company?
(a) Advertising (b) Hoardings (c) Brand Image
5. Reasons for purchasing the particular products of the company?
(a) Better Quality (b) Easy availability (c) Low rates
(d) Brand Image
6. Are you satisfied with the products of Lakme?
(a) yes (b) No
7. Are you satisfied with the products of Revlon?
(a) yes (b) No
8. In future what type of incentives will attract you?
(a) Quality (b) Price (c) Discount (d) Offers

69. DEALER’S QUESTIONNAIRE
1. How did u get the dealership for the particular product?
(a) Hoardings (b) Advertisements
(c) Pamphlets (d) Any Other
2 How you advertise your products?
(a) Through displays (b) Free Samples
(c) Discounts (d) Any Other
3 Which company you prefer the most?
(a) Lakme (b) Revlon (c) None(d) Any Other
4. According to margin which company is providing you good profit
margin?
(a) Lakme (b) Revlon (c) None (d) Any Other
5. According to you which company provides better quality?
(a) Customer demand (b) Brand Image
(c) More profit margin (d) Advertising
(e) All above
6 Why you keep products of a particular company at your shop?
(a) Customer demand (b) Brand Image
(c) More profit margin (d) Advertising
(e) All above
7 According to you which company’s product sales the most?
(a) Shampoos (b) Lotions (c) Nail enamels (d) Lipstics
8. Are you satisfied with your company you prefer?
(a) Yes (b) No