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Overview of Cosmetic Industry

      India Cosmetic industry is valued at $950 Million.
                Growth Rate – 15-20% p. a.
   Medium and low priced category products accounts for
                    90% of the market.
  The Men’s personal care market is valued at $165 million
              with Gillette as a market leader.
Market Structure of Cosmetic Industry
• Colour Cosmetics (Foundation, Compact, Eye Make up, Lipstick, Nail Enamel, Blush On)
      –   Fastest growing segment
      –   Market Value: $ 60 million
      –   Growth Rate: 25-30%
      –   Penetration Level: 38.7% in Urban areas & 12.6% in Rural areas
      –   Key Market Player: Lakme, L'Oreal, Revlon, Lotus, Maybeelene
• Deodorants and Perfumes
      –   Market Value: $ 34 million
      –   Growth Rate: 19.87%
      –   Penetration Level: 64.3% in Urban areas and 18.7% in Rural areas
      –   Key Market Player: AXE, Ferrari, Cinthol, Denim, Lacoste, Nina Ricky, Fa etc.
• Talcum Powder
      –   Market Value: Rs 3.5 billion
      –   Growth Rate: 12% per annum
      –   Penetration Level: 45.4% in Urban area & 25.2% in Rural areas.
      –   Key Market Player: Ponds (with 70% market share) and Johnson & Johnson (with 15% market
          share)
Age
18-21   22-25      26-30   31-35   above 35

        4%
   5%           7%          21%




             63%
Occupational
House wife   Others   Professionals     Students

                                  4%
                      9%

                                      14%



      73%
Monthly Expenditure
0-500     1000-1500    1500-2000     500-1000   Nil
                      4%

         24%


                                         59%
2%      11%
Looking Good and Feeling Great


 A source of radiant beauty’




                Made by – Group 1
“Nothing makes a woman
more beautiful than the
belief she is beautiful.”
           Made by – Group 1
R Y
        T O
H I S
    Made by – Group 1
?..
Made by – Group 1
named after the French opera Lakmé


  Started in 1952 by Simone Tata

  50-50 joint venture with
  Hindustan Lever Limited
  in 1995 to form Lakme
  Lever
  By 1999 Sold to mutinational
  Company Hindustan Liver Limited

Made by – Group 1
Welcome To LAKME Beauty Salon

WORLD - CLASS EXPERTISE
NOW CLOSE AT HAND



            Made by – Group 1
CTS
          O   D U
       PR
4/8/2008       Made by – Group 1
Made by – Group 1
E S
      I C
P R
        Made by – Group 1
Skin Care: Free Spirit Floral Bliss Facial &
Happy Hour facial …Rs. 1800-2000*




  Bridal Make Up… Rs.5100-9350*.




    Hairnext Indulgences… Rs.450 to Rs.700*




    Spirit Orchid Hand Facial… Rs. 275-325




   Spirit Orchid Foot Facial… Rs. 350-400
  Made by – Group 1
CE S
           PLA
4/8/2008     Made by – Group 1
Lakme Beauty Salons were
                  established in Mumbai, Delhi,
                  Hyderabad, & Chennai thirty
                  years ago.


88 beauty salons across India.




              Made by – Group 1
O N
        OTI
 RO   M
P
       Made by – Group 1
Department stores, specialty
                        stores and chain department
                        stores, such as Shoppers’ Stop,
                        VAMA, Westside, Bombay
                        Stores .


Direct Sales

Direct Mail/TV/Print               Fashion Week

Free Standing Stores               Banners

Health Food Stores

Saloons
               Made by – Group 1
COMMUNICATION MODLE:( AIDA)




New Lakme Beauty Salon Rewards Programme

Lakmeindia.com offers various features on beauty and style

“Shop at our alliance outlets to enjoy exclusive discounts
and service benefits. And the benefits include lifestyle
products, health care, electronics and holidays among
others.”

                      Made by – Group 1
P L E
PEO
 Made by – Group 1
Enthusiastic


The parlour has beauticians who have been
trained by Lakme.
The staff is required to attend classes
conducted by doctors and cosmetologists
and every six months their skills are
polished further.
Greeting with a smile

Quick Response



                    Made by – Group 1
PHYSICAL
             EVIDENCE

4/8/2008   Made by – Group 1
Lakme Beauty Salons were established
                 in Mumbai, Delhi, Hyderabad, &
                 Chennai thirty years ago
                In addition to leveraging Unilever's
                worldwide expertise, Lakmé also
                partners with the leading technology
                and trendsetter for global beauty
                brands, the Milan-based Intercos
                Italia as well as Paris-based Fiabila.

Spacious

Fully- Air conditioned

Environment full of fragrance and Freshness

10+ clients are handled at an instant

Cleanliness
                   Made by - Group 1
PROCESS

  Made by – Group !
Proper attention towards each and every
customer

Using genuine and appropriate branded
products

Maintaining the morning freshness throughout
the day

Refreshments for their customers

Proper assistance at the time of taking
appointments

Hospitality of premium standards

Keeping Made byarea 1clean
        the – Group
SWOT Analysis

     Made by – Group 1
STRENGTH

High quality manpower resources

Brand Name

Vast range of products and services

 Distribution Channel

Unilever global technology capability

          Made by – Group 1
WEAKNESSES
    High Services costs

    Use of Hard Chemicals


 OPPORTUNITIES
Brand growth through increased consumption
depth
Growth in Business of beauty saloons

Lakme Beauty Training academy in Mumbai,
Chennai and New Delhi.

            Made by – Group 1
THREATS
Aggressive price competition from local
and multinational players

Availability of cheap beauty products

Reports regarding presence of LEAD
in lipsticks




 Made by – Group 1
Reducing service cost by increasing SALES.

Pricing Policy

Marketing their Product – Stating Lead Free.

Grabbing Industry Growth by banking on their core competencies.

Opening up of more saloons in Cosmopolitan Cities.


                         Made by – Group 1
PRESENTATION BY:
    Nishant Varshney (13)
    Nishant Kumar (22)
    Anna Jain (51)
    Megha Singh (53)
    Heena Vyas (57)
    Aakash Minocha (60)
Made by – Group 1

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Overview of cosmetic industry

  • 1. Overview of Cosmetic Industry India Cosmetic industry is valued at $950 Million. Growth Rate – 15-20% p. a. Medium and low priced category products accounts for 90% of the market. The Men’s personal care market is valued at $165 million with Gillette as a market leader.
  • 2. Market Structure of Cosmetic Industry • Colour Cosmetics (Foundation, Compact, Eye Make up, Lipstick, Nail Enamel, Blush On) – Fastest growing segment – Market Value: $ 60 million – Growth Rate: 25-30% – Penetration Level: 38.7% in Urban areas & 12.6% in Rural areas – Key Market Player: Lakme, L'Oreal, Revlon, Lotus, Maybeelene • Deodorants and Perfumes – Market Value: $ 34 million – Growth Rate: 19.87% – Penetration Level: 64.3% in Urban areas and 18.7% in Rural areas – Key Market Player: AXE, Ferrari, Cinthol, Denim, Lacoste, Nina Ricky, Fa etc. • Talcum Powder – Market Value: Rs 3.5 billion – Growth Rate: 12% per annum – Penetration Level: 45.4% in Urban area & 25.2% in Rural areas. – Key Market Player: Ponds (with 70% market share) and Johnson & Johnson (with 15% market share)
  • 3.
  • 4. Age 18-21 22-25 26-30 31-35 above 35 4% 5% 7% 21% 63%
  • 5. Occupational House wife Others Professionals Students 4% 9% 14% 73%
  • 6. Monthly Expenditure 0-500 1000-1500 1500-2000 500-1000 Nil 4% 24% 59% 2% 11%
  • 7. Looking Good and Feeling Great A source of radiant beauty’ Made by – Group 1
  • 8. “Nothing makes a woman more beautiful than the belief she is beautiful.” Made by – Group 1
  • 9. R Y T O H I S Made by – Group 1
  • 10. ?.. Made by – Group 1
  • 11. named after the French opera Lakmé Started in 1952 by Simone Tata 50-50 joint venture with Hindustan Lever Limited in 1995 to form Lakme Lever By 1999 Sold to mutinational Company Hindustan Liver Limited Made by – Group 1
  • 12. Welcome To LAKME Beauty Salon WORLD - CLASS EXPERTISE NOW CLOSE AT HAND Made by – Group 1
  • 13. CTS O D U PR 4/8/2008 Made by – Group 1
  • 14. Made by – Group 1
  • 15. E S I C P R Made by – Group 1
  • 16. Skin Care: Free Spirit Floral Bliss Facial & Happy Hour facial …Rs. 1800-2000* Bridal Make Up… Rs.5100-9350*. Hairnext Indulgences… Rs.450 to Rs.700* Spirit Orchid Hand Facial… Rs. 275-325 Spirit Orchid Foot Facial… Rs. 350-400 Made by – Group 1
  • 17. CE S PLA 4/8/2008 Made by – Group 1
  • 18. Lakme Beauty Salons were established in Mumbai, Delhi, Hyderabad, & Chennai thirty years ago. 88 beauty salons across India. Made by – Group 1
  • 19. O N OTI RO M P Made by – Group 1
  • 20. Department stores, specialty stores and chain department stores, such as Shoppers’ Stop, VAMA, Westside, Bombay Stores . Direct Sales Direct Mail/TV/Print Fashion Week Free Standing Stores Banners Health Food Stores Saloons Made by – Group 1
  • 21. COMMUNICATION MODLE:( AIDA) New Lakme Beauty Salon Rewards Programme Lakmeindia.com offers various features on beauty and style “Shop at our alliance outlets to enjoy exclusive discounts and service benefits. And the benefits include lifestyle products, health care, electronics and holidays among others.” Made by – Group 1
  • 22. P L E PEO Made by – Group 1
  • 23. Enthusiastic The parlour has beauticians who have been trained by Lakme. The staff is required to attend classes conducted by doctors and cosmetologists and every six months their skills are polished further. Greeting with a smile Quick Response Made by – Group 1
  • 24. PHYSICAL EVIDENCE 4/8/2008 Made by – Group 1
  • 25. Lakme Beauty Salons were established in Mumbai, Delhi, Hyderabad, & Chennai thirty years ago In addition to leveraging Unilever's worldwide expertise, Lakmé also partners with the leading technology and trendsetter for global beauty brands, the Milan-based Intercos Italia as well as Paris-based Fiabila. Spacious Fully- Air conditioned Environment full of fragrance and Freshness 10+ clients are handled at an instant Cleanliness Made by - Group 1
  • 26. PROCESS Made by – Group !
  • 27. Proper attention towards each and every customer Using genuine and appropriate branded products Maintaining the morning freshness throughout the day Refreshments for their customers Proper assistance at the time of taking appointments Hospitality of premium standards Keeping Made byarea 1clean the – Group
  • 28. SWOT Analysis Made by – Group 1
  • 29. STRENGTH High quality manpower resources Brand Name Vast range of products and services Distribution Channel Unilever global technology capability Made by – Group 1
  • 30. WEAKNESSES High Services costs Use of Hard Chemicals OPPORTUNITIES Brand growth through increased consumption depth Growth in Business of beauty saloons Lakme Beauty Training academy in Mumbai, Chennai and New Delhi. Made by – Group 1
  • 31. THREATS Aggressive price competition from local and multinational players Availability of cheap beauty products Reports regarding presence of LEAD in lipsticks Made by – Group 1
  • 32. Reducing service cost by increasing SALES. Pricing Policy Marketing their Product – Stating Lead Free. Grabbing Industry Growth by banking on their core competencies. Opening up of more saloons in Cosmopolitan Cities. Made by – Group 1
  • 33. PRESENTATION BY: Nishant Varshney (13) Nishant Kumar (22) Anna Jain (51) Megha Singh (53) Heena Vyas (57) Aakash Minocha (60) Made by – Group 1