Atlast Beep Lakme

7/30/2019 Atlast Beep Lakme

1/24

1

2012

Submitted To:

Prof. Trupti .K.

12/22/2012

MASS MARKETS COSMETIC LEADER

LAKMESubmitted by :

Pooja: PG-12-033

Nidhi: PG-12-043

Mayuri: PG-12-053

7/30/2019 Atlast Beep Lakme

2/24

2

Sr. No. TOPIC PAGE No.

1.Introduction 3

2. The Cosmetic industry 4

3. General overview about the company 7

4.4.1

Brands In Cosmetic IndustryCustomer Segments and Major players

1315

5.

5.15.25.3

Market Share And Competitor Analysis

Competitive AdvantageKey Differentiator For Success of The BrandPrice Related Differentiation

16

6. SWOT Analysis of LAKME 18

7.

7.17.2

Competition And Challenges In Cosmetic Industry

CompetitionChallenges In Cosmetic Industry

19

8. Reason For LAKMES Survival In this cut throat

competitive Cosmetic Industry

21

9. Conclusion 24

7/30/2019 Atlast Beep Lakme

3/24

3

1. COSMETICS

1.1 INTRODUCTION

The word cosmetics comes from the Greek word kosmetikos meaning skilled in

adornment. The evolution of cosmetics has truly changed through the centuries. The way people

wear makeup and the reasons why they wear it have changed dramatically over time. The Roman

philosopher, Plautus, once wrote, A women without paint is like food without salt. The

attraction of a beautiful face did not appear yesterday; painted ladies and even gentlemen have

been known through time in artwork and illustrations. The art of cosmetics has definitely

changed over time and through different cultures including: Egyptians, Greeks, Romans, French,

Italians, and Americans.

The U.S. FDA defines cosmetics as: "Intended to be applied to the human body for

cleansing, beautifying, promoting attractiveness, or altering the appearance without affecting the

body's structure or functions." This broad definition includes any material intended for use as a

component of a cosmetic product. The earliest known cosmetics were in use in Egypt in the 4th

millennium BC. In simple words cosmetics would mean, A preparation, such as powder or a

skin cream, designed to beautify the body by direct application or Something superficial that is

used to cover a deficiency or defect, Serving to beautify the body, especially the face and hair or

Serving to modify or improve the appearance of a physical feature, defect, or irregularity.

Modern cosmetics include skin-care preparations; foundation, face powder and rouge

(blusher); eye makeup; lipstick; shampoo; hair curling and straightening preparations; hair

colours, dyes, and bleaches; and nail polish. Related products include antiperspirants,

mouthwashes, depilatories, astringents, and bath crystals.

Thus the benefits of cosmetics would be:

someone who takes care of your beauty needs A long lasting beautification product range It helps you to get a beautiful skin Someone who tells you right thing about looking good.

7/30/2019 Atlast Beep Lakme

4/24

4

2. THE COSMETIC INDUSTRY

India, with a population of nearly a billion people, is a country of contrasts. India's urban

population is the main engine that fuels the demand for various cosmetic products. Although

Indians are strongly attached and committed to their traditions, and culture, the advent of

television and the awareness of the western world are changing the tastes and customs of India.

The morphing of India is subtle and the changes are not visible for the first time visitor.

However, the market liberalization process that began in 1991, along with the crowning of three

Indians as Miss World and Miss Universe during the preceding four years, have made Indian

women conscious of their appearance. Consequently, the cosmetic consumption patterns of

Indian women have changed, and this trend is fuelling growth in the cosmetic sector. Indian

cosmetics market is valued at $950 million. The key growth drivers for the cosmetics market in

India are rapid urbanization, increase in disposable incomes, and changes in peoples taste.

The Indian cosmetic Industry has witnessed rapid growth over the last couple of decades.

The Indian cosmetics industry is growing in terms of product development and marketing. The

preference of Indian consumers is changing from the merely functional products to more

advanced and specialized cosmetic items. In 2005, sales of cosmetics rose by 6% in current

value terms in India. It is also predicted that there is a huge potential for cosmetics in India.

Comparatively the range of cosmetic and beauty products in India has widened tremendously.

Beauty products manufacturers in India mostly cater to the great demand for cosmetics that fall

into the low or medium-price categories as the greatest demand in India have always been for

these economically priced products. India in cosmetics, which saw its value share rising from

27% in 1999 to 31% in 2005 and are likely to continue to surge ahead over the forecast period.

The entry of many multinationals into the Indian cosmetics industry in 2005 has made it an

extremely challenging and dynamic market. Foreign players have focused more on Product

innovation; re-launches and brand extensions spread across multiple price points, and enhanced

product penetration by extending their distribution networks. The leading players have

streamlined their ad spend to effect savings that has allowed them revamp their pricing strategies

as well as offer free gifts to retain consumers. An interesting trend among Indian cosmetic

consumers is, while other global countries are taking to the traditional Indian herbal and

7/30/2019 Atlast Beep Lakme

5/24

5

ayurvedic applications for beauty solutions, Indian consumers are increasingly looking to

international personal care brands as lifestyle enhancement products, in the belief that the

association with and use of an international brand confers one with a sophisticated and upper

class image. The projected sales in 2010 at constant 2005 prices is Rs. 195.6 billion, the main

reasons being a greater ability to purchase personal grooming products among a larger base of

financially independent women, frequent relevant product launches and growing beauty

consciousness and awareness, especially among the younger population. Despite the huge

nascent potential in India, cosmetics grew at relatively slow pace in constant value terms over the

2005-2010 as was expected for this forecast period.

However, in recent years in the cosmetics market India competitors have begun to

manufacture products to cater to an International need. For instance, herbal cosmetics from Indiahave a great demand in the overseas market and many cosmetic products that are manufactured

in India today are supplied to international suppliers of branded cosmetics products like The

Body Shop for example. New facts that have been unveiled by a series of cosmetics business

market analysis India reveal that many International companies are now outsourcing cosmetics to

India and that the industry of cosmetic products in India is growing at an average rate of almost

twenty percent annually. This increase is attributed to two main factors. The first being the

increase for the demand in Indian cost-effective products and the second being the increased

purchasing power of the average Indian. There are also many reasons for the increased demand

for cosmetic products in particular. With the introduction of satellite television, The emergence

of a young urban elite section with increasing disposable income in cities, increase in the number

of working women, changing lifestyles, increased affordability of lifestyle-oriented and luxury

products, mounting aspirations, penetration of satellite TV, increasing appetite for western

goods, a wide array of television channels as well as the Internet, the average Indian consumer is

constantly bombarded with advertisements and information on new cosmetic products which

often translates into the desire to purchase them. A boom in the Indian fashion industry has also

been linked to the increased awareness of Indian people about their appearances and

consequently contributed to an increase in the demand for cosmetic products. However, even

with the massive surge in the popularity of cosmetic products, statistics have shown that the

average Indian consumer spends much less on cosmetic products than consumers from every

7/30/2019 Atlast Beep Lakme

6/24

6

other part of the world. This means that the Indian cosmetic industry has an even greater

potential for growth than it is presently experiencing. However, the penetration level of

cosmetics and toiletries product is still very low in India. The per capita expenditure on cosmetic

products in India is approximately $0.68 cents compared to $36.65 in other Asian countries. The

penetration level of international cosmetics brand in India is also low. International brands

account for only 20% of the cosmetics market. This low level of market penetration can be

perceived as an opportunity for major players.

In the entire range of products that fall within the territory of the Indian cosmetic market,

the most popular items are colour cosmetics, of which nail varnish, lipsticks and lip glosses

account for the most sales. In this area, popular local brand names include Lakme and Revlon.

Skin-care cosmetics have experienced a slower growth and products such as anti-wrinkle creams,cleansers and toners, for instance are not as popular as facial creams, moisturizers and fairness

creams in this genre. Companies like Ponds and Fair and Lovely rule the roost in this segment.

Unilever and Procter & Gamble are major players in the Indian cosmetic sector of shampoos and

hair products. However, the Indian hair-care cosmetic sector now has a few foreign brands to

compete with these giants as well.

Thus the total size of the Indian retail beauty and cosmetics market is currently estimated

at $950 million [Colour cosmetics account for 14%, Fragrances - 21%, Hair care - 19%, Skin

care - 17%, Beauty services - 13%, Herbal products - 9%, others - 7%]. The overall beauty and

wellness market, which includes beauty services, is $2.68 billion. Thus The cosmetics industry,

which started glowing in the early 1990s, is expanding exponentially. With more women and

men becoming conscious of their and willing to spend on their grooming, this industry has been

growing at 20-25 percent the last few years. The enormous growth in this segment has not only

attracted many MNCs but also provided space for many Indian companies to foray or expand

their product range.

7/30/2019 Atlast Beep Lakme

7/24

7

3. GENERAL OVERVIEW ABOUT THE COMPANY

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 Indiawas at a nascent stage, Lakme

tapped into what would grow to be amongst the leading, high consumer interest segments in the

Indian Industrythat is ofskincare 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 tohave a wide variety of products and services that

cover all facets of beautycare, and arm the consumer with products to pamper her from head to

toe. These include products for the lips, nails, eyes, face and skin, and services like the Lakme

Beauty Salons.

Lakme 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!

Lakme also started its new business in the beauty industry by setting up Lakme Beauty

Salons all over India. Now HUL (Hindustan Unilever Limited) has about 88 salons all over India

providing beauty services.

7/30/2019 Atlast Beep Lakme

8/24

8

Product range of Lakme:

TYPE PRODUCTS

Lakm Hair Care Lakme Hair Next GEL MOUSSE SPRAY SERUM

Lakm Eyes 9 to 5 IntenseVolume Mascara

Quick Dry EyeLiner

Defining EyeLiner

Perfect DefinitionEye Pencil

Lakme ThicklashMascara

Lakme Eye PotNine to Five

Satin Glide EyeShadow

Intense Shine Eyeliner Kajal Shimmer Eye

Cube

High definition

7/30/2019 Atlast Beep Lakme

9/24

9

Eyeliner

Eye Color Quartet

Lakm Face

Flawless Makeup

Creme Compact

Matte Compact

Radiant Compact

Liquid Foundation

Face Magic

Rose Powder

Face Highlighter

Lakm Lipsticks Enrich Lip Colour

Lipgloss

Lipliner

Aqua Shine Lip Color

Enrich 9 to 5 Lip Color

Enrich 9 to 5 Lip Duo

Enrich Metallic LipColor

Lakm Nails

Tarun Tahiliani

True Wear Nail Enamel

Free Spirit Nail Color

Glamour True Wear Nail

Color Winter 2009

Lakm Cleansers Fruit Facial Scrub

Deep Hydrating Mask

Creme Face Wash

7/30/2019 Atlast Beep Lakme

10/24

10

Matt effect Morning

Fresh Set

Strawberry Silk Splash

Face Wash

Deep Pore Cleanser

Matteffect Purifying

Face Wash

Matteffect Refreshing

Astringent

Lakm Moisturisers Matteffect Icy Fresh GelPeach Milk Moisturiser

Winter Care Moisturiser

Lakme Pure Defence

Anti-Pollution System

Pure Defense

Detoxifying Facial Wash

Pure Defense Protective

Day Lotion

Pure Defense

Detoxifying Serum

Pure Defense Restorative

Night Creme

Lakme Sun Expert Ultra

7/30/2019 Atlast Beep Lakme

11/24

11

Lakme Sun Expert matte SPF 20 & 30

Lakme Sun Expert

Cream SPF 30

Lakme Sun Expert

Sunscreen Lotion SPF 15

Lakme Matte Effect

Lakme Matteffect

Purifying Face Wash

Lakme Matteffect

Refreshing Astringent

Lakme Matteffect

Morning Fresh Set

Lakme Matteffect Icy

Fresh Gel

Lakme Bridal Sutra

collectionBridal Jewel Eyeliner

Bridal True Wear Nail

ColourLip Chrome

Glide on Eye Colour

Jewel Sindoor

Enrich Metallics

Lipcolor

7/30/2019 Atlast Beep Lakme

12/24

12

Silk Naturelle Daily

Foundation

Pure Rouge Blusher

Just Kissed Cheek and

Lip Tint

Enrich Matte Lip Color

Glide On Lip Color

Eye Artist

Lakme Spa LineShea Nut Hand Butter

Nail Beauty OilHoney Cuticle Cleaner

Protective Base Coat

Nail Color Remover Oil

Hard Wear Top Coat

7/30/2019 Atlast Beep Lakme

13/24

13

4. BRANDS IN COSMETIC INDUSTRY

Since market liberalization, several multinational companies have entered the Indian market such

as:

Revlon, Coty, Oriflame, Chambor, Avon, Yardley, Garnier Laboratories, LOreal,

These companies initially cashed in on their international brand image; however, repeat

purchases were not forthcoming because the products were not priced competitively.

Consequently, these companies became price-sensitive and most of the international brands are

now priced competitively in the Indian market. The colour cosmetic segment which has Indian

players and multinational company players which offers the highest competition such as:

Lakme Lever

Shenaz Hussain Ponds, Unilever Colgate Palmolive

Domestic players like Lakme, mainly dominate this market.

Revlon has a market share of 80% in the premium market. Lakme is the overall market leader in

the colour cosmetic segment (lip care and nail enamel) 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. Lakme leads the market with sales of Rs 100 crore. Other

international brands in the sector with a major part of the rest, some of them engaged in the

multi-level-marketing model for their products are:

L'Oreal, Revlon,

7/30/2019 Atlast Beep Lakme

14/24

14

Maybelline, Avon.

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 local as well as global players. Multinationals feel that Indian companies - Lakme, Pond's,

Nivea-makers have not identified the changing needs of the new Indian woman. The

international brands that are ambitiously fishing in the Indian waters are:

Switzerland's Torstone's Chambor, Sweden's Oriflame, USA's Avon Cosmetics, Revlon, Benckiser (Coty Vitacare), Paris-based Escada group, Laboratories Garnier.

It is not coincidence that many of these MNCs entered the Indian market in the 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 but we cannot avoid

the fact that Lakme too has the largest reach in the Indian market, it specially dominates the mass

market segment and also in on the way to acquire the premium market with its innovative

marketing mix. Maybelline competes with Revlon and Lakme 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, Lakme's share stands at 34 per cent, and that of Elle 18 is 25 per cent. 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.

7/30/2019 Atlast Beep Lakme

15/24

7/30/2019 Atlast Beep Lakme

16/24

16

5. MARKET SHARE AND COMPETITOR ANALYSIS

Lakme is the overall market leader in the color cosmetic with a wide range of products

and prices, both. It was the first cosmetic brand in India that captured the imagination of

consumers. Lakme enjoyed a market share of 52% at one time as the consumers didn't have

many choices but as the foreign brands like Revlon and Maybelline came in; it lost its position

initially. This was primarily due to the fact that consumers now had easy access to high quality

products and with rising disposable income and size of the Indian middle class consumers shifted

their attention to foreign players. But however Lakme still, managed to gain its position back.

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 Indian market. Today also it is said that it is a trendsetter in cosmetics as it keeps on

coming out with novel colours, shades and products from time to time. Lakme now however

leads with sales of Rs 100 crores in market and can be considered as a best preferred and sold

product in the overall cosmetic market due to the advantage it has over its competitors.

5.1 COMPETITIVE ADVANTAGE

Lakme is a brand that epitomizes the feminity of Indian women. Lakme has over the

years built a brand that has got a special place in the hearts of Indian women. This was attributed

to the length and depth of its product mix. Lakme is economical as compared to its competitor

foreign brands. This particular aspect has never been harped upon by Lakme in its

advertisements. Lakme products are priced in such a way that mass market can buy it.

Accordingly if Lakme increases its price it may lose its customers and thus its pricing is the main

competitive advantage it has over other brands which are highly priced. Lakmes advertising is

its another important benefit. Lakme advertises every new product it launches carefully so as to

ensure that it is noticed by the mass. Lakmes promotion like speciality counters in departmental

stores, malls, television advertisements by the companys brand ambassadors, most importantly

Lakme salons whereby all Lakme products are available has helped it to increase its market

share. The various advertisements of Lakme try to tell their consumers that they provide them

with a complete solution for their beauty enhancement. Thus its customers feel that Lakme is a

healthy choice in order to keep a healthy and beautiful skin. Another strong point of Lakme,

7/30/2019 Atlast Beep Lakme

17/24

17

experts say, is its reach. With a retail reach of close to 1000 counters and an overall direct reach

of 40,000 stores, Lakme is one of the most widely available brands. This large presence gives the

brand volumes and makes it the largest cosmetics brand in India.

5.2 KEY DIFFERENTIATOR FOR SUCCESS OF THE BRAND

Lakmes key differentiator is that they provide the best of Unilever technology on

skincare range and their partnership with Milan-based Intercos Italia, the leading creator of new

cosmetics technology and fashion trendsetter for global beauty brands. This enables Lakme to

combine the best available International cosmetics technology with an in-depth understanding of

the Indian woman's needs to create relevant and innovative beauty products and services. This is

truly, the best of both worlds.

5.3 PRICE RELAED DIFFERENTIATION

12COMPETITIVE PRICE:

LAKME LOREAL

LAKME HAIR CARE = 120-195 LAKME CLEANSER = 45-75 LAKME TONER = 85 SUNSCREEN LOTION = 80-150 MOISTURIZER = 90-160

LOREAL HAIR CARE = 175-210 LOREAL CLEANSER = 480 LOREAL TONER = 370 SUNSCREEN LOTION = 830 MOISTURIZER = 590

1http://corallista.com/2011/11/25/lakme-absolute-range-now-in-stores-price-range-update/

2http://www.urbantouch.com/loreal/

7/30/2019 Atlast Beep Lakme

18/24

18

6. SWOT ANALYSIS OF LAKME

3

STRENGTHS

High quality man power Brand name Vast range of products and services Distribution channel Unilever global technology

capability.

WEAKNESS High service costs Use of hard chemicals

OPPORTUNITIES Brand growth through increasedconsumption depth

Growth in business of beauty salons,Lakme beauty training academy in

Mumbai, Chennai and new Delhi.

THREATS

Aggressive price competition fromlocal and multinational players

Availability of cheap beautyproducts

Reports regarding presence of Leadin lipstick

3http://www.mbaskool.com/brandguide/fmcg/913-lakme.html

7/30/2019 Atlast Beep Lakme

19/24

19

7. COMPETITION AND CHALLENGES IN COSMETIC INDUSTRY

7.1 COMPETITION

The Indian cosmetic market, which has been traditionally a stronghold of a few majorIndian players like Lakme, and Ponds has seen a lot of foreign entrants 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 out new innovative strategies to suit

Indian preferences and budgets to establish a hold on the market and establish a niche market for

them. 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. HLL 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. Stiff competition in the cosmetics and market also saw an increase in the range of new

products being introduced for newer application concepts in the last few years. In the skin-care

segment, from just creams and moisturizers, there has been an upgrade to value-added products

such as :

Under-eye wrinkle removing creams, Dark circle removing creams toners, Sunscreen lotions, Fairness creams.

The colour cosmetics market saw new products such as smudge-proof lipsticks and mascaras,

liquid lip colour, and long-stay lipsticks being introduced. These specialized applications led to

growth in volumes and also enabled companies to price the products at a premium, driving up

value growth.

Service marketing strategies, such as point-of-sale advice and beauty counselling have

shown to boosts sales of cosmetics and personal care products and driven growth in the Indian

market. Beauty counsellors or advisors at retails outlets have been very successful in gaining

attention, creating product awareness and overcoming consumers lack of familiarity with, and

7/30/2019 Atlast Beep Lakme

20/24

20

fears about many cosmetics and personal care products such as home hair permanents and colour

cosmetics. Some companies such as Lakme have even set up exclusive Lakme beauty salons at

major cities in India through the franchisee route. Major herbal cosmetics brands such as

Shahnaz Hussain and Biotique also operate chains of salons through franchisees and offer

specialized training courses to customers. Companies continue to innovate on selling methods.

Popular Indian brand, Ponds established consumer advisory cells and through touch screen

counters and telephone help-lines offers advice on skin care. Another company, Baccarose,

owners of the Chambor brand organizes tea party make-up sessions at major Indian

cities. L'Oreal markets its range of specialized hair care products exclusively through salons and

beauty parlours. L'Oreal currently is the only company in the market that has a hair colour range

tailored exclusively for parlours. The company was also the first to introduce modern hair colour

and shampoos for coloured hair in the Indian market.

A strong brand promotional campaign, good distribution network, constant product

innovation and quality improvement, and the ability to provide a variety of quality products are

some of the major reasons for the success of most companies. HLL, is currently India's largest

cosmetics and personal care products producer and its brands has the dominant share (more than

50 percent) in segments such as personal wash, skin care, shampoos, lipsticks and nail polish.

7.2 CHALLENGES IN COSMETIC INDUSTRY

While the market seems impressive, there are hurdles that impede growth. The Indian

duty structure on imported products can pose a major deterrent to multinational vendors. Despite

the new value added taxation regime, where the duty has been reduced to 12.5%, the overall duty

on the product still comes to about 40%. This in turn reflects in the pricing of the products. Most

vendors add the duty to the product pricing to generate the right revenue. However, there is no

organized cosmetic industry body that can take up the issue with the government. In fact this

leads to the biggest threat the unorganized or grey channel. There are small retailers in the

market who directly import from markets such as Dubai, where pricing can vary from 3070%

from Indian product pricing. Thus today the grey channel makes up about 60% of the Indian

cosmetics market.

7/30/2019 Atlast Beep Lakme

21/24

21

8. REASON FOR LAKMES SURVIVAL IN THIS CUT THROAT

COMPETITIVE COSMETIC INDUSTRY

4

Lakme is the Indian womans Beauty Sutra inspiring expression of her unique beauty andsensuality.

Lakme brings expert products and services that are borne out of true understanding of the

needs of the Indian woman. They help the Indian woman in expression of her best selfsensual,

original, expressive, alive and intuitive. Lakme inspires her to unleash the potency of her

femininity, beauty and sensuality.

Lakme was the first major beauty brand in India and takes pride in being the expert onIndian Beauty for over 50 years. It is complete beauty brand spanning colour cosmetics, skin

care & hair styling products and extending to beauty services through the network of Lakme

Beauty Salons. Its bond with beauty and fashion is manifested through the Lakme Fashion Week,

which is now the largest fashion event of its kind in the country. Lakme has a foot print of over

1200 assisted sales outlets, which is the largest span of outlets with Beauty Advisors in the

country.

One of the reasons for its survival would also be the way in which it influences its

existing and potential customers. Lakme influences its customers through the concept of Ego,

concept of personality groups and the concept of perpetual selection.

CONCEPT OF EGO

Lakme tries to position itself on the basis of its appeal to the consumers which have an

ego. This means that the consumers of Lakme have an impulsive drive for which they seek

immediate satisfaction without concern for means of satisfaction. Women all over the world arealways 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 products that help

4http://cosmetics.indianetzone.com/1/rise_indian_beauty_market.htm

7/30/2019 Atlast Beep Lakme

22/24

22

enhance their looks and style. 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.

CONCEPT OF PERSONALITY GROUPS:

Lakme tries to woo the compliant consumers i.e. they try to target people those who have

desire to be loved, wanted and appreciated. As is earlier stated women are supposed to look good

not only in western countries but also in India. Women always appreciate if someone calls them

beautiful and it has become the custom of the society to see women in such a context. So it

would be prudent to say that according to the societal norms a women has to look good at all

times and which has a bearing on the psychology of female consumers towards cosmetic

products which help them achieve that desired look. Needless to say that Lakme plays on the

concept of women wanting themselves to be appreciated for their beauty and being loved for

that.

CONCEPT OF PERPETUAL SELECTION:

On the basis of perceptual selection Lakme has tried to position itself among its

consumers in the following way: Lakme has tried to gain the attention of its consumers by line

extension and having more and more product depth, packaging and attractive print

advertisements. If we look at the line extensions of Lakme than we would observe that it is in

almost all the segments of cosmetic care ranging from hair care to skin care to beauty salons!

Looking at the product depth it is pretty evident that Lakme has actually tried to fill in all areas

that it can, particularly the nail paint and 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.

The major reason for its survival is its journey from leading mass market brand to the

leading premium market brand. Some call it the Air Deccan of the cosmetics industry, but

Indias biggest beauty brand has tried hard to go the premium way. The Fashion Week has been

a part of Indias biggest cosmetics brands strategy to go in for an image makeover from a

brand of the masses to the preferred brand of the classes as well. Lakme association with the

7/30/2019 Atlast Beep Lakme

23/24

23

Lakme India fashion week started 10 years ago when a survey by Hindustan Unilever, which had

then acquired the brand from the Tatas, showed that the youth perceived Lakme to be their

mothers brand. The major reason for this association was a thought that Fashion and cosmetics

go well together. Lakme 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 Lakme to traverse the entire spectrum from the mass-end to the premium,

unlike other cosmetic brands.

The Fashion Week, the 88 Lakme Beauty Salons, which offer consumers a Beauty

Sutra experience, and now the recently-launched Lakme Studio, were all part of those efforts to

become a premium brand and get an international look. The encouragement to go the premium

way increased when the Lakmes high end products started contributing a considerable amountto Lakmes overall revenue. But not everyone was convinced whether these efforts have been

enough for the brand to make a lasting impression in the premium space. Experts say what went

against Lakme in its bid to take on the likes of LOreal and Revlon is its image. Lakme still was

the Air Deccan of the Indian cosmetics industry. Its image of a budget brand for the masses was

difficult to shed. All what was needed was to create two distinct brands and formulate separate

strategies for the masses and the classes which Lakme did with the brands like Elle 18 and

Orchid.

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, Lakme 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 Lakme, LOreal, Chambor and Maybelline. And here LOreal has the largest market

share. Further, regular cosmetics users are moving from the masstige to the premium and

prestige brands. The prestige and premium categories have higher growth as compared to the

masstige segment. Cosmetic is an Rs 2000 crore market, out of which the mid-premium is a Rs

1000 crore category where LOreal 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 where Lakme is the market leader.

7/30/2019 Atlast Beep Lakme

24/24

24

9. CONCLUSION

Lakmes bid for the premium segment got a major push when Lakme Salon launched a

first-of-its-kind Lakme Studio in Delhi which offered ultra-premium beauty services. Lakme

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 Lakme, experts say, is

its reach. With a retail reach of close to 1000 counters and an overall direct reach of 40,000

stores, Lakme is one of the most widely available brands. This large presence gives the brand

volumes and makes it the largest cosmetics brand in India.

Thus Lakme being a mass market brand has almost on a verge to also become a prestige

market brand. It has almost survived the competition from the market leaders in that category.

Lakmes wide range of products for entire market segment, its right brand positioning, its

economical pricing strategy, availability in the local kirana and the drug stores to the

departmental stores and now also on the internet is an example of its wide distribution network

and its massive promotion mix acts as its success factor in becoming Indias largest cosmet ic

brand. Lakmes focuses only on Indian markets and they are the market leader in this sector andwill continue to sustain leadership only in Indian markets rather taking the brand in the global

markets. And even today, when most multinational beauty products are available in India, Lakme

still occupies a special place in the hearts of Indian women