A

Project Report
on

“Marketing strategies of LAKME”

In partial fulfillment for the award of the degree of Bachelor of

Business Administration (BBA Batch 2015-2018) of

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

Under the Guidance of: Submitted by:

Mrs.Himani Gupta Ipshita chaujar
(Faculty Guide)

NEW DELHI INSTITUTE OF MANAGEMENT

TUGHALAKABAD INSTITUTIONAL AREA
NEW DELHI – 110062

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 ACKNOWLEDGEMENT

I take this opportunity to express my heartiest gratitude to Jagannath International

Management School for permitting me to undertake this research and supporting me
during this research and otherwise also.

I would like to thank Ms.Himani Gupta who not only played the role of my
philosopher and guide but also mentored me at every stage of my project work. I
would like to extend my hearty thanks to entire faculty members of BBA department
for their constant cooperation and support to take decision during the course of my
research. I would also like to thank my parents for their support and blessing without
which this project could not have been completed. Indeed I shall remain ever grateful
to them.

I am also thankful to college library and computer laboratory management staff for
their constant support.

The experience I gained during this research project is of immense importance in the
academically and more on professionally.

Ipshita Chaujar

ROLL NO: 03414201715

BBA 3A Morning

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 CERTIFICATE

I hereby certify that this project report entitled “A study of Marketing Strategy of
“LAKME” is based on an original project study conducted by Ipshita Chaujar ,
student of BBA 2015-2018 batch, under my guidance. I have examined the final copy
of this project and I am satisfied with the content of the work. I would hereby
recommend that this project be accepted as part of the course.

Mrs.Himani Gupta

(Faculty Guide)

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CHAPTER 1 - INTRODUCTION

OVERVIEW OF COSMETIC INDUSTRY IN INDIA AS A

WHOLE

1. Beauty and personal care growth slows down in 2015

Although the beauty and personal care market continued to register good growth in
2015 due to improving economic conditions and falling inflation, growth was lower
than over the review period as a result of the impact of sluggish consumer expenditure
on demand for mass products, which account for the majority beauty and personal
care products sales. However, within premium product categories, demand remains
high and consumers in urban consumers with higher disposable incomes are trading
up to more expensive brands.

2. Rising natural, herbal and Ayurvedic beauty and personal care

sales

Demand for natural, herbal and Ayurvedic products was on the rise in 2015 due to
strong promotional campaigns carried out by top players in the industry such as
Hindustan Unilever, Colgate-Palmolive India, Dabur India, Marico, Godrej Consumer
Products and Patanjali Ayurved. To tap into the potential of natural, herbal and
Ayurvedic products, companies launched a number of new products and variants
backed by strong promotional campaigns in 2015.

3. International players continue to dominate while domestic players

play catch-up

In 2015, Indian beauty and personal care sales continued to be dominated by

international players such as Hindustan Unilever, Colgate-Palmolive India, Reckitt
Benckiser (India) and Gillette India. Almost all of these players have diverse product
portfolios catering to the mass consumer segment with good distribution networks in

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place. Domestic players such as Dabur India, Godrej Consumer Products and
Patanjali Ayurved appealed to regional needs and trends among Indian consumers by
launching new products during 2015 and managed to perform well. In addition,
Patanjali Ayurved focused on attracting consumers to Indian products via television
commercials.

4. Independent small grocers remain preferred distribution channel

Independent small grocers remain the primary channel for sales of beauty and
personal care products in India due to the fact that products such as bar soaps,
toothpastes, tooth powders, shampoos and hair oils tend to be purchased within
smaller neighbourhood independent grocery stores. However, while internet retailers,
beauty specialist retailers and modern grocery retailers currently have smaller sales
shares, they are rapidly growing in popularity and recording strong sales growth.

5. Demand expected to remain strong over forecast period

The beauty and personal care market in India has huge growth potential as a large
number of products still have only limited penetration in the country. Demand for
beauty and personal care products over the forecast will be driven by a number of
factors, including rising disposable incomes, increasing product penetration, the
growth of modern retailers, increasing awareness of beauty and personal care
products, the rising aspirations of consumers, and strong economic growth. As a
result, overall beauty and personal care constant value growth over the forecast
period is expected to be higher than during the review period.

PAST, PRESENT & FUTURE TRENDS IN MAKEUP

Cosmetics (colloquially known as makeup or make-up) are care substances used to

enhance the appearance or odour of the human body. They are generally mixtures
of chemical compounds, some being derived from natural sources, many being
synthetic.

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In the U.S., the Food and Drug Administration (FDA) which regulates cosmetics,
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, as well, any material
intended for use as a component of a cosmetic product. The FDA specifically
excludes soap from this category.

The word cosmetics derives from the Greek κοσμητική τέχνη (kosmetikē tekhnē),
meaning "technique of dress and ornament", from κοσμητικός (kosmētikos), "skilled
in ordering or arranging"] and that from κόσμος (kosmos), meaning amongst others
"order" and "ornament"

Archaeological evidence of cosmetics dates at least from ancient Egypt and Greece.
According to one source, early major developments include:[1]

 Castor oil by ancient Egypt as a protective balm.

 Skin creams made of beeswax, olive oil, and rosewater described by Romans.
 Vaseline and lanolin in the nineteenth century.
 Nivea Creme in 1911.

The Ancient Greeks also used cosmetics. Cosmetics are mentioned in the Old
Testament—2 Kings 9:30 where Jezebel painted her eyelids—approximately 840
BC—and the book of Esther describes various beauty treatments as well.

Cosmetic use was frowned upon at many points in Western history. For example, in
the 19th century, Queen Victoria publicly declared makeup improper, vulgar, and
acceptable only for use by actors

Of the major cosmetics firms, the largest is LAKME, run by Unilever and owned by
CEO Anil Chopra.

Beauty products are now widely available from dedicated internet-only retailers, who
have more recently been joined online by established outlets, including the major
department stores and traditional bricks and mortar beauty retailers.

Although modern make-up has been used mainly by women traditionally, gradually
an increasing number of males are using cosmetics usually associated to women to
enhance or cover their own facial features.

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PRESENT & FUTURE TRENDS IN MAKEUP

Values in clients’ personal lives have changed and that leads to a change in how they
consume. People are spending more time with friends and family, and are focusing on
what they consider to be the more important things in life. Consuming for the sake of
consumption is no longer a way of life. Cosmetic consumers are demanding more
quality products with multiple benefits, and what is inside the package will soon
become more important than the package itself. Although packaging and presentation
will always be very important, it will not be enough to hold a client, and it will not be
the foundation upon which to build a business.

To predict how and where mineral makeup will grow in the future, it is important to
revisit its history and evolution. Traditional makeup was initially used to add color
accents to the face, and after a while, it was used to cover up imperfections. Mineral
makeup brought the evolution to not only color and cover, but also to protect and
enhance. Mineral makeup today is almost as much about skin care benefits as it is
about the color and coverage.

That is not to say that mineral makeup is intended to replace skin care; it is meant to
enhance it. The mineral makeup category must continue to offer innovative and
exciting formulations in order to lead the cosmetic industry. Currently, most mineral
formulas are cosmetic-grade only, but the future could bring drug formulas right into
color formulas. The beauty of this is that the consumer is more likely to use color
more consistently than skin care. The more a person uses products with beneficial
ingredients, the better the results will be.

Following are the coming trends for mineral makeup.

Face color formulations. Formulations for the face will do more than just correct
uneven skin tone; they will address texture issues, such as large pores, scars and pitted
skin. The coverage will camouflage without a heavy look or feel. Look for products
that will address issues such as discoloration; not just covering it, but also reversing

7
its symptoms, whether red (rosacea and acne), blue (dark circle and bruising), brown
(hyper pigmentation) or white (hypo pigmentation).

Eye color formulations. Formulations for the eyes will still help make the eyes look
larger and brighter, but will also address issues such as wrinkles, dark circles,
sagging, and thinning eyelashes and eyebrows. Look for concealers and eye shadows
that have powerful ingredients included directly in the color formula.

New pharmaceutical skin care formulations are offering solutions for longer and
darker eyelashes. This will create resurgence in the sale of mascara and eye liner, as
well as other eye color products in general. In particular, the category of tubular
mascara will skyrocket.

Tubular mascara formulas use a flexible copolymer instead of traditional oils and
waxes and can literally be built on top of the lashes to add even more length. Tubular
mascara offers a water-resistant formula without compromising the lashes; it is easily
removed with just warm water and pressure. Women pay approximately $120 per
month for the upkeep of longer, darker lashes, and they will demand a mascara
formula that will not break them down. One weakness of the tubular mascara is that it
does not offer the thickening power of traditional oil and wax formulas. Look for a
product that does both in one application. So far, most options require a two-step
process to enjoy both of these benefits.

Lip color formulations. Formulations for the lips have already addressed long-
wearing, plumping and moisturizing issues. The one area that needs to be seriously
examined is the long-term damage that high-shine lip glosses are doing to the lips. Lip
melanomas have increased dramatically during the past few years, and wearing high-
shine lip gloss is like wearing a magnifying glass over the lips. To counteract this
danger of sun damage, future formulas should include protective ingredients, such as
zinc and titanium dioxide. Chemical sunscreens on the lips will raise the heat factor
on the lips and exacerbate conditions, such as canker sores.
Sun care formulations. Formulations for sun care will continue to improve, and the
category of powder sunscreen has brought sun care formulas to a new level. The heat

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factor of chemical sunscreens is important because heat can exacerbate skin
conditions, especially acne and hyper pigmentation.

PROFILE OF LAKME

Lakmé is an Indian cosmetics brand which is owned by Hindustan Unilever and run
by CEO Puskharaj Shenai. Having Shraddha Kapoor as the ambassador, it ranked at
number 1 among the cosmetics brands in India. Lakme started as a 100% subsidiary
of Tata Oil Mills (Tomco). It was named after the French opera Lakmé, which itself is
the French form of Lakshmi (the goddess of wealth) who is renowned for her beauty.
It was started in 1952 famously, because the Prime Minister Jawaharlal Nehru was
concerned that Indian women were spending precious foreign exchange on beauty
products and personally requested JRD Tata to manufacture them in India. Simone
Tata joined the company as director and went on to become the chairperson. In 1996,
Tata sold off their stakes in Lakmé Lever to HLL, for Rs 200 Crore (45 million
US$),$), and went on to create Trent and Westside. Even today, when most
multinational beauty products are available in India, Lakme still occupies a special
place in the hearts of Indian women.

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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 110
salons all over India providing beauty services. Lakme' has been ranked as 47th most
trusted brand in India by The Brand Trust Report The company is the title sponsor
for Lakme Fashion Week (LFW) a bi-annual fashion event which takes place in
Mumbai

Industry Personal care

Founded 1952
Founder J. R. D. Tata

Headquarters India
Sanjiv Mehta (CEO Unilever)
Pushkaraj Shenai(CEO Lakmé)
Key people
Purnima Lamba (Head Innovations)
Shraddha Kapoor (ambassador)
Cosmetics, beauty products, and
Products
Salon services
Website lakmeindia.com

Product types

Cosmetics include skin-care creams, lotions, powder, perfumes, lipsticks, fingernail

and toe nail polish, eye and facial makeup ,towelettes, permanent waves, colored
contact lenses, hair colors, hair sprays and gels, deodorants, hand sanitizer, baby
products, bath oils, bubble baths, bath salts, butters and many other types of products.
A subset of cosmetics is called "make-up," which refers primarily to colored products
intended to alter the user’s appearance. Many manufacturers distinguish between
decorative cosmetics and care cosmetics.

Most cosmetics are distinguished by the area of the body intended for application.

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• Face Primer, Come in various formulas to suit individual skin concerns. Most are
meant to reduce the appearance of pore size, prolong the wear of makeup, and
allow for a smoother application of makeup. Applied before foundation.

• Eye Primer, Used to prolong the wear of eye shadows on the eye as well as
intensify color payoff from shadows.

• Lip gloss, is a sheer form of lipstick that is in a liquid form.

• Lipstick, lip gloss, lip liner, lip plumper, lip balm, lip conditioner, lip primer, and
lip boosters. Lip stains have a water or gel base and may contain alcohol to help
the product stay on the lips. The idea behind lip stains is to temporarily saturate
the lips with a dye, rather than covering them with a colored wax. Usually
designed to be waterproof, the product may come with an applicator brush or be
applied with a finger.

• Concealer, makeup used to cover any imperfections of the skin. Concealer is often
used for any extra coverage needed to cover blemishes, or any other marks.
Concealer is often thicker and more solid than foundation, and provides longer
lasting, and more detailed coverage. Some formulations are meant only for the
eye or only for the face.

• Foundation, used to smooth out the face and cover spots or uneven skin
coloration. Usually a liquid, cream, or powder, as well as most recently, a light
and fluffy mousse, which provides excellent coverage as well. Foundation primer
can be applied before or after to get a smoother finish. Some primers come in
powder or liquid form to be applied before foundation as a base, while other
primers come as a spray to be applied after you are finished to help make-up last
longer.

• Face powder, used to set the foundation, giving a matte finish, and also to conceal
small flaws or blemishes.

• Rouge, blush or blusher, cheek coloring used to bring out the color in
the cheeks and make the cheekbones appear more defined. This comes in powder,
cream, and liquid forms.

• Contour powder/creams, used to define the face. It can be used to give the illusion
of a slimmer face or to even modify a person’s face shape as desired. Usually a
few shades darker than one’s own skin tone and matte in finish to create the

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 illusion of depth. A darker toned foundation/concealer can be used instead to
contour to create a more natural look.

• Highlight, used to draw attention to the high points of the face as well as to add
glow to the face. It comes in liquid, cream, and powder form. Often contains
shimmer, but sometimes does not. A lighter toned foundation/concealer can be
used instead to highlight create a more natural look.

• Bronzer, used to give skin a bit of color by adding a golden or bronze glow. Can
come in either matte, semi matte/satin, or shimmer finishes.

Mascara is used to darken, lengthen, and thicken the eyelashes. It is available in

natural colors such as brown and black, but also comes in bolder colors such as blue,
pink, or purple. There are many different formulas, including waterproof for those
prone to allergies or sudden tears. Often used after an eyelash curler and mascara
primer. There are now also many mascaras with certain components to help lashes to
grow longer and thicker. There are specific minerals and proteins that are combined
with the mascara that can benefit, as well as beautify.

Lakme is world renown and great cosmetic company .a wonderful gift hamper for
today’s women.

CATEGORIES

1. Lakme eyeliner and lipstick

2. Lakme kajal

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 3. Lakme strawberries face wash
4. Lakme radiant rose powder
5. Lakme nail enamel remover
6. Lakme shampoo
7. Lakme deep pore cleansing milk

MISSION:

BEAUTY FOR ALL

For more than a century, Lakme has devoted itself solely to one business: beauty. It is
a business rich in meaning as it enables all individuals to express their personality
gain self-confidence itself and open up to others.

Beauty is a language.

Lakme has set itself the mission of offering men & women worldwide the best
cosmetics innovation in terms of quality; efficacy & safety .It purses this goal by
infinite diversity of beauty needs and desires all over the world.

Beauty is universal.

Since its creation by a researcher, the group has pushing back the frontiers of
knowledge. Its unique research arms it to continually explore new territories & invent
the products of the future, while drawing inspiration from beauty rituals the world
over.

Beauty is science.

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By drawing on the diversity on its teams, & the richness & the complementarily of its
brand portfolio, Lakme has made the universalisation of beauty its project for the
years to come.

Lakme offering beauty for all.

SWOT ANALYSIS OF LAKME

Strengths in the SWOT analysis of Lakme

1. High Brand awareness: Lakme is a well-known brand in the cosmetic &

beauty industry. High visibility through targeting high end beauty
parlours/salons & also through sponsoring fashion events and strong
promotions has helped the company in making top of mind awareness.
2. Fantastic product line: Lakme contributes to the beauty of women through a
fantastic product line, which has amazing depth of products. Lakme is also
known to launch a variety of cosmetics which are innovative and are known to
solve the problem of cosmetics for women.
3. Extensive distribution system of the parent company: HLL is the parent
company who purchased it from TATA group. Since HLL is already an
established FMCG brand so it uses extensive distribution channel to make the
Lakme products available in the market. Also in addition to traditional
channel, it also uses unconventional distribution system to make the products
available at pharmacist, beauty parlors & salons.
4. Celebrity endorsement: Lakme positioned perfectly in the mind of
prospective consumers by targeting apt celebrities to represent their brand.
5. Strong parent company: HLL the parent company is the well-known
company in the FMCG industry has stable financial position which is good for
its group brands.

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Weaknesses in the SWOT analysis of Lakme

1. Limited presence in the premium market: Lakme have presence in the

VFM (Value for money) segment in which it is leader. Lakme is the overall
market leader in the colour cosmetic segment (lip care and nail enamel) with a
wide range of products and prices but when it comes to premium market
which is growing at the rate of 30% Revlon is the market leader.
2. Problem of differentiation: Its broad portfolio sometimes creates confusion
in the mind of the consumers. Such that, some products are known to be very
good but others are ignored because no differentiation is present for them.
3. Quality of Lakme salons: Falling quality of Lakme salons will result in the
negative word of mouth which can affect sales & growth of the company in
future.

Opportunities in the SWOT analysis of Lakme

1. Changing lifestyle: Migrating population & with the saturation of developed

economies, changing taste & preferences, Education & changing lifestyle of
the developing economies had resulted into growth in the grooming segment.
People now want to look sharp, smart & confident.
2. Growing premium segment: There is a growth in the demand of premium
segment goods of which grooming industry is not an exception. So with
growing demand if Lakme extend its presence in this segment then it will help
it in becoming a leader in grooming industry.
3. Co-creating the growth strategies: Creating more Collaborative &
participative community focused activities will help the company in building
brand image & co-creating growth opportunities.

Threats in the SWOT analysis of Lakme

1. Intense rivalry: Intensive competition from the local, national & International
players on price & availability factors is the major threat for the players in the
segment which is affecting the industry as a whole.
2. Counterfeit products: Fake products are directly affecting the brand image of
the company in the rural market & small towns.

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 3. International brands extending into other markets: International brands
like Revlon which have centuries of expertise in the Personal care industry can
affect the business of Lakme in the selected markets or can limit their growth
rate.
4. Increasing allergies cases: Due to change in the lifestyle skin is becoming
more sensitive due to which companies in the personal care industry face risk
of losing sales on allergic grounds.

COMPETITION INFORMATION OF LAKME

1. L’Oreal

L'Oréal S.A. is a French cosmetics company headquartered in Clichy, Hauts-de-

Seine with a registered office in Paris. It is the world's largest cosmetics company and
has developed activities in the field of cosmetics, concentrating on hair colour, skin
care, sun protection, make-up, perfume and hair care; the company is active in

16
dermatology, toxicology, tissue engineering, and biopharmaceutical research fields
and is the top nanotechnology patent-holder in the United States. The company is a
component of Euro Stoxx 50 stock market index.

2. Revlon

Revlon is an American cosmetics, skin care, fragrance, and personal care company
founded in 1932 by Charles Revson, brothers Joseph and Joel Roberts, and chemist,
Charles Lachman. The founders developed a new type of nail enamel, which used
pigments to create a wide range of shades. The company rapidly became a
multimillion-dollar organization and from 1940, Revlon began adding lipstick and
other makeup products to its range. Revlon products are now sold in more than 100
countries worldwide, although the US is the brand’s largest market, accounting for
more than half of sales.

Enterprise Value: $2.780m

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3. Colorbar

Colorbar Cosmetics is one of India’s leading brands of color cosmetics that has been
developed with the promise of providing its consumers world class innovative
products in a wide range of colors.

4. COTY

Coty, Inc., is an American beauty products manufacturer based in New York founded
in Paris, France, by François Coty in 1904. Its main products are fragrances, color
cosmetics and skin and body care products. It is known for its cooperation with
designers and celebrities for the creation of fragrances. Its biggest brands, or "power
brands" as it calls them, are: Calvin Klein (fragrance and cosmetics), Chloe
(fragrance), Davidoff (fragrance), y (fragrance), Marc Jacobs (fragrance), Philosophy
(beauty), Adidas (fragrance and beauty), Playboy (fragrance), OPI Products (beauty),
Rimmel London (make-up) and Sally Hansen (beauty).

5. P&G

Procter & Gamble Co., also known as P&G, is an American multinational consumer
goods company headquartered in downtown Cincinnati, Ohio, United States, founded
by William Procter and James Gamble, both from the United Kingdom. Its products

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include cleaning agents and personal care products. Prior to the sale of Pringles to the
Kellogg Company, its product line also included foods and beverages.

In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it
was streamlining the company, dropping around 100 brands and concentrating on the
remaining 65 brands, which produced 95% of the company's profits. A.G. Lafley, the
company's chairman, president, and CEO until October 31, 2015, said the future P&G
would be "a much simpler, much less complex company of leading brands that's
easier to manage and operate". David Taylor became P&G CEO and President
effective November 1, 2015

6. Mary Kay

Mary Kay Inc. is an American privately owned multi-level marketing/direct sales

company that sells cosmetics products. According to Direct Selling News, Mary Kay
was the sixth largest direct selling company in the world in 2011, with net sales of
USD 2.9 billion.

Mary Kay is based in Addison, Texas, outside Dallas. The company was founded by
Mary Kay Ash in 1963. Richard Rogers, Mary Kay's son, is the chairman, and David
Holl is president and was named CEO in 2006

7. Cover Girl

Cover Girl is an American cosmetics brand founded in Maryland, United States, by

the Noxzema Chemical Company (later called Noxell, a popular face cleaner) and
acquired by Procter & Gamble in 1989. The Noxell Company advertised this
cosmetics line by allowing "cover girls", fashion models, actresses, and singers who
appear on the front cover of women's magazines, to wear its products. Cover Girl
makes up for lack of direct individual customer service by providing a wide variety of
cosmetics available at reasonable prices.

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CHAPTER 2 – CONCEPTUAL DISCUSSION
(THEORETICAL BACKROUND)

Following are latest articles published on Lakme:

1. Shraddha Kapoor turns brand ambassador of Lakme –

indianexpress.com
Retrieved on November 12, 2015

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After Kareena Kapoor Khan, it’s now Shraddha Kapoor has been roped in as the
brand ambassador of the leading cosmetic brand Lakme. Talking about her
association with the brand, Kapoor said. “It’s a very special association.

“I was the face of Lakme a few years ago and I am back this time as the brand
ambassador of Lakme. To be the face of the country’s leading cosmetic brand is
definitely a privilege,” said Shraddha. The actor is also extremely excited about her
new look in the campaign and their new product Lakme Lip Love.

2. Lakme Fashion Week Hosts Its First Ever Audition –

indianexpress.com
Retrieved on July 11, 2016

For the first time ever in the history of Indian fashion, Lakme Fashion Week hosted
its auditions in Assam to incorporate more faces from the northeast. The Lakme
Fashion Week audition was jointly organized by leading cosmetics brand Lakme and
IMG Reliance Pvt. Ltd. It was held in association with Northeast India Fashion &
Design Council (FNDC) at Terra Mayaa Lounge, Guwahati. Over 100 girls from the
northeastern states registered for the auditions. Renowned model Sonalika Sahay and
Assamese actress Barsha Rani Baishya were among the judges at the audition. The
semi-finalists set the ramp on fire during the second round of LFW audition as they
showcased traditional Assamese mekhala chador designed by local designers. After
several rounds of grueling auditions, two girls from Guwahati, Suzanne and Jhanvi
Deuri made it. It is worth mentioning that the winners will get a chance to walk at
Lakme Fashion Week which will take place in Mumbai from August 24-28. The
northeast is a key market for the growth of fashion and creative industries with its rich
cultural lineage and tribal heritage in design, eclectic range of traditional textiles,
large indigenous weaving legacy and its young educated demographic.

3. L’Oreal beats lakme on e-store Nykka –

timesofindia.indiatimes.com
Retrieved on July 11, 2016

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MUMBAI: In what may not come across as a rosy picture for Hindustan Unilever's
(HUL's) Lakme, global cosmetics giant L'Oreal — with its combined strength of two
brands Maybelline New York and L'Oreal Paris — has acquired a larger share of the
cosmetics market at leading online beauty store Nykaa.

A significant number of online cosmetics sales take place on Nykaa. Data suggest that
Maybelline New York and L'Oreal Paris brands have together garnered, on an
average, a monthly market share of about 43% during January to June this year, while
Lakme's share stands at an average 25%. On a stand-alone basis, Lakme is still a
leading cosmetics brand as Maybelline New York has an average monthly share of
28% (January-June) and L'Oreal Paris 15%.

But L'Oreal's investments in the digital space have led to the strengthening of its share
in this market. In a recent interview to TOI, L'Oreal India's MD Jean-Christophe
Letellier said, "India is transforming gradually but the digital revolution is presenting
a growth prospective for us. It has changed the way we look at the future and engage
with consumers." At a global group level, 25.5% of net media investments of L'Oreal
are into digital. Last year, L'Oreal's global sales through e-commerce were at 1.3
billion euros.

"E-commerce has become a new continent by itself. In India, where we have a

significant share of our investment into digital to interconnect with consumers, we
have a very large footprint in social media. We are leading in the category in terms of
our e-commerce market share," said Letellier.

An HUL spokesperson said: "As a matter of policy we do not comment on market

shares. However, we wish to clarify that Lakme is the leading cosmetics brand in both
modern trade and e-commerce channels in India. Lakme is growing ahead of the
market in both these channels. Lakme is the largest makeup brand on popular e-
commerce portals such as Flipkart, Myntra and Jabong. Even on Nykaa, Lakme has
been consistently growing its consumer franchise and has emerged as the largest
cosmetics brand."

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The organized cosmetics market in India has for long been dominated by Lakme,
India's first home-grown cosmetics brand that was once owned by the Tata Group,
and later acquired by HUL. Even as new multinational brands have entered the Indian
market, Lakme has held its overall leadership position backed by HUL's strong
marketing muscle.

3. Top 10 cosmetic brands in India – top10companiesinindia.co.in

Retrieved on June 3, 2016

Here is the list of top 10 cosmetic brands in India; these are the well-known
organisation engaged in manufacturing of hair care, body care and personal care
related products. These are the best cosmetics companies in India and ranking of
companies are frequently being updated by our editorial team.

1. Lakme
Lakme is a superior Indian cosmetic brand and a part of giant Hindustan Unilever and
it was founded in the year 1952. The company holds significant share in Indian
cosmetic industry and it is also rated one of the 50 trusted brands in the country in all
product category.

4. Top 10 cosmetic brands in India – business.mapsofindia.com

Retrieved on

Cosmetics are something which have become an integral part of a woman’s fashion
statement. They not only manage to camouflage her flaws but also enhance her
features. ASSOCHAM prepared a report in 2012 on India’s cosmetics market and
showed that it has been growing at an annual pace of 20%. In 2013 the Indian
cosmetic industry is valued at 29,000 crores. The following list tries to capture the
various brands that are popular among the consumers due to different reasons ranging
from being economical, or being organic or being made up of superior ingredients.

1. Lakme

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Lakme is a reputed Indian brand which is owned by Unilever. The company is headed
by Mr Anil Chopra who is the CEO of the company. Lakme was founded in the year
1952 by JRD Tata. In 1996 the Tata group decided to sell off its stake in Lakme to
Hindustan Lever Limited. Lakme was also ranked at 47th as one of the most trusted
brands in India according to The Brand Trust Report in 2011. This brand also
sponsors the Lakme Fashion Week (LFW) twice a year. It also launched the Lakmé
Perfect Radiance and Lakmé eyeconic kajal which gained significant market share. In
the financial year 2012, Hindustan Unilever Limited had a rise in profit before tax and
interest of about 23%.

What is Marketing Strategy?

Marketing strategy has the fundamental goal of increasing sales and achieving a
sustainable competitive advantage.[1] Marketing strategy includes all basic, short-
term, and long-term activities in the field of marketing that deal with the analysis of
the strategic initial situation of a company and the formulation, evaluation and
selection of market-oriented strategies and therefore contribute to the goals of the
company and its marketing objectives.

What are the 4P’s of Marketing or Marketing Mix?

The use of a marketing mix is an excellent way to help ensure that ‘putting the right
product in the right place,…’ will happen. The marketing mix is a crucial tool to
help understand what the product or service can offer and how to plan for a
successful product offering. The marketing mix is most commonly executed through
the 4 P’s of marketing: Price, Product, Promotion, and Place.

Product

The product is either a tangible good or an intangible service that is seem to meet a
specific customer need or demand. All products follow a logical product life cycle and
it is vital for marketers to understand and plan for the various stages and their unique
challenges. It is key to understand those problems that the product is attempting to
solve. The benefits offered by the product and all its features need to be understood
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and the unique selling proposition of the product need to be studied. In addition, the
potential buyers of the product need to be identified and understood.

Price

Price covers the actual amount the end user is expected to pay for a product. How a
product is priced will directly affect how it sells. This is linked to what the perceived
value of the product is to the customer rather than an objective costing of the product
on offer. If a product is priced higher or lower than its perceived value, then it will not
sell. This is why it is imperative to understand how a customer sees what you are
selling. If there is a positive customer value, than a product may be successfully
priced higher than its objective monetary value. Conversely, if a product has little
value in the eyes of the consumer, then it may need to be underpriced to sell. Price
may also be affected by distribution plans, value chain costs and markups and how
competitors price a rival product.

Promotion

The marketing communication strategies and techniques all fall under the promotion
heading. These may include advertising, sales promotions, special offers and public
relations. Whatever the channel used, it is necessary for it to be suitable for the
product, the price and the end user it is being marketed to. It is important to
differentiate between marketing and promotion. Promotion is just the communication
aspect of the entire marketing function.

Place

Place or placement has to do with how the product will be provided to the customer.
Distribution is a key element of placement. The placement strategy will help assess
what channel is the most suited to a product. How a product is accessed by the end
user also needs to compliment the rest of the product strategy.

What is the STP process?

"One of the most important strategic concepts, contributed by the marketing discipline

25
to business firms and other types of organizations, is that of market segmentation".
Market Segmentation is a process, in which groups of buyers within a market are
divided and profiled according to a range of variables, which determine the market
characteristics and tendencies. The process of Segmentation is part of a chronological
order, which follows on to include Targeting and Positioning. Targeting is the process
of identifying the most attractive segments from the segmentation stage, usually the
ones most profitable for the business. Positioning is the final process, and is the more
business-orientated stage, where the business must assess its competitive advantage
and position itself in the consumer’s minds to be the more attractive option in these
categories.

Segmentation

Segmenting a market has widely been debated over the years as researchers have
argued over what variables to consider when dividing the market. Approaches through
social, economic and individual factors, such as brand loyalty, have been considered
along with the more widely recognized geographic, physiographic, demographic and
behavioral variables proposed by Philip Kotler. Segmenting a market therefore, is a
process of organising the market into groups that a business can gain a competitive
advantage in. They must, however, avoid over-fragmenting the market as the diversity
can make it difficult to profitably serve the smaller markets. The characteristics
marketers are looking for are measurability, accessibility, sustainability and action
ability.

Measurability – The understanding of size, purchasing characteristics and value needs

of a particular segment

Accessibility – The ability to communicate with the segment in an effective manner

Sustainability – The segment is profitable enough to differentiate itself from other

segments in the market and maintains the value the business offers.

Action ability – The capability of an organization to create a competitive advantage

with its offering in the specific segment of the market

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There are two approaches to segmenting a market - a discovery approach or an
analytic approach. Each approach is appropriate to the type of business and market
they are approaching.

An analytic approach is a much more research and data based approach, where two
sets of information are derived and used to segment the market. The two approaches
give the business an idea for the future profitability of a segment, and the tendencies
and behaviours it portrays. The first approach gives them an idea on the future growth
of the segment, and whether its investment outcome is worthwhile. This, therefore,
will usually be done in advance. The second approach is more based around the
observation of the buying behaviours of the segment and is more based around
primary research.

The discovery approach is more suited to a market with a limited customer base, and
the process of discovering segments is based on interest in the offer or a similar offer
the business may be able to provide. Because of this, a discovery-based approach is a
much timelier process by which to determine the profitable segments. Both
approaches can benefit from elements of the other and, in most situations, work well
in unison with each other when determining a profitable and defined segment.

Targeting

Targeting is a follow on process from segmentation, and is the process of actually

determining the select markets and planning the advertising media used to make the
segment appealing. Targeting is a changing environment. Traditional targeting
practices of advertising through print and other media sources, has made way for a
social media presence, leading a much more ‘web-connected’ focus. Behavioural
targeting is a product of this change, and focuses on the optimization of online
advertising and data collection to send a message to potential segments. This process
is based around the collection of ‘cookies’, small pieces of information collected by a
consumer’s browser and sold to businesses to identify potential segments to appeal to.
For example, someone consistently accessing photography based searches is likely to

27
have advertisements for camera sales appear, due to the cookie information they
deliver showing an interest in this area. Whilst targeting a market, there are three
different market coverage choices to consider - undifferentiated, differentiated and
niche marketing. Choosing which targeting choice to pursue depends on the product
or service being offered. Undifferentiated marketing is the best option to focus on the
market as a whole and to promote products that have a wide target segment, whilst
differentiated and niche marketing are more specialized and focus on smaller, more
selective segments.

Positioning

Positioning us the final stage in the ‘STP’ process and focuses on how the customer
ultimately views your product or service in comparison to your competitors and is
important in gaining a competitive advantage in the market. Therefore, customer
perceptions have a huge impact on the brands positioning in the market. There are
three types of positioning that are key in positioning the brand to a competitive
advantage; these are Functional Positioning, Symbolic Positioning, and experiential
positioning. Functional Positioning is focused on the aspects of the products or
services that can fulfill consumers’ needs or desires. Symbolic Positioning is based on
the characteristics of the brand that fulfill customers’ self-esteem. Experiential
positioning is based around the characteristics of the brands that stimulate the sensory
or emotional connection with the customers. A combination of the three is key to
positioning the brand at a competitive advantage to its immediate competition.
Overall, positioning should provide better value than competitors and communicate
this differentiation in an effective way to the consumer.

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4ps and STP of Lakme

Promotional strategies

 Promotional posters.
 Launch of beauty magazines.
 Advertisement through film Commercials.
 Open spa to promote the Brand.
 Selecting reputed brand ambassador.
 Sponsoring and Social Responsibility.

Start campaign for safe cosmetics which was started in February 2013.

Distribution strategies:

Widen distribution network by giving various incentives to distributors, retailers,

stockiest etc in order, not to lose self space Product Modification

Positioning strategies:

 Most innovative.
 High Quality, Advanced products & affordable price.
 Only cosmetic brand in world that has products in all the segments Consumer,
Luxury, Professional & Pharmaceuticals.

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CHAPTER 3: RESEARCH METHODOLOGY

The process used to collect information and data for the purpose of making business
decisions. The methodology may include publication research, interviews, surveys
and other research techniques, and could include both present and historical
information.

Methodology is the systematic, theoretical analysis of the methods applied to a field

of study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge.

The word research is composed of two syllables “Re” and “Search”. “Re” is the prefix
meaning ‘Again or over again or a new’ and “Search” is the latter meaning ‘to
examine closely and carefully’ or ‘to test and try’. Together they form, a careful,
systematic, patient study and investigation in some field of knowledge undertaken to
establish principles / policies.

Research can also be defined as :

1. Search for knowledge

2. Systematic and scientific search for getting relevant answers on any taken up
specific topic.

3. Scientific enquiry into a subject.

4. Research is a movement from the unknown to the known.

5. It is the voyage of discovery Acc to Bulmer, Research is primarily committed to

establishing systematic, reliable and valid knowledge about the social world.

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 TYPES OF DATA USED IN RESEARCH

 PRIMARY DATA

Primary and secondary data fall within the scope of statistics and can be used as part
of a research method. The collected data may assist a company in measuring,
assessing and discussing the results of data collection for whatever purposes the
information is required.

This is where the differences between the two become relevant as some companies
need a direct approach and therefore uses primary data sources whereas others need
previously collected information - that is, secondary data - which they can apply to
their own situation.

Primary data can be explained, therefore, as information collected from sources such
as personal interviews, questionnaires or surveys with a specific intention and on a
specific subject, and observation and discussion by the researcher him or herself,
which information is then assessed by that person.

It is a direct approach and, as it is tailored to a company's particular needs, reveals

apparently, much-needed information to that company which started the research; that
is, the results are used for the purpose for which they were originally intended. It can
be a lengthy process but does provide first-hand information.

Some Advantages of using Primary data:

1. The investigator collects data specific to the problem under study.
2. There is no doubt about the quality of the data collected (for the investigator).
3. If required, it may be possible to obtain additional data during the study period.

Some Disadvantages of using Primary data (for reluctant/ uninterested investigators):

1. The investigator has to contend with all the hassles of data collection-
 deciding why, what, how, when to collect
 getting the data collected (personally or through others)
 getting funding and dealing with funding agencies
 Ethical considerations (consent, permissions, etc.)

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2. Ensuring the data collected is of a high standard-
 all desired data is obtained accurately, and in the format it is required in
 there is no fake/ cooked up data
 unnecessary/ useless data has not been included
2. Cost of obtaining the data is often the major expense in studies

 SECONDARY DATA

Secondary data is information that is already available somewhere, whether it be in

journals, on the internet, in a company's records or, on a larger scale, in corporate or
governmental archives.

Secondary data allows for comparison of, say, several years worth of statistical
information relating to, for example, a sector of the economy, where the information
may be used to measure the effects of change or whatever it is that is being
researched. Sometimes both methods are used in research as companies want to
measure their own responses and previously-generated responses from which a
comparison can be made.

Some Advantages of using Secondary data:

1. The data’s already there- no hassles of data collection
2. It is less expensive
3. The investigator is not personally responsible for the quality of data (“I didn’t
do it”)
Some disadvantages of using Secondary data:
1. The investigator cannot decide what is collected (if specific data about
something is required, for instance).
2. One can only hope that the data is of good quality
3. Obtaining additional data (or even clarification) about something is not possible
(mostly)

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 RESEARCH METHODOLOGY USED

The methodology adopted for this project is exploratory in nature since there is no
hypothesis that has to be tested. The conclusions have been drawn by exploratory
research work.

There have been two sources of information collected:

a) Primary Sources

I have met retailers of the company Lakme and have been able to get first hand
information regarding the product, its features and the buying patterns of the product.
Their input has been valuable.

b) Secondary Sources

Secondary source has played a vital role to play in this report. A good amount of data
has been collected from various published articles and reports found in magazines and
journals. Another vital source has been the Internet and particularly the companies
own website.

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