INDUSTRIAL EXPOSURE PROJECT

ON

“A STUDY OF COSMETIC INDUSTRY

LAKME IN INDIA.”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR

THE AWARD OF DEGREE OF BACHELOR IN
BUSINESS ADMINISTRATION 2016-2019

UNDER THE GUIDANCE OF:

MR. SHAKTI SHARMA

SUBMITTED BY:

PARUL GUPTA
PRN No. - 1628100630

BHARATI VIDYAPEETH DEEMED

UNIVERSITY
SCHOOL OF DISTANCE EDUCATION

Academic Study Centre-BVIMR, New Delhi

An ISO 9001:2008 Certified Institute

NAAC Accredited Grade “A” University

1
 STUDENT UNDERTAKING

I PARUL GUPTA (BBA 4SEM) would like to declare that the

Project report entitled “A STUDY OF COSMETIC
INDUSTRY LAKME IN INDIA”. Submitted to Bharati
Vidyapeeth Deemed University School of Distance Education,
Academic Study Centre-BVIMR, and New Delhi in partial
Fulfillment of the requirement for the award of the degree.

It is an original work carried out by under the guidance of

MR.SHAKTI SHARMA. All respected guides, faculty
member and other sources have been properly acknowledged
and the report contains no plagiarisms.

To the best of my knowledge and belief the matter embodies

in this project is a genuine work done by me and it has been
neither submitted for assessment to the university nor to any
other University for the fulfillment of the requirement of the
course of study.

PARUL GUPTA

2
ACKNOWLEDGEMENT

No task can be achieved alone, particularly while attempting to finish a

project of such magnitude. It took many special people to facilitate it and
support it. Hence, I would like to acknowledge of their valuable support
and convey my humble gratitude to them.

I would like to express my sincere gratitude to MR.SHAKTI SHARMA

for guiding me on the project of “A STUDY OF COSMETIC
INDUSTRY LAKME IN INDIA”.

I would like to thank him as he had always been open to discussion and
frequently enquired about the project and any problems faced etc. he has
also given me valuable guidance as to how to go about the project.

I have put my best effort to make this project as informative and

understandable as possible. I have done the best I could do and have been
honest to the company, and most importantly to myself.

Thank you SIR for supporting me in making this project.

PARUL GUPTA

3
 PREFACE
Practical knowledge is an important suffix of theoretical knowledge. One
cannot rely solely on theoretical knowledge. Classroom lectures clarify
the fundamental aspects of management, but they must be correlated with
the practical training situations. It is that ideology that practical
knowledge should be made mandatory for the curriculum and has a
significant role to play in the fields of business management.

I have put in my sincere efforts to make this INDUSTRIAL EXPOSURE

project a real success. My project is on “A STUDY OF COSMETIC
INDUSTRY LAKME IN INDIA”, its impact on the market as the
largest IT player and on the economy. This study would help to
understand the position and the growth of the company.

4
CONTENTS

Chapter 1: Introduction to Company

1. Nature of Business
2. Type & ownership Pattern
3. Organizational Structure
4. Production Lay out
5. Organizational Policies

Chapter 2: Industrial Analysis

1. Industry Overview
2. Current Issues
3. Key Competitors
4. Environmental Scanning
5. Porters five forces model of competition –Michael Porter

Chapter 3: Marketing Strategies

1. Products of Company
2. 4 Ps (Product: Price, Place & Promotion)
3. STP (Segmentation, Targeting and Positioning)
4. Distribution Channels
5. Promotion Strategies

Chapter 4: Financial Analysis

1. Sources of Finance
2. Ratio Analysis
3. Net Profit/ Balance sheet

5
Chapter 5: Key Learning’s from the Company and
Recommendations
1. Performance Analysis of the Company
2. Reasons for the expansion/diversification of Company
3. Comment on Organizational Leadership
4. Market share/growth rate of Company
5. SWOT Analysis of the Company

Chapter 6: Findings

Chapter 7: Conclusions and Suggestions

Bibliography

6
 CHAPTER – 1

INTRODUCTION TO COMPANY

Lakmé is an Indian cosmetics brand which is owned by Hindustan Unilever.

Having Kareena Kapoor as the brand 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$).

In the Brand Trust Report 2012, Lakme was ranked 104th among India's most trusted
brands and following the next year it was ranked 71st among India's most trusted
brands. In 2014, Lakme was ranked 36th among India's most trusted brands according
to the Brand Trust Report 2014. The company is the title sponsor for Lakme Fashion
Week (LFW) a bi-annual fashion event which takes place in Mumbai.

7
HISTORY

Way back in the early 1950s, an economic survey of spending in India revealed that
Indian women were splurging on imported cosmetics. Nehru was not very happy
because it was affecting the forex reserves. Maintaining the forex reserves was of
utmost importance considering the fact that Indian economy was still in its nascent
stage. Nehru hit upon the idea of a home grown beauty brand which would cater to
cosmetic needs of Indian women.

Although some sources claim that Nehru took up this issue because a certain women’s
association approached him to put forward their concerns about non-availability of
affordable beauty products. But having studied about Nehru’s visions and views, I am
of the opinion that he had considered beauty products as luxury and would have never
spent any time/effort to satisfy those women’s luxurious needs. Instead, he took up
the issue because it was affecting forex and related to the economy. Banning such
products was impossible in a democracy, so starting an Indian company was the only
solution.

It was a challenge of its kind because it had to fulfill the needs of “Indian skin” in
which foreign brands fell short and at the same time, have a brand identity which
would appeal to the upper middle class women who were really the ones splurging on
expensive foreign branded cosmetics.

8
Nehru knew that only JRD Tata had the passion and entrepreneurship skills to tackle
the above challenges and personally requested him to come up with a solution, which
he readily accepted.

Doing market research to find out the needs of Indian women and hiring experts &
chemical engineers from the beauty industry was not really a challenge for JRD but
coming up with a brand identity certainly was. Finally, after giving it a lot of thought,
he named it “Lakmé” after the French Opera.

The reason he chose this particular French opera

name was because “Lakmé” derives its name
from Sanskrit for “Lakshmi”, the goddess of
wealth and epitome of beauty. It was the perfect
name for the company as it was actually
bringing wealth to the nation (by saving
precious forex), could correlate itself very
well with the beautiful Goddess and it
appealed well to upper middle class women

9
due to its videshi sounding name (“Lakshmi lipstick” or “Lakshmi eyeliner” would
have sounded very desi).

That was the kind of thought process which went into any job which JRD Tata took
up and the results were always exemplary. Lakme was started in 1952 as a 100%
subsidiary of Tata oil mill. It was a hugely successful brand and the rest is history. In
1996, Tata sold its stake in Lakme to HLL since it felt that HLL being an FMCG
company will do better justice to the company and HLL have continued to efficiently
nurture the brainchild of JRD. A recent survey ranked Lakme to be one of the top 50
most trusted brands in India.

TYPES AND OWNERSHIP PATTERN

Name Designation Role

MR. PUSHKARAJ CEO Pushkaraj Shenai is the CEO,
SHENAI Lakmé Lever, the beauty services
business of Unilever which
operates over 235 salons in over
65 cities in India.He has over 20
years of experience in strategy,
operations, marketing and sales
across consumer goods, retail and
real estate. Prior to Lakmé Lever,
Shenai was COO, Piramal Realty
where he built the team
responsible for land acquisition,
project management, marketing
and sales for a portfolio of 18
million sq.ft.

MR. DINESH THAPAR CFO Dinesh is currently General

Manager & Head of Treasury,
Insurance, Mergers &

10
 Acquisitions and Investor

Relations at Hindustan Unilever

Limited. Based at the Head Office
in Mumbai - India, he leads the
agenda for these functions at the
US$ ~5bln revenue, US$ ~30bln
market capitalization company. In
a career spanning over 15 years
with Unilever, he has held a
variety of leadership roles
covering the areas of Corporate
Finance, Business Finance and
Supply Chain.

11
Lakme Lever Private Limited provides beauty care services in the area of skin and
hair through own beauty salons and franchisees in India. It operates through Beauty
Salon and Job Work Contracts segments. The company owns and manages 280
salons, including 52 company owned and managed, and 228 franchisee salons. It also
operates and manages institutes and training centers in the field of beauty and
wellness services. In addition, the company sells beauty products. Further, it engages
in the job work business and converts raw materials and packing materials into semi-
finished and finished goods. The company was incorporated in 2008 and is based in
Mumbai, India. Lakme Lever Private Limited

12
PRODUCTION LAYOUT

13
 ORGANIZATIONAL POLICES

Purpose & principles

Our corporate purpose states that to succeed requires "the highest standards of
corporate behaviour towards everyone we work with, the communities we touch, and
the environment on which we have an impact."

Always working with integrity

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Conducting our operations with integrity and with respect for the many people,
organisations and environments our business touches has always been at the heart of
our corporate responsibility.

Positive impact 

We aim to make a positive impact in many ways: through our brands, our commercial
operations and relationships, through voluntary contributions, and through the various
other ways in which we engage with society. 

Continuous commitment

We're also committed to continuously improving the way we manage our

environmental impacts and are working towards our longer-term goal of developing a
sustainable business.

Setting out our aspirations 

Our corporate purpose sets out our aspirations in running our business. It's
underpinned by our code of business Principles which describes the operational
standards that everyone at Unilever follows, wherever they are in the world. The code
also supports our approach to governance and corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the
same standards we do. Our Business partner code, aligned to our own Code of
business principles, comprises ten principles covering business integrity and
responsibilities relating to employees, consumers and the environment.

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OUR VALUES

We make, market and sell unique brands, which give or bring pleasure to
millions of consumers around the world every day.

We are an international company, proud of our long heritage, respectful of the

social and natural environment in which we operate, supportive of our
consumers, customers and colleagues, and above all, we are passionate about
success.

This success has been built upon understanding the needs of our consumers,
customers and other stakeholders and by operating to a clearly defined set of
values. But around us the world changes. The obligations of business to society
have broadened. Yet, at the same time we want to ensure the continuation of our
own heritage.

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CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) is at the heart of our success. At Lakme

India we have always believed that good values and good business go hand in
hand. It's part of our heritage and the way we do things today. CSR is about
growing our business responsibly.

Lakme India has a tradition of caring for the environment and enriching the
quality of lives of the communities we live and work in, through a variety of
result-oriented programs.

CHAPTER-2
INDUSTRY ANALYSIS
INDUSTRY OVERVIEW

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Key facts
Lakme was the first major beauty brand in India and takes pride in being the expert on
Indian 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 ³Beauty Advisors´ in the country.

Our vision
Unilever products touch the lives of over 2 billion people every day ± whether that's
through feeling great because they've got shiny hair and a brilliant smile, keeping
their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or
healthy snack.

A clear direction
The four pillars of our vision set out the long term direction for the
Company ± where we want to go and how we are going to get there: 
 We work to create a better future every day
 We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
 We will inspire people to take small everyday actions that can add up to a big
difference for the world.

CURRENT ISSUES

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LFW 2018: Decoding Hina Khan's Fashion Funda
After creating waves with her fashion aesthetics in Bigg Boss 11,
television actor turned showstopper for designer label OSAA by Adarsh
on day 3 of Lakmé Fashion Week Summer/Resort 2018. In an interaction
with News18.com, the actor talks about her "fashionable" childhood,
image transformation for viewers and why she decided to not repeat
clothes in the Bigg Boss house.

The other Kaif sister who may just surprise Bollywood

2/03/2018

Isabelle Kaif wasn't a name one had really heard of. That was until December last
year when Lakme, India's leading beauty brand, announced that Katrina Kaif's
younger sister Isabelle would now be its brand ambassador (Katrina, a former face of
Lakme herself, has six sisters and one brother; Isabelle is the youngest and the only
other sibling to enter the glamour industry). Lakme has had its own legacy of
distinguished ambassadors such as Rekha, Lisa Ray and Aishwarya Rai Bachchan.
While the brand's current ambassadors, Kareena Kapoor Khan and Shraddha Kapoor,

19
are both A-list celebrities, Isabelle is relatively new to the world of showbiz and may
well be on her way to making a much bigger impact.

Refreshingly enough, Isabelle is not in denial about the perks of being a star sibling.
"Yes, that first meeting happens because they know I am Katrina's sister, but after
that, it has nothing to do with whose sister you are," she says. Luckily for Isabelle, she
does have credentials to back her aspirations - trained at the Lee Strasberg Theatre
and Film Institute in New York, she has been a jazz and ballet dancer. Such is her
passion for dance that once she even taught Katrina steps of a dance sequence the
actress was supposed to do for a film. "I remember going to one of the film rehearsals
with Katrina when I was only 17 years old. They were learning a dance sequence. We
got home and Katrina could not remember all the steps and asked the team to email
her some notes, so that she could practise at home. But before they could, I showed
her the steps."

Though she is yet to make her Bollywood debut, Isabelle has had her own acting stint.
She forayed into cinema in 2014 with the Canadian romantic comedy Dr Cabbie that
also starred Kunal Nayyar (of Big Bang Theory fame) and Lillete Dubey. The film
was produced by Salman Khan, who has also been Katrina's 'godfather' in the Indian
film industry. While the film did not receive either critical or commercial acclaim,
Isabelle did not let its non-performance determine her career moves. She remained in
the West and continued to explore the industry and founded a multi-disciplinary
production company based in New York. Some of the plays produced by them did, in
fact, receive their fair share of appreciation. "After finishing Lee Strasberg and
working in New York for a bit, I moved to Los Angeles. I wanted to be a part of the
atmosphere and also wanted to gain some practical knowledge on various aspects of
filmmaking. I shot for a few music videos and did some commercial work. I also
worked as an assistant director." Not to mention a "little stint as a line producer,
which we shall not speak about". Summing up her experience, Isabelle says, "I really
respect production people. Being on set is honestly the best way to actually
understand the process of filmmaking."

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Mumbai: India Fashion Week Drops Grand Finale after Amazon's
Contract Ends
11/03/2018
India Fashion Week just lost its ability to climax. The programme of the 31st edition
of India Fashion Week sponsored by Amazon India and scheduled to take place from
March 14 to March 18 in New Delhi, reveals that the customary sparkling grand
finalé will not be held this season. Instead, every 9 pm show of the four-day event will
carry a 'finale' tag.

While the sponsor justifies the decision as one that "commemorates as many
designers as possible and celebrates inclusivity", insiders lament the climb down of an
event that once saw a stellar 25-designer grand finalé as recently as March 2015.

Some say it might have to do with the fact that Amazon India's contract with the
Fashion Design Council of India (FDCI), the non-profit apex body behind India
Fashion Week, ended seven months ago. Sunil Sethi, president of FDCI, told mid-
day, "Amazon India's three-year contract has ended. They are continuing to lend their
name to the event, but in a way they deem best. So, if they decide to do away with the
grand finalé format, it's their call. We can't be taking it for them." The Amazon India
spokesperson declined to comment on the contract.

KEY COMPETITORS

Several Multinational Companies such as

REVLON- Revlon is one of the world's largest and best-known cosmetic companies. The
company's core products include its drugstore line of makeup, specialty skin care products
and salon-quality hair and beauty lines. The company is publicly traded and is based in New
York City. Revlon's goal has always been to provide quality beauty products at an
affordable price.
YARDLEY - It is a heritage we are proud of, which helps to define and inspire the
way we operate today. Yardley’s story is uplifting and compelling, sets us apart, and

21
is the perfect foundation on which to consolidate our business. Contemporary
products such as refreshing body sprays, body lotions, roll-on’s and hair creams have
joined more traditional essentials such as talcum powders and soaps.

GARNIER -Second largest brand of the L’Oréal Group, Garnier is an international

haircare and skincare brand with sub-brands in four categories and seven areas of
expertise – among which Ultra DOUX, Fructis, SkinActive, Ambre Solaire, Nutrisse
or Olia. With products formulated to meet the needs of every man and woman,
everywhere in the world, we offer innovative, affordable care solutions at the best prices.
LO’REAL entered in the market. These companies initially cashed on their
international brand.

 Revlon, Ponds and Avon with the major part of the rest.

 Other international brand in the sector include L’Oreal, some of them

engaged in the level if marketing model for their products.

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 PESTLE ANALYSIS

All external environment factors consider in PESTLE analysis the factors

are Political, Economical, Socio Cultural, Technological, and Legal. Each factor is
more or less affecting cosmetic industry.
Every industry has to consider these factors because these factors create opportunity
or threat at period of time.

1. POLITICAL FACTORS

Tax policy:

 Reduction in excise duty on cosmetics containing therapeutic ingredients from 70%

to 15%.

 There could be some savings on excise paid on raw materials, which would result in
overall cost efficiencies and savings for many companies.

 The Indian duty structure on imported products can pose a major deterrent to
multinational vendors.

2. ECONOMIC FACTORS

Disposable income

 India has the world’s second largest population behind China, and is poised to see
strong growth in disposable incomes over the next five years.

3. SOCIAL FACTORS

Income distribution
 Higher paying jobs and increasing awareness of the Western world and beauty trends
there have served to change the tastes and customs of the middle class and higher
strata of the society, with the result that a woman from such social strata now is more
conscious of her appearance and is willing to spend extra cash on enhancing it
further Lifestyle change.

 The increasing market size is the direct result of the changing socio-economic status
of the Indian consumers, especially women.

4. TECHNOLOGICAL FACTORS

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 Nanotechnology and Cosmetics
 In addition to improving the efficacy of cosmetics and skin care products,
nanotechnology is making it possible for other ingredients to be used in the
manufacturing of beauty products. Sunscreens and some anti-aging products are the
main cosmetic products on the market currently being made using nanotechnology.
 However, because of the relative newness of the technology in terms of cosmetics
manufacturing there is still concern as to how safe nanotech cosmetics are and their
long-term effect.

5. ENVIRONMENTAL FACTORS

 Environmental protection is one of the most important issues nowadays, especially in

chemical, pharmaceutical industry.
 Though chemicals used in cosmetics are less harmful for skin, waste disposal is an
important issue.

6. LEGAL FACTORS
At present the following Acts and Rules made there under that govern the
manufacture, sale, import, export and clinical research of drugs and cosmetics in
India.
 The Drugs and Cosmetics Act, 1940
 The Pharmacy Act, 1948
 The Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954
 The Narcotic Drugs and Psychotropic Substances Act, 1985
 The Medicinal and Toilet Preparations (Excise Duties) Act, 1956The Drugs (Prices
Control) Order 1995 (under the Essential Commodities Act.

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 PORTER’S FIVE FORCES ANALYSIS

The Porter Five forces were developed by Porter and they analyse internal and
external factors which affect the competitiveness of a product or industry. They
include the threat of substitutes, threat of new entry, bargaining power of customers
and suppliers as well as intensity of rivalry in the industry (Porter, 2008: 3-7). These
factors will be identified and applied to the cosmetic industry.

Threat of new entry

This factor analyzes the ease with which firms may enter into an industry.
Competitive industries are likely to attract many firms which will strive to capture a
market share (Aaker, 2001: 23). This is likely to reduce the overall profitability of
firms which are present in the industry. In order for firms to enjoy long term
profitability, they should develop customer loyalty within their industry. This will
ensure that although new firms enter an industry, their market share is unaffected
since customers have faith on their products. Development of customer loyalty is
achieved through innovating new products which meet the unique market needs.

The cosmetic industry has a low threat of new entrants. This is due to several factors.
The first is the huge costs of entry. Developing unique cosmetic products requires a
lot of resources both in terms of research and development and the actual
manufacturing process. Few middle and small scale firms have access to the funds
and expertise required to perform this effectively. Another factor which discourages
entry into this industry is the huge competition present in the industry. In addition to
the huge competitors such as Avon, Revlon, Clinique, Estee Lauder, LR, Mac and
Unilever, who have a large market share, there are many other small scale competitors
who also have a small market share and who reduce the overall profitability of firms
in the industry.

25
Bargaining power of customers

The bargaining power of customers analyzes the power which consumers have
relating to price changes in the industry. This factor analyzes the power which
consumers have in manipulating price changes due to shifts in demand (Aaker, 2000:
102-120). When consumers have a high bargaining power, the manufacturers and
sellers may not adequately predict future demand by the market. This may make them
unable to achieve long term profitability due to unpredictable demand patterns.

The cosmetic has a high bargaining power of customers. This is due to the increase
competition and availability of cosmetic products from a variety of manufacturers.
Since these products have high substitutes, then it is possible for consumers to force
manufacturers to reduce their product prices through purchasing those of their
competitors. This is a challenge which manufacturers of cosmetic products face across
the world.

Bargaining power of suppliers

This factor analyzes the power which suppliers have regarding making price changes
for their products. Suppliers who have a high bargaining power are able to influence
price changes through using techniques such as market manipulation through
hoarding and restraining supply. Although some of these strategies are illegal in many
countries, suppliers usually apply them when they want to effect price changes (Diller
et. al., 2006: 33-36). The cosmetic industry has a low bargaining power of suppliers.

This is due to the high number of market players and large supply of diverse products
to the market. There are many cosmetic products which are developed by both large
and small scale manufacturers. Due to the huge supply, consumers have the power to
influence the market prices as opposed to the suppliers.

Threat of substitutes

The threat of substitutes arises when there are similar products developed by
competitors which satisfy the market needs. When consumers have access to
substitute products which can satisfy their market needs, then manufacturers and
suppliers lose their bargaining power. Consumers are able to purchase competitor's

26
products if they are not satisfied with product price or quality. In order for suppliers to
tackle the challenge of threat of substitutes, they have to innovate products which
meet the needs of their target market segments (Keller, 2003: 595-600).

In the cosmetic industry, there are many competitors as has been discussed. There is
therefore a high threat of substitute products. If manufacturers sell their products at
higher prices, or if the products are of low quality, then consumers are able to
purchase substitutes from the many competitors who are present in the market
environment (Gregory, 2003: 77). It is therefore essential for the market players in the
cosmetic to be innovative if they are to tackle the challenge of the threat of substitute.

Barriers to entry and exit

Barriers to entry and exit refer to the challenges firms face when entering or leaving
the industry respectively. It has been discussed that there are huge costs which are
associated with entry to the cosmetic industry. These costs include costs for
developing the products as well as research costs. These are some of the barriers to
entry in the cosmetic industry. In addition, there are many competitors who reduce the
overall profitability of the industry, which makes it a barrier to entry. Finally, the
many large scale cosmetic firms which enjoy economies of scale make it a barrier to
entry especially for middle and small scale firms.

Barriers to exit include the high development and research costs. Due to the high costs
associated with developing cosmetic products, it is difficult for firms to leave the
industry without achieving the costs for production. There are also many machines
and equipment used in developing cosmetic products and disposing these at a fair
market value is difficult hence making it an exit barrier.

27
 CHAPTER-3
MARKETING STRATEGY

Lakmé, which got its name from a late 19th century French Opera Lakmé by
Léo Delibes, which is the French word for Goddess Lakshmi, has been in the
business of sharing secrets of the mythical beauty of goddesses to Indian
women. And in its attempt to diffuse the message to the mass, the cosmetic
brand has used all kinds of marketing channels, including the now-popular
digital media, led by social media platforms. To keep the focus sharp, in this
article, we shall see how the brand has performed on social media leaving
discussions on the rest of the channels for elsewhere.

Audience Analysis of Lakmé

Owing to the brand building exercise by Lakmé, the sentiments expressed by

people (see second image), both male and female, is either positive or neutral.
There is almost no negative emotion flowing for the brand, but what is
surprising is the number of male followers of the brand. As is evident in the
following image, slightly over 40% of social media fans of the cosmetic brand

28
comprises of

29
The gender distribution of Lakmé’s fans could be a bit surprising, but not so its age
distribution. The closer a person is to his/her prime the likelier is his/her chance of
following the brand on social media- as you can see people between 21-30 make the
largest chunk of its social media followers.

PRODUCTS OF LAKME

Lakme Eyeconic Kajal

This has got to be the most popular Lakme product till date! Every makeup aficionado
must be aware of the ‘iconic’ kajal (excuse my pathetic pun), which pretty much tops
the must-buy list of most kajal addicts. Intense black colour in a single stroke,
waterproof, long lasting (though not 10 hours as Lakme claims), and easy on the

30
pocket, what more could a girl want? This is one kajal that should totally top every
girl’s makeup priority list. Price in India: ₹ 199

Lakme Eyeconic Curling Mascara

Yet another bestseller from the line! To be very honest, a girl’s best friend should be
this magic tube of mascara instead of diamonds! Okay, maybe I’m exaggerating a bit!
But on a serious note, long, lusciously curled lashes=Eyeconic Mascara. With an
intense yet amazingly light wear formula, a curling brush that gives you perfectly
curled lashes every time, and a price tag which doesn’t break the bank, there is
absolutely no reason not to love the Eyeconic Curling Mascara. Price in India: ₹ 250

31
Lakme Complexion Care Cream

This brand scores not only in makeup, but in skincare as well! Lakme brought about a
revolution in the Indian beauty market by launching the first ever CC Cream, which is
a unique blend of moisturizer and foundation. Till date, this CC Cream happens to be
the only drugstore CC cream in the market, which is pretty much a major reason why
it’s in this list. Besides being a lifesaver for people like me, who can’t decide on
whether to cake up the face with a layer of heavy foundation, or go to the party
looking like a maid, this tinted moisturizer is perfect as an option between moisturizer
and foundation. This. Is. The. Makeup. Product. I. Have. Been. Looking. For. All.
My. Life.

Hahaha… Seriously speaking, this stuff is too good! It acts as a moisturizer, evens out
the complexion, gives a decent amount of coverage for an everyday look, covers up
minor blemishes and basically makes my life better when it comes to doing my face
for college everyday! And not surprisingly, it’s affordable too! Price in India: ₹ 250
for 300 ml

32
Lakme Perfect Radiance Intense Whitening Compact

Pretty much my favourite compact, for not only does it provide an excellent coverage,
but also does not make my face look cakey and dried out after application. Lakme,
I’m falling in love with you more and more with every passing day! This compact is
the shizz! It brightens, whitens and evens out my skin to a flawless finish, has that
perfectly dewy finish, does not clog pores, and is perfect in every sense. The best
part? It’s available in six whopping shades. Price in India: ₹ 19

Lakme Enrich Satin Lipstick Range

Whenever someone mentions lipsticks, the first image that comes to my mind is
the Enrich Satin line of lipsticks that it has in its booty for the longest time. Many a
fond memories are associated with these dainty little tubes of colour- lipsticks which I

33
used to steal from Mummy’s purse and apply all over my face as a five-year-old,
lipsticks which I used to sneak in from my older sister’s bag when I was twelve and
still wasn’t allowed to wear makeup, and yes, the first ever lipstick that my best friend
gifted to me when I was fifteen. Nostalgia, yes, but there is no denial that the Enrich
Satin range continues to rule the makeup shelves all over the country. In spite of being
the oldest range of lipstick from Lakme, it remains one of the best as well.

Where do I even start?! These lakme lipsticks are multiplying by the day! What
originally started out with 15 shades(that’s what my fashion-forward Sis told me),
now has a whopping 40 shades, covering every hue of pink, red, brown, nude, plum
and even coral! With the creamiest formula that I’ve ever used, they go on to a
beautiful colour on the lips in two-three strokes, with a semi-matt finish that’s super-
perfect and super-versatile! Plus points for changing the icky purple cover though, the
tubes are now in a sexy transparent style. The bestest best part? The revamped Enrich
Satins have olive oil and Vitamin E, which keeps the lips hydrated and plump for a
perfect pout! Price in India: ₹ 225

Lakme Fast and Fabulous Nail Paint

I started drooling over these sexy bottles ever since they were launched, and I’m
drooling still, even though Over got practically all of them! This line of revolutionary

34
nail paint from the house of Lakme are just one word: F-A-B-U-L-O-U-S. Unique
bottles, unique formula, unique brush, everything about the Fast and Fabulous range
is as awesome as it is unique!

Lakme was the first of the lot to understand the perils of us girls-the only time we’re
not invincible was when our nail polish was drying! And hence, born was the Fast and
Fabulous range, with a quick drying formula that took only 40 seconds to dry and a
unique flat brush for single stroke application. And gone are the perils of smudged
nail paints, hurried and gloppy coats, and tears of frustration! Oh, and did I mention
that Lakme has covered every colour under the sun with this range? And the colours
are just Ah-mahzzz-innnggg! Price in India: ₹200

Lakme Absolute White Intense Skin Cover Foundation

Probably one of the best foundations in market, this product from the Absolute line of
Lakme is pretty much everything that you need in a foundation. It’s PERFECT!
Water-based, so it doesn’t feel like you’ve got a ton of makeup on your face. Oil-free,
yaaay for all of the oily-skinned peeps, including me! Vitamin B3, which boosts
collagen production in the skin. SPF 25, sunscreen as well! Medium coverage, perfect
for day-to-day use, and pretty long lasting as well!

35
As I said, it’s nearly perfect. However, it comes in 3 shades- Golden Medium, Beige
Honey and Ivory Fair, so even though there’s something for everybody, I guess a
wider palette of shades might have been better for absolute perfection. Price in India:
₹650 for 15 ml.

Lakme Absolute Bi-Phased MakeUp Remover

It is pretty much a wonder how Lakme churns out perfect products one after the other!
Even in this makeup remover, the creative streak of Lakme experts can be seen, with
this awesome product that’s sure to give your face wash a run for its money.
Previously, when I was laziness personified, what I’d do after coming back from a
party would be to somehow get out of those heavy dresses, splash some water
carelessly onto my face and drop off to sleep. Needless to say, next morning, my
already oily, sensitive, breakout-prone face would be nearly invisible from the all the
pimples that would have had broken out due to the built-up of old makeup. Once I
entered college though, my roomie ensured that I somehow wipe off aaaaallll the
makeup residue, and that’s when I was introduced to this magic potion that Lakme
calls its Bi-Phased Makeup Remover. And let me tell you, Do. Not. Ever. Use.
Anything. Else. For. Removing. Your. Makeup.

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This beauty of a makeup remover combines the cleansing properties of oil with the
refreshing properties of water to give you the best makeup removal experience ever!
All through my life, I used to think that oil and water do not merge, but trust Lakmé to
go ahead and do the undoable! The oil phase of the Bi-Phased remover wipes away
any trace of makeup, whilst the light water phase ensures a refreshing and hydrating
experience. Though suited to all skin types, I feel that it is apt for sensitive skin, for
besides being surprisingly light, it is dermatologically tested too, ensuring no
breakouts as well as removing all traces of the most stubborn makeup. Price in India:
₹200

Lakme Peach Milk Moisturizer

Not that there aren’t better moisturizers in the market, but the beautiful fragrance of
this one is one major reason why I keep using it! Besides, it’s delightfully light, and
since I shudder at the mere thought of applying those heavy, oily lotions, the Peach
Milk Moisturizer is perfect for me. This is one product you must have in your kitty for
those harsh winter days! This light-weight moisturizer is perfect for any skin type.  It
gets absorbed very fast and has a sweet fragrance that lingers all day, keeping you
refreshed throughout. Soft and supple skin is what you get when you use this! Price in
India: ₹55 for 60 gms

37
Lakme 9to5 Eye Colour Quartet

I nearly screamed when I was checking my list for a preview and found out that I had
missed out on these lovelies! I’m incomplete without my eye makeup, and not
including the best of the lot from Lakme would be a crime on my part. It’s intense,
it’s affordable, it’s versatile, it’s got a super long staying power, it’s got a creaseless,
smooth formula and it’s awesome! This one certainly deserves a try by every girl who
loves her eye makeup!

Available in 5 quartets, namely Silk Route, which has mainly plums and grays, Moon
Dust which is black, white, gray and brown, Peacock with blues, greens and browns,
Tanjore Rush having bright purples, greens and golds and Desert Rose in soft mauves,
roses and neutrals. My only complaint is that they don’t have more shades! Price in
India:

So there you are, with your list of must-have, must-buy Lakme products in India.
When you’ve got products from India’s most trusted beauty brand to choose from,
know that you’re in heaven! And yes, Lakme die-hards, you’re welcome!

38
 4 PS

Marketing Mix of Lakme – Lakme Marketing Mix

By Hitesh Bhasin January 4, 2018 inTagged With: Marketing mix articles
Lakme is associated with FMCG industry and deals in personal care products. It is a
cosmeticbrand of Indian origin founded in the year 1952 by its founder J.R. D. Tata.
Lakme was a subsidiary of its parent company Tomco but in the year 1996,
its ownership changed hands and currently it is owned by Hindustan Unilever. Lakme
occupies the first position as leading brand for cosmetics in India and faces fierce
completion from both Indian and international brands like the following-

 L’Oreal
 Garnier
 Yardley
 Revlon
 Avon
 Oriflame

Product

Lakme occupies a major share in the domestic market with its vast range of products
and related services. It has nearly three hundred items to its credit that are used by
professional hair salons as well as individuals both in the domestic and international
market. Product portfolio of Lakme includes items for face- It includes items like
illuminators, blush, compact, concealer, bronzer, contour, sunscreen, serums,
moisturisers, scrubs, face wash, foundation and face primer. Some of them are

 Lakme Radiance Complexion Compact

 Lakme Absolute Blur Perfect Makeup Primer
 Lakme Absolute White Intense Concealer Stick

Eyes- Includes eyeliner, mascara, kajal, eye shadow, eye primer and eyebrow
enhancers. Some of them are

39
  Lakme Absolute Illuminating Eye Shadow
 Lakme Absolute Kohl Ultimate Kajal Black
 Lakme Eyeconic curling Mascara- black

Lips- It includes items like lipstick, lip gloss, lip liner and lip balm. Some of them are

 Lakme Absolute Illuminating Lip Liner

 Lakme 9 to 5 Crease-less Crème Lipstick
 Lakme Absolute |Gloss Stylist Lip Gloss

Nails- It includes Nail paints in several colour shades and remover for its removal.
Some of the products are

 Lakme absolute Gel stylist Nail Polish

 Lakme True Wear Nail Color
 Lakme 9 to 5 Frosties Nail Enamel
 Lakme Nail Color Remover with Vitamin E

Tools and Brushes- Includes lip brush, blush brush, eye brush sets and face brush

Make-up kit- Includes eye palettes, face palettes, customised palettes and combo sets

Place extended

Lakme was the first brand in India dealing with cosmetics on such a large scale and its
footprint has towards every nook and corner of the country. It has a vast

40
distribution channel that includes services of nearly twelve hundred sales outlets with
beauty advisors. It has also set up one hundred and ten beauty salons in India. Its
products are easily available to customers through services of distributors, stockiest
and retailers. Besides its outlet’s products are available at hypermarkets,
supermarkets, convenience stores, discount stores, and beauty shops. Lakme has not
curtailed its products to Indian market instead its products are easily obtained in
nearly seventy global countries.

Price

India is a price sensitive nation with most people thinking twice before spending their
money. Lakme is a cosmetic brand that caters mostly to the female population. The
company was quite sure of its approach towards pricing strategy. It wanted to garner
as many customers as possible by penetrating both urban and rural market. Therefore
it has adopted a reasonable pricing policy because it wants its products to reach
masses. It realises that affordable and pocket-friendly rates will result in large
volumes and eventually will lead to better profits.

Promotion

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Lakme has adopted an aggressive marketing plan to promote its products to every
nook and corner. Its ad campaigns are advertised through television, radio,
newspapers, fashion magazines, billboards and social media platforms
like Twitter, Facebook, Blogs and YouTube. It believes in star power and its impact
on common masses and has roped in several personalities’ time and again as its brand
ambassadors and to act in its ad campaigns. Indian film star Shraddha Kapoor,
Kareena Kapoor and Katrina Kaif along with popular model Lisa Haydon have acted
in its commercials. It is the title sponsor of bi-annually held fashion week titled
Lakme Fashion Week. The company has set up Lakme Beauty Training Academy in
Chennai, Delhi and Mumbai to assist interested people.

STP {segmentation target promotion}

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 organizing 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

42
marketers are looking for are measurability, accessibility, and 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
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 behaviors 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

43
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
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.

44
 DISTRIBUTION CHANNEL

Lakmé started by Tata now owned by Hindustan Unilever (HUL) is handled by

the Consumer Products Division of Hindustan Lakmé Lever. Lakmé brands under this
division are targeted towards mass consumption and are hence distributed through
mass-market channels (hypermarkets, supermarkets, drugstores and traditional stores).
Early on, Lakmé made the decision to integrate its production facility. Established
around the world, its 45 factories produce 87% of the units of cosmetic products sold.

45
 How the Lakmé distribution model works:

 Steers pan India production and product distribution.

 It unites 7 lines of business − purchasing, packaging, production, quality,
logistics, environment, hygiene and safety.
 Operations division India the whole production chain, from purchasing raw
materials to product delivery.
 The industrial tool is spread out over five major geographical zones so as
become more responsive and adapt to the specifics of local markets.
 The group also bases its industrial success on its exacting criteria in the
selection of suppliers with whom it creates long-term partnerships and joint ventures
for innovation.

Types of Distribution Channel for Lakmé: KAJAL

Marketing Distribution channels are set of interdependent organizations involved in

the process of making the product or service available for use or consumption. For
Lakmé kajals the set of Pathways followed post production. A mix of all three
distribution channels are followed depending upon the demographics and
psychographics.

Lakmé being the manufacturer produces the kohl with the help of raw materials and
other resources. Post production either it directly reaches the consumer through
Lakmé salons as they retail products for Lakmé (0 level channel).

46
 Else they resort to retailers like the Sephora stores and other vanity stores to sell in
Lakmé eyeconic kohl through these retailers referred to as level one distribution.

In second level distribution channel Lakmé post manufacturing the eyeconic kajal
resorts to wholesalers, these wholesalers further move to retailers like local beauty
stores, salons etc. in turn reaching consumers.

In Third level distribution if a consumer orders a Lakmé Eyeconic kajal through

online purchasing, which goes to wholesalers, to a jobber who transports  in turn
packs it and moves it to the demographic warehouse from there its picked by up by
another jobber or retailer who delivers the product at the customer's base.

PROMOTION STRATEGIES

A. Advertising

It is a form of marketing communication used to persuade an audience to take or

continue some action, usually with respect to a commercial offering, or political or
ideological support.

B. Personal Selling

It is face-to-face selling in which a seller attempts to persuade a buyer to make

a purchase.

C. Publicity

It is the movement of information with the effect of increasing public awareness of a

subject. The subjects of publicity include people (for example, politicians and
performing artists), goods and services, organizations of all kinds, and works of art or
entertainment.

D. Sales Promotion

E. Sales promotions are the set of marketing activities undertaken to boost

sales of the product or service.

47
48
 CHAPTER-4
FINANCIAL ANALYSIS

SOURCES OF FINANCE

Bharatiya Mahila Bank on Tuesday inked

an agreement with HUL arm Lakme Salons to
bring easy financing options to fuel women
entrepreneurship.

Bharatiya Mahila Bank Chairman and Managing Director Usha

Ananthasubramanian said this is the third such tie-up with companies after similar
agreements with Chennai-based Kavin Care and Naturals, under which it has already
funded 30 salons.

This partnership would help encourage more women to become Lakme Salon's
business partners. Women have a natural inclination towards beauty and they
naturally excel in such sectors. The bank understands that most of the women do not
own property and this should not become an obstacle for them to start their own
enterprise and become financially independent, Ananthasubramanian said explaining
the rationale for the tie-up.

She further said that typically the bank funds up to 70 per cent of the project, which is
covered under the CGTMSE (Credit Guarantee Fund Trust for Micro and Small
Enterprises).

She said Mahila Bank has opened the 40th branch today and will close the fiscal with
40 more.

49
 The loan book of the bank currently stands at Rs 400 crore and has plans to close the
fiscal with Rs 800 crore and deposit books to Rs 1,000 crore from the present Rs 600
crore.

Capital Structure - Hindustan Unilever Ltd.

Authorized Issued
Period Instrument Capital Capital -PAIDUP-

Face Capital (Rs.

From To   (Rs. cr) (Rs. cr) Shares (nos) Value Cr)

2016 2017 Equity Share 225.0 216.4 2164349639 1.0 216.4

2015 2016 Equity Share 225.0 216.4 2163936971 1.0 216.4

2014 2015 Equity Share 225.0 216.3 2163464851 1.0 216.3

2013 2014 Equity Share 225.0 216.3 2162696292 1.0 216.3

2012 2013 Equity Share 225.0 216.2 2162472310 1.0 216.2

2011 2012 Equity Share 225.0 216.2 2161512492 1.0 216.2

RATIO ANALYSIS

Management Effectiveness  
50
 Management Effectiveness: TTM vs 5 Year Average Margins
TTM (%)
 
5 Year Avg. (%)
Return on Equity Return on Assets Return on Investment0%1%2%3%4%
Return on Equity TTM - 4%
Return on Equity 5YA 3.08% 5.64%
Return on Assets TTM - 2.77%
Return on Assets 5YA 1.81% 2.63%
Return on Investment TTM - 5.05%
Return on Investment 5YA 2.39% 4.63%
Growth  
EPS(MRQ) vs Qtr. 1 Yr. Ago 168.59% 122.9%
EPS(TTM) vs TTM 1 Yr. Ago - 55.07%
5 Year EPS Growth - 39.87%
Sales (MRQ) vs Qtr. 1 Yr. Ago 24.1% 160.36%
Sales (TTM) vs TTM 1 Yr. Ago - 114.13%
5 Year Sales Growth -0.15% 18.05%
5 Year Capital Spending Growth -15.41% 7.36%

Financial Strength  
Quick Ratio MRQ - 1.94
Current Ratio MRQ - 3.02
LT Debt to Equity MRQ - 1.53%
Total Debt to Equity MRQ - 15.76%

Efficiency  
Asset Turnover TTM - 1.76
Inventory Turnover TTM - 3.22
Revenue/Employee TTM 206.36K 7.07M
Net Income/Employee TTM 21.69K -114.89K
Receivable Turnover TTM - 142.05

Dividend  
Dividend Yield 0.29% 0.57%

51
Dividend Yield 5 Year Avg. 0.52% 0.65%
Dividend Growth Rate 12.62% 6.02%
Payout Ratio 47.22 37.43

BALANCE SHEET

52
53
54
 CHAPTER -5
KEY LEARNING’S FROM THE COMPANY AND
RECOMMENDATIONS

PERFORMANCE ANALYSIS OF COMPANY

Performance analysis involves gathering formal and informal data to help customers
and sponsors to define and achieve their goals. Performance analysis uncovers several
perspectives on a problem or opportunity, determining all drivers towards or barriers
to successful performance, and proposing a solution system based on what is
discovered.

55
 ORGANIZATIONAL LEADERSHIP

Managers are necessary; leaders are essential. Leadership is of the Spirit,

compounded of personality and vision. Management is of the mind, more a matter of
accurate calculation, statistics, methods, timetables, and routine.

Board of Directors

The Board of Directors of the Company represents an optimum mix of

professionalism, knowledge and experience. The total strength of the Board of
Directors of the Company is nine Directors, comprising Non-Executive Chairman,
three Executive Directors and five Non-Executive Independent Directors.

Management Committee

The day-to-day management of affairs of the Company is vested with the

Management Committee which is subjected to the overall superintendence and control
of the Board.

56
 Organizational
Leadership
1 Leadership
2 Strategic Planning
‘leadership triad’
3 Customer and Market Focus
4 Measurement, Analysis, and
Knowledge Management
5 Workforce Focus
6 Process Management
‘results triad’
7 Results

Establishing a Quality Culture

 ‘GETTING THEM TO LISTEN’
And eventually…
 ‘GETTING THEM TO CHANGE’
 Different Leadership Styles
 Directing
 Consultative
 Delegating
 Participative

57
MARKET SHARE/GROWTH RATE OF COMPANY

58
 SWOT ANALYSIS

Lakme is one of the leading cosmetics brand across the world from the house
of Hindustan unilever. Interestingly, Lakme was named after the French opera, and
Lakme is another form of the Goddess Lakshmi, most commonly known for blessings
of wealth. Lakme is a heritage brand at least in India, and it was started in 1952.

Strengths 

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

beauty industry. High visibility through targeting high end beauty parlors/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

59
 known to launch a variety of cosmetics which are innovative and are known to
sole 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.

Weaknesses

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

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 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

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.
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.

CHAPTER- 6
61
 FINDINGS
 lakme is the clear market leader across all ages groups and income
levels.
 Majority of the respondents i.e 60 respondents out of total 100
respondents are using lakme products. With loreal in the second
number having 20 regular customers of it. 15 respondents are using
Maybelline and only 5 are using lotus lipsticks. The shows that lakme
has more number of women using it.
 The dissertation shows that maximum number of the respondents is
using lipstick and kohl kajal more than any other makeup products.
 58 respondents trust their cosmetics when it comes to healthy make
up.20 respondents do not find their cosmetics to be healthy in the sense
that the brand uses more of chemicals in its composition.
 35 respondents use their cosmetics products because they are
economical in nature, while a major portion of the bulk buys the
products of a brand because they show measurable results.
 68 respondents spend below Rs.500 on their cosmetics. However there
are many people i.e 14 who spend Rs.1000-Rs.2000 in cosmetics.
 Lakme 9-5 lip colour is the most popular lipstick and mostly used by
the office goers. Followed by lakme lip love care which is very handy
among the teenagers.
 58 of the respondents have good knowledge about lakme as a brand.
 48 respondents are satisfied with the services provided by lakme.
 53 respondents are satisfied with the lipstick product of lakme.

CHAPTER-7

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 CONCLUSION AND SUGGESTION

CONCLUSION
Lakmé has done a nice job on social media. It has registered a powerful
presence on the platforms on which it is available. But I think it can do better
if it streamlines its content and add some punch to its text, which is lacking.

Lakme has managed to engage its primary target audience: girls and women,
through various activities that seem to catch their fancy. It is surprising and
pleasant to see that the brand has as many male fans and followers as their
female counterparts, but they don’t seem to be interacting much with them.
While the content shared by the brand is catchy, the tonality can be improved.
A lively communication will definitely improve their engagement and help
them connect better with their audience. Also, it can be observed that most of
the engagement is in the form of mere likes. Lakme should think ofa content
plan which leads to an engagement beyond mere likes. The brand needs to be
more conversational and publish updates that are share-able.

SUGGESTIONS

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 The company must launch affordable cosmetic products. So that it will attract
more of young women.
 Lakme should also launch some cosmetic products for males. Today, boys are
even more concerned about their books.
 Lakme should reduce the price of the services provided by the lakme saloon,
to make it more affordable for everyone.
 Lakme can start contests for the makeover of women it will give a good
publicity.
 Lakme should give their product’s advertisement in collaboration with some
hit movies.
 Lakme should advertise in fashion website like vogue.com and
feminaindia.com.
 Understanding the customer better will allow lakme to design appropriate
products, determine pricing correctly and increase profitability.

BIBLIOGRAPHY

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Books:

 PHILIP KOTLER, MARKETING MANAGEMENT, EDITION 2005.

 V.S RAMASWAMY AND S. NAMAKUMARI MARKETING

MANAGEMENT, SECOND EDITION.

Magazines
 Business India

 India Today

 Business Today
Newspapers
 The Times of India

 The Hindustan Times

 The Economic Times

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