INTRODUCTION

BRIEF OVERVIEW OF STUDY

This report is on the company Lakme. It is the global leader in cosmetics, with 25 brands.

They have 4 key areas of expertise − hair care, skincare, make-up and fragrances. There is a huge

motive behind the study of Lakme. The study will help us to understand the operations which are

carried out by L’Oreal. The operations such as, business marketing strategies, business plans

of company at a glance, business structure, management and operating structures, competitors

position as per this company, business development, discussion of business strategies, SWOT

analysis to understand the different pros and cons of the company, so as to report properly to

operate effectively and deal smartly. This study offers a comprehensive analysis of the

organization, its business segments, and competitors. It analyzes the business and marketing

strategies adopted by the company, to gain a competitive edge in the industry. The profile also

evaluates the strengths of the company and the opportunities present in the market. This study

presents the key facts & figures, business description, products & services offered and corporate

timeline of the company. It involves analysis of the company at three levels – segments,

organizational structure and ownership composition. Both business and geographic segments are

analyzed along with their recent financial performance. It further discusses the major subsidiaries

of the company and the recent merger & acquisitions. It also examines the significant

developments and milestone that have taken place in the company. It is a form of news analysis

where the most critical company news is discussed. Also the factor Financial Performance

included in this study. It discusses the most recent financials of the company and also compares

the historical sales & income figures with the current and projected figures. The objective is to

evaluate the financial health of the company. The analyst opinion and stock performance help

anyone in evaluating the performance of the company from an investor’s viewpoint.

OBJECTIVES:

• The main objective behind the study of this project is to evaluate the distribution channel

for Lakme Company.

• To study the marketing strategies of Lakme cosmetics.

• To study the 4ps of marketing.

• To study Lakme market shares in cosmetic industry in comparison to other brands.

• To analyze the reason for Lakme’s initial strategy in India.

• To know and analyze the level of satisfaction of customers with regard to Lakme as one

of the major players in Cosmetic industry

To understand the relationship between customers (who demand the product) and the

suppliers or manufacturers (who produce the product).

For understanding the company’s structure and functioning among various departments

like finance, accounts, HR, etc better.

SCOPE OF THE STUDY:

This study uncovers the impact, utility and effectiveness & efficiency of marketing

strategies of Lakme on the success of cosmetic industry. A special emphasis is laid down on

Lakme cosmetics.

The project begins with detailed information about marketing strategies and the impact of

measuring customer satisfaction in cosmetic industry. Further, it covers topics as data collection

tools and research methodology used for the project. Then it gives a complete analysis of the

data collected and it is then used to reach to a conclusion. The study took nearly a week to

complete. The study is useful for the better understanding of marketing strategies towards the

Lakme cosmetic industry.

As this study is confined to Lakme, it covers an analysis of consumer behavior, attitude,

perceptions, marketing strategies and satisfaction with respect to Lakme as a BRAND in

cosmetic industry.

The study takes into account the customers of Lakme in Mumbai

LIMITATIONS:

Geographical scope of the study was limited to a small area, which may not represent the

whole sector of India. Size of the sample is 100, which is, of course small in comparison to

entire population.

Due to limitation of time only few people were selected for the study. So the sample of

consumer was not enough to generalize the finding of the study.

There can be many interpretations and explanation to the data collected. This is empirical

study and the research and the research provides the explanation as understood by the

researcher only.

The source of data for the study was primary and secondary data with the help of self-

administered questionnaire and research on internet. Hence, the chances of unbiased

information are less.

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The Research

Methodology includes the various methods and techniques for conducting a Research.

“Marketing Research is the systematic design, collection, analysis and reporting of data and

finding relevant solution to a specific marketing situation or problem”. D. Slesinger and M.

Stephenson in the encyclopedia of Social Sciences define Research as “the manipulation of

things, concepts or symbols for the purpose of generalizing to extend, correct or verify

knowledge, whether that knowledge aids in construction of theory or in the practice of an art”.

Research is, thus, an original contribution to the existing stock of knowledge making for its

advancement. The purpose of Research is to discover answers to the Questions through the

application of scientific procedures. Our project has a specified framework for collecting data in

an effective manner. Such framework is called “Research Design”. The research process

followed by us consists of following steps:

4.1 Research Design:-

4.1.1 Conclusion Oriented Research: - The research was conclusion oriented because this

research aimed at identifying the characteristics of a successful entrepreneur. In other

words it is a research when we give our own views about the research.

4.1.2 Descriptive Research: - The research was a descriptive research as it was concerned with

specific predictions, with narration of facts and characteristics concerning individuals

specially entrepreneurs. In other words descriptive research is a research where in

researcher has no control over variable. He just presents the picture which has already

studied.

4.2 Sample Design: - A sampling design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher adopts in selecting

items for the sample. The following factors need to be decided within the scope of sample

design:

4.2.1 Universe of the Study: - The universe of the study included respondents specially

entrepreneurs in gurgaon city.

4.2.2 Sample Size: - Sample size is the number of elements to be included in a study.

Keeping in mind all the constraints 100 respondents was selected..

4.2.3 Sampling Techniques: - The sampling techniques used are convenience sampling

technique and simple random sampling technique.

UNIVERSE

All items in any field of enquiry constitute a ‘Universe’ or ‘Population’. A complete

enumeration of all items in the population is known as a census enquiry.

SAMPLE SIZE AND SAMPLING TECHNIQUE

The number of items selected from the universe to represent the universe is called size of the

sample. The sample size of 100 served the purpose of the study. The sampling method used is

non-probability convenience sampling.

DATA COLLECTION METHOD

The task of data collection begins after a research problem has been defined and research

design plan checked out. While deciding about the method of collection of data to be used for the

study two types of data should be kept in mind vie, primary and secondary. For the study, both

primary data and secondary data were collected.

For primary data, this is those, which are collected afresh and for the first Time, and thus

happen to be original in character. There are many ways of data collection of primary data like

observation method, interview method, through schedules, pantry Reports, distributors audit,

consumer panel etc. The Team Managers and employees of both the Department were consulted

to get information about procedure of both the online and off line share trading. But the method

used by us for the primary data collection was through questionnaires.

For secondary data, these are those data, which are not collected afresh and are used earlier

also and thus they cannot be considered as original in character. There are

many ways of data collection of secondary data like publications of the state and central govern

ment, reports prepared byresearchers, reports of various associations connected with business,

Industries, banks etc. And the method, which was used by us, was with the help of reports of the

company.

The data has been presented by way of pie charts and graphs. These have been specifically

used to present the data collected from respondents through internet and questionnaire.

FINDINGS BASED ON QUESTIONNAIRE RESPONSES

Do you use cosmetic?

Women Use cosmetics Percentage (%)Yes 125No 25

When do you use cosmetics?

80%

20%

15%

35%

Women use cosmetics

At parties & occassionsAlwaysWhen I want toOutside home

125%

25%

Women Use cosmetics

yesno

Women use cosmetics PercentageAt parties & occasions 80%Always 20%When I want to 15%Outside home 35%

How much do you spend on cosmetics in a month?

Money spent in a month on cosmetic Percentage (%)Less than 200 50%Between 200-400 60%More than 400, less than 800 30%More than 800 10%

Are you a Lakme customer?

Lakme customer PercentageYes 100%No 30%

yes0%

20%

40%

60%

80%

100%

Lakme customer

Lakme customer

Less than 200

Between 200-400 More

than 400 , Less than 800

More than 800

0%50%

100%

Money spent on cosmetics in a month

Which of the following products of Lakme have you been using?

Are you satisfied with the Lakme products?

Satisfied with Lakme products Percentage (%)

Satisfied 50Very satisfied 85Neither satisfied nor dissatisfied 7Dissatisfied 5Very dissatisfied 3

0%30%60%90%

satisfied with lakme products

satisfied with lakme products

35%

10%25%

30%

Lakme Products used by women kajal shampoo mascara compact

Products using Percentage (%)Mascara 25Kajal 45Compact 50Shampoo 30

What were the reasons for you to choose Lakme products?

Reasons for choosing Lakme Percentage (%)Cheap price 07Brand name 43Quality 65Variety 27Advertisement 06Others 2

From which source did you get to know about Lakme products?

30%

50%

12%6% 2%

Sources to know about lakme products

Newspaper Television Direct Sales Executive Internet Others

Cheap pric

e

Brand nam

e

Quality

Variety

Advertisem

ent

Others0

10203040506070

Reasons for choosing lakme

Reasons for choosing lakme

Source to know about Lakme products Percentage (%)Newspaper 17%Television 69%Direct sale executive 34%Internet 22%Others 8%

Are you satisfied with the promotional offers of Lakme?

Satisfied with promotional offers Percentage (%)Yes 106No 25Can’t say 19

What improvements do you suggest to Lakme for its products?

Improvements Percentage (%)Reduction in price 75Easily available 33Improve promotional activities 27others 14

50%22%

18%

9%

Improvementsreduction in price easily available improve promotional activities others

YES71%

NO17%

Can't say13%

Satisfied with promotional offers

INDUSTRY OVERVIEW

PAST, PRESENT & FUTURE TRENDS IN MAKEUP

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

the appearance or odor of the human body. They are generally mixtures of chemical compounds,

some being derived from natural sources, many being synthetic.

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"

Archeological evidence of cosmetics dates at least from ancient Egypt and Greece.

According to one source, early major developments include:

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

Pushkaraj Shenai.

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. 

PRESENT & FUTURE TRENDS IN MAKEUP

Values in client’s 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 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 Rs. 5,000 to 7,000 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 factor of chemical

sunscreens is important because heat can exacerbate skin conditions, especially acne and hyper

pigmentation.

Clients are more ingredient-savvy than ever and are aware of which ingredients work. They

have raised their standards and now must have real results from their cosmetic products. They

expect a product to offer multiple benefits. The consumer is still spending money on cosmetic

products, but is looking for value; it is not so much about price as it is about value. If a product

delivers real results and can do double-duty, it will be successful. That is why authentic mineral

makeup formulas will still lead the cosmetic industry as a major force.

MAJOR PLAYERS & THEIR MARKET SHARE

REVLON

Revlon was founded in the midst of the Great Depression, 1932, by Charles Revson and his

brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the Revlon

name. Starting with a single product — a new type of nail enamel — the three founders pooled

their resources and developed a unique manufacturing process. Using pigments instead of dyes,

Revlon developed a variety of new shades of opaque nail enamel. In 1937, Revlon started selling

the polishes in department stores and drug stores. In six years, the company became a

multimillion dollar organization. By 1940, Revlon offered an entire manicure line, and

added lipstick to the collection. During World War II, Revlon created makeup and related

products for the U.S. Army, which was honored in 1944 with the Army-Navy "E" Award for

Excellence.

By the end of the war, Revlon was listed as one of America's top five cosmetic houses.

Expanding its capabilities, the company bought Graef & Schmidt, a cutlery manufacturer seized

by the government in 1943 because of German business ties. This acquisition made it possible

for Revlon to produce its own manicure and pedicure instruments, instead of buying them from

outside supply sources.

AVON

Avon Product is a multi-level marketing company. The company's CEO is Sherilyn S.

McCoy, who was appointed to that position in April 2012.The former CEO, Andrea Jung,

became the executive chairman of the board. Jung was the longest tenured female CEO among

Fortune 500 companies. Recently, Avon has struggled with the global sales falling for 5 straight

years and North American revenues falling 18% in 2014

Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of

men) and brochures to advertise its products.

In addition to its corporate pursuits, the Avon corporation is involved in philanthropic causes.

The Avon Foundation for Women, public charity, is the largest corporate-affiliated

philanthropy for women in the world. Avon founded the Avon Foundation for Women with its

first grant, a $400 scholarship, in 1955. Avon was committed to helping women achieve their

highest potential of economic opportunity and self-fulfillment by empowering them through

scholarships and support for other forms of educational and occupational training and

advancement. Women's empowerment continued to be the focus through the early 1990s when

Avon began to increase its philanthropy with a new emphasis on breast cancer; the Avon

Foundation still awards scholarships for Avon Sales Representatives and their families, as well

as for the children of Avon associates. The Avon Foundation is currently focused on two key

causes: breast cancer and domestic violence. The Foundation approved $38 million in grants in

2011. In 2012, Avon launched its first global fundraising scheme. The symbol of this fundraising

action is the Women's Empowerment Bracelet.

VLCC

The guiding image of VLCC is ‘Transforming Lives’, which refers to the transforming self,

transforming future and spreading happiness. These are the three pillars, which are VLCC’s

hallmarks which were established in 1989 by Mrs. Vandana Luthra. One of the above mentioned

hallmarks, the foundation has continued to grow as a leading beauty brand. VLCC, a re-defining

wellness business has revolutionized the beauty industry as well as acquired the position of

largest beauty brand and heath in India. VLCC today is the solitary mammoth competitor in the

industry with a Pan India presence of around 225 outlets in approximately 75 cities, 1 outlet in

Katmandu, Omen, Bahrain and 8 outlets in UAE.

The VLCC is a ‘Super brand’ serving as a sunshade for its other products such as VLCC

Health Care, Personal Care and Institute of Health, Management and Beauty. Its services offer

holistic wellness, traditional therapies and marrying a scientific research. Having served more

than millions of consumers since its beginning, VLCC, at present, has achieved a start status all

over the world. It is India’s most preferred and largest Slimming, Health and Beauty brand.

VLCC – Vision

To provide better quality life to everyone, by pursuing and adopting socially and ethically

significant business practices, which are aimed at shaping up the confidence of people and

making Beauty Care, Health and Fitness available to each and every section of the society.

MARKET SHARE 2012

BRAND MARKET SHARE (%)

LAKME 35.27REVLON 18.27LOREAL 30.34AVON 14.67VLCC 9.24ORIFLAME 7.03

Source: Business express

30.34

35.2714.67

9.24

7.03

20.45

MARKET SHARE

LOREALLAKMEAVONVLCCORIFLAMEREVLON

COMPANY PROFILE

The Lakme Group is the world's largest cosmetics and Beauty Company, owned

by Hindustan Unilever and run by CEO Pushkaraj Shenai. Lakme started as a 100% subsidiary

of Tata Oil Mills (Tomco), part of the Tata Group; it was named after the French opera Lakme,

which itself is the French form of Lakshmi, the goddess of wealth, also renowned for her beauty.

Indian cosmetic Lakme was started in 1952, famously because the then 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 its chairman. In 1996

Tata sold off their stakes in Lakme 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.

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. In 2014 Lakme' has been ranked as 36th 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.

Makeup 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.

• 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 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.

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.

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.

ORGANISATIONAL STRUCTURE

PRODUCTS AND SERVICES OFFERED:

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

women.

CATEGORIES

1. Lakme lipstick

2. Lakme eyeliner

3. Lakme kajal

4. Lakme strawberries face wash

5. Lakme radiant rose powder

6. Lakme nail enamel remover

7. Lakme shampoo

8. Lakme deep pore cleansing milk

Marketing Strategy for Customer Satisfaction:

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 will be started in February 2013.

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.

Distribution strategies:

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

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

By modifying the product by adding SPF, so that lips can be protected from harmful.

FUTURE PLANS:

The company plans to open 110 cosmetics shops outlets across the globe next year, the

share of Indian market to Lakme turnover of euro 15.8 billion small, but is growing.

With other emerging economies India’s contribution to global cosmetics amounts to 60%.

Lakme turns to cheap products to spur future growth.

Lakme is focusing on south market & is planning to open 10 stores in Chennai &

Hyderabad.

The company has drawn up a fresh strategy, including aggressive discounts & opening up

of new stores.

At present the company is operating 25 stores in 8 Indian cities under a franchise

agreement with retail major Future group.

THEORETICAL PERSPECTIVE

Marketing Mix refers to the ingredients or the tools or the variable which the marketer mixes

in order to interact with a particular market

“Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing

objectives in the target market”

Marketing mix is a term used to describe the combination o the four inputs which constitute

the core of a company’s marketing system: the product; the price structure; the promotional

activities, and the distribution system.

Marketing mix represents the total marketing programmed of a firm. It involves decisions

with regard to product, price, place and promotion. Marketing mix is a blending of decisions

in the ‘4 Ps’.

Four major ingredients of marketing mix are:

Product

A product is any good or service that consumers want. It is a bundle of utilities or a

cluster of tangible and intangible attributes. Product component of the marketing mix

involves planning, developing and producing the right type of products and services. It

deals with the dimensions of product line, durability and other qualities. Product policy of

a firm also deals with proper branding, right packaging, appropriate color and other

product features. The total product should be such that it really satisfies the needs of the

target market. In short, product mix requires decisions with regard to

Size and weight of the product.

Quality of the product.

Design of the product.

Volume of output.

Brand name.

Packaging.

Product range.

Price.

Price is an important factor affecting the success of a firm. Pricing decisions and

policies have a direct influence on sales volume and profits of business.

Price is, therefore, an important element in the marketing mix. In practice, it is very

difficult to fix the right price. Right price can be determined through pricing research and

test marketing.

Demand, cost, competition, govt. regulation, etc. are the vital factors that must be

taken into consideration in the determination of the price. Price mix involves decisions

regarding base price, discounts, allowances, fright payment, credit, etc.

Promotion.

Promotion component o the marketing mix is concerned with bringing products to the

knowledge of customers and persuading them to buy. It is the function of informing and

influencing the customer.

Promotion mix involves decisions with respect to advertising, personal selling and

sales promotion. All these techniques help to promote the sale of products and to fight the

competition in the market.

No single method of promotion is effective alone and, therefore, a promotional

campaign usually involves a combination of two or more promotional methods.

Growing competition and widening market have made simultaneous use of more

than one promotional method all the more necessary. Combination of two or more

methods in a single promotional campaign requires an effective blending of promotional

inputs so as to optimize the expenditure on each.

Place (Distribution)

This element of marketing mix involves a choice of the place where the products are to

be displayed and made available to the customers. It is concerned with decisions relating

to the wholesale and retail outlets or channels of distribution. The objective of selecting

and managing trade channels is to provide the products to the right customer at the right

time and place on a continuing basis. In deciding where and through whom to sell,

management should consider where the customer wants the goods to be available.

A manufacturer may distribute his goods through his own outlets or he may

employ wholesalers and retailers for this purpose. Irrespective of the channel used

management must continuously evaluate channel performance and make changes

whenever performance falls short of expected targets. In addition, management must

develop a physical distribution system for handling and transporting the products through

the selected channels. In the determination of distribution mix or marketing logistics, a

firm has to make decision with regard to the mode of transporting of goods to middle-

men, use of company vehicles or both.

FINDINGS & ANALYSIS

GENERAL FINDINGS:

Lakme is the global leader in cosmetics, with 25 global brands. It has five key areas of

expertise- hair care, skincare, make-up and fragrances. This company has over 63,358 employees

working currently. And it sells its products around in 130countries all over the world. Its

consolidated sales are recorded in over 17,063 in millionaires .The company manufacture well

above 4.7 billion units annually. It also has investments above 560 million euro s in R&D

investments.

On the analysis and interpretation of research conducted. It was found that certain findings

are very critical and are directly or indirectly affecting the Lakme products.

There is a good awareness of Lakme cosmetics products among the consumers.

The quality of Lakme is very satisfactory viewed by the majority of customers.

There is a neck to neck competition between L’Oreal, Oriflame, VLCC, Revlon etc

75% of the customers are fully satisfied with existing quality While 25% are partly satisfied.

Majority of women are using Lakme products.

Consumers prefer the Lakme products because it provides good quality, good results, good

services, etc and it all fulfills their needs.

CONCLUSION

The competition is fierce in the multi-channel retailing environment. A business that hopes to

grow and prosper requires a comprehensive logistics and transportation strategy, executed

flawlessly. The dilemma for management lies in trying to meet consumers’ growing expectations

while keeping costs in check. In response to these issues of multi-channel growth, more and

more carriers are branching out to offer logistics services.

Those businesses that work to build successful relationships with logistics and transportation

vendors will find that their efforts lead to improved customer service and profitability. It’s not an

easy task, but it is certainly one that’s achievable with the tools and technology available today.

Lakme has been found to be the most preferred brand it meet the promise made to the

customer. Consumer relies on the Lakme products because it provides good quality, good

results, good services, etc. So that customer may prefer Lakme products.

While conducting survey I found that the customer may like the showrooms of the Lakme

products. They still likes the easily availability of various products. So the Lakme products

customers are fully satisfied to use the products.

SUGGESTIONS

The supply must be properly fulfilled so the need of the customer satisfies.

Target selling for the dealer / agent can increase the sales of company.

The company must concern to the satisfaction of customer demand.

The company and dealer should develop its marketing information system up to date

information of competitor's policy, price and product, target market, so the company can

know its strengths and weaknesses.

Brand preference studies reveal that comparatively there is more preference for Lakme

among consumers so in order to attract and maintain his consumers. Advertising

programs should be intensified.

Perception of the consumer is changing rapidly. They seek new benefits and values in

their preferred brand. Moreover, consumer likes to have brand at low rate. So Lakme

should insert it so as to meet the changing preference of the consumer.

Lakme is the market leader in make-up products. Most of the consumers are brand loyal.

They should be treated as intangible assets. Lakme should ever strive to satisfy them.

Fulfill the consumer needs.

REFERENCES

www.google.com

"Make in India: 10 Indian brands at par with foreign brands". India Today. 20 February

2015. Retrieved 15 July 2015.

"Simone Tata". The Sunday Indian. Retrieved 15 July 2015.

"India's Most Trusted Brands 2014". Trust Research Advisory.

"Fashion business poised for dramatic growth: FDCI". Times of India. 2 August 2002.

Retrieved 1 April 2012.

www.economictimes.com

BIBLIOGRAPHY

Kotler Philip , Keller Lane Kevin marketing , prentice hall of India , 2005

S.P Gupta , Business Statistics, 14th edition , 2005

Business Statistics , J. K Sharma , edition 2005

Tata Mc graw-Hill Edtion , Business research methods , Donald R.Cooper , Pamela S.

Schindler.