INTRODUCTIONWithin a short span of the last five-six years, the use of cosmetics by Indian consumers has increased significantly with more and more women and men taking greater interest in personal grooming, increasing disposable incomes, changing life styles, influence of satellite television and greater product choice and availability. With the demand for cosmetics on the rise and the opening up of the market to foreign companies, many of the world’s popular cosmetics brands entered the Indian market in the early and mid-nineties and some more have set their sights on India. This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. The growing Indian cosmetics market offers promising prospects for international brands. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. Perfumes and fragrances, skin care, and hair care products are some of the major segments with promising prospects for U.S. companies. Penetration of most cosmetic and toiletries is very low in India. Current consumption of many products is well below that of many countries in Asia. The low market penetration of many cosmetics and personal care products offers room for growth. The Indian toiletries market is well developed and dominated by major multinational companies and a few large Indian players. The urban population with increasing purchasing power is the major force driving demand for cosmetics and toiletries. India is a very price-sensitive market and mass-market products constitute the major part of the cosmetics and toiletries market. India’s import of cosmetics and toiletries and intermediate raw materials is around US$ 120 million, of which the U.S. has a share of approximately 10 percent. The objective of the study report is to analyze the consumer satisfaction level of different brands, particularly focused on the Lakme and Revlon products Market Overview The current size of the Indian cosmetic market is approximately US$ 600 million. Of this, the fastest growing segment is cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20 percent per annum across different segments of the cosmetics industry reflecting an increasing demand for all kinds of beauty and personal care product. Growth has come mainly from the low and mediumpriced categories that account for 90 percent of the cosmetics market in terms of volume. Even with a 20 percent average growth rate, the per capita consumption of cosmetics is very low in India. Current per capita expenditure on cosmetics is approximately US$ 0.68 cents as compared to US$ 36.65 in other Asian countries. However, with changing lifestyles, higher disposable incomes, increasing advertising, penetration of satellite television, awareness of the western world and growing importance of beauty pageants, there have been significant changes and use of cosmetics is on the rise. Also, with the boom in the Indian fashion world and the growth in the television industry, there has been a rise in demand for professional beauty care products. Cosmetic companies in India are placing increasing emphasis on market research and targeting new market segments such as teenagers, men and young women. Cosmetics constitute the high growth segments. Nail enamels and lipsticks account for around 65 percent of total color cosmetic sales in India. Lakme, a brand originally introduced by the Tata group of India, now bought over by Hindustan Lever (HLL) of the Unilever group, Tips & Toes, another domestic player, and Revlon dominate the US$ 60 million color cosmetics market. Multinationals, Revlon of the U.S. and L'Oreal's Maybelline has a dominant share of the small perfumes and other cosmetics.2 percent. while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. the Indian market is getting enlarged and many players are coming out with cosmetic products especially skin care products for men. Many had to re-work price strategies towards the mass segment. Lipsticks account for nearly a third of the market at US$ 21 million. Import Market Costs for importing products are much higher than producing it in the country. while the market for nail enamels is estimated at around US$ 23 million. Most other cosmetic products are estimated to be used by less than 40 percent of the consumers. The color cosmetics segment is very competitive and has a high penetration level of 80 percent. Price is not the only reason responsible for their problems. Market Trends Cosmetics are not just the domain of women any longer and Indian men too are increasingly taking to the use of more and more body sprays. Most foreign cosmetics companies selling premium brands have had a difficult time developing the low volume premium market in India.premium lipsticks and nail enamels market. Poor assessment of the . Mass-market products account for a major share. With rising demand from men. India allows entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39. This makes imported products very expensive for most consumers. size of the upper middle and high-income groups. Integrated management action simply means that all the different functions of the business Must b tightly integrated with one another. keeping marketing as the pivot.with all his inherent contradictions. the textbook words. This is the essential because . India is a very price sensitive market and the cosmetics and personal care product companies. which has been traditionally a stronghold of a few major Indian players like Lakme has seen a lot of foreign entrants like Revlon to the market within the last decade. many cosmetic companies launched enjoys on the firm to accept ‘the consumer as he is’. and treat him as the pivot around the entire business has to be built. (1) Integrated Management Action The second major feature of the Marketing Concept is Integrated Management Action. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time. the concept idea of ‘consumer sovereignty’. especially the new entrants have had to work out new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for themselves. Competition The Indian cosmetic market. In other translated into practice. and price sensitivity even within these groups. had added to their problems. every function has the bearing on the consumer and the aim is to see that all the functions lead to the favorable impact on the consumer. And for this is to happen. . (3) Consumer Satisfaction Integrated management action as explained above. is a means. Namely consumer satisfaction.often at the cost of optimization of overall result. the different functions and department of the organizations are preoccupied with the optimization of their specific activities . the management insists on the absolute coordination of all company actions keeping marketing/customer as the focus. all functions have to be integrated and properly aligned with marketing. In organization that pratises integrated management. it is essential that such an orientation leads to consumer satisfaction. The concept underscores that no firm can afford to ignore the satisfaction of the consumer. In organizations that do not practice integrated management. And this leads to the third major feature of the Marketing Concept. It is the of fulfilling the needs of the consumer. not an end in itself. it counters the temptations of short-sighted attitudes towards consumer satisfaction. The Marketing Concept emphasizes that it is not enough if a firm has consumer orientation. Elle 18's main competitor in the youthbased cosmetics market was Tips & Toes. Elle 18. Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers." said Mr Chopra.MARKETING STRATEGY To strongly position the brand on the youth platform Lakme Lever is planning to revive its youth-oriented brand. a brand that is almost non-existent today. has also unleashed a campaign based on its products. Elle 18 targeted the first-time cosmetic user and currently sports two product lines comprising lipsticks and nail enamel." Launched in 1998. Speaking to Business Line. . Pricing strategy With a pricing that is almost one-third that of Lakme. this division of HLL was focusing on Lakme. Elle 18. said: "We are relooking at the Elle 18 brand. Mr Anil Chopra. of late. "In the first three years. At that point of time. Vice-President. Having put the brand on `maintenance' mode. "There was a change in our strategy in the past. While Lakme has been high on innovation, Elle 18 has been on maintenance mode. The brand has been growing at a lower rate than Lakme. But now we are now relooking at Elle 18 as there is still no brand that is so sharply positioned on the youth platform," said Mr Chopra. There was a conscious price differential between the brands to attract the first generation users of cosmetics. So, while a Lakme Lipstick would have an MRP of Rs 165, an Elle 18 Lipstick was pegged at Rs 55. Meanwhile, Lakme Lever continues to innovate for its existing range of skincare and color cosmetics under the Lakme brand. It recently relaunched its skincare range under the name of Lakme Fundamentals. "While there is no new product, we will be upgrading the existing skin care range with new formulation and packaging," Mr Chopra said. In color cosmetics it has roped in designer Sabyasachi Mukerjee to unleash the `Free Spirit' range as part of its winter collection. "The overall beauty market has been growing between 15-20 per cent but we have been growing higher than the market." However, it is the salon business that has been registering the highest growth rates for Lakme Lever. "With a small base, our salon business has been growing the fastest," Mr. Chopra said. There are plans to have 100 Lakme salons by the end of the year from the existing 92 salons across the country. Besides, Lakme Lever intends consolidating its hair care portfolio launched last year under the Lakme Hair Next brand. "We do not want to add to existing hair care products in the market. The brand has been launched in the hair styling category and we want to create awareness and educate our consumers without confusing them with more products," said Mr Chopra. MARKETING STRATEGY Lakme Restages Its Opera Its turnaround sketch has got just a few strokes - grab the fashion platform, spruce up the supply-chain, and test the rural waters. High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground. They fall in love. Her orthodox father vows vengeance... That's the story of Lakme, a 19th century opera written by Frenchman Leo Delibes, from which Simone Tata borrowed the name Lakme (French for Lakshmi, the name of the priestess). By 1999, the world looked set for a revised version of the work. Simone Tata was no longer on the scene. And a home-grown fashion brand-often personified as the high priestess of fashion in the country-had been sold to a multinational company whose provenance was English, well, Anglo-Dutch, actually-Hindustan Lever Ltd (HLL). Worse, with HLL not appearing too keen about the brand-the company, predictably, denies this-Lakmé, the brand looked all set to follow the spirit of Lakmé the opera (a tragedy). Lever was right. The aria, as is now evident, wasn't quite over. Standing amidst the jamboree of what is, arguably, India's first '' gushes Mumbai-based fashion choreographer Lubna Adams.'' And reactions to the born-again Lakmé at the LIFW did suggest that Chopra and the brand were on to a good thing. Only. ''Lakmé is at the forefront of product-innovation. what happens to Lakmé's skincare business? What does Lever's launch of Aviance mean for Lakmé? And why is it so difficult to find Lakmé products? . Almost everyone has a Lakmésomething in their (cosmetics) collection. is Lakmé back? Getting the focus right A little bit of Lakmé history: in 1995. In 1998. the affable Director who heads Lakmé Lever Ltd is bullish about the brand's new positioning: ''By taking on the fashion and glamour platform. in a way. but also got a virtual ownership of this plank. the Lakmé India Fashion Week (LIFW for short).fashion summit. 51. not just taken a lead (over others). renamed itself Trent and entered a different business (retail). So. Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL. Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. we have. Anil Chopra. It will be very difficult for any other brand to adopt a similar approach. The FAQs: With Ponds becoming part of HLL. the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. ranging from Revlon (through Modi Revlon) to Chambor.000 outlets through which colour cosmetics are sold in India. According to ORG-MARG's retail audit. is clear: Ponds is Lever's primary skincare brand. which will be positioned as a fashion-brand. Lakmé. Modi Revlon: ''The numbers say it all.Chopra accepts that distribution has been the company's Achilles heel for some time: ''The supply-chain hasn't been as robust as it should have been. Likely outcome by the strategy The premium segment. we have an 84 per cent share of the premium end of the colour cosmetics market. however. Says Meghna Modi. Elle 18. is just a slice of the Indian market for colour cosmetics (estimated size: Rs 275 crore). Today. which also has a presence in skincare. which has enjoyed success as . although complex.'' Chopra is quick to rubbish this claim. The 'aspirational' qualification would mean Lakmé would compete at what the company terms the 'upper-mass' (premium) end of the colour cosmetics spectrum (products priced between Rs 85 and Rs 250) where a slew of competitors. are already slugging it out. its apparitional colour cosmetics brand. he says ORG-MARG does not have a representative sample of the 60. Executive Director. 26.'' The positioning bit. but that has been the result of our efforts to reposition and reintroduce the brand. the company has three brands: Lakmé itself. Sharekhan. Chopra claims. .'' Lakmé will remain a loner in the Lever stable: Unilever does not have a presence in the colour cosmetics segment. Any expansion into new areas should be justified by returns. The company plans to re-re-launch Orchid by end-2000.a college-girl brand. but this opera could well have a happy ending. a company has to think of segments carefully. 28. a brand targeted at the lowest-end of the colour cosmetics market.com: ''Though rural markets are big potential. a super-premium brand that hasn't really seen much excitement since its 1999-relaunch. Says Nikhil Vora. But a focused-most of its skincare business and all of its exports business have been taken on by HLL-Lakmé does seem to be on a come-back trail. It's still the second act. and Orchid. but only if tests show there is a rural market for colour cosmetics. Portfolio Advisor. and is test-marketing Elka. The brand. That means Lakmé Lever will have to depend on its own kitchen garden. could also catalyse Lakmé's entry into the hinterland. issues.Marketing strategy Revlon. Inc. financial performance. its competitors and respective industry segment in a tabular format. . product offerings & their USPs (unique selling points). geographical coverage. M&A developments and business strategies. Industry Analysis Section: This section covers an analytical overview on the respective industry segment. which distinguishes this report from any other available competitive benchmarking report on this company: 1. challenges. Comparative SWOT analysis on the company. this Competitive Benchmarking Report has two USPs.Competitive Benchmarking Report This report compares the company with its closest competitors on various parameters such as business segments. 2. Besides a comparative analysis on these metrics. trends and opportunities. . companies’ performance vis-a-vis industry trends. financial performance. market/industry position. Delivery will take 4-5 business days as the publication is updated at time of order to ensure the information is as current as possible. This report offers a comprehensive overview on the key strategies adopted by these market leaders to gain a stronger market position in this competitive environment. and business strategies etc of the company in relation to its competitors & industry segment. business analysts and decision makers to get a comprehensive perspective on product offerings. . From a strategic decision making perspective. It can be best used to derive a framework for strategic planning with key success factors (KSFs) of the industry or marketplace on specific metrics.This analytical report is especially created for top management. investors. it can be further used to develop future quality and market initiatives for the company to enhance its overall competitive position. it was named after the French opera Lakmé. At a time when the beauty industry in India was at a nascent stage. as India took her steps into freedom. high consumer interest segments in the Indian Industry .that of skincare and cosmetic . Lakme. and greater competition from global companies in cosmetics. Lakme started as a 100% subsidiary of Tata Group (Tomco). India's first beauty brand was born. and went on to become its chairman.Lakme's Profile Lakmé is an Indian brand of cosmetics. owned by Unilever. When Tata's saw a bigger growth potential in the retail market. Half a century ago. Simone Tata joined the company as director. In 1998 Tata sold of there stakes in Lakmé Lever to to HLL. Indian cosmetic industry was rather nacent. and there was a very small market base. Lakme tapped into what would grow to be amongst the leading. and went on to create Trent and Westside. they enetered into a 50-50 joint venture with Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever. At the time of its establishment. for Rs 200 Crore (45 million US$). Branding and packaging of the product range is first class and they are tested and manufactured solely for this brand name and no other.products. All product formulation is in accordance with the health standards of the . The Products LAKMÉ leading hair care products are developed exclusively for distribution to hair and beauty salons. nails. research and constant innovation. Armed with a potent combination of foresight. Lakme has grown to be the market leader in the cosmetics industry. These include products for the lips. The family has over 40 years of manufacturing experience in salon products. and arm the consumer with products to pamper herself from head to toe. self-financed and family owned. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. The very best raw materials are used in manufacture using the latest technology and adopting the highest levels of hygiene. Lakmé East a regional distributor of Lakmé Cosmetics with its main office in Colchester is conveniently placed to provide you with all the guidance back up and support you’ll ever need. eyes. face and skin. and services like the Lakme Beauty Salons About LAKMÉ The Carreras family established LAKMÉ Cosmetics in 1997 and is independent. pH-Balanced Face Wash. Calamine Lotion.. with freestanding display units highlighting the unique quality and variety of your products and enhancing the quality of your sales and service. Combine this with FREE ongoing in-salon education and you have the perfect basis to grow your business for yourself. Prior to the launch of these products. Hemas Marketing was responsible for the distribution of Lakme Maximum Moisturiser and Lakme Deep Pore Cleansing Milk. The Promotion Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGE for customer sales and your own use. but not by yourself. Lakme's local distributor Hemas Marketing (Pte) Ltd. Launched in Colombo earlier this month. Lakme expands skin care products Lakme. which the company will continue to market in new packaging. Sun Screen Lotion and Hair Remover. the Indian cosmetics giant has expanded the range of skin care products it markets in Sri Lanka. the addition to the Lakme skin care range are the Lakme Nourishing Cold Cream. Nourishing Body Lotion. . and unveiled the company's new international logo and image. has announced.European Union and the United States Food & Drug Administration and is subject to ISO 9002 certification. but because we need each other.” To Summarise For those of you already involved in the hair care business Lakmé offers a natural progression to broaden business prospects and boost profits. For our part. Our warehouse is constantly re-stocked to ensure products are always available for immediate delivery and at the keenest prices. We presently have two highly trained Stylist/Technicians constantly in the field ensuring our salons are getting all the help they need with the very best product and training possible. we believe our on-going support programme is second to none. PLUS a complete programme of professional support that virtually guarantees your success – all in one superb package. By working together. Interested? Lakme cosmetics . plus direct access to the main technical European team. we can enjoy mutual success limited only by ambition and effort. Lakmé East can make your job easier by supplying the highest quality products. a totally reliable service.Support Lakmé East is here to give you all the help and support you need. Not because we’re altruistic. “We are committed to you and your customers. providing the finest hair care products available. “Lakme was launched at the request of Panditji who decided to ban imports of cosmetics. it was named after the French opera Lakmé. Indian cosmetic industry was rather nascent. Simone Tata joined the company as director.beauty. When Tata's saw a bigger growth potential in the retail market. answers. attitudes too SHE’S perhaps more media-shy than her famously reticent nephew Ratan Tata. As managing director of Lakme in the 1960s and 1970s. so to speak. and greater competition from global companies in cosmetics. And Mrs Tata almost caught us on the wrong foot. and went on to become its chairman. At the time of its establishment. Lakme has changed faces. Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco). All his . Simone Tata shows that she’s as much on top of business and consumer issues as any high-profile CEO. We chatted with the Czarina of Indian business about a subject that’s close to her heart . armed with a file containing questions. part of Tata Group. Mrs Tata had been given a huge brief . and there was a very small market base.from on high. owned by Unilever. But when she does meet the press. as she arrived five minutes early for the meeting.Lakmé is an Indian brand of cosmetics. ET met the former chairman of Trent at her offices in Bombay House in South Mumbai. and her notes. they enetered into a 50-50 joint venture with Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever. ” she said.powders and perfumes.as long as you had the vision and as long as you could see the evolution in the rest of the world. with the real turnaround happening only in the 1980s.” she reminisces. “We thought that it should be available for those who wanted it. Max Factor and Himalayan. Lakme was ahead of the curve. That was his understanding of cosmetics . But not too many of those early competitors are around today: “I suppose they gave up. Lakme’s initial task was attitude change.” she explained. you had to play it the way it came . with copy explaining . so he asked the Tatas to bring out a range of powders and perfumes. It introduced the Indian woman to colour . face powder and vanishing cream. and the brand’s marketing campaigns addressed these taboos directly. foundations and more.” she laughs. nail enamels.” Competition did come along. in a market which consisted of just talcum powder.” she says. but Mrs Tata admits that it took a long time. Every nail enamel was called Cutex whether by Lakme or whoever.launching lipsticks. but even in those early days. That did happen. “There was also a famous nail enamel called Cutex. Lakme has come a long way since then. with brands like Pond’s. We did not. Mrs Tata went beyond the brief. “Makeup was considered to be a way to attract the male sex and therefore very much frowned upon. “I didn’t have a benchmark. and we were confident that the day will come where it would be needed.friends in Delhi started moaning and groaning. During the course of our meeting.” But for one exception.she started the Tata’s retail company Trent in 1998 . Readymade is seen as far quicker to apply and works faster.but she’s not left it behind. she had some rapid fire questions for us .I think I’m faithful to Lakme. “That’s a state secret. it’s today moved to being a part of everyday grooming. We are a generation of busy women. because it’s a specialised formulation that suits her skin. she’d admit to using just one-night cream that is a non-Lakme product. “It’s all Lakme . But she wouldn’t reveal which one. “Most women have given up their grandmothers’ recipes. From a situation even twenty years ago when makeup was a special occasion item.” she says. andwhich brands we favoured.on what.” is all she would say . she turned staunch loyalist.that using cosmetics didn’t mean one was “cheap”. Mrs Tata hasn’t been in the beauty business for a while .on what cosmetics we used. When ET tried to turn the tables on her. Liner & Kajal | .Products Face Lips Make Up | Enrich Lip Colour | Lipgloss | Lipliner | Dual Definition LipColor 'n' Liner | Eyes Nails | True Wear Nail Enamel | | Eye Shadow. Lakme Pure Defense Anti-Pollution System Cleansers | Detoxifying Facial Wash | Night Cream | |Day Lotion | Serum | Cleansers Sun Care Body Care Sun Care Matte Effect Body Care Hairnext Matte Effect Discover Glow Hairnext Moisturisers . The Group's principal activities are to manufactures and sell an extensive array of cosmetics.Company Profile Company Profile: Ticker: Exchanges: 2007 Sales: Major Industry: Sub Industry: Country: Employees: Revlon.100. Cosmetics & Health Care Cosmetics & Toiletries UNITED STATES 5600 Business Description Revlon. Inc. Inc. . military exchanges and commissaries and has a licensing business. beauty tools. anti-perspirants and deodorants and other personal care products.. It operates in a single segment. REV NYSE 1.400. skincare. fragrances.S. hair color.Moisturisers Revlon. pursuant to which . Inc. The Group also sells consumer products to U.000 Drugs. powder. HLL has also kicked off its community building exercises by launching an interactive section titled —My Lakme —at Lakme’s new Website—for the first time. Canada. such as perfumeries. blush and concealers.K. . FE) In a significant move.com— in an effort to connect with consumers. HLL Focuses On Community Activities For Lakme ( June '7. For starters. U.the Company licenses certain of its key brand names to third parties for complementary beauty-related products and accessories. as well as certain department stores and other specialty stores. HLL advertises to keep up with competition Intensifying competition in categories like soaps and skin care is leading FMCG company Hindustan Lever (HLL) to aggressively up its adspend as its market shares in these categories has slipped in the six months from March to September. Australia. The Group sells face makeup. In addition. Mexico and South Africa.2002. under Revlon brand names. including foundation. The products are sold in more than 100 countries including in the United States. Hindustan Lever Ltd is stepping up its online marketing initiatives to promote its flagship brand Lakme in cyber space. the company has relaunched its website— Lakmeindia. France. Its principal customers include large mass volume retailers and chain drug and food stores. . skin care. Revlon's management team combines the creativity of a cosmetics and fashion company with the marketing. To pursue this vision. Our vision is to provide glamour. product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world. Our global brand name recognition. Revlon's brands include Revlon®. excitement and innovation through quality products at affordable prices. New .Revlon Profile Revlon is a world leader in cosmetics. with our products sold in approximately 175 countries and territories. fragrance and personal care and is a leading mass market cosmetics brand. sales and operating system of a consumer packaged goods company. ColorStay®. Complexion®. Ownership • • Ronald Perelman: 60% (77% of votes) FMR Corp.a nail enamel unlike any before it . Almay®. Donna Drayerskeens.Perlmahnn Key Dates . Paul Bohan. Charles Lachman. opaque nail enamel in a wide variety of shades never before available.: 20% Corporate governance Current members of the board of directors of Revlon are: Adrienn Boyiensteins. Revlon was able to offer to woman a rich-looking. Martin Landau. Howard Gillyhans. who contributed the "L" in the REVLON name. along with a chemist. by Charles Revson and his brother Joseph. Ultima II® and Flex® and Charlie®.the three founders pooled their meager resources and developed a unique manufacturing process. Using pigments instead of dyes. Revlon Age Defying®. Merele Feldstrhoms. Starting with a single product . CEO Lillian Orienbeck. Revlon was founded in 1932. David L. a subsidiary of Ronald Perelman's MacAndrews & Forbes Holdings. which also allowed a wider color range than the light red. 2006: The Charlie fragrance is launched.S. and goes public. Initially. 2009: Revlon makes an initial public offering of stock. Lachman establish Revlon. in Newark. the revolutionary "cream enamel" came from the tiny Elka company. New Jersey. 2007: Revlon is sold to Pantry Pride. 1955: The company changes its name to Revlon Inc. 1935: The company's first ad appears in The New Yorker magazine. a polish supplier to beauty salons for whom Charles Revson began to work as a sales representative in . Opaque and longlasting.1932: Brothers Charles and Joseph Revson and Charles R. is purchased. it was an improvement over the more transparent. Revlon's nail polish owed its superiority to the use of pigments. dyebased products of other manufacturers. A Nail Polish Company Is Founded in 1932 Revlon's first beauty item was nail enamel. medium red. 2010: The company's professional products line is sold. and becomes a private company. 1940: Lipstick is added the company's product line. Vitamin & Pharmaceutical Corporation is acquired. 2005: Mitchum Co. and dark red then available. 2008: ColorStay lipstick is introduced. 1966: U. Coupling this with his experience at Elka.1931. who contributed the "l" to the Revlon name. This gave him access to more affluent customers as well as those with a moderate amount of money to spend on beauty products. the company had grossed $68. however. sales multiplied more than 40 times. There was a sharp rise in sales to $11. Revlon had a keen fashion instinct. By 1937. Formulating a maxim he followed for the rest of his life. honed by his seven years of sales experience at the Pickwick Dress Company in New York. Revson steered clear of cut-rate stores. going into partnership with his brother and a nail polish supplier named Charles R. he noted that the permanent wave boom was making beauty salons more popular and that demand for manicures was rising in tandem. At the end of 1934. Charles Revson decided to open his own nail polish company. selling his product only at premium prices. Charles Revson and his older brother Joseph distributed Elka nail polish as Revson Brothers.000.055. Within its first nine months.246 in 1933. . Revson decided to enlarge his market by retailing his nail polish through department stores and selected drugstores. He therefore targeted beauty salons as a market niche--a fortunate choice whose importance would grow. the year the company incorporated as Revlon Products Corporation. Revlon was formed on March 1. the company boasted sales of $4. In that year. Lachman. Within a year. 1932. which planned its November issue around the lipstick and nail enamel. too. and radio endorsements written into scripts for performers such as Bob Hope and Red Skelton. Though initially reluctant to go ahead with this project. These efforts produced excellent publicity and helped to raise 1952 net sales to almost $25. "push" money given to demonstrators in stores without Revlon sales staff to insure full retail coverage. Packaging was designed specifically for each line. full-color spreads in fashion magazines.Marketing strategy Postwar sales strategy. and display cards reproducing or enlarging consumer ads.5 million. Revson was persuaded by the success of rival Hazel Bishop. whose sponsorship of This is Your Life was providing serious competition for Revlon's lipsticks. color cards showing the range of colors in the promotion. Each promotion featured a descriptive color name to tempt the buyer. Attracting a weekly audience of 55 million people. The Fire and Ice promotion for fall 1952 was one of the most successful. Returning interest in dress sparked the company's twice-yearly nail enamel and lipstick promotions. The company received its next boost from its 1955 sole sponsorship of the CBS television show The $64. was influenced by increases in spending and department store credit sales. Its features included the cooperation of Vogue magazine. which were crafted in anticipation of the season's clothing fashions. The .000 Question. $64. In 1973. its six lines separately aimed. formerly Knomark.6 million one year previously. Revlon also had a new line of wig-maintenance products called Wig Wonder. Revlon's advertising budget for the year. advertised. makers of antiperspirants and other toiletries. Mitchum-Thayer division's widely publicized products required a 1971 advertising budget of $4 million.5 million. Charlie was an instant success. $7. helping to raise Revlon's net sales figures to $506 million for 1973 and to . An important 1970 acquisition was the Mitchum Company of Tennessee.S. had also become familiar to U. such as Norell and Intimate for women and Braggi and Pub for men. Geared to the under-30 market. from $33.000 Question topped the ratings within four weeks of its debut. Revlon fragrances. proved Charles Revson's adage that publicity had to be heavy to sell cosmetics. Takeover strategy The 1970s began with annual sales of about $314 million. Revlon introduced Charlie. a fragrance designed for the working woman's budget. consumers. Mitchum joined the Thayer Laboratories subsidiary. Charlie models in Ralph Lauren clothes personified the independent woman of the 1970s. and net sales for 1955 grew to $51. and marketed. as a result of the television show.6 million. was the industry leader in all franchised retail outlets. The Cosmetics and Fragrances division. sales of some products increased 500 percent. almost $606 million the following year. • lipstick • lipgloss • lipliner . • Foundation • Powder • Blush • Concealer . • Mascara • Eyeshadow • Eyeliner • Browcolor . • False Eyeslashes • Nailcolor • Nailcare • Artificial Nails . • Haircolor • Beauty Tools • Fragrance . Products on the brand switching behavior of the .OBJECTIVES OF STUDY To find out the impact of Lakme and Revlon informative Cosmetics consumer. To know the media access by consumers to know about Cosmetics Products. To know the impact of various striking features on buyers behavior. To know various cosmetics product range in the market level for Cosmetic Products (Nail Enamels. To study the effect of Consumer Satisfaction on the marketability of Cosmetic products. Shampoo). Lotions. The researcher truly on the basis of his convenience did the sampling. .RESEARCH METHODOLOGY In the present study stratified sampling was done and strata were formed on the basis of the age. The persons were contacted and the data was collected from them by the means of questionnaire. which are using and/or knowing about cosmetic Products of Revlon or Lakme in Agra. sex and occupation of the respondent among the strata formed was done random sampling for the collection of primary data. Sample was taken only in the Agra to determine the attitude of customers towards importance of branding in modern marketing. Sample size is 100 respondents. Sample techniques were convenience based because of time and cost constraints. Sample unit was mainly each of those customers. . questionnaire method is found to be most effective.Research Design The research design is the specification of method and producers for acquiring the information needed. Data Collection ( Primary & Secondary ):Data was collected from both primary and secondary sources. For collecting primary data consumer survey has conducted in Agra city with the help of a predetermined questionnaire. which determines the course of action toward the collection and analysis of required data. It is the framework. Keeping in view the nature of study. This framework is to ensure that the relevant data are collected accurately in an economic manner. 2. Comparative analysis of width & depth of Lakme and Revlon products & its Competitor for each market.A.Economic Factors 5.Quality 4." The objective behind this project was to know the various External Factors that effects the organization. • Finding out prospective markets & retail outlet to increase coverage of Lakme and Revlon product The project Assigned to US is "Identification of External Factors which effect the organization with special selling of the Lakme and Revlon Company. Factors like1.Social Factors 6.C for Lakme and Revlon range. .Government Policy 2.Competitors 3.Marketing Strategies of Revlon & Lakme • • Classifying Cream as A+.B.Customers We also have to know the mission and vision of the organization and also have to the analysis of the sales position. develop new products & packaging. Marketing Department comprising of seasoned professionals ever adaptive to market dynamics. A 300 plus professional field force serving the distributors and the main retail stores on a regular basis. Twenty.One Depots spread across the country integrated through a single IT network. Association with top of the line advertising agencies to communicate and connect its brands to the consumers. Technology Center Providing and maintaining the international quality that the consumer deservesQualified team of technologists and scientists endeavoring to adapt formulations. . Expand and excel:All India network of sales and distribution with service reaching to two hundred thousand outlets via a network of twelve hundred distributors.STRENGTH Marketing & Sales A commitment to innovate. more than half the consumers want Lipsticks the most. Revlon and L’Oreal recalled noticeably. Advertising Recall Only Lakme ads recalled significantly by consumers at the unaided level. . Consumer Preferences of Cosmetics Toplines Buying Preferences Among cosmetics. Brand Preferences Lakme is the only cosmetic brand getting significant brand recall at the unaided level. Mid and Premium price range are the most preferred. Lakme ads dominate the top of mind ad recall among consumers. Nail Polish is a distant second. Lakme dominates the category in consumer minds in a big way. When prompted for cosmetics. When prompted for cosmetics. Revlon ads also recalled noticeably. Revlon a distant second on both counts. be it for brand recall or for intention to buy.Well equipped laboratory to control and meet the international quality standards of our products. revlon etc. Large MNCs like the Levers. but nowadays. have resorted to giving their own lesser known brands free with their popular . making the offer far more cast effective. 1. Infact. it’s almost like one can’t buy a tooth brush without having to tote a detergent bar home as well. Godrej. This frenzy has led to a deluge in the range of innovative products entering this market. The type of products offered as a promotional item range from a small ball pen to expensive electronic items. the meaning of the term gift seems to have attained a wider meaning.Promotional schemes offered by Lakme and Revlon Promotions have emerged as the most economical and effective way to establish a personal rapport with your customers. Philips.2. Marketing heads are exploring the effectiveness of each and every product as a gift to boost sales. A gift on a festive occasion or free with the purchase of a certain product goes miles in leaving a favourable mark on the minds of your customers. They have always been a part of the consumers product s game. the type of products entering the gifting and promotional category is simply mind-boggling and differ from product to product. but a gift item which sells for five rupees might be sourced for just Rs. People tend to offer just about any thing under the label “Free Gift Inside”. Five rupees off means five rupees less to the manufacturer. Value Perception could be one reason why this freebie strategy is more effective. Infact. Companies that cannot invest a heavy sum in promotion or cannot afford to engage in a massive sampling exercise simply tie up with betterknown brands for their products to be offered as free gifts. diamonds to cars. There tends to be a small amount of exploitation of a few lesser-known brands in such exercises. The prizes given out by companies in contests range from gold. This automatically tends to reflect a better sales volume as far as both the brands are concerned. The companies like AIWA and Videocon have been known to offer irresistible freebies like: a walkman or a small sound system free on the purchase of a colour television. as one achieves better sales while the other achieves better exposure at a very nominal expense. over 10 CDs free with a purchase of a sound system etc.brands and vice-versa. think on their feet. Such moves by these companies forced better-established brands like Onida etc. The companies tend to save their promotional expenses and utilise the same to generate better sales in the respective brands. This acts as a mutual benefit for both the parties. This trend has come in as a zephyr to the lesser popular brands striving to establish themselves in the market. Every second brand seems to be running a contest to actively involve the buyer in his brand. homes and free trips abroad. but every thing The latest trend as a promotional strategy that has set the marketing arena abuzz is contests. This trend is extensively practiced by the electronic industry. The companies are tying up big celebs . -No one would know except the horse himself . The dealers along with their whole family were invited to this party. Another womens wear store ‘Scullers’ actually ran a competition for the women in Bangalore where one could actually design a garment of their choice – tops. Recently Axe for it’s brand of deodorant ‘Vodoo’ actually booked a far away island in Kerela and held the longest dance party.and have it hit the Scullers Womens wear shelves. skirts and shorts . competitions etc. Customers had to correctly answer the questions in the form placed in its pack to qualify for this party. its time they returned some”. Thane. capris. The companies are running extensive schemes for the dealers too. for children. the companies may have no doubt charged a premium for their products and services earlier but how safe are they by indulging in such practices? Are the companies really benefiting by sacrificing on their profit margins? Or is it as one of a customer puts it “ They have been charging exorbitant premiums earlier. Apart from luscious snacks there was a whole lot of entertainment activities like games. Infact a leading cosmetic company Lakme also ran a similar promotion where customers could create a shade and give it the name of their choice.and running contests where the customer gets to dine with his favourite star on winning the contest. Bell ceramics had recently organised a largest party in the ceramics industry for their dealers at ‘Tikujini’s Wadi’. But at the end of the day what emanates as the greatest question is. trousers. It is not only the customer who is being lured by such marketing gimmicks. 20 Yes No Yes. . Do you use cosmetic products? No. 80 Interpretation : 100% respondents in use cosmetics products their 80 percent customer called yes and 20 percent customer called No.Data Analysis of Customer’s 1. (Q2) What all the products of Revlon do you use? Revlon 50 40 30 20 10 0 Shampoos Lotions Nail enamels Lipstics 45 35 30 20 Revlon . (Q3) What all the products of Lakme do you use? Lakme 50 45 40 35 30 25 20 15 10 5 0 Shampoos Lotions Nail enamels 30 40 34 48 Lakme Lipstics . (Q6) Are you satisfied with the products of Lakme? No. 65 No . 35 Yes Yes. 45 No. 55 Yes No .(Q7) Are you satisfied with the products of Revlon? Yes. (Q8) In future what type of incentives will attract you? 60 50 40 30 20 10 0 56 23 18 15 Quality Price Discount Offers . How did u get the dealership for the particular product? 40 30 20 10 0 Hoardings 33 23 15 29 Advertisements P amphlets Any other .DATA ANALYSIS OF DEALER’S 1. 2 How you advertise your products? 40 30 20 10 0 Through displays 36 31 21 25 Free Samples Discounts Any other . 3 Which company you prefer the most? 30 25 20 15 10 5 0 Lakme 30 20 28 26 Revlon None Any other . 4. According to margin which company is providing you good profit margin? 50 40 30 20 10 0 50 30 15 10 Lakme Revlon None Any other . The general question has more true representation than the detailed question.LIMITATIONS OF THE STUDY 1. as the people are mainly used Lakme of Revlon Products. 4. 3. This led a bias in favour of people and affect the study finding. This constraint must have hampered the study finding in favour of peoples having Personnel & Health Care. The random sampling includes more people. The questionnaire has been filled up by those people who used Lakme of Revlon Products. Since it is impossible to choose all walks of life in people in random sample. 5. This constraint might have affected the study finding. Since some of the random sample people are not sincere while writing responses and must have affected the finding. . This could have saved the finding of the study from devilling to too much from reality. 2. 2. Customer satisfaction should be the ultimate aim so that customer complaints should be removal. More promotional schemes should be introduced for customers. Timely feedback should be taken so that all the problems can be easily removed. Company should encourage solving the customer’s complaint. 5. . 3. The company should provide good margin for distributorship.SUGGESTIONS I would like to suggest few points over which a thought can be given to overcome that drawback due to which some of the problems are faced by the products of Lakme and Revelon Products. 1. Promotion by local advertisement can also help in promoting Sales of the products. 4. . 1. While other branded products are not preferred due to high price and brand loyalty. The products of Lakme Groups of Companies are easily available at easy payments and had a very good after sales retailer services. The products of Revlon Groups of Companies are preferred because of its low price and easily available. 2. The advantages which the products of Lakme Groups of Companies shares over other branded companies products are as follows. People who are more conscious about their health are more aware about products and therefore prefer the products of Revlon Groups of Companies. 4. While other branded companies product are not preferred due to high price and brand loyalty. 3. Users of personnel & Health care products also generally prefer for buying the products of Revlon Groups of Companies. The products of Revlon Groups of Companies are preferred because of its low price and easily available.FINDING The products of Revlon Groups of Companies are the leading choice in New Agra and it is far ahead from its competitors in terms of customers. The average sales across North Agra markets is 42. “Monthly survey should be conducted to improve its brand image and increase customer loyalty”.1% respectively. The average Sales across West Agra markets are 48.2% respectively.1% in all markets. Still there is a need to Promote Lakme to reach at the level of product like ponds. The average sales in different markets are as follows : The average Sales Across East Agra markets are 50. pears etc. NIVEA and Others.9% respectively. Like HLL. The figure reveal that Lakme & Revlon has good market penetration in all most all the market covered in the survey where compared to its competitions.2 % respectively.9% in all markets and Lakme Products are 45. The average sales of Lakme & Revlon across South Agra markets is 37. .CONCLUSION The overall average sales of Revlon Products are 54. BOOKS • KOTHARI C.com • www. BY RESEARCH METHODOLOGY . not fully but partially as advisory notes. NEW PADMA PUBLICATION .lakmeindia. WEBSITES • www.in . are inspired and collected by these sources.BIBLIOGRAPHY The essence of the report. listed in this chapter.co. NEW DELHI. .revlon. R. How u come to know about all the products of the company? (a) Advertising (b) Hoardings purchasing the (c) Brand Image particular products of the 5. Do you use cosmetic products? (a) yes (b) No 2. Are you satisfied with the products of Revlon? (a) yes (b) No 8.CUSTOMERS QUESTIONNAIRE 1. What all the products of Revlon do you use? (a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics 3. What all the products of Lakme do you use? (a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics 4. (c) Low rates Are you satisfied with the products of Lakme? (a) yes (b) No 7. Reasons company? for (a) Better Quality (b) Easy availability (d) Brand Image 6. In future what type of incentives will attract you? (a) Quality (b) Price (c) Discount (d) Offers . Are you satisfied with your company you prefer? (a) Yes (b) No . According to margin which company is providing you good profit margin? (a) Lakme (b) Revlon (c) None (d) Any Other 5. How did u get the dealership for the particular product? (a) Hoardings (c) Pamphlets 2 (b) Advertisements (d) Any Other How you advertise your products? (a) Through displays (c) Discounts (b) Free Samples (d) Any Other 3 Which company you prefer the most? (a) Lakme (b) Revlon (c) None(d) Any Other 4. According to you which company provides better quality? (a) Customer demand (c) More profit margin (e) All above (b) Brand Image (d) Advertising 6 Why you keep products of a particular company at your shop? (a) Customer demand (c) More profit margin (e) All above (b) Brand Image (d) Advertising 7 According to you which company’s product sales the most? (a) Shampoos (b) Lotions (c) Nail enamels (d) Lipstics 8.DEALER’S QUESTIONNAIRE 1.