INTRODUCTION OF LAKME UNILEVER PRIVATE LTD³Lakme is the Indian woman¶s Beauty Sutra´ ± inspiring expression of her unique beauty and sensuality.Lakme brings expert products and services that are borne out of true understanding of the needs of the Indian woman. They help the Indian woman in expression of her best self ± sensual, original, expressive, alive and intuitive. Lakme inspires her to unleash the potency of her femininity, beauty and sensuality 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: y We work to create a better future every day y 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. y We will inspire people to take small everyday actions that can add up to a big difference for the world. y We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact. 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." y Always working with integrity 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. y 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. y 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. y 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. y 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. A vitality mentality Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers ± a truly multi-local multinational. Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously. Code of business principles y Standard of Conduct We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. y Obeying the Law Unilever companies and our employees are required to comply with the laws and regulations of the countries in which we operate. y Employees Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. y Consumers Products and services will be accurately and properly labelled, advertised and communicated. y Shareholders Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. y Business Partners Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. y Community Involvement Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfil our responsibilities to the societies and communities in which we operate. y Public Activities Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests.. y The Environment Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. y Innovation In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. y Competition Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. y Business Integrity Unilever does not give or receive whether directly or indirectly bribes or other improper advantages for business or financial gain. No employee may offer give or receive any gift or payment which is, or may be construed as being, a bribe. y Conflicts of Interests All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Any breaches of the Code must be reported in accordance with the procedures specified by the Chief Legal Officer. y Business Partner Code We are committed to working with our business partners to achieve high standards and to provide greater transparency on how we work together. y Maintaining high standards together To meet the expectations our consumers have of our brands as high quality, reliable products, we form close working relationships ± many of them long-term ± with our business partners. In support of this approach, we have developed a Business Partner Code that is compatible with our Code of Business Principles. The Code makes clear the standards to which we expect our business partners to adhere. It contains 10 principles covering business integrity and responsibilities relating to employees, consumers and the environment. Safe and healthy working conditions will be provided for all employees . y Corporate Governance We have always aspired to high standards of corporate governance. physical or mental punishment. at Hindustan Unilever. or other form of abuse. This is our road to sustainable. LAKME¶S POSITIONING IN TERMS OF PERSONALITY AND SELF CONCEPT: Lakme is a product range that caters to the beautification needs of not only women in their adult age but in today's context teenagers also. and our business partners.There shall be no use of forced or compulsory labour. feel proud to belong to a Company whose visionary founders had laid the foundation stone for good governance long back and made it an integral principle of the business. There shall be no use of child labour. the communities we touch.Business partner code There shall be compliance with all applicable laws and regulations of the country where operations are undertaken. requires the highest standards of corporate behaviour towards everyone we work with. and the environment on which we have an impact. It has a brand personality of someone who takes care of you and your beauty needs. as a minimum. It tries to position itself amongst its consumers as a product range that will help them look beautiful as is evident from its catchphrases: 1. On top of the world! . demonstrated in the words above. We. we believe. Wages and working hours will. and employees shall be free to leave employment after reasonable notice . and specifically there will be compliance with relevant ILO standards . including minimum wage.There shall be respect for the right of employees to freedom of association* . and rules and regulations. overtime and maximum hours in the country concerned . There shall be respect for human rights. Transparency and accountability are the two basic tenets of Corporate Governance. our people. Our approach to Corporate Governance To succeed. and no employee shall suffer harassment. comply with all applicable wage and hour laws. profitable growth and creating long-term value for our shareholders. Source of radiant beauty1! Lakme has a range of beauty products to offer to its consumers. 3. Lakme hair next: exclusive range of hairstyle products that give you that salon look instantly. Some of the ways in which it tries to position itself: 1. 2. Lakme (moisturizer): radiant skin. Lakme face magic: daily wear soufflé. long lasting and healthy make up. 10. Lakme Hair Color: magic of colors (collage). Lakme Tropical Island (cosmetics): defining the future of fashion. 11. now and forever. · A product that provides you with an option of getting beautiful hair. 7. Lakme (skin vitalizer): radiant skin.Lakme hair care (international): natural hair care 12. Lakme sun expert (sunscreen): sun safe hamesha! (face the sun with a smile) 9.2. · A long lasting beautification product range. . Lakme fair perfect: For flawlessly fair skin! 4. Lakme pure defense: anti-pollution system. now and forever. Lakme (versatile eye shadow collection): rich. On the basis of above mentioned positioning strategies Lakme can have the following characteristics that determine its personality: · Someone who takes care of your beauty needs. 6. 5. Lakme nail polish and lipstick: electric brilliance/sensual brilliance 8. · Something that is not harsh on your body or harmful for your beauty. That's the story of Lakmé. the fastest growing segment is color cosmetics. · It covers all facets of beauty care for women. from which Simone Tata borrowed the name Lakmé (French for Lakshmi. · It's an Indian cosmetic brand. accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20 .· A product that helps you get a beautiful skin. Lakme Nail Enamel Remover.. · Someone who tells you right things about looking good. the name of the priestess). a 19th century opera written by Frenchman Leo Delibes. a complete product range. · It helps arm the consumer with products to pamper her from head to toe i. The following factors of Lakme's personality help in differentiation of its products from the competition: · It covers all facets of beauty care. Lakme Strawberry Silk Cream Lakme Deep Pore Cleansing Milk 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. The current size of the Indian cosmetic market is approximately US$ 600 million.e. Of this.. e Radient Rose Powder. · A cosmetic product that you can wear for the entire day and not a special occasion. and Revlon dominate the US$ 60 million color cosmetics market. awareness of the western world and growing importance of beauty pageants. Tips & Toes. Current per capita expenditure on cosmetics is approximately US$ 0. price and volume played an equal role in value growth. Mass-market products account for a major share. The major players in this . Within the last decade. there have been significant changes and use of cosmetics is on the rise. The color cosmetics segment is very competitive and has a high penetration level of 80 percent. another domestic player. a brand originally introduced by the Tata group of India. fairness creams and face cleansers are the popular categories in the skin-care segment and account for approximately 60 percent of the skin-care segment. increasing advertising. while the market for nail enamels is estimated at around US$ 23 million. Lakme. Lipsticks account for nearly a third of the market at US$ 21 million. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. In the skin-care segment.percent per annum across different segments of the cosmetics industry reflecting an increasing demand for all kinds of beauty and personal care product. Multinationals. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market.S. the per capita consumption of cosmetics is very low in India. penetration of satellite television. Revlon of the U. The skin care market in India is estimated at US$ 180 million.68 cents as compared to US$ 36. with changing lifestyles. while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. However. now bought over by Hindustan Unilever (HUL) of the Unilever group. Even with a 20 percent average growth rate.65 in other Asian countries. Moisturizing lotions. this segment has seen many consumers slowly shift from the mass to the premium end of the market. higher disposable incomes. The penetration rate is high in the skin-care segment as compared to color cosmetics. A major reason for low penetration of international brands can be attributed to high pricing.segments are Lakme. repeat purchases were not forthcoming and to retain their sales growth. Ponds. followed by players such as J. several foreign companies reformulated price strategies to tap the large Indian middle class. Morison that markets the Nivea range of products in India. . as this group looks for better products and is willing to pay a premium for international quality products. Penetration levels of international cosmetics brands in India are still low. Godrej and Revlon. These companies initially gained sales on their international brand image. however.L. Foreign brands currently constitute only 20 percent of the market. Fair & Lovely of the HUL group with a 50 percent market share. Urban women in the middle and upper income groups in the age range of 23-50 is the target group for international brands. Industry estimates suggest that there are close to 10 million such women in India. We constantly integrate a lot of the above the line campaigns like 'Whose watching your lips' with below the line initiatives Anil Chopra. Significant focus is on sales counters. Catalyst spoke to Anil Chopra. it continues to lead. Lakme Lever's Business Head. Lakme Lever ''Lakmé is at the forefront of product-innovation. regional players. the rural market is turning out to be the stronghold of smaller. Lakme's market share averages 7-8 per cent.'' said Mumbai-based fashion choreographer Lubna Adams. . Although stiff competition has emerged for Lakme Lever within the Rs 250-crore colour cosmetics market. beauty advisors and dealer aids. Even as the premium segment is getting crowded. In the skincare market. Almost everyone has a Lakmé-something in their (cosmetics) collection. Business Head. The Indian cosmetics industry is in churn.Below the line initiatives are extremely important in the cosmetic segment since the buying experience is as important as brand image and advertising. estimated at Rs 700 crore. The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products. The µmorphing¶ of India is subtle and the changes are not visible for the first time visitor. bath & shower products and aftershave balm. companies.S. along with the crowning of three Indians as Miss World and Miss Universe during the preceding four years. Perfumes and fragrances. The low market penetration of many cosmetics and personal care products offers room for growth. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. while at the same time the legendary emerging middle-class has generally been fuelling demand for cosmetics and upper-mass toiletries. especially the premium variety. with a population of nearly a billion people.INTRODUCTION TO COSMETICS INDUSTRY IN INDIA India. Penetration of most cosmetic and toiletries is very low in India. the average consumer may be unaware of their purpose or even existence. hand care and other valueadded skin care products. However. Consequently. The Indian cosmetics and toiletries market grew by 8. and hair care products are some of the major segments with promising prospects for U. This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. and this trend is fuelling growth in the cosmetic sector. This also explains the relatively poor showing of perfumes. . Current consumption of many products is well below that of many countries in Asia. Examples include toners. the cosmetic consumption patterns of Indian women have changed. Only the richest consumers can afford these. have made Indian women conscious of their appearance. skin care.7% in current value terms in 2001. India's urban population is the main engine that fuels the demand for various cosmetic products. Products that are too specialized have yet to be successful on the Indian market. indeed. the market liberalization process that began in 1991. is a country of contrasts. with value sales amounting to Rs126 billion. The growing Indian cosmetics market offers promising prospects for international brands. HUL was one of the eight Indian companies to be featured on the Forbes list of World¶s Most Reputed companies in 2007. In 2007. India and has an employee strength of over 15. HUL has the largest number of brands in the Most Trusted Brands List. It has 39 factories in the country. it has been recognised as a Golden Super Star Trading House by the Government of India. Sixteen of HUL¶s brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products are available in over 6. It¶s a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). It has over 35 brands. and United Traders Ltd.INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED Hindustan Unilever Limited (HUL) (BSE: HUL) is India's largest fast moving consumer goods company. . Hindustan Unilever was rated as the most respected company in India for the past 25 years by Businessworld. The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. touching the lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages. Hindustan Vanaspati Mfg.000 crores. The company was renamed in June 2007 to ³Hindustan Unilever Limited´. Two out of three Indians use the company¶s products and HUL products have the largest consumer reach being available in over 80 per cent of consumer homes across India. 13. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps. The rating was based on a compilation of the magazine annual survey of India¶s Most Reputed Companies over the past 25 years. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers. HUL is also one of the country's largest exporters. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of over Rs. nearly 80% of the retail outlets in India.000 employees and contributes for indirect employment of over 52. i. According to Brand Equity.. Co.. one of India¶s leading business magazines . detergents and shampoos amongst others with over 700 million Indian consumers using its products. Ltd.3 million outlets in India. It is headquartered in Mumbai.e.000 people. tea. Sunsilk and Dove shampoos. Lux. Some of its brands include Kwality Wall's ice cream. Rin and Wheel laundry detergents. 1993. Brooke Bond & Co. Soon after followed Lifebuoy soap in 1895 and other famous brands like Pears.History ± Chronology In the summer of 1888. Pepsodent and Close Up toothpaste and brushes. Fair and Lovely creams. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. Unilever now holds 52. deregulation permitted alliances. Vanaspati ghee was launched in 1918 and the famous Dalda brand came to the market in 1937. Simultaneously. The rest of the shareholding is distributed among about 360. Lakme Limited. HUL offered 10% of its equity to the Indian public. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). Pureit water purifier. Hamam and Moti soaps. Kissan squashes and jams. With it. Ala bleach.10% equity in the company. Clinic All Clear. began an era of marketing branded Fast Moving Consumer Goods (FMCG). Lakme Unilever Limited. Modern . HUL and yet another Tata company. Lifebuoy. Breeze. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL. In 1931. and in 1977 Lipton Tea (India) Limited was incorporated. Unilever set up its first Indian subsidiary. visitors to the Kolkata harbor noticed crates full of Sunlight soap bars. Liril. Brooke Bond tea. Clinic Plus.675 individual shareholders and financial institutions. Annapurna salt and atta. These three companies merged to form HUL in November 1956. The erstwhile Lipton's links with India were forged in 1898. Rexona. Knorr soups & meal makers. Lux and Vim. By 1903. and Surf. In 1995. Vim dishwash. Rexona. Subsequently in 1998. being the first among the foreign subsidiaries to do so. Vaseline lotions. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. In one of the most visible and talked about events of India's corporate history. acquisitions and mergers. formed a 50:50 joint venture. embossed with the words "Made in England by Lever Brothers". In 1912. India Limited was formed. Lipton tea. the company had launched Red Label tea in the country. Pond¶s talcs and creams. The erstwhile Brooke Bond's presence in India dates back to 1900. effective from April 1. Domex disinfectant. Lakmé beauty products. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Bru coffee. Hindustan Vanaspati Manufacturing Company. Unilever acquired Lipton in 1972. skin care etc. Dabur India Limited .Dabur India Limited is an India-based fast moving consumer goods company which deals in healthcare.Bread. Marico Limited:Marico has a portfolio on high margin "Beauty and Wellness" platform which includes hair oils. it acquired 100% stake in SCA Hygiene Products which owns the Snuggy brand of baby diapers. COMPETITORS Procter and Gamble (P&G) India : HUL faces a fierce competition from P&G India in its key segments i. Personal Care includes hair care products.15% of Fem Care Pharma Ltd which is primarily engaged in the business of export of personal care products. Godrej Consumer Products Ltd. It has in its portfolio some of P&G's Billion dollar brands such as Vicks & Whisper in health care and Ariel and Tide in detergents segments. edible oils.On December 11. .GCPL is second largest soap player in India after HUL with a market share of 9. This portfolio has shown a growth of 30% over a period of FY05-08. (PGHH) and Gillette India Ltd. and Axe deosprays. personal care and food products. It operates in India thorugh three subsidiaries: Procter and Gamble Home Products (100% subsidiary of the company). Procter and Gamble Hygiene and Health care Ltd.e. 2008. (GCPL): It has two segments: Soap (64% of revenues) and Personal Care.In November 2008. shaving cream and other toiletries. soaps. Detergents and Personal Care. Dabur India Limited announced the acquisition of 72.2%. Colgate-Palmolive (India) Limited : It manufactures a range of products marketed under the Colgate which includes oral care products and Palmolive (skin care and hair care products) brand names. .OBJECTIVES Help in building a positive association with people thereby enhancing brand personality How to break the negative connotation of Being fashionable To understand the marketing strategy of lakme cosmetics products. To understand the growth of cosmetics sector in today¶s scenario. To understand people¶s consumer behavior with reference to cosmetics. To know people perception towards lakme products available in the market. SOURCES OF DATA RESEARCH DESIGN SAMPLING DESIGN .METHODOLOGY Research methodology is a careful investigation for inquiring in a systematic method and finding solution of a problem. This research consists of following element. It comprises the defining and redefining of problem formulating hypothesis. collection and evaluating data. making detection and reaching conclusion. External Data. . In sampling technique. Secondary data are usually in the shape of finished products. they are collected for a particular purpose. research books and internet (websites). which have already been collected by some other persons for their purpose and published. 100 respondents were selected at random. The selection is purely depends on chance. SAMPLING DESIGN A sample is a representative part of the population. So while conducting the survey. RESEARCH DESIGN The study was conducted as an exploratory sampling survey method to collect primary and secondary data. A random sampling technique was used to collect data from the respondents. Secondary Source of Data Secondary data are those. was generated from magazines.SOURCES OF DATA Primary Source of Data Primary data are those collected by the investigator himself for the first time and thus they are original in character. A random sample is a sample selected from a population in such a way that every member of the population has a equal chance of being selected and the selection of any individual does not influence the selection of any other. A wellstructured questionnaire was personally administrated to the selected sample to collect the primary data. information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. as India took her steps into freedom. Lakme tapped into what would grow to be amongst the leading. India's first beauty brand was born. At a time when the beauty industry in India was at a nascent stage.Company profile Half a century ago. Lakme. high consumer . the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. face and skin. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. nails. Armed with a potent combination of foresight. it offered a range of cosmetics with nail polishes & lipsticks from the early 80¶s. Lakmé also understands the importance of maintaining and accentuating a women¶s natural beauty. renamed itself Trent and entered a different business (retail). for this it has introduced a range of skincare products from 1987. eyes. In 1998. but that has been the result of our efforts to reposition and reintroduce the brand. 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. for this it has introduced a range of skincare products from 1987. A brand that has over 5 decades talked of beauty is none other than Lakmé. Lakme has grown to be the market leader in the cosmetics industry. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women.that of skincare and cosmetic products. Launched in 1952. A brand that has over 5 decades talked of beauty is none other than Lakmé. Lakmé also understands the importance of maintaining and accentuating a women¶s natural beauty. These include products for the lips. A little bit of Lakmé history: In 1995. research and constant innovation. Launched in 1952. Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL. and services like the Lakme Beauty Salons. Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. it offered a range of cosmetics with nail polishes & lipsticks from the early 80¶s.interest segments in the Indian Industry . Only.'' The . and arm the consumer with products to pamper herself from head to toe. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. its aspirational colour cosmetics brand.'' Chopra is quick to rubbish this claim. the company's non-transfer lip-colour range follows in the wake of Maybelline's launch of a similar range. Modi Revlon: ''The numbers say it all. And fashion consultants like Meher Castelino believe the brand commands an edge at the high-end: ''By appropriating the fashion platform for itself. which targeted this segment. Still.000 outlets through which colour cosmetics are sold in India. Lakmé. he says ORG-MARG does not have a representative sample of the 60. are already slugging it out. Executive Director. although complex. 26. we have an 84 per cent share of the premium end of the colour cosmetics market. According to ORG-MARG's retail audit.positioning bit. Indeed. and its new nail-enamel colours come soon after Maybelline and Revlon launched their nail-enamel range. ranging from Revlon (through Modi Revlon) to Chambor. Says Meghna Modi. it is conceivable that Lakmé's new-found aspirational strategy could have been brought about by competitors like Revlon and Maybelline. The company's defense is that it takes at least 15 months from the conceptualization to the actual launch of products. which also has a presence in skincare. 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. Lakmé has entrenched itself at the glamour-end. is clear: Ponds is Lever's primary skincare brand.'' . SWOT ANALYSIS Of LAKME Strengths : h h h h h local brand of specific relevance to India. h Varying quality range in its products. Ability to deliver Cost Savings. Access to Unilever global technology capability and sharing of from other Unilever best practices Weaknesses : h Price positioning in some categories allows for low price competition. Integrated supply chain and well spread manufacturing units. Strong R&D capability. h Upgrading consumers through innovation to new levels of quality and performance. h Building brand image by collaborating with top designers in Lakme Fashion week . h Falling Quality of Lame salons Opportunities : h Brand growth through increased consumption depth and frequency of usage across all categories. well linked with business. eyes and nail segment for the beauty aficionados. Lakmé provide the complete package with the skin care range and the wide range of colors to spice up the look. h Spurious/counterfeit products in rural areas and small towns.Lakmé Radiance Compact . To add to this vast repertoire is a range of specialized skin care products for the discerning women. Face Lakmé Daily Wear Soufflé . Keeping skin looking healthy and glowing is also a part of looking great. lips. Lakmé Flawless Matte Complexion Compact Lips . h Non Existence of brand image in long Run Everything a girl wants Lakmé has a wide range of products in color cosmetics that bring visible results.Threats : h Aggressive price competition from local and multinational players.Lakmé Perfecting liquid Foundation . Lakme offers a range of products in the face. Lakme products Colours From the spicy shades to the flattering look. .Lakmé Enrich Lipcolor . Lakmé Fundamental Deep Pore Cleansing Milk Moisturizing 1. Lakmé Fundamental Winter Care Lotion - . Contains resins and silicone with colour lock technology that gives brilliant long lasting shine Skin For radiant skin Lakmé is there to pamper your skin with specialized products for the diva in you.a wide range of products are on offer to create the perfect eyes. Lame Insta Eyeliner eyelids 3. 1. Perfecting Definition Lip Pencil .Starshine Lipgloss Glosses in lustrous shades available in 14 shades. Lakme Lakmé Shimmer Eye Cube: Nails True Wear Nail Enamel -Nail Enamel with Lacquer-like finish. Lakmé Kajal: 2. Cleansing Strawberry Silk Splash Face Wash . Eyes From dramatic to natural look. Lakmé Fundamental Peach Milk Moisturiser skin. 2. .Sun Protection The range comprises of lotions to keep your skin healthy and younger looking. Dabur India Limited announced the acquisition of 72. It has in its portfolio some of P&G's Billion dollar brands such as Vicks & Whisper in health care and Ariel and Tide in detergents segments.In November 2008.On December 11. personal care and food products. soaps. This portfolio has shown a growth of 30% over a period of FY05-08. it acquired 100% stake in SCA Hygiene Products which owns the Snuggy brand of baby diapers. edible oils. Dabur India Limited . (PGHH) and Gillette India Ltd. skin care etc. Personal Care includes hair care products. Colgate-Palmolive (India) Limited : It manufactures a range of products marketed under the Colgate which includes oral care products and Palmolive (skin care and hair care products) brand names. Detergents and Personal Care.COMPETITORS Procter and Gamble (P&G) India : HUL faces a fierce competition from P&G India in its key segments i.Dabur India Limited is an India-based fast moving consumer goods company which deals in healthcare. shaving cream and other toiletries. Marico Limited:Marico has a portfolio on high margin "Beauty and Wellness" platform which includes hair oils.GCPL is second largest soap player in India after HUL with a market share of 9.15% of Fem Care Pharma Ltd which is primarily engaged in the business of export of personal care products. (GCPL): It has two segments: Soap (64% of revenues) and Personal Care.e. 2008. . Procter and Gamble Hygiene and Health care Ltd. Godrej Consumer Products Ltd.2%. It operates in India thorugh three subsidiaries: Procter and Gamble Home Products (100% subsidiary of the company). the company has sought to instill in its customers an elevate sense of brand experience while simultaneously providing greater and more varied access to its products as well as improved clarity to its communications. HLL is second to none in pushing the boundaries of what is possible financially. structurally. store-based product facilitators. HLL has enabled an even further level of personalization and brand experience in the direct sales arena with its ground-breaking Hindustan UniLever Network. and logistically. New initiatives include raising brand visibility through in-store promotions.3 Mln Outlets Direct Coverage 1 Mln outlets . and self-service. having amassed an army of consultants 250.200 managers 2.000 employees 1.DATA PRESENTATION DISTRIBUTION With respect to distribution related activities like sales and marketing.000 suppliers & associates 75 Manufacturing Locations Total Coverage 6. Beyond its pioneering work FMCG distribution.000 strong with access to 80 % of city dwelling Indians. Hindustan Unilever Present Scenario y y y y y y 15. . Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. accounting for around US$ 60 million of the market. The Shahnaz and the Biotique brands dominate the premium herbal cosmetics segment in India. Of this. estimated at USD 100 million. the fastest growing segment is color cosmetics. .Market Overview The current size of the Indian cosmetic market is approximately US$ 600 million. 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. Laurent and Japanese cosmetics company. Oriflame. Since liberalization. Wella. L'Oreal. International brands cater to a segment that can broadly be classified as the urban higher income group. Revlon. The growing demand for men's cosmetics have made many direct selling companies such as Modicare and Amway to launch new products for men. Escada.. Yardley. Morison and HLL. Rochas. Estee Lauder. With rising demand from men. Cartier. Calvin Klein. Coty. many international brands like Avon. which has deterred average Indian consumers. Shiseido have entered the Indian market. Lancome. there has been a renewed craze for herbal cosmetic and personal care products. Chambor.L. Elizabeth Arden. with Gillette having the largest market share. In the last five/six years. J. The prices of most foreign brands have been fairly high. The market size of men's personal care segment is estimated at approximately US$ 165million. especially in the skin care . L'Oreal. Christian Dior. Schwarzkopf. perfumes and other cosmetics and toiletries. Other major players in this segment include Godrej. Nina Ricci. Burberrys. the Indian market is getting enlarged and many players are coming out with cosmetic products especially skin care products for men. Yves St. Market Trends Cosmetics and toiletries 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. 2 percent. The advent of satellite television and awareness of the western beauty and fashion world. Poor assessment of the size of the upper middle and high-income groups. Many had to re-work price strategies towards the mass segment. India allows entry of imported cosmetics without any restrictions but the average import tariff on cosmetics products is currently very high at 39. Shehnaz Hussain. advertisements and promotions. increasing number of women joining the work force is changing preferences. Price is not the only reason responsible for their problems. Many companies also expanded their range to include herbal variants. . This makes imported products very expensive for most consumers. Most foreign cosmetics companies selling premium brands have had a difficult time developing the low volume premium market in India. Biotique.. The urban population in the major cities with increasing purchasing power is the main force that drives demand for various cosmetic products in India. had added to their problems. and Lotus Herbals are the major players in this segment. and price sensitivity even within these groups.segment with the growing belief that chemical-based cosmetics are harmful. customs and cultures in India Import Market Costs for importing products are much higher than producing it in the country. mainly France.According to estimates of industry experts and trade publications. Netherlands. Italy. Countries like US. and Australia. which has been traditionally a stronghold of a few major Indian players like Lakme. China. Germany. Given the price-sensitivity of the Indian consumer who do not normally prefer to fork out a large sum at one time. and Ponds has seen a lot of foreign entrants to the market within the last decade. India's annual imports of cosmetics and toiletries and intermediate raw materials is approximately US$ 120 million. many cosmetic and toiletries companies launched their products in smaller pack sizes to make them . India is a very price sensitive market and the cosmetics and personal care product companies. and Japan account for rest of the share. Europe. Competition The Indian cosmetic market. and Spain account for the major share. 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. Some companies such as Lakme have even set up exclusive Lakme beauty parlors at major cities in India through the franchisee route . there has been a upgrade to valueadded products such as under-eye wrinkle removing creams. HLL and Revlon were the first to introduce small pack sizes. L'Oreal currently is the only company in the market that has a hair color range tailored exclusively for parlors. creating product awareness and overcoming consumers lack of familiarity with. fairness creams. Revlon introduced its small-range of 8 ml nail polishes and lipsticks. L'Oreal markets its range of specialized hair care products exclusively through salons and beauty parlors. and many more. sunscreen lotions. .more affordable. Stiff competition in the cosmetics and toiletries market also saw an increase in the range of new products being introduced for newer application concepts in the last few years. dark circle removing creams toners. and was soon followed it its strategy by major Indian companies as well. Beauty counselors or advisors at retails outlets have been very successful in gaining attention.. and fears about many cosmetics and personal care products such as home hair permanents and color cosmetics. In the skin-care segment. . from just creams and moisturizers. good distribution network. HLL. skin care. The most promising segments for international companies to pursue are perfumes and fragrances. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. which account for US$ 60 million of the total market. lipsticks and nail polish. The rural market in India for cosmetics and toiletries remains is largely untapped. The urban market itself for specialized cosmetic products . is currently India's largest cosmetics and personal care products producer and its brands has the dominant share (more than 50 percent) in segments such as personal wash.A strong brand promotional campaign. Major domestic players have also not been able to penetrate this market. constant product innovation and quality improvement. and specialized/professional skin care and hair care products. and the ability to provide a variety of quality products are some of the major reasons for the success of most companies. The fastest growing market is however color cosmetics. shampoos. Sales Prospects The growing Indian cosmetics market offers promising opportunities for international brands. and telephone help-lines. Foreign products have enhanced growth of the Indian market by attracting aspirational consumers and increasing acceptance of color cosmetics.remains to be fully exploited. To promote the growth of their products. Indians generally perceive foreign brands as being of superior quality. a dominant player like Lakme have embarked upon a business plan to establish their exclusive franchised beauty salons across major metros in the country. Other key issues regarding sales prospects are product variety and retailing strategies as well. . Imported cosmetics have had a major impact on the Indian market. previously perceived by many as harmful to skin. L'Oreal India has established a consumer advisory unit and Ponds. as mentioned earlier offers skin care advise through touch-screen kiosks. Penetration of color cosmetics is lower than the penetration prospects of the skin-care segment. The Indian skin-care market is not yet fully tapped and offers promising prospects as a growth area. This is one of the reasons why an increasing number of cosmetic companies are dealing with consumers directly through special exclusive counters in major departmental stores and malls featuring their own beauty consultants. There is a marked shift among consumers from functional common-fits-all products to more specialized formulations. India today.Market Access Prior to March 31. India had cosmetics and toiletries on its restricted list of imports and a special import license was required for import of cosmetics and toiletries into the country. .07 is 39. The high duties cause imports to be price uncompetitive. permits import of cosmetics and toiletries without any restrictions. which even though has been scaled down over the past few years is still very much on the higher side. Certain high . Imports have been made easier.20 percent. This has made the Indian market more attractive to foreign cosmetic companies. 1999. This regulation has now been done away with and.end products just do not sell in India because the final price to bring it into India is too high for consumers to pay.03 to 33. but not necessarily cheaper. The total import duty rate on cosmetics and toiletries classified under HS Code 33. about consumer behavior an perception. lotus etc. People have been grooming themselves physically. cosmetic industry in india.e. the market is saturated with many different types of products. loreal. Advertising and promotion is crucial for cosmetics and toiletries products. According to the industry. especially women¶s magazines. in order to create an awareness of new products and build brand loyalty among consumers. World Wide Web also worked as a highly important information source as it provides updated information for the research relating to various areas. Advertisements in TV and the print media such as newspaper and magazines. All the marketing information sources has given a significant contribution to the detailed theoretical perspective for the research i. Competition existing in the present insurance market. Free gifts are given during promotion periods and are advertised in the local major newspapers and on the web. and in the long run. .this section helped in knowing tat cosmetic is not a new concept in india. garnier. consumer behavior and perception study.CONCLUSION: The different information or benefits derived from the in-depth study of the above mentioned information sources are as follows: 1. established brands that emphasize quality and service will have the edge. It also helped us to know that how can perception have a positive and a negative impact on the consumer beahviour. are very common. it helped to know that what actually is consumer beahviour and what are the factors that affect the buying behavior of consumers. 2. Samples of toiletries products are distributed to individual households and products in sachet form are attached to magazines. 4. there are many other companies posing tough competition to lakme ie Revlon . 5. 3. The only difference is the addition of chemicals and technology to our personal grooming. and collection of data was very difficult. Some of the respondents were not ready to fill the questionnaires and some of them were not ready to come out openly. . May loose its Sheen in a long run. It was difficult to find respondents as they were busy in their schedule. Therefore. the study had to be carried out based on the availability of respondents. Increasing Competition Low Rating of lame Salons (not so good customer services) No new Strategies to look for improvements.LIMITATION OF STUDY An underlying assumption for the entire project is that the details and the feedback received from the population is true. in the short-term. This category will rise in the future and lakme must concentrate on catching them so that the company can generate more sales from them.Recommendations Promotions beyond fashion week The brand should not lose its focus away from cosmetics. Lakme should also concenterate on the cosmetic products for the mails. Lakme can start contests for free makeover of women . It would be wise for the company to target young people in the above category and grow along with them as they and the nation prospers. Lakme must not limit itself to serve only the women. perhaps. Many respondents in their answer as to why they did not take lakme product said that lakme does not provide a makeup or sunscreen lotion which is to be put only once as it is not moisture resistant. as it was being started by dove. Website Changes: . So lakme should work more in creating a water resistant sunscreen lotion which could stay all through the hard sweaty days. Though Lakme beauty salons are reasonably priced. More and more boys are turning out to be metro sexual. it has not been communicated well enough. as it will be ignoring a large chunk of looks conscious and metro sexual boys. The general perception is that company-owned salons are expensive. For vast reach unlikely. have been a better strategy. This will attract mores of youg women towards it and will further increase the market share of the company. It can proved to very detrimental. Affordable cosmetic products must be launched. sunsilk and ponds in collaboration. drawing less than 1000 rupees per month. Some sort of an alliance or cobranding with the salons that already exist may.be beautiful. More of the saloons should be created in order to provide easy accessibility to the consumers of the services and products provided by lakme. As today even boys are becoming more concerned of the way they are looking. com etc can also be targeted. lakme has tied up with HUL ± hence it must advertise in these websites also.com.com and feminaindia. a large number live in an ivory tower and they procrastinate to take decisions regarding this aspect. Lakme must advertise more about its website in the mass media so people can gain firsthand knowledge about its products at their convenience in a more detailed manner. According to Abraham Maslow¶s hierarchy of needs the 2nd step to self actualization is the fulfillment of the safety needs. To gain the µearly bird µ advantage they must organize sessions in schools and colleges giving explanations on how the medicure. Leverage information technology to service large numbers of customers efficiently and bring down overheads. facials. massage etc can in general help in their overall development.com. Though people feel the need for being presentable and have good looks. Youth sites like mtstylecheckvindia. The website is good but instead of having a glossary as a separate entity. A page devoted to Lakme¶s beginning as a cosmetic industry must be included in the website to assure potential customers that this is one company that will stick around for a long time to come. . Links to other sites extolling the virtues of cosmetics must be given. Technology can complement or . The next choice then would be cosmetics. pedicure.com. which upon clicking must open out to a window giving details. It can also bring about a stronger brand commitment in this manner. twitter. This could be brought about by an innovative campaign slogan saying. link words which are difficult to understand for a first timer (even if it is as simple as µspf¶) must be marked up (underlined) in the text. facebook.com. It is this dormant aspect that Lakme should awaken in people and bring about restlessness and unfulfilled feeling regarding their and their family¶s overall physical grooming. ³The decision is now´. A page must be devoted on why cosmetic products of lakme must be taken plus real life stories of how people with use of lakme cosmetics improved their looks. Lakme must not target people only when they start earning but much before that. orkut. It can also advertise in other beauty related sections of websites like vogue. Exciting contests can be launched for those who visit the website. management and mining to gauge the profitability and potential of various customer and product segments and ensure effective cross selling. Understanding the customer better will allow cosmetic companies to design appropriate products. determine pricing correctly and increase profitability. The importance of alliances and tie-ups means that companies will have to integrate related but separate providers into their systems to ensure seamless delivery. The agency force is an important customer interface and companies must partner with this group to reach customers and serve them effectively. It can also help improve customer service levels considerably. Use data warehousing. Existing organizations will have to train staff for better service and flexibility. Ensure high levels of training and development not just for staff but for distribution organizations. while all companies will have to train employees to cope with new products and an intensive use of information technology. Build strong relationships with intermediaries such as agents. supplement distribution channels cost-effectively. . prentice hall of India . edition 2005 y Tata Mc graw-Hill Edtion . Donald R. J.P Gupta . 2005 y S. . 14th edition . Keller Lane Kevin marketing . Business Statistics. Schindler. 2005 y Business Statistics . Pamela S.BIBLIOGRAPHY y Kotler Philip . Business research methods .Cooper . K Sharma . com www.com www.economictimes.com .com www.com www.hindubusinessline.lakmeindia.financialexpress.References y y y y y www.hll.
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