LAKME INDIA LIMITED A COMPARATIVE STUDY CONTENTS 1. Acknowledgement. 2. Management problem. 3. Objectives of the research. 4. Executive Summary. 5. Limitations. 6. Main Chapters a. Introduction of the Companies. b. Data sources. c. Findings and Analysis of the research. d. Conclusion. e. Recommendations. 8. Appendix ACKNOWLEDGEMENT We express our heartfelt gratitude to Mr. SANJAY JAIN for the efficient indispensable cooperation and help. His kind assistance and guidance has given us the strength to finish the project successfully. We are also grateful to all the Colleagues of Lakme
India Limited who helped us by providing their valuable time and opinion related to various activities and helped us in successful completion of the project. Chandni Suri MANAGEMENT PROBLEM To study Lakme India Limited as the leader in the lipstick industry and various changes made by the company in relation to the competition faced by the company from multi nationals like Maybelline, Revlon, Avon, L’Oreal. EXECUTIVE SUMMARY MANAGEMENT PROBLEM: To study the popularity of LAKME LIPSTICKS in comparison to other brands like L’Oreal, Maybelline, Avon, and Revlon.
OBJECTIVE: To study and analyze the consumers perception about the LAKME INDIA LIPSTICKS. INTRODUCTION OF LAKME INDIA LIMITED All the products -formulated with the best raw materials- are manufactured with the most advanced technological means and the highest guarantee of hygiene and respect for the environment. We would limit our research to “lakme lipsticks”. INTRODUCTION TO AVON In over hundred countries, Avon is a leader in beauty and a trusted name in direct selling. It is the largest direct selling ompany in the world, with annual sales revenues of over 5 billion US dollars. MAYBELLINE T. L. Williams founded The MAYBELLINE Company in 1915 and introduced MAYBELLINE Cake Mascara in 1917 as the first modern eye cosmetic to be produced for everyday use. The firm and brand name MAYBELLINE was adopted in honor of his oldest sister, Mabel, from whom he originally received the idea of producing an easy-to-use product to darken the eyelashes, which could be sold commercially. MAYBELLINE now operates as a separate division within L’Oreal USA, Inc. REVLON
Revlon is a world leader in cosmetics, skin care, fragrance and personal care and is a leading mass-market cosmetics brand. Our vision is to provide glamour, excitement and innovation through quality products at affordable prices. RESEARCH METHODOLOGY DATA COLLECTION SOURCES Data collected for the purpose of study: •PRIMARY DATA •SECONDARY DATA PRIMARY DATA SOURCES: •PERSONAL INTERVIEWS(questionnaires) SECONDARY DATA SOURCES: •BROCHURES •MAGAZINES •INTERNET FINDINGS AND ANALYSIS BRAND AWARENESS: Respondents had the maximum brand awareness of lakme followed by Revlon, Maybelline, Avon and L’oreal respectively.
PRICE: Lakme products are most reasonably priced followed by avon, maybelline, revlon and loreal respectively COLOR RANGE: L’Oreal scores the highest in the color range followed by Revlon, Maybelline, Lakme and Avon. BRAND PREFERNCE: Maybelline, Revlon and Lakme stand in stiff competition to each other. TEXTURE: •The texture of lakme lipsticks is good except the liquid lakme lipsticks. •Maybelline and Revlon stand in close competition texture wise and the respondents have rated their texture better than lakme lipsticks. PACKAGING: L’oreal scores on the packaging front followed by Maybelline, Revlon, Lakme and Avon respectively.
So lakme looses on the packaging front. RECOMMENDATIONS ?Lakme should introduce a wider range of gloss, wet shine, and trendy lipsticks. ?The packaging of Lakme products should be more attractive. ?Further it should also focus on better texture of its liquid lipsticks. ?It should also introduce different flavors in lipsticks. ?It should introduce lipsticks in smaller sizes and thus pricing them at lower rates. MAIN REPORT Objectives of the Report MAIN OBJECTIVE To study and analyze the consumers perception about the LAKME INDIA LIPSTICKS. SUB OBJECTIVES 1. To make a comparative study of the various brands like
Revlon, Avon, Maybelline, L’Oreal with Lakme. 2. To know about the reasons behind the popularity of the various brands. LIMITATIONS There was very less secondary data available for the cosmetics companies, as most of the shopkeepers had not stocked any brochures or product details. Also there was difficulty in finding those women who had used products of both lakme and other companies. Some of the women who were interviewed were not so responsive. Some of them had not noticed differences between the products of lakme and other multinationals brands. Our sample may not be representative of the entire population.
Area that we were able to cover was small. CHAPTER 1 INTRODUCTION TO THE COMPANIES PROFILE OF LAKME INDIA LIMITED LAKME COSMETICS has placed its quality objectives at the highest levels. Therefore, all its products -formulated with the best raw materials- are manufactured with the most advanced technological means and the highest guarantee of hygiene and respect for the environment. All the company’s products have been created in accordance with the health standards of the European Union and United States Food & Drug Administration, as well as being subject to he strict controls guaranteed by the ISO 9000 certificates. Products offered by Lakme India •Gloss color rinse: Treats hair gently and carefully. A range of 16 shades available. •Make Up: Lakme has introduced a new range of lip colors ranging from light matte to dark glossy ones meant for all occasions. It introduced Transfer Resist Slimstic Lip Color to keep itself in pace with the competition and to provide maximum value and variety to its customers. Lakme has formulated all trendy concepts in lipstick, blush-on, eye-shadow, face powder designed for all types of customers around the globe. Shampoos and Conditioners: Master line of shampoos and conditioners for frequent use consisting of: •Vitamin E shampoo •Mint Lime shampoo •AK-2 Instant conditioner •Shampoo ph5 •Skin Care: Lakme has a wide range of skin care products for all skin types to be used by all types of customers everywhere. It includes oLakme cold cream oLakme sunscreen lotion oLakme deep pore cleaning milk oLakme fresh glow day cream oLakme deep pore cleansing pads •Lakme Hair products : provides the final touch to hair. Offers an ideal finish for the most creative and innovative styles. It consists of oNormal hold hair spray oStrong hold hair spray Normal hold styling foam oStrong hold styling foam oSetting spray oFixing gel oWet gel However we would limit our research to “lakme lipsticks”. Lakme’s Marketing Strategy Lakme has opted for a very well focused marketing strategy to revive its position in the market after the advent of competition. DISTRIBUTION NETWORK Lakme’s vast distribution has assisted the company in keeping the customers to itself by providing products at all local cosmetics shops. All its range is available at almost all medium to big stores providing easy access to its customers. ADVERTISING The frequency of ads at prime time and otherwise has created a ositive appeal in the minds of the consumers. Endorsement of known model Indrani Mukherjee has created enthusiasm and demand for lakme products in the market. LAKME INDIA FASHION WEEK: Lakme holds the fashion week at Taj Palace in New Delhi. Thus it attempts to hold a distinct picture in the minds of the customers. AVON In over hundred countries, Avon is a leader in beauty and a trusted name in direct selling. It is the largest direct selling company in the world, with annual sales revenues of over 5 billion US dollars. Avon means business. It is the largest orporate contributor to causes for women’s health and repeatedly recognized by publications like Working Woman and Working Mother. Avon is known as THE COMPANY FOR WOMEN. With consumers in 139 countries on 6 continents, Avon is connecting women around the world. Avon has been empowering women for 114 years. They have supporting employee diversity and responsibility to consumers and the environment. Avon started out as the California Perfume Company when founder. Mr. David McConnell, 28, of New York, USA discovered that the rose oil perfumes he was giving away were the reason eople were buying his books. He named the company Avon in 1939 in tribute to his favorite playwright, William Shakespeare and Stratford on Avon. Mrs. P. F. E. Albee of Winchester New Hampshire, USA pioneered the company’s now famous direct selling method. Today with the sales representatives numbering close to 3 million, Avon products are sold in 139 countries around the world. Women have been selling Avon since 1886. Avon embraces diversity in the workforce and continues to be a leader in taking affirmative action to ensure that doors are pened to talented individuals and that all associates and employees have opportunities for development and advancement. Avon has a history of being recognized as a leader in corporate diversity with more women in management positions (86%) than any other Fortune 500 company. In fact, half of our Board of Directors is female. In the US and elsewhere, Avon has internal networks of associates including Parents’ Network, an Hispanic Network, a Black Professional Association, an Asian network and a Gay and lesbian network. The network acts as liaisons between ssociates and management to bring voice to critical issues that impact the workplace and the market place. Avon enjoys a proud legacy and commitment to women. This legacy is grounded in their core values of trust, respect, belief, humility and high standards. Leadership and strategic focus on the development of women over the past decade has provided them with significant progress for which they have received numerous awards and recognition. MAYBELLINE T. L. Williams founded The MAYBELLINE Company in 1915 and introduced MAYBELLINE Cake Mascara in 1917 as the first odern eye cosmetic to be produced for everyday use. The firm and brand name MAYBELLINE was adopted in honor of his oldest sister, Mabel, from whom he originally received the idea of producing an easy-to-use product to darken the eyelashes, which could be sold commercially. MAYBELLINE now operates as a separate division within L’Oreal USA, Inc. Cake mascara was originally advertised and sold exclusively by mail. It was received so well by the general public that women started asking for it in drug stores. The MAYBELLINE success story didn’t really start until mascara first appeared in the nation’s ariety stores. In September 1932, a special 10-cent package of MAYBELLINE mascara was designed for sale in these stores. The subsequent success of this product has become legend. MAYBELLINE eyebrow pencils came along a few years later. Eyebrow pencils were the natural follow-up to the solid mascara as the company’s second eye cosmetic. Eye shadows of various shades were added in the 1920’s and have increased in popularity and general usage year after year. Maybelline products include- •Eye make up •Face make up •Lip colour Range of lipsticks- •Wet shine •Wet shine diamonds •Wet shine jewels •Pink wet shine REVLON
REVLON HISTORY: Revlon is a world leader in cosmetics, skin care, fragrance and personal care and is a leading mass-market cosmetics brand. Our vision is to provide glamour, excitement and innovation through quality products at affordable prices. To pursue this vision, Revlon’s management team combines the creativity of a cosmetics and Fashion Company with the marketing, sales and operating system of a consumer packaged Goods Company. Our global brand name recognition, product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world, with our roducts sold in approximately 175 countries and territories. Revlon was founded in 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the “L” in the REVLON name. Starting with a single product nail enamel unlike any before it – the three founders pooled their meager resources and developed a unique manufacturing process. Using pigments instead of dyes, Revlon was able to offer to woman a rich looking, opaque nail enamel in a wide variety of shades never before available. In only six years the company became a multimillion-dollar rganization, launching what was to become one of the most recognized cosmetics names in America and around the world. Revlon brands includes: •Colour stay •New complextion •Revlon age defying •Almay •Ultima •Flex •Charlie Revlon includes various ranges of face products, lip colours, eye make up, nail paint, hair colour, fragrances. Range in lipsticks- •Super lustrous lip gloss •Lip glide •Skin light lipcolour •Moisturous CHAPTER:2 DATA SOURCES RESEARCH METHODOLOGY The objective of the project is to study the popularity of Lakme amongst Loreal, Revlon, Maybelline and Avon. In order to accomplish this objective a thorough analysis of the roducts of the company is done. In order to get a thorough knowledge of the products the various brochures have been consulted. Also some information from Internet has been gathered to get a clear picture. Then to find and analyze the actual behavior, a survey research to know the perception and attitude of consumers has been done which covers the region of Delhi. In this whole method, the whole research objective has been undertaken so that maximum information could be gathered from the available resources. DATA COLLECTION SOURCES Data collected for the purpose of study: PRIMARY DATA •SECONDARY DATA PRIMARY DATA SOURCES: •PERSONAL INTERVIEWS(questionnaires) SECONDARY DATA SOURCES: •BROCHURES •MAGAZINES •INTERNET CHAPTER:3 FINDINGS AND ANALYSIS Women in the Delhi region were interviewed and findings were interpreted after securing their views on Lakme India Ltd. BRAND AWARENESS: Respondents had the maximum brand awareness of lakme followed by Revlon, Maybelline, Avon and L’oreal respectively. PRICE: Lakme products are most reasonably priced followed by avon, maybelline, revlon and loreal respectively. All the consumers who were interviewed for the purpose of ollecting primary data agreed to the view that products of lakme India are priced comparatively lower than products of other multinationals. Any middle-class Indian Woman can afford lakme’s products easily but thinks twice before buying products of other multinationals like Revlon, Loreal, Avon, and Maybelline. COLOR RANGE: Recently lakme India has introduced matte lipsticks in its range of cosmetics to compete with multinationals, earlier the company has glossy ones. Most of the women interviewed are satisfied with the new additions in the lakme portfolio. Rather many of hem prefer them to products of Avon, Loreal etc. L’Oreal scores the highest in the color range followed by Revlon, Maybelline, Lakme and Avon. Most reasonably Priced Brand Lakme 55. 5% Maybelline 6. 7% Revlon 2. 3% Avon 35. 5% Loreal 0% BRAND PREFERNCE: Maybelline, Revlon and Lakme stand in stiff competition to each other however lakme leads. Most preffered Brand According to the Questionnaire Survey Lakme 33. 3% Maybelline 25% Revlon 25% Avon 12. 5% Loreal 4. 20% Brand having the Widest Colour Range Lakme 24. 5% Maybelline 31. 1%
Revlon 24. 5% Avon 17. 7% Loreal 2. 2% PROMOTIONAL SCHEMES: On this point lakme has not able to come up to the mark of other companies like Avon, Maybelline. Women interviewed agreed that multinationals have got better fragrances than the lakme though lakme is continuously upgrading its portfolio. Lakme has introduced a new range of perfumes for the new Indian women who are more outward looking and confident. Company has introduced a new advertising campaign on television and print media where the new upcoming star and odel Indrani Mukherjee has been featured endorsing the brand. Being an ideal for young ladies, sales have shooted up tremendously. This has created a mass appeal for the products of the company in the younger lot of women. Most of the women have appreciated this move of the company. AVAILABILITY: The products of lakme are available throughout the country, which is a major strength of the company. The large distribution network of lakme has assisted the brand and its image. The products are available at any medium local cosmetic shop, which provides convenience in buying. TEXTURE: The texture of lakme lipsticks is good except the liquid lakme lipsticks. •Maybelline and Revlon stand in close competition texture wise and the respondents have rated their texture better than lakme lipsticks. PACKAGING: L’oreal scores on the packaging front followed by Maybelline, Revlon, Lakme and Avon respectively. So lakme looses on the packaging front. Market Share Lakme 40% Maybelline 14% Revlon 19% Others 27% SWOT ANALYSIS STRENGTHS WEAKNESSES •Large distribution Network •Reasonable Price •Most preferred brand •Less emphasis on sales promotion activities •Lesser variety in colors. OPPORTUNITIES THREATS Growing market •Increasing Consumer Awareness •Rising consumer interest in multinational brands. CHAPTER:4 CONCLUSION After a series of interviews with the customers using the lakme products and after studying the marketing strategy of the company in regard to competition, it can be said that lakme is here to stay for long. The company is under the umbrella of Hindustan lever ltd. which itself is a big name. The backing of HLL is enough for the company to go on producing high quality cosmetics to suit every need of the Indian woman. Also the company has adopted a new marketing strategy hereby the company has started organizing lakme India fashion week, which has gained a lot of publicity for the company. Any other multinational cosmetic company has not been able to gain so much of publicity for itself. This promotion strategy of the company has been able to retain its market share, which is largest in the country. Also the products are priced very competitively in regard to competition and this makes them affordable for the average Indian middle-class women. This way company has been able to gain a large market share for itself.
Distribution of products is also no problem to the company as there is a backing of HLL which itself has a very strong distribution network. The products of lakme are available at every outlet in the country so that most of the Indian women can have access to the products. So at last it can be said that with a perfect marketing mix the company is able to retain a large market share for itself and there is a long way ahead. CHAPTER5 RECOMMENDATIONS ?Lakme should introduce a wider range of gloss, wet shine, and trendy lipsticks. ?The packaging of Lakme products should be more ttractive. ?Further it should also focus on better texture of its liquid lipsticks. ?It should also introduce different flavors in lipsticks. ?It should introduce more variety of colors taking into consideration various seasons and occasions e. g. lighter and soothing colors for scorching summers in India. ?It should introduce lipsticks in smaller sizes and thus pricing them at lower rates. APPENDIX QUESTIONAIRE Q1. Do you use lipsticks? Yes No Q2. If yes how often? Daily Occasionally Q3. How often do you purchase lipstick? Monthly bi-monthly six monthly occasionally
Q4. Out of these which brands are you aware of? Lakme loreal revlon avon maybelline Q5. Which is your most preferred brand? Lakme loreal revlon avon maybelline Q6. Have you used lakme lipstick? Yes no Q7 How did you find it? Good fair bad excellent Q8 suggestions for improvement in lakme lipstick Q9. Which is your second best preference? Lakme loreal revlon avon maybelline Q10. What are the parameters for deciding the best brand? (rank 1-5) Texture price colour range vitamin enriched romotional schemes Q11. Do you think that your brand choice is reasonably priced? Yes no Q12. Which brand is having the widest colour range? Lakme loreal revlon avon maybelline Q13. Which is the most reasonably priced brand? Lakme loreal revlon avon maybelline Q14. Which texture do you use in lipsticks? Matte gloss Q15. Rank the following brands(1-5) Lakme loreal revlon avon maybelline NAME : AGE GROUP 15-20 21-25 26-30 31-35 36-45 46-55