LAKME

Introduction

• The Name Lakme is borrowed from “Lakshmi”, the name of Priestess.

• The rate is high in Skin Care segment as compared to color cosmetic.

• Lakme has a range of beauty products to offer it’s consumers.

About The Company

• Lakme is an indian brand of cosmetics found by Hindustan Unilever in 1973.

• Lakme started as a 100% subsidiary of Tata Group.• Tata entered in 50:50 joint venture with Hindustan

lever limited in 1995.• In 1998 Tata sold off their stakes in Lakme Lever

to Hindustan Lakme Lever for 200 crore.

Product Range of Lakme

• Professional Kit

• Skin Care Solutions

• Lakme Saloons

STP Analysis

Segmenting Segmenting is the process of dividing the market into segments

based on customer characteristics and needs. The main activity segmenting consists of four sub activities.

These are:1. determining who the actual and potential customers are2. identifying segments3. analyzing the intensity of competitors in the market4. selecting the attractive customer segments.

Targeting After the most attractive segments are selected, a company should

not directly start targeting all these segments -- other important factors come into play in defining a target market. Four sub activities form the basis for deciding on which segments will actually be targeted.

The four sub activities within targeting are:1. defining the abilities of the company and resources needed to enter

a market2. analyzing competitors on their resources and skills3. considering the company’s abilities compared to the competitors'

abilities4. deciding on the actual target markets

Positioning When the list of target markets is made, a company might want

to start on deciding on a good marketing mix directly. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. In the process of positioning the company:

1. identifies the differential advantages in each segment 2. decides on a different positioning concept for each of these

segments.

Beautification needs are not only for women in their adult age but teenager’s girl too have it. The brands known who will take care of you and your beauty needs, which can be evident from its catch phrases “on top of the world” and another is “source of radiant beauty”

POSITIONING STATEMENT

Lakme approached with Elle18 in early 1998. It promoted as "Young girl who breaks the rules and loves to have fun.

 This positioning statement demonstrated young girls who anticipated the image of trying to be unusual and "cool".

SEGMENTATION Geographic Area: Metropolitan cities and town

Company has targeted metropolitan cities and town because of population, consumer knowledge about the product is considerable and towns are upcoming business places.

Behavioral Occasions: Going out regularly (schools, college and parties)

User status: Regular usageAttitude towards the product: necessary part of everyday accessories.Benefits: develops beauty, exceptional colors, good quality ingredients, atmosphere friendly packaging.

SWOT Analysis of LakmeStrengths  

• Cost advantage• High R&D• Innovation• Loyal customers• Market share leadership• Strong brand equity• Pricing• Unique products

Weaknesses 

• No online presence

• Ubiquitiouegory, products, services

Opportunities 

• Emerging markets and expansion abroad Online• Product and services expansion

Threats 

• Competition

• Lower cost competitors or imports

• Product substitution

Competitors of Lakme

Major Multinational Companies:

• REVLON• YARLEY• GARNIER• L’OREAL• PONDS

Reasons for preference to Lakme

• Indian Brand

• Less expensive

• More GoodWill or Reputation

INSPIRATION For Using Products

According to significant change in market distributional Channel in Cosmetic Products, Distribution Places Are:

• Hyper Market

• Super Market

• Departmental Store

Distribution Channel

Co-Branding and Alliances

Changes Require In LAKME

Re-Branding

Lakme is donning a new makeover.

Lakme-Lever believe that their salon business can boost the Lakme brand's visibility across the country. The salon concept flows very well into Lakme's brand

equity.  Lakme is not directly investing in the business. It is

expanding its salons through several franchisees across the country. Lakme have just signed up with the Taj

Group of Hotels to be our franchisee.

Recommendations for Future• Promotions Beyond Fashion Week

• The Brand should not loose its focus from Cosmetics.

• For vast reach unlikely “ Some sort of an alliance or co branding with Salons that already exist may be a better strategy”.

• The general perception is that company-owned salons are expensive.Though Lakme Beauty Salons are reasonably Priced,it has not been communicated well enough.