Overview of Cosmetic Industry

India Cosmetic industry is valued at $950 Million.Growth Rate – 15-20% p. a.

Medium and low priced category products accounts for 90% of the market.

The Men’s personal care market is valued at $165 million with Gillette as a market leader.

Market Structure of Cosmetic Industry• Colour Cosmetics (Foundation, Compact, Eye Make up, Lipstick, Nail Enamel, Blush On)

– Fastest growing segment– Market Value: $ 60 million– Growth Rate: 25-30%– Penetration Level: 38.7% in Urban areas & 12.6% in Rural areas – Key Market Player: Lakme, L'Oreal, Revlon, Lotus, Maybeelene

• Deodorants and Perfumes– Market Value: $ 34 million– Growth Rate: 19.87%– Penetration Level: 64.3% in Urban areas and 18.7% in Rural areas– Key Market Player: AXE, Ferrari, Cinthol, Denim, Lacoste, Nina Ricky, Fa etc.

• Talcum Powder– Market Value: Rs 3.5 billion– Growth Rate: 12% per annum– Penetration Level: 45.4% in Urban area & 25.2% in Rural areas.– Key Market Player: Ponds (with 70% market share) and Johnson & Johnson (with 15% market

share)

21%

63%

5%4%

7%

Age

18-21 22-25 26-30 31-35 above 35

9%4%

14%

73%

Occupational

House wife Others Professionals Students

59%11%2%

24%

4%

Monthly Expenditure

0-500 1000-1500 1500-2000 500-1000 Nil

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Looking Good and Feeling Great

A source of radiant beauty’

“Nothing makes a woman more beautiful than the belief she is beautiful.”

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HISTORY

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Started in 1952 by Simone Tata

50-50 joint venture with Hindustan Lever Limited in 1995 to form Lakme Lever

named after the French opera Lakmé

By 1999 Sold to mutinationalCompany Hindustan Liver Limited

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Welcome To LAKME Beauty Salon

WORLD - CLASS EXPERTISENOW CLOSE AT HAND

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PRODUCTS

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PRICES

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Skin Care: Free Spirit Floral Bliss Facial & Happy Hour facial …Rs. 1800-2000*

Bridal Make Up… Rs.5100-9350*.

Hairnext Indulgences… Rs.450 to Rs.700*

Spirit Orchid Hand Facial… Rs. 275-325

Spirit Orchid Foot Facial… Rs. 350-400Made by – Group 1

PLACES

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Lakme Beauty Salons were established in Mumbai, Delhi, Hyderabad, & Chennai thirty years ago.

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88 beauty salons across India.

PROMOTION

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Department stores, specialty stores and chain department stores, such as Shoppers’ Stop, VAMA, Westside, Bombay Stores .

Direct Sales Direct Mail/TV/Print

Free Standing Stores

Health Food Stores

Saloons

Fashion Week

Banners

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New Lakme Beauty Salon Rewards Programme

Lakmeindia.com offers various features on beauty and style

“Shop at our alliance outlets to enjoy exclusive discounts and service benefits. And the benefits include lifestyle products, health care, electronics and holidays among others.”

COMMUNICATION MODLE:( AIDA)

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PEOPLE

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The parlour has beauticians who have been trained by Lakme.

The staff is required to attend classes conducted by doctors and cosmetologists and every six months their skills are polished further.

Greeting with a smile

Enthusiastic

Quick Response

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PHYSICAL

EVIDENCE

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Lakme Beauty Salons were established in Mumbai, Delhi, Hyderabad, & Chennai thirty years ago

In addition to leveraging Unilever's worldwide expertise, Lakmé also partners with the leading technology and trendsetter for global beauty brands, the Milan-based Intercos Italia as well as Paris-based Fiabila.

Spacious

Fully- Air conditioned

Environment full of fragrance and Freshness

Cleanliness

10+ clients are handled at an instant

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PROCESS

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Proper attention towards each and every customer

Using genuine and appropriate branded products

Maintaining the morning freshness throughout the day

Refreshments for their customers

Proper assistance at the time of taking appointments

Hospitality of premium standards

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SWOT Analysis

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STRENGTH

High quality manpower resources

Brand Name

Vast range of products and services

Distribution Channel

Unilever global technology capability

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WEAKNESSESHigh Services costs

Use of Hard Chemicals

OPPORTUNITIESBrand growth through increased consumption depth

Growth in Business of beauty saloons

Lakme Beauty Training academy in Mumbai, Chennai and New Delhi.

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THREATS

Aggressive price competition from local and multinational players

Availability of cheap beauty products

Reports regarding presence of LEAD in lipsticks

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Reducing service cost by increasing SALES.

Pricing Policy

Marketing their Product – Stating Lead Free.

Grabbing Industry Growth by banking on their core competencies.

Opening up of more saloons in Cosmopolitan Cities.

PRESENTATION BY:Nishant Varshney (13)Nishant Varshney (13)Nishant Kumar (22)Nishant Kumar (22)Anna Jain (51)Anna Jain (51)Megha Singh (53)Megha Singh (53)Heena Vyas (57)Heena Vyas (57)Aakash Minocha (60)Aakash Minocha (60)Made by – Group 1