HUL

Lessons in Marketing Excellence

Lakme Lever

Team EKATVA Ravindra Rai rairavindra@gmail.com 9619083690 Rishu Batra batrarishu@gmail.com 9833926770 Ritika Arora ritikaarora19@gmail.com 9619487739

Executive Summary

The Opportunity

The Indian middle class, estimated to be 300 million people is the fastest growing section of society and if the current trends continue, Indian per capita purchasing power parity will significantly increase from 4.7 to 6.1 percent of the world share by 2015.

With the average household disposable income expected to reach 3.2 lakhs by 2025 at a CAGR of 5.3% per annum, this collective group of strivers and seekers is a potential goldmine waiting to be discovered. The increased focus on looking good and the introduction to western fashion trends is drawing women in droves towards the wellness centres.

Objectives

To identify the key levers for expanding the footprint into the lower LSMs to cater to the

potential market To come up with the most appropriate model for expansion in terms of company owned and

franchise and the geographical spread To come up with a feasible and attractive customer service proposition and service mix

based on the current positioning of Lakme products, salons and studios To recommend whether Lakme Salon should extend itself or introduce a new brand To suggest methods of scaling training and marketing methods To build a cost efficient and customer friendly business model

Market research & analysis

Questionnaire based survey was conducted across the urban areas to come up with relevant primary data. This together with the secondary data collected was analyzed for determining the sources of awareness, brand imagery and key levers of business strategy.

Suggestions and Recommendations

To tap the potential of the market and cater to the needs of an aspiring section of population

Lakme should launch a new range of salons targeted at the lower LSM. Positioning in line with Image of Lakme Premium Brand delivering Trendy and Quality

services at Economical Cost. The expansion should initially be based on COCO model with slowly moving to hybrid model

as the business scales up. Services should be customized and bundled to create a lucrative package for the customer.

Implementation Strategy

Introduce a new range of outlets named Lakme Next which align with the brand personality

of Lakme, at the same time provide economical and customized services. Identify the best possible locations based on factors like realty rates, level of aspiration,

affinity and ability to spend and interaction with metros. To address the manpower demand due to the expansion, training and development

modules will be enhanced further. Promotional strategies to include both ATL marketing (promoting through radio, television

and print media) and BTL (collaborating with local businesses, road shows, interactive opportunities in malls and colleges etc.)

Cost saving through Lower Training Cost, Lower Investments (Tier II & Tier II cities), Lower Infrastructure Requirements.