A

Minor Project Report

On

“A Study of Marketing strategies of LAKME”

In partial fulfillment for the award of the degree of Bachelor of

Business Administration (BBA Batch 2015-2018) of

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

Under the Guidance of: Submitted by:

Dr.Bhawna Bhatnagar Bhavana
(Faculty Guide) 03415501715

NEW DELHI INSTITUTE OF MANAGEMENT

TUGHALAKABAD INSTITUTIONAL AREA
NEW DELHI – 110062

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 ACKNOWLEDGEMENT

I take this opportunity to express my heartiest gratitude to New Delhi Institute of Management
for permitting me to undertake this research and supporting me during this research and
otherwise also.

I would like to thank Dr.Bhawna Bhatnagar who not only played the role of my philosopher
and guide but also mentored me at every stage of my project work. I would like to extend my
hearty thanks to entire faculty members of BBA department for their constant cooperation and
support to take decision during the course of my research. I would also like to thank my parents
for their support and blessing without which this project could not have been completed. Indeed I
shall remain ever grateful to them.

I am also thankful to college library and computer laboratory management staff for their constant
support.

The experience I gained during this research project is of immense importance in the
academically and more on professionally.

Bhavana

03415501715

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 CERTIFICATE

I hereby certify that this project report entitled “A Study of Marketing Strategies of
“LAKME” is based on an original project study conducted by Bhavana under my guidance.
This has not formed basis for the award of any degree/diploma of this institution or any other
University.

Dr. Bhawna Bhatnagar

(Faculty Guide)

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 TABLE OF CONTENT

SNo. PARTICULARS PAGE No.

1.
Ch-1: Introduction to the study

1.1 Brief overview of study

1.2 Objectives of the study
1.3 Scope & significance of the study
1.4 Limitations of the study

2 Ch-2: Research Methodology

2.1 Introduction
2.2 Data collection
2.2.1 Primary data
(Sampling Method &Sampling Size)
2.2.2 secondary data
2.3 Presentation tools used

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3 Ch-3: Industry Overview

3.1 Introduction
3.2 Trends
3.3 Major player
3.3.1 REVLON
3.3.2 AVON
3.3.3 VLCC
3.3.4 ORIFLAME
3.3.5 Maybelline
3.3.6 L'oreal
3.4 Ranges
3.4.1 lakme absolute
3.4.2 lakme 9 to 5
3.4.3 lakme eyeconic

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 Ch-4: Company Overview
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4.1 Introduction
4.2 Achievements
4.3 Make up types
4.4 Organization structure
4.5 Achievements

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Ch-5: Theoretical Perspective
5.1 Customer satisfaction through 4P’s of
marketing mix:-

1.Product
2.Price
3.Promotion
4.Place distribution

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Ch-6 Findings and analysis

6.1 General Findings

6.2 Findings based on questionnaire responses

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Ch-7 Conclusion and recommendations
7.1 Conclusion
7.2 Suggestions

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INTRODUCTION

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 BRIEF OVERVIEW OF STUDY

This report is on the company Lakme. It is the global leader in cosmetics. They have 4 key areas
of expertise − hair care, skincare, make-up and fragrances. There is a huge motive behind the
study of Lakme. The study will help us to understand the operations which are carried out by
Lakme. The operations such as, business marketing strategies, business plans of company at a
glance, business structure, management and operating structures, competitors position as per this
company, business development, discussion of business strategies, SWOT analysis to understand
the different pros and cons of the company, so as to report properly to operate effectively and
deal smartly .This study offers a comprehensive analysis of the organization, its business
segments, and competitors. It analyzes the business and marketing strategies adopted by the
company, to gain a competitive edge in the industry. The profile also evaluates the strengths of
the company and the opportunities present in the market. This study presents the key facts &
figures, business description, products & services offered and corporate timeline of the company.
It involves analysis of the company at three levels – segments, organizational structure and
ownership composition. Both business and geographic segments are analyzed along with their
recent financial performance. It further discusses the major subsidiaries of the company and the
recent merger & acquisitions. It also examines the significant developments and milestone that

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have taken place in the company. It is a form of news analysis where the most critical company
news is discussed. Also the factor Financial Performance included in this study. It discusses the
most recent financials of the company and also compares the historical sales & income figures
with the current and projected figures.

The objective is to evaluate the financial health of the company. The analyst opinion and stock
performance help anyone in evaluating the performance of the company from an investor’s
viewpoint.

The Lakme Group is the world's largest cosmetics and Beauty Company. Lakme is
an Indian brand of cosmetics, owned by Unilever and run by CEO Anil Chopra. Lakme started as
a 100% subsidiary of Tata Oil Mills, part of the Tata Group; it was named after
the French opera Lakme, which itself is the French form of Lakshmi, the goddess of wealth, also
renowned for her beauty. Indian cosmetic Lakme was started in 1952, famously because the then
Prime Minister, Jawaharlal Nehru, was concerned that Indian women were spending precious
foreign exchange on beauty products, and personally requested JRD Tata to manufacture them in
India. Simone Tata joined the company as director, and went on to become its chairman.

In 1996 Tata sold off their stakes in Lakme Lever to HLL, for Rs 200 Crore (45 million US$),
and went on to create Trent and Westside. Even today, when most multinational beauty products
are available in India, Lakme still occupies a special place in the hearts of Indian women.

Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all
over India. Now HUL (Hindustan Unilever Limited) has about 110 salons all over India
providing beauty services. Lakme' has been ranked as 47th most trusted brand in India by The
Brand Trust Report. The company is the title sponsor for Lakme Fashion Week (LFW) a bi-
annual fashion event which takes place in Mumbai.

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  OBJECTIVES:
• To study the marketing strategies of Lakme cosmetics.
• To study the 4ps of marketing.
• To study Lakme market shares in cosmetic industry in comparison to other brands.
• To know and analyze the level of satisfaction of customers with regard to Lakme as one
of the major players in Cosmetic industry
 To understand the relationship between customers (who demand the product) and the
suppliers or manufacturers (who produce the product).

 SCOPE OF THE STUDY:

This study uncovers the impact, utility and effectiveness & efficiency of marketing strategies of
Lakme on the success of cosmetic industry. A special emphasis is laid down on Lakme
cosmetics.
The project aims at analyzing the marketing strategies with
respect to the Lakme Products. This project helps us to know how powerful is the
brand name of Lakme Products that compels the buyers to buy its products from this brand .This
project may be useful to:
 Buyers
 Researcher
 Student

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  LIMITATIONS:

Geographical scope of the study was limited to a small area, which may not represent the whole
sector of India. Size of the sample is 50, which is, of course small in comparison to entire
population.
 Due to limitation of time only few people were selected for the study. So the sample of
consumer was not enough to generalize the finding of the study.
 There can be many interpretations and explanation to the data collected. This is empirical
study and the research and the research provides the explanation as understood by the
researcher only.
 The source of data for the study was primary data with the help of self-administered
questionnaire. Hence, the chances of unbiased information are less.

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 RESEARCH
METHODOLOGY

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RESEARCH METHDOLOGY
The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interviews, surveys and other
research techniques, and could include both present and historical information.

A detailed outline of how an investigation will take place. A research design will typically
include how data is to be collected, what instruments will be employed, how the instruments will
be used and the intended means for analyzing data collected.

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  COLLECTION OF DATA

 PRIMARY DATA
The primary data are those which are collected afresh and for the first time, and thus happen
to be original in character. We collect primary data during the course of doing experiments in
an exploratory research. Here the Primary data will be collected by means of preparing a
questionnaire and getting it filled by a 50 sample size. These questionnaires will help in
drawing conclusions about the case.
Sampling method and sample size: Keeping in view the time constant, cost and accuracy, it
has been decided to have a sample size of fifty.

 SIZE OF SAMPLE:
This refers to the numbers of items to be selected from universe to constitute a sample. An
optimum sample is one, which fulfills the requirements of efficiency, representativeness,
reliability and flexibility.
Sample Size: - 50 Customers

 SAMPLE DESIGN:
A sample design is definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the samples.
Sample Design – 50 Customers

o SAMPLE TYPE

 CONVENIENCE SAMPLING:
When population elements are selected for inclusion in the sample based on the case of
access; it can be called convenience sampling.

 QUESTIONNAIRE METHOD

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For the collection of primary data I used questionnaire method. A formal list of questions,
which are to be asked, is prepared in a questionnaire and questions are asked on those bases.

 SECONDARY DATA
Secondary data means data that are already available i.e. they refer to the data which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data then he has to look into various sources from where he can obtain them. In this case he
is certainly not confronted with the problems that are usually associated with the collection of
original data. Secondary data may either be published data or unpublished data.

 TOOLS OF PRESENTATION
 Pie Chart
 Tables

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INDUSTRY
OVERVIEW

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  PAST, PRESENT & FUTURE TRENDS IN MAKEUP
Cosmetics (colloquially known as makeup or make-up) are care substances used to enhance
the appearance or odor of the human body. They are generally mixtures of chemical compounds,
some being derived from natural sources, many being synthetic.

In the U.S., the Food and Drug Administration (FDA) which regulates cosmetics, defines
cosmetics as "intended to be applied to the human body for cleansing, beautifying, promoting
attractiveness, or altering the appearance without affecting the body's structure or functions."
This broad definition includes, as well, any material intended for use as a component of a
cosmetic product. The FDA specifically excludes soap from this category.

The word cosmetics derives from the Greek κοσμητική τέχνη (kosmetikē tekhnē), meaning
"technique of dress and ornament", from κοσμητικός (kosmētikos), "skilled in ordering or
arranging"] and that from κόσμος (kosmos), meaning amongst others "order" and "ornament"

Archeological evidence of cosmetics dates at least from ancient Egypt and Greece. According to
one source, early major developments include:[1]

 Castor oil by ancient Egypt as a protective balm.

 Skin creams made of beeswax, olive oil, and rosewater described by Romans.
 Vaseline and lanolin in the nineteenth century.
 Nivea Creme in 1911.

The Ancient Greeks also used cosmetics. Cosmetics are mentioned in the Old Testament—2
Kings 9:30 where Jezebel painted her eyelids—approximately 840 BC—and the book of Esther
describes various beauty treatments as well.

Cosmetic use was frowned upon at many points in Western history. For example, in the 19th
century, Queen Victoria publicly declared makeup improper, vulgar, and acceptable only for use
by actors. Of the major cosmetics firms, the largest is LAKME, run by Unilever and owned by
CEO Anil Chopra.

Beauty products are now widely available from dedicated internet-only retailers, who have more
recently been joined online by established outlets, including the major department stores and
traditional bricks and mortar beauty retailers.

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Although modern make-up has been used mainly by women traditionally, gradually an
increasing number of males are using cosmetics usually associated to women to enhance or cover
their own facial features.

 PRESENT & FUTURE TRENDS IN MAKEUP

Values in clients’ personal lives have changed and that leads to a change in how they consume.
People are spending more time with friends and family, and are focusing on what they consider
to be the more important things in life. Consuming for the sake of consumption is no longer a
way of life. Cosmetic consumers are demanding more quality products with multiple benefits,
and what is inside the package will soon become more important than the package itself.
Although packaging and presentation will always be very important, it will not be enough to hold
a client, and it will not be the foundation upon which to build a business.

To predict how and where mineral makeup will grow in the future, it is important to revisit its
history and evolution. Traditional makeup was initially used to add color accents to the face, and
after a while, it was used to cover up imperfections. Mineral makeup brought the evolution to not
only color and cover, but also to protect and enhance. Mineral makeup today is almost as much
about skin care benefits as it is about the color and coverage.

That is not to say that mineral makeup is intended to replace skin care; it is meant to enhance it.
The mineral makeup category must continue to offer innovative and exciting formulations in
order to lead the cosmetic industry. Currently, most mineral formulas are cosmetic-grade only,
but the future could bring drug formulas right into color formulas. The beauty of this is that the
consumer is more likely to use color more consistently than skin care. The more a person uses
products with beneficial ingredients, the better the results will be.

Following are the coming trends for mineral makeup.

 Face color formulations. Formulations for the face will do more than just correct uneven
skin tone; they will address texture issues, such as large pores, scars and pitted skin. The
coverage will camouflage without a heavy look or feel. Look for products that will
address issues such as discoloration; not just covering it, but also reversing its symptoms,

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 whether red (rosacea and acne), blue (dark circle and bruising), brown (hyper
pigmentation) or white (hypo pigmentation).

 Eye color formulations. Formulations for the eyes will still help make the eyes look
larger and brighter, but will also address issues such as wrinkles, dark circles, sagging,
and thinning eyelashes and eyebrows. Look for concealers and eye shadows that have
powerful ingredients included directly in the color formula.

New pharmaceutical skin care formulations are offering solutions for longer and darker
eyelashes. This will create resurgence in the sale of mascara and eye liner, as well as other eye
color products in general. In particular, the category of tubular mascara will skyrocket.

Tubular mascara formulas use a flexible copolymer instead of traditional oils and waxes and can
literally be built on top of the lashes to add even more length. Tubular mascara offers a water-
resistant formula without compromising the lashes; it is easily removed with just warm water and
pressure. Women pay approximately $120 per month for the upkeep of longer, darker lashes, and
they will demand a mascara formula that will not break them down. One weakness of the tubular
mascara is that it does not offer the thickening power of traditional oil and wax formulas. Look
for a product that does both in one application. So far, most options require a two-step process to
enjoy both of these benefits.

 Lip color formulations. Formulations for the lips have already addressed long-wearing,
plumping and moisturizing issues. The one area that needs to be seriously examined is
the long-term damage that high-shine lip glosses are doing to the lips. Lip melanomas
have increased dramatically during the past few years, and wearing high-shine lip gloss is
like wearing a magnifying glass over the lips. To counteract this danger of sun damage,
future formulas should include protective ingredients, such as zinc and titanium dioxide.
Chemical sunscreens on the lips will raise the heat factor on the lips and exacerbate
conditions, such as canker sores.
 Sun care formulations. Formulations for sun care will continue to improve, and the
category of powder sunscreen has brought sun care formulas to a new level. The heat

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 factor of chemical sunscreens is important because heat can exacerbate skin conditions,
especially acne and hyper pigmentation.

Clients are more ingredient-savvy than ever and are aware of which ingredients work. They have
raised their standards and now must have real results from their cosmetic products. They expect a
product to offer multiple benefits. The consumer is still spending money on cosmetic products,
but is looking for value; it is not so much about price as it is about value. If a product delivers
real results and can do double-duty, it will be successful. That is why authentic mineral makeup
formulas will still lead the cosmetic industry as a major force.

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  MAJOR PLAYERS & THEIR MARKET SHARE

 REVLON

Revlon was founded in the midst of the Great Depression, 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 — a new type of nail enamel — the three founders pooled
their resources and developed a unique manufacturing process. Using pigments instead of dyes,
Revlon developed a variety of new shades of opaque nail enamel. In 1937, Revlon started selling
the polishes in department stores and drug stores. In six years, the company became a
multimillion dollar organization. By 1940, Revlon offered an entire manicure line, and
added lipstick to the collection. During World War II, Revlon created makeup and related
products for the U.S. Army, which was honored in 1944 with the Army-Navy "E" Award for
Excellence.

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  AVON

Avon Product is a multi-level marketing company. The company's CEO is Sherilyn S. McCoy,
who was appointed to that position in April 2012.The former CEO, Andrea Jung, became the
executive chairman of the board. Jung was the longest tenured female CEO among Fortune 500
companies.

Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of
men) and brochures to advertise its products.

In addition to its corporate pursuits, the Avon corporation is involved in philanthropic causes.
The Avon Foundation for Women, public charity, is the largest corporate-affiliated
philanthropy for women in the world. Avon founded the Avon Foundation for Women with its
first grant, a $400 scholarship, in 1955. Avon was committed to helping women achieve their
highest potential of economic opportunity and self-fulfillment by empowering them through
scholarships and support for other forms of educational and occupational training and
advancement. Women's empowerment continued to be the focus through the early 1990s when
Avon began to increase its philanthropy with a new emphasis on breast cancer; the Avon
Foundation still awards scholarships for Avon Sales Representatives and their families, as well
as for the children of Avon associates. The Avon Foundation is currently focused on two key
causes: breast cancer and domestic violence. The Foundation approved $38 million in grants in
2011. In 2012, Avon launched its first global fundraising scheme. The symbol of this fundraising
action is the Women's Empowerment Bracelet.

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  VLCC

The guiding image of VLCC is ‘Transforming Lives’, which refers to the transforming self,
transforming future and spreading happiness. These are the three pillars, which are VLCC’s
hallmarks which were established in 1989 by Mrs. Vandana Luthra. One of the above mentioned
hallmarks, the foundation has continued to grow as a leading beauty brand. VLCC, a re-defining
wellness business has revolutionized the beauty industry as well as acquired the position of
largest beauty brand and heath in India. VLCC today is the solitary mammoth competitor in the
industry with a Pan India presence of around 225 outlets in approximately 75 cities, 1 outlet in
Katmandu, Omen, Bahrain and 8 outlets in UAE.

The VLCC is a ‘Super brand’ serving as a sunshade for its other products such as VLCC Health
Care, Personal Care and Institute of Health, Management and Beauty. Its services offer holistic
wellness, traditional therapies and marrying a scientific research. Having served more than
millions of consumers since its beginning, VLCC, at present, has achieved a start status all over
the world. It is India’s most preferred and largest Slimming, Health and Beauty brand.

VLCC – Vision

To provide better quality life to everyone, by pursuing and adopting socially and ethically
significant business practices, which are aimed at shaping up the confidence of people and
making Beauty Care, Health and Fitness available to each and every section of the society.

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  ORIFLAME

Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden by

the brothers Jonas AF Jochnick and Robert AF Jochnick. The company sells skin care, cosmetic
products and related products through an independent sales force of over 3 million people.

Oriflame Cosmetics is an international beauty company selling direct. The company began
operations in 1967 in Sweden and has today a presence in over 60 countries worldwide. The
company has over 3.5 million "consultants" worldwide with annual sales of €1.5 billion.
Oriflame has been listed on NASDAQ OMX Stockholm since 2004.

The brand got its name from the royal banner of medieval France which was unfurled only on
the battlefield and accompanied by the war cry Montjoie Saint Denis Oriflame gained its
first UK consultant in 1970.

Oriflame is involved in several programs for example the "World Childhood Foundation", SOS
Children's Villages as well as in local small charities.

The company has been ranked 8.5 out of 9 in the Palm Oil Buyers’ Scorecard which is compiled
by the World Wide Fund and rates purchasers of palm oil on environmental sustainability.

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 MAYBELLINE

The Maybelline Company was created by a 19-year-old entrepreneur named Tom Lyle
Williams in 1915. Williams noticed his older sister Mabel applying a mixture of Vaseline
and coal dust to her eyelashes to give them a darker, fuller look. He adapted it with a
chemistry set and produced a product sold locally called lash-in-brow-line. Williams
renamed his eye beautifier Maybelline, in honor of his sister Mabel, who gave him the
idea. In 1917 the company produced Maybelline Cake Mascara, "the first modern eye
cosmetic for everyday use" and Ultra Lash in the 1960s, which was the first mass-market
automatic.[4

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  L'OREAL

In 1909, Eugène Paul Louis Schueller, a young French chemist of German descent,[7] developed
a hair dye formula called Auréale. Schueller formulated and manufactured his own products,
which he then sold to Parisian hairdressers. On 31 July 1919, Schueller registered his
company,[8] the Société Française de Teintures Inoffensives pour Cheveux (Safe Hair Dye
Company of France). The guiding principles of the company, which eventually became L'Oréal,
were research and innovation in the field of beauty. In 1920, the company employed three
chemists. By 1950, the team was 100 strong; that number reached 1,000 by 1984 and is nearly
20,000 today.

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  RANGES

 LAKME ABSOLUTE

Making face make-up a simpler yet foolproof experience, Lakme launches Lakme
Absolute Face Stylist – a high performance professional face make-up range that includes
Lakmé Absolute Face Stylist Concealer, Lakmé Absolute Face Stylist Foundation,
Lakmé Absolute Face Stylist Compact and Lakmé Absolute Face Stylist Blush Duos. The
new, break through and innovative combination of ingredients in each product promises
professional results with every application.

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  LAKME 9 TO 5

Lakmé 9 to 5 The Office Stylist Range consists of a wide collection for daily office wear
with subtle shades that require no touch-ups through the day, providing an impeccably styled
look and allowing a hassle-free transition from the desk to the office party.MARKET SHARE.

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  LAKME EYECONIC

Lakme has come out with two new “Eyeconic” range Products, a basic mascara and a kajal,
which I think each one

of us use on a daily basis. So, its a good call to come out with such products at such a great price
point of Rs. 199 for

the kajal and Rs. 250 for the mascara. One thing I absolutely love about these two is the appeal
they have in terms of the

packaging and the color and the name “Eyeconic” (remLAKME “eye-am” from Maybelline?).
This will be a hit with the

younger girls (I am 27, not so old though) and also a hitLAKME newcomers to makeup.

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 Market share as on 2016

BRAND MARKET SHARE (%)

LAKME 33.3

REVLON 22.76

LOREAL 20.56

VLCC 11.65

ORIFLAME 15.94

AVON 20.98

MAYBELLINE 25

Source: Business express

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 MARKET SHARE

MAYBELLINE LAKME
17% 22%

ORIFLAME
10%

REVLON
VLCC 15%
8%

AVON LOREAL
14% 14%

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COMPANY
PROFILE

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  COMPANY PROFILE

Lakme is an Indian brand of cosmetics, owned by Unilever and run by CEO Anil Chopra.
Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it was
named after the French opera Lakme, which itself is the French form of Lakshmi, the goddess of
wealth, also renowned for her beauty. Indian cosmetic Lakme was started in 1952, famously
because the then Prime Minister, Jawaharlal Nehru, was concerned that Indian women were
spending precious foreign exchange on beauty products, and personally requested JRD Tata to
manufacture them in India. Simone Tata joined the company as director, and went on to become
its chairman. In 1996 Tata sold off their stakes in Lakme Lever to HLL, for Rs 200 Crore (45
million US$), and went on to create Trent and Westside. Even today, when most multinational
beauty products are available in India, Lakme still occupies a special place in the hearts of Indian
women.

Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all
over India. Now HUL (Hindustan Unilever Limited) has about 110 salons all over India
providing beauty services. Lakme' has been ranked as 47th most trusted brand in India by The
Brand Trust Report The company is the title sponsor for Lakme Fashion Week (LFW) a bi-
annual fashion event which takes place in Mumbai.

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  Makeup types

Cosmetics include skin-care creams, lotions, powder, perfumes, lipsticks, fingernail and toe nail
polish, eye and facial makeup ,towelettes, permanent waves, colored contact
lenses, hair colors, hair sprays and gels, deodorants, hand sanitizer, baby products, bath
oils, bubble baths, bath salts, butters and many other types of products. A subset of cosmetics is
called "make-up," which refers primarily to colored products intended to alter the user’s
appearance. Many manufacturers distinguish between decorative cosmetics and care cosmetics.

Most cosmetics are distinguished by the area of the body intended for application.

• Face Primer, Come in various formulas to suit individual skin concerns. Most are meant to
reduce the appearance of pore size, prolong the wear of makeup, and allow for a smoother
application of makeup. Applied before foundation.

• Eye Primer, Used to prolong the wear of eye shadows on the eye as well as intensify color
payoff from shadows.

• Lip gloss g, is a sheer form of lipstick that is in a liquid form.

• Lipstick, lip gloss, lip balm, lip conditioner, lip primer, and lip boosters. Lip stains have a
water or gel base and may contain alcohol to help the product stay on the lips. The idea
behind lip stains is to temporarily saturate the lips with a dye, rather than covering them with
a colored wax. Usually designed to be waterproof, the product may come with an applicator
brush or be applied with a finger.

• Concealer makeup used to cover any imperfections of the skin. Concealer is often used for
any extra coverage needed to cover blemishes, or any other marks. Concealer is often thicker
and more solid than foundation, and provides longer lasting, and more detailed coverage.
Some formulations are meant only for the eye or only for the face.

• Foundation used to smooth out the face and cover spots or uneven skin coloration. Usually a
liquid, cream, or powder, as well as most recently, a light and fluffy mousse, which provides
excellent coverage as well. Foundation primer can be applied before or after to get a
smoother finish. Some primers come in powder or liquid form to be applied before

34
 foundation as a base, while other primers come as a spray to be applied after you are finished
to help make-up last longer.

• Face powder used to set the foundation, giving a matte finish, and also to conceal small flaws
or blemishes.

• Rouge, blush or blusher, cheek coloring used to bring out the color in the cheeks and make
the cheekbones appear more defined. This comes in powder, cream, and liquid forms.

• Contour powder/creams, used to define the face. It can be used to give the illusion of a
slimmer face or to even modify a person’s face shape as desired. Usually a few shades darker
than one’s own skin tone and matte in finish to create the illusion of depth. A darker toned
foundation/concealer can be used instead to contour to create a more natural look.

• Highlight, used to draw attention to the high points of the face as well as to add glow to the
face. It comes in liquid, cream, and powder form. Often contains shimmer, but sometimes
does not. A lighter toned foundation/concealer can be used instead to highlight create a more
natural look.

• Bronzer, used to give skin a bit of color by adding a golden or bronze glow. Can come in
matte, semi matte/satin, or shimmer finishes.

Mascara is used to darken, lengthen, and thicken the eyelashes. It is available in natural colors
such as brown and black, but also comes in bolder colors such as blue, pink, or purple. There are
many different formulas, including waterproof for those prone to allergies or sudden tears. Often
used after an eyelash curler and mascara primer. There are now also many mascaras with certain
components to help lashes to grow longer and thicker

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.

 MISSION:

 BEAUTY FOR ALL

For more than a century, Lakme has devoted itself solely to one business: beauty. It is a
business rich in meaning as it enables all individuals to express their personality gain self-
confidence itself and open up to others.

 BEAUTY IS A LANGUAGE

Lakme has set itself the mission of offering men & women worldwide the best cosmetics
innovation in terms of quality; efficacy & safety .It purses this goal by infinite diversity of
beauty needs and desires all over the world.

36
  ACHIEVEMENTS

Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and
sensuality. Thus, enabling her to realize the potency of her beauty.

Contemporary Indian beauty expert Lakmé continuously innovates to offer a wide range of high
performance and world class color cosmetics, skincare products, and beauty salons. Combining
international cosmetic technology with an in-depth understanding of the Indian woman’s needs,
Lakmé also offers its consumers a comprehensive beauty experience through its products and
services at the Lakmé Salons and Studios.

Key Facts

•Lakme was the country's first cosmetic brand to introduce make up to Indian women and
takes pride in being the expert on Indian Beauty for over 50 years.
•It is a complete beauty brand spanning colour cosmetics & skin care 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.

37
THEORETICAL
PERSPECTIVE

38
 THEORITICAL PERSPECTIVE:

 Marketing Mix refers to the ingredients or the tools or the variable which the marketer
mixes in order to interact with a particular market.
 “Marketing Mix is a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market”.
 Marketing mix is a term used to describe the combination o the four inputs which
constitute the core of a company’s marketing system: the product; the price structure; the
promotional activities, and the distribution system.
 Marketing mix represents the total marketing programmed of a firm. It involves decisions
with regard to product, price, place and promotion. Marketing mix is a blending of
decisions in the ‘4 Ps’.

39
Four major ingredients of marketing mix are:

 Product
A product is any good or service that consumers want. It is a bundle of utilities or a
cluster of tangible and intangible attributes. Product component of the marketing mix
involves planning, developing and producing the right type of products and services. It
deals with the dimensions of product line, durability and other qualities. Product policy of
a firm also deals with proper branding, right packaging, appropriate color and other
product features. The total product should be such that it really satisfies the needs of the
target market. In short, product mix requires decisions with regard to

 Size and weight of the product.

 Quality of the product.
 Design of the product.
 Volume of output.
 Brand name.
 Packaging.
 Product range.

40
Being the iconic brand that brought makeup to the faces of beautiful Indian women over 50 years
ago, Lakme has grown and developed with the times, creating a new and modern day image for
the Indian cosmetics market. They have managed to keep the brand affordable and reachable by
common people while also bringing the latest technology and trends to the forefront. They have
excelled in a whole range of products starting with their body lotions and creams to a vast range
of cosmetics and anti-ageing creams, catering to the needs and desires of women of all ages.

The Lakme Absolute collection brings forward a range of modern day cosmetics with highly
advanced technology and styling. Create the foundation of a great look with the Lakme Absolute
Mousse, which gives you a smooth finish and covers up all the prominent pores with ease. The
Absolute White Intense Wet and Dry Compact is a revolutionary three-in-one skin care regimen
that contains a formula, which restores the natural glow and also contains vitamin B3, which acts
as a fairness agent. The primers, illuminating foundation and mousse foundations make the
perfect base for your look. Accentuate your look with a dash of colour with some blush,
Eyeconic kajal or the epic gel addict eyeliner in different attractive shades.

A great way to make sure you have your basic 9-to-5 needs with you at all times is to invest in a
Lakme makeup kit which comes in a great combo pack with two options. The kit contains a
foundation, kajal and lip colour. You can choose from a liquid foundation combo or a compact
foundation combo. These kits are a good way to get your basics at a very affordable price. Carry
it with you at all times and you will always be prepared for a touch up at the office or a
transformation at the end of the day when you decide to hit up the town.

Lakme has a vast range of products for skin care, which includes moisturisers, sunscreen, anti-
ageing creams, cleansers and toners. Choose from a wide range of lipsticks, glosses and nail
varnishes to brighten up your day.

41
 Price

Price is an important factor affecting the success of a firm. Pricing decisions and policies
have a direct influence on sales volume and profits of business.
Price is, therefore, an important element in the marketing mix. In practice, it is very
difficult to fix the right price. Right price can be determined through pricing research and
test marketing.
Demand, cost, competition, govt. regulation, etc. are the vital factors that must be taken
into consideration in the determination of the price. Price mix involves decisions
regarding base price, discounts, allowances, fright payment, credit, etc.

42
 Promotion
Promotion component o the marketing mix is concerned with bringing products to the
knowledge of customers and persuading them to buy. It is the function of informing and
influencing the customer. Promotion mix involves decisions with respect to advertising,
personal selling and sales promotion. All these techniques help to promote the sale of
products and to fight the competition in the market.
No single method of promotion is effective alone and, therefore, a promotional campaign
usually involves a combination of two or more promotional methods. Growing
competition and widening market have made simultaneous use of more than one
promotional method all the more necessary. Combination of two or more methods in a
single promotional campaign requires an effective blending of promotional inputs so as to
optimize the expenditure on each.
Lakme promotions are done either by the way of advertisements on TV by bollywood
Celebrities or by models. The other way is through the launch of new products by great
Personalities.

43
 Place (Distribution)
This element of marketing mix involves a choice of the place where the products are to
be displayed and made available to the customers. It is concerned with decisions relating
to the wholesale and retail outlets or channels of distribution. The objective of selecting
and managing trade channels is to provide the products to the right customer at the right
time and place on a continuing basis. In deciding where and through whom to sell,
management should consider where the customer wants the goods to be available.

A manufacturer may distribute his goods through his own outlets or he may employ
wholesalers and retailers for this purpose. Irrespective of the channel used management
must continuously evaluate channel performance and make changes whenever
performance falls short of expected targets. In addition, management must develop a
physical distribution system for handling and transporting the products through the
selected channels. In the determination of distribution mix or marketing logistics, a firm
has to make decision with regard to the mode of transporting of goods to middle-men, use
of company vehicles or both.

44
FINDINGS
&
ANALYSIS

45
DATA ANALSIS

GENDER NO OF RESPONDANTS
FEMALE 50

AGE GROUP

UNDER-16 1
16-25 25
25-35 20
35 Above 4

46
FINDINGS BASED ON QUESTIONNAIRE RESPONSES
 Do you use cosmetic?

Women Use cosmetics Percentage (%)

Yes 78

No 22

47
  When do you use cosmetics?

Percentage
Women use Cosmetics

At parties & occasions 67%

Always 7%

When I want to 10%

Outside home 16%

67% women use cosmetics at occasions and parties, 7% use it in daily routine, 10% use it when
they want and the remaining 16% use it every time they go out.

48
 • How much do you spend on cosmetics in a month?

Money spent in a month on cosmetic Percentage (%)

Less than 200 16%

Between 200-400 47%

More than 400, less than 800 14%

More than 800 23%

The above graph shows how much amount people are willing to spend on cosmetics. As the
graph shows 47% people spend between 200-400 on cosmetics.

49
  Are you a Lakme customer?

Lakme customer Percentage

100%
Yes

Since the project report is on lakme so the questionnaire was filled by the people using lakme
products so the graph shows100% results.

50
 • Which of the following products of Lakme have you been using?

Products using Percentage

(%)

EYE 25

LIP COLOUR 45

FACE 21

NAIL ENAMEL 9

EYE
LIP COLOUR
FACE
NAIL ENAMEL

The above graph talks about the products of lakme used by women in their daily routine. LIP
COLOUR is the most widely used product.

51
  Are you satisfied with the Lakme products?

Satisfied with Lakme products Percentage (%)

Satisfied 60

Very satisfied 17

Neither satisfied nor dissatisfied 15

Dissatisfied 5

Very dissatisfied 3

SATISFACTION OF LAKME
60
50
40
30
20
10 SATISFACTION OF LAKME
0

The above graph shows the satisfaction of customers with the use of lakme products.

52
  What were the reasons for you to choose Lakme products?

Reasons for choosing Lakme Percentage (%)

16
Price
40
Variety
22
Quality
12
Promotion
8
Availability
2
Others

REASON FOR USING LAKME

PRICE
VARIETY
QUALITY
PROMOTION
AVALABILITY
OTHERS

The above graph shows the reasons behind the use of lakme products.
40% people use lakme products because of the VARIETY.

53
  For how long have been lakme products used by the customers?

DURATION PERCENTAGE%

Less than a year 15

One year 25

Two year 46

Less than five year 14

DURATION FOR THE USE OF LAKME

50
45
40
35
30
25 DURATION FOR THE USE OF
20 LAKME
15
10
5
0
LESS THAN A ONE YEAR TWO YEAR LESS THAN
YEAR FIVE YEAR

The above graph shows that the lakme product is mostly used by the customers for more than
two years.

54
  Does lakme provides quality products to its customers?

Percentage
Provides quality products or not

79
Yes

15
No

6
Can’t say

DOES LAKME PROVIDES QUALITY PRODUCTS

90

80

70

60

50
DOES LAKME PROVIDES
40 QUALITY PRODUCTS
30

20

10

0
YES NO CAN'T SAY

The above graph shows that the lakme brand provides 79% quality products to its
customers.

55
 Any problem faced by the customers while using lakme products?

Any problem faced Percentage%

5
Yes

95
No

PROBLEM FACED WHILE USING LAKME

PRODUCTS
120

100

80

60
PROBLEM FACED WHILE USING
LAKME PRODUCTS
40

20

0
0 0.5 1 1.5 2 2.5
-20

The above graph shows that only 5% of problem is faced by the customers while
using lakme products.

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  Are you satisfied with the promotional offers of Lakme?

Satisfied with promotional offers Percentage (%)

71
Yes
17
No
12
Can’t say

Satisfied with promotional offers

Can't say
12%
NO
17%

YES
71%

The graph represents the satisfaction of people with promotional offers of Lakme.71% said they
are satisfied and 17% said they are not.

57
  Do you find Lakme products price reasonable

Products price reasonable Percentage (%)

Yes 88

No 10

Can’t say 2

LAKME PRODUCT PRICE REASONABLE

YES
NO
CAN'T SAY

The above graph shows that the lakme product price is reasonable.

58
  If your Lakme product is not available then what would you do?

Product is not available then Percentage (%)

Will buy some other brand 13

Will never change my brand preference 55

Will wait for Lakme to be available 32

The above graph shows what the consumers will do if the lakme products are not available in the
market. 55% said they will never change the brand preference rather they will wait for the
products to be available.

59
  Do you find availability of Lakme product in shops/outlets easily?

Availability of products Percentage (%)

Very easily available 42

Easily 58

Neither easy nor difficult 25

Difficult 12

Very difficult 13

Availability of lakme products

9%
8% 28% very easily available
easily
17% neither easy nor difficult
difficult
very difficult

38%

The above graph represents the availability of lakme products in the market. and 38% people
said the products are easily available.

60
 • Would you recommend Lakme to your friends & relatives?

Recommend Lakme Percentage (%)

Yes 86

No 9

Can’t say 5

Recommend lakme to friends

100

90 86

80

70

60

50

40 Recommend lakme to friends

30

20
9
10 5

0
YES NO Can't say

The above table shows the recommendation of lakme products to others.86% people said they
would recommend lakme to others.

61
  What improvements do you suggest to Lakme for its products?

Improvements Percentage (%)

Reduction in price 50

Easily available 22

Improve promotional activities 18

others 10

When asked about improvements in lakme 50% people said to reduce the price of the
products.18% said there should be improvement in the promotional activities and the rest agreed
that the products are easily available.

62
 CONCLUSION

&

RECOMMENDATION

63
  CONCLUSION:

Lakme is the global leader in cosmetics, with 25 global brands. It has five key areas of expertise-
hair care, skincare, make-up and fragrances. This company has over 63,358 employees working
currently. And it sells its products around in 130countries all over the world. Its consolidated
sales are recorded in over 17,063 in millionaires .The company manufacture well above 4.7
billion units annually. It also has investments above 560 million euro s in R&D investments.

On the analysis and interpretation of research conducted. It was found that certain findings are
very critical and are directly or indirectly affecting the Lakme products.

•There is a good awareness of Lakme cosmetics products among the consumers.

•The quality of Lakme is very satisfactory viewed by the majority of customers.

•There is a neck to neck competition between L’Oreal, Oriflame, VLCC, Revlon etc

•75% of the customers are fully satisfied with existing quality While 25% are partly satisfied.

•Majority of women are using Lakme products.

•Consumers prefer the Lakme products because it provides good quality, good results, good
services, etc and it all fulfills their needs.

The competition is fierce in the multi-channel retailing environment. A business that hopes to
grow and prosper requires a comprehensive logistics and transportation strategy, executed
flawlessly. The dilemma for management lies in trying to meet consumers’ growing expectations
while keeping costs in check. In response to these issues of multi-channel growth, more and
more carriers are branching out to offer logistics services.

Those businesses that work to build successful relationships with logistics and transportation
vendors will find that their efforts lead to improved customer service and profitability. It’s not an
easy task, but it is certainly one that’s achievable with the tools and technology available today.

64
Lakme has been found to be the most preferred brand it meet the promise made to the customer.
Consumer relies on the Lakme products because it provides good quality, good results, good
services, etc. So that customer may prefer Lakme products.

While conducting survey I found that the customer may like the showrooms of the Lakme
products. They still likes the easily availability of various products. So the Lakme products
customers are fully satisfied to use the products.

 SUGGESTIONS:
 The supply must be properly fulfilled so the need of the customer satisfies.
 Target selling for the dealer / agent can increase the sales of company.
 The company must concern to the satisfaction of customer demand.
 The company and dealer should develop its marketing information system up to
date information of competitor's policy, price and product, target market, so the
company can know its strengths and weaknesses.
 Brand preference studies reveal that comparatively there is more preference for
Lakme among consumers so in order to attract and maintain his consumers.
Advertising programs should be intensified.

65
  Perception of the consumer is changing rapidly. They seek new benefits and
values in their preferred brand. Moreover, consumer likes to have brand at low
rate. So Lakme should insert it so as to meet the changing preference of the
consumer.
 Lakme is the market leader in make-up products. Most of the consumers are brand
loyal. They should be treated as intangible assets. Lakme should ever strive to
satisfy them.
 Fulfill the consumer needs.

ANNEXURE
BIBLIOGRAPHY
Books
 Philip Kotler- Principles of Marketing Management(2008) Pearson Education, Prentice
Hall,New Delhi
 Research Methodology – M.V. Kulkarni (Everest Publishing House , 2004)

Websites
 www.lakmeindia.com
 www.hul.co.in/brands..lakme.com
 www.lakme-products.com

66
 QUESTIONNAIRE

Dear Respondent,

I am a student of BBA (Bachelor of Business Administration). I am working on the

project consumer satisfaction with respect to LAKME. You are requested to fill in
the questionnaire to enable me undertake the study on the said project.

 PERSONAL INFORMATION

NAME =

AGE=

SEX=

DESIGNATION=

 GENERAL INFORMATION

 Do you use cosmetic?

 Yes

 No

 When do you use cosmetic?

 At parties and occasion

 Always

 When I want to

 Outside home

67
  How much do you spend on cosmetic in a month?

 Less than 200

 Between 200 – 400

 Between 400 – 800

 More than 800

 PRODUCT INFORMATION

 Do you use lakme products brand for cosmetic?

 Yes

 No

 For which purpose you usually use lakme?

 Eye

 Lip colour

 Face

 Nail enamel

 For how long you have been using the lakme?

 Less than a year

 One year

 Two year

 Less than five year

 Do you think lakme provides quality products to its customers?

68
  Yes

 No

 Can’t say

 What do you think is the main reason for your use of lakme?

 Price

 Variety

 Quality

 Promotion

 Availability

 Others

 Any problems you faced while using it?

 Yes (specify)

 No

 Are you satisfied with lakme products?

 Satisfied

 Very satisfied

 Neither satisfied nor dissatisfied

 Dissatisfied

 Very dissatisfied

 Do you find lakme product price reasonable?

 Yes

69
  No

 Can’t say

 If your lakme product is not available then what would you do?

 Will buy some other products

 Will never change my brand preference

 Will wait for lakme to be available at the outlet as soon as

possible

 Do you find availability of lakme products in shop /outlets easily?

 Very easily available

 Easily available

 Neither easy nor difficult

 Very difficult

 Difficult

 Are you satisfied with the promotional offers of lakme?

 Yes

 No

 Can’t say

 Would you recommend lakme to your friends and relatives

 Yes

 No

 What improvements do you suggest to lakme for its products?

70
 Reduction in price

 Easily available

 Improve promotional activities

 others

71