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Introduction

Lakme is an Indian brand of cosmetics,owned by Unilever, it started in 1952 asa 100% subsidiary of Tata Oil Millswhich is a part of the Tata Group.

Lakme also started its new business inthe beauty industry by setting up

Lakme Beauty Salons all over India.Now HUL (Hindustan Unilever Limited)has about 110 salons all over Indiaproviding beauty services


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Products of lakme

Lakme FruitBlastFace Wash

Lakme Discover

Glow


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Lakme Night Fever Summer

Lakme perfectReadiencefairness range


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Cleansers

Moisturisers


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Several Multinational companies such as :

REVLON,YARDLY,GARNIER,LOREAL entered in the market.These companies initially cashed on their internationalbrand .

Revlon, ponds & Avon with the major part of the rest .

Other international brand in the sector include LOreal

some , of them engaged in the level if marketing model fortheir products

Competitors of lakme


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OBJECTIVEThe consumers perception about the LAKME .


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product :Lakme provides a wide range of beauty products

Nail enamel should dry within particular time of period.

By introducing some kind of fragrance in nail enameland making nail enamel very quickly dry.

Introducing something in Elle 18 nail enamel like,which changing color according to environment changesand to protect nails and high shine finish at all time.

Marketing mix-4 ps


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Promotional pricing:

Elle 18 nail Enamel Company can give price at special eventpricing, because Elle 18 nail enamel targeted students tosell their products.

Responding to competitors pricing:

Elle 18 nail enamels major competitor is Revlon , if thecompetitor (Revlon) changes the price means, companyhave to analyze the market situation and then change theprice accordingly.

Differentiated price:

Elle 18 nail Enamel Company can offer time pricing andimage pricing. They can set the price according to qualityand quantity of the product.

Price:


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Internet as medium

Company has its own website to advertise their products.Website:http://www.lakmeindia.com .

Sales promotion

Lakme Elle 18 offers sales promotion to increase the salesfor particular time of period.

Company offers rebates and discounts on specificproducts which products are in low sales.

Brand ambassadors

Lakme have bollywood Actress as a brand ambassadorslike Katrina Kaif and Raima Sen.(Brand ambassador,2005)(Brand ambassadors).

Promotion:


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There is a significant change in market distributional channel of cosmetic products.

Distribution places are :Super marketsDepartmental stores

Other distribution places are :Cosmetic discountersWare house clubs.Beauty salons

Lakme distribution merged with HUL. HUL is having 3000distributors around the country and lakme have 1000distributors.

Place:


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Strengths:

High quality manpower resources

Brand NameVast range of products and servicesDistribution ChannelUnilever global technology capability

Weaknesses:

High Services costsUse of Hard Chemicals

Swot analysis


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Opportunities:

Brand growth through increasedconsumption depth .

Growth in Business of beauty saloons .Lakme Beauty Training academy in Mumbai,

Chennai and New Delhi.

Threats:

Aggressive price competition from local andmultinational players .Availability of cheap beauty products


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introduction

LOREAL Group - worlds largest cosmetics and beautycompany

Founded in 1909 by Eugene Schueller

LOreal has explored the fields of cosmetics like haircare, hair color, skin care, sun protection, andperfumes.

LOreal is also active in dermatological and

pharmaceutical field, which makes LOreal the topnanotechnology patent-holder in United States LOreal has global market share of 17%


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Competition

Cosmetic majors like Revlon and Avon and Nivea vied for shelf space.

The giant FMCG companies like Unilever and P&G. Local competitors like HLL-Lakme in India, Dark and Lovely in

Africa, and the erstwhile Shu Umera in Japan (L'Oreal lateracquired this brand).


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PRODUCT STRATEGY

LOREAL provides a wide range of beautyproducts

HAIR color should stay long lasting.

By introducing some kind of fragrance inmosturiser, which provides skin to stay soft.


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PRICE STATEGY

LOreal is known for its strong control of its PriceStrategy which is decided at the Headquarters.

High end products sold at competitive pricedistributed through the mass market retailingchannels.

Both the products range between Rs.500-Rs.550.

LOreal Excellence Crme for Rs.550/ -Shiseido Hair Colour for Rs.800/-


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PLACE STRATEGY It is a speciality good and has selective intermediaries

It has about 290 subsidiaries, more than 100 distributors off-group and 42plants, all spread out in about 130 countries

To make its presence feel in different parts of the world LOreal hasacquired many different companies like The Body Shop, which has over2,000 stores in more than 50 countries

Several salons use as well as sell loreal product

L'Oral currently reaches around 450,000 sites in India, considerablybelow the totals of 2m and 3m registered by Hindustan Unilever and ITC,the FMCG firms.


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PROMOTION STRATEGY


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22%

33%

45% 60%

19%

21 %


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72% 28%

65% 28%

7%


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4%

70%

26%

71%

29%


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Market Share

41%

42%

17%


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