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Project Report On Lakme 130103224651 Phpapp02 PDF
Project Report On Lakme 130103224651 Phpapp02 PDF
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CONTENTS
EXECUTIVE SUMMARY
1. INTRODUCTION
3. RESEARCH METHODOLOGY
4. INDUSTRY PROFILE
7. BILIOGRAPHY
8. REFRENCES
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Executive summary
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CHAPTER 2- CRITICAL
REVIEW OF LITERATURE
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INTRODUCTION
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High priestess of sacred Indian temple meets English army officer who's
unwittingly strayed into holy ground. They fall in love. Her orthodox
father vows vengeance... That's the story of Lakmé, a 19th century opera
written by Frenchman Leo Delibes, from which Simone Tata borrowed
the name Lakmé (French for Lakshmi, the name of the priestess).
Even with a 20 percent average growth rate, the per capita consumption
of cosmetics is very low in India. Current per capita expenditure on
cosmetics is approximately US$ 0.68 cents as compared to US$ 36.65 in
other Asian countries. However, with changing lifestyles, higher
disposable incomes, increasing advertising, penetration of satellite
television, awareness of the western world and growing importance
of beauty pageants, there have been significant changes and use of
cosmetics is on the rise.
The skin care market in India is estimated at US$ 180 million. Within
the last decade, this segment has seen many consumers slowly shift from
the mass to the premium end of the market. The penetration rate is
high in the skin-care segment as compared to color cosmetics. In the
skin-care segment, price and volume played an equal role in value
growth. Moisturizing lotions, fairness creams and face cleansers are the
popular categories in the skin-care segment and account for
approximately 60 percent of the skin-care segment. The major players in
this segments are Lakme, Ponds, Fair & Lovely of the HUL group with a
50 percent market share, followed by players such as J.L. Morison that
markets the Nivea range of products in India, Godrej and Revlon.
Penetration levels of international cosmetics brands in India are still low.
Foreign brands currently constitute only 20 percent of the market. A
major reason for low penetration of international brands can be
attributed to high pricing. These companies initially gained sales on their
international brand image, however, repeat purchases were not
forthcoming and to retain their sales growth, several foreign companies
reformulated price strategies to tap the large Indian middle class. Urban
women in the middle and upper income groups in the age range of 23-50
is the target group for international brands, as this group looks for better
products and is willing to pay a premium for international quality
products. Industry estimates suggest that there are close to 10 million
such women in India.
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Chapter 3
RESEARCH METHODOLOGY
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Primary Data
1) Questionnaire
Secondary Data
Internet
Company Reports& Broachers
Magazines
Newspapers Articles &journals
Brand awareness,
Price level,
Visibility of brand personality.
Expectancy of Communication
All these factors were the prime criterion for selecting (Which brand??),
Short listing and ranking (level of trustworthiness? or most favoured )
which had helped us for identifying the winner in cosmetics industry.
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Objective
HYPOTHESIS
In the classical tests of significance, two kinds of hypothesis are used the
null hypothesis and the alternate hypothesis. Null hypothesis ( Ho) is
used for testing. It is the statement that no difference exists between the
parameter and the statistic being compared. Second is Alternative
hypothesis
(HA) is alternative hypothesis is alternative hypothesis which holds that
there has been a change.
In this report our null hypothesis and alternative hypothesis are stated
below:
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RESEARCH DESIGN
Sample design
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The sampling procedure used to produce any type of sample
Sample size of 100 customers.
Sample centre = Amity Girls hostel
CHAPTER 4
COMPANY PROFILE
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Half a century ago, as India took her steps into freedom, Lakme, India's
first beauty brand was born. At a time when the beauty industry in India
was at a nascent stage, Lakme tapped into what would grow to be
amongst the leading, high consumer interest segments in the Indian
Industry - that of skincare and cosmetic products. Armed with a potent
combination of foresight, research and constant innovation, Lakme has
grown to be the market leader in the cosmetics industry. Lakme today
has grown to have a wide variety of products and services that cover all
facets of beauty care, and arm the consumer with products to pamper
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herself from head to toe. These include products for the lips, nails, eyes,
face and skin, and services like the Lakme Beauty Salons.
In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50
venture Lakmé Lever that would market and distribute Lakmé's
products. In 1998, Lakmé sold its brands (and the 50 per cent it owned
in the JV) to HLL, renamed itself Trent and entered a different business
(retail). Only, the years between 1995 and 2000 saw HLL wrestling with
several issues with a bearing on Lakmé's future. A brand that has over 5
decades talked of beauty is none other than Lakmé. Launched in 1952, it
offered a range of cosmetics with nail polishes & lipsticks from the early
80’s. Lakmé also understands the importance of maintaining and
accentuating a women’s natural beauty, for this it has introduced a range
of skincare products from 1987. These ranges have been constantly
innovated to bring specialized beauty care and complete the range for
the definitive women.
A brand that has over 5 decades talked of beauty is none other than
Lakmé. Launched in 1952, it offered a range of cosmetics with nail
polishes & lipsticks from the early 80’s. Lakmé also understands the
importance of maintaining and accentuating a women’s natural beauty,
for this it has introduced a range of skincare products from 1987. These
ranges have been constantly innovated to bring specialized beauty care
and complete the range for the definitive women.
Chopra accepts that distribution has been the company's Achilles heel
for some time: ''The supply-chain hasn't been as robust as it should have
been, but that has been the result of our efforts to reposition and
reintroduce the brand.'' The positioning bit, although complex, is clear:
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Ponds is Lever's primary skincare brand; Lakmé, its aspirational colour
cosmetics brand, which also has a presence in skincare.
The 'aspirational' qualification would mean Lakmé would compete at
what the company terms the 'upper-mass' (premium) end of the colour
cosmetics spectrum (products priced between Rs 85 and Rs 250) where a
slew of competitors, ranging from Revlon (through Modi Revlon) to
Chambor, are already slugging it out. Says Meghna Modi, 26, Executive
Director, Modi Revlon: ''The numbers say it all. According to ORG-
MARG's retail audit, we have an 84 per cent share of the premium end
of the colour cosmetics market.'' Chopra is quick to rubbish this claim;
he says ORG-MARG does not have a representative sample of the
60,000 outlets through which colour cosmetics are sold in India.
Still, it is conceivable that Lakmé's new-found aspirational strategy
could have been brought about by competitors like Revlon and
Maybelline, which targeted this segment. Indeed, the company's non-
transfer lip-colour range follows in the wake of Maybelline's launch of a
similar range, and its new nail-enamel colours come soon after
Maybelline and Revlon launched their nail-enamel range. The
company's defense is that it takes at least 15 months from the
conceptualization to the actual launch of products.
And fashion consultants like Meher Castelino believe the brand
commands an edge at the high-end: ''By appropriating the fashion
platform for itself, Lakmé has entrenched itself at the glamour-end.''
Strengths :
local brand of specific relevance to India.
Strong R&D capability, well linked with business.
Integrated supply chain and well spread manufacturing units.
Ability to deliver Cost Savings.
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Access to Unilever global technology capability and sharing of
best practices from other Unilever
Weaknesses :
Price positioning in some categories allows for low price
competition.
Varying quality range in its products.
Falling Quality of Lame salons
Opportunities :
Brand growth through increased consumption depth and frequency
of usage across all categories.
Upgrading consumers through innovation to new levels of quality
and performance.
Building brand image by collaborating with top designers in
Lakme Fashion week
Threats :
Aggressive price competition from local and multinational players.
Spurious/counterfeit products in rural areas and small towns.
Non Existence of brand image in long Run
Lakmé has a wide range of products in color cosmetics that bring visible
results. To add to this vast repertoire is a range of specialized skin care
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products for the discerning women. Keeping skin looking healthy and
glowing is also a part of looking great. Lakmé provide the complete
package with the skin care range and the wide range of colors to spice
up the look.
Lakme products
Colours
From the spicy shades to the flattering look, Lakme offers a range of
products in the face, lips, eyes and nail segment for the beauty
aficionados.
Face
Lips
Eyes
1. Lakmé Kajal:
2. Lame Insta Eyeliner eyelids
3. Lakme Lakmé Shimmer Eye Cube:
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Nails
True Wear Nail Enamel -Nail Enamel with Lacquer-like finish. Contains
resins and silicone with colour lock technology that gives brilliant long
lasting shine
Skin
For radiant skin Lakmé is there to pamper your skin with specialized
products for the diva in you.
Cleansing
Moisturizing
Sun Protection
The range comprises of lotions to keep your skin healthy and younger
looking.
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CHAPTER 5
INDUSTRY PROFILE
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VISION
To earn the love and respect of India, by making a real difference to
every Indian.. HLL follows its parent company’s mission to “add vitality
to life”. They strive to meet everyday needs of nutrition, hygiene, and
personal care products that help people “feel good, look good, and get
more out of life”.
STRATEGY
DISTRIBUTION
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With respect to distribution related activities like sales and marketing, HLL
is second to none in pushing the boundaries of what is possible financially,
structurally, and logistically. Beyond its pioneering work FMCG
distribution, the company has sought to instill in its customers an elevate
sense of brand experience while simultaneously providing greater and more
varied access to its products as well as improved clarity to its
communications. New initiatives include raising brand visibility through
in-store promotions, store-based product facilitators, and self-service. HLL
has enabled an even further level of personalization and brand experience in
the direct sales arena with its ground-breaking Hindustan UniLever
Network, having amassed an army of consultants 250,000 strong with
access to 80 % of city dwelling Indians.
Hindustan Unilever – Present Scenario
• 15,000 employees
• 1,200 managers
• 2,000 suppliers & associates
• 75 Manufacturing Locations
• Total Coverage 6.3 Mln Outlets
• Direct Coverage 1 Mln outlets
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Market Overview
The current size of the Indian cosmetic market is approximately US$
600 million. Of this, the fastest growing segment is color cosmetics,
accounting for around US$ 60 million of the market. Industry sources
estimate a rapid growth rate of 20 percent per annum across different
segments of the cosmetics industry reflecting an increasing demand for
all kinds of beauty and personal care product. Growth has come mainly
from the low and medium-priced categories that account for 90 percent
of the cosmetics market in terms of volume.
The Shahnaz and the Biotique brands dominate the premium herbal
cosmetics segment in India, estimated at USD 100 million.
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. Since liberalization, many international brands like Avon, Burberrys,
Calvin Klein, Cartier, Christian Dior, Estee Lauder, Elizabeth Arden,
Lancome, Chambor, Coty, L'Oreal, Oriflame, Revlon, L'Oreal, Yardley,
Wella, Schwarzkopf, Escada, Nina Ricci, Rochas, Yves St. Laurent and
Japanese cosmetics company, Shiseido have entered the Indian market.
The prices of most foreign brands have been fairly high, which has
deterred average Indian consumers. International brands cater to a
segment that can broadly be classified as the urban higher income
group.
Market Trends
Cosmetics and toiletries are not just the domain of women any longer
and Indian men too are increasingly taking to the use of more and more
body sprays, perfumes and other cosmetics and toiletries. With rising
demand from men, the Indian market is getting enlarged and many
players are coming out with cosmetic products especially skin care
products for men. The market size of men's personal care segment is
estimated at approximately US$ 165million, with Gillette having the
largest market share. Other major players in this segment include
Godrej, J.L. Morison and HLL. The growing demand for men's
cosmetics have made many direct selling companies such as
Modicare and Amway to launch new products for men.
In the last five/six years, there has been a renewed craze for herbal
cosmetic and personal care products, especially in the skin care segment
with the growing belief that chemical-based cosmetics are harmful.
Shehnaz Hussain, Biotique, and Lotus Herbals are the major players in
this segment. Many companies also expanded their range to include
herbal variants..
Import Market
Costs for importing products are much higher than producing it in the
country. India allows entry of imported cosmetics without any
restrictions but the average import tariff on cosmetics products is
currently very high at 39.2 percent. This makes imported products very
expensive for most consumers. Most foreign cosmetics companies
selling premium brands have had a difficult time developing the low
volume premium market in India. Many had to re-work price strategies
towards the mass segment. Price is not the only reason responsible for
their problems. Poor assessment of the size of the upper middle and
high-income groups, and price sensitivity even within these groups, had
added to their problems.
Competition
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A strong brand promotional campaign, good distribution network,
constant product innovation and quality improvement, and the
ability to provide a variety of quality products are some of the
major reasons for the success of most companies.
Sales Prospects
The rural market in India for cosmetics and toiletries remains is largely
untapped. Major domestic players have also not been able to penetrate
this market. The urban market itself for specialized cosmetic products
remains to be fully exploited. The Indian skin-care market is not yet
fully tapped and offers promising prospects as a growth area. Penetration
of color cosmetics is lower than the penetration prospects of the skin-
care segment.
Other key issues regarding sales prospects are product variety and
retailing strategies as well. There is a marked shift among
consumers from functional common-fits-all products to more
specialized formulations. This is one of the reasons why an
increasing number of cosmetic companies are dealing with
consumers directly through special exclusive counters in major
departmental stores and malls featuring their own beauty
consultants. L'Oreal India has established a consumer advisory unit and
Ponds, as mentioned earlier offers skin care advise through touch-screen
kiosks, and telephone help-lines.
Market Access
Prior to March 31, 1999, India had cosmetics and toiletries on its
restricted list of imports and a special import license was required for
import of cosmetics and toiletries into the country. This regulation has
now been done away with and, India today, permits import of
cosmetics and toiletries without any restrictions. This has made the
Indian market more attractive to foreign cosmetic companies.
Imports have been made easier, but not necessarily cheaper.
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Chapter 6
Questionnaire
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Q)What do you think about the price level of Lakme
products ?
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CHAPTER 7-
FINDING & ANALYSIS
Overall Satisfaction
Observed(O) Expected(E) (Oi-Ei)2 χ2 {(Oi-
Satisfaction Ei)2 / }
level
Excellent 16 20 16 0.8
Good 20 20 0 0
Average 55 20 1225 61.25
Poor 5 20 225 11.25
Neutral/Cant 4 20 256 12.8
Say
χ2=86.1
Table value=9.49
Since the table value is less than the χ2.
So the Ho is rejected.
Loyalty
Advocasy
χ2=4
Table value=3.84
Since the table value is less than the χ2.
So the Ho is rejected.
Advertising/Communication effect
Communication Observed(O) Expected(E) (Oi-Ei)2 χ2 {(Oi-Ei)2
level /E }
Effected 17 50 1089 21.78
Not at all 83 50 1089 21.78
χ2=43.56
Table value=3.84
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Since the table value is less than the χ2.
Price Level
χ2=54.503
Table value=5.99
Since the table value is less than the χ2.
So the Ho is rejected.
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CHAPTER 8
RECOMMENDATIONS
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The brand should not lose its focus away from cosmetics. It can
proved to very detrimental.
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CHAPTER 9 -CONCLUSION
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Since the Null hypothesis is rejected therefore it states that the customers are
not satisfied well with the lakme products . This would be the major cause of
lose of market share in the country. Another reason is the upcoming of
Regional brands in the country that is making lakme loose its sheen.
Therefore the company should take in strategic steps and planning to revive
its brand image accordingly.
The local cosmetics and toiletries industry generally involves mixing and
formulation processes, using imported ingredients. Many of these
companies are contract manufacturers, mainly for products such as shampoo
and conditioners, other hair care products, perfumes, and cosmetics.
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According to the industry, the market is saturated with many different types
of products, and in the long run, established brands that emphasize quality
and service will have the edge.
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BIBLIOGRAPHY
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References
• www.hindubusinessline.com
• www.lakmeindia.com
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• www.hll.com
• www.economictimes.com
• www.financialexpress.com
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