LAKMÉ’S PROFILE

Lakmé today has Its bond with beauty

grown to have a wide These include and fashion is
variety of products products for the lips, manifested through
Indian Brand of
and services that nails , eyes, face and the Lakmé Fashion
cosmetics- owned by
cover all facets of skin and services like Week, which is now
Unilever.
beauty care , skin the lakme beauty the largest fashion
care and cosmetic salons about LAKMÉ. event of its kind in
products. the country.
 INDIAN COSMETIC MARKET

• The Indian cosmetic market comprises of 4 segments - Oral care, Skin care, Hair care & Color Cosmetics

• Overall market size of Indian cosmetic market is : INR 62700 cr.

• Growth of Indian cosmetic market estimated to be between : 15 – 20 %

• Growth rate of Salons : 35%

• Growth of cosmetic products from 2009 – 2014 : 60%

 EMERGING TRENDS AT PRESENT
Shift in India’s Wallet Share
120

Health Care

Share of Avg. Household Consumption

Best in Class 100 Education &
Attention to Grooming& International Recreation

(%, Thousand, INR)

LookingGood QualityOfferings
Communication
8
0
RISING Transportation
Largest
Youth
CONSUMERISM
Population IN INDIA Shift in Wallet
6
0 Personal Products&
Share Services

4 HouseholdProducts
Dedicated 0
Proliferation of Shows,Events,
Media Celebrity Housing & Utilities
Association
2
0
Apparel

0 Food, Beverages&
1995 2005 2015 2025 Tobacco

SOURCE : Mckinsey Global Institute

 CHOICE OF LOCATION FOR LAKME NEXT SALONS
Growth in Personal Disposable Income Current Spread of Lakme Salons & Studios Pan India

Real Estate Costs

Competitive Analysis to understand Saturation level

Proximity to Training Academy/ Operational Costs

er Behaviour in terms of
Consumer Behaviour in terms of Spending Patterns
Spending Patterns

TARGET CITIES:
Tier II and Tier III cities such
as Surat, Vadodara ,Ahmedabad , Nagpur, Pune in West
Zone, Jaipur, Ghaziabad, Gurgaon, Noida in North
REASONS
•Booming destinations for businesses and experiencing
a skyrocketing growth in Infrastructure and Real Estate
•Experiencing high influx of people and improving standardsof
living
• Lesser Spread of Competition in these states
• Proximity to Training academies in Mumbai and Delhi
Key Locations to set up salon: HIGH STREET
• High popularity of high street shoppingconcept
• High conversions as people visiting are generally serious buyers
PRICING STRATEGY
PRICING SRATEGIES

Responding to competitor’s
pricing

Differentiated pricing

Single segment concentration
ABSOLUTE RANGES
Nail Enamel : Rs. 200-400 (100 % more)
Eye products : Rs. 450
Lip products: Rs. 500-900 (150% more)
Skin Products : Rs.400-1200(150% more)
 PRODUCTS OF

Ranging from Ranging from Ranging from

Rs. 80 Rs. 400 Rs. 200
DIFFERENCE IN PRICING
COMPETITION IN MASSTIGE SEGMENT

Brand Eyeliner Mascara Lipstick Foundation

Lakme 800 725 800 700

Maybelline 499 475 299 525

Loreal 800 700-1000 950 900-1100

Revlon 650 850 710 1000

 Target segment
Young, independent, modern women

Brand Positioning Statement

A complete range of trendy and stylish products for skin and beauty care

Tagline
On Top of the World
 STEPS TAKEN TO CHANGE POSITIONING
• Title sponsor of Lakme Fashion Week (LFW)

• Lakmé Salon launched a first-of-its-kind Lakmé Studio in Delhi which offers ultra-premium beauty services.
Lakme Studio has tied up with Nail Spa that uses the latest nail technology from the US to bring a bouquet
of services like nail extensions and nail art.

• Brand Ambassadors – Kareena Kapoor and now Shraddha Kapoor

• Location selection

• Lakme launched the ‘Absolute’ range of products that are available only in modern trade and selected A
class cosmetic shops.
 DIFFERENTIATION
Education
• Lakme’s strategy is not to use mass media advertising to promote Lakme. Instead, they have opted for
the education route to create awareness.

Training
• Lakme has teamed up with Aptech, an education and training company based in Mumbai to provide
beauty training courses to Indians.

Promotions
• Lakme does continuous promotions up setting up kiosks in malls, departmental stores and super markets

Reach
• With a retail reach of 40,000 stores and a network of 240 salons spread across 50+ cities and towns,
Lakme is one of the most widely available brands.
 RESULTS
• The Fashion Week, 240 Lakme Beauty Salons and now the recently-launched Lakme Studio, are all part
of those efforts by Lakme to become a more premium brand.

• According to a survey conducted by Cashkaro in 2016, Lakmé, L’Oréal, Nivea, Gillette and Maybelline are
among the most preferred cosmetics and personal care brands
SWOT ANALYSIS
 Strengths
1. High Brand Awareness.
2. Product Line: Variety
(3 Ranges: Classics, 9 to 5, Absolute)
3. Extensive Distribution Network of the parent company
(HLL)
4. Strong parent brand – Financially stable, well-known.
5. Lakme Beauty Salons all over India. Increases brand
visibility and customer engagement with the brand.
Opportunities
1. Growing premium segment. As of 2015, premium cosmetic
segment is growing at 30%.
2. Lakme beauty training academy can work as opportunity
to make an impact in the cosmetic market.
Weaknesses
1. Limited presence in Premium market. Lakme has a good
presence and is a leader in Value for Money segment. In
Premium segment, Revlon is the market leader.
2. Quality of Lakme Salons: In 2015, it was found that the
quality of Lakme salons is not good enough which results
in negative word of mouth.
3. Some products are well differentiated while others, in its
vast portfolio of products are not ignored due to poor
differentiation.
Threats
1. Increasing presence of International brand and their entry
in India
2. Intense competition from local and national players
3. Counterfeit products
4. Increasing allergy problems.
 Social Media Strategy
Audience Analysis of Lakmé

Owing to the brand building exercise by Lakmé, the sentiments expressed by people, both male and female, is either
positive or neutral. There is almost no negative emotion flowing for the brand, but what is surprising is the number of
male followers of the brand. As is evident in the following image, slightly over 40% of social media fans of the
cosmetic brand comprises of male.

Source: Lakme Inside Survey

The gender distribution of Lakmé’s fans could be a bit surprising, but not so its age distribution. The closer a person is to
his/her prime the likelier is his/her chance of following the brand on social media- as you can see people between 21-30
make the largest chunk of its social media followers.

Overall Strategy Lakmé

Looking gorgeous and feeling beautiful seem to be the mantra that Lakmé follows on social media. The content it shares
and the design of it talks not only about its products, fashion shows, and contests, but also about the little steps a woman
(or a girl) can take to look gorgeous and be the object of much-coveted desire, as the brand sees it to be the driving
agenda of all women, or at least its fans. We need to see in the following sections, what form this strategy takes when it
comes to individual channels like Facebook, Twitter, and the like.
 Lakmé on Facebook
With almost 19.25 lakhs Facebook fans, of which a little over 39,000 actively engages in
discussion, Lakmé has a pretty strong Facebook presence. The brand has used a nice mix
of image and video updates from its events, make up tips, and contest, which has helped
it maximize its reach among Facebook Users.

When sharing tips the brand does add a call to

action asking its followers to take a particular
action. For example, in the following image, the
brand has asked its fans and followers to “like”
the post only if they are going to use the
shared tips. 233 likes, 17 shares, and 8
comments are the testimony to how seriously
fans take the tips shared by the brand.
THANK YOU