PROJECT REPORT

(Submitted for the Degree of B.Com. Honours in Accounting & Finance

under the University of Calcutta)

TITLE OF PROJECT
COSMETIC INDUSTRY IN INDIA
LAKME VS ORIFLAME
Submitted by:
Name of the Candidate :
Registration No.
CU Roll No.
Name of the College: THE BHAWANIPUR EDUCATION SOCIETY
COLLEGE .
College UID.
Supervised by:
Name of the Supervisor: Prof.

Name of the College: THE BHAWANIPUR EDUCATION SOCIETY

COLLEGE
Month & Year of Submission
,2024

Annexure-IA
Supervisor's Certificate

Signature
Name:
Designation:
Name of the College : THE BHAWANIPUR EDUCATION SOCIETY
COLLEGE

PLACE : KOLKATA
DATE: MAY 2024

Annexure-IB
Student's Declaration
I hereby declare that the Project Work with the title COSMETIC
INDUSTRY IN INDIA, LAKME VS ORIFLAME submitted by me for the
partial fulfilment of the degree of B.Com. Honours in Accounting &
Finance under the University of Calcutta is my original work and has not
been submitted earlier to any other University /Institution for the
fulfilment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has
been incorporated in this report from any earlier work done by others
or by me. However, extracts of any literature which has been used for
this report has been duly acknowledged providing details of such
literature in the references.

Signature
Name:
Address:

Place:
Date:

ACKNOWLEDGEMENT
I would like to convey my heartfelt thanks to Prof. Dushyant
Chaturvedi and also to my mentor Prof Sitangshu Bhattacharya
for their invaluable suggestions and guidance for the
completion of my project work.
At the successful completion of this project, I would like to
express my sincere gratitude to all the people without whose
support this project would not be completed. At the onset I
would like to thank my institute "Bhawanipur Education Society
College" for giving us this opportunity to undergo this research
project at the very under-graduation level.

INDEX
SL NO. TOPIC page

INTRODUCTION;
REVIEW OF LITERATURE
1 OBJECTIVE OF THE STUDY 6 -24
RESEARCH METHODOLOGY
LIMITATIONS
CHAPTER PLANNING

COCEPTUAL FRAMEWORK / NATIONAL 25-31

2 AND INTERNATIONAL FRAMEWORK

PRESENTATION, ANALYSIS AND 32-

3 FINDINGS

CONCLUSION
4 RECOMMENDATION
REFERANCES
BIBLIOGRAPHY

5 QUESTIONNAIRE

CHAPTER
INTRODUCTION
1
COSMETICS INDUSTRY IN INDIA
Within a short span of the last five-six years, the use of cosmetics by Indian
consumers has increased significantly with more and more women and
men taking greater interest in personal grooming, increasing disposable
incomes, changing life styles, influence of satellite television and greater
product choice and availability. With the demand for cosmetics on the rise
and the opening up of the market to foreign companies, many of the world’s
popular cosmetics brands entered the Indian market in the early and mid-
nineties and some more have set their sights on India.
This cosmetics and personal care industry has been growing at an
average rate of 20 per cent for the last few years. The growing Indian
cosmetics market offers promising prospects for international brands. The
growth rate in the cosmetics market reflects an increasing demand for
beauty care products in India. Perfumes and fragrances, skin care, and hair
care products are some of the major segments with promising prospects for
U.S. companies.
Penetration of most cosmetic and toiletries is very low in India.
Current consumption of many products is well below that of many countries
in Asia. The low market penetration of many cosmetics and personal care
products offers room for growth. The urban population with increasing
purchasing power is the major force driving demand for cosmetics. India is
a very price-sensitive market and mass-market products constitute the
major part of the cosmetics and toiletries market. India’s import of
cosmetics and toiletries and intermediate raw materials is around US$ 120
million, of which the U.S. has a share of approximately 10 percent. The
objective of the study report is to analyze the consumer satisfaction level of
different brands, particularly focused on the Lakme and Oriflame products.
 LAKME
Lakmé is an Indian brand of cosmetics, owned by Unilever. Lakme
started as a 100% subsidiary of Tata Group (Tomco), it was named after
the French opera Lakmé. At the time of its establishment, Indian
cosmetic industry was rather nascent, and there was a very small
market base. Simone Tata joined the company as director, and went on
to become its chairman. When Tata's saw a bigger growth potential in
the retail market, and greater competition from global companies in
cosmetics, they entered into a 50-50 joint venture with Hindustan Lever
Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever.
In 1998 Tata sold of their stakes in Lakmé Lever to HLL, for Rs.200 Crore
(45 million US$), and went on to create Trent and Westside.
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 herself
from head to toe. These include products for the lips, nails, eyes, face
and skin, and services like the Lakme Beauty Salons.

Products of Lakme
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
Lakmé Daily Wear Soufflé ,Lakmé Perfecting liquid Foundation - Lakmé
Radiance Compact, Lakmé Flawless Matte Complexion ,Compact
Lips
Lakmé Enrich Lipcolor - . Perfecting Definition Lip Pencil – Starshine
Lipgloss - Glosses in lustrous shades available in 14 shades
Eyes
From dramatic to natural look- a wide range of products are on offer to
create the perfect eyes.
1. Lakmé Kajal:
2. Lakme Insta Eyeliner eyelids
3. Lakmé Shimmer Eye Cube:
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.

ORIFAME

Oriflame is a cosmetics company that sells high-

quality natural skin care and cosmetics products through Home Beauty
Demonstrations or Catalogues. Direct sales allow customers to get
advice and inspiration from people they know and trust. Buying direct is
reliable and convenient. Being an Oriflame Sales Consultant means
unlimited income and career opportunities, personal development and
a sense of belonging to a friendly global community.

Oriflame as a company is
characterized by a can-do spirit, a decentralized management and a
young and entrepreneurial atmosphere Oriflame Cosmetics is one of
the world's fastest-growing cosmetics companies, selling high-quality
natural skincare and cosmetics products through an independent sales
force outside the traditional retail environment. Oriflame Cosmetics has
a presence in 59 countries and is one of the market leaders in over 30
countries. A direct sales force of 2.2 million independent sales
consultants markets .
Products of Oriflame
Wellness by Oriflame
When you feel good it shows, and we believe that good nutrition and an
active, social life are key to feeling good. Our aim is to help you find a
balance that fits your life naturally A healthier, happier life starts with
Wellness by Oriflame!
Nov Age
Our premium Nov Age skin care range offers a series of scientifically
advanced skin care ranges, customised to target women and men’s skin-
ageing needs. Every range is powered by a skin-rejuvenating technology
together with a youth-preserving plant stem cell extract – a formidable
partnership designed to correct and slow down the skin-ageing process.
BABY O WITH SWEDISH OAT Oil Based
on our knowledge of baby skin, we wanted to find an ingredient that
isn’t just hydrating, but actually improves your baby’s skin barrier and
strengthens its resilience against external aggressors. Swedish Oat Oil
does just that. Each drop of this beautiful golden oil has been
sustainably extracted from the finest Swedish crops, creating a rich,
concentrated
LOVE NATURE
Celebratin
g simple, natural ingredients that smell and feel fantastic, Love Nature
products have been created to benefit both your body and the planet.
All Love Nature rinse-off products are biodegradable, hair products are
silicone-free and exfoliants have natural-origin.
REVIEW OF LITERATURE
“A study on cosmetics usage of girls”. The purpose of the study is to find
cosmetic usage of girls and the most popular products are colored
cosmetics, of which nail polish, lipsticks and she ne are the largest
number of products in the entire Indian cosmetics and toiletries market.
Popular local brands in the region include Lakme and oriflame. This
study has made a serious attempt to study the behavior of teenage girls
in the use of cosmetics. A sample of 100 girls was examined and their
data collected. The samples for the study are selected systematically.
The study uses statistical techniques such as percent analysis and Chi-
square test. In addition, a study may also be conducted to identify
differences in the use of cosmetics by female students of the arts and
sciences, engineering and other professional academy students. The
behavior of workers in cosmetics can also be studied.
Syed Kazim and D. G. Kantharaj (2015): In there study entitled Impact of
Advertisements towards Customer Purchase Decision: A Study with
reference to Cosmetic Products. In the last two decades, advertising has
increased dramatically change. Advertising has a major impact on
customers' purchasing decisions for specific brands. It is generally
accepted that advertising can give a product or service special features
that would otherwise be lacking. The study focuses on identifying the
impact of advertising on the behavior and attitudes of consumers,
especially cosmetics, among young people aged 15 to 24 years. To find
answers to the research problem, a descriptive search mode was used.
The information was collected from primary and secondary sources.
Caring about their body and their physical aspect is very important to
women. The application of cosmetic has become social phenomenon in
Indonesian people lives. Over time attitudes and habits are changing as
social structures metamorphose, as new and different technologies
affect the market.
There are a lot of international cosmetic brand in Indonesia but this
study focuses on "Oriflame" AND Lakme. The main factors that attract
women consumers in Oriflame are discount, product quality and price.
The main reason consumers are using Oriflame and lakme is the quality
that satisfies their needs, trust worth brand. (Agus Hermavan)The
research has been conducted to know the people’s expectation and
satisfaction Towards Uritlame Products, he difficulties faced by the
customers with regard to skin care products availability and quality
were also inquired into and there by their overall satisfaction level was
studied. This is a descriptive research and mainly primary data.

OBJECTIVES OF STUDY

• .To find out the impact of Lakme and Oriflame informative

Cosmetics Products on the brand switching behavior of the
consumer
• .To study the effect of Consumer Satisfaction on the marketability
of Cosmetic products
• .To know the impact of various striking features on buyer’s
behavior
• .To know the media access by consumers to know about
Cosmetics Products
• .To know various cosmetics product range in the market level for
Cosmetic Products (Nail Enamels, Lotions, Shampoo, etc.,)

NEED TO STUDY
• This study uncovers the impact, utility and effectiveness &
efficiency of marketing strategies of Lakme and oriflame on
the success of cosmetic industry.
• A special emphasis is laid down on Lakme and oriflame
cosmetics.
• The project begins with detailed information about
marketing strategies and the impact of measuring customer
satisfaction in cosmetic industry.
• Further, it covers topics as data collection tools and
research methodology used for the project.
• Then it gives a complete analysis of the data collected and
it is then used to reach to a conclusion.
• The study took nearly 2 months to complete. The study is
useful for the better understanding of marketing strategies
towards the Lakme and oriflame cosmetic industry
• For the purpose of this study, a questionnaire was designed
based on different parameters to judge and understand the
consumer behavior towards Lakme and oriflame cosmetics.
 • Target group of the project was mainly Lakme or oriflame
customers. As this study is confined to Lakme, oriflame it
covers an analysis of consumer behavior, attitude,
perceptions, marketing strategies and satisfaction with
respect to Lakme and oriflame as a BRAND in cosmetic
industry

RESEARCH METHODOLOGY

Sources of Data:
There were mainly two major sources of data namely;
PRIMARY DATA:
Primary data is the one which is collected specifically for the purpose of
the project with the help of a questionnaire prepared.
SECONDARY DATA:
Secondary data refers to the statistical material which is not originated
by the investigate himself but obtained from someone else‘s records,
websites, newspapers, magazines, etc. But, it plays a significant role in
the project.
For this study, the secondary data has been obtained from published
reports like the annual reports of the company, balance sheets, and
profit and loss account, websites, records such as files, repost.

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 100, 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.
• Methods/instruments/techniques used to collect the data
• Limited access to data
• Time constraints
•
CHAPTER PLANNING
1. CHAPTER 1: INTRODUCTION - Here we discuss in brief about how
micro-influencers plays a significant role in making the purchase
decisions of an individual. Then we look at the background of the study,
limitations faced by a student while making the project, objective of the
study and research methodology used.
2. CHAPTER 2: COCEPTUAL FRAME WORK; NATIONAL AND
INTERNATIONAL SCENARIO - Here we discuss about what influencer
marketing is and it' scope and popularity in our national and
international economy in a brief way.
3. CHAPTER 3: P RESENTA TIO, ANALYSIS AND FINDINGS - Here analyse
the data which has been gathered from various sources such as
questionnaire, books, journals, articles, etc with the help of pie charts,
tables, etc.
4. CHAPTER 4: CONCLUSION – here we conclude the project by
summarising it and look at way in which micro-influencers are
influencing people.

INDUSTRY OVERVIEW
PAST, PRESENT & FUTURE TRENDS IN COSMETICS
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.
Archeological evidence of cosmetics dates at least from ancient Egypt
and Greece. According to one source, early major developments
include:
 • 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.

COMPANY PROFILE : LAKME

The Lakme Group is the world's largest cosmetics and Beauty Company,
owned by Hindustan Unilever and run by CEO Pushkaraj Shenai. 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.
In 2014 Lakme' has been ranked as 36th 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.
The Carreras family established LAKMÉ Cosmetics in 1997 and is
independent, self-financed and family owned. The family has over 40
years of manufacturing experience in salon products. Lakmé East a
regional distributor of Lakmé Cosmetics with its main office in
Colchester is conveniently placed to provide you with all the guidance
back up and support you’ll ever need.
LAKMÉ leading hair care products are developed exclusively for
distribution to hair and beauty salons. Branding and packaging of the
product range is first class and they are tested and manufactured solely
for this brand name and no other. The very best raw materials are used
in manufacture using the latest technology and adopting the highest
levels of hygiene. All product formulation is in accordance with the
health standards of the European Union and the United States Food &
Drug Administration and is subject to ISO 9002 certification.

COMPANY PROFILE : ORIFLAME

Oriflame is founded in 1967 by two brothers Jonas and Robert and their
friend, Oriflame is now an international beauty company selling direct
in more than 60 countries worldwide. Its wide portfolio of Swedish,
nature-inspired, innovative beauty products are marketed through a
sales force of approximately 3.6 million independent Oriflame
Consultants, who together create annual sales of around 1.5 billion
Euros. Oriflame offers the leading business opportunity for people who
want to start making money on day one and work towards fulfilling
their personal dreams and ambitions through its unique business
opportunity concept – Make Money Today and Fulfill Your Dreams
Tomorrow. Respect for people and nature underlies the company’s
operating principles and is reflected in its social and environmental
policies. Oriflame supports numerous charities worldwide and is a Co-
founder of the World Childhood Foundation oriflamme .
Oriflame set up a service center in Delhi to recruit the first level of
distributors. These were the people usually known to the officials of the
company and were called the core group”. These distributors had the
authority to recruit more distributors who are called the “downline” . So
multiplied. Now, the distributors who are recruited by the company are
allowed only to sell to friends, relatives and acquaintances. Oriflame
range of Skin-Care an colour cosmetics products are deliberately
premium range of products is hardly likely to be effective and runs the
danger of degenerating into forced selling. In India, the salesman is still
looked upon with suspicion. As a result, the products he harks will
hardly be viewed with confidence. Every Oriflame distributors starts the
same way. One has to be recruited by another Oriflame distributor. The
trick is to look for a distributor profile, which is similar to the target
customer. The Distributor Application form is to be filled by the person.
The prerequisites visit are that the person should be more than 18 years
age and should be introduced by an existing distributor. Once the form
is deposited with a registration fee of Rs. 800/- a starter kit is being
provided. This is a unique sales kit having product samples and
literature this is to be used as a display and demonstration tool to start
the business. This kit also contains free AF and distributor order forms.
PRODUCT ORIFMLAME has a wide variety of product lines and product
ranges which are: • Skin care: Nourishing hand cream, optimal white
day fluids SPF 15, Diamonds cellular anti-ageing cream, Optimal nutri
calm night creams, optimal nutri calm day cream. • Make up: Renewing
hand scrub, Lip spa therapy, Matte control pressed powder light and
medium, Matte control foundation, Oriflame beauty studio artist
(lipsticks), kohl pencil (eye pencil) • Fragrances: Ascendant deodorant
spray,sun eau de toilette, Mid-night pearl eau de perfume, • personal
care: Oriflame hippo soap, tear-free hair and body wash, fairness soap,
Hair X care protect shampoo. • Accessories: Oriflame beauty mirror,
Hair X cushion brush, Foot file, Anti cellulite massage.
PRICE • ORIFLAME does premium pricing for its few products which are
for the upper class. • There are products at various prices which is
affordable by students and professionals. • Whereas, they have a
complete range of products for middle class easily affordable.
PLACE • Oriflame does direct selling. The products of oriflame are
available on the oriflame shops or outlets only. There are no retail
outlets of oriflame. Like in Pakistan oriflame shop is located 14-A
Ground Floor Ali Block New Garden Town Lahore and BC-11 Schon
Circle Block-9 Karachi • Oriflame even sells its products online. They sell
either through Facebook or through its official site www.oriflame.com.
• Oriflame even appoints its customers to sell its products that is
through it scheme "Make Money Today and Fulfill Your Dreams
Tomorrow."

PROMOTION ORIFLAME has done many promotional activities to

promote the company and its products:
• ORIFLAME has never done any promotion through media. All the
promotion of ORIFLAME is done by “WORD OF MOUTH” promotion.
They have not created any adds for the products. But in 3 to 4 months
they make their new catalogues in which they tell the customers how
they have upgraded their products and if any new flavors or a new
product itself has been created.
• One promotional strategy is that at Oriflame you have the opportunity
to become a Consultant and, on the same day, show the catalogue to
friends, neighbors and colleagues, take an order and earn money
immediately. Tomorrow you can invite people you know to also become
Consultants, start building your team and enjoy unlimited earnings.
 MISSION - BEAUTY FOR ALL
For more than a century, Lakme and oriflame 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 and oriflame 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.
Beauty is universal. Since its creation by a researcher, the group has
pushing back the frontiers of knowledge. Its unique research arms it to
continually explore new territories & invent the products of the future,
while drawing inspiration from beauty rituals the world over. Beauty is
science. By drawing on the diversity on its teams, & the richness & the
complementarily of its brand portfolio, Lakme and oriflame has made
the universalisation of beauty its project for the years to come.

CHAPTER 2
CONCEPTUAL FRAMEWORK/ NATIONAL
AND INTERNATIONAL SCENARIO
NATIONAL SCENARIO OF LAKME
The government the company has to convert 30%of the land area into
green land to make the environment eco-friendly, incurring extra cost
for the company. Trade Restrictions& Tariffs: the company has to bear
charges for crossing the state borders for the purchase of raw materials
and the delivery of finished product. Economic Factors the purchasing
power of a prospective customer as well as the firm's cost of capital is
affected by various economic factors. Some economic factors include:
Inflation Rate: the inflationary period is adversely affecting the company
as the raw materials, machineries, etc. have to be purchased at a higher
price. Interest Rates: the rate of interest on corporate loan is 12% and
the company has to pay a tax of 60 lakhs per year as tax. 3. Social
Factors Demographic and cultural aspects form a part of the social
factors. These factors affect the customer needs and size of the
potential market. Some social factors include:  Health Consciousness:
keeping the safety of the end users and social responsibility in mind the
company has used the chemicals that are not harmful for the skin and
are a bit costly than the other chemicals. Environment Norms: keeping
the environment norms in mind, the company has converted 30% of its
land into the green area and also used eco- friendly paper for the
purpose of packaging. Emphasis on Safety: the company has
emphasized on employee safety and has taken an employees' insurance
policy of Rs.1 crore with an annual premium of Rs. 50000/-.
 Technological Factors: Technological factors include ecological and
environmental aspects. Some technological factors are as follows:
Research and Development: the company will have to spend a lot on
the research and development of the product in the upcoming years as
the company has the advantage of being a pioneer in launching such a
product in the Indian market and the product will be easily copied by
the competitors. Thus, the company will have to continue investing in
the research and development activities to keep a firm hold in the
market. Technology's Effect on Firm's Offering: The increase in the R&D
cost will affect the firm's offering as the cost of the product will increase
with increase in R&D cost. Segmentation, Targeting and Positioning
Market Segmentation a number to be proud of but seeing the strength
of the platform in India, it is not a number to complain about. Business
Plans. Matchless products: Every year Lakmé launches captivating
products. These products are designed so that they cause least harm
even if used regularly. Some of its famous products are Lakmé Absolute
Youth Infinity, Absolute Gloss Range, Skin Care Reflection Serum, Skin
Gloss Gel Cream, Overnight Mask and Lakmé Absolute Gloss Addict
Effective Marketing policies. Affordable: The prices of these cosmetics
are kept in the range of a common man. Lakmé provides quality at
affordable prices. This is one of the main reasons behind its popularity.
Promotions by Brand Ambassadors: Choosing the most popular Style
Diva as their brand promoter’s increase their trust in the customers. Till
Dec 19, 2014 it was kareena kapoor and the very gorgeous Shraddha
Kapoor has now acceded the throne. Social Media: Apart from the use
of Facebook and Twitter, the brand trust on YouTube for its increase in
product sales. This has been made possible by the incorporation of the
learning tutorial –Lakmé Studio of Style. Lakmé Studio of Style: A
Unique bunch of tutorial hosted by Sarah Janes Dias. Sarah is an Indian
actress, host, VJ and former Beauty Queen. The hostess thus has good
beauty sense and communication skills and is therefore able to drive
large customers to the company on versational and publish updates
that are share-able. Various initiatives by Lakmé are as follows:
1) Project Shakti: Project Shakti is an initiative to financially empower
rural women and create livelihood opportunities for them. Through this
project, the Company endeavors to enhance livelihoods of rural
women. Around 70% of Shakti Ammas are working in low Human
Development Index.
NATIONAL SCENARIO OF ORIFLAME
NEW DELHI: Sweden-based direct seller Oriflame is expecting India to
be among its top two markets in next five years globally as the company
is upbeat after the recent guidelines issued by the government for the
sector. Oriflame is expecting a sales turnover of around Rs.1,500 crore
in next four years and it believes that skin care and wellness would be
its growth driver. "We have been growing at 20 per cent yearly and we
expect to keep the same rate... We are already among five markets for
Oriflame, we should be number two or number one market," Oriflame
Senior Director, Regional Marketing, South Asia Juan Carlos Posada told
PTI. Oriflame India, which started its operation in India in 1996,
presently has turnover of around Rs.1,000 crore. The company believes
that India as a market has a huge potential and would penetrate at
places in coming years with its focus on technology. "India is a huge
territory and with more accessible technology and our focus on digital,
we will be able to penetrate many places where we are not present
now," Posada added. The company presently offers a product range of
over 400 and most of them are in cosmetics, personal healthcare and
wellness."36 per cent of our revenue is coming from skin care, 22 per
cent from cosmetics and 10 per cent from wellness," he said. Over
expansion of product portfolio, Posada said: "We are clear on our focus,
wide assortment in cosmetics products and Wellness. More than a
larger portfolio is a more advanced one. And we plan to wider our
Wellness portfolio, , Posada said: "We are clear on our focus, wide
assortment in cosmetics products and Wellness. More than a larger
portfolio is a more advanced one. And we plan to wider our Wellness
portfolio, a category that we just introduced in 2015 with extremely
good results". which has two manufacturing units here, has a network
of 2.5 lakh direct sellers in India.
INTERNATIONAL SCENARIO OF LAKME
The company plans to open 110 cosmetics shops outlets across the
globe next year, the share of Indian market to Lakme turnover of euro
15.8 billion small, but is growing. With other emerging economies
India’s contribution to global cosmetics amounts to 60%. Lakme turns
to cheap products to spur future growth. Lakme is focusing on south
market & is planning to open 10 stores in Chennai & Hyderabad. The
company has drawn up a fresh strategy, including aggressive discounts
& opening up of new stores. At present the company is operating 25
stores in 8 Indian cities under a franchise agreement with retail major
Future group.
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 ‘•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,
and it all fulfills their needs. 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.

INTERNATIONAL SCENARIO OF ORIFLAME

Beauty by Sweden
Because we’re from Sweden we have a different view on beauty. It’s not
only how you look, but how you live, feel and act. It’s a way of life; to be
healthy, enjoy beautiful skin, express yourself and realise your
aspirations. At Oriflame we also believe in responsible beauty, creating
safe products that are inspired by nature and powered by innovative
science. As a corporation, we are deeply committed to our sustainability
strategy, striving to minimise our business’ environmental footprint and
to enable positive change around the world.
Make money today and fulfil your dreams tomorrow.
We believe that starting your own business should be affordable and
accessible to everyone. Our business opportunity offers you low-risk
entrepreneurship and more: for a modest joining fee, you can start your
own business, enjoy earning money from day one by selling our
products and become part of our global community. You decide on how
to combine your beauty business with your life and you choose whether
you want to build an extra side income or grow it into a business of your
own, and we will support you with tools and trainings to help you
succeed. Today, Oriflame is a direct-selling cosmetics company present
in more than 60 countries worldwide. Its vast portfolio of Swedish
natural products is marketed through a sales force of more than 3
million Advisors, reaching annual sales of around Rs. 1.4 billion. Its
history has 1967 Founded in Sweden.
1970 First Oriflame Consultants start selling in the UK
1972 Oriflame Ireland opens as a licensee
1988 First Catalogues published in the UK
1998 Change to current Success Plan
Seize the Oriflame opportunity today. When Jonas and Robert gave up
their stable jobs 50 years ago, people thought they were crazy. But they
had a great idea in mind, and an even greater ambition. With a belief
and unyielding positivity, they made Oriflame one of the largest beauty
companies in the world.

CHAPTER 3
PRESENTATION, ANALYSIS AND FINDINGS
Financial Analysis
LAKME
Today, a third of India's population needs cosmetics. The term "need"
applies to the people who have been diagnosed with vision issues, but
only about a quarter of them use of cosmetics. When we sum up the
number of people who choose to wear different kind of makeup as a
fashion look the figures are staggering. Customers in this group are
interested in having several types of makeup to go with a range of
outfits. Every day in India, over 15 lacs cosmetics product are sold. The
industry is highly divided, dominating. This eyewear industry has taken
a new turn since 1952; 70 years ago lakme was born.
.

Lakme is an Indian brand of cosmetics founded by Hindustan Unilever in

1973. Lakme started as a 100% subsidiary of Tata Group. Tata’s entered
into a 50-50 joint venture with Hindustan Lever Limited In 1995. In
1998 Tata sold off their stakes in Lakme Lever to Hindustan Lakme Lever,
for Rs 200 Crore Lakme Lever Private Limited is an unlisted private
company incorporated on 01 December, 2008. It is classified as a private
limited company and is located in Mumbai City, Maharashtra. It's
authorized share capital is INR 91.00 cr and the total paid-up capital is
INR 35.91 cr.Lakme Lever Private Limited's operating revenues range is
INR 100 cr - 500 cr for the financial year ending on 31 March, 2021. It's
EBITDA has decreased by -28.36 % over the previous year. At the same
time, it's book networth has decreased by -9.11 %. Other performance
and liquidity ratios are available here.Description: The company
provides beauty care services in the area of skin and hair through own
beauty salons and franchisees in India.Products & Services: Product-
makeup, Skin care, / LAKME Salon, Lakme Fashion Week
Category: Manufacturer & Distributer The current status of Lakme
Lever Private Limited is - Active. The last reported AGM (Annual General
Meeting) of Lakme Lever Private Limited, per our records, was held on
03 August, 2021. Also, as per our records, its last balance sheet was
prepared for the period ending on 31 March, 2021. Lakme Lever Private
Limited has five directors - Nikhilesh Natwarlal Panchal, Pushkaraj
Prakash Shenai, and others. The Corporate Identification Number (CIN)
of Lakme Lever Private Limited is U24247MH2008PTC188539. The
registered office of Lakme Lever Private Limited is at Unilever House, B.
D. Sawant Marg, Chakala, Andheri (East),, Mumbai, Mumbai City,
Maharashtra.

ORIFLAME
ORIFLAME INDIA PRIVATE LIMITED is a Private Company, who was
incorporated 27 Year(s) 8 Month(s) 8 Day(s) ago on dated 25-Aug-1994.
ORIFLAME INDIA PRIVATE LIMITED is classified as Non-govt Company
and is registered at Registrar of Companies located in ROC-DELHI. As
regarding the financial status on the time of registration of ORIFLAME
INDIA PRIVATE LIMITED Company its authorized share capital is Rs.
850000000 and it’s paid up capital is Rs. 798962160.
Oriflame India Private Limited is majorly in Business Services business
from last 28 years and currently, company operations are active.
Current board members & directors are MANJIT SINGH BAWA,
SUBRAMANIAN SITARAMAN, CARLOS ALBERTO ZURITA ALDRETE,
SERGEY KANASHIN and SWATI SHARMA . Company is registered in Delhi
(Delhi) Registrar Office. Oriflame India Private Limited registered
address is Ground Floor, Corporate One, Plot No.5, NHCC, Jasola New
Delhi South Delhi DL 110076 IN.
Operational Analysis
Omni-Channel Model
LAKME AND ORIFLAME runs its omni-channel business and has built the
foundational capabilities to marry all activities used to make a product or
service that includes designing, purchasing raw materials,
manufacturing, development, etc with all the activities associated with
selling a product or service: finding, reaching, and attracting customers;
transacting a sale; distributing the product through multiple channels, or
delivering the service. And this becomes possible because of the
following reasons:

Buy Anywhere Return Anywhere

The consumer can discover LAKME AND ORIFLAME PRODUCT through
an app at the comfort of their homes and then can walk into a store to
get a look and feel the product at any point in time to make the
purchase getting a seamless customer experience on all touchpoints.
Easy Returns & Refunds
A consumer shopped at a brick-or-mortar store can return the order
through any digital storefront (apps/desktop website/mobile website)
and vice-versa.
Stock Availability & Visibility across channels
It is essential that the consumer can discover and place the order of a
particular frame from any of the channels, be it through an online front
(apps/m-site/desktop site) or through a retail store. Also, it is
imperative for the company to keep a check on stock availability in real-
time to avoid orders being placed on out-of-stock inventory that can
further lead to delayed delivery time. Lakme and oriflame maintains up
to 99.7% inventory stocktaking to provide a smooth buying experience.
Focusing on what matters
It takes a collective effort and coordination amongst many teams (e.g.,
e-commerce, stores, marketing, technology, etc.) to convert this
comprehensive strategy into a seamless customer experience. From
discovery to post-purchase, there are majorly three key verticals on a
macro level that need to work in sync to make this end-to-end process
seamless: the supply chain, storefronts, and the retail operations.

Storefront
These are
consumer-facing channels that are used by users to discover the
products on digital platforms such as mobile apps (android/iOS), mobile
and desktop app, assisted channels and physical marketplaces. Building
storefront requires a product & platform development to support
thousands of users that use the application daily while ensuring they
get an outstanding buying experience. While to an end-consumer
placing an order is as seamless as Browse, Select & Purchase; the
journey to reach this stage hasn’t been so linear. Product team must
address several challenges to make this experience seamless such as
discovery, sizing colour , refunds, building a platform to support this
growth etc. Once the purchase is complete and the order is registered
in our Order Management System; it moves in the processing stage
where picking of the cosmetics product ordered begins.

LAKME AND ORIFLAME Omni-Channel Model

Supply Chain
The journey from order receiving to dispatch is an elaborate one.
Picking process: The pickers collect the frame & lenses from the
warehouse and relay the tray through a conveyor to the
Quality Check: Here each frame goes through a rigorous QC process to
make sure a perfect and right product are shipped to the users.
Packing: Post this, the packing of product is done with a primary and a
secondary packing.
Dispatch: Finally, received by the dispatched team where the order is
sorted based on the type of order and courier it is being shipped from.
Hardcore technology development has been done and imbued for each
of these above steps to execute them to perfection with highest levels of
productivity & accuracy.
 Retail stores and POS
Offline stores are key to execute an omni-channel strategy and it is
ardent to integrate all customer touch points to make it omni-channel
in true sense. Lakme and oriflame ops team ensures store operations
and finance are in sync and function smoothly across all stores either by
introducing technology interventions that can empower the store staff
to provide better customer experience or become more productive in
their day-to-day activities.
In the upcoming parts they have plans to
expand on each of the verticals and how Lakme and oriflame is using
technology and product innovation to make it easy for users to discover,
browse and purchase from the platform.

SWOT ANALYSIS OF LAKME

Strengths :
• High Brand awareness: Lakme is a well-known brand in the
cosmetic & beauty industry. High visibility through targeting high
end beauty parlors/salons & also through sponsoring fashion
events and strong promotions has helped the company in making
top of mind awareness.
• Fantastic product line: Lakme contributes to the beauty of women
 through a fantastic product line, which has amazing depth of
products. Lakme is also known to launch a variety of cosmetics
which are innovative and are known to sole the problem of
cosmetics for women.
• Extensive distribution system of the parent company: HLL is the
parent company who purchased it from TATA group. Since HLL is
already an established FMCG brand so it uses extensive
distribution channel to make the Lakme products available in the
market. Also in addition to traditional channel, it also uses
unconventional distribution system to make the products available
at pharmacist, beauty parlors & salons.
• Celebrity endorsement: Lakme positioned perfectly in the mind of
prospective consumers by targeting apt celebrities to represent
their brand.
• Strong parent company: HLL the parent company is the well-
known company in the FMCG industry has stable financial position
which is good for its group brands.

Weaknesses :
• Limited presence in the premium market: Lakme have presence in the
VFM (Value for money) segment in which it is leader. Lakme is the
overall market leader in the color cosmetic segment (lip care and nail
enamel) with a wide range of products and prices but when it comes to
premium market which is growing at the rate of 30% Revlon is the market
leader.
• Problem of differentiation: Its broad portfolio sometimes
creates confusion in the mind of the consumers. Such that, some
products are known to be very good but others are ignored because no
differentiation is present for them.
• Quality of Lakme salons: Falling quality of Lakme salons will result in
the negative word of mouth which can affect sales & growth of the
company in future.
Opportunities :
• Changing lifestyle: Migrating population & with the saturation of
developed economies, changing taste & preferences, Education &
changing lifestyle of the developing economies had resulted into
growth in the grooming segment. People now want to look sharp,
smart & confident.
• Growing premium segment: There is a growth in the demand of
premium segment goods of which grooming industry is not an
exception. So with growing demand if Lakme extend its presence
in this segment then it will help it in becoming a leader in
 grooming industry.
• Co-creating the growth strategies: Creating more Collaborative &
participative community focused activities will help the company
in building brand image & co-creating growth opportunities.

Threats :
• Intense rivalry: Intensive competition from the local, national &
International players on price & availability factors is the major
threat for the players in the segment which is affecting the
industry as a whole.
• Counterfeit products: Fake products are directly affecting the
brand image of the company in the rural market & small towns.
• International brands extending into other markets: International
brands like Revlon which have centuries of expertise in the
Personal care industry can affect the business of Lakme in the
selected markets or can limit their growth rate.
• Increasing allergies cases: Due to change in the lifestyle skin is
becoming more sensitive due to which companies in the personal
care industry face risk of losing sales on allergic grounds.

SWOT ANALYSIS OF ORIFLAME

Strengths :
• History of the brand: Oriflame has a history of over 45 years and is
one of the earliest companies to have established a strong market
presence through multi-level marketing model. The company has
also been into avid research and have shown proven success in
understanding skin types and related issues.
• Natural ingredients: Customers today are increasingly conscious of
the ingredients in every product they use. Oriflame uses natural
ingredients in all their products and their products are also not
tested on human beings on animals for side effects. Both these
increase the appeal of the brand amongst customers.
• Three-pronged distribution strategy: Oriflame uses a three-
pronged strategy to sell its products namely direct selling, catalog
marketing, and online selling. This not just helps them gain access
to more customers but also gives their clients multiple options to
choose from based on their convenience in each situation.
 • Advertising strategy: Quite unlike competitors like Amway,
Oriflame has never relied on magazines or television
advertisements.In fact, they primarily use word of mouth
advertisements and testimonials from customers which are
featured in the catalogs, brochures, and website for advertising
which in turn cuts down the promotional budgets significantly.
• Commitment to sustainability: Oriflame through cutting down the
usage of paper by featuring products online and also streamlining
their logistics network has displayed the increased commitment to
sustainability a growing concern in today’s world.

Weaknesses
• Difficulty in recruitment: Oriflame primarily looks at homemakers
or unemployed women to recruit as sales representatives. As the
number of working women have grown, Oriflame is finding it
difficult to get good sales representatives which in turn is affecting
their business model.
• Inability to meet expectations: In a bid to get in more sales
representatives, Oriflame has often been alleged to inflate the
expectations of their representatives in terms of commissions and
perks. However, once they become part of the network, these
representatives realize that their commissions are commensurate
with the volume of sales they are able to generate and they feel
disillusioned.
• Quality issues: I’m the comparison to earlier days the customer is
more exposed to higher quality brands and in comparison to them
Oriflame products seem low grade and cheap. This makes it
challenging for sales representatives to get the necessary sales for
the company.
• Poor training: The success of a multi-level marketing firm is about
how the representative is able to convince the customer since that
is their only interface with the company, Oriflame does not give
regular training to their representatives on products or on selling
skills with the result that their agents are not able to get good
business for the company.
Opportunities
• Need for something extra: As the rate of inflation increases people
who already have jobs often scout for an extra source of income to
supplement their basic source. This is an opportunity that multi-
level marketing companies can target but with the right training and
strategy.
Threats
• Competition: The main competitor of Oriflame are Avon, Amway,
 Amazon, Flipkart and A
• Online retailers: The presence of online retailers is making it
simpler for the customer to have access to better quality brands
and more products from the global market from the comfort of
their home or office. Though Oriflame also sells online, it has not
been able to replicate the success of popular retailers like Alibaba,
Amazon or Flipkart.

LAKME MARKETING STRATEGY

Lakmé is an ally to the Indian Woman and inspires her to express her
unique beauty andsensuality .Thus , the potency of her beauty.
Contemporary Indian beauty expert Lakmé continuouslyi nnovates
tooffer awide range of high performance and world class colour
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. Corporate overview: Lakmé is an Indian
brand of cosmetics, owned by Hindustan Unilever and run by CEO
Pushkaraj Shenai. Lakmé started as a 100% subsidiary of Tata Oil Mills
(Tomco), part of the Tata Group. It was named after the French opera
Lakmé, which itself is the French form of Lakshmi, the goddess of
wealth, also renowned for her beauty. Indian cosmet Lakmé 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 Lakmé 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, Lakmé still
occupies a special place inthe heartsof Indian women. Lakmé is the
current market leader in the Indiancosmeticsmarketwitha17.7percent
market share. Lakmé also started its new business in the beauty
industry by setting up Lakmé Beauty Salons all over India. Now HUL
(Hindustan Unilever Limited) has about 110 salons all over India
providing beauty services. In the Brand Trust Report 2012, Lakmé was
ranked 104th among India's most trusted brands and subsequently,
according to the Brand Trust Report 2013, Lakmé was ranked 71st
among India's most trusted brands.
In 2014 however, Lakmé was ranked 36th among India's most trusted
brands according to the Brand Trust Report 2014, a study conducted by
Trust Research Advisory, a brand analytics company. The company is the
title sponsor for Lakmé Fashion Week (LFW) a bi-annual fashion event
which takes place in Mumbai History Way back in the early 1950s, an
economic survey of spending in India revealed that Indian women were
splurging on imported cosmetics. Nehru was not very happy because it
was affecting the forex reserves. Maintaining the forex reserves was of
utmost importance considering the fact that Indian economy. Nehru hit
upon the idea of a home grown beauty brand which would cater to
cosmetic needs of Indian women.
GROWTH OF LAKME
India’s ₹97,000-crore beauty and personal care market is undergoing a shift,
especially with smartphone-wielding millennials searching for latest beauty
trends, and are willing to experiment. Higher disposable incomes are also making
shoppers spend more on grooming products and services.
Lakmé, which was among the first beauty brands to be launched in India back in
the 1950s, is keeping pace with these trends. Lakmé crossed the ₹1,000-crore
mark in sales in 2017-18, joining the league of brands such as Lux and Vim that
have breached the ₹1,000-crore sales mark in HUL.
In a recent earnings presentation released by the company, it noted that
innovation-led growth in its coloured cosmetics portfolio had helped the turnover
of such products grow 2.3 times between FY13 and FY19. The firm said 150 stock
keeping units are being launched every year on an average.
The trend to launch premium beauty products has been on the rise, as it seeks to
expand its portfolio that traditionally served value-seeking shoppers.
As a result, its portfolio today consists of products priced as low as ₹99 to lipsticks
that now cost ₹1,300.
They added that currently, premium brands are the fastest growing “because
that’s where the market is evolving". Lakmé has also become more aggressive
with its pricing strategy to keep ahead of other mass-market brands, he added.
Lakme’s drive comes at a time when competition in the beauty market is heating
up. Besides, the emergence of online as a popular sales channel for beauty goods
could also pose a challenge to Lakmé, as entry barriers to sell online are low.
Lakmé will need to do more to build its presence online.
In December, Lakmé rolled out its own e-commerce portal to tap into the growing
demand for beauty products online. The acknowledged that competition has also
“intensified". “Competition is good because the penetration of each of these
products and each of these categories in India is still very low," he added .
ORIFLAME MARKRTING STRATEGY
Oriflame launched its direct sales method in 1967 – when the Company
was founded as a vital part of its innovative business concept. Since
then, Oriflame has given millions of people in Russia, Europe, Asia,
South America and Africa the opportunity to start their own business,
often in countries where the freedom to do business was discouraged
or restricted to a self-appointed elite. In that sense, Oriflame has helped
tear down walls. Oriflame built the first cosmetics factory in Warsaw
after the fall of the Berlin wall, was early to enter countries such as
India and one of the first companies to be given a direct sales licence in
China Since the company Oriflame has been established, the company
marketed their products through their force of consultants. These
consultants try to convince as much as people they can to buy the
Oriflame products. The people who wish to buy the products are made
members of the company under the particular consultant. Then these
members enjoy the offers given by the company to them. The members
are given offers such as make specific number of more members and
get discount on specific product of Oriflame, thus this chain goes on.
This increases the number of members as well as consumer of the
company. The example is shown below:

The consultants working for Oriflame should know the art of

communication and to convince the consumers. The senior managers of
the company try to enhance the quality of communication in
consultants. The following are some tips which senior managers give to
the consultants: • Motivate fans to buy Oriflame products • Give tips on
make-over, make-up, fashion, correct usage of products etc. through
different campaigns • Promote the brand with the Brand Ambassador •
Excite fans with buzz content. • Change the lifestyle and the way people
think about it • Promote popular products, discounted products,
products in high demand. Oriflame also sell their products online. The
catalogue which plays the important role in the selling of the products is
uploaded on the official site of the company. The visitor of the site place
their orders on the site by creating their account there. Thus by
providing the ultimate shopping experience to consumers, the Oriflame
catalogue supports the business opportunity to its consultants. The
stronger the consumer offer, the greater the potential to sell and grow
the business.
Alongside the catalogue, online social networks are becoming
significant grounds for sales and recruitment activities, supported by
PR, events, leaflets, posters in service centres and, for major launches in
key markets – TV, print and billboards. Around 50 percent of the sales
force uses the online services and more than half of all orders are
placed through the online ordering system. As demand for online
availability increases the sales force is provided with new tools that
allow them to continue their business activities in this environment,
such as phone and I pad applications, virtual stores on Facebook and a
channel on YouTube. Sales consultants are offered a number of tools to
help them succeed, coordinated in SARPIO – Sales and Recruitment
Processes in Oriflame. SARPIO is the global platform for processes,
training and communication.

It has been developed in order to offer consultants support in

developing and managing themselves and their businesses, while
ensuring that they convey the Oriflame brand in a consistent way. In
2009, Oriflame launched a new management tool for the sales force in
most markets.
This tool helps sales consultants to track performance of their network
and identify action areas that can improve business effectiveness. It also
improves communication with the sales force
GROWTH OF ORIFLAME
India is among one of the "priority markets" for the direct selling Swedish beauty
brand Oriflame , where it expects to continue its double-digit growth over the
next 3-5 years, a top company official has said. The company which sells cosmetic
and wellness products in India also expects a double-digit growth in its sales force,
adding more direct sellers in the coming years.
Amid the COVID-19 pandemic, Oriflame has witnessed an upswing in the wellness
products business, contributing to around 20 per cent of its India business from
the earlier 4 per cent, and expects this trend to continue with some minor
corrections."We have an expectation to continue the double-digit growth over
next 3-5 years and I do not see it as a huge challenge," Frederic Widell, Vice
President & Head of South Asia & MD, Oriflame India, told PTI.Oriflame Holding
AG's net sales for 2021 were 1,016.5 million euro (over Rs 8,400 crore). Widell
refused to share the revenue of the Indian entity, but said the company is having a
"very solid growth" in the country.
Oriflame had entered India in 1995 and was among the first direct selling firms
here ."We are here for the last 26 years and we are very happy with the
progression of our business here," he said, adding, "now we have a good amount
of experience, understand the country and have relevant products."At present, 95
per cent of sales of Oriflame in India comes from online platforms through the app
and websites, and because of this now the company has decided to close many of
its offices in the country. The company has offices in selected metro cities
only."Instead of paying that money to landlords, we are now investing that money
on digital tools and product development. We use to have 20 offices and now we
have only Oriflame has two manufacturing plants in the country -- Noida and
Roorkee -- and 80 per cent of their production is for the domestic market. The rest
20 per cent is exported to other markets of the Swedish beauty brand Widell also
welcomed the government's move to notify the Consumer Protection (Direct
Selling) Rules, 2021 which bans promoting pyramid and money circulation
scheme.
EFFECT OF COVID -19 ON LAKME
Sales during the year ended March 2021, hurt by India's increasing
focus on social distancing nationwide and shutting salons and non-
essential outlets for several weeks. The company, which runs 485
salons, posted sales of Rs230 crore during FY21, compared to Rs284
crore a year ago. The firm also slipped into losses - with net loss of Rs19
crore during the year against profit of Rs6 crore in FY20. "The
profitability for the year has been largely impacted on account of Covid
out . The Rs 20,000 crore salon industry has about 65 lakh beauty
parlours and barber shops. And just like other services sectors such as
retail and restaurants, the salon segment has been hit hard due to
closure as they are deemed non-essential in several states. "Post the
second wave of Covid starting March 2021, salon operations are
affected due to lock downs as per government guidelines. The company
is leveraging the digital medium to train our experts and to stay in touch
with our clients," it added. While the Lakme brand is worth more than
Rs 1,000 crore in revenue, cosmetics products such as eye-liners and
lipsticks generate a bulk of its sales instead of beauty services.
The current pandemic has affected most discretionary categories but
the beauty-services industry could be hit more than some others, with
people relying increasingly on do-it-yourself services at home.

EFFECT OF COVID -19 ON ORIFLAME

2019 was another year with mixed performance for Oriflame, where
the challenges in some of the markets in Asia & Turkey remained
difficult throughout the year, while the positive development in many of
our other geographical areas to a large extent balanced the overall
impact on the group. The strategic product category Skin Care again
proved to be the largest contributor to sales and the Wellness category
continued to perform well despite the challenges in Asia. I am proud to
note that Oriflame’s ongoing work in the sustainability area continued
to receive appreciation for the company´s ambitions and achievements.
All in all a year when Oriflame’s online social selling business model yet
again proved itself to be strong, agile and value creating despite the
challenges we faced in 2019. And the challenges continue into 2020. We
will be impacted and suffer from the consequences of the COVID-19
virus being spread around the globe starting in 2020. It will affect our
ability to conduct physical meetings and recognition conferences, and
puts constraints on the supply chain and order fulfilment. Being a true
people’s business we are committed to the health and safety of our
employees, consultants and consumers, and we focus on actions to help
limit further spread of this virus in society. We are following the
situation closely and adapt our actions according to local government
advice and regulations, whilst at the same time striving to mitigate any
disruptions to our business as well as taking the necessary action to
secure a financially strong company. The successful digitalization of
Oriflame’s business is supporting our consultants with the latest of
technolog tools offering a modern way of social selling. Now being a
private company Oriflame has the right support to continue to take
responsible steps to drive sales, with emphasis on improved cost
efficiency, profitability and cash flow. Our culture of togetherness, spirit
and passion TO stay save.
 FINDINGS & ANALYSIS GENERAL FINDINGS
OF LAKME
• 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.

FINDINGS & ANALYSIS GENERAL FINDINGS

OF ORIFLAME
• From the study it is understood that most of the respondents
attracted to Oriflame Products than other type of cosmetics but
few of the respondents has not used oriflame products.
• It is found that majority of the respondents who use Oriflame are
females.
• The study shows that the opinion about Oriflame Products service
for buying a cosmetic in Oriflame is good.
• The study shows that some respondents are satisfied with price of
the product.
• This study shows that most of the respondents want more shades,
better packaging and more products from the oriflame cosmetic.
 • This study reveals that most of the customers are like to buy
oriflame products from retail shops other than online or mall.
• This study reveals that some respondents think that oriflame
provides quality products.

QUESTIONAIRE
Q1
Comment - According to study and research 59.6% women use
cosmetics and 40.4% men

Q2
Comment - According to study and research 63.8% are use by the age
from 18-25 .

Q3

Comments -- According to study and research 78.7% person u

cosmetics .
Q4

Comments - According to study and research 74.5% person use lakme .

Q5
Com
ment- According to study and research 56.5% person preferring lakme
because of quality .
Q6
Comment - According to study and research 53.3% people get to know
about lakme and oriflame though advertisement .
 Q7
Comment - According to study and research 84.4% people lakme .
Q8
Comment - According to study and research 29.9% people use makeup
product from lakme .

Q9
Comment- According to study and research 45% people use skin care
product from oriflame
Q10
Comment -
According to study and research 89% are satisfied with lakme product .
Q11

Comment - According to study and research 64% people are satisfied

with oriflame product .
Q12
Comment - According to study and research 93% are attract to quality
of product .
Q13
Comment- According to study and research 50% people find lakme
expensive.
CHAPTER 4
CONCLUSION

“Lakme and oriflame of the future would be a global company where

we serve consumers keeping India's manufacturing in focus -- make
sure that India generates a lot of employment. Lakme and oriflame
already helps generate alot of employment in the country, both in
terms of manufacturing and retail. We are a full stack business --
manufacturing to retailers, we will continue to embrace this and make it
as big as possible.”
The overall average sales of oriflame Products are 54.9% in all markets
and Lakme Products are 45.1% in all markets. The average sales in
different markets are as follows :- The average Sales Across East
markets are 50.2% respectively. The average Sales across West markets
are 48.9% respectively. The average sales across North markets is
42.1% respectively. The average sales of Lakme & oriflame across South
markets is 37.2 % respectively. The figure reveal that Lakme & oriflame
has good market penetration in all most all the market covered in the
survey where compared to its competitions, Like HLL, NIVEA and
Others. Still there is a need to Promote Lakme and oriflame to reach at
the level of product like ponds, pears etc. “Monthly survey should be
conducted to improve its brand image and increase customer loyalty”.

RECOMMENDATION

I would like to suggest few points over which a thought can be given to
overcome that drawback due to which some of the problems are faced
by the products of Lakme and oriflame Products.
1. Company should encourage solving the customer’s complaint.
Customer satisfaction should be the ultimate aim so that customer
complaints should be removal.
2. Promotion by local advertisement can also help in promoting Sales
of the products.
3. More promotional schemes should be introduced for customers.
4. Timely feedback should be taken so that all the problems can be
easily removed. 5. The company should provide good margin for
distributorship
 REFERENCES

• "India's biggest cosmetic brand signs Ananya Panday as their

brand endorser". Mid-Day.
• "Top Cosmetic Brands in India". Top10companiesinindia.co.in.
Retrieved 12 November 2015.
• "Top 10 Cosmetic Brands in India". Mapsofindia.com. Retrieved 12
November 2015.
• "Make in India: 10 Indian brands at par with foreign brands". India
Today. 20 February 2015. Retrieved 15 July 2015.
• "Simone Tata". The Sunday Indian. Retrieved 15 July 2015.
• Amarnath & Ghosh; Nischinta Amarnath; Debashish Ghosh (2005).
The voyage to excellence: the ascent of 21 women leaders of India
IncHello. Pustak Mahal. p. 214. ISBN 81-223-0904-6.
• "India's Most Trusted Brands 2014". Trust Research Advisory.
Archived from the original on 2 May 2015.
• "Fashion business poised for dramatic growth: FDCI". Times of
India. 2 August 2002. Retrieved 1 April 2012.
• "Wellness by Oriflame". Oriflame.
• "Oriflame investor relations". Oriflame. Retrieved 3 August 2020.
• "Oriflame: Inspired by Nature, Powered by Science". Direct Selling
News. Retrieved 18 August 2020.
• "Oriflame: Annual report" (PDF). Oriflame. Retrieved 17 April 2020
 BIBLIOGRAPHY

NEWSPAPER:
The Economic Times
BOOKS:
Gupta, S.P., Statistical Methods,Sultan Chand & Sons Publisher, Third
Edition,2011
Kothari,C.R., Research methodology-Methods & Techinques, New Delhi,
age International (P) Ltd., Publisher, Second edition,2009
Varma Agarwal., Marketing research, Forward Book Dept , 2010.
Kotler Philip., Marketing Management, PHI Pvt.Ltd., New Delhi, 2009
WEBSITE:
www.arno.unimass.nl/show
www.ibimapublishing.com

ANNEXURE 1- QUESTIONNAIRE

1.NAME*

2.Email ID*

3.Gender*
Male
Female
Prefer not to say
4 .Age*
18 - 25
25 -35
35 - 45
45 and above
5.Do you use cosmetic products?*
Yes
No
6.which brand product you use in cosmetics ?*
Lakme
Oriflame
7.Reason for preferring the above brand?
Price range
Quality
Availability
Discount and offer given by brand
8.How do you come to know about the lakme and
oriflame ?
Though advertisement
Though friends
Though internet
9.Do you think which brand provides quality products to it's
customer ?
Lakme
Oriflame
10.What all products of Lakme do yous use?
Hair
Skin care
Nail paints
Makeup products
All of the above
11.What products of Oriflame do you use?
Skin care
Makeup products
Hair
Bath and body
All of the above
12.Are you satisfied with the products of Lakme?
Yes
No
13.Are you satisfied with the products of Oriflame?
Yes
No
14.In the future which types of incentives will attract you?
Quality price
Discount offer
15..Which company's product do you find expensive?
Lakme
Oriflame
Both