Lakme Case Study Essay

Excessive priestess of sacred Indian temple meets English military officer who’s unwittingly strayed into holy floor. 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 title Lakmé (French for Lakshmi, the title of the priestess). The present dimension of the Indian beauty market is roughly US$ 600 million. Of this, the quickest rising phase is colour cosmetics, accounting for round US$ 60 million of the market.

Business sources estimate a fast development charge of 20 p.c each year throughout totally different segments of the cosmetics trade reflecting an rising demand for all types of magnificence and private care product. Development has come primarily from the low and medium-priced classes that account for 90 p.c of the cosmetics market when it comes to quantity.

Even with a 20 p.c common development charge, the per capita consumption of cosmetics may be very low in India. Present per capita expenditure on cosmetics is roughly US$ zero.

68 cents as in comparison with US$ 36.65 in different Asian international locations. Nevertheless, with altering existence, larger disposable incomes, rising promoting, penetration of satellite tv for pc tv, consciousness of the western world and rising significance of magnificence pageants, there have been vital adjustments and use of cosmetics is on the rise.

Lakme, a model initially launched by the Tata group of India, now purchased over by Hindustan Unilever (HUL) of the Unilever group, Ideas & Toes, one other home participant, and Revlon dominate the US$ 60 million colour cosmetics market. Multinationals, Revlon of the U.S. and L’Oreal’s Maybelline has a dominant share of the small premium lipsticks and nail enamels market. Mass-market merchandise account for a significant share, whereas the premium phase accounts just for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. Lipsticks account for practically a 3rd of the market at US$ 21 million, whereas the marketplace for nail enamels is estimated at round US$ 23 million. The colour cosmetics phase may be very aggressive and has a excessive penetration stage of 80 p.c.

The skincare market in India is estimated at US$ 180 million. Throughout the final decade, this phase has seen many shoppers slowly shift from the mass to the premium finish of the market. The penetration charge is excessive within the skin-care phase as in comparison with colour cosmetics. Within the skin-care phase, value and quantity performed an equal position in worth development. Moisturizing lotions, equity lotions and face cleansers are the favored classes within the skin-care phase and account for about 60 p.c of the skin-care phase. The most important gamers on this segments are Lakme, Ponds, Honest & Pretty of the HUL group with a 50 p.c market share, adopted by gamers akin to J.L. Morison that markets the Nivea vary of merchandise in India, Godrej and Revlon.

Penetration ranges of worldwide cosmetics manufacturers in India are nonetheless low. Overseas manufacturers at the moment represent solely 20 p.c of the market. A significant motive for low penetration of worldwide manufacturers might be attributed to excessive pricing. These corporations initially gained gross sales on their worldwide model picture, nonetheless, repeat purchases weren't forthcoming and to retain their gross sales development, a number of overseas corporations reformulated value methods to faucet the massive Indian center class. City ladies within the center and higher earnings teams within the age vary of 23-50 is the goal group for worldwide manufacturers, as this group appears for higher merchandise and is prepared to pay a premium for worldwide high quality merchandise. Business estimates counsel that there are near 10 million such ladies in India.


By not following the standard mode of promoting, Lakme Unilever, adopted totally different technique for the product launches The corporate don't use mass media advertising for the launch or promoting Lakme Merchandise; They've adopted the training’ technique meaning they educate their buyer about using the merchandise. Getting the main target proper

The ‘aspirational’ qualification would imply Lakmé would compete at what the corporate phrases the ‘upper-mass’ (premium) finish of the colour cosmetics spectrum (merchandise priced between Rs 85 and Rs 250) the place a slew of rivals are already slugging it out. And style consultants like Meher Castelino consider the model instructions an edge on the high-end: ”By appropriating the style platform for itself, Lakmé has entrenched itself on the glamour-end.” Getting the unfold proper

The premium phase, nonetheless, is only a slice of the Indian marketplace for color cosmetics (estimated dimension: Rs 275 crore). Immediately, the corporate has three manufacturers: Lakmé itself, which will likely be positioned as a fashion-brand.

Promoting Methods by Lakme

In-store sampling

Lakme has in-store path merchandise. Because it within the cosmetics market it is vitally important to supply samples, many shops in Mumbai every so often have Lakme sampling gives. The place they mean you can attempt the product after which purchase it.

Model placement & Occasion sponsorship

Model placement usually referred to, as product placement is the gross sales promotions strategy of getting a marketer’s model featured in films and tv exhibits. When a agency sponsors or co-sponsors an occasion, the model featured in an occasion instantly features credibility with the occasion viewers. The viewers attending an occasion already has a optimistic perspective and affinity for the competition that they select to attend. When this viewers encounters a model on this very favorable reception surroundings, the model advantages from the already favorable viewers perspective. Lakme India Style Week, thus creates a optimistic picture and has a big impact on the gross sales of a model. Lakme’s affiliation with the annual Lakme India Style Week (LIFW) has helped considerably within the model’s development chart. A magnificence model, like Lakme, should at all times stay up to date and outline tendencies. The LIFW has definitely helped Lakme purchase that place. Product ranges have been launched yearly to coincide with the occasion and have met with appreciable success.

Web promotions

They're the latest type of gross sales promotions. They're promotions which can be accomplished by way of the Web. It's turning into more and more fashionable due to the massive use of Web. Lakme gives its big selection of pores and skin and hair merchandise in addition to salons via its web site


Lakme is a model launched with a definite idea – “supply of radiant magnificence”. The model appeals to a definite market phase who respect and just like the model idea. The core concept is that the model connects with the patron group. Now the purchasers don't are usually content material with the one product, which the model gives. Relatively they need extra product which go hand in hand with the model idea or utility; for instance a Lakme person desires all of the merchandise which improve beauty-beauty lotion, deep pore cleaning cream, lipsticks, nail enamel, eye make up and many others.

Line branding technique illustrates how effectively cultivated model might be prolonged on to a bunch of associated merchandise beneath a typical idea. This technique seeks to penetrate the client slightly than penetrating the market. It seeks to fulfil all complementary wants that encompass a primary want. Line manufacturers begin with a product however later lengthen too an entire vary of complementary merchandise. The merchandise within the line draw their identification from the primary model. Advertising and marketing merchandise as a line enhances the model’s advertising energy slightly than promoting them as a person model.


* Loyalty programmes and reward programs: As a part of its advertising technique, Lakme Unilever Ltd eliminated loyalty programmes and inspired magnificence salons. Lakme Unilever has additionally launched ‘New Lakme Magnificence Salon Rewards Programme’ with a tagline ‘Get advantages value Rs three,225 for Rs 350 solely’ to draw clients. There are additionally totally different magazines and booklets designed with acme promotion and stuffs. * New look of Web site: he firm additionally re launched a brand new trying Web site to have a change in advertising of the corporate. * Direct Advertising and marketing for ‘Lakme Pure Protection’: Deviating from the standard mode of promoting, Lakme Unilever opted for direct advertising idea to create consciousness for his or her new launch ‘Lakme Pure Protection’. The corporate deployed a bevy of magnificence advisors at 1200 Lakme stores throughout the nation to advertise its new launch-dumping mass media advert campaigns. Their technique is to not use mass media promoting to advertise Lakme Pure Protection-the first of its sort throughout the globe. As a substitute, they opted for the ‘training’ path to create consciousness for his or her product.

* Tie-up with Schwarzkopf: Lakme had a latest tie up with FMCG Participant Henkel group’s excessive finish hair product manufacturers Schwarzkopf Skilled. Presently, Lakme has over 100 salons throughout the nation. Underneath this unique pact, Lakme will use Schwarzkopf hair care merchandise in all its salons. In return, Schwarzkopf will present coaching for hairdressers within the salons. * Lunched in Sri Lanka: Hemas Advertising and marketing has expanded the vary of Lakme skincare merchandise it markets in Sri Lanka, and unveiled a brand new worldwide brand and picture for the model. Launched in Colombo, the additions to the Lakme skincare vary are Nourishing Chilly Cream, Nourishing Physique Lotion, pH-Balanced Face Wash, Calamine Lotion, Solar Display Lotion and Hair Remover.

Future Market Technique

* On-line e-group: Lakme can type some e-group like Sunsilk Gang Of Women GOG) to know client requirement. It requires no formal surveys, straightforward to manage, reduces paper work. In all it used know-how to successfully to advertise the model and advertises the model by means of e-generation. * On-line ordering of Lakme merchandise

* On-line appointments for Lakme Magnificence Salon

Methods Underneath Product Combine

* New product traces might be added to the prevailing one which can be associated or unrelated to the corporate. * Throughout the product line, they will have totally different manufacturers at totally different value factors to cater to totally different segments of buyer. * Development of Lakme Magnificence Salons can present higher show of merchandise and a magnificence adviser could make it way more engaging within the eyes of the client. * Packaging might be improved or modified of Lakme merchandise to make it extra engaging to the client


Promotional schemes provided by Lakme and Revlon

Promotions have emerged as essentially the most economical and efficient option to set up a private rapport together with your clients. They've at all times been part of the shoppers product s sport, however these days, it’s virtually like one can’t purchase a tooth brush with out having to tote a detergent bar dwelling as effectively. A present on a festive event or free with the acquisition of a sure product goes miles in leaving a beneficial mark on the minds of your clients. Advertising and marketing heads are exploring the effectiveness of every product as a present to spice up gross sales. This frenzy has led to a deluge within the vary of modern merchandise getting into this market. Infact, the kind of merchandise getting into the gifting and promotional class is just mind-boggling and differ from product to product. The kind of merchandise provided as a promotional merchandise vary from a small ball pen to costly digital gadgets. Infact, the which means of the time period reward appears to have attained a wider which means. Folks have a tendency to supply nearly any factor beneath the label “Free Present Inside”. Worth Notion could possibly be one motive why this freebie technique is more practical.

5 rupees off means 5 rupees much less to the producer, however a present merchandise which sells for 5 rupees is perhaps sourced for simply Rs. 1- 2, making the provide way more forged efficient. Giant MNCs just like the Levers, Godrej, Philips,revlon and many others. have resorted to giving their very own lesser identified manufacturers free with their fashionable manufacturers and vice-versa. This routinely tends to mirror a greater gross sales quantity so far as each the manufacturers are involved. The businesses have a tendency to avoid wasting their promotional bills and utilise the identical to generate higher gross sales within the respective manufacturers. This development is extensively practiced by the digital trade. The businesses like AIWA and Videocon have been identified to supply irresistible freebies like: a walkman or a small sound system free on the acquisition of a color tv, over 10 CDs free with a purchase order of a sound system and many others. Such strikes by these corporations compelled better-established manufacturers like Onida and many others. suppose on their toes. This development has are available as a zephyr to the lesser fashionable manufacturers striving to determine themselves available in the market.

Corporations that can't make investments a heavy sum in promotion or can't afford to interact in a large sampling train merely tie up with better-known manufacturers for his or her merchandise to be provided as free items. This acts as a mutual profit for each the events, as one achieves higher gross sales whereas the opposite achieves higher publicity at a really nominal expense. There tends to be a small quantity of exploitation of some lesser-known manufacturers in such workout routines, however each factor The newest development as a promotional technique that has set the advertising area abuzz is contests. Each second model appears to be operating a contest to actively contain the customer in his model. The prizes given out by corporations in contests vary from gold, diamonds to vehicles, houses and free journeys overseas. The businesses are tying up massive celebs and operating contests the place the client will get to dine together with his favorite star on successful the competition. Lately Axe for it’s model of deodorant ‘Vodoo’ truly booked a far-off island in Kerela and held the longest dance social gathering.

Clients needed to accurately reply the questions within the type positioned in its pack to qualify for this social gathering. One other womens put on retailer ‘Scullers’ truly ran a contest for the ladies in Bangalore the place one may truly design a garment of their selection – tops, trousers, capris, skirts and shorts – and have it hit the Scullers Womens put on cabinets. Infact a number one beauty firm Lakme additionally ran the same promotion the place clients may create a shade and provides it the title of their selection. It isn't solely the client who's being lured by such advertising gimmicks. The businesses are operating intensive schemes for the sellers too.

Bell ceramics had not too long ago organised a largest social gathering within the ceramics trade for his or her sellers at ‘Tikujini’s Wadi’, Thane. The sellers together with their entire household had been invited to this social gathering. Other than luscious snacks there was an entire lot of leisure actions like video games, competitions and many others. for youngsters. However on the finish of the day what emanates as the best query is, the businesses might have little question charged a premium for his or her services earlier however how secure are they by indulging in such practices? Are the businesses actually benefiting by sacrificing on their revenue margins? Or is it as considered one of a buyer places it “ They've been charging exorbitant premiums earlier, its time they returned some”.

100 Cosmetics Company Essay

Gross sales are for the 2004 calendar yr or the closest fiscal yr on the journal’s printing date in August. Magnificence quantity is made up of perfume, make-up, skincare, solar care, hair care, deodorant, plus cellulite and shaving gadgets. It doesn't embrace bar cleaning soap, razors, toothpaste, meals and weight loss plan meals, drugs, nutritional vitamins or detergents. To be included on this rating, an organization should promote its merchandise in not less than two of 4 main markets: Europe, North America, South America and Asia.

subsidiaries/foremost manufacturers } current historical past Shopper/L’Oreal Paris, Garnier, Maybelline New York, Mininurse,

La Scad, SoftSheen Carson, Yue-Sai. Skilled/L’Oreal Professionnel, Kerastase, Inne, Redken, Matrix, Mizani. Luxurious/Lancome, Biotherm, Helena Rubinstein, Kiehl’s, Shu Uemura, Parfums Giorgio Armani, Parfums Cacharel, Ralph Lauren Fragrances, Paloma Picasso, Parfums Man Laroche. Energetic/Vichy, LarochePosay. Inneov, Galderma, Le Membership des Createurs de Beaute (50%). This February, Lindsay Owen-Jones introduced Jean-Paul Agon will succeed him as ceo of L’Oreal. Agon is to work at Owen-Jones’ aspect till April 2006, when Owen-Jones will turn into non-executive chairman of the agency.

Constructive performances worldwide boosted L’Oreal’s second-quarter gross sales 5. four% year-on-year to e3. 62 billion. Its enterprise gained 1% in Western Europe, four. eight% in North America, 7. eight% in Asia, 19. 6% in Latin America, 35. 5% in Jap Europe and 14. 1% in “different international locations. ” For the primary half of 2005, L’Oreal generated gross sales of e7. 16 billion, a rise of three. 5% over the identical interval in 2004. Final yr, the corporate’s smallest division, energetic cosmetics, was the market chief for skincare merchandise in pharmacies, the corporate mentioned. The department’s international gross sales grew 13. eight% to e852 million.

The buyer merchandise division’s gross sales had been boosted three. three% to e7. 75 billion. Luxurious merchandise’ revenues grew 2. three% to e3. 52 billion. Skilled merchandise’ turnover rose 5. 2% to e2 billion. This Might, L’Oreal introduced its acquisition of U. S. skilled skincare model SkinCeuticals, of Dallas, with gross sales of $35 million. Signe Gammeltoft was named president of Ralph Lauren Fragrances in June. In April, L’Oreal Paris signed actress Eva Longoria as a worldwide spokeswoman. In spring, L’Oreal Paris prolonged its first mass males’s skincare line Males’s Skilled to new markets. Pantene, Olay, Head & Shoulders, Clairol, Natural

Global Cosmetics Industry Essay

The time period ‘cosmetics trade’ often refers back to the ‘cosmetics, toiletry and perfumery’ trade. Beauty merchandise carry out six features: they clear, fragrance, defend, change the looks, right physique odours and hold the physique in good situation. Cosmetics, toiletries and perfumes have change into an vital a part of each particular person’s day by day life they usually have come to be thought to be equally vital as health-related (pharmaceutical) merchandise.

On the premise of product utilization, the cosmetics trade may be divided into 4 segments: luxurious, shopper or place because the chief (since 1980s) within the trade.

In 2000 the European cosmetics trade generated nearly €50 billion in gross sales, which was twice the gross sales quantity of the Japanese cosmetics trade and one-third greater than that of the us cosmetics trade.

L’Oreal has remained the worldwide chief within the trade with a 16. eight % market share, adopted by Estee Lauder with a 10. per cent market share, and Procter&Gamble with a 9. three% market share. Established in 1946 in New York, US, Estee Lauder competed with L’Oreal within the luxurious phase with manufacturers like Estee Lauder, Aramis, Clinique, Prescriptives, Origins, MAC, Bobbi Brown Necessities, Tommy Hilfiger, Jane, Donna Karan, Avenda, La Mer, Stila, and Jo Molone.

P&G, the US-based FMCG producer, compete with L’Oreal within the mass-market phase with skincare, haircare and bodycare merchandise.

A few of P&G’s well-known manufacturers embody Biactol, Camay, Cowl Woman, Ellen Betrix, Infasil, Max Facter(skincare), Natural Essences, Loving Care, Pure Instincts, Good n’ Straightforward Pantene pro-V, Rejoice, Vidal Sasson, Wash&Go(haircare), Laura Biagiotti, Hugo Boss, and Helmut Lang(perfumes). The US-based Revlon inc additionally in contrast with L’Oreal within the mass-market phase with manufacturers like Charlie, Colorsilk, Colorstay, Fireplace&Ice and Skinlights. Different firms like Avon, Kose, Coty and Shiseido competed globally within the mass-market phase.

L’Oreal remained the general trade chief, because it was the one firm that competed in all 4 segments. The cosmetics trade has at all times been characterised by in depth analysis and innovation by firms to introduce newer and higher merchandise. For the reason that 1990s the trade has witnessed many adjustments by way of the manufacture of cosmetics owing to rising consciousness amongst shoppers concerning the dangerous results that harsh chemical compounds(usually utilized in osmetics)could trigger to their physique(pores and skin and hair).

This was one of many causes for the manufacture of merchandise with pure or natural elements by firms like L’Oreal and P&G. Because of the elevated deal with ‘wellness,’ the trade as a complete is now transferring in direction of ‘cosmecuticals’ and ‘neutraceutials, that's, merchandise that mix that qualities of vitamins and wonder aids. Trade analysts speculate that the marketplace for these merchandise would rise sharply within the twenty-first centry.

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