LAKMÉ’S PROFILE

Its bond with beauty and fashion is

manifested through the Lakmé Fashion Week, which is now the largest fashion event of its kind in

the country.

These include products for the lips, nails , eyes, face and skin and services like

the lakme beauty salons about LAKMÉ.

Lakmé today has grown to have a wide

variety of products and services that cover all facets of beauty care , skin care and cosmetic

products.

Indian Brand of cosmetics- owned by

Unilever.

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

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

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

• Growth rate of Salons : 35%

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

INDIAN COSMETIC MARKET

EMERGING TRENDS AT PRESENT

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40

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80

100

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1995 2005 2015 2025

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Health Care

Education & Recreation

Communication

Transportation

Personal Products &Services

Household Products

Housing & Utilities

Apparel

Food, Beverages & Tobacco

Shift in India’s Wallet Share

Best in Class International

Quality Offerings

Shift in Wallet Share

Largest Youth

Population

Proliferation of Media

Attention to Grooming & Looking Good

RISING CONSUMERISM

IN INDIA

Dedicated Shows, Events,

Celebrity Association

SOURCE : Mckinsey Global Institute

er Behaviour in terms of Spending Patterns

CHOICE OF LOCATION FOR LAKME NEXT SALONS

Current Spread of Lakme Salons & Studios Pan India

TARGET CITIES:Tier II and Tier III cities suchas Surat, Vadodara ,Ahmedabad , Nagpur, Pune in West Zone, Jaipur, Ghaziabad, Gurgaon, Noida in North

REASONS•Booming destinations for businesses and experiencing a skyrocketing growth in Infrastructure and Real Estate•Experiencing high influx of people and improving standards of living• Lesser Spread of Competition in these states• Proximity to Training academies in Mumbai and Delhi

Key Locations to set up salon: HIGH STREET• High popularity of high street shopping concept• High conversions as people visiting are generally serious

buyers

Growth in Personal Disposable Income

Real Estate Costs

Competitive Analysis to understand Saturation level

Proximity to Training Academy/ Operational Costs

Consumer Behaviour in terms of Spending Patterns

Growth Factors

PRICING STRATEGY

PRICING SRATEGIES

Responding to competitor’s pricing

ABSOLUTE RANGESNail Enamel : Rs. 200-400 (100 % more)Eye products : Rs. 450Lip products: Rs. 500-900 (150% more)Skin Products : Rs.400-1200(150% more)

Single segment concentration

Differentiated pricing

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Ranging from Rs. 80

Ranging from Rs. 400

Ranging from Rs. 200

PRODUCTS OF

DIFFERENCE IN PRICING

Brand Eyeliner Mascara Lipstick FoundationLakme 800 725 800 700

Maybelline 499 475 299 525

Loreal 800 700-1000 950 900-1100

Revlon 650 850 710 1000

COMPETITION IN MASSTIGE SEGMENT

Target segment Young, independent, modern women

Brand Positioning Statement

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

Tagline On Top of the World

STEPS TAKEN TO CHANGE POSITIONING

• Title sponsor of Lakme Fashion Week (LFW)

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

• Brand Ambassadors – Kareena Kapoor and now Shraddha Kapoor

• Location selection

• Lakme launched the ‘Absolute’ range of products that are available only in modern trade and selected A class cosmetic shops.

DIFFERENTIATIONEducation• Lakme’s strategy is not to use mass media advertising to promote Lakme. Instead, they have opted for

the education route to create awareness.

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

beauty training courses to Indians.

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

Reach• With a retail reach of 40,000 stores and a network of 240 salons spread across 50+ cities and towns,

Lakme is one of the most widely available brands.

RESULTS• The Fashion Week, 240 Lakme Beauty Salons and now the recently-launched Lakme Studio, are all part

of those efforts by Lakme to become a more premium brand.

• According to a survey conducted by Cashkaro in 2016, Lakmé, L’Oréal, Nivea, Gillette and Maybelline are among the most preferred cosmetics and personal care brands

SWOT ANALYSIS

Strengths Weaknesses1. High Brand Awareness.

2. Product Line: Variety

(3 Ranges: Classics, 9 to 5, Absolute)

3. Extensive Distribution Network of the parent company

(HLL)

4. Strong parent brand – Financially stable, well-known.

5. Lakme Beauty Salons all over India. Increases brand

visibility and customer engagement with the brand.

1. Limited presence in Premium market. Lakme has a good

presence and is a leader in Value for Money segment. In

Premium segment, Revlon is the market leader.

2. Quality of Lakme Salons: In 2015, it was found that the

quality of Lakme salons is not good enough which results

in negative word of mouth.

3. Some products are well differentiated while others, in its

vast portfolio of products are not ignored due to poor

differentiation.

Opportunities Threats1. Growing premium segment. As of 2015, premium cosmetic

segment is growing at 30%.

2. Lakme beauty training academy can work as opportunity

to make an impact in the cosmetic market.

1. Increasing presence of International brand and their entry

in India

2. Intense competition from local and national players

3. Counterfeit products

4. Increasing allergy problems.

Social Media Strategy Audience Analysis of Lakmé

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

Source: Lakme Inside Survey

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

Overall Strategy Lakmé

Looking gorgeous and feeling beautiful seem to be the mantra that Lakmé follows on social media. The content it shares and the design of it talks not only about its products, fashion shows, and contests, but also about the little steps a woman (or a girl) can take to look gorgeous and be the object of much-coveted desire, as the brand sees it to be the driving agenda of all women, or at least its fans. We need to see in the following sections, what form this strategy takes when it comes to individual channels like Facebook, Twitter, and the like.

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

Lakmé on FacebookWith almost 19.25 lakhs Facebook fans, of which a little over 39,000 actively engages in discussion, Lakmé has a pretty strong Facebook presence. The brand has used a nice mix of image and video updates from its events, make up tips, and contest, which has helped it maximize its reach among Facebook Users.

THANK YOU