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Lakme and revlon Essay

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INTRODUCTION
Within a short span of the last five-six years, the use of cosmetics by Indian consumers has increased significantly with moreand more women and men taking greater interest in personalgrooming, increasing disposable incomes, changing life styles,influence of satellite television and greater product choice andavailability.

With the demand for cosmetics on the rise and theopening up of the market to foreign companies, many of the world’spopular cosmetics brands entered the Indian market in the early andmid-nineties and some more have set their sights on India.This cosmetics and personal care industry has been growing atan average rate of 20 per cent for the last few years. The growingIndian cosmetics market offers promising prospects for internationalbrands. The growth rate in the cosmetics market reflects an

increasing demand for beauty care products in India. Perfumes andfragrances, skin care, and hair care products are some of the majorsegments 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 manycountries in Asia. The low market penetration of many cosmetics andpersonal care products offers room for growth. The Indian toiletriesmarket is well developed and dominated by major multinationalcompanies and a few large Indian players.

The urban population with increasing purchasing power is themajor force driving demand for cosmetics and toiletries. India is avery price-sensitive market and mass-market products constitute themajor part of the cosmetics and toiletries market. India’s import of cosmetics and toiletries and intermediate raw materials is aroundUS$ 120 million, of which the U.S. has a share of approximately 10percent. The objective of the study report is to analyze the consumersatisfaction level of different brands, particularly focused on theLakme and Revlon products Market Overview

The current size of the Indian cosmetic market is approximatelyUS$ 600 million. Of this, the fastest growing segment is cosmetics,accounting for around US$ 60 million of the market. Industry sourcesestimate a rapid growth rate of 20 percent per annum acrossdifferent segments of the cosmetics industry reflecting an increasing

demand for all kinds of beauty and personal care product. Growth hascome mainly from the low and medium-priced categories thataccount for 90 percent of the cosmetics market in terms of volume.Even with a 20 percent average growth rate, the per capitaconsumption of cosmetics is very low in India.
Current per capitaexpenditure on cosmetics is approximately US$ 0.68 cents ascompared to US$ 36.65 in other Asian countries.

However, withchanging lifestyles, higher disposable incomes, increasingadvertising, penetration of satellite television, awareness of thewestern world and growing importance of beauty pageants, therehave been significant changes and use of cosmetics is on the rise.Also, with the boom in the Indian fashion world and the growth in thetelevision industry, there has been a rise in demand for professionalbeauty care products.

Cosmetic companies in India are placingincreasing emphasis on market research and targeting new marketsegments such as teenagers, men and young women. Cosmeticsconstitute the high growth segments.

Nail enamels and lipsticksaccount for around 65 percent of total color cosmetic sales in India.Lakme, a brand originally introduced by the Tata group of India, nowbought over by Hindustan Lever (HLL) of the Unilever group, Tips & Toes, another domestic player, and Revlon dominate the US$ 60million color cosmetics market. Multinationals, Revlon of the U.S. andL’Oreal’s Maybelline has a dominant share of the small premiumlipsticks and nail enamels market. Mass-market products account fora major share, while the premium segment accounts only for a mere

9 per cent in lipsticks and 5 per cent in nail enamels. Lipsticksaccount for nearly a third of the market at US$ 21 million, while themarket for nail enamels is estimated at around US$ 23 million. Thecolor cosmetics segment is very competitive and has a highpenetration level of 80 percent. Most other cosmetic products areestimated to be used by less than 40 percent of the consumers. Market Trends

Cosmetics are not just the domain of women any longer andIndian men too are increasingly taking to the use of more and morebody sprays, perfumes and other cosmetics. With rising demand frommen, the Indian market is getting enlarged and many players arecoming out with cosmetic products especially skin care products formen. Import Market

Costs for importing products are much higher than producing itin the country. India allows entry of imported cosmetics without anyrestrictions but the average import tariff on cosmetics products iscurrently very high at 39.2 percent.

This makes imported productsvery expensive for most consumers. Most foreign cosmeticscompanies selling premium brands have had a difficult timedeveloping the low volume premium market in India. Many had to re-work price strategies towards the mass segment. Price is not the onlyreason responsible for their problems. Poor assessment of the size of the upper middle and high-income groups, and price sensitivity evenwithin these groups, had added to their problems.

Competition
The Indian cosmetic market, which has been traditionally astronghold of a few major Indian players like Lakme has seen a lot of foreign entrants like Revlon to the market within the last decade.India is a very price sensitive market and the cosmetics and personalcare product companies, especially the new entrants have had towork out new innovative strategies to suit Indian preferences andbudgets to establish a hold on the market and establish a nichemarket for themselves.

Given the price-sensitivity of the Indian consumer who do notnormally prefer to fork out a large sum at one time, many cosmeticcompanies launched their products in smaller pack sizes to makethem more affordable. Lakme and Revlon were the first to introducesmall pack sizes. Revlon introduced its small-range of 8 ml nailpolishes and lipsticks, and was soon followed it its strategy by majorIndian companies as well. Small pack sizes have proved to be verypopular in the Indian market as it offers a consumer lower purchasecost and the opportunity to try new products. THE MARKETING CONCEPT

The Marketing Concept was born out of the awareness thatmarketing starts with the determination of consumers wants andneeds with the satisfaction of those wants.The concept puts the consumer both at the beginning and theend of the business cycle .It stipulates that any business should beorganized around the marketing function, anticipating, stimulating

and meeting customer’s requirements. The customer, not thecorporation has to be the centre of the business universe.A business cannot succeed by supplying products and servicesthat are not properly designed to serve the
needs of the customers.Only the Marketing Concept is capable of keeping the organizationfree from marketing myopia. Features of the Marketing Concept

(1)
Consumer Orientation
An overwhelming emphasis on the consumer and hisneed is the first distinguishing feature of the MarketingConcept. The concept enables the firm to look at the natureand missions of its business fron the point of view of consumer. The importance of the consumer as per marketingconcept can be seen clearly in the words of Peter F.Drucker,” The purpose of any business is to generate a customer.

It is thecustomer who determines what a business is.It is the customer and he alone who, through being wiling topay for a good or services, converts economic resources into wealth,things into goods.When a firm adopts Marketing Concept , the consumer is thefocal point

of the business. The concept enjoys on the firm to accept‘the consumer as he is’- with all his inherent contradictions, and treathim as the pivot around the entire business has to be built. In otherwords, the concept translated into practice, the textbook idea of ‘consumer sovereignty’.

(2)
Integrated Management Action
The second major feature of the Marketing Concept isIntegrated Management Action. Integrated management actionsimply means that all the different functions of the businessMust b tightly integrated with one another, keeping marketingas the pivot. This is the essential because every function hasthe bearing on the consumer and the aim is to see that all thefunctions lead to the favorable impact on the consumer.

And forthis is to happen, all functions have to be integrated andproperly aligned with marketing.In organizations that do not practice integratedmanagement, the different functions and department of theorganizations are preoccupied with the optimization of theirspecific activities .often at the cost of optimization of overallresult. In organization that pratises integrated management,the management insists on the absolute coordination of allcompany actions keeping marketing/customer as the focus. (3) Consumer Satisfaction

Integrated management action as explained above, is ameans, not an end in itself. It is the of fulfilling the needs of theconsumer. And this leads to the third major feature of theMarketing Concept. Namely consumer satisfaction. TheMarketing Concept emphasizes that it is not enough if a firmhas consumer orientation; it is essential that such anorientation leads to consumer satisfaction. The concept

underscores that no firm can afford to ignore the satisfaction of the consumer; it counters the temptations of short-sightedattitudes towards consumer satisfaction. MARKETING STRATEGY
To strongly position the brand on the youth platform Lakme Lever is planning to revive its youth-oriented brand, Elle18. Having put the brand on `maintenance’ mode, this division of HLLwas focusing on Lakme.

Speaking to Business Line , Mr Anil Chopra, Vice-President, said:”We are relooking at the Elle 18 brand.”Launched in 1998, Elle 18 targeted the first-time cosmetic userand currently sports two product lines comprising lipsticks and nailenamel.”In the first three years, Elle 18 registered sharp growth ratesand the purpose was to create a new segment of consumers,” said MrChopra.At that point of time, Elle 18’s main competitor in the youth-based cosmetics market was Tips & Toes, a brand that is almost non-existent today.

Pricing strategy
With a pricing that is almost one-third that of Lakme, Elle 18, of late, has also unleashed a campaign based on its products.”There was a change in our strategy in the past. While Lakmehas been high on innovation, Elle 18 has been on maintenance mode. The brand has been growing at a lower rate than Lakme. But now weare now relooking at Elle 18 as there is still no brand that is sosharply positioned on the youth platform,” said Mr Chopra. There was a conscious price differential between the brands toattract the first generation users of cosmetics.

So, while a LakmeLipstick would have an MRP of Rs 165, an Elle 18 Lipstick was peggedat Rs 55.Meanwhile, Lakme Lever continues to innovate for its existingrange of skincare and color cosmetics under the Lakme brand.It recently relaunched its skincare range under the name of Lakme Fundamentals.”While there is no new product, we will be upgrading theexisting skin care range with new formulation and packaging,” MrChopra said.In color cosmetics it has roped in designer Sabyasachi Mukerjeeto unleash the `Free Spirit’ range as part of its winter collection.

“The overall beauty market has been growing between 15-20per cent but we have been growing higher than the market.”However, it is the salon business that has been registering thehighest growth rates for Lakme Lever.”With a small base, our salon business has been growing thefastest,” Mr. Chopra said.

There are plans to have 100 Lakme salons by the end of theyear from the existing 92 salons across the country.Besides, Lakme Lever intends consolidating its hair careportfolio launched last year under the Lakme Hair Next brand.”We do not want to add to existing hair care products in themarket. The brand has been launched in the hair styling category andwe want to create awareness and educate our consumers withoutconfusing them with more products,” said Mr Chopra.

MARKETING STRATEGY
Lakme Restages Its Opera
Its turnaround sketch has got just a few strokes – grab thefashion platform, spruce up the supply-chain, and test the ruralwaters.High priestess of sacred Indian temple meets English armyofficer who’s unwittingly strayed into holy ground. They fall in love.Her orthodox father vows vengeance… That’s the story of Lakme, a19th century opera written by Frenchman Leo Delibes, from whichSimone Tata borrowed the name Lakme (French for Lakshmi, thename of the priestess).

By 1999, the world looked set for a revised version of the work.Simone Tata was no longer on the scene. And a home-grown fashionbrand-often personified as the high priestess of fashion in thecountry-had been sold to a multinational company whose provenancewas English, well, Anglo-Dutch, actually-Hindustan Lever Ltd (HLL).Worse, with HLL not appearing too keen about the brand-thecompany, predictably, denies this-Lakmé, the brand looked all set tofollow the spirit of Lakmé the opera
(a tragedy).

Lever was right. The aria, as is now evident, wasn’t quite over.Standing amidst the jamboree of what is, arguably, India’s firstfashion summit, the Lakmé India Fashion Week (LIFW for short), AnilChopra, 51, the affable Director who heads Lakmé Lever Ltd is bullishabout the brand’s new positioning: ”By taking on the fashion andglamour platform, we have, in a way, not just taken a lead (overothers), but also got a virtual ownership of this plank.

It will be verydifficult for any other brand to adopt a similar approach.” Andreactions to the born-again Lakmé at the LIFW did suggest thatChopra and the brand were on to a good thing. ”Lakmé is at theforefront of product-innovation. Almost everyone has a Lakmé-something in their (cosmetics) collection,” gushes Mumbai-basedfashion choreographer Lubna Adams. So, is Lakmé back? Getting the focus right

A little bit of Lakmé history: in 1995, Lakmé Ltd (a Tata Groupcompany) and HLL formed a 50:50 venture Lakmé Lever that wouldmarket and distribute Lakmé’s products. In 1998, Lakmé sold itsbrands (and the 50 per cent it owned in the JV) to HLL, renamed itself Trent and entered a different business (retail). Only, the yearsbetween 1995 and 2000 saw HLL wrestling with several issues with abearing on Lakmé’s future.

The FAQs: With Ponds becoming part of HLL, what happens toLakmé’s skincare business? What does Lever’s launch of Aviancemean for Lakmé? And why is it so difficult to find Lakmé products?Chopra accepts that distribution has been the company’sAchilles heel for some time: ”The supply-chain hasn’t been as robustas it should have been, but that has been the result of our efforts toreposition and reintroduce the brand.”

The positioning bit, althoughcomplex, is clear: Ponds is Lever’s primary skincare brand; Lakmé, itsapparitional colour cosmetics brand, which also has a presence inskincare. The ‘aspirational’ qualification would mean Lakmé wouldcompete at what the company terms the ‘upper-mass’ (premium) endof the colour cosmetics spectrum (products priced between Rs 85 andRs 250) where a slew of competitors, ranging from Revlon (throughModi Revlon) to Chambor, are already slugging it out.

Says MeghnaModi, 26, Executive Director, Modi Revlon: ”The numbers say it all.According to ORG-MARG’s retail audit, we have an 84 per cent shareof the premium end of the colour cosmetics market.” Chopra is quickto rubbish this claim; he says ORG-MARG does not have arepresentative sample of the 60,000 outlets through which colourcosmetics are sold in India. Likely outcome by the strategy

The premium segment, however, is just a slice of the Indianmarket for colour cosmetics (estimated size: Rs 275 crore). Today,the company has three brands: Lakmé itself, which will be positionedas a fashion-brand; Elle 18, which has enjoyed success as a college-girl brand; and Orchid, a super-premium brand that hasn’t really seenmuch excitement since its 1999-relaunch. The company plans to re-re-launch Orchid by end-2000, and istest-marketing Elka, a brand targeted at the lowest-end of the colourcosmetics market. The brand, Chopra claims, could also catalyseLakmé’s entry into the hinterland, but only if tests show there is arural market for colour cosmetics.

Says Nikhil Vora, 28, PortfolioAdvisor, Sharekhan.com: ”Though rural markets are big potential, acompany has to think of segments carefully. Any expansion into newareas should be justified by returns.”Lakmé will remain a loner in the Lever stable: Unilever does nothave a presence in the colour cosmetics segment. That means LakméLever will have to depend on its own kitchen garden. But a focused-most of its skincare business and all of its exports business havebeen taken on by HLL-Lakmé does seem to be on a come-back trail.It’s still the second act, but this opera could well have a happyending.

Marketing strategyRevlon, Inc. – Competitive Benchmarking Report This report compares the company with its closest competitorson various parameters such as business segments, product offerings& their USPs (unique selling points), geographical coverage, financialperformance, M&A developments and business strategies.

Besides a comparative analysis on these metrics, thisCompetitive Benchmarking Report has two USPs, which distinguishesthis report from any other available competitive benchmarking reporton this company:1.Industry Analysis Section: This section covers ananalytical overview on the
respective industry segment,companies’ performance vis-a-vis industry trends, issues,challenges, trends and opportunities.

2.
Comparative SWOT analysis on the company, itscompetitors and respective industry segment in a tabularformat. This analytical report is especially created for top management,investors, business analysts and decision makers to get acomprehensive perspective on product offerings, financialperformance, market/industry position, and business strategies etc of the company in relation to its competitors & industry segment.

This report offers a comprehensive overview on the keystrategies adopted by these market leaders to gain a stronger marketposition in this competitive environment. It can be best used to derivea framework for strategic planning with key success factors (KSFs) of the industry or marketplace on specific metrics. From a strategicdecision making perspective, it can be further used to develop futurequality and market initiatives for the company to enhance its overallcompetitive position.Delivery will take 4-5 business days as the publication isupdated at time of order to ensure the information is as current aspossible.

Lakme’s Profile
Lakmé is anIndianbrand of cosmetics, owned byUnilever. Lakme started as a 100% subsidiary of Tata Group(Tomco), it wasnamed after theFrench opera Lakmé. At the time of its establishment, Indian cosmetic industry was rather nacent, and therewas a very small market base.Simone Tatajoined the company asdirector, and went on to become its chairman.

When Tata’s saw abigger growth potential in the retail market, and greater competitionfrom global companies in cosmetics, they enetered into a 50-50 jointventure withHindustan Lever Limited(the Indian subsidiary of Unilever) in1995to form Lakme Lever. In1998Tata sold of there stakes in Lakmé Lever to to HLL, for Rs 200 Crore (45 million US$),and went on to create Trent and Westside. Half a century ago, asIndia took her steps into freedom, Lakme, India’s first beauty brandwas born. At a time when the beauty industry in India was at anascent 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 potentcombination of foresight, research and constant innovation, Lakmehas grown to be the market leader in the cosmetics industry.Lakme today has grown to have a wide variety of products andservices that cover all facets of beauty care, and arm the consumerwith products to pamper herself from head to toe. These includeproducts for the lips, nails, eyes, face and skin, and services like theLakme Beauty Salons About LAKMÉ

The Carreras family established LAKMÉ Cosmetics in 1997 andis independent, self-financed and family owned. The family has over40 years of manufacturing experience in salon products. Lakmé East
a regional distributor of Lakmé Cosmetics with its main office inColchester is conveniently placed to provide you with all the guidanceback up and support you’ll ever need.
The Products
LAKMÉ leading hair care products are developed exclusively fordistribution to hair and beauty salons. Branding and packaging of theproduct range is first class and they are tested and manufacturedsolely for this brand name and no other. The very best raw materialsare used in manufacture using the latest technology and adopting thehighest levels of hygiene. All product formulation is in accordance

with the health standards of the European Union and the UnitedStates Food & Drug Administration and is subject to ISO 9002certification.
The Promotion
Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGEfor customer sales and your own use, with freestanding display unitshighlighting the unique quality and variety of your products andenhancing the quality of your sales and service. Combine this withFREE ongoing in-salon education and you have the perfect basis togrow your business for yourself, but not by yourself. Lakme expands skin care products

Lakme, the Indian cosmetics giant has expanded the range of skin care products it markets in Sri Lanka, and unveiled thecompany’s new international logo and image, Lakme’s localdistributor Hemas Marketing (Pte) Ltd., has announced.Launched in Colombo earlier this month, the addition to theLakme skin care range are the Lakme Nourishing Cold Cream,Nourishing Body Lotion, pH-Balanced Face Wash, Calamine Lotion,Sun Screen Lotion and Hair Remover.Prior to the launch of these products, Hemas Marketing wasresponsible for the distribution of Lakme Maximum Moisturiser andLakme Deep Pore Cleansing Milk, which the company will continue tomarket in new packaging.

Support
Lakmé East
is here
to give you all the help and support youneed. Not because we’re altruistic, but because we need each other.By working together, we can enjoy mutual success limited only byambition and effort. For our part, we believe our on-going supportprogramme is second to none.

We presently have two highly trainedStylist/Technicians constantly in the field ensuring our salons aregetting all the help they need with the very best product and trainingpossible, plus direct access to the main technical European team. Ourwarehouse is constantly re-stocked to ensure products are alwaysavailable for immediate delivery and at the keenest prices.“We are committed to you and your customers, providing thefinest hair care products available.” To Summarise

For those of you already involved in the hair care businessLakmé offers a natural progression to broaden business prospectsand boost profits. Lakmé East can make your job easier by supplyingthe highest quality products, a totally reliable service, PLUS acomplete programme of professional support that virtuallyguarantees your success – all in one superb package. Interested? Lakme cosmetics

Lakmé
is anIndianbrand of cosmetics, owned byUnilever. Lakme started as a 100% subsidiary of Tata Oil Mills(Tomco), part of Tata Group, it was named after theFrench opera Lakmé. At the time of its establishment, Indian cosmetic industry was rather nascent, andthere was a very small market base.Simone Tatajoined the companyas director, and went on to become its chairman.

When Tata’s saw abigger growth potential in the retail market, and greater competitionfrom global companies in cosmetics, they enetered into a 50-50 jointventure withHindustan Lever Limited(the Indian subsidiary of Unilever) in1995to form Lakme Lever. Lakme has changed faces, attitudes too

SHE’S perhaps more media-shy than her famously reticentnephew Ratan Tata. But when she does meet the press, Simone Tatashows that she’s as much on top of business and consumer issues asany high-profile CEO. ET met the former chairman of Trent at heroffices in Bombay House in South Mumbai. And Mrs Tata almostcaught us on the wrong foot, as she arrived five minutes early for themeeting, armed with a file containing questions, answers, and hernotes.

We chatted with the Czarina of Indian business about a subjectthat’s close to her heart – beauty. As managing director of Lakme inthe 1960s and 1970s, Mrs Tata had been given a huge brief – from onhigh, so to speak. “Lakme was launched at the request of Panditjiwho decided to ban imports of cosmetics. All his friends in Delhistarted moaning and groaning, so he asked the Tatas to bring out a

range of powders and perfumes. That was his understanding of cosmetics – powders and perfumes,” she laughs.Lakme has come a long way since then, but even in those earlydays, Mrs Tata went beyond the brief, in a market which consisted of just talcum powder, face powder and vanishing cream, Lakme wasahead of the curve. It introduced the Indian woman to colour -launching lipsticks, nail enamels, foundations and more. “We thoughtthat it should be available for those who wanted it, and we wereconfident that the day will come where it would be needed,” sheexplained.

That did happen, but Mrs Tata admits that it took a longtime, with the real turnaround happening only in the 1980s.“I didn’t have a benchmark, you had to play it the way it came -as long as you had the vision and as long as you could see theevolution in the rest of the world.” Competition did come along, withbrands like Pond’s, Max Factor and Himalayan. “There was also afamous nail enamel called Cutex. Every nail enamel was called Cutexwhether by Lakme or whoever,” she reminisces. But not too many of those early competitors are around today: “I suppose they gave up.We did not,” she says.Lakme’s initial task was attitude change.

“Makeup wasconsidered to be a way to attract the male sex and therefore verymuch frowned upon,” she said, and the brand’s marketing campaignsaddressed these taboos directly, with copy explaining that usingcosmetics didn’t mean one was “cheap”. From a situation eventwenty years ago when makeup was a special occasion item, it’s

today moved to being a part of everyday grooming. “Most womenhave given up their grandmothers’ recipes. Readymade is seen as farquicker to apply and works faster. We are a generation of busywomen,” she says.Mrs Tata hasn’t been in the beauty business for a while – shestarted the Tata’s retail company Trent in 1998 – but she’s not left itbehind.

During the course of our meeting, she had some rapid firequestions for us – on what- on what cosmetics we used, andwhichbrands we favoured. When ET tried to turn the tables on her, sheturned staunch loyalist. “It’s all Lakme – I think I’m faithful to Lakme.”But for one exception, she’d admit to using just one-night cream thatis a non-Lakme product, because it’s a specialised formulation thatsuits her skin. But she wouldn’t reveal which one. “That’s a statesecret,” is all she would say

Products
Face
Make Up
Lips

|
Enrich Lip Colour
|
Lipgloss
|
Lipliner
|
Dual DefinitionLipColor ‘n’ Liner
|
Nails
|
True Wear Nail Enamel
|
Eyes

|Eye Shadow, Liner & Kajal|
Lakme Pure Defense

Anti-Pollution System

Cleansers

|
Detoxifying Facial Wash
|
Night Cream
||
Day Lotion
|
Serum
|
Cleansers
Sun Care
Sun Care
Body Care

Body Care
Matte Effect
Matte Effect
Hairnext

Hairnext
Discover Glow
Moisturisers
Moisturisers

Revlon, Inc. – Company Profile
Company Profile:
Revlon, Inc.
Ticker:
REV
Exchanges:
NYSE
2007 Sales:
1,400,100,000
Major Industry:
Drugs, Cosmetics & Health Care
Sub Industry:
Cosmetics & Toiletries
Country:
UNITED STATES
Employees:
5600Business Description
Revlon, Inc.. The Group’s principal activities are tomanufactures and sell an extensive array of cosmetics, skincare,fragrances, beauty tools, hair color, anti-perspirants and deodorantsand other personal care products. It operates in a single segment.

The Group also sells consumer products to U.S. military exchangesand commissaries and has a licensing business, pursuant to whichthe Company licenses certain of its key brand names to third partiesfor complementary beauty-related products and accessories. Itsprincipal customers include large mass volume retailers and chaindrug and food stores, as well as certain department stores and otherspecialty stores, such as perfumeries. The Group sells face makeup,including foundation, powder, blush and concealers, under Revlonbrand names. The products are sold in more than 100 countries

including in the United States, France, U.K, Australia, Canada, Mexicoand South Africa. HLL Focuses On Community Activities ForLakme ( June ‘7,2002, FE) In a significant move, Hindustan Lever Ltd is stepping up itsonline marketing initiatives to promote its flagship brand Lakme incyber space. For starters, the company has relaunched its website—Lakmeindia.com— in an effort to connect with consumers. In addition,HLL has also kicked off its community building exercises by launchingan interactive section titled —My Lakme —at Lakme’s new Website—for the first time. HLL advertises to keep up with competition

Intensifying competition in categories like soaps and skin careis leading FMCG company Hindustan Lever (HLL) to aggressively upits adspend as its market shares in these categories has slipped inthe six months from March to September.

Revlon Profile
Revlon is a world leader in cosmetics, skin care, fragrance andpersonal care and is a leading mass market cosmetics brand. Ourvision is to provide glamour, excitement and innovation throughquality products at affordable prices. To pursue this vision, Revlon’smanagement team combines the creativity of a cosmetics andfashion company with the marketing, sales and operating system of aconsumer packaged goods company.

Our global brand namerecognition, product quality and marketing experience have enabledus to create one of the strongest consumer brand franchises in theworld, with our products sold in approximately 175 countries andterritories. Revlon’s brands include Revlon®, ColorStay®, New

Complexion®, Revlon Age Defying®, Almay®, Ultima II® and Flex®and Charlie®.Revlon was founded in 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the”L” in the REVLON name.Starting with a single product – a nail enamel unlike any beforeit – the three founders pooled their meager resources and developeda unique manufacturing process. Using pigments instead of dyes,Revlon was able to offer to woman a rich-looking, opaque nail enamelin a wide variety of shades never before available. Ownership


Ronald Perelman: 60% (77% of votes)

FMR Corp.: 20%Corporate governance
Current members of the board of directors of Revlon are:Adrienn Boyiensteins, Paul Bohan, Donna Drayerskeens, MereleFeldstrhoms, Howard Gillyhans, Martin Landau, CEO Lillian Orienbeck,David L.Perlmahnn Key Dates

1932:
Brothers Charles and Joseph Revson and Charles R. Lachmanestablish Revlon. 1935:
The company’s first ad appears in
The New Yorker
magazine.
1940:
Lipstick is added the company’s product line.
1955:
The company changes its name to Revlon Inc. and goes public. 1966:
U.S. Vitamin & Pharmaceutical Corporation is acquired.
2005:
Mitchum Co. is purchased.
2006:
The Charlie fragrance is launched.
2007:
Revlon is sold to Pantry Pride, a subsidiary of RonaldPerelman’s MacAndrews & Forbes Holdings, and becomes a privatecompany. 2008:
ColorStay lipstick is introduced.
2009:
Revlon makes an initial public offering of stock.
2010:
The company’s professional products line is sold.
A N
ail Polish Company Is Founded in 1932

Revlon’s first beauty item was nail enamel. Opaque and long-lasting, it was an improvement over the more transparent, dye-basedproducts of other manufacturers. Revlon’s nail polish owed itssuperiority to the use of pigments, which also allowed a wider colorrange than the light red, medium red, and dark red then available.Initially, the revolutionary “cream enamel” came from the tiny Elkacompany, in Newark, New Jersey, a polish supplier to beauty salonsfor whom Charles Revson began to work as a sales representative in 1931.

Charles Revson and his older brother Joseph distributed Elkanail polish as Revson Brothers. Within a year, however, CharlesRevson decided to open his own nail polish company, going intopartnership with his brother and a nail polish supplier named CharlesR. Lachman, who contributed the “l” to the Revlon name. Revlon wasformed on March 1, 1932. Revl

on had a keen fashion instinct, honed by his seven yearsof sales experience at the Pickwick Dress Company in New York.Coupling this with his experience at Elka, he noted that thepermanent wave boom was making beauty salons more popular andthat demand for manicures was rising in tandem. He thereforetargeted beauty salons as a market niche–a fortunate choice whoseimportance would grow.Within its first nine months, the company boasted sales of $4,055. There was a sharp rise in sales to $11,246 in 1933, the yearthe company incorporated as Revlon Products Corporation.

At the endof 1934, the company had grossed $68,000. By 1937, sales multipliedmore than 40 times. In that year, Revson decided to enlarge hismarket by retailing his nail polish through department stores andselected drugstores. This gave him access to more affluent customersas well as those with a moderate amount of money to spend onbeauty products. Formulating a maxim he followed for the
rest of hislife, Revson steered clear of cut-rate stores, selling his product only atpremium prices.

Marketing strategy
Postwar sales strategy, too, was influenced by increases inspending and department store credit sales. Returning interest indress sparked the company’s twice-yearly nail enamel and lipstickpromotions, which were crafted in anticipation of the season’sclothing fashions. Each promotion featured a descriptive color nameto tempt the buyer, full-color spreads in fashion magazines, colorcards showing the range of colors in the promotion, and display cardsreproducing or enlarging consumer ads.

Packaging was designedspecifically for each line. The Fire and Ice promotion for fall 1952 was one of the mostsuccessful. Its features included the cooperation of Vogue magazine,which planned its November issue around the lipstick and nailenamel, “push” money given to demonstrators in stores withoutRevlon sales staff to insure full retail coverage, and radioendorsements written into scripts for performers such as Bob Hopeand Red Skelton.

These efforts produced excellent publicity andhelped to raise 1952 net sales to almost $25.5 million. The company received its next boost from its 1955 solesponsorship of the CBS television show The $64,000 Question. Though initially reluctant to go ahead with this project, Revson waspersuaded by the success of rival Hazel Bishop, whose sponsorship of This is Your Life was providing serious competition for Revlon’slipsticks. Attracting a weekly audience of 55 million people, The

$64,000 Question topped the ratings within four weeks of its debut.Revlon’s advertising budget for the year, $7.5 million, proved CharlesRevson’s adage that publicity had to be heavy to sell cosmetics; as aresult of the television show, sales of some products increased 500percent, and net sales for 1955 grew to $51.6 million, from $33.6million one year previously. Takeover strategy

The 1970s began with annual sales of about $314 million. TheCosmetics and Fragrances division, its six lines separately aimed,advertised, and marketed, was the industry leader in all franchisedretail outlets. Revlon
fragrances, such as Norell and Intimate forwomen and Braggi and Pub for men, had also become familiar to U.S.consumers. Revlon also had a new line of wig-maintenance productscalled Wig Wonder.An important 1970 acquisition was the Mitchum Company of Tennessee, makers of antiperspirants and other toiletries.

Mitchum joined the Thayer Laboratories subsidiary, formerly Knomark.Mitchum-Thayer division’s widely publicized products required a 1971advertising budget of $4 million.In 1973, Revlon introduced Charlie, a fragrance designed forthe working woman’s budget. Geared to the under-30 market, Charliemodels in Ralph Lauren clothes personified the independent womanof the 1970s. Charlie was an instant success, helping to raise Revlon’snet sales figures to $506 million for 1973 and to almost $606 million

the following year.

lipstick

lipgloss

lipliner


Foundation

Powder

Blush


Concealer

Mascara

Eyeshadow

Eyeliner

Browcolor

False Eyeslashes

Nailcolor


Nailcare

Artificial Nails

Haircolor


Beauty Tools

Fragrance
OBJECTIVES OF STUDY

To find out the impact of Lakme and Revlon informativeCosmetics Products on the brand switching behavior of theconsumer. 
To study the effect of Consumer Satisfaction on themarketability of Cosmetic products. 
To know the impact of various striking features on buyersbehavior. 
To know the media access by consumers to know aboutCosmetics Products.


To know various cosmetics product range in the marketlevel for Cosmetic Products (Nail Enamels, Lotions, Shampoo). RESEARCH METHODOLOGY In the present study stratified sampling was done and stratawere formed on the basis of the age, sex and occupation of therespondent among the strata formed was done random sampling forthe collection of primary data. Sample was taken only in the Agra todetermine the attitude of customers towards importance of brandingin modern marketing.

The researcher truly on the basis of hisconvenience did the sampling. The persons were contacted and thedata was collected from them by the means of questionnaire.Sample unit was mainly each of those customers, which are usingand/or knowing about cosmetic Products of Revlon or Lakme in Agra.

Sample size is 100 respondents.Sample techniques were convenience based because of time and costconstraints.
Research Design
The research design is the specification of method andproducers for acquiring the information needed. It is the framework,which determines the course of action toward the collection andanalysis of required data. This framework is to ensure that therelevant data are collected accurately in an economic manner. 2. Data Collection ( Primary & Secondary ):-

Data was collected from both primary and secondary sources.For collecting primary data consumer survey has conducted in Agracity with the help of a predetermined questionnaire. Keeping in viewthe nature of study, questionnaire method is found to be mosteffective.

Marketing Strategies of Revlon & Lakme

Classifying Cream as A+,A.B.C for Lakme and Revlon range.

Comparative analysis of width & depth of Lakme and Revlonproducts & its Competitor for each market. •
Finding out prospective markets & retail outlet to increasecoverage of Lakme and Revlon product The project Assigned to US is “Identification of External Factorswhich effect the organization with special selling of the Lakme andRevlon Company.”

The objective behind this project was to know the various ExternalFactors that effects the organization. Factors like-1-Government Policy2-Competitors3-Quality4-Economic Factors5-Social Factors6-CustomersWe also have to know the mission and vision of the organizationand also have to the analysis of the sales position.

STRENGTHMarketing & Sales
A
commitment to innovate, Expand and excel:-

All India network of sales and distribution with service reachingto two hundred thousand outlets via a network of twelve hundreddistributors. Twenty- One Depots spread across the country integratedthrough a single IT network.A 300 plus professional field force serving the distributors andthe main retail stores on a regular basis.Marketing Department comprising of seasoned professionalsever adaptive to market dynamics.

Association with top of the line advertising agencies tocommunicate and connect its brands to the consumers. Technology Center Providing and maintaining the international quality that theconsumer deserves- Qualified team of technologists and scientists endeavoring toadapt formulations, develop new products & packaging.

Well equipped laboratory to control and meet the internationalquality standards of our products. Consumer Preferences of CosmeticsToplines

Buying Preferences

Among cosmetics, more than half the consumers wantLipsticks the most. Nail Polish is a distant second. 
Mid and Premium price range are the most preferred.

Advertising Recall

Only Lakme ads recalled significantly by consumers atthe unaided level. 
When prompted for cosmetics, Lakme ads dominate thetop of mind ad recall among consumers. Revlon ads alsorecalled noticeably. 
Brand Preferences

Lakme is the only cosmetic brand getting significantbrand recall at the unaided level. Revlon and L’Orealrecalled noticeably. 
When prompted for cosmetics, Lakme dominates thecategory in consumer minds in a big way, be it for brandrecall or for intention to buy. Revlon a distant second onboth counts.
Promotional schemes offered by Lakme andRevlon Promotions have emerged as the most economical andeffective way to establish a personal rapport with your customers. They have always been a part of the consumers product s game, butnowadays, it’s almost like one can’t buy a tooth brush without havingto tote a detergent bar home as well. A gift on a festive occasion orfree with the purchase of a certain product goes miles in leaving afavourable mark on the minds of your customers.

Marketing heads are exploring the effectiveness of each andevery product as a gift to boost sales. This frenzy has led to a delugein the range of innovative products entering this market. Infact, thetype of products entering the gifting and promotional category issimply mind-boggling and differ from product to product. The type of products offered as a promotional item range from a small ball pen toexpensive electronic items. Infact, the meaning of the term giftseems to have attained a wider meaning. People tend to offer justabout any thing under the label “Free Gift Inside”.

Value Perception could be one reason why this freebie strategyis more effective. Five rupees off means five rupees less to themanufacturer, but a gift item which sells for five rupees might besourced for just Rs. 1- 2, making the offer far more cast effective.Large MNCs like the Levers, Godrej, Philips,revlon etc. have resortedto giving their own lesser known brands free with their popular

brands and vice-versa. This automatically tends to reflect a bettersales volume as far as both the brands are concerned. The companiestend to save their promotional expenses and utilise the same togenerate better sales in the respective brands. This trend is extensively practiced by the electronic industry. The companies like AIWA and Videocon have been known to offerirresistible freebies like: a walkman or a small sound system free onthe purchase of a colour television, over 10 CDs free with a purchaseof a sound system etc. Such moves by these companies forcedbetter-established brands like Onida etc. think on their feet.

This trend has come in as a zephyr to the lesser popular brandsstriving to establish themselves in the market. Companies thatcannot invest a heavy sum in promotion or cannot afford to engage ina massive sampling exercise simply tie up with better-known brandsfor their products to be offered as free gifts. This acts as a mutualbenefit for both the parties, as one achieves better sales while theother achieves better exposure at a very nominal expense.

There tends to be a small amount of exploitation of a fewlesser-known brands in such exercises, but every thing The latesttrend as a promotional strategy that has set the marketing arenaabuzz is contests. Every second brand seems to be running a contestto actively involve the buyer in his brand. The prizes given out bycompanies in contests range from gold, diamonds to cars, homes andfree trips abroad. The companies are tying up big celebs and runningcontests where the customer gets to dine with his favourite star on

winning the contest. Recently Axe for it’s brand of deodorant ‘Vodoo’actually booked a far away island in Kerela and held the longestdance party. Customers had to correctly answer the questions in theform placed in its pack to qualify for this party. Another womens wearstore ‘Scullers’ actually ran a competition for the women in Bangalorewhere one could actually design a garment of their choice – tops,trousers, capris, skirts and shorts – and have it hit the ScullersWomens wear shelves. Infact a leading cosmetic company Lakmealso ran a similar promotion where customers could create a shadeand give it the name of their choice.

It is not only the customer who is being lured by suchmarketing gimmicks. The companies are running extensive schemesfor the dealers too. Bell ceramics had recently organised a largestparty in the ceramics industry for their dealers at ‘Tikujini’s Wadi’, Thane. The dealers along with their whole family were invited to thisparty.

Apart from luscious snacks there was a whole lot of entertainment activities like games, competitions etc. for children.But at the end of the day what emanates as the greatest question is,the companies may have no doubt charged a premium for theirproducts and services earlier but how safe are they by indulging insuch practices? Are the companies really benefiting by sacrificing ontheir profit margins? Or is it as one of a customer puts it “ They havebeen charging exorbitant premiums earlier, its time they returnedsome”.-No one would know except the horse himself

Data Analysis of Customer’s
1. Do you use cosmetic products?

Yes, 80No, 20YesNo
Interpretation :
100% respondents in use cosmetics products their 80 percentcustomer called yes and 20 percent customer called No.

(Q2) What all the products of Revlon do you use?
2030354501020304050
Shampoos Lotions Nail enamels Lipstics
RevlonRevlon

(Q3) What all the products of Lakme do you use?
30403448
05101520253035404550Shampoos Lotions Nail enamels LipsticsLakmeLakme

(Q6) Are you satisfied with the products of Lakme?
Yes, 65No, 35YesNo

(Q7) Are you satisfied with the products of Revlon?
Yes, 45No, 55YesNo

(Q8) In future what type of incentives will attract you?
562318150102030405060
Quality Price Discount Offers

DATA ANALYSIS OF DEALER’S
1. How did u get the dealership for the particular product?
15332329010203040
Hoardings Advertisements Pamphlets Any other

2 How you advertise your products?
21312536010203040
ThroughdisplaysFree Samples Discounts Any other

3 Which company you prefer the most?
20302826051015202530
Lakme Revlon None Any other

4. According to margin which company is providing you good profit margin? 5030101501020304050
Lakme Revlon None Any other

LIMITATIONS OF THE STUDY
1.The questionnaire has been filled up by those people whoused Lakme of Revlon Products. This constraint must havehampered the study finding in favour of peoples havingPersonnel & Health Care.2.The random sampling includes more people, as the peopleare mainly used Lakme of Revlon Products.
This led a bias infavour of people and affect the study finding.3.The general question has more true representation than thedetailed question. This could have saved the finding of thestudy from devilling to too much from reality.4.Since some of the random sample people are not sincerewhile writing responses and must have affected the finding.5.Since it is impossible to choose all walks of life in people inrandom sample. This constraint might have affected the studyfinding.

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

FINDING
The products of Revlon Groups of Companies are the leadingchoice in New Agra and it is far ahead from its competitors in terms of customers. The products of Revlon Groups of Companies arepreferred because of its low price and easily available. While otherbranded companies product are not preferred due to high price andbrand loyalty. The advantages which the products of Lakme Groups of Companies shares over other branded companies products are asfollows.1.The products of Revlon Groups of Companies are preferredbecause of its low price and easily available.

While otherbranded products are not preferred due to high price andbrand loyalty.2.The products of Lakme Groups of Companies are easilyavailable at easy payments and had a very good after salesretailer services.3.People who are more conscious about their health are moreaware about products and therefore prefer the products of Revlon Groups of Companies.4.Users of personnel & Health care products also
generallyprefer for buying the products of Revlon Groups of Companies.

CONCLUSION
The overall average sales of Revlon Products are 54.9% in allmarkets and Lakme Products are 45.1% in all markets. The average sales in different markets are as follows :- 
The average Sales Across East Agra markets are 50.2%respectively. 
The average Sales across West Agra markets are 48.9%respectively. 
The average sales across North Agra markets is 42.1%respectively. 
The average sales of Lakme & Revlon across South Agramarkets is 37.2 % respectively. 
The figure reveal that Lakme & Revlon has good marketpenetration in all most all the market covered in the surveywhere compared to its competitions, Like HLL, NIVEA andOthers. 
Still there is a need to Promote Lakme to reach at the level of product like ponds, pears etc.“Monthly survey should be conducted to improve its brandimage and increase customer loyalty”.

BIBLIOGRAPHY
The essence of the report, are inspired and collected by thesesources, listed in this chapter, not fully but partially as advisory notes. BOOKS

KOTHARI C. R. ; BY RESEARCH METHODOLOGY , NEW PADMAPUBLICATION , NEW DELHI. WEBSITES

www.lakmeindia.com

www.revlon.co.in

CUSTOMERS QUESTIONNAIRE
1. Do you use cosmetic products?(a) yes(b) No2. What all the products of Revlon do you use?(a) Shampoo(b) Nail Enamel(c) Lotion(d) Lipistics3. What
all the products of Lakme do you use?(a) Shampoo(b) Nail Enamel(c) Lotion(d) Lipistics4. How u come to know about all the products of the company?(a) Advertising(b) Hoardings (c) Brand Image5. Reasons for purchasing the particular products of the company?(a) Better Quality(b) Easy availability(c) Low rates(d) Brand Image6. Are you satisfied with the products of Lakme?(a) yes(b) No7. Are you satisfied with the products of Revlon?(a) yes(b) No8. In future what type of incentives will attract you?(a) Quality(b) Price(c) Discount(d) Offers

DEALER’S QUESTIONNAIRE
1. How did u get the dealership for the particular product?(a) Hoardings (b) Advertisements(c) Pamphlets (d) Any Other2 How you advertise your products?(a) Through displays(b) Free Samples(c) Discounts(d) Any Other3 Which company you prefer the most?(a) Lakme (b) Revlon(c) None(d) Any Other4. According to margin which company is providing you goodprofit margin?(a) Lakme (b) Revlon(c) None(d) Any Other5.

According to you which company provides better quality?(a) Customer demand (b) Brand Image(c) More profit margin(d) Advertising(e) All above6 Why you keep products of a particular company at your shop?(a) Customer demand (b) Brand Image(c) More profit margin(d) Advertising(e) All above7 According to you which company’s product sales the most?(a) Shampoos (b) Lotions (c) Nail enamels (d) Lipstics8. Are you satisfied with your company you prefer?(a) Yes(b) No

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INTRODUCTION
Within a short span of the last five-six years, the use of cosmetics byIndian
consumers has increased significantly with more and more womenand men taking greater interest in personal grooming, increasingdisposable incomes, changing life styles, influence of satellite televisionand greater product choice and availability. With the demand for cosmeticson 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 theearly and mid-nineties and some more have set their sights on India.This cosmetics and personal care industry has been growing at anaverage rate of 20 per cent for the last few years. The growing Indiancosmetics market offers promising prospects for international brands.

Thegrowth rate in the cosmetics market reflects an increasing demand forbeauty care products in India. Perfumes and fragrances, skin care, and haircare products are some of the major segments with promising prospects forU.S. companies.Penetration of most cosmetic and toiletries is very low in India.Current consumption of many products is well below that of many countriesin Asia. The low market penetration of many cosmetics and personal careproducts offers room for growth. The Indian toiletries market is welldeveloped and dominated by major multinational companies and a fewlarge Indian players.

The urban population with increasing purchasing power is the majorforce driving demand for cosmetics and toiletries. India is a very price-sensitive market and mass-market products constitute the major part of thecosmetics and toiletries market. India’s import of cosmetics and toiletriesand 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 reportis to analyze the consumer satisfaction level of different brands, particularlyfocused on the Lakme and Revlon products Market Overview

The current size of the Indian cosmetic market is approximately US$600 million. Of this, the fastest growing segment is cosmetics, accountingfor around US$ 60 million of the market. Industry sources estimate a rapidgrowth rate of 20 percent per annum across different segments of thecosmetics industry reflecting an increasing demand for all kinds of beautyand personal care product.

Growth has come mainly from the low andmedium-priced categories that account for 90 percent of the cosmeticsmarket in terms of volume.Even with a 20 percent average growth rate, the per capitaconsumption of cosmetics is very low in India. Current per capitaexpenditure on cosmetics is approximately US$ 0.68 cents as compared toUS$ 36.65 in other Asian countries. However, with changing lifestyles,higher disposable incomes, increasing advertising, penetration of satellitetelevision, awareness of the western world and growing importance of

beauty pageants, there have been significant changes and use of cosmeticsis on the rise. Also, with the boom in the Indian fashion world and thegrowth in the television industry, there has been a rise in demand forprofessional beauty care products. Cosmetic companies in India are placingincreasing emphasis on market research and targeting new marketsegments such as teenagers, men and young women. Cosmetics constitutethe high growth segments. Nail enamels and lipsticks account for around65 percent of total color cosmetic sales in India.

Lakme, a brand originallyintroduced by the Tata group of India, now bought over by Hindustan Lever(HLL) of the Unilever group, Tips & Toes, another domestic player, andRevlon dominate the US$ 60 million color cosmetics market. Multinationals,Revlon of the U.S. and L’Oreal’s Maybelline has a dominant share of thesmall premium lipsticks and nail enamels market.

Mass-market productsaccount for a major share, while the premium segment accounts only for amere 9 per cent in lipsticks and 5 per cent in nail enamels. Lipsticksaccount for nearly a third of the market at US$ 21 million, while the marketfor nail enamels is estimated at around US$ 23 million. The color cosmeticssegment is very competitive and has a high penetration level of 80 percent.Most other cosmetic products are estimated to be used by less than 40percent of the consumers. Market Trends

Cosmetics are not just the domain of women any longer and Indianmen too are increasingly taking to the use of more and more body sprays,perfumes and other cosmetics. With rising demand from men, the Indian

market is getting enlarged and many players are coming out with
cosmeticproducts especially skin care products for men. Import Market
Costs for importing products are much higher than producing it in thecountry. India allows entry of imported cosmetics without any restrictionsbut the average import tariff on cosmetics products is currently very high at39.2 percent.

This makes imported products very expensive for mostconsumers. Most foreign cosmetics companies selling premium brandshave had a difficult time developing the low volume premium market inIndia. Many had to re-work price strategies towards the mass segment.Price is not the only reason responsible for their problems. Poor assessmentof the size of the upper middle and high-income groups, and pricesensitivity even within these groups, had added to their problems. Competition

The Indian cosmetic market, which has been traditionally astronghold of a few major Indian players like Lakme has seen a lot of foreign entrants like Revlon to the market within the last decade. India is avery price sensitive market and the cosmetics and personal care productcompanies, especially the new entrants have had to work out newinnovative strategies to suit Indian preferences and budgets to establish ahold on the market and establish a niche market for themselves.

Given the price-sensitivity of the Indian consumer who do notnormally prefer to fork out a large sum at one time, many cosmeticcompanies launched their products in smaller pack sizes to make themmore affordable. Lakme and Revlon were the first to introduce small pack

sizes. Revlon introduced its small-range of 8 ml nail polishes and lipsticks,and was soon followed it its strategy by major Indian companies as well.Small pack sizes have proved to be very popular in the Indian market as itoffers a consumer lower purchase cost and the opportunity to try newproducts. THE MARKETING CONCEPT

The Marketing Concept was born out of the awareness that marketingstarts with the determination of consumers wants and needs with thesatisfaction of those wants.The concept puts the consumer both at the beginning and the end of the business cycle.

It stipulates that any business should be organizedaround the marketing function, anticipating, stimulating and meetingcustomer’s requirements. The customer, not the corporation has to be thecentre of the business universe.A business cannot succeed by supplying products and services thatare not properly designed to serve the needs of the customers. Only theMarketing Concept is capable of keeping the organization free frommarketing myopia.

MARKETING STRATEGY
Lakme: To Strongly Position The Brand On The Youth Platform. Lakme Lever is planning to revive its youth-oriented brand, Elle 18.Having put the brand on `maintenance’ mode, this division of HLL wasfocusing on Lakme.Speaking to Business Line

, Mr. Anil Chopra, Vice-President, said: “Weare relooking at the Elle 18 brand.”Launched in 1998, Elle 18 targeted the first-time cosmetic user andcurrently sports two product lines comprising lipsticks and nail enamel.”In the first three years, Elle 18 registered sharp growth rates and thepurpose was to create a new segment of consumers,” said Mr Chopra.At that point of time, Elle 18’s main competitor in the youth-basedcosmetics market was Tips & Toes, a brand that is almost non-existenttoday. Pricing strategy

With a pricing that is almost one-third that of Lakme, Elle 18, of late,has also unleashed a campaign based on its products.”There was a change in our strategy in the past. While Lakme hasbeen high on innovation, Elle 18 has been on maintenance mode. Thebrand has been growing at a lower rate than Lakme. But now we are now

relooking at Elle 18 as there is still no brand that is so sharply positioned onthe youth platform,” said Mr Chopra. There was a conscious price differential between the brands toattract the first generation users of cosmetics. So, while a Lakme Lipstickwould have an MRP of Rs 165, an Elle 18 Lipstick was pegged at Rs 55.Meanwhile, Lakme Lever continues to innovate for its existing rangeof skincare and color cosmetics under the Lakme brand.

It recently relaunched its skincare range under the name of LakmeFundamentals.”While there is no new product, we will be upgrading the existing skincare range with new formulation and packaging,” Mr Chopra said.In color cosmetics it has roped in designer Sabyasachi Mukerjee tounleash the `Free Spirit’ range as part of its winter collection.

“The overall beauty market has been growing between 15-20 percent but we have been growing higher than the market.”However, it is the salon business that has been registering thehighest growth rates for Lakme Lever.”With a small base, our salon business has been growing the fastest,”Mr. Chopra said.

There are plans to have 100 Lakme salons by the end of the yearfrom the existing 92 salons across the country.Besides, Lakme Lever intends consolidating its hair care portfoliolaunched last year under the Lakme Hair Next brand.”We do not want to add to existing hair care products in the market. The brand has been launched in the hair styling category and we want tocreate awareness and educate our consumers without confusing them withmore products,” said Mr Chopra. Lakme Restages Its Opera

Its turnaround sketch has got just a few strokes – grab the fashionplatform, spruce up the supply-chain, and test the rural waters.High priestess of sacred Indian temple meets English army officerwho’s unwittingly strayed into holy ground.

They fall in love. Her orthodoxfather vows vengeance… That’s the story of Lakme, a 19th century operawritten by Frenchman Leo Delibes, from which Simone Tata borrowed thename Lakme (French for Lakshmi, the name of the priestess).By 1999, the world looked set for a revised version of the work.Simone Tata was no longer on the scene. And a home-grown fashion brand-often personified as the high priestess of fashion in the country-had beensold to a multinational company whose provenance was English, well,Anglo-Dutch, actually-Hindustan Lever Ltd (HLL).

Worse, with HLL not appearing too keen about the brand-thecompany, predictably, denies this-Lakmé, the brand looked all set to followthe spirit of Lakmé the opera (a tragedy).Lever was right. The aria, as is now evident, wasn’t quite over.Standing amidst the jamboree of what is, arguably, India’s
first fashionsummit, the Lakmé India Fashion Week (LIFW for short), Anil Chopra, 51,the affable Director who heads Lakmé Lever Ltd is bullish about the brand’snew positioning: ”By taking on the fashion and glamour platform, we have,in a way, not just taken a lead (over others), but also got a virtualownership of this plank.

It will be very difficult for any other brand to adopta similar approach.” And reactions to the born-again Lakmé at the LIFW didsuggest that Chopra and the brand were on to a good thing. ”Lakmé is atthe forefront of product-innovation. Almost everyone has a Lakmé-something in their (cosmetics) collection,” gushes Mumbai-based fashionchoreographer Lubna Adams. So, is Lakmé back? Getting the focus right

A little bit of Lakmé history: in 1995, Lakmé Ltd (a Tata Groupcompany) and HLL formed a 50:50 venture Lakmé Lever that would marketand distribute Lakmé’s products. In 1998, Lakmé sold its brands (and the50 per cent it owned in the JV) to HLL, renamed itself Trent and entered adifferent business (retail). Only, the years between 1995 and 2000 saw HLLwrestling with several issues with a bearing on Lakmé’s future.

The FAQs: With Ponds becoming part of HLL, what happens toLakmé’s skincare business? What does Lever’s launch of Aviance mean forLakmé? And why is it so difficult to find Lakmé products?Chopra accepts that distribution has been the company’s Achillesheel for some time: ”The supply-chain hasn’t been as robust as it shouldhave been, but that has been the result of our efforts to reposition andreintroduce the brand.”

The positioning bit, although complex, is clear:Ponds is Lever’s primary skincare brand; Lakmé, its apparitional colourcosmetics brand, which also has a presence in skincare. The ‘aspirational’ qualification would mean Lakmé would compete atwhat the company terms the ‘upper-mass’ (premium) end of the colourcosmetics spectrum (products priced between Rs 85 and Rs 250) where aslew of competitors, ranging from Revlon (through Modi Revlon) toChambor, are already slugging it out.

Says Meghna Modi, 26, ExecutiveDirector, Modi Revlon: ”The numbers say it all. According to ORG-MARG’sretail audit, we have an 84 per cent share of the premium end of the colourcosmetics market.” Chopra is quick to rubbish this claim; he says ORG-MARG does not have a representative sample of the 60,000 outlets throughwhich colour cosmetics are sold in India. Likely outcome by the strategy

The premium segment, however, is just a slice of the Indian marketfor colour cosmetics (estimated size: Rs 275 crore). Today, the companyhas three brands: Lakmé itself, which will be positioned as a fashion-brand;

Elle 18, which has enjoyed success as a college-girl brand; and Orchid, asuper-premium brand that hasn’t really seen much excitement since its1999-relaunch. The company plans to re-re-launch Orchid by end-2000, and is test-marketing Elka, a brand targeted at the lowest-end of the colour cosmeticsmarket. The brand, Chopra claims, could also catalyse Lakmé’s entry intothe hinterland, but only if tests show there is a rural market for colourcosmetics. Says Nikhil Vora, 28, Portfolio Advisor, Sharekhan.com: ”Thoughrural markets are big potential, a company has to think of segmentscarefully.

Any expansion into new areas should be justified by returns.”Lakmé will remain a loner in the Lever stable: Unilever does not havea presence in the colour cosmetics segment. That means Lakmé Lever willhave to depend on its own kitchen garden. But a focused-most of itsskincare business and all of its exports business have been taken on byHLL-Lakmé does seem to be on a come-back trail. It’s still the second act,but this opera could well have a happy ending.

Lakme’s Profile
Lakmé is anIndianbrand of cosmetics, owned byUnilever. Lakme started as a 100% subsidiary of Tata Group(Tomco), it was named after theFrench opera Lakmé. At the time of its establishment, Indian cosmetic industry was rather nacent, and there was a very small market base.Simone Tatajoined the company as director, and went on to become itschairman.

When Tata’s saw a bigger growth potential in the retail market,and greater competition from global companies in cosmetics, they eneteredinto a 50-50 joint venture withHindustan Lever Limited(the Indiansubsidiary of Unilever) in1995to form Lakme Lever. In1998Tata sold of there stakes in Lakmé Lever to to HLL, for Rs 200 Crore (45 million US$),and went on to create Trent and Westside. Half a century ago, as India tookher steps into freedom, Lakme, India’s first beauty brand was born.

At atime when the beauty industry in India was at a nascent stage, Lakmetapped into what would grow to be amongst the leading, high consumerinterest segments in the Indian Industry – that of skincare and cosmeticproducts.

Armed with a potent combination of foresight, research andconstant innovation, Lakme has grown to be the market leader in thecosmetics industry.Lakme today has grown to have a wide variety of products andservices that cover all facets of beauty care, and arm the consumer withproducts to pamper herself from head to toe. These include products for

the lips, nails, eyes, face and skin, and services like the Lakme BeautySalons About LAKMÉ
The Carreras family established LAKMÉ Cosmetics in 1997 and isindependent, self-financed and family owned. The family has over 40 yearsof manufacturing experience in salon products. Lakmé East
a regionaldistributor of Lakmé Cosmetics with its main office in Colchester isconveniently placed to provide you with all the guidance back up andsupport you’ll ever need.

The Products LAKMÉ leading hair care products are developed exclusively fordistribution to hair and beauty salons. Branding and packaging of theproduct range is first class and they are tested and manufactured solely forthis brand name and no other. The very best raw materials are used inmanufacture using the latest technology and adopting the highest levels of hygiene. All product formulation is in accordance with the health standardsof the European Union and the United States Food & Drug Administrationand is subject to ISO 9002 certification.

The Promotion
Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGE forcustomer sales and your own use, with freestanding display unitshighlighting the unique quality and variety of your products and enhancingthe quality of your
sales and service. Combine this with FREE ongoing in-

salon education and you have the perfect basis to grow your business foryourself, but not by yourself. Lakme expands skin care products Lakme, the Indian cosmetics giant has expanded the range of skincare products it markets in Sri Lanka, and unveiled the company’s newinternational logo and image, Lakme’s local distributor Hemas Marketing(Pte) Ltd., has announced.Launched in Colombo earlier this month, the addition to the Lakmeskin care range are the Lakme Nourishing Cold Cream, Nourishing BodyLotion, pH-Balanced Face Wash, Calamine Lotion, Sun Screen Lotion andHair Remover.

Prior to the launch of these products, Hemas Marketing wasresponsible for the distribution of Lakme Maximum Moisturiser and LakmeDeep Pore Cleansing Milk, which the company will continue to market innew packaging.

Revlon Profile
Revlon is a world leader in cosmetics, skin care, fragrance andpersonal care and is a leading mass market cosmetics brand. Our vision isto provide glamour, excitement and innovation through quality products ataffordable prices. To pursue this vision, Revlon’s management teamcombines the creativity of a cosmetics and fashion company with themarketing, sales and operating system of a consumer packaged goodscompany. Our global brand name recognition, product quality andmarketing experience have enabled us to create one of the strongestconsumer brand franchises in the world, with our products sold inapproximately 175 countries and territories.

Revlon’s brands includeRevlon®, ColorStay®, New Complexion®, Revlon Age Defying®, Almay®,Ultima II® and Flex® and Charlie®.Revlon was founded in 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the “L” inthe REVLON name.Starting with a single product – a nail enamel unlike any before it -the three founders pooled their meager resources and developed a uniquemanufacturing process.

Using pigments instead of dyes, Revlon was able tooffer to woman a rich-looking, opaque nail enamel in a wide variety of shades never before available.Revlon’s first beauty item was nail enamel. Opaque and long-lasting,it was an improvement over the more transparent, dye-based products of

other manufacturers. Revlon’s nail polish owed its superiority to the use of pigments, which also allowed a wider color range than the light red,medium red, and dark red then available. Initially, the revolutionary “creamenamel” came from the tiny Elka company, in Newark, New Jersey, a polishsupplier to beauty salons for whom Charles Revson began to work as asales representative in 1931. Charles Revson and his older brother Josephdistributed Elka nail polish as Revson Brothers. Within a year, however,Charles Revson decided to open his own nail polish company, going intopartnership with his brother and a nail polish supplier named Charles

R.Lachman, who contributed the “l” to the Revlon name. Revlon was formedon March 1, 1932. Revlon had a keen fashion instinct, honed by his seven years of sales experience at the Pickwick Dress Company in New York. Coupling thiswith his experience at Elka, he noted that the permanent wave boom wasmaking beauty salons more popular and that demand for manicures wasrising in tandem. He therefore targeted beauty salons as a market niche–afortunate choice whose importance would grow.Within its first nine months, the company boasted sales of $4,055.

There was a sharp rise in sales to $11,246 in 1933, the year the companyincorporated as Revlon Products Corporation. At the end of 1934, thecompany had grossed $68,000. By 1937, sales multiplied more than 40times. In that year, Revson decided to enlarge his market by retailing hisnail polish through department stores and selected drugstores. This gavehim access to more affluent customers as well as those with a moderate

amount of money to spend on beauty products. Formulating a maxim hefollowed for the rest of his life, Revson steered clear of cut-rate stores,selling his product only at premium prices. Marketing strategy

Postwar sales strategy, too, was influenced by increases in spendingand department store credit sales. Returning interest in dress sparked thecompany’s twice-yearly nail enamel and lipstick promotions, which werecrafted in anticipation of the season’s clothing fashions. Each promotionfeatured a descriptive color name to tempt the buyer, full-color spreads infashion magazines, color cards showing the range of colors in thepromotion, and display cards reproducing or enlarging consumer ads.Packaging was designed specifically for each line.

The Fire and Ice promotion for fall 1952 was one of the most successful. Itsfeatures included the cooperation of Vogue magazine, which planned itsNovember issue around the lipstick and nail enamel, “push” money given todemonstrators in stores without Revlon sales staff to insure full retailcoverage, and radio endorsements written into scripts for performers suchas Bob Hope and Red Skelton.

These efforts produced excellent publicityand helped to raise 1952 net sales to almost $25.5 million. The company received its next boost from its 1955 sole sponsorshipof the CBS television show The $64,000 Question.

Though initially reluctantto go ahead with this project, Revson was persuaded by the success of rivalHazel Bishop, whose sponsorship of This is Your Life was providing seriouscompetition for Revlon’s lipsticks. Attracting a weekly audience of 55 million people, The $64,000 Question topped the ratings within four weeksof its debut. Revlon’s advertising budget for the year, $7.5 million, provedCharles Revson’s adage that publicity had to be heavy to sell cosmetics; asa result of the television show, sales of some products increased 500percent, and net sales for 1955 grew to $51.6 million, from $33.6 millionone year previously. Takeover strategy

The 1970s began with annual sales of about $314 million. TheCosmetics and Fragrances division, its six lines separately aimed,advertised, and marketed, was the industry leader in all franchised retailoutlets. Revlon fragrances, such as Norell and Intimate for women andBraggi and Pub for men, had also become familiar to U.S. consumers.Revlon also had a new line of wig-maintenance products called WigWonder.An important 1970 acquisition was the Mitchum Company of Tennessee,makers of antiperspirants and other toiletries. Mitchum joined the ThayerLaboratories subsidiary, formerly Knomark.

Mitchum-Thayer division’swidely publicized products required a 1971 advertising budget of $4 million.In 1973, Revlon introduced Charlie, a fragrance designed for theworking woman’s budget. Geared to the under-30 market, Charlie modelsin Ralph Lauren clothes personified the independent woman of the 1970s.Charlie was an instant success, helping to raise Revlon’s net sales figures to$506 million for 1973 and to almost $606 million the following year.

Strategy formulation framework

RevlonLakme
CRITICALSUCCSESFACTORWEIGHTRATINGWEIGHTEDSCORERATINGWEIGHTED- SCORE
PRICE0.15 30.4540.60FINANCIALPOSITION0.10 30.4340.40CONSUMER LOYALTY0.10 40.4040.40ADVERTISING0.10 30.3030.30PRODUCTQUALITY0.10 40.4030.30INNOVATION0.15 30.4530.45MARKETSHARE0.10 40.4020.20MANAGEMENT0.06 30.1830.18GLOBALEXPANSION0.15 30.4540.60 TOTAL

13.333.43

OBJECTIVES OF STUDY

To find out the impact of Lakme and Revlon informativeCosmetics Products on the brand switching behavior of theconsumer. 
To study the effect of Consumer Satisfaction on themarketability of Cosmetic products. 
To know the impact of various striking features on buyersbehavior. 
To know the media access by consumers to know aboutCosmetics Products. 
To know various cosmetics product range in the market levelfor Cosmetic Products (Nail Enamels, Lotions, Shampoo).

STRENGTHMarketing & Sales
A
commitment to innovate, Expand and excel:-

All India network of sales and distribution with service reaching totwo hundred thousand outlets via a network of twelve hundred distributors. Twenty- One Depots spread across the country integrated through asingle IT network.A 300 plus professional field force serving the distributors and themain retail stores on a regular basis.Marketing Department comprising of seasoned professionals everadaptive to market dynamics.

Association with top of the line advertising agencies to communicateand connect its brands to the consumers. Technology Center Providing and maintaining the international quality that theconsumer deserves- Qualified team of technologists and scientists endeavoring to adaptformulations, develop new products & packaging.

Well equipped laboratory to control and meet the internationalquality standards of our products. Consumer Preferences of CosmeticsToplines

Buying Preferences

Among cosmetics, more than half the consumers want Lipsticksthe most. Nail Polish is a distant second. 
Mid and Premium price range are the most preferred.

Advertising Recall

Only Lakme ads recalled significantly by consumers at theunaided level. 
When prompted for cosmetics, Lakme ads dominate the top of mind ad recall among consumers. Revlon ads also recallednoticeably. 
Brand Preferences

Lakme is the only cosmetic brand getting significant brandrecall at the unaided level. Revlon and L’Oreal recallednoticeably. 
When prompted for cosmetics, Lakme dominates the categoryin consumer minds in a big way, be it for brand recall or forintention to buy. Revlon a distant second on both counts.

Promotional schemes offered by Lakme andRevlon
Promotions have emerged as the most economical and effective wayto establish a personal rapport with your customers. They have alwaysbeen a part of the consumers product s game, but nowadays, it’s almostlike one can’t buy a tooth brush without having to tote a detergent barhome as well. A gift on a festive occasion or free with the purchase of acertain product goes miles in leaving a favourable mark on the minds of your customers.Marketing heads are exploring the effectiveness of each and everyproduct as a gift to boost sales.

This frenzy has led to a deluge in the rangeof innovative products entering this market. Infact, the type of productsentering the gifting and promotional category is simply mind-boggling anddiffer from product to product. The type of products offered as apromotional item range from a small ball pen to expensive electronic items.Infact, the meaning of the term gift seems to have attained a widermeaning. People tend to offer just about any thing under the label “FreeGift Inside”.

Value Perception could be one reason why this freebie strategy ismore effective. Five rupees off means five rupees less to the manufacturer,but a gift item which sells for five rupees might be sourced for just Rs. 1- 2,making the offer far more cost effective.Large MNCs like the Levers, Godrej, Philips,revlon etc. have resorted to

giving their own lesser known brands free with their popular brands andvice-versa. This automatically tends to reflect a better sales volume as faras both the brands are concerned. The companies tend to save theirpromotional expenses and utilise the same to generate better sales in therespective brands. This trend is extensively practiced by the electronic industry. Thecompanies like AIWA and Videocon have been known to offer irresistiblefreebies like: a walkman or a small sound system free on the purchase of acolour television, over 10 CDs free with a purchase of a sound system etc.Such moves by these companies forced better-established brands likeOnida etc. think on their feet.

This trend has come in as a zephyr to the lesser popular brandsstriving to establish themselves in the market. Companies that cannotinvest a heavy sum in promotion or cannot afford to engage in a massivesampling exercise simply tie up with better-known brands for their productsto be offered as free gifts. This acts as a mutual benefit for both the parties,as one achieves better sales while the other achieves better exposure at avery nominal expense.

There tends to be a small amount of exploitation of a few lesser-known brands in such exercises, but every thing The latest trend as apromotional strategy that has set the marketing arena abuzz is contests.Every second brand seems to be running a contest to actively involve thebuyer in his brand. The prizes given out by companies in contests rangefrom gold, diamonds to cars, homes and free trips abroad. The companiesare tying up big celebs and running contests where the customer gets to

dine with his favourite star on winning the contest. Recently Axe for it’sbrand of deodorant ‘Vodoo’ actually booked a far away island in Kerela andheld the longest dance party. Customers had to correctly answer thequestions in the form placed in its pack to qualify for this party. Anotherwomens wear store ‘Scullers’ actually ran a competition for the women inBangalore where one could actually design a garment of their choice – tops,trousers, capris, skirts and shorts – and have it hit the Scullers Womenswear shelves. Infact a leading cosmetic company Lakme also ran a similarpromotion where customers could create a shade and give it the name of their choice.

It is not only the customer who is being lured by such marketinggimmicks. The companies are running extensive schemes for the dealerstoo. Bell ceramics had recently organised a largest party in the ceramicsindustry for their dealers at ‘Tikujini’s Wadi’, Thane. The dealers along withtheir whole family were invited to this party.

Apart from luscious snacksthere was a whole lot of entertainment activities like games, competitionsetc. for children.But at the end of the day what emanates as the greatest question is, thecompanies may have no doubt charged a premium for their products andservices earlier but how safe are they by indulging in such practices? Arethe companies really benefiting by sacrificing on their profit margins? Or isit as one of a customer puts it “ They have been charging exorbitantpremiums earlier, its time they returned some”.-No one would know exceptthe horse himself

SUGGESTIONS
I would like to suggest few points over which a thought can be givento overcome that drawback due to which some of the problems are facedby the products of Lakme and Revelon Products.1.Company should encourage solving the customer’s complaint.Customer satisfaction should be the ultimate aim so that customercomplaints 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 beeasily removed.5.The company should provide good margin for distributorship.

FINDINGS
The products of Revlon Groups of Companies are the leading choicein New Mumbai and it is far ahead from its competitors in terms of customers. The products of Revlon Groups of Companies are preferredbecause of its low price and easily available. While other brandedcompanies product are not preferred due to high price and brand loyalty.

The advantages which the products of Lakme Groups of Companies sharesover other branded companies products are as follows.1.The products of Revlon Groups of Companies are preferredbecause of its low price and easily available. While other brandedproducts are not preferred due to high price and brand loyalty.2.The products of Lakme Groups of Companies are easily availableat easy payments and had a very good after sales retailerservices.3.People who are more conscious about their health are more awareabout products and therefore prefer the products of RevlonGroups of Companies.4.Users of personnel & Health care products also generally prefer forbuying the products of Revlon Groups of Companies.

CONCLUSION
The overall average sales of Revlon Products are 54.9% in all marketsand Lakme Products are 45.1% in all markets. The average sales in different markets are as follows :- 
The average Sales Across East Mumbai markets are 50.2%respectively. 
The average Sales across West Mumbai markets are 48.9%respectively. 
The average sales across North Mumbai markets is 42.1%respectively. 
The average sales of Lakme & Revlon across South Mumbai marketsis 37.2 % respectively. 
The figure reveal that Lakme & Revlon has good market penetrationin all most all the market covered in the survey where compared toits competitions, Like HLL, NIVEA and Others. 
Still there is a need to Promote Lakme to reach at the level of productlike ponds, pears etc.“Monthly survey should be conducted to improve its brand imageand increase customer loyalty”.

BIBLIOGRAPHY
The essence of the report, are inspired and collected by these sources,listed in this chapter, not fully but partially as advisory notes. WEBSITES

www.lakmeindia.com

www.revlon.co.in

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