Usha Pravin Gandhi College of Management

Direct Marketing TyBmm-B

By Simrin Manwani-69 Ragini Sabnavis-82 Aneri Shah-86 Disha Shah-91 Shravan Shah-99 Shwetal Shah-100

Acknowledgement This project would not have been possible without the help of our Supervisor, Prof. Sameer Virani who was abundantly helpful and offered invaluable assistance, support and guidance. Special thanks to our Principal Dr. Mrs. Geetha Mohan for providing us with an opportunity to conduct this project.

Chapter 1 What is Direct Marketing? Direct marketing means directly reaching a market (customers and potential customers) on a personal (phone calls, private mailings) basis, or mass-media basis (infomercials, magazine ads, etc.). Direct marketing is often distinguished by aggressive tactics that attempt to reach new customers usually by means of unsolicited direct communications. But it can also reach out to existing or past customers. A key factor in direct marketing is a "call to action." That is, direct marketing campaigns should offer an incentive or enticing message to get consumers to respond. Direct marketing also involves the business attempting to locate, contact, offer, and make incentive-based information available to consumers.

Reason for designing direct marketing plan We have seen many advertisements, promotional offers, point of sales, direct marketing campaigns for Lakme beauty products be it cosmetics, creams or face washes, but rarely have they advertised their salons, thought behind it being the salon should advertise itself and the service would speak for itself and having 110 salons does speak for itself. But lakme salons that cater not only to premium segment but also college going youth with their affordable services can have more foot-fall if a direct marketing campaign in the form of various channels is created.

Chapter 2 2.1 The Origin of Lakme Lakm is an India brand of cosmetics, owned by Unilever. Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it was named after the French opera Lakm, which itself is the French form of Lakshmi, the goddess of wealth, also renowned for her beauty. Indian cosmetic Lakme was started in 1952, famously because the then Prime Minister, Jawaharlal Nehru, was concerned that Indian women were spending precious foreign exchange on beauty products, and personally requested JRD Tata to manufacture them in India. In 1996 Tata sold off their stakes in Lakm Lever to HLL. Even today, when most multinational beauty products are available in India, Lakme still occupies a special place in the hearts of Indian women. Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India. Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services. Lakme has been ranked as 47th most trusted brand in India by The Brand Trust Report. The company is the title sponsor for Lakme Fashion Week (LFW) a bi-annual fashion event which takes place in Mumbai.

2.2 SWOT ANALYSIS Strengths 1. Brand of HUL:2. Good brand recall and recognition:-Lakme has been in beauty and cosmetics segment since long duration so people are aware of its existence.

3. Trustworthy in spite of being an Indian brand:- People rely and feel good by using foreign brand but Lakme, as Indian brand is good in terms of its qualities, price, range of products and service. 4. Professional and Customized services:-Professionals help to understand problems at individual level and get the right treatment according to the cause. Weaknesses 1. No hair care products in market for daily usage: Like other brands, it has no different range of hair care products, which makes them aware as well as reluctant to use the brand products. 2. Pre-assumption about pricing:- People have a misconception that Lakme salons services are highly priced.

3. Not visibility through media: Lakme has advertised its products but there is no visibility through media, so it lacks awareness. Opportunities 1. Scope for reaching a wider segment: As we are established brand towards elites, now we are also targeting the middle and upper middle class.

2. Tie-up of lakme hair products with other salons:- By having tie-ups with other salons, it makes Lakmes products visible and the consumption pattern will also increase. Threats 1. Competitors:-Juice, B-Blunt and enrich: Our competitors include Juice, BBlunt and enrich which also offer same services in the market. 2. We have commoners as our brand ambassador, no prominent face:-Due to having common faces, it may act as a threat as there would not be any prominent face to look upon and the continuity of recognition would be lost. 2.3 Situation Analysis The increase in Cosmetics by Indian women has brought about more competitors in the market. People today want to look good. So, the demand for beauty parlors to enhance looks is the trend. The packages offered today are bizarre and extremely bizarre! After snake massages and animal slime creams, this one is going to scare you more than gross you out. Its a treatment where women are actually having their faces set on fire in order to boost the skin and iron out wrinkles. The ritual has become the talking point after a photo of a woman with her face ablaze was posted to a Chinese message board online. People are willing to get bird dropping facials, snail slime creams, placenta shampoo, whale vomit fragrance, snake venom cream Vampire facial. Verdict: People are more open and are not shy of using treatments to look good. They are not embarrassed of using make-up and are open with the idea of taking care of their appearance. This is why a salon, especially with a brand value that Lakme has, is a sure success formula.

Chapter 3 Lakme Salon Direct Marketing Plan 3.1 Assumptions We are designing a direct marketing plan for Lakme Salon. Lakme is a known brand name when it comes to cosmetics. The company also ventured into the salon area and faces competition from other established brands like Enrich, B-Blunt, Juice and other local beauty parlors. The first assumption is to provide a range of different packages which suit not only the elite but also the common man. Through the various combo offers, discounts and vouchers Lakme Salon wants to become a household name as the best salon in the category. The second assumption is that Lakme provides high end services including chemical and complex physical procedures at a slightly more nominal, mid-range rate. It has hired trained and experienced stylists with experience in films, sitcoms and the fashion industry.

3.2 Segmentation Demography: Age: the age group is essentially from 13 to the elderly age-group of 50 and above. Gender: It is a womens salon.

Income: The average income level of the target age group is Rs. 40,000 per month and above, individually or family income. This is so because the rates are not extremely pricey but the services offered are of the highest quality. Education and occupation: here, mid-level managers, high level corporate, associates, professionals, college students, graduates and post-graduates are the typical consumer profiles. Psychographics: The lifestyle of Lakmes typical consumer is a moderate to high lifestyle. He wants to be recognized and associated with fanciness and sophistication. He could be a striver, experimenter or even a believer. The consumer wants to look good. He may be insecure with his standing in society and probably wants to keep up with the latest fashions and trends and aspires to have a certain sough-after standing in society. The average consumer, be it and elderly woman or a college student wants to look and probably feel good as well as they want to feed their ego and attain inner satisfaction. The consumer will be open to new things and have an eye for beautiful things. They appreciate beauty in all forms. 3.3 USP: 1) Lakmes primary point of difference and strength is its brand name and the fashion and trendy tag attached to it. 2) Its second USP is that it is offering premium services and world class stylists at nominal rates affordable even to the middle segment. 3.4 Motivational Factors: Lakme is the first Indian cosmetic brand to have a high degree of recognition and recall when it comes to skin care products as per Nielsons research conducted in 2009. The recognition and recall are especially essential

because if a brand is at the top of the mind as well as remembered when the act of purchase is being done, the brand is a sure success. Our salons offer various discounts and offers on various services provided like haircuts, styling, bridal packages, etc. These services can be availed at various outlets in a city. Sales promotion using various forms of media is especially advantageous because consumers love sales. They love maximizing benefits at a lesser cost. Our staff consists of professional hairstylists who have good amount of experience in entertainment industry. The branch managers on an average have 15 years of work experience. Stylists, masseuse and the make up artists are trained and are aware of todays state-of-the-art chemical treatments.

Our salons promise a very relaxing experience. We also customize our services as per the likes of our clients keeping their skin types, hair quality and color in mind. All the services offered are flexible and are tweaked as per the consumers physical attributes. E.g. We have milk-free products for lactose intolerant consumers and natural ingredient hair and skin products for consumers who are particular about chemical free. We also offer a card membership comprising of 3 phases- platinum, silver and gold. This is a very exclusive membership program as it has more benefits for our fellow customers. We believe in giving our customers the best salon experience.

Hair care products which are free from ammonia and full of fruit extracts are available only at our salons. Lakme is very particular about the products it uses. There are special Lakme professional products that are available only in the salons and not for commercial consumptions. Lakme salon has a wide presence in India with about 175 salons. In Mumbai the salon is present in places like Bandra, Oshiwara, Vile Parle, Coff parade.

3.5 Logo Analysis

The new Lakme salon logo has been refurbished due to the following reasons: 1) The new logo symbolizes change. It represents that this brand is ready to move with the times. It is a fun, colorful and wishes to build an unconventional quirky image that people can relate to. 2) The new logo represents an aspirational brand, something which people who cant afford it want to have and something which people go to are proud of. 3) A lot of times youthfulness represents beauty. It represents youth. It celebrates the young. But it shows that youth is a state of the mind. An elderly person or a middle aged woman must be proud of the way she looks and not shy or embarrassed to visit a parlor to enhance it. The parlor breaks all age barriers. 4) The range of colors in the logo literally represents the color shades especially the spring shades which expresses Summer and light and warm colors. This new logo has an extremely warming and homely effect which is precisely the image we want to portray. The salon exudes friendliness and warmth coupled with modern and state of the art services. 3.6 Location: Lakme has 175 salons, 11 studios in over 40 cities including metros as well as 2 tier cities. The fashion hubs like Mumbai and Delhi have over 8 outlets and even smaller cities like Pune, Dehradun, Udaipur, Bhopal have lakme outlets.

By this lakme has covered huge geographic locations because they have realized how people from small towns are equally influenced by films and the glamorous world portrayed by the media and is therefore an important segment.
Anil Chopra, CEO of Lakme in Bombay Times, at the launch of salon outlets in Rohtak and Ghaziabad said, Lakme exudes confidence and hold women at the highest pedestal. Women are the epitome of beauty and Lakme believes this is true across all geographical boundaries. In fact, Lakme in spreading out in tier 2 cities since women everywhere are becoming more particular about their appearances. It is not like the 50s where once a woman was married she forgot herself and the way she looked. Todays modern woman is evolving and she is not shy to admit it. More than that, women all over the world are aspiring to be like that

3.7 Media habits and selecting right media: Our prospects are youth and middle age where Internet is used by each one of them. Thus, Internet marketing would include: Direct mailers along with discount coupons. Interactive websites to grab latest offers and book appointment pop up advertisements. Our customers are newspapers and magazine readers this gives us the opportunity to advertise in the most preferred copies by them which includes: Bombay Times, Elle, Stardust, Femina, Filmfare. These copies would comprise of creative print ads and leaflets, also inserts in the newspapers to redeem offers and discounts. Our prospects are most likely to be found in malls too hence free hair check ups, skin tests, counter of new range of make up products for trials. Brochures with seasonal offers and periodical updates of the salon will be sent to all the customers who are a part of the loyalty program. To make our salons more viral and known we would be targeting colleges, institutes, workplace by conducting seminars and workshops. We would be sponsoring college festivals and putting up stalls in the same to essentially target the youth who are vivacious and are open to new ideas and

concepts. Theyll probably the ones wholl try a pink streak color or a red highlight. Theyre the experimental lot. Lakme sponsors Lakme fashion week every year, also would sponsor various others events designer fashion shows, NGO's events, etc. A lot of fashion students are involved in the fashion show and there could be seminars held on campus where stylists could teach them a little about matching make-up with their clothes. 3.8 Developing the communication Strategy Communication does not "just happen." Effective communication requires effective strategy - a coherent plan of action. We believe that "perception is reality." More to the point: Your publics' perception is your reality. In order to effectively reach out to our target audience we would be communicating about our strategies, special discount offers through leaflets (rate card), magazine ads, special voucher coupons, loyalty card program, wedding brochure which covers different bridal looks. Fashion Week with Jet Airways Since Lakme does have a fashion week, that can be used as a tool to promote the services of the salon, by tying up with Jet Airways, this not only brings in more audience but also a diverse crowd, by having a fashion show on the aisle of the plane and the T.V screen displaying various services offered in the salon, the inflight magazine will carry vouchers with various schemes exclusive to Jet- airways passengers which can be used for a period of 6 months to avail the services at the salon, Jet also has its own frequent flier mile program which can also be used to avail the salon services. Loyalty Card Program In this we would be giving out memberships after the usage of services worth Rs.2000. the whole idea is to ensure that our customers visit our salons more frequently and soon get upgraded to the silver, gold and platinum card membership. Since the Lakme salon is in the service industry, it is very important to gain peoples trust and get repeat customers, which is possible only with attractive schemes and exclusive offerings for the loyalty card holders.

Besides being given the loyalty cards, they will also be sent out various emailers, for year round schemes, birthday messages and various contests and events taking place. Objective of this program: The aim of this program is to get the switchers to become loyalists but moreover it is necessary to retain the loyal consumer base. The loyalty program ensures that Lakme is the first thing that comes to a persons mind when they think of a hair cut because the attractive offers and the continuous loyalty interactive program is a win-win situation for both the parties.

Presence on Social networking websites We would also have a very active Facebook page which will give tips and run various contests. We would also be having Win it if you like it campaign where for e.g.50th, 100th like would get a free haircut and styling, highlights session. We would also be updating about our special offers, discounts, bridal offers, and spa treatments on our facebook page. The Brand Ambassador Campaign Ordinary people got to the salon with aspirations of looking beautiful and feeling confident, thats the reason why Lakme chooses from the common people, someone all the other women can relate to and create a trust for the brand, this will be the longest running contest where the selected contestants will go through many rounds and the lucky winner will be the face of Lakme salon for a year.

Interactive Hoardings The hoardings across the city will not display any information other than pictures of Lakmes professional range of products used in the salons, and for more information the viewers can place their phone on the QR code on the hoarding which will direct them to the website where they will find all the relevant information, this will also make the hoardings interactive and lead to direct response. Attractive Magazine Ads Lakme is promoting the special range of services like enjoy haircuts, styling in the happy hours (11-2) at reasonable rates. 3 new ads will be released within a period of 3 months.

Lakme is also promoting our hair care offers which tempt prospects to straighten, color or cut their hair at half the cost (as per our rate card). This communication strategy tempts the women to try a new hair look even if she doesnt want to cut her hair length.

We offer exciting offers for the festival of holi.Holi splash offers all ladies to have a stunning makeover which includes a trendy haircut + facial + pedicure + manicure + face peel. The whole idea is that everyone likes to play holi but forgets to take of their soft skin and beautiful hair which are harmed by the chemicals used in making holi colors. We at Lakme salon believe that our customer deserves every pampering she can get after the festival of Holi to rejuvenate herself.

The third advertisement of the trio is the wedding makeup advertisement that features a detailed list of the summer and spring hue shades offered by Lakme. It shows a glimpse of a few of make-up styles that the salon offers as one of the USPs of lakme is its bridal makeup.

Targeting the New Age College Youth Today college girls are as much into studies as they are into grooming themselves, and they always look out for pocket friendly services that would make them confident, Lakme will go around colleges with mini salon vans, and give the girls a chance to try out the manicures, pedicures or a hair wash session and distribute vouchers for the same.

Newspaper print media Vouchers will also be given out in newspapers with special happy hour scheme wherein they may get the services at discounted rates or get two for the price of one. A pamphlet with all the services on offer will also be distributed. The two magazine ads will be a two page spread with call to action in various forms by coupon inserts and calling on a number for consulting with industry experts.

We would also be sending leaflets along with the newspapers which describe our services and pricing. This would be a great way to put forth the different services we offer directly to our target group which is women. Women generally are looking out for various offers when it comes to haircuts, manicures, pedicures, body spa, etc. Lakme has a good position in the market and when it comes to salon it slowly can reach out to more people by advertising its special discount offers.

The rate card will be attached with certain entertainment newspapers like Bombay times, HT Caf, DNA After Hours and Mid Day and also a little premium newspapers like Mint Lounge as the target audience are these readers. Greeting cards We would also be sending greeting cards to our clients. We will put up our special discount offers which lets our prospects pamper themselves with a new haircut, spa

on the day of their birthdays, wedding anniversary, Womens day and other such special days.

Catering to a New Segment Since make-up is Lakmes forte and weddings in India are a big market, this forte can be leveraged by targeting only this particular segment of clients, with elaborate brochures on the exclusive wedding services which will be distributed from collecting database at various wedding expos that happen in the city and having kiosks at such places.

We will also be reaching out to the new middleclass as we offer discounts, special combo packages. This segment is the one which has shown a bend towards spending on hair care, body spas and feeling beautiful on the outside. This direct marketing plan should attract more people and create a higher brand recall for Lakme salons.

Chapter 4 4.1 Competitive analysis Lakm, India's first beauty brand was born more than a half a century ago. At a time when the beauty industry in India was still very nascent, Lakm tapped into the beauty requirements of every woman and soon grew to be one of the leading, high consumer interest brand segments in the Indian skincare and cosmetic product market. It provides services in four categories, hands and feet, hair, skin and bridal grooming. The 2 major competitors of Lakme are Javed Habib and Enrich both n terms of sales and popularity. The following the major points of differentiation. The other competitors of a slightly higher segment are b.Blunt, Juice and Coleens.

Brand philosophy The ambience of the Jawed Habib salons reflect the passion and warmth of Jawed Habib. When you walk into one of the Jawed Habib salons, the ambience and personalised services ensures client satisfaction. "We don't just cut hair; we feel and understand and customise styles to suit your personality and life style", says Jawed. Enrich salon on the other hand is known for its steel cold decor. The environment is extremely professional and very rarely will your find stylists getting personal with the consumers. The brand exudes power and professionalism. Our

fundamental belief has always been that everyone has a gift. And a duty to recognise this in themselves and others. We practice this everyday by creating systems and services that help employees, customers and students alike - to be, look and feel at their confident best. Lakme as a brand exudes exclusivity and quality and sophisticated products. The salon is well established and the oldest. It's brand value is well known and it is somewhat considered as an aspiration all brand. Price The price of a regular hair cut of Lakme is Rs. 450. A haircut in a Jawed Habib would cost Rs. 500 and at Enrich it costs Rs. 600. Once could conclude that the pricing across the 3 parlors is the same as they cater to the same segment. Enrich is a little pricey compared to the other 2 4.2 Direct Marketing tools A number of direct marketing tools would be used to drag the attention of our customers through: 1. B2B catalogue: This catalogue will contain all the Lakme professional products that are used exclusively in Lakme salons for the purpose of sale to small beauty parlors in local areas. These local small time beauty parlors are lucrative opportunities and therefore sale to them over the other circulating brands like Matrix, Tresmee and L,oreal professional will be an excellent avenue for wider visibility for Lakme products. 2. SMS: This tool is most convenient and inexpensive medium through which prospects would be informed about our new offers, discounts and season packages. Also, we are an SMS away, here customers can fix their appointment and we'll get back to them. 3. Group Selling: Lakme would be targeting numbers of educational institutes, work place, communities, etc by conducting seminars. They would be introduced about our salons and professional products availability. 4. Direct Mail: Internet being one of the cost effective technique, Lakme would be using the same to update its customers about discounts and procedure to avail those.

4.3 Future Plans: 1) Lakme has its own beauty academy where they teach the art of makeup as well as hair and skin nourishment. This academy though established over a decade ago is not advertised very well. Thus, Lakme will promote their academy in fashion schools, graduation schools as well as in small time beauty parlors who is linked with Lakme professional range of products. 2) In malls, lakme intends to get a skin test done where people will be get a detailed report about their skin type and the level of damage. Based on that Lakme will suggest some tips as well as some services they can avail at the salon. 3) Also, there will be tie ups with multi-brand retails stores like Westside and Pantaloons where the mannequins will have a comb in their hair with a number of a Lakme salon on it. 4) Vending machines will be posted in fashion schools, certain colleges as well as in some prime malls where people could buy Lakme products. The vending machine would have the contact details and the link to the website on it of the nearest Lakme salon.