LAKME

Introduction
The Name Lakme is borrowed from
Lakshmi, the name of Priestess.
The rate is high in Skin Care segment as
compared to color cosmetic.
Lakme has a range of beauty products to
offer its consumers.
About The Company

Lakme is an indian brand of cosmetics found by
Hindustan Unilever in 1973.
Lakme started as a 100% subsidiary of Tata Group.
Tata entered in 50:50 joint venture with Hindustan
lever limited in 1995.
In 1998 Tata sold off their stakes in Lakme Lever
to Hindustan Lakme Lever for 200 crore.

Product Range of Lakme
Professional Kit
Skin Care Solutions
Lakme Saloons
STP Analysis

Segmenting
Segmenting is the process of dividing the market into segments
based on customer characteristics and needs.
The main activity segmenting consists of four sub activities.
These are:
1. determining who the actual and potential customers are
2. identifying segments
3. analyzing the intensity of competitors in the market
4. selecting the attractive customer segments.
Targeting
After the most attractive segments are selected, a company should
not directly start targeting all these segments -- other important
factors come into play in defining a target market. Four sub
activities form the basis for deciding on which segments will
actually be targeted.
The four sub activities within targeting are:
1. defining the abilities of the company and resources needed to enter
a market
2. analyzing competitors on their resources and skills
3. considering the companys abilities compared to the competitors'
abilities
4. deciding on the actual target markets
Positioning
When the list of target markets is made, a company might want
to start on deciding on a good marketing mix directly. But an
important step before developing the marketing mix is deciding
on how to create an identity or image of the product in the
mind of the customer. Every segment is different from the
others, so different customers with different ideas of what they
expect from the product. In the process of positioning the
company:
1. identifies the differential advantages in each segment
2. decides on a different positioning concept for each of these
segments.
Beautification needs are not only for women in their adult age
but teenagers girl too have it. The brands known who will take
care of you and your beauty needs, which can be evident from its
catch phrases on top of the world and another is source of
radiant beauty
POSITIONING STATEMENT
Lakme approached with Elle18 in early 1998. It promoted
as "Young girl who breaks the rules and loves to have fun.
This positioning statement demonstrated young girls who
anticipated the image of trying to be unusual and "cool".
SEGMENTATION Geographic
Area: Metropolitan cities and town

Company has targeted metropolitan cities and town because of
population, consumer knowledge about the product is
considerable and towns are upcoming business places.
Behavioral
Occasions: Going out regularly (schools, college and parties)
User status: Regular usageAttitude towards the product:
necessary part of everyday accessories.Benefits: develops
beauty, exceptional colors, good quality ingredients,
atmosphere friendly packaging.

SWOT Analysis of Lakme
Strengths

Cost advantage
High R&D
Innovation
Loyal customers
Market share leadership
Strong brand equity
Pricing
Unique products

Weaknesses

No online presence
Ubiquitiouegory, products, services

Opportunities

Emerging markets and expansion abroad Online
Product and services expansion


Threats

Competition
Lower cost competitors or imports
Product substitution
Competitors of Lakme
Major Multinational Companies:

REVLON
YARLEY
GARNIER
LOREAL
PONDS
Reasons for preference to Lakme
Indian Brand
Less expensive
More GoodWill or Reputation
INSPIRATION For Using Products
According to significant change in market
distributional Channel in Cosmetic Products,
Distribution Places Are:
Hyper Market
Super Market
Departmental Store
Distribution Channel
Co-Branding and Alliances
Changes Require In LAKME
Re-Branding
Lakme is donning a new makeover.
Lakme-Lever believe that their salon business can boost
the Lakme brand's visibility across the country. The
salon concept flows very well into Lakme's brand
equity.
Lakme is not directly investing in the business. It is
expanding its salons through several franchisees across
the country. Lakme have just signed up with the Taj
Group of Hotels to be our franchisee.
Recommendations for Future
Promotions Beyond Fashion Week
The Brand should not loose its focus from Cosmetics.
For vast reach unlikely Some sort of an alliance or co
branding with Salons that already exist may be a better
strategy.
The general perception is that company-owned salons are
expensive.Though Lakme Beauty Salons are reasonably
Priced,it has not been communicated well enough.