This presentation describes the Brand Identity vs Brand Image of Lakme in India. It also highlights the marketing strategies undertaken by Lakme to differentiate itself from its competitors in India.

2. LAKMÉ’S PROFILE
Its bond with beauty
and fashion is
manifested through
the Lakmé Fashion
Week, which is now
the largest fashion
event of its kind in
the country.
These include
products for the lips,
nails , eyes, face and
skin and services like
the lakme beauty
salons about LAKMÉ.
Lakmé today has
grown to have a wide
variety of products
and services that
cover all facets of
beauty care , skin
care and cosmetic
products.
Indian Brand of
cosmetics- owned by
Unilever.

3. • The Indian cosmetic market comprises of 4 segments - Oral care, Skin care, Hair care & Color Cosmetics
• Overall market size of Indian cosmetic market is : INR 62700 cr.
• Growth of Indian cosmetic market estimated to be between : 15 – 20 %
• Growth rate of Salons : 35%
• Growth of cosmetic products from 2009 – 2014 : 60%
INDIAN COSMETIC MARKET

4. EMERGING TRENDS AT PRESENT
0
2
0
4
0
6
0
8
0
100
120
1995 2005 2015 2025
ShareofAvg.HouseholdConsumption
(%,Thousand,INR)
HealthCare
Education &
Recreation
Communication
Transportation
Personal Products&
Services
HouseholdProducts
Housing &Utilities
Apparel
Food, Beverages&
Tobacco
Shift in India’s Wallet Share
Best in Class
International
QualityOfferings
Shift inWallet
Share
Largest
Youth
Population
Proliferationof
Media
Attention to Grooming&
LookingGood
RISING
CONSUMERISM
ININDIA
Dedicated
Shows,Events,
Celebrity
Association
SOURCE : Mckinsey GlobalInstitute

5. er Behaviour in terms of
Spending Patterns
CHOICE OF LOCATION FOR LAKME NEXT SALONS
Current Spread of Lakme Salons & Studios Pan India
TARGET CITIES:
Tier II and Tier III cities such
as Surat, Vadodara ,Ahmedabad , Nagpur, Pune in West
Zone, Jaipur, Ghaziabad, Gurgaon, Noida inNorth
REASONS
•Booming destinations for businesses and experiencing
a skyrocketing growth in Infrastructure and Real Estate
•Experiencing high influx of people and improving standardsof
living
• Lesser Spread of Competition in these states
• Proximity to Training academies in Mumbai and Delhi
Key Locations to set up salon: HIGH STREET
• High popularity of high street shoppingconcept
• High conversions as people visiting are generally serious buyers
Growth in Personal Disposable Income
Real Estate Costs
Competitive Analysis to understand Saturationlevel
Proximity to Training Academy/ OperationalCosts
Consumer Behaviour in terms of Spending Patterns

6. PRICING STRATEGY

8. PRICING SRATEGIES
Responding to competitor’s
pricing
ABSOLUTE RANGES
Nail Enamel : Rs. 200-400 (100 % more)
Eye products : Rs. 450
Lip products: Rs. 500-900 (150% more)
Skin Products : Rs.400-1200(150% more)
Single segment concentration
Differentiated pricing

9. Ranging from
Rs. 80
Ranging from
Rs. 400
Ranging from
Rs. 200
PRODUCTS OF

10. DIFFERENCE IN PRICING

11. Brand Eyeliner Mascara Lipstick Foundation
Lakme 800 725 800 700
Maybelline 499 475 299 525
Loreal 800 700-1000 950 900-1100
Revlon 650 850 710 1000
COMPETITION IN MASSTIGE SEGMENT

12. Target segment
Young, independent, modern women
Brand Positioning Statement
A complete range of trendy and stylish products for skin and beauty care
Tagline
On Top of the World

13. STEPS TAKEN TO CHANGE POSITIONING
• Title sponsor of Lakme Fashion Week (LFW)
• Lakmé Salon launched a first-of-its-kind Lakmé Studio in Delhi which offers ultra-premium beauty services.
Lakme Studio has tied up with Nail Spa that uses the latest nail technology from the US to bring a bouquet
of services like nail extensions and nail art.
• Brand Ambassadors – Kareena Kapoor and now Shraddha Kapoor
• Location selection
• Lakme launched the ‘Absolute’ range of products that are available only in modern trade and selected A
class cosmetic shops.

14. DIFFERENTIATION
Education
• Lakme’s strategy is not to use mass media advertising to promote Lakme. Instead, they have opted for
the education route to create awareness.
Training
• Lakme has teamed up with Aptech, an education and training company based in Mumbai to provide
beauty training courses to Indians.
Promotions
• Lakme does continuous promotions up setting up kiosks in malls, departmental stores and super markets
Reach
• With a retail reach of 40,000 stores and a network of 240 salons spread across 50+ cities and towns,
Lakme is one of the most widely available brands.

15. RESULTS
• The Fashion Week, 240 Lakme Beauty Salons and now the recently-launched Lakme Studio, are all part
of those efforts by Lakme to become a more premium brand.
• According to a survey conducted by Cashkaro in 2016, Lakmé, L’Oréal, Nivea, Gillette and Maybelline are
among the most preferred cosmetics and personal care brands

16. SWOT ANALYSIS

17. Strengths Weaknesses
1. High Brand Awareness.
2. Product Line: Variety
(3 Ranges: Classics, 9 to 5, Absolute)
3. Extensive Distribution Network of the parent company
(HLL)
4. Strong parent brand – Financially stable, well-known.
5. Lakme Beauty Salons all over India. Increases brand
visibility and customer engagement with the brand.
1. Limited presence in Premium market. Lakme has a good
presence and is a leader in Value for Money segment. In
Premium segment, Revlon is the market leader.
2. Quality of Lakme Salons: In 2015, it was found that the
quality of Lakme salons is not good enough which results
in negative word of mouth.
3. Some products are well differentiated while others, in its
vast portfolio of products are not ignored due to poor
differentiation.
Opportunities Threats
1. Growing premium segment. As of 2015, premium cosmetic
segment is growing at 30%.
2. Lakme beauty training academy can work as opportunity
to make an impact in the cosmetic market.
1. Increasing presence of International brand and their entry
in India
2. Intense competition from local and national players
3. Counterfeit products
4. Increasing allergy problems.

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

19. The gender distribution of Lakmé’s fans could be a bit surprising, but not so its age distribution. The closer a person is to
his/her prime the likelier is his/her chance of following the brand on social media- as you can see people between 21-30
make the largest chunk of its social media followers.
Overall Strategy Lakmé
Looking gorgeous and feeling beautiful seem to be the mantra that Lakmé follows on social media. The content it shares
and the design of it talks not only about its products, fashion shows, and contests, but also about the little steps a woman
(or a girl) can take to look gorgeous and be the object of much-coveted desire, as the brand sees it to be the driving
agenda of all women, or at least its fans. We need to see in the following sections, what form this strategy takes when it
comes to individual channels like Facebook, Twitter, and the like.

20. When sharing tips the brand does add a call to
action asking its followers to take a particular
action. For example, in the following image, the
brand has asked its fans and followers to “like”
the post only if they are going to use the
shared tips. 233 likes, 17 shares, and 8
comments are the testimony to how seriously
fans take the tips shared by the brand.
Lakmé on Facebook
With almost 19.25 lakhs Facebook fans, of which a little over 39,000 actively engages in
discussion, Lakmé has a pretty strong Facebook presence. The brand has used a nice mix
of image and video updates from its events, make up tips, and contest, which has helped
it maximize its reach among Facebook Users.

23. THANK YOU