Case Study of Lakme

Topics: Customer service, Customer, Strategic management Pages: 3 (841 words) Published: March 11, 2011

Semi Final: The Lakme Lever Case Study

About the Category/Brand
• Lakme is the market leader in beauty services with its offering through Lakme Salons and Lakme Studios across 130+ centers in about 25 major cities. The above salons are made up of a mix of franchisee salons (105) and company salons (25). It enjoys leadership in the organized beauty services market • Lakme is India's biggest and oldest beauty brand. The Lakme business expanded into beauty services in 2002 to leverage the brand in the services arena • The Lakme salons business has grown at a (CAGR) of over 35% for the past 4 years, ahead of market growth, estimated between 25 to 30%. The growth of Lakme is made up of an average organic growth of 20 % with the rest coming from inorganic addition. The size of the organised beauty services market for women is currently estimated at Rs 500 Crores • Currently Lakme Salons and Studios interact with more than 150,000 active customers every year. The majority (90%+) of the customers are in the bracket LSM 10+ and 70% are in LSM 12+ (SEC A+)

About the Trend
The following trends impact the Beauty Salons market 1. Growing disposable income & evolved lifestyle are encouraging women to look at out of home salon solutions to address their beauty needs. The explosion of media related to looking good and the growing availability of salons offering basic and innovative hair and skin services works as a draw for women. 2. This is also resulting in an upgradation of women moving from the unorganised sector (mom & pop owners) to organised/ branded salons. The opportunity for upgradation at a relatively lower LSM (SEC B), is huge as the number of women in that strata is large. 3. More women are also looking at salons as centers of expertise and authority. They are more comfortable with their beauty needs being in the hands of well trained resources. 4. Women are expecting salons to work with product lines which are...
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