Consumer Behaviour of Lakme

Topics: Cosmetics, Brand, Branding Pages: 15 (4347 words) Published: August 29, 2013
CONSUMER BUYING BEHAVIOUR OF LAKME
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SUBMITTED BY:
AKANKSHA ARORA-10BSPHH010050
DEBOPRIYA SAHA- 10BSPHH010213
DIPIKA AGARWAL-10BSPHH010233
RISHIKA SHARMA-10BSPHH010634
VRINDA BAJLA-10BSPHH010888

TABLE OF CONTENTS

Overview of Industry and company profile
Marketing Mix
SWOT Analysis
Brand Equity of Lakme
Perception and Attitude of consumers
Promotional strategies of Lakme
How Lakme influences Consumer Behaviour
Situational Analysis at LAKME
Competitors Analysis
Suggestions
References

ACKNOLEDGEMENT
The satisfaction that accompanies the successful completion of our project would be incomplete without the mention of people whose endless co-operation, constant guidance and encouragement made it possible for us to exercise our efforts in the right direction. We are grateful to our project guide and professor, Mr. MURLI KRISHNAN, for the guidance, inspiration and constructive suggestions that helped us in the preparation of this project. We also thank him for providing us with the opportunity of undertaking this project, through which our learning and understanding of the marketing concepts were further strengthened.

INDUSTRY PROFILE:
The strong trend towards consumerism is manifesting in the lives of the masses in subtle, yet interesting, ways. The likelihood of this trend emerging was recognised quite early by the cosmetics multinationals. To begin with, they had donned a `premium alone' image, but soon spotted the potential of the medium- and low-end market. In the survival game, the MNCs have positioned themselves strategically in growth areas, chasing volumes and shedding the `premium' image. Though the craze for `foreign' cosmetics cannot be ignored, it has not been smooth sailing for the MNCs. Understanding the color of the cosmetics market has been an arduous process for most players. That the premium market is limited in size was not realized early. The medium and low ends are where the volumes are _ almost as high 95 per cent. MNCs such as L'Oreal, Oriflame and Avon, which entered in the mid-1990s, realized the importance of the segment game and started reformulating their strategies. The size and the potential of the cosmetics market, like many others, have been grossly misjudged. First, the middle-class users, which was taken to be 60 millions, had to be pruned by half. Second, with little understanding of the income disparities and the willingness to pay, the players were caught unawares by the price sensitiveness and the heterogeneous sets of needs at different price points. Third, a discrete change had occurred in the perception of cosmetics _ from a functional to a fashion item, with emphasis on choice. These have made the task of market development complex. MNCs such as Unilever (with its Pond's line), Procter and Gamble (Oil of Olay) and J. L. Morrison (Nivea range), which have a long presence and an understanding of the domestic market, succeeded only after learning about the varied preferences of consumers. This being a continuum, they are still unlearning and relearning to fashion new strategies and introduce competitive products. The entry of MNCs also helped the efforts of marketers and dispelled the notion that colors are harmful for the skin. The products are now packaged as having skin moisturising and enriching agents too. As a result, the number of users and the frequency of use have risen markedly.. Till the 1990s, the market was ruled by Lakme, a Tata brand, and a distant second was Tips and Toes (manufactured by Paramount Cosmetics, a local company). Though Indian consumers crave for foreign brands, prohibitive prices forced them to remain loyal to the local brands. This prevented a marked change in the market leadership structure. Hindustan Lever Ltd (HLL) has become a domino with the takeover of Lakme and Pond's, and its furiously growing strength in personal-care...
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