LAKME FACE WASH SERIES PROJECT

ABOUT THE COMPANY:

Lakme is an Indian brand of cosmetics, owned by Unilever. Lakme started as a 100%

subsidiary of Tata Group

It was named after the French opera Lakme.

At the time of its establishment, 30 years ago Indian cosmetic industry was rather nascent,
and there was a very small market base.

Simone Tata joined the company as director, and went on to become its chairman.

When Tata's saw a bigger growth potential in the retail market, and greater competition from
global companies in cosmetics, they entered into a 50-50 joint venture with Hindustan Lever
Limited (the Indian subsidiary of Unilever) in 1995 to form Lakme Lever.

In 1998 Tata sold of their stakes in Lakme Lever to HLL, for Rs 200 Crore (45 million US$),
and went on to create Trent and Westside.

Founded 1973 First organised retail in beauty industry Registered Name Lakme lever, a
subsidiary of Hindustan Lever Limit Company description Lakme Beauty Salons offer a full
range of the latest beauty and grooming services in the areas of hair care, skin care and
beauty. Lakme continuously innovates to offer a wide range of high performance and
exceptional quality colour cosmetics, skincare products, and beauty salons.

Lakme has a range of beauty products to offer to its consumers. Some of the ways
in which it tries to position itself:
1. Lakme Hair Color: magic of colors (collage).
2. Lakme (versatile eye shadow collection): rich, long lasting and healthy make up.
3. Lakme fair perfect: For flawlessly fair skin!
4. Lakme face magic: daily wear soufflé.
5. Lakme (skin vitalizer): radiant skin, now and forever.
6. Lakme (moisturizer): radiant skin, now and forever.

7. Lakme nail polish and lipstick: electric brilliance/sensual brilliance/free

Spirit/peppermint/9 to 52.
8. Lakme sun expert (sunscreen): sun safe hamesha! (Face the sun with a smile)

INTRODUCTION:

High priestess of sacred Indian temple meets English army officer who's unwittingly strayed
into holy ground. They fall in love. Her orthodox father vows vengeance... That's the story of
Lakme, a 19th century opera written by Frenchman Leo Delibes, from which Simone Tata
borrowed the name Lakme (French for Lakshmi, the name of the priestess).

The current size of the Indian cosmetic market is approximately US$ 600 million. Of this, the
fastest growing segment is colour cosmetics, accounting for around US$ 60 million of the
market. Industry sources estimate a rapid growth rate of 20 percent per annum across
different segments of the cosmetics industry reflecting an increasing demand for all kinds of
beauty and personal care product. Growth has come mainly from the low and medium-priced
categories that account for 90 percent of the cosmetics market in terms of volume.

Even with a 20 percent average growth rate, the per capita consumption of cosmetics is very
low in India. Current per capita expenditure on cosmetics is approximately US$ 0.68 cents as
compared to US$ 36.65 in other Asian countries. However, with changing lifestyles, higher
disposable incomes, increasing advertising, penetration of satellite television, awareness
of the western world and growing importance of beauty pageants, there have been
significant changes and use of cosmetics is on the rise.

Lakme, a brand originally introduced by the Tata group of India, now bought over by
Hindustan Unilever (HUL) of the Unilever group, Tips & Toes, another domestic player, and
Revlon dominate the US$ 60 million colour cosmetics market. Multinationals, Revlon of the
U.S. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail
enamels market. Mass-market products account for a major share; while the premium
segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels.
Lipsticks account for nearly a third of the market at US$ 21 million, while the market for nail
enamels is estimated at around US$ 23 million. The colour cosmetics segment is very
competitive and has a high penetration level of 80 percent.
The skin care market in India is estimated at US$ 180 million. Within the last decade, this
segment has seen many consumers slowly shift from the mass to the premium end of the
market. The penetration rate is high in the skin-care segment as compared to colour
cosmetics. In the skin-care segment, price and volume played an equal role in value growth.
Moisturizing lotions, fairness creams and face cleansers are the popular categories in the
skin-care segment and account for approximately 60 percent of the skin-care segment. The
major players in these segments are Lakme, Ponds, and Fair & Lovely of the HUL group with
a 50 percent market share, followed by players such as J.L. Morison that markets the Nivea
range of products in India, Godrej and Revlon. Penetration levels of international cosmetics
brands in India are still low. Foreign brands currently constitute only 20 percent of the
market. A major reason for low penetration of international brands can be attributed to high
pricing. These companies initially gained sales on their international brand image, however,
repeat purchases were not forthcoming and to retain their sales growth, several foreign
companies reformulated price strategies to tap the large Indian middle class. Urban women in
the middle and upper income groups in the age range of 23-50 is the target group for
international brands, as this group looks for better products and is willing to pay a premium
for international quality products. Industry estimates suggest that there are close to 10 million
such women in India.

Lakme Products Outlets in Bandra:-

These are the places where major sales take place:

1) Lakme Face washes are available in the Lakme Studio on Hill Road.

2) Amarsons Shopping Centre, Linking Road.

3) At all leading medical stores in cities.

4) Decent Store, Hill road.

5) Blush Cosmetic Centre, Bandra.

Survey on “Lakme Fruit Blast Face Wash Series”

Lakme has recently come out with a range of “Fruit Blast Face Wash” Series which includes 4 Face
Washes- 1) Lakme Fruit Blast ‘BERRY LUSH’ Face Wash.

2) Lakme Fruit Blast ‘MELON MELT’ Face Wash.

3) Lakme Fruit Blast ‘CITRUS RAIN’ Face Wash.

4) Lakme Fruit Blast ‘HONEY GLOW’ Face Wash.

Interview/Questionnaire: (1st woman)

1) How often do you purchase Lakme face wash?

Ans- Twice a month.

2) Out of the three types which face wash do you use?

Ans- Lakme citrus rain face wash.

3) Have you tried using the other two types of Lakme face wash?

Ans- Yes.

4) How do you find its pricing?

Ans- Reasonable.

5) Compared to other leading brands how do you rate it?

Ans- 4 on 5.

6) Do you want any changes in the product?

Ans- No, I am satisfied with the product.

7) Do you regret the fact that previous Lakme face washes production has been stopped?

Ans- Yes, as they were good too and innovatively hydrating face wash.

8) Does Lakme require a change in their Marketing and selling strategy?

Ans- No.

9) Is the current Lakme Fruit Blast Face Wash commercial ad catchy?

Ans- Yes, for sure. It stays in everyone’s mind.

10) If given a chance to buy Lakme Face Wash over other brands will you opt for it?

Ans- Yes, definitely I will opt for Lakme.

Interview/Questionnaire (2nd woman)

1) How often do you purchase Lakme face wash?

Ans- Once a month.

2) Out of the three types which face wash do you use?

Ans- Lakme strawberry face wash.

3) Have you tried using the other two types of Lakme face wash?

Ans- Yes.

4) How do you find its pricing?

Ans- Pretty Fair.

5) Compared to other leading brands how do you rate it?

Ans- 4.5 on 5.

6) Do you want any changes in the product?

Ans- No.

7) Do you regret the fact that previous Lakme face washes production has been stopped?

Ans- No, because the present ones suit my skin.

8) ) Does Lakme require a change in their Marketing and selling strategy?

Ans- No, I am very satisfied.

9) Is the current Lakme Fruit Blast Face Wash commercial ad catchy?

Ans- Yes, I still remember when i saw it for the first time.

10) If given a chance to buy Lakme Face Wash over other brands will you opt for it?

Ans- Definitely yes.

Above were the answers of women in the age group of 21-26 years-

Pie diagram of whether Lakme provides good quality face washes?

 Celebrity Endorsement effect

No 83%
Yes 17%

83% women say that celebrity endorsement does not affect their purchasing idea. While 17%
women say that yes, celebrity endorsement do influence their purchases.

Usage Reason:

(1) Lakme’s Fruit Blast ‘Berry lush’ Face wash:-

It is priced at Rs. 70/- for a 50gms of pack. It comes in a flip open pack with a trendy feel to the
packing. This particular face wash has got a gel-like consistency with a strong and nice fruity
fragrance. It has tiny granules which Lakme Company says are strawberry seeds for exfoliation and
also contains fruit extracts of raspberry and passion fruit. It is meant for all skin types and especially
is meant for those who are looking for exfoliating their skin and also keeping their skin soap free.

Pros-

1) It is a good replacement to the Lakme’s strawberry face wash.

2) It is reasonably priced for the quantity given.

3) Has a beautiful aroma.

4) It does not cause skin break-outs.

Cons-

1) Since it is soap free, it does not lather that well even after taking lots of the face wash and mixing
it with water.

2) Many women have complained that it leaves a slippery feel on the face after its use.

3) It is not yet featured on Lakme’s official website. Their website gets updated after their products
flood the market.

According to the online rating system it has got 4.6 out of 5.

(2) Lakme’s Fruit Blast ‘Melon Melt’ face wash:-

It is priced at Rs. 125/- for a pack of 100 Gms.

This face wash also comes in a flip open lid in a plastic pack. It has also got gel-like consistency and
granules. It smells of freshly cut melons and the aroma is just superb. It does wonders to the senses!

Pros-

1) It is reasonably priced for the quantity given.

2) Has an awesome fragrance.

3) This is something innovative and impressive from Lakme.

4) Doesn’t cause skin to break out at all.

5) Lathers a bit better than the berry lush face wash which is featured above.
Cons-

1) The granules in this face wash are quite rough and sharp so it might not be suitable for sensitive
skin types.

2) It leaves a slight slippery feeling on the face after use, but again, it is not as slippery as the berry
lush face wash.

3) Again, it is not featured on the Lakme website.

4) According to the online rating system it has got 4.4 out of 5.

(3) Lakme Fruit Blast ‘Citrus Rain’ Face Wash:-

It is priced at Rs. 135/- of a pack of 100 gms. I must say I have saved the best for the last. This is one
of the best face washes that I have ever come across. It smells of freshly peeled oranges or rather
one feels as if one is smelling fresh orange peel. It definitely gives a sense of aromapathy while using
it and it also contains niacin amide or vitamin c which we all know is supposed to add radiance to the
skin. This face wash does not contain any granules and is creamier than the other two face washes
featured above. I give this face wash complete thumbs up.

Pros-

1) It is reasonably priced for the quantity given.

2) Has a refreshingly amazing aroma. Awakens your senses instantly.

3) Lathers very well compared to the other two face washes.

4) Gives a squeaky clean feeling after every face wash.

5) I personally feel as if the face wash gives an instant radiant look to the skin.

6) It does not cause break-outs. Infact, it is very suitable for oily skin users.

7) It is another effective and new innovation from the Lakme company.

Cons-

1) Apart from not being featured on the Lakme website, I don’t have any cons for this one.

According to the online survey it gets 5 out of 5 rating and a personal 10/10 rating from me.

(4) Lakme Fruit Blast Honey Glow:-

It is available at a price of Rs.85 (50 g) and Rs. 135 (100 g). Deeply revitalise and protect
your skin from the winter with this rich creamy face wash that gently cleanses your skin
without leaving it dry. The nourishing active ingredients - honey and avocado, are infused in
this hydrating face wash that rinses away dull skin and replenishes your skin’s natural
moisture. Leaving it clean, conditioned and subtly fragrant.
Pros-

1) Honey and avocado are both skin softening agents and it is a gel-based face wash.

2) It doesn’t leave a slippery feeling on your face.

3) It is reasonably priced.

Cons-

1) There are no cons for this particular face wash as it is suitable for all skin types.

Customer/People:-

A) PERCEPTION

Perception is a very important part of launching or introducing any new product. Perception
refers to the way in which human beings interpret, give meaning and understand the sensations.
The information we receive through our sense organs are called sensations. Our experience of
these sensations is called perception. Perception is the process through which we select,
organise and interpret sensory input to achieve or grasp of our surroundings.
The Lakme fruit blast face washes have been perceived exactly the way the company wanted the
women to perceive. The commercial ad definitely stays in one’s mind and brain and is hard to forget.
The Lakme Company wanted the customers to perceive the Fruit Blast face washes as a natural and
soap free way to protect their skin against impurities. Also the natural scrub particles and granules of
strawberry seeds have been introduced in the market for the first time and gave been perceived well
with the women customers. If the perception behind any product is accepted well by the customers
than not only the product is successfully launched but it also has loyal customers for a very long
period of time. I must say, the Lakme Fruit Blast face washes have been a splendid hit in the market
at a very less time. Also it has not been too long since they have been launched. Such tremendous
and enormous support for any product clearly hints towards a very well perceived product of the
company as a part of their strategy. Nowadays due to extremely high competition in the market
many companies exaggerate their perception and make the customers believe in a lie. But thankfully
the Lakme Fruit Blast face washes live up to the standards which have been declared by Lakme.

Perception is the process of integrating, organising and interpreting sensory information in a way
that is meaningful. There are individual differences in perceptions. Research studies have found that
emotional, motivational and cultural factors have an important role to play in perception. An
individual’s motivational state influences perception. Perception is also affected by a person’s
learning experience.

B) MOTIVE

Motivation refers to various physiological and psychological factors that cause us to act in a specific
way at a particular time. In simple words motivation refers to those internal factors within an
organism, which gives rise to some goal directed behaviour.

The major characteristics of motivation are as follows:

1) Inferential – The customer becomes aware about a motive by observing the product or by
observing another person talking about the product. Especially in women mouth to mouth publicity
works a lot. If friends refer certain products then there is a surety that the product will turn out to be
better than the ones that the people haven’t referred. I personally have referred the Lakme Fruit
Blast face washes and trusting my word they have bought it and are happy with it.

2) Explanatory – Motive is a very powerful tool in explaining human behaviour. Understanding of

motivation helps the company to know the cause and behaviour towards a particular product. Gone
are the days when company used to cash in on the psychology of stereotypical women ways. Hence
Lakme Fruit Blast face wash has shown in their commercial ad the importance of fruit essence to a
woman’s skin. Clearly, changing the explanatory ways towards a product launch helps in
understanding the customers.

3) Predictions – Knowledge of motivation helps us to predict a person’s behaviour in different

situations. For example, working women and college and school girls if motivated to keep their skin
hydrated and pure will definitely try to take care of their skin. To predict the customer behaviour
and then accordingly launch a product leads to the successfully targeting of the product.

4) Multiple Motives – Human behaviour is very complex. There are often several causes behind an
individual’s behaviour. Trying to understand the wide range of human behaviours and the multiple
causes of it is not an easy task. Catching and understanding different consumer motivation leads to
not only a successful launch of the product but at the same time happy and loyal customers.

C) THINKING PROCESS

Whether we are awake or asleep we are always thinking. Even if we were to stop thinking about
what we are reading at this moment and our thoughts were to wander off, yet we would still be
thinking.

The symbols we use in our thinking are of two types:

1) Images – An image refers to the mental representation of an object or an event. It is the mental
picture of an object or an event.

2) Language – human thinking primarily involves the use of word symbols or language. The meaning
of words and the rules for joining them to form sentences are all stored in our semantic memory.
We depend heavily on our semantic memory when we use language as a tool of thought.

From the consumers point of view it is very important to capture their thinking process and heighten
it in the right way.

D) ATTITUDE

Attitudes once formed are very difficult to change, especially if they are uniformly positive or
negative. However, our attitudes may change if they are ambivalent in nature.

Development of attitude occurs in two different ways:

1) They are learned

2) They are influenced by genetic factors

We have attitudes about almost anything and everything in the social world. We are very rarely
neutral about any aspect of the social world. Attitudes strongly influence our social thought, even if
these attitudes are not reflected in our observable (overt) behaviour. Since the attitude of
consumers keep on changing time to time and very quickly it is very important to understand
consumer attitude and then accordingly launch their products.

Lakme deserves an applause for understanding women behaviours.