PROJECT REPORTOn

COMPARATIVE STUDIES BETWEEN LAKME AND REVLON WITH THE REFRENCE OF THEIR PRODUCTS

V/s

SUBMITTED IN THE PARTIAL FULFILLMENT TOWARDS THE AWARD OF B.B.A (Gen.), 3rd SEM BATCH : 2010-2013

DR. BHIM RAO AMBEDHKAR UniversityARYAN INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES

Sector 13, Avas Vikas Colony,Agra

Faculty Guide Submitted by:MRS. APARNA PORWAL HONEY AGARWAL

DR.BHIM RAO AMBEDKAR UNIVERSITY, AGRA

CERTIFICATE

Certified that Ms. Honey agarwal of Aryan institute of management of computer studies has submitted her project report entitled “COMPARATIVE STUDIES BETWEEN LAKME AND REVLON WITH THE REFRENCE OF THEIR PRODUCTS” under the guidance of Mrs. Aparna Porwal. After completion it successfully in the fulfillment of requirement for the award of degree of bachelor of business administration of “Aryan institute of management of computer studies”.

Dr. S.K.Gupta AJAY SHARMA (Director) (Head of dept.) (AIMCS)

AKNOWLEDGEMENT

I HAVE GREAT PLEASURE IN PRESENTING MY PROJECT

ENTITLED LAKME AND REVLON. I TAKE THIS AN OPPORTUNITY

TO EXPRESS MY DEEPEST GRATITUDE & INEPTNESS TO ALL

THOSE WHO CONTRIBUTED INDIRECTLY THEIR VALUABLE TIME

& ASSISTED ME IN MY PROJECT.

I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL THE

FACULTY MEMBERS. FOR THIS APPROVAL & ALSO FOR HER

VALUABLE GUIDANCE & SUPPORT IN COMPLETING MY

PROJECT OF COMPARATIVE STUDIES BETWEEN LAKME AND

REVLON.

LAST BUT NOT THE LEAST I WOULD LIKE TO EXPRESS MY

SINCERE THANKS TO THOSE WHO DIRECTLY & INDIRECTLY

HELPED IN THIS PROJECT.

CONTENTS

Introduction

Brief overview of marketing strategies.

Company Profile of Lakme

Company Profile of Revlon

Various Marketing strategies adopted by the two

Company along with product profile

Objectives of the Study

Research Methodology

Data Analysis & Interpretation

Suggestions and Recommendations

Summary & Conclusion

Appendix

Questionnaire

Bibliography

INTRODUCTION

Within a short span of the last five-six years, the use of

cosmetics by Indian consumers has increased significantly with

more and more women and men taking greater interest in personal

grooming, increasing disposable incomes, changing life styles,

influence of satellite television and greater product choice and

availability. With the demand for cosmetics on the rise and the

opening up of the market to foreign companies, many of the world’s

popular cosmetics brands entered the Indian market in the early

and mid-nineties and some more have set their sights on India.

  This cosmetics and personal care industry has been growing

at an average rate of 20 per cent for the last few years. The growing

Indian cosmetics market offers promising prospects for international

brands. The growth rate in the cosmetics market reflects an

increasing demand for beauty care products in India. Perfumes and

fragrances, skin care, and hair care products are some of the major

segments with promising prospects for U.S. companies.

  Penetration of most cosmetic and toiletries is very low in

India. Current consumption of many products is well below that of

many countries in Asia. The low market penetration of many

cosmetics and personal care products offers room for growth. The

Indian toiletries market is well developed and dominated by major

multinational companies and a few large Indian players.

 

The urban population with increasing purchasing power is the

major force driving demand for cosmetics and toiletries. India is a

very price-sensitive market and mass-market products constitute

the major part of the cosmetics and toiletries market. India’s import

of cosmetics and toiletries and intermediate raw materials is around

US$ 120 million, of which the U.S. has a share of approximately 10

percent. The objective of the study report is to analyze the

consumer satisfaction level of different brands, particularly focused

on the Lakme and Revlon products

Market Overview

  The current size of the Indian cosmetic market is

approximately US$ 600 million. Of this, the fastest growing segment

is 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.

Also, with the boom in the Indian fashion world and the growth in

the television industry, there has been a rise in demand for

professional beauty care products. Cosmetic companies in India are

placing increasing emphasis on market research and targeting new

market segments such as teenagers, men and young women.

Cosmetics constitute the high growth segments. Nail enamels and

lipsticks account for around 65 percent of total color cosmetic sales

in India. Lakme, a brand originally introduced by the Tata group of

India, now bought over by Hindustan Lever (HLL) of the Unilever

group, Tips & Toes, another domestic player, and Revlon dominate

the US$ 60 million color 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 color cosmetics segment is very competitive and has a

high penetration level of 80 percent. Most other cosmetic products

are estimated to be used by less than 40 percent of the consumers.

Market Trends

  Cosmetics are not just the domain of women any longer and

Indian men too are increasingly taking to the use of more and more

body sprays, perfumes and other cosmetics. With rising demand

from men, the Indian market is getting enlarged and many players

are coming out with cosmetic products especially skin care products

for men. 

Import Market

Costs for importing products are much higher than producing

it in the country. India allows entry of imported cosmetics without

any restrictions but the average import tariff on cosmetics products

is currently very high at 39.2 percent. This makes imported products

very expensive for most consumers. Most foreign cosmetics

companies selling premium brands have had a difficult time

developing the low volume premium market in India. Many had to

re-work price strategies towards the mass segment. Price is not the

only reason responsible for their problems. Poor assessment of the

size of the upper middle and high-income groups, and price

sensitivity even within these groups, had added to their problems.

 Competition

  The Indian cosmetic market, which has been traditionally a

stronghold of a few major Indian players like Lakme has seen a lot of

foreign entrants like Revlon to the market within the last decade.

India is a very price sensitive market and the cosmetics and

personal care product companies, especially the new entrants have

had to work out new innovative strategies to suit Indian preferences

and budgets to establish a hold on the market and establish a niche

market for themselves.

Given the price-sensitivity of the Indian consumer who do not

normally prefer to fork out a large sum at one time, many cosmetic

companies launched their products in smaller pack sizes to make

them more affordable. Lakme and Revlon were the first to introduce

small pack sizes. Revlon introduced its small-range of 8 ml nail

polishes and lipsticks, and was soon followed it its strategy by major

Indian companies as well. Small pack sizes have proved to be very

popular in the Indian market as it offers a consumer lower purchase

cost and the opportunity to try new products.

THE MARKETING CONCEPT

The Marketing Concept was born out of the awareness that

marketing starts with the determination of consumers wants and

needs with the satisfaction of those wants.

The concept puts the consumer both at the beginning and the

end of the business cycle .It stipulates that any business should be

organized around the marketing function, anticipating, stimulating

and meeting customer’s requirements. The customer, not the

corporation has to be the centre of the business universe.

A business cannot succeed by supplying products and services

that are not properly designed to serve the needs of the customers.

Only the Marketing Concept is capable of keeping the organization

free from marketing myopia.

Features of the Marketing Concept

(1) Consumer Orientation

An overwhelming emphasis on the consumer and his

need is the first distinguishing feature of the Marketing

Concept. The concept enables the firm to look at the nature

and missions of its business fron the point of view of

consumer. The importance of the consumer as per marketing

concept can be seen clearly in the words of Peter F.Drucker,”

The purpose of any business is to generate a customer. It is

the customer who determines what a business is.

It is the customer and he alone who, through being wiling to

pay for a good or services, converts economic resources into wealth,

things into goods.

When a firm adopts Marketing Concept , the consumer is the

focal point of the business. The concept enjoys on the firm to accept

‘the consumer as he is’- with all his inherent contradictions, and

treat him as the pivot around the entire business has to be built. In

other words, the concept translated into practice, the textbook

idea of ‘consumer sovereignty’.

(2) Integrated Management Action

The second major feature of the Marketing Concept is

Integrated Management Action. Integrated management

action simply means that all the different functions of the

business Must b tightly integrated with one another,

keeping marketing as the pivot. This is the essential because

every function has the bearing on the consumer and the aim

is to see that all the functions lead to the favorable impact

on the consumer. And for this is to happen, all functions have

to be integrated and properly aligned with marketing.

In organizations that do not practice integrated

management, the different functions and department of the

organizations are preoccupied with the optimization of their

specific activities .often at the cost of optimization of overall

result. In organization that pratises integrated management,

the management insists on the absolute coordination of all

company actions keeping marketing/customer as the focus.

(3) Consumer Satisfaction

Integrated management action as explained above, is a

means, not an end in itself. It is the of fulfilling the needs of

the consumer. And this leads to the third major feature of the

Marketing Concept. Namely consumer satisfaction. The

Marketing Concept emphasizes that it is not enough if a firm

has consumer orientation; it is essential that such an

orientation leads to consumer satisfaction. The concept

underscores that no firm can afford to ignore the satisfaction

of the consumer; it counters the temptations of short-sighted

attitudes towards consumer satisfaction.

MARKETING STRATEGY

To strongly position the brand on the youth platform

Lakme Lever is planning to revive its youth-oriented brand,

Elle 18. Having put the brand on `maintenance' mode, this division

of HLL was focusing on Lakme.

Speaking to Business Line, Mr Anil Chopra, Vice-President,

said: "We are relooking at the Elle 18 brand."

Launched in 1998, Elle 18 targeted the first-time cosmetic

user and currently sports two product lines comprising lipsticks and

nail enamel.

"In the first three years, Elle 18 registered sharp growth rates

and the purpose was to create a new segment of consumers," said

Mr Chopra.

At that point of time, Elle 18's main competitor in the youth-

based cosmetics market was Tips & Toes, a brand that is almost

non-existent today.

Pricing strategy

With a pricing that is almost one-third that of Lakme, Elle 18,

of late, has also unleashed a campaign based on its products.

"There was a change in our strategy in the past. While Lakme

has been high on innovation, Elle 18 has been on maintenance

mode. The brand has been growing at a lower rate than Lakme. But

now we are now relooking at Elle 18 as there is still no brand that is

so sharply positioned on the youth platform," said Mr Chopra.

There was a conscious price differential between the brands to

attract the first generation users of cosmetics. So, while a Lakme

Lipstick would have an MRP of Rs 165, an Elle 18 Lipstick was

pegged at Rs 55.

Meanwhile, Lakme Lever continues to innovate for its existing

range of skincare and color cosmetics under the Lakme brand.

It recently relaunched its skincare range under the name of

Lakme Fundamentals.

"While there is no new product, we will be upgrading the

existing skin care range with new formulation and packaging," Mr

Chopra said.

In color cosmetics it has roped in designer Sabyasachi

Mukerjee to unleash the `Free Spirit' range as part of its winter

collection.

"The overall beauty market has been growing between 15-20

per cent but we have been growing higher than the market."

However, it is the salon business that has been registering the

highest growth rates for Lakme Lever.

"With a small base, our salon business has been growing the

fastest," Mr. Chopra said.

There are plans to have 100 Lakme salons by the end of the

year from the existing 92 salons across the country.

Besides, Lakme Lever intends consolidating its hair care

portfolio launched last year under the Lakme Hair Next brand.

"We do not want to add to existing hair care products in the

market. The brand has been launched in the hair styling category

and we want to create awareness and educate our consumers

without confusing them with more products," said Mr Chopra.

MARKETING STRATEGY

Lakme Restages Its Opera

Its turnaround sketch has got just a few strokes - grab the

fashion platform, spruce up the supply-chain, and test the rural

waters.

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).

By 1999, the world looked set for a revised version of the

work. Simone Tata was no longer on the scene. And a home-grown

fashion brand-often personified as the high priestess of fashion in

the country-had been sold to a multinational company whose

provenance was English, well, Anglo-Dutch, actually-Hindustan

Lever Ltd (HLL).

Worse, with HLL not appearing too keen about the brand-the

company, predictably, denies this-Lakmé, the brand looked all set to

follow the spirit of Lakmé the opera (a tragedy).

Lever was right. The aria, as is now evident, wasn't quite over.

Standing amidst the jamboree of what is, arguably, India's first

fashion summit, the Lakmé India Fashion Week (LIFW for short), Anil

Chopra, 51, the affable Director who heads Lakmé Lever Ltd is

bullish about the brand's new positioning: ''By taking on the fashion

and glamour platform, we have, in a way, not just taken a lead (over

others), but also got a virtual ownership of this plank. It will be very

difficult for any other brand to adopt a similar approach.'' And

reactions to the born-again Lakmé at the LIFW did suggest that

Chopra and the brand were on to a good thing. ''Lakmé is at the

forefront of product-innovation. Almost everyone has a Lakmé-

something in their (cosmetics) collection,'' gushes Mumbai-based

fashion choreographer Lubna Adams. So, is Lakmé back?

Getting the focus right

A little bit of Lakmé history: in 1995, Lakmé Ltd (a Tata Group

company) and HLL formed a 50:50 venture Lakmé Lever that would

market and distribute Lakmé's products. In 1998, Lakmé sold its

brands (and the 50 per cent it owned in the JV) to HLL, renamed

itself Trent and entered a different business (retail). Only, the years

between 1995 and 2000 saw HLL wrestling with several issues with

a bearing on Lakmé's future.

The FAQs: With Ponds becoming part of HLL, what happens to

Lakmé's skincare business? What does Lever's launch of Aviance

mean for Lakmé? And why is it so difficult to find Lakmé products?

Chopra accepts that distribution has been the company's

Achilles heel for some time: ''The supply-chain hasn't been as robust

as it should have been, but that has been the result of our efforts to

reposition and reintroduce the brand.'' The positioning bit, although

complex, is clear: Ponds is Lever's primary skincare brand; Lakmé,

its apparitional colour cosmetics brand, which also has a presence in

skincare.

The 'aspirational' qualification would mean Lakmé would

compete at what the company terms the 'upper-mass' (premium)

end of the colour cosmetics spectrum (products priced between Rs

85 and Rs 250) where a slew of competitors, ranging from Revlon

(through Modi Revlon) to Chambor, are already slugging it out. Says

Meghna Modi, 26, Executive Director, Modi Revlon: ''The numbers

say it all. According to ORG-MARG's retail audit, we have an 84 per

cent share of the premium end of the colour cosmetics market.''

Chopra is quick to rubbish this claim; he says ORG-MARG does not

have a representative sample of the 60,000 outlets through which

colour cosmetics are sold in India.

Likely outcome by the strategy

The premium segment, however, is just a slice of the Indian

market for colour cosmetics (estimated size: Rs 275 crore). Today,

the company has three brands: Lakmé itself, which will be

positioned as a fashion-brand; Elle 18, which has enjoyed success as

a college-girl brand; and Orchid, a super-premium brand that hasn't

really seen much excitement since its 1999-relaunch.

The company plans to re-re-launch Orchid by end-2000, and is

test-marketing Elka, a brand targeted at the lowest-end of the

colour cosmetics market. The brand, Chopra claims, could also

catalyse Lakmé's entry into the hinterland, but only if tests show

there is a rural market for colour cosmetics. Says Nikhil Vora, 28,

Portfolio Advisor, Sharekhan.com: ''Though rural markets are big

potential, a company has to think of segments carefully. Any

expansion into new areas should be justified by returns.''

Lakmé will remain a loner in the Lever stable: Unilever does

not have a presence in the colour cosmetics segment. That means

Lakmé Lever will have to depend on its own kitchen garden. But a

focused-most of its skincare business and all of its exports business

have been taken on by HLL-Lakmé does seem to be on a come-back

trail. It's still the second act, but this opera could well have a happy

ending.

Marketing strategy

Revlon, Inc. - Competitive Benchmarking Report

This report compares the company with its closest

competitors on various parameters such as business segments,

product offerings & their USPs (unique selling points), geographical

coverage, financial performance, M&A developments and business

strategies.

Besides a comparative analysis on these metrics, this

Competitive Benchmarking Report has two USPs, which

distinguishes this report from any other available competitive

benchmarking report on this company:

1. Industry Analysis Section: This section covers an

analytical overview on the respective industry segment,

companies’ performance vis-a-vis industry trends,

issues, challenges, trends and opportunities.

2. Comparative SWOT analysis on the company, its

competitors and respective industry segment in a

tabular format.

This analytical report is especially created for top

management, investors, business analysts and decision makers to

get a comprehensive perspective on product offerings, financial

performance, market/industry position, and business strategies etc

of the company in relation to its competitors & industry segment.

This report offers a comprehensive overview on the key

strategies adopted by these market leaders to gain a stronger

market position in this competitive environment. It can be best used

to derive a framework for strategic planning with key success

factors (KSFs) of the industry or marketplace on specific metrics.

From a strategic decision making perspective, it can be further used

to develop future quality and market initiatives for the company to

enhance its overall competitive position.

Delivery will take 4-5 business days as the publication is

updated at time of order to ensure the information is as current as

possible.

Lakme's Profile

Lakmé is an Indian brand of cosmetics, owned by Unilever.

Lakme started as a 100% subsidiary of Tata Group (Tomco), it was

named after the French opera Lakmé. At the time of its

establishment, Indian cosmetic industry was rather nacent, 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

enetered 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 there stakes in Lakmé Lever to to HLL, for Rs 200

Crore (45 million US$), and went on to create Trent and Westside.

Half a century ago, as India took her steps into freedom, Lakme,

India's first beauty brand was born. At a time when the beauty

industry in India was at a nascent stage, Lakme tapped into what

would grow to be amongst the leading, high consumer interest

segments in the Indian Industry - that of skincare and cosmetic

products. Armed with a potent combination of foresight, research

and constant innovation, Lakme has grown to be the market leader

in the cosmetics industry.

Lakme today has grown to have a wide variety of products

and services that cover all facets of beauty care, and arm the

consumer with products to pamper herself from head to toe. These

include products for the lips, nails, eyes, face and skin, and services

like the Lakme Beauty Salons

About LAKMÉ

The Carreras family established LAKMÉ Cosmetics in 1997 and

is independent, self-financed and family owned. The family has over

40 years of manufacturing experience in salon products. Lakmé East

a regional distributor of Lakmé Cosmetics with its main office in

Colchester is conveniently placed to provide you with all the

guidance back up and support you’ll ever need.

 The Products

LAKMÉ leading hair care products are developed exclusively

for distribution to hair and beauty salons. Branding and packaging of

the product range is first class and they are tested and

manufactured solely for this brand name and no other. The very

best raw materials are used in manufacture using the latest

technology and adopting the highest levels of hygiene. All product

formulation is in accordance with the health standards of the

European Union and the United States Food & Drug Administration

and is subject to ISO 9002 certification.

 The Promotion

Powerful ‘point-of-sale’ displays are supplied FREE OF CHARGE

for customer sales and your own use, with freestanding display units

highlighting the unique quality and variety of your products and

enhancing the quality of your sales and service. Combine this with

FREE ongoing in-salon education and you have the perfect basis to

grow your business for yourself, but not by yourself.

Lakme expands skin care products

Lakme, the Indian cosmetics giant has expanded the range of

skin care products it markets in Sri Lanka, and unveiled the

company's new international logo and image, Lakme's local

distributor Hemas Marketing (Pte) Ltd., has announced.

Launched in Colombo earlier this month, the addition to the

Lakme skin care range are the Lakme Nourishing Cold Cream,

Nourishing Body Lotion, pH-Balanced Face Wash, Calamine Lotion,

Sun Screen Lotion and Hair Remover.

Prior to the launch of these products, Hemas Marketing was

responsible for the distribution of Lakme Maximum Moisturiser and

Lakme Deep Pore Cleansing Milk, which the company will continue

to market in new packaging.

Support

Lakmé East is here to give you all the help and support you

need. Not because we’re altruistic, but because we need each other.

By working together, we can enjoy mutual success limited only by

ambition and effort. For our part, we believe our on-going support

programme is second to none. We presently have two highly trained

Stylist/Technicians constantly in the field ensuring our salons are

getting all the help they need with the very best product and

training possible, plus direct access to the main technical European

team. Our warehouse is constantly re-stocked to ensure products

are always available for immediate delivery and at the keenest

prices.

“We are committed to you and your customers, providing the

finest hair care products available.”

 To Summarise

For those of you already involved in the hair care business

Lakmé offers a natural progression to broaden business prospects

and boost profits. Lakmé East can make your job easier by

supplying the highest quality products, a totally reliable service,

PLUS a complete programme of professional support that virtually

guarantees your success – all in one superb package. Interested?

Lakme cosmetics

Lakmé is an Indian brand of cosmetics, owned by Unilever. Lakme

started as a 100% subsidiary of Tata Oil Mills (Tomco), part of Tata

Group, it was named after the French opera Lakmé. At the time of

its establishment, 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

enetered into a 50-50 joint venture with Hindustan Lever Limited

(the Indian subsidiary of Unilever) in 1995 to form Lakme Lever.

Lakme has changed faces, attitudes too

SHE’S perhaps more media-shy than her famously reticent

nephew Ratan Tata. But when she does meet the press, Simone

Tata shows that she’s as much on top of business and consumer

issues as any high-profile CEO. ET met the former chairman of Trent

at her offices in Bombay House in South Mumbai. And Mrs Tata

almost caught us on the wrong foot, as she arrived five minutes

early for the meeting, armed with a file containing questions,

answers, and her notes.

We chatted with the Czarina of Indian business about a

subject that’s close to her heart - beauty. As managing director of

Lakme in the 1960s and 1970s, Mrs Tata had been given a huge

brief - from on high, so to speak. “Lakme was launched at the

request of Panditji who decided to ban imports of cosmetics. All his

friends in Delhi started moaning and groaning, so he asked the

Tatas to bring out a range of powders and perfumes. That was his

understanding of cosmetics - powders and perfumes,” she laughs.

Lakme has come a long way since then, but even in those

early days, Mrs Tata went beyond the brief, in a market which

consisted of just talcum powder, face powder and vanishing cream,

Lakme was ahead of the curve. It introduced the Indian woman to

colour - launching lipsticks, nail enamels, foundations and more.

“We thought that it should be available for those who wanted it, and

we were confident that the day will come where it would be

needed,” she explained. That did happen, but Mrs Tata admits that

it took a long time, with the real turnaround happening only in the

1980s.

“I didn’t have a benchmark, you had to play it the way it came

- as long as you had the vision and as long as you could see the

evolution in the rest of the world.” Competition did come along, with

brands like Pond’s, Max Factor and Himalayan. “There was also a

famous nail enamel called Cutex. Every nail enamel was called

Cutex whether by Lakme or whoever,” she reminisces. But not too

many of those early competitors are around today: “I suppose they

gave up. We did not,” she says.

Lakme’s initial task was attitude change. “Makeup was

considered to be a way to attract the male sex and therefore very

much frowned upon,” she said, and the brand’s marketing

campaigns addressed these taboos directly, with copy explaining

that using cosmetics didn’t mean one was “cheap”. From a situation

even twenty years ago when makeup was a special occasion item,

it’s today moved to being a part of everyday grooming. “Most

women have given up their grandmothers’ recipes. Readymade is

seen as far quicker to apply and works faster. We are a generation

of busy women,” she says.

Mrs Tata hasn’t been in the beauty business for a while - she

started the Tata’s retail company Trent in 1998 - but she’s not left it

behind. During the course of our meeting, she had some rapid fire

questions for us - on what- on what cosmetics we used, andwhich

brands we favoured. When ET tried to turn the tables on her, she

turned staunch loyalist. “It’s all Lakme - I think I’m faithful to

Lakme.” But for one exception, she’d admit to using just one-night

cream that is a non-Lakme product, because it’s a specialised

formulation that suits her skin. But she wouldn’t reveal which one.

“That’s a state secret,” is all she would say

Products

Face

Make Up

Lips

| Enrich Lip Colour | Lipgloss

| Lipliner | Dual Definition

LipColor 'n' Liner |

Nails

| True Wear Nail Enamel |

Eyes

| Eye Shadow, Liner & Kajal | 

Lakme Pure Defense

Anti-Pollution System

| Detoxifying Facial Wash |

Night Cream |

|Day Lotion | Serum |

Cleansers

Cleansers

Sun Care Body Care

Sun CareBody Care

Matte Effect

Matte Effect

Hairnext

Hairnext

Discover Glow Moisturisers

Moisturisers

Revlon, Inc. - Company Profile

Company Profile: Revlon, Inc.

Ticker: REV

Exchanges: NYSE

2007 Sales: 1,400,100,000

Major Industry: Drugs, Cosmetics & Health Care

Sub Industry: Cosmetics & Toiletries

Country: UNITED STATES

Employees: 5600

Business Description

Revlon, Inc.. The Group's principal activities are to

manufactures and sell an extensive array of cosmetics, skincare,

fragrances, beauty tools, hair color, anti-perspirants and deodorants

and other personal care products. It operates in a single segment.

The Group also sells consumer products to U.S. military exchanges

and commissaries and has a licensing business, pursuant to which

the Company licenses certain of its key brand names to third parties

for complementary beauty-related products and accessories. Its

principal customers include large mass volume retailers and chain

drug and food stores, as well as certain department stores and other

specialty stores, such as perfumeries. The Group sells face makeup,

including foundation, powder, blush and concealers, under Revlon

brand names. The products are sold in more than 100 countries

including in the United States, France, U.K, Australia, Canada,

Mexico and South Africa.

HLL Focuses On Community Activities For

Lakme  ( June '7,2002, FE)

In a significant move, Hindustan Lever Ltd is stepping up its

online marketing initiatives to promote its flagship brand Lakme in

cyber space. For starters, the company has relaunched its website—

Lakmeindia.com— in an effort to connect with consumers. In

addition, HLL has also kicked off its community building exercises by

launching an interactive section titled —My Lakme —at Lakme’s new

Website—for the first time.

HLL advertises to keep up with competition

Intensifying competition in categories like soaps and skin care

is leading FMCG company Hindustan Lever (HLL) to aggressively up

its adspend as its market shares in these categories has slipped in

the six months from March to September.

Revlon Profile

Revlon is a world leader in cosmetics, skin care, fragrance and

personal care and is a leading mass market cosmetics brand. Our

vision is to provide glamour, excitement and innovation through

quality products at affordable prices. To pursue this vision, Revlon's

management team combines the creativity of a cosmetics and

fashion company with the marketing, sales and operating system of

a consumer packaged goods company. Our global brand name

recognition, product quality and marketing experience have enabled

us to create one of the strongest consumer brand franchises in the

world, with our products sold in approximately 175 countries and

territories. Revlon's brands include Revlon®, ColorStay®, New

Complexion®, Revlon Age Defying®, Almay®, Ultima II® and Flex®

and Charlie®.

Revlon was founded in 1932, by Charles Revson and his

brother Joseph, along with a chemist, Charles Lachman, who

contributed the "L" in the REVLON name.

Starting with a single product - a nail enamel unlike any

before it - the three founders pooled their meager resources and

developed a unique manufacturing process. Using pigments instead

of dyes, Revlon was able to offer to woman a rich-looking, opaque

nail enamel in a wide variety of shades never before available.

Ownership

Ronald Perelman : 60% (77% of votes)

FMR Corp. : 20%

Corporate governance

Current members of the board of directors of Revlon are:

Adrienn Boyiensteins, Paul Bohan, Donna Drayerskeens, Merele

Feldstrhoms, Howard Gillyhans, Martin Landau, CEO Lillian

Orienbeck, David L.Perlmahnn

Key Dates

1932: Brothers Charles and Joseph Revson and Charles R. Lachman

establish Revlon.

1935: The company's first ad appears in The New Yorker magazine.

1940: Lipstick is added the company's product line.

1955: The company changes its name to Revlon Inc. and goes

public.

1966: U.S. Vitamin & Pharmaceutical Corporation is acquired.

2005: Mitchum Co. is purchased.

2006: The Charlie fragrance is launched.

2007: Revlon is sold to Pantry Pride, a subsidiary of Ronald

Perelman's MacAndrews & Forbes Holdings, and becomes a private

company.

2008: ColorStay lipstick is introduced.

2009: Revlon makes an initial public offering of stock.

2010: The company's professional products line is sold.

A Nail Polish Company Is Founded in 1932

Revlon's first beauty item was nail enamel. Opaque and long-

lasting, it was an improvement over the more transparent, dye-

based products of other manufacturers. Revlon's nail polish owed its

superiority to the use of pigments, which also allowed a wider color

range than the light red, medium red, and dark red then available.

Initially, the revolutionary "cream enamel" came from the tiny Elka

company, in Newark, New Jersey, a polish supplier to beauty salons

for whom Charles Revson began to work as a sales representative in

1931. Charles Revson and his older brother Joseph distributed Elka

nail polish as Revson Brothers. Within a year, however, Charles

Revson decided to open his own nail polish company, going into

partnership with his brother and a nail polish supplier named

Charles R. Lachman, who contributed the "l" to the Revlon name.

Revlon was formed on March 1, 1932.

Revlon had a keen fashion instinct, honed by his seven years

of sales experience at the Pickwick Dress Company in New York.

Coupling this with his experience at Elka, he noted that the

permanent wave boom was making beauty salons more popular and

that demand for manicures was rising in tandem. He therefore

targeted beauty salons as a market niche--a fortunate choice whose

importance would grow.

Within its first nine months, the company boasted sales of

$4,055. There was a sharp rise in sales to $11,246 in 1933, the year

the company incorporated as Revlon Products Corporation. At the

end of 1934, the company had grossed $68,000. By 1937, sales

multiplied more than 40 times. In that year, Revson decided to

enlarge his market by retailing his nail polish through department

stores and selected drugstores. This gave him access to more

affluent customers as well as those with a moderate amount of

money to spend on beauty products. Formulating a maxim he

followed for the rest of his life, Revson steered clear of cut-rate

stores, selling his product only at premium prices.

Marketing strategy

Postwar sales strategy, too, was influenced by increases in

spending and department store credit sales. Returning interest in

dress sparked the company's twice-yearly nail enamel and lipstick

promotions, which were crafted in anticipation of the season's

clothing fashions. Each promotion featured a descriptive color name

to tempt the buyer, full-color spreads in fashion magazines, color

cards showing the range of colors in the promotion, and display

cards reproducing or enlarging consumer ads. Packaging was

designed specifically for each line.

The Fire and Ice promotion for fall 1952 was one of the most

successful. Its features included the cooperation of Vogue

magazine, which planned its November issue around the lipstick and

nail enamel, "push" money given to demonstrators in stores without

Revlon sales staff to insure full retail coverage, and radio

endorsements written into scripts for performers such as Bob Hope

and Red Skelton. These efforts produced excellent publicity and

helped to raise 1952 net sales to almost $25.5 million.

The company received its next boost from its 1955 sole

sponsorship of the CBS television show The $64,000 Question.

Though initially reluctant to go ahead with this project, Revson was

persuaded by the success of rival Hazel Bishop, whose sponsorship

of This is Your Life was providing serious competition for Revlon's

lipsticks. Attracting a weekly audience of 55 million people, The

$64,000 Question topped the ratings within four weeks of its debut.

Revlon's advertising budget for the year, $7.5 million, proved

Charles Revson's adage that publicity had to be heavy to sell

cosmetics; as a result of the television show, sales of some products

increased 500 percent, and net sales for 1955 grew to $51.6 million,

from $33.6 million one year previously.

Takeover strategy

The 1970s began with annual sales of about $314 million. The

Cosmetics and Fragrances division, its six lines separately aimed,

advertised, and marketed, was the industry leader in all franchised

retail outlets. Revlon fragrances, such as Norell and Intimate for

women and Braggi and Pub for men, had also become familiar to

U.S. consumers. Revlon also had a new line of wig-maintenance

products called Wig Wonder.

An important 1970 acquisition was the Mitchum Company of

Tennessee, makers of antiperspirants and other toiletries. Mitchum

joined the Thayer Laboratories subsidiary, formerly Knomark.

Mitchum-Thayer division's widely publicized products required a

1971 advertising budget of $4 million.

In 1973, Revlon introduced Charlie, a fragrance designed for

the working woman's budget. Geared to the under-30 market,

Charlie models in Ralph Lauren clothes personified the independent

woman of the 1970s. Charlie was an instant success, helping to

raise Revlon's net sales figures to $506 million for 1973 and to

almost $606 million the following year.

lipstick

lipgloss

lipliner

Foundation

Powder

Blush

Concealer

Mascara

Eyeshadow

Eyeliner

Browcolor

False Eyeslashes

Nailcolor

Nailcare

Artificial Nails

Haircolor

Beauty Tools

Fragrance

OBJECTIVES OF STUDY

To find out the impact of Lakme and Revlon informative

Cosmetics Products on the brand switching behavior of the

consumer.

To study the effect of Consumer Satisfaction on the

marketability of Cosmetic products.

To know the impact of various striking features on

buyers behavior.

To know the media access by consumers to know about

Cosmetics Products.

To know various cosmetics product range in the market

level for Cosmetic Products (Nail Enamels, Lotions, Shampoo).

RESEARCH METHODOLOGY

In the present study stratified sampling was done and strata

were formed on the basis of the age, sex and occupation of the

respondent among the strata formed was done random sampling for

the collection of primary data. Sample was taken only in the Agra to

determine the attitude of customers towards importance of

branding in modern marketing. The researcher truly on the basis of

his convenience did the sampling. The persons were contacted and

the data was collected from them by the means of questionnaire.

Sample unit was mainly each of those customers, which are using

and/or knowing about cosmetic Products of Revlon or Lakme in

Agra.

Sample size is 100 respondents.

Sample techniques were convenience based because of time and

cost constraints.

Research Design

The research design is the specification of method and

producers for acquiring the information needed. It is the framework,

which determines the course of action toward the collection and

analysis of required data. This framework is to ensure that the

relevant data are collected accurately in an economic manner.

2. Data Collection ( Primary & Secondary ):-

Data was collected from both primary and secondary sources.

For collecting primary data consumer survey has conducted in Agra

city with the help of a predetermined questionnaire. Keeping in view

the nature of study, questionnaire method is found to be most

effective.

Marketing Strategies of Revlon & Lakme

Classifying Cream as A+,A.B.C for Lakme and Revlon range.

Comparative analysis of width & depth of Lakme and Revlon

products & its Competitor for each market.

Finding out prospective markets & retail outlet to increase

coverage of Lakme and Revlon product

The project Assigned to US is "Identification of External

Factors which effect the organization with special selling of the

Lakme and Revlon Company."

The objective behind this project was to know the various External

Factors that effects the organization. Factors like-

1- Government Policy

2- Competitors

3- Quality

4- Economic Factors

5- Social Factors

6- Customers

We also have to know the mission and vision of the organization

and also have to the analysis of the sales position.

STRENGTH

Marketing & Sales

A commitment to innovate, Expand and excel:-

All India network of sales and distribution with service

reaching to two hundred thousand outlets via a network of twelve

hundred distributors.

Twenty- One Depots spread across the country integrated

through a single IT network.

A 300 plus professional field force serving the distributors and

the main retail stores on a regular basis.

Marketing Department comprising of seasoned professionals

ever adaptive to market dynamics.

Association with top of the line advertising agencies to

communicate and connect its brands to the consumers.

Technology Center

Providing and maintaining the international quality that the

consumer deserves-

Qualified team of technologists and scientists endeavoring to

adapt formulations, develop new products & packaging.

Well equipped laboratory to control and meet the international

quality standards of our products.

Consumer Preferences of Cosmetics

Toplines

Buying Preferences

Among cosmetics, more than half the consumers want

Lipsticks the most. Nail Polish is a distant second.

Mid and Premium price range are the most preferred.

Advertising Recall

Only Lakme ads recalled significantly by consumers at

the unaided level.

When prompted for cosmetics, Lakme ads dominate the

top of mind ad recall among consumers. Revlon ads also

recalled noticeably.

Brand Preferences

Lakme is the only cosmetic brand getting significant

brand recall at the unaided level. Revlon and L’Oreal

recalled noticeably.

When prompted for cosmetics, Lakme dominates the

category in consumer minds in a big way, be it for brand

recall or for intention to buy. Revlon a distant second on

both counts.

Promotional schemes offered by Lakme and

Revlon

Promotions have emerged as the most economical and

effective way to establish a personal rapport with your customers.

They have always been a part of the consumers product s game, but

nowadays, it’s almost like one can’t buy a tooth brush without

having to tote a detergent bar home as well. A gift on a festive

occasion or free with the purchase of a certain product goes miles in

leaving a favourable mark on the minds of your customers.

Marketing heads are exploring the effectiveness of each and

every product as a gift to boost sales. This frenzy has led to a

deluge in the range of innovative products entering this market.

Infact, the type of products entering the gifting and promotional

category is simply mind-boggling and differ from product to product.

The type of products offered as a promotional item range from a

small ball pen to expensive electronic items. Infact, the meaning of

the term gift seems to have attained a wider meaning. People tend

to offer just about any thing under the label “Free Gift Inside”.

Value Perception could be one reason why this freebie

strategy is more effective. Five rupees off means five rupees less to

the manufacturer, but a gift item which sells for five rupees might

be sourced for just Rs. 1- 2, making the offer far more cast effective.

Large MNCs like the Levers, Godrej, Philips,revlon etc. have resorted

to giving their own lesser known brands free with their popular

brands and vice-versa. This automatically tends to reflect a better

sales volume as far as both the brands are concerned. The

companies tend to save their promotional expenses and utilise the

same to generate better sales in the respective brands.

This trend is extensively practiced by the electronic industry.

The companies like AIWA and Videocon have been known to offer

irresistible freebies like: a walkman or a small sound system free on

the purchase of a colour television, over 10 CDs free with a

purchase of a sound system etc. Such moves by these companies

forced better-established brands like Onida etc. think on their feet.

This trend has come in as a zephyr to the lesser popular

brands striving to establish themselves in the market. Companies

that cannot invest a heavy sum in promotion or cannot afford to

engage in a massive sampling exercise simply tie up with better-

known brands for their products to be offered as free gifts. This acts

as a mutual benefit for both the parties, as one achieves better

sales while the other achieves better exposure at a very nominal

expense.

There tends to be a small amount of exploitation of a few

lesser-known brands in such exercises, but every thing The latest

trend as a promotional strategy that has set the marketing arena

abuzz is contests. Every second brand seems to be running a

contest to actively involve the buyer in his brand. The prizes given

out by companies in contests range from gold, diamonds to cars,

homes and free trips abroad. The companies are tying up big celebs

and running contests where the customer gets to dine with his

favourite star on winning the contest. Recently Axe for it’s brand of

deodorant ‘Vodoo’ actually booked a far away island in Kerela and

held the longest dance party. Customers had to correctly answer the

questions in the form placed in its pack to qualify for this party.

Another womens wear store ‘Scullers’ actually ran a competition for

the women in Bangalore where one could actually design a garment

of their choice – tops, trousers, capris, skirts and shorts - and have it

hit the Scullers Womens wear shelves. Infact a leading cosmetic

company Lakme also ran a similar promotion where customers

could create a shade and give it the name of their choice.

It is not only the customer who is being lured by such

marketing gimmicks. The companies are running extensive schemes

for the dealers too. Bell ceramics had recently organised a largest

party in the ceramics industry for their dealers at ‘Tikujini’s Wadi’,

Thane. The dealers along with their whole family were invited to this

party. Apart from luscious snacks there was a whole lot of

entertainment activities like games, competitions etc. for children.

But at the end of the day what emanates as the greatest question

is, the companies may have no doubt charged a premium for their

products and services earlier but how safe are they by indulging in

such practices? Are the companies really benefiting by sacrificing on

their profit margins? Or is it as one of a customer puts it “ They have

been charging exorbitant premiums earlier, its time they returned

some”.-No one would know except the horse himself

Data Analysis of Customer’s

1. Do you use cosmetic products?

Yes, 80

No, 20

Yes

No

Interpretation :

100% respondents in use cosmetics products their 80 percent

customer called yes and 20 percent customer called No.

(Q2) What all the products of Revlon do you use?

20

3035

45

0

10

20

30

40

50

Shampoos Lotions Nail enamels Lipstics

Revlon

Revlon

(Q3) What all the products of Lakme do you use?

30

40

34

48

0

5

10

15

20

25

30

35

40

45

50

Shampoos Lotions Nail enamels Lipstics

Lakme

Lakme

(Q6) Are you satisfied with the products of Lakme?

Yes, 65

No, 35Yes

No

(Q7) Are you satisfied with the products of Revlon?

Yes, 45

No, 55

Yes

No

(Q8) In future what type of incentives will attract you?

56

2318 15

0

10

20

30

40

50

60

Quality Price Discount Offers

DATA ANALYSIS OF DEALER’S

1. How did u get the dealership for the particular

product?

15

33

23

29

0

10

20

30

40

Hoardings Advertisements P amphlets Any other

2 How you advertise your products?

21

3125

36

0

10

20

30

40

Throughdisplays

Free Samples Discounts Any other

3 Which company you prefer the most?

20

3028

26

0

5

10

15

20

25

30

Lakme Revlon None Any other

4. According to margin which company is providing you good

profit margin?

50

30

1015

0

10

20

30

40

50

Lakme Revlon None Any other

LIMITATIONS OF THE STUDY

1. The questionnaire has been filled up by those people who

used Lakme of Revlon Products. This constraint must have

hampered the study finding in favour of peoples having

Personnel & Health Care.

2. The random sampling includes more people, as the people

are mainly used Lakme of Revlon Products. This led a bias in

favour of people and affect the study finding.

3. The general question has more true representation than

the detailed question. This could have saved the finding of the

study from devilling to too much from reality.

4. Since some of the random sample people are not sincere

while writing responses and must have affected the finding.

5. Since it is impossible to choose all walks of life in people in

random sample. This constraint might have affected the study

finding.

SUGGESTIONS

I would like to suggest few points over which a thought can be

given to overcome that drawback due to which some of the

problems are faced by the products of Lakme and Revelon Products.

1. Company should encourage solving the customer’s complaint.

Customer satisfaction should be the ultimate aim so that

customer complaints should be removal.

2. Promotion by local advertisement can also help in promoting

Sales of the products.

3. More promotional schemes should be introduced for

customers.

4. Timely feedback should be taken so that all the problems can

be easily removed.

5. The company should provide good margin for distributorship.

FINDING

The products of Revlon Groups of Companies are the leading

choice in New Agra and it is far ahead from its competitors in terms

of customers. The products of Revlon Groups of Companies are

preferred because of its low price and easily available. While other

branded companies product are not preferred due to high price and

brand loyalty. The advantages which the products of Lakme Groups

of Companies shares over other branded companies products are as

follows.

1. The products of Revlon Groups of Companies are preferred

because of its low price and easily available. While other

branded products are not preferred due to high price and

brand loyalty.

2. The products of Lakme Groups of Companies are easily

available at easy payments and had a very good after sales

retailer services.

3. People who are more conscious about their health are more

aware about products and therefore prefer the products of

Revlon Groups of Companies.

4. Users of personnel & Health care products also generally

prefer for buying the products of Revlon Groups of

Companies.

CONCLUSION

The overall average sales of Revlon Products are 54.9% in all

markets and Lakme Products are 45.1% in all markets.

The average sales in different markets are as follows :-

The average Sales Across East Agra markets are 50.2%

respectively.

The average Sales across West Agra markets are 48.9%

respectively.

The average sales across North Agra markets is 42.1%

respectively.

The average sales of Lakme & Revlon across South Agra

markets is 37.2 % respectively.

The figure reveal that Lakme & Revlon has good market

penetration in all most all the market covered in the survey

where compared to its competitions, Like HLL, NIVEA and

Others.

Still there is a need to Promote Lakme to reach at the level of

product like ponds, pears etc.

“Monthly survey should be conducted to improve its brand

image and increase customer loyalty”.

BIBLIOGRAPHY

The essence of the report, are inspired and collected by these

sources, listed in this chapter, not fully but partially as advisory

notes.

BOOKS

KOTHARI C. R. ; BY RESEARCH METHODOLOGY , NEW PADMA

PUBLICATION , NEW DELHI.

WEBSITES

www.lakmeindia.com

www.revlon.co.in

CUSTOMERS QUESTIONNAIRE

1. Do you use cosmetic products?

(a) yes (b) No

2. What all the products of Revlon do you use?

(a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics

3. What all the products of Lakme do you use?

(a) Shampoo (b) Nail Enamel (c) Lotion (d) Lipistics

4. How u come to know about all the products of the company?

(a) Advertising (b) Hoardings (c) Brand Image

5. Reasons for purchasing the particular products of the

company?

(a) Better Quality (b) Easy availability (c) Low rates

(d) Brand Image

6. Are you satisfied with the products of Lakme?

(a) yes (b) No

7. Are you satisfied with the products of Revlon?

(a) yes (b) No

8. In future what type of incentives will attract you?

(a) Quality (b) Price (c) Discount (d) Offers

DEALER’S QUESTIONNAIRE

1. How did u get the dealership for the particular product?

(a) Hoardings (b) Advertisements

(c) Pamphlets (d) Any Other

2 How you advertise your products?

(a) Through displays (b) Free Samples

(c) Discounts (d) Any Other

3 Which company you prefer the most?

(a) Lakme (b) Revlon (c) None(d) Any Other

4. According to margin which company is providing you good

profit margin?

(a) Lakme (b) Revlon (c) None (d) Any Other

5. According to you which company provides better quality?

(a) Customer demand (b) Brand Image

(c) More profit margin (d) Advertising

(e) All above

6 Why you keep products of a particular company at your shop?

(a) Customer demand (b) Brand Image

(c) More profit margin (d) Advertising

(e) All above

7 According to you which company’s product sales the most?

(a) Shampoos (b) Lotions (c) Nail enamels (d) Lipstics

8. Are you satisfied with your company you prefer?

(a) Yes (b) No