lakme absolute brand extension analysis

Just Skin Deep - Lakmé Absolute Brand Extension Review

CONTENTS

I. About the Company

II. About the Brand

III. About the ExtensionI. 4 Ps Analysis

IV. Understanding the ConsumerI. Segmentation, TargetingII. Identifying the consideration set

V. Understanding the Competitive Frame of ReferenceI. PoPs & PoDsII. Perceptual Map

VI. Conclusion

The CompanyHINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited (HUL) is India's largest Fast Moving

Consumer Goods Company with a heritage of over 80 years in India

16 HUL brands feature in India’s

Most Trusted Brands, 2014

10 HUL brands feature in BrandZ

Top 50 Most Valuable Indian

Brands 2014Reference: HUL Annual Report 2014-15

Hindustan Unilever - Financials

Reference: HUL Annual Report 2014-15

Brand Share19.5

20

20.5

21

21.5

22

22.5

23

2009; 20.62010; 21

2011; 21.72012; 22

2013; 22.32014; 22.6

Lakme in the Indian Cosmetics Market

Lakmé23%

Gemey/Maybelline/Jade11%

Revlon9%

Elle 187%

Oriflame6%

Others45%

Competitive Landscape in Indian Cosmetics

2009 2010 2011 2012 2013 20140.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

50,000.00

Indian Cosmetics INR Mn

Over 200% growth in the last 5 yearsCurrent Market Estimates of INR 44,000 Mn

Reference: GMID Euromonitor

Competitive Landscape

The BrandLAKMÉ

• Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality, thus, enabling her to realize the potency of her beauty.

Lakmé -Brand Vision

Reference: HUL Website

Lakmé Absolute – Line Extension

Recent launch in 2014 of a more

premium cosmetics and skincare line

In addition to existing lines such as ‘9 to 5’ targeted at working women, or ‘Classic’, for the everyday woman

Closest competitor in terms of

segment would be L’Oreal, Revlon and

Max Factor

Reference: Lakme India, lakmeindia.com

Reference: Lakme India, lakmeindia.com

The ExtensionLAKMÉ ABSOLUTE

Marketing Mix

Product

Place

Price

Promotion

Face• Foundations - 4• Concealers - 2• Highlighters/Bronzers• Blushers - 2• Remover

Eyes• Shadow - 4• Liner - 5• Mascara – 2

Lips• Liner - 1• Gloss - 2• Lip color - 4• Tint - 1

Nails • Nail Color – 4

Absolute White Intense

Absolute Face Stylist

Reference: Lakme India, lakmeindia.com

PRODUCT MIX

• At a higher price point than the Lakmé Classics and Lakmé 9 – 5 range

• Prices vary between INR 700 – 1200 for about a 30 ml SKU

• At a comparable price point with competitors such as Revlon, L’Oreal, Colorbar, Max Factor

• At a lower price point than luxury brands such as Inglot, Dior, Elizabeth Arden

PRICE

Traditional Retail

Channels

Larger Pharmacies

Standalone stores

Organized Retail

Department stores

Health & beauty chains

E-Commerce

General purpose

marketplaces

E-commerce focused on health and

beauty

PLACE

• Magazines – Elle, Vogue, Femina

• Newspapers – Metro supplements

• 30 sec primetime spots on channels

Print/ TV

Lakme Youtube Spot

PROMOTION

• Facebook – I Love Lakme has 2.4m followers

• Twitter – @ILoveLakme has 33.9K followers

• YouTube – Lakmé India has 37.9K subscribers

• Be Beautiful (sponsored by Lakmé) – 74K followers

• Targeted 15-30sec advertisements on select channels

Digital

PROMOTION

• In-store displays and counters• Frequent discounts on e-

commerce platforms• Sampling and try-outs • Product Placement and tie-

ups with movies and fashion shows

Trade

PROMOTION

The Consumer

Market Segmentation

Dem

ogra

phic

Gend

er &

Ag

eIn

com

e

Beha

viora

lBe

nefit

sOc

casio

n

Geog

raph

ic

Target Consumer

Demographic

• Women, 18-35 years• Upper Middle/ Upper Class• High Discretionary Spend

Behavioral

• Users of cosmetics who want to reinvent themselves• Occasion based – bridal, important events where you

need to be fashionable

Geographic• Focus on Tier I and II cities

Consideration Set

Target Consume

r

Competitive Frame

Lakmé Absolute VS. L’Oreal Paris

Attribute Lakmé Absolute L’Oreal Paris

Advertising

• Celebrity – Kareena Kapoor

• Focus on reinventing yourself to who you want to be

• Celebrity – Aishwarya Rai, Sonam Kapoor

• Focus on indulging yourself because you deserve it

PriceINR 700 – 1200 for 30 ml INR 900 – 1400 for 20 ml

Perception

• Everyday luxury ‘reinvention’

• Skincare benefits (SPF, hydrating)

• Modern, chic

• Not for everyday use (Due to high price point)

• ‘Parisian’ appeal – glamorous, classic

Points of Parity

Variety in colors, brand forms, sizes

High quality

Long-lasting wear

Suitable for Indian skin tones and skin types

Points of Difference

Skincare benefits (Hydrating formulas, SPF)

High fashion appeal – products used at Lakmé Fashion Week – at a reasonable price point

High Price

High Skin Care Benefit

Low Price

Low Skin Care Benefit

Perceptual Map

In Conclusion

Absolute is a premium line extension of the Lakmé brand

Targets those customers who would like to go for more ‘international’ offerings

High level of similarities in product across brands makes differentiation difficult

Focus on aspiration, emotional appeal to get to the consumer

LAKMÉ ABSOLUTEBRAND EXTENSION REVIEW FOR BRAND MANAGEMENT (B)UNDER THE GUIDANCE OF PROF. SAMEER MATHUR, I IM LUCKNOW- PGP30230 - SOUMYA EMANI