final term paper of pm

8/8/2019 Final Term Paper of Pm

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Term paper Of

Fundamentals of promotions management

Submitted to: Submitted by:Mrs kuljeet minhas Rajni pathak

10802194Q1809A25



INTRODUCTION

ABOUT COSMETICS INDUSTRY

The cosmetic industry is a profitable business for most of themanufacturers of cosmetic products.

The cosmetic industry worldwide seems to be continuouslydeveloping, now more than ever with the advent of theInternet companies.

Many famous companies sell their cosmetic products onlinealso in countries in which they do not have representatives.

Given the technological development and the improvement

of the manufacturing process of cosmetics and not least dueto the constantly increasing demand of such products, thisindustry reported an important growth in terms of profit.



ABOUT COMPANY

Half a century ago, as lakme took her steps into freedom,

Lakme, first beauty brand was born.

Lakme tapped into what would grow to be amongst theleading, high consumer interest segments in the Industry thatof skincare and cosmetic products.

Armed with a potent combination of foresight, research andconstant innovation. Lakme has grown to be the market

leader in the cosmetics industry .

Lakme today has grown to have a wide variety of productsand services .

Competitors of lakme

Several Multinational companies such as :

REVLON,YARDLY,GARNIER,L’OREAL entered in themarket .These companies initially cashed on their international brand .

Revlon, ponds & Avon with the major part of the rest .

Other international brand in the sector include L’Oreal some ,of them engaged in the level if marketing model for their products.



Products of lakme

Lakme Fruit Blast Face Wash

Lakme Discover Glow

Lakme Night Fever Summer



Lakme perfect Readience fairness range

Cleansers

Moisturisers



Marketing plan

1. Situation analysis

2. Swot analysis3. Marketing strategy4. Promotional strategy5. Financial projections

Situation analysis

Industry analysis:

The more cosmetic utilization by Indian women broughtmore competitors to Indian beauty sector.

According to growth rate, the market provides wideopportunities to local and global players.

The Indian beautification sector has witnessed fastdevelopment in the recent two years.

Competitor analysis:



Competitors of lakme like Revlon and Maybelline arecompeting at the upper-mass (premium) end cosmeticsspectrum.

But, Lakme has a wide range of products and prices overallthe market Leader.

Ranging of competitors from many multinational companiessuch as Revlon Modi slugging out to chamber, Maybelline &Avon

Swot analysis

Strengths:

High quality manpower resourcesBrand NameVast range of products and servicesDistribution Channel

Unilever global technology capability

Weaknesses:

High Services costsUse of Hard Chemicals

Opportunities:

Brand growth through increased consumption depth .Growth in Business of beauty saloons .Lakme Beauty Training academy in Mumbai, Chennai and NewDelhi .

Threats:



Aggressive price competition from local and multinational players .Availability of cheap beauty products .Reports regarding presence of LEAD in lipsticks.

Marketing strategies:

The main objective is to know the consumer perception about lakme.

Marketing mix- 4 p’s

product :

Lakme provides a wide range of beauty products

• Nail enamel should dry within particular time of period.

• By introducing some kind of fragrance in nail enamel andmaking nail enamel very quickly dry.

• Introducing something in Elle 18 nail enamel like, whichchanging color according to environment changes and toprotect nails and high shine finish at all time.

Price:

Promotional pricing:



Elle 18 nail Enamel Company can give price at special event pricing,because Elle 18 nail enamel targeted students to sell their products.

Responding to competitor’s pricing:

Elle 18 nail enamel’s major competitor is Revlon , if the competitor (Revlon) changes the price means, company have to analyze the marketsituation and then change the price accordingly.

Differentiated price:

Elle 18 nail Enamel Company can offer time pricing and image pricing.They can set the price according to quality and quantity of the product.

Promotion:

Internet as medium:Company has its own website to advertise their products.Website:http://www.lakmeindia.com .

Sales promotion:

Lakme Elle 18 offers sales promotion to increase the sales for particular time of period.

Company offers rebates and discounts on specific products whichproducts are in low sales.

Brand ambassadors :Lakme have bollywood Actress as a brand ambassadors like Katrina

Kaif and Raima Sen.(Brand ambassador, 2005)(Brand ambassadors).

Place:

There is a significant change in market distributional channel of cosmeticproducts.



Distribution places are :Hyper marketsSuper marketsDepartmental stores

Other distribution places are :Food storesCosmetic discountersWare house clubs.Beauty salons

Lakme distribution merged with HUL. HUL is having 3000 distributorsaround the country and lakme have 1000 distributors.

Promotional strategies

Department stores, specialty stores and chain department stores, suchas Macy's, Neiman-Marcus and J.C. Penney (internationally) andShoppers’ Stop, VAMA, Westside, Bombay Stores etc (nationally).

Direct Sales Direct Mail/TV/Print Free Standing Stores Health FoodStores Salons Drug stores, food stores, cosmetic discounters,warehouse clubs, and mass merchandisers Fashion Week Banners .

Financial projections

particulars Total costBrandambassadors

40,00,000

Print media 1,00,00,000Electronic media 3,00,00,000Promotional visit 25,00,000Productionexpenses

3,00,00,000

total 4,90,00,000



Print media

Media Total costNewspaper 1,00,00,000Broachers 75,00,000hoardings 50,00,000magazines 86,00,000total 3,11,00,000

Electronic media

Media Total costTelevision 10,00,000Radio 70,50,000Internet 98,00,000Total 1,78,50,000

Break even analysis

Total expenses/price per unit

4,90,00,000/150=326666.667 units

Break even point = 326666.67 units on selling

PARTICULARSNO, OFUNITS

PRICEREVENUE

ESTIMATEDSALES

30,00,000150 45,00,00,000



Returns on investment :

45,00,00,000-4,90,00,000=40,10,00,000

Communication mix

Sales PromotionAdvertisingSale forcePublic relationsDirect mail &internet

Sales promotion:

Strategies adodted by lakme.

• Deviation from the traditional mode• Not to use mass advertisement• Education route to creat awareness of new product• Direct marketing• Lakme pur defence – new launch• Deployed beauty advisor at 1200 retail outlets.

Skin deep…..???



• nothing makes a woman more beautiful than the belief that she is beautiful• lakme fruit shock , its about energy and individuality• salons set up to strengnthen the customers contact and experience.

Lakme means

• Fashion• Ignites inflammable need of woman• Need for head turning attention• Need for feeling nice about onself • A heady mix which few womans can ignore- capture 52% of market

share• Beauty they say is in skin deep – lakme strived to fathom its depth

Summing up

• Woman feel beautiful in many ways. It takes earnestness andconsistency through product cycle to nurture & enhance their self image. Its take intensity to win their hearts.

Advertising:They use:

• Fashion icon as Katrina kaif • Newpaper magazines and media

Slogans and jingles

• Nine to five – makeup that survives a day• Aqua shine – the lipstick of the future is here

Public relations:

Lakme fashion week:



• It is a fission in Indian fashion, this fashion week introduces accessorydesigner shows.

Lakme salons: • It’s a kind of beauty salon to satisfy individual customer • There are 150 salons in 35 cities• There main aim is to connect with customers on one to one basis• With that they start loyalty program and reward system to popularize

salons• They also launched new lakme beauty salon reward program• Where they provide various features on reward program

Lakme beauty zone:

• This zone captures the customer face with camera• Allows her to experiment with different looks• Guiding her through a complete and exciting personalized make up

Customer connectivity:

• For ideas, suggestions and feedback contact:

Toll free no. 1800-22-8080Sms ‘levercare’ to 4555Email – lever. care@u nilever.com

Direct mail and internet:

• www.lakme.com• www.lakmeindia.com• www.lakmefashionweel.co.in• www.lakmebeautysalon.in

mailto:[email protected]




http://www.lakme.com/

http://www.lakmeindia.com/

http://www.lakmefashionweel.co.in/

http://www.lakmebeautysalon.in/



http://www.lakmeindia.com/

http://www.lakmefashionweel.co.in/

http://www.lakmebeautysalon.in/



Target and segmentation

Target market: lakme core target audience of 16 to 25 year – old woman

Segmentation:Youngster – 16 to 25Office lady – 26 to 35Career woman – 35 & above

References

• www.quickmba.c om/marketing /plan /• www.business plan s.org/market.htm• www.website marketingplan .com• www. lakme .com/• communicationmix .com/• www.oppapers.com/.../advertising-report-on- lakme -page15.html

http://www.quickmba.com/marketing/plan/






http://www.businessplans.org/market.htm



http://www.websitemarketingplan.com/










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