Brand Identity vs Brand Image of Lakme in India

This presentation describes the Brand Identity vs Brand Image of Lakme in India.
It also highlights the marketing strategies undertaken by Lakme to differentiate itself from its competitors in India.

1. LAKMÉ’S PROFILE

2. The Indian cosmetic market comprises of 4 segments - Oral care, Skin care, Hair care & Color Cosmetics Overall market size of Indian cosmetic market is : INR 62700 cr. Growth of Indian cosmetic market estimated to be between : 15 – 20 % Growth rate of Salons : 35% Growth of cosmetic products from 2009 – 2014 : 60% INDIAN COSMETIC MARKET

3. EMERGING TRENDS AT PRESENT 20 40 60 80 100 120 1995 2005 2015 2025 S h a re o f Avg. H o u s eho ld C on s umption (%, T hou s a nd , INR) Health Care Education & Recreation Co m m un ic a tion Transpor tation Personal Products & Services Household Products Housing & Utilities A p p arel Food, Beverages & Tobacco Shift in India’s Wallet Share Best in Class International Quality Offerings Shift in Wallet Share Largest Youth P o pu la t i o n Proliferation of Media Attention to Grooming & Looking Good RISING C ON S U M E RI S M IN INDIA Dedicated Shows, Events, Celebrity Association SOURCE : Mckinsey Global Institute

4. er Behaviour in terms of Spending Patterns CHOICE OF LOCATION FOR LAKME NEXT SALONS Current Spread of Lakme Salons & Studios Pan India TARGET CITIES: Tier II and Tier III cities such as Surat, Vadodara ,Ahmedabad , Nagpur, Pune in West Zone, Jaipur, Ghaziabad, Gurgaon, Noida in North REASONS Booming destinations for businesses and experiencing a skyrocketing growth in Infrastructure and Real Estate Experiencing high influx of people and improving standards of living Lesser Spread of Competition in these states Proximity to Training academies in Mumbai and Delhi Key Locations to set up salon: HIGH STREET High popularity of high street shopping concept High conversions as people visiting are generally serious buyers Growth Factors

5. PRICING STRATEGY

6. PRICING SRATEGIES Responding to competitor’s pricing ABSOLUTE RANGES Nail Enamel : Rs . 200-400 (100 % more) Eye products : Rs . 450 Lip products: Rs . 500-900 (150% more) Skin Products : Rs.400-1200(150% more) Single segment concentration Differentiated pricing

7. Ranging from Rs . 80 Ranging from Rs . 400 Ranging from Rs . 200 PRODUCTS OF

8. DIFFERENCE IN PRICING

9. Brand Eyeliner Mascara Lipstick Foundation Lakme 800 725 800 700 Maybelline 499 475 299 525 Loreal 800 700-1000 950 900-1100 Revlon 650 850 710 1000 COMPETITION IN MASSTIGE SEGMENT

10. Target segment Young, independent, modern women Brand Positioning Statement A complete range of trendy and stylish products for skin and beauty care Tagline On Top of the World

11. STEPS TAKEN TO CHANGE POSITIONING Title sponsor of Lakme Fashion Week (LFW) Lakmé Salon launched a first-of-its-kind Lakmé Studio in Delhi which offers ultra-premium beauty services. Lakme Studio has tied up with Nail Spa that uses the latest nail technology from the US to bring a bouquet of services like nail extensions and nail art. Brand Ambassadors – Kareena Kapoor and now Shraddha Kapoor Location selection Lakme launched the ‘Absolute’ range of products that are available only in modern trade and selected A class cosmetic shops.

12. DIFFERENTIATION Education Lakme’s strategy is not to use mass media advertising to promote Lakme. Instead, they have opted for the education route to create awareness. Training Lakme has teamed up with Aptech , an education and training company based in Mumbai to provide beauty training courses to Indians. Promotions Lakme does continuous promotions up setting up kiosks in malls, departmental stores and super markets Reach With a retail reach of 40,000 stores and a network of 240 salons spread across 50+ cities and towns, Lakme is one of the most widely available brands.

13. RESULTS The Fashion Week, 240 Lakme Beauty Salons and now the recently-launched Lakme Studio, are all part of those efforts by Lakme to become a more premium brand. According to a survey conducted by Cashkaro in 2016, Lakmé , L’Oréal, Nivea, Gillette and Maybelline are among the most preferred cosmetics and personal care brands

14. SWOT ANALYSIS

15. Strengths Weaknesses High Brand Awareness. Product Line: Variety (3 Ranges: Classics, 9 to 5, Absolute) Extensive Distribution Network of the parent company (HLL) Strong parent brand – Financially stable, well-known. Lakme Beauty Salons all over India. Increases brand visibility and customer engagement with the brand. Limited presence in Premium market. Lakme has a good presence and is a leader in Value for Money segment. In Premium segment, Revlon is the market leader. Quality of Lakme Salons: In 2015, it was found that the quality of Lakme salons is not good enough which results in negative word of mouth. Some products are well differentiated while others, in its vast portfolio of products are not ignored due to poor differentiation. Opportunities Threats Growing premium segment. As of 2015, premium cosmetic segment is growing at 30%. Lakme beauty training academy can work as opportunity to make an impact in the cosmetic market. Increasing presence of International brand and their entry in India Intense competition from local and national players Counterfeit products Increasing allergy problems.

16. Social Media Strategy Audience Analysis of Lakmé Owing to the brand building exercise by Lakmé , the sentiments expressed by people, both male and female, is either positive or neutral. There is almost no negative emotion flowing for the brand, but what is surprising is the number of male followers of the brand. As is evident in the following image, slightly over 40% of social media fans of the cosmetic brand comprises of male. Source: Lakme Inside Survey

17. The gender distribution of Lakmé’s fans could be a bit surprising, but not so its age distribution. The closer a person is to his/her prime the likelier is his/her chance of following the brand on social media- as you can see people between 21-30 make the largest chunk of its social media followers. Overall Strategy Lakmé Looking gorgeous and feeling beautiful seem to be the mantra that Lakmé follows on social media. The content it shares and the design of it talks not only about its products, fashion shows, and contests, but also about the little steps a woman (or a girl) can take to look gorgeous and be the object of much-coveted desire, as the brand sees it to be the driving agenda of all women, or at least its fans. We need to see in the following sections, what form this strategy takes when it comes to individual channels like Facebook, Twitter, and the like.

18. When sharing tips the brand does add a call to action asking its followers to take a particular action. For example, in the following image, the brand has asked its fans and followers to “like” the post only if they are going to use the shared tips. 233 likes, 17 shares, and 8 comments are the testimony to how seriously fans take the tips shared by the brand. Lakmé on Facebook With almost 19.25 lakhs Facebook fans, of which a little over 39,000 actively engages in discussion, Lakmé has a pretty strong Facebook presence. The brand has used a nice mix of image and video updates from its events, make up tips, and contest, which has helped it maximize its reach among Facebook Users.

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