Index
1. Introduction
2. Research Methodology
2.1 Objectives
2.2 Hypothesis
2.3 Scope Of Study
2.4 Limitation
3. Data Collection
3.1. Primary data
3.2 Secondary data
4. Data Analysis & Interpretation
5. Conclusion & Findings
5.1 Conclusion
5.2 Findings
5.3 Suggestion
6. Bibliography
7. Appendix
INTRODUCTION
CHAPTER SCHEMES
1.1 Lakme's Profile
1.1.1 About LAKM
1.1.2 Products
1.2 Amway Profile
1.2.1 Vision of Amway
1.2.2 Mission of Amway
1.2.3 Goal of Amway
1.2.4 Community Services
CHAPTER 1
INTRODUCTION
1.1 Beauty product
Cosmetics (also known as makeup or make-up) are care substances used to
enhance the appearance or odor of the human body. They are generally mixtures of
chemical compounds, some being derived from natural sources and many being
synthetics.
In the U.S., the Food and Drug Administration (FDA), which regulates
cosmetics,defines cosmetics as "intended to be applied to the human body for
cleansing, beautifying, promoting attractiveness, or altering the appearance without
affecting the body's structure or functions." This broad definition includes any
material intended for use as a component of a cosmetic product. The FDA specifically
excludes soap from this category.
and interactive. They are partially planned and partially unplanned. See strategy
dynamics. Marketing strategy needs to take a long-term view, and tools such as
customer lifetime value models can be very powerful in helping to simulate the effects
of strategy on acquisition, revenue per customer and churn rate.
Marketing Mix Modeling is often used to help determine the optimal marketing
budget and how to allocate across the marketing mix to achieve these strategic goals.
Moreover, such models can help allocate spend across a portfolio of brands and
manage brands to create value.
The Amway Sales and Marketing Plan is a low risk, business opportunity that
is open to everyone. It allows you to build your business through retailing products
and sponsoring other people who, in turn, can retail products and offer the business
opportunity to others. By passing your sales and marketing knowledge to your
developing team, you not only build your own business network but also enable others
to build one of their own.
The Amway Sales and Marketing Plan has been operating for more than 55 years and
is available in 108 countries & territories around the
globe.
The core of the Amway Sales and Marketing Plan's income opportunity is the
sale of quality AMWAY products to retail customers.
1.2.4 Marketing strategy of Lakm
Lakm, which got its name from a late 19th century French Opera Lakm by
Lo Delibes, which is the French word for Goddess Lakshmi, has been in the business
of sharing secrets of the mythical beauty of goddesses to Indian women. And in its
attempt to diffuse the message to the mass, the cosmetic brand has used all kinds of
MARKETING channels, including the now-popular digital media, led by social media
platforms. To keep the focus sharp, in this article, we shall see how the brand has
performed on social media leaving discussions on the rest of the channels for
elsewhere.
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 Lakm Lever to to HLL, for Rs 200 Crore
(45 million US$), and went on to create Trent and Westside. Half a century ago, as
India took her steps into freedom, Lakme, India's first beauty brand was born. At a
time when the beauty industry in India was at a nascent stage, Lakme tapped into what
would grow to be amongst the leading, high consumer interest segments in the Indian
Industry - that of skincare and cosmetic products. Armed with a potent combination of
foresight, research and constant innovation, Lakme has grown to be the market leader
in the cosmetics industry.
.
Lakme today has grown to have a wide variety of products and services that
cover all facets of beauty care, and arm the consumer with products to pamper herself
from head to toe. These include products for the lips, nails, eyes, face and skin, and
services like the Lakme Beauty Salons
Lakm
Industry
Personal care
Founded
1952
Founder
J. R. D. Tata
Headquarters
India
Area served
Worldwide
Key people
Products
Website
lakmeindia.com
Face
Lips
Make Up
Nails
Cleansers
Sun Care
Body Care
Sun Care
Body Care
Matte Effect
Hairnext
10
Matte Effect
Discover Glow
Hairnext
Moisturisers
Moisturisers
11
Amway is the largest direct selling company and manufacturer in the world that
uses network marketing to sell a variety of products, primarily in the health, beauty,
and home care markets. Amway was founded in 1959 by Jay Van Andel and Richard
DeVos. Based in Ada, Michigan, the company and family of companies under Alticor
reported sales growth of 2.3%, reaching US$ 8.4 billion for the year ending December
31, 2009. Its product lines include home care products, personal care products,
jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers,
insurance and cosmetics. In 2004, Health & Beauty products accounted for nearly
60% of worldwide sales. Amway conducts business through a number of affiliated
companies in more than ninety countries and territories around the world. It is ranked
by Forbes as one of the largest private companies in the United States and by Deloitte
as one of the largest retailers in the world.
Amway has more than 6000 employees worldwide. In addition, Amway has
more than 3.6 million Independent Business Owners (IBOs) around the world. In
China, Amway products are sold by Amway sales representatives.
12
A Solid Foundation
Rich DeVos and Jay Van Andel's friendship actually
began with a business proposition, when Rich struck
a deal with Jay for a ride to school for 25 cents a
week After high school they entered the military, but
they planned to start a business together after separate
tours of duty. A friendship formed and became a
business relationship that has lasted to this day.
\\
14
India - New Delhi. Amway has invested in excess of US $ 35 million (Rs. 151 crore)
in India of this; US $ 6 million (Rs. 26 crore) is in the form of direct foreign
investment. Amway India has 400 full time employees and has generated indirect
employment for 1,650 persons at all the contract manufacturer locations.
Attitude Lipstick is enriched with Almond Oil and Jojoba Oil to help keep your
lips soft & smooth. It also contains Vitamin E & Sunscreen agents at SPF 15 level,
which helps to nourish & protect your lips all day long against damaging effects of
UV rays. The stunning shades promise the expressive glow for every skin tone. So,
get a beautiful look with these lipsticks.
ARTISTRY Exact Fit Perfecting Loose Powder - Light(25g)
16
Cosmetics
Our skin is the outward appearance of who or what we are , or what we would like to
be. But it is more than a simple cover. It is the largest organ of our body - a complex
and dynamic system that is vital to our health and reflects it as well.
Artistry
Artistry is one of the worlds top five largest-selling prestige brands of facial skin
care and colour cosmetics.
Attitude
All products of Attitude contain Skin Vitalizing Complex that synergistically combine
to cleanse, Replenish & Moisturize the skin making it soft & supple.
17
Home Care
Amways Home Care Brands provide complete cleaning systems that fit with
everyones needs. Their versatile, effective product systems offer the features and
benefits consumers want. No matter what your lifestyle, Amways Home Care
products make light work of your cleaning chores.
SA8
SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans and
softens.
LOC
LOC High Suds is a multipurpose household liquid cleaner.
Dish Drops
Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic
Detergency System".
18
Personal Care
Amway Personal Care products have built global reputation based on their world-class
research and development. These products are designed to deliver the ultimate
grooming experience and the confidence that lasts long.
Glister
Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that
offers seven benefits.
Persona
Persona Premium 3 in 1 Soap is a complete soap for the entire family promises
refreshing confidence.
Satinique
Satinique Advanced Range with unique Ceramide Infusion System uses nature's own
renewing technology to rejuvenate, strengthen and protect your hair.
19
Dynamite
Dynamite's range of male grooming products, formulated internationally is designed
to deliver the ultimate grooming experience.
G&H
G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes
and hydrates the skin for a healthy glow.
Apart from this Amway also deals in Air purifiers and Water purifiers, Jewellery,
Electronics, & Insurance products.
20
CHAPTER 2
DISTRICT PROFILE
GONDIA CITY
21
CHAPTER SCHEMES
2.1 Introduction
2.2 History
2.3 Divisions
2.4 Economy
2.5 Demographics
22
CHAPTER 2
DISTRICT PROFILE GONDIA CITY
2.1 Introduction
2.2 History
Gondia was part of the kingdom of Maha Kosala, ruled by the Haihaya Rajput kings
of Chhattisgarh in the 7th century and retains some recollection of Hindu kings who
ruled from Nagardhan.
The 12th century saw the rule of Ponwars who were subsequently ousted by Gond
chiefs who asserted their independence of the Ratanpur dynasty. This was followed by
Raghoji Bhonsle of Satara who established himself as the king of Vidarbha in 1743. In
1755, Janoji was declared as the sovereign of the territory, after the death of his father
Raghoji Bhonsle. The two brothers Mudhoji and Rupaji of Raghoji Bhonsle of
Hingani-Beradi were contemporaries of Shahaji, the father of Chhatrapati Shivaji and
one of the ancestors of the Bhonsles of Nagpur who rehabilitated the village of Beradi
was probably the contemporary of Maloji, the grandfather of Chhatrapati Shivaji.
After the death of Sambhaji, during the Mughal-Maratha conflict, Parasoji rendered
invaluable help to Rajaram who had succeeded to the throne of Chhatrapati. The
23
territories of Vidarbha and Berar from which he had exacted tribute were given to his
charge under a grant made in 1699 A.D.
In 1707 after the death of Aurangzeb when Shahu was released by Muhammad Azam,
Parasoji Bhonsle was the first of the Maratha nobles to join him in west Khandesh.
The 17th century saw the invasion of the Peshwas who were instrumental in making
the district a part of Berar. The Peshwas were succeeded by the Nizams during the
1850s; the Nizam ceded Berar to the British East India Company. In 1903, the Nizam
leased Berar to the British Government of India. It was transferred to the Central
Provinces. In 1956, with the re-organization of states, Bhandara was transferred from
Madhya Pradesh to Bombay Province and in 1960 with the formation of Maharashtra;
it became a district of the state. Gondia district was carved out by division of
Bhandara district after the 1991 Census.
2.3 Divisions
The district is divided into 2 sub-divisions, Gondia and Deori which are further
divided into 8 talukas. Each sub-division consists of 4 talukas. The Gondia subdivision consists of Gondia, Goregaon, Tirora and Arjuni Moregaon talukas while
Deori sub-division consists of Deori, Amgaon, Salekasa and Sadak Arjuni talukas.
The district consists 556 Gram panchayats, 8 Panchayat Samitis and 954 revenue
villages. Two municipalities in this district are Gondia and Tirora.
The district has 4 Vidhan Sabha constituencies: Arjuni-Morgaon (SC), Gondiya,
Tirora and Amgaon (ST). While the first three are part of Bhandara-Gondiya Lok
Sabha constituency, the last one is part of Gadchiroli-Chimur (ST) Lok Sabha
constituency.
2.4 Economy
In 2006 the Ministry of Panchayati Raj named Gondia one of the country's 250 most
backward districts (out of a total of 640). It is one of the twelve districts in
Maharashtra currently receiving funds from the Backward Regions Grant Fund
Programme (BRGF).
24
2.5 Demographics
According to the 2011 census Gondia district has a population of 1,322,331, roughly
equal to the nation of Mauritius or the US state of New Hampshire.This gives it a
ranking of 369th in India (out of a total of 640). The district has a population density
of 253 inhabitants per square kilometre (660/sq mi) . Its population growth rate over
the decade 2001-2011 was 10.13%. Gondiya has a sex ratio of 996 females for every
1000 males, and a literacy rate of 85.41%.
25
RESEARCH
METHODOLOGY
26
CHAPTER SCHEMES
3.1 OBJECTIVES
3.2 HYPOTHESIS
3.3 SCOPE OF STUDY
3.4 LIMITATION
27
CHAPTER 3
RESEARCH METHODOLOGY
The methodology that was adopted for the study includes both primary source
of data as well as the secondary source of data. The methodology of the study can be
explained
The Research and Methodology adopted for the present study has been systematic and
was done in accordance to the objectives set which has been detailed as below.
Research Definition
Research is a process in which the researcher wishes to find out the end result
for a given problem and thus the solution helps in future course of action.
According to Redman & Mory, research is defined as a Systemized
effort to gain new knowledge.
Research Design:
According to Claire Seltiz, a research design is the arrangement of condition
and analysis of data in manner that aims to combine relevance to the research purpose
with economy in procedure.
28
3.1 OBJECTIVES
a. To study the different strategies for sales promotion.
b. To determine the awareness level of Lakme & Amway beauty product with
respect to in the market.
c. To know the effectiveness of sales promotion on customers.
d. Gives extra incentive to the customers to make a purchase.
29
3.2 HYPOTHESIS
Brand name is the most prominent factor effects on buying decision of beauty
product.
30
3.3 LIMITATION
Generally, the respondents were busy in their work and were not interested in
responding.
31
Internet
Company manual and booklets
Books etc.
The source of information is generally classified as primary and secondary.
According to payline V. Young The source of information can be classified into
documentary sources and field sources.
32
33
Pretesting: Pretesting is the process of an advance testing of study design after the interview
schedule has been prepared .The researcher referred books and internet to get prepared
literature for this project & report.
Processing:Once the collection of data is over the main step top arranged for processing
and analysis of data.
Editing:
The preparation of the data forms for tabulations must include on operational
procedure for accepting, modifying or resection individual questionnaire.
Tabulation:
Tabulation is a process of summarizing raw and display it in compact forms for
further analysis. Analysis of data is made possible through tables. These tables are
made for different variables and to show relationship with each other.
Interpretation of data:Analysis and interpretation are central step in research process. The goal of
analysis is to summarize o collected data in such a way that they provide answer to the
and triggered the researcher. Interpretation is the research for the broader meaning of
research finding.
34
35
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
1. Most of the customers who visited the store
Male
Female
30 %
70 %
Gender
100
30%
90
80
70
60
50
40
30
20
70%
10
0
Male
Female
Interpretation:From the above the graph it is interpreted that 70% customers who visited
the stores are Female. While rest 30% customers are males.
36
Service Holder
Businessmen
other
16 %
35 %
39 %
10 %
Occupation
45
39
40
35
35
30
25
20
Occupation
16
15
10
10
5
0
Student
Service holder
Businessmen
Others
Interpretation:-
37
Yes
No
80%
20%
90
80
80
70
60
50
40
30
20
20
10
0
Yes
No
Interpretation :
38
Nail enamels
Lipsticks
Shampoos
40%
30%
20%
10%
45%
40%
40%
35%
30%
30%
25%
20%
20%
15%
10%
10%
5%
0%
Lotion
Nail enamels
Lipsticks
Shampoos
Interpretation :
From the above the graph it is interpreted that most 40% customer use Lotion 30%
use Nail enamels 20% Lipsticks and 10% shampoos use the lakeme beauty products
39
5. What do you think, is the main reason for your use of Lakme brand?
Price
Products
Place
Promotion
50%
25%
5%
20%
60%
50%
50%
40%
30%
25%
20%
20%
10%
5%
0%
Price
Products
Place
Promotion
Interpretation :
From the above the graph it is interpreted that most 50% say Price, 25%
say Products, 05% say Place, and 20% say Promotion is the main reason for
your use of Lakme brand
40
Glister
Lipsticks
Shampoos
20%
30%
35%
15%
40%
35%
35%
30%
30%
25%
20%
20%
15%
15%
10%
5%
0%
Nutrilite
Glister
Lipsticks
Shampoos
Interpretation :
From the above the graph it is interpreted that most 20% customer use
Nutrilite, 30% use Glister 35% Lipsticks and 15% shampoos use the Amway
beauty products.
41
Yes
No
80%
20%
90
80
80
70
60
50
40
30
20
20
10
0
Yes
No
Interpretation :
42
80
Yes
No
75%
25%
75
70
60
50
40
30
25
20
10
0
Yes
No
Interpretation :
43
Yes
No
90%
10%
100
89%
90
80
70
60
50
40
30
20
11%
10
0
Yes
No
Interpretation:
Word of mouth promotion has a deciding impact on consumers. Here finding shows
that companies are successful in this as 90% of consumers recommend the brand to others.
44
90
Yes
No
85%
15%
89%
80
70
60
50
40
30
20
11%
10
0
Yes
No
Interpretation:
Word of mouth promotion has a deciding impact on consumers. Here finding shows
that companies are successful in this as 90% of consumers recommend the brand to others.
45
11. How did you come to know about the Lakme and Amway brand?
Through
advertisement
30%
Word of mouth
influence
50%
Internet
Any other
5%
15%
60
50
50
40
30
30
20
15
10
0
Through advertisement Word of mouth influence
Internet
Any other
Interpretation:
30% respondents is say Through advertisement, 50 % Word of mouth influence 05%
Internet, 15% any other know about Brand.
46
FINDINGS, CONCLUSION
& SUGGESTIONS
47
CHAPTER SCHEMES
5.1 FINDINGS
5.2 CONCLUSION
5.3 SUGGESTIONS
48
CHAPTER 5
FINDINGS & CONCLUSION
5.1 FINDINGS
1.
While other branded products are not preferred due to high price and brand
loyalty, brand loyalty.
2.
3.
People who are more conscious about their health are more aware about products
and therefore prefer the products of Amway Groups of Companies.
4.
Users of personnel & Health care products also generally prefer for buying the
products of Amway Groups of Companies.
5.
A majority of the customers look for the price and after sales services before
choosing the products. So the company should plan accordingly to increase their
sales.
49
CONCLUSION
50
5.2 CONCLUSION
The average sales of Lakme & Amway across markets is 37.2 % respectively.
The figure reveal that Lakme & Amway 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.
51
SUGGESTION
52
5.3 SUGGESTIONS
Company should encourage solving the customers complaint. Customer
satisfaction should be the ultimate aim so that customer complaints should be
removal.
Promotion by local advertisement can also help in promoting Sales of the
products.
More promotional schemes should be introduced for customers.
Timely feedback should be taken so that all the problems can be easily
removed.
The company should provide good margin for distributorship.
53
BIBLIOGRAPHY
54
CHAPTER 6
BIBLIOGRAPHY
Books
Websites
http://www.amway.com/beauty/artistry
http://www.amway.in/Shop/Product/Category.aspx
http://www.overdrive.in/
Magazine
Beauty
Femina
55
ANNEXURE
56
CHAPTER 7
ANNEXURE
1. Most of the customers who visited the store
Male
Female
Student
Service Holder
Businessmen
Other
Yes
No
Lotion
Nail enamels
Lipsticks
Shampoos
Nutrilite
Glister
Lipsticks
Shampoos
57
Yes
No
Yes
No
8. Recommendation to Others ?.
Yes
No
9.How did you come to know about the Lakme and Amway brand?
Through advertisement
Internet
Any other
10. What do you think, is the main reason for your use of Lakme brand?
Price
Products
Place
Promotion
58