CONTENTS

 Introduction
 History
 Products of
 Scope of the study
 Competition in cosmetic market
 Objectives of the study
 Research methodology
 Data analysis and interpretation
 Swot analysis
 Findings and Results
 Limitations
 Recommendations and suggestions
 Conclusion
 Bibliography
LAKME
 INTRODUCTION
` lakme is an Indian cosmetics brand which is owned by Hindustan Unilever. Having
Shraddha Kapoor as the brand ambassador,it ranked at number 1st among the
cosmetics brands in India. Lakme started as a 100% subsidiary of Tata Oil Mills
(Tomco). It was named after the French opera Lakme, which itself is the French from
Lakshmi (the goddess of wealth) who is removed for her beauty. It was started in 1952
famously,because the Prime Minister Jawaharlal Nehru was concerned that Indian
women were spending precious foreign exchange on beauty products and personally
requested JRD Tata to manufacture them in India.

` “Lakme is the Indian women’s Beauty Sutra” – inspiring expression of her unique
beauty and sensuality. Lakme brings expert products and services that are borne out of
true understanding of the needs of the Indian women. They help the Indian women in
expression of herself-sensual, original, expressive, alive and intuitive. Lakme inspires
her to unleash the potency of her femininity, beauty and sensuality.

KEY FACTS

`Lakme was the first major beauty brand in India and takes pride in being the expert
on Indian Beauty for over 50 years. It is complete beauty brand spanning colour,
cosmetics, skin care and hair styling products and extending to beauty services
through the network of Lakme beauty salons. Its bond with beauty and fashion is
manifested through the Lakme fashion week, which is now the largest fashion event of
its kind in the country. Lakme has footprint over 1200 assisted sales outless, which is
the largest spain of outlets with “Beauty Advisers” in the country.

OUR VISION
Unilever products touch the lives of over 2 billion peoples every day – whether that’s
through feeling great because they’ve got shiny hair and brilliant smile, keeping their
homes freash and clean. Or by enjoying a great cup of tea, satisfying meal or healthy
snack.
 HISTORY
In 1995, Lakme Ltd and HLL formed a 50:50 venture Lakme Lever that would market
and distribute Lakme’s products. In 1998, Lakme sold its brands 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 Lakme’s future. A
brand that has over 5 decades talked of beauty is none other than Lakme. Launched in
1952, it offered a range of cosmetics with nail polishes and lipsticks from the early
80’s. Lakme’s also understand the importance of maintaining of skincare products
from 1987. These ranges have been constantly innovated to bring specialized beauty
care and complete the range for the definitive women.

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.
 LAKME PRODUCTS
 Colours- From the spicy shades to the flattering look, Lakme offers a range of
products in the face, lips, eyes and nail segment for the beauty aficionados.
 Face- Lakme Daily Wear Souffle, Lakme Perfecting liquid Foundation, Lakme
Radiance Compact, Lakme Flawless Matte Complexion Compact.

 Lips- Lakme Enrich Lipcolour – Perfecting Definition Lip Pencil – Starshine

Lipgloss – Glosses in lustrous shades available in 14 shades
 Eyes- From dramatic to natural look – a wide range of products are on offer to
creat the perfect eyes.

1. Lakme Kajal

2. Lakme Insta Eyeliner eyelids

3. Lakme Shimmer Eye Cube

 Nails- True Wear Nail Enamel with lacquer like finish. Contains resins and
silicone with colour lock technology that gives brilliant long lasting shine.
 Skin -For radiant skin Lakme is there to pamper your skin with sprcialized
products for the diva in you.
 Cleansing- Strawberry Silk Splash Face Wash. Lakme Fundamental Deep
Pore Cleansing Milk.
 Moisturizing-
1. Lakme Fundamental Peach Milk Moisturiser skin.
2.- Lakme Fundamental Winter care Lotion.
 Sun protection- The range comprises of lotions to keep your skin healthy and
younger looking.
 Skin- For radiant skin Lakme is there to pamper your skin with specialized
products for the diva in you.
 SCOPE OF THE STUDY
 This study uncovers the impact, utility and effectiveness & efficiency of
marketing strategies of Lakme on the success of cosmetic industry. A special
emphasis is laid down on Lakme cosmetics.
 The projects begins with detailed information about marketing strategies and
the impact of measuring customer satisfaction in cosmetic industry Further. It
covers topic as data collection took and research methodology used for the
project. Then it gives the complete analysis of the data collected and it is then
used to reach to a conclusion.
 This study is useful for the better understanding of marketing strategies
towards the Lakme cosmetics industry. As this study is confined to Lakme. It
covers an analysis of customer behavior, attitude, perception, marketing
strategies and satisfaction with respect to Lakme as a BRAND in cosmetic
industry.
 The study takes into account the customers of Lakme in New Delhi and
Gurgaon
 COMPETITION
The Indian cosmetics market, which has been traditionally a stronghold of a few major
Indian players like lakme, and Ponds has seen a lot of foreign entrants 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 and toiletries companies launched their products in
smaller pack sizes to make them more affordable HLL and Revlon were the first to introduce
small pack sizes. Revlon introduced its small range of 8 ml nail polishes and a strong brand
promotional campaign, good distribution network, constant product innovation and quality
improvement and the ability to provide a variety of quality products are some of the major
reasons for the success of most companies.

Sales prospects :-
The growing Indian cosmetics market offers promising opportunities for
international brands. The growth rate in the cosmetics market reflects an increasing demand
forbeauty care products in India. The most promising segments for international companies to
pursue are perfumes and fragrances, and specialized / peofessional skin care and hair care
products. The fastest growing market is however colour cosmetics, ehich account for USS 60
million of the total market.The rural market in India for cosmetics and toiletries remains is
largely untapped. Major domestic players have also not been able to penetrate this market.
The urban market itself for specialized cosmetics products remains to be fully exploited.
 OBJECTIVES OF THE STUDY
 To improve the standard and quality of the product.
 To study the marketing strategies of Lakme cosmetics.
 To know the opinion of consumers toward the company’s product.
 To analyze the reason for these initial strategy in India.
 To know and analyze the level of satisfaction of customers (who demand the product)
and the supplies or manufactures (who produce the product).
 To influence the people to prefer company’s product.
 To study the factors affecting the consumption pattern.
 RESEARCH METHODOLOGY
The research is based on:-

Secondary Data:-

 Internet
 Company Report& Broachers
 Magazines
 Newspapers Articles &journals

Data is also gathered by talking to the respondents (Target audience, understanding their
beauty needs, what aspire them to go for the Lakme brand). Also the level of:-

 Brand awareness,
 Price level,
 Visibility of brand personality,
 Expectancy of Communication

All these factors were the prime criterion for selecting (Which brand??). short listing and
ranking (level of trustworthiness? Or most favoured ) which had helped us for identifying the
winner in cosmetics industry.

RESEARCH DESIGN

1. Conclusion Oriented Research- The research was conclusion oriented because

this research aimed at identifying the characteristics of a successful entrepreneur. In
other words it is a research when we give our own views about the research.

2. Descriptive Research- The research was a descriptive research as it was concerned

with specific predictions, with narrations of facts and characteristics concerning
individuals specially entrepreneurs. In other words descriptive research is a research
where in researcher has no control over variable. He just presents the picture which
has already studied.

Our research is based on the Exploratory Study.

Research is exploratory when you use no earlier model as a basis of your study. The most
usual reason for using this approach is that you have no other choice. Normally you would
like to take an earlier theory as a support, but there perhaps is none, or all available models
come fromwrong context.
 SWOT ANALYSIS
Strength
 Local brand of specific relevance to India.
 Strong R&D capability, well linked with business.
 Integrated supply chain and well spread manufacturing unit.
 Ability to deliver Cost Savings.
 Access to Unilever global technology capability and sharing of best practices from
other Unilever.

Weaknesses
 Price positioning in some categories allows for low price competition.
 Varying quality range in its products.
 Falling quality of Lakme salons.

Opportunities
 Brand growth through increase consumption depth and frequency of usage across all
categories.
 Upgrading consumers through innovation to new levels of quality and performance.
 Building brand image by collaborating with top designers in Lakme Fashion week.

Threats
 Aggressive price competition from local and multinational players.
 Spurious/counterfeit products in rural areas and small towns.
 Non Existence of brand image in long run.
 FINDINGS AND RESULTS
Lakme is the global leader in cosmetics with 25 global brands. It has five key areas
of expertise – hair care, skin care, make-up and fragrances.this company has over 63,358
employess working currently and it sells its products around in 130 countriesall over the
world.

On the analysis of research conducted. It was found that certain findings are very critical and
are directly or indirectly affecting the products:-

 There is a good awareness of Lakme cosmetics products among the

cunsumers.
 The quality of Lakme is very satisfactory viewed by the majority of
customers.
 There is a neck to neck competition between L’Oreal, Oriflame, VLCC,
Revlon etc.
 75% of the customers are fully satisfied with existing quality while 25% are
partly satisfied.
 Majority of women are using lakme product.
 Cunsumers prefer the Lakme products because it provides good qulity,
good services, etc and it all fulfill their needs.
 LIMITATIONS
 Geographical scope of the study was invited to a small area, which may
not represent the whole sector of India.
 Due to limitation of time only few people were selected for the study. So
the sample of consumer was not enough to generalize the finding of the
study.
 There can be many interpretation and explanation to the data collect. This
is empirical study and the research and the research provides the
explanation as understood by the researcher only
 It is a time consuming process to find the data of this topic.
 Increasing competition.
 Low rating of Lakme Salons (not so good customer services)
 No new Strategies to look for improvements.
 May loose its sheen in a long run.
 RECOMMENDATIONS AND SUGGESTIONS
Recommendations
 Promotions beyond fashion week.
 The brand should not lose its focus away from cosmetics. It can proved to very
detrimental.
 For vast reach unlikely, in the short-term “some sort of an alliance or co-branding
with the salons that already exist may, perhaps, have been a better strategy.
 The general perception is that company- owned salons are expensive. Though Lakme
beauty salons are reasonably priced, it has not been communicated well enough.

Suggestions
 The supply must be properly fulfilled so the need of the customer satisfies.
 Target selling for the dealer/agent can increase the sales of company.
 The company must concern to the satisfaction of customers demand.
 Fulfill the customer needs.
 The company and dealer should develop its marketing information system up to date
information of competitors policy, price and product target market so the company
can know its strengths and weaknesses.
 Lakme is the market leader in make-up products. Most of the consumers are brand
loyal. They should be treated as intangible assets. Lakme should ever strive to satisfy
them.
ORIFLAME
 INTRODUCTION
Founded in 1967 by two brothers and their friend, Oriflame is now an international
beauty company selling direct in more than 60 countries worldwide. Its wide portfolio of
of Swedish, natural, innovative beauty products are marketed through a sales force of
approximately 3.6 million independent consultants that are marketing our products
around the globe.
Oriflame offers the leading business opportunity for people who want to start making
money from day one and work towards fulfilling their personal dreams and ambitions.
Through its unique business concept – make money Today and fulfill Your Dreams
Tomorrow.
Respect for people and nature underline the company’s operating principles and are
reflected in its social and environmental policies. Oriflame support numerous charities
worldwide and is a co-founder of the world Childhood Foundation. Oriflame Cosmetics
is listed on the Nasdaq OMX Nordic language.
Oriflame Cosmetics is an international beauty company selling direct. The company
began operation in 1967 in Sweden and has today a presence in our 60 countries
worldwide. The company has over 3.5 million “consultants” worldwide with annual
sales of $1.5 billion. Oriflame has been listed on NASDAQ OMX Stockholm since
2004.
The brand got its name from the royal banner of medieval france which was unfurled
only on the battle field and accompanied by the war cry Montjoie Saint Denis. Oriflame
gained its first UK consultant in 1970.
Oriflame is involved in several programs for exp the “World Childhood Foundation”,
SOS Children’s Villages s well as local small charities.
 HISTORY
Oriflame Cosmetics is today one of the world’s fastest-growing cosmetics companies.
Oriflame has sales operations in 60 countries and market leadership is over 30 countries. A
sales force of 3.5 million independent sales consultants market a complete range of high
quality skincare. fragrances and cosmetics. Although the company has grown rapidly it never
lost sight of its original business concept – Natural Swedish Cosmetics from friend to friend.

Oriflame Cosmetics:
A Worldwide Success Story:
 Approximately billion Euros in annual sales.
 3.5 million sales consultants.
 7500 employees.
 900 products.
 Over 64 million catalogues in 35 languages.
 Watch the Video Global R&D centre with more than 100 scientists.
 5 own production units in Sweden, Poland, China, Russia, and India.
 Listed on the OMX Nordic Exchange since March 2004
 Products based on natural ingredients, never tested on animals.
 ORIFLAME PRODUCTS
Oriflame presents a wide product portfolio with eternal favorites and a floe of exciting news,
affordable for many. Customers are offered over 900 cosmetics products, more than a third of
which were launched during the the past years.

Oriflame’s products are developed using cutting-edge technology and are manufactured
according to the highest quality standards. No Oriflame cosmetic product has ever been tasted
on animals.

ORIFLAME has a wide variety of product lines and product ranges which are:

 Skin care- Nourishing hand cream, optimal white day fluids SPF 15, Diamonds
cellular anti ageing cream, optimal nutri calm night creams.

 Make up- Renewing hand scrub, Lip spa therapy, Matte control pressedpowderlight
and medium, Matte control foundation, Oriflame beauty studio artist(lipsticks), eye
pencil.

 Fragrances- Ascendant deodorant spray, sun eau spray, Mid-night pearl eau de
perfume.
 Personal care- Oriflame soap, tea-free hair and body was, fairness soap, Hair X
care protect shampoo.
 Scope of the study
 This project was chosen to know about the customer satisfaction towards oriflame in
Thoothukudi district. To know the mind set of people towards cosmetics. How
oriflame has impact on the minds of the customers.
 Oriflame offers the leading business opportunity for people who want to start making
money from day one and work towards fulfilling their personal dreams and ambitions.
Through its unique business concept – make money Today and fulfill Your Dreams
Tomorrow.
 Respect for people and nature underline the company’s operating principles and are
reflected in its social and environmental policies. Oriflame support numerous charities
worldwide and is a co-founder of the world Childhood Foundation. Oriflame
Cosmetics is listed on the Nasdaq OMX Nordic language.
 Oriflame Cosmetics is an international beauty company selling direct. The company
began operation in 1967 in Sweden and has today a presence in our 60 countries.
 COMPETITION OF ORIFLAME
Mr. Saad the Area Sales Manager of Oriflame in Pakistan said, ”To be the market leader is
difficult within a pace of 3 years but I see the company in growth face of the product life
cycle.”

 ORIFLAME competitors are AVON, AMWAY, LAKME and others.

 AVON has always been the biggest competitor of ORIFLAME.
 ORIFLAME has indirect competitors too- such as LOREAL MAYBELLINE,
MASONNA.
 OBJECTIVES OF THE STUDY
 To study the consumer preference towards Oriflame products.
 To improve the standard and quality of the product.
 To know the opinion of consumers toward Oriflame product.
 To influence the people to prefer Oriflame product.
 To find the satisfaction level of consumers.
 To know the variety of products, discounts and offers in using the Oriflame product.
 To study the services provided by the agents of Oriflame products.
 RESEARCH METHODOLOGY
This is an explanatory study on the consumer behavior and satisfaction towards the purchase
of Oriflame product. Both descriptive and analytical methods have been used to explore the
linkages on the status of Oriflame. The present study is based on survey method. The study is
based on secondary data.

Statement of the problem

Beauty is the essence of every human being. Many of us might not be aware of beauty
product. Every beauty product differs accordingly to its brand. Oriflame is a latest brand
chosen and used by many consumers. We have chosen this project to analyze how far the
Oriflame products are satisfied to the customers in Tuticorin.

Secondary Data:-

 Internet
 Company Report& Broachers
 Magazines
 Newspapers Articles &journals

RESEARCH DESIGN

1. Conclusion Oriented Research- The research was conclusion oriented because

this research aimed at identifying the characteristics of a successful entrepreneur. In
other words it is a research when we give our own views about the research.

2. Descriptive Research- The research was a descriptive research as it was concerned

with specific predictions, with narrations of facts and characteristics concerning
individuals specially entrepreneurs. In other words descriptive research is a research
where in researcher has no control over variable. He just presents the picture which
has already studied.
 DATA ANALYSIS AND INTERPRETATION
Analyzing survey data is an important and exciting step in the survey process. It is the time
that you may reveal important facts about your customers, uncovers trends that you might not
otherwise have known excited, or provide irrefutable facts to support your ideas. By doing in
depth data comparisons, you can begin to identify relationships between various data that will
help you understand more about your respondents, and guide you towards better decisions.

This project gives you a brief about Oriflame customers. Analysis is intended to provide
a foundation upon which we can confidently conduct our own survey. The project report is
based on secondary data which is collected with the help of newspapers, magazines, books,
internet
 SWOT ANALYSIS
Strengths
 Easily available products in residential areas, at parlours and sold by people
whom customers know and trust.
 Release catalogues frequently with offers on products.
 Established brand name since 43 years.
 Provides natural beauty products through an independent sales force of over 3
million people.

Weaknesses
 Lake of promotional activities through mass media.
 Depends on the network of individual sponsors most of its distribution and
available in very few stores.

Opportunities
 Develop deeper distribution network.
 Expanding in rural areas.
 Investing in R&D, launch of new products through innovation.

Threats
 Aggressive price competition from local and multinational players.
 Availability of cheap beauty products.
 Presence of many established brands at one place in the stores thus giving
customers variety.
 FINDINGS AND RESULTS
The researchers have revealed the following findings from the study:-

 From the study it is understood that most of the respondents attracted to

Oriflame Products than other type of cosmetics like lipsticks, Mascara,
Face creame etc.
 It is found by researcher that majority of the respondents who use
Oriflame are females.
 The study reveals that the majority of the respondents like customer care
service.
 The study shows that the opinion about Oriflame Products service for
buying a cosmetic in Oriflame is excellent.
 It is found by researchers that majority of the respondents use
 Oriflame by their own wish.
 The study shows that they are satisfied with price of the
 The study is understood that most of the respondents notice
 The TFM% in Oriflame product.
 LIMITATIONS
 As the time duration was too short for conducting research program, so detail analysis
of every aspect was not possible.
 As the project is based on financial information which most of the times is
confidential in nature. So limited data was available.
 Knowledge constraints does not facilitates as expert.
 Conclusions and recommendations are applicable with the limitations of the scope of
project.
 RECOMMENDATIONS AND SUGGETIONS
Recommendations
 To focus more over make-up.
 It is recommended the during selling products in the particular country the
company should target the celebrities of that country.

Suggestions
The following suggestions help in improvement of Oriflame. If these points are
considered, then surely it will increase the sale:-

 If the price of the cosmetics is reduced it will surely attract more people than the
present. More over not only high class but also the middle class people can also
own Oriflame.
 They can introduce more flavors for youngsters and homemakers.
 More varieties can be introduced in Thoothukudi showroom.
 Many more discounts and offers can be provided to increase the customers
satisfaction.
 Showroom display can be modified so that it may attract new customers.
 Media advertisement should be given so that other customers can be aware of the
project.
 The quality of the customers service at Thoothukudi branch can be increase in
order to satisfy the customer so that there will be increase in the customers.
 COMPARATIVE STUDY
CONCLUSION
Being a cosmetics company selling direct means that Oriflame competes with Lakme and
both with major cosmetics manufactures for end customers as well as with other direct sellers
for consultants. In eastern Europe, direct sales as a channel is estimated to have more than 20
percent of the total cosmetics market compared with the global average of approximately 11
percent.

The two largest cosmetics companies in Eastern Europe selling direct are by a wide margin
Oriflame and Lakme, but there are many other direct sellers competing for consultants, such
as Russian Faberlic, American Mary Kay and Lakme. Lakme and Mary Kay are the largest
direct sellers in China.

While Lakme and Oriflame have the largest market shares among direct sellers in
Indonesia and India.

The success of Oriflame is based on a strong and consistent company culture, promoting and
entrepreneurial spirit and a clear set of values. And other side, Lakme has been found to be
the most preferred brand it meet the promise made to the customer. Consumer reliefs on the
Lakme products because it provides good quality, good results, good services etc. Oriflame
has made incredible profit in the recent year, it is also an international cosmetic and skincare
brand.

Oriflame India

Sentiment
Positive 42

Neutral 181
 Lakme

Sentiment
Positive 12

Neutral 116

Negative 2

This research stays that both cosmetics brands have strong network in the commercial
market. Oriflame is an international cosmetic and skincare brand which is using by around 60
countries. Other side, the Lakme is an famous and no.1 cosmetic brand of India, and the
products of lakme touch the lives of over 2 billion people everyday. The members enjoy the
offers given by the company to them. Both cosmetic brands attract their customers by their
best services, good results and continuing developing their product quality.
 BIBLIOGRAPHY
BOOKS
 Kotler Philip, Keller lane Kevin marketing.
 S.P. Gupta, Business Statistics
 J.K. Sharma

Websites

 www.indianbusinessline.com
 www.investopedia.com
 www.lakmeindia.com
 www.economictimes.com
 www.oriflameindia.com