Lakme Absolute Brand Extension Analysis
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Transcript of 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