The Marketing mix of Lakme analyses the 4Ps of Lakme, including the Product, Price, Place, and Promotion of Lakme. Lakme is associated with the FMCG industry and deals in personal care products. It is a cosmetic brand of Indian origin founded in 1952 by its founder, J.R. D. Tata. Lakme was a subsidiary of its parent company, Tomco, but in 1996, its ownership changed hands and is currently owned by Hindustan Unilever. Lakme occupies the first position as the leading brand for cosmetics in India and faces fierce competition from both Indian and international brands like the following-
- L’Oreal
- Garnier
- Yardley
- Revlon
- Avon
- Oriflame
About Lakme
- Type: Cosmetics brand
- Industry: Beauty
- Founded: 1952
- Founders: JRD Tata and Simone Tata
- Headquarters: Mumbai, India
- Area served: India and other parts of Asia
- Current CEO: Sunil Duggal
- Number of employees: 2,500
- Major products: Cosmetics, skincare, haircare, and beauty services
Table of Contents
Lakme Product Strategy
Lakme occupies a significant domestic market share with its vast range of products and related services. It has nearly three hundred items to its credit that professional hair salons and individuals in the domestic and international market use. The product portfolio of Lakme includes items for
Face- It includes illuminators, blush, compact, concealer, bronzer, contour, sunscreen, serums, moisturizers, scrubs, face wash, foundation, and face primer. Some of them are
- Lakme Radiance Complexion Compact
- Lakme Absolute Blur Perfect Makeup Primer
- Lakme Absolute White Intense Concealer Stick
Eyes- Includes eyeliner, Mascara, kajal, eye shadow, eye primer, and eyebrow enhancers. Some of them are
- Lakme Absolute Illuminating Eye Shadow
- Lakme Absolute Kohl Ultimate Kajal Black
- Lakme Eyeconic curling Mascara- black
Lips- These include items like lipstick, lip gloss, lip liner, and lip balm. Some of them are
- Lakme Absolute Illuminating Lip Liner
- Lakme 9 to 5 Crease-less Crème Lipstick
- Lakme Absolute |Gloss Stylist Lip Gloss
Nails- It includes Nail paints in several color shades and removers for its removal. Some of the products are
- Lakme Absolute Gel Stylist Nail Polish
- Lakme True Wear Nail Color
- Lakme 9 to 5 Frosties Nail Enamel
- Lakme Nail Color Remover with Vitamin E
Tools and Brushes- Includes lip brush, blush brush, eye brush sets, and face brush.
Make-up kit- Includes eye palettes, face palettes, customized palettes, and combo sets.
Lakmé, a prominent cosmetics brand in India, offers various products catering to beauty and skincare needs.
The product mix of Lakme in 2023 is as follows (Source)
- Makeup: Lakmé provides an extensive range of makeup products, including foundations, concealers, blushes, eyeshadows, eyeliners, mascaras, lipsticks, lip glosses, and nail polishes. They are known for their wide range of shades suitable for various skin tones, mainly focusing on those familiar in India.
- Skincare: The brand offers moisturizers, face washes, cleansers, scrubs, sunscreens, and serums. These products are often infused with natural ingredients and are designed to suit different skin types, from dry to oily.
- Hair Care: Though not as extensive as their makeup and skincare lines, Lakmé has a selection of hair care products, including hair styling and shampoos.
- Salon Services: Lakmé also runs a chain of beauty salons offering various services, including hair styling, skin treatments, and bridal makeup packages.
- Specialized Collections: They occasionally release specialized collections, often in collaboration with fashion designers or to celebrate specific themes or occasions.
- Accessories: The brand includes a variety of beauty accessories like makeup brushes, sponges, and other application tools.
Lakmé is particularly noted for its innovation and adaptation to the latest beauty trends while also considering the local preferences and skin types of Indian consumers. Their products are generally regarded as affordable and accessible, making them popular among a broad demographic in India.
Lakme Place Strategy
Lakme was the first beauty brand in India to deal with cosmetics on such a large scale, and its footprint has extended to every nook and corner of the country. It has a vast distribution channel that includes services of nearly twelve hundred sales outlets with beauty advisors. It has also set up one hundred and ten beauty salons in India. Its products are readily available to customers through the services of distributors, stockists, and retailers. Besides its outlet, products are available at hypermarkets, supermarkets, convenience stores, discount stores, and beauty shops. Lakme has not curtailed its products to the Indian market; its products are easily obtained in nearly seventy countries worldwide.
Lakme’s Place Strategy is as follows:
- Wide Retail Distribution: Lakmé products are extensively available in various retail outlets across India, including cosmetics stores, supermarkets, and department stores, ensuring easy accessibility for a broad customer base.
- Online Presence: Embracing digital trends, Lakmé has a robust online presence, selling through popular e-commerce platforms and its website, catering to the growing segment of digital-savvy consumers.
- Lakmé Salons: The brand operates an extensive chain of Lakmé Salons across India, offering beauty services and a physical touchpoint for customers to experience and purchase Lakmé products.
- Urban Focus with Growing Rural Reach: Initially focusing on urban and metro areas, Lakmé has been progressively expanding its reach into smaller towns and rural areas, tapping into the growing beauty consciousness in these markets.
- International Reach: While its primary focus is the Indian market, Lakmé has also made inroads into international markets, targeting the Indian diaspora and others interested in Indian beauty products.
Lakme Pricing Strategy
India is a price-sensitive nation, with most people thinking twice before spending their money. Lakme is a cosmetic brand that caters mostly to the female population. The company was quite sure of its approach towards Lakme’s pricing and marketing strategy. It wanted to garner as many customers as possible by penetrating urban and rural markets. Therefore, it has adopted a reasonable, customer-friendly pricing strategy and policy because it wants its products to reach the masses. It realizes that affordable and pocket-friendly rates will result in large volumes, eventually leading to better profits.
Lakmé’s pricing and distribution strategy reflects a keen understanding of its diverse consumer base and market dynamics, tailored to balance quality and affordability. Here’s an overview:
- Value-Based Pricing: At its core, Lakmé employs a value-based, customer-friendly pricing strategy, setting prices that reflect the perceived value of their products to the consumer. This approach allows them to cater to a wide range of customers, from budget-conscious buyers to those seeking premium products.
- Competitive Pricing: In a market crowded with both local and international brands, Lakmé strategically prices its products to remain competitive. They often benchmark their prices against critical competitors, ensuring they offer comparable quality at similar or slightly better price points.
- Product Line Pricing: Lakmé skillfully uses product line pricing with different price ranges within the same product category. For instance, their lipsticks range from more affordable daily wear options to higher-end variants, catering to different segments within their customer base.
- Psychological Pricing: The brand often employs psychological pricing strategies, such as pricing products slightly below a round number (e.g., Rs. 499 instead of Rs. 500). This tactic aims to make the price appear more attractive and can influence consumer perception of value.
- Promotional Pricing: Lakmé periodically introduces promotional offers, discounts, and bundled deals, especially during festive seasons or through their online platforms. This boosts short-term sales and helps attract new customers and retain existing ones.
By integrating these diverse pricing strategies, Lakmé effectively addresses its target market’s varying needs and preferences, enhancing brand accessibility and appeal. This approach to marketing strategy helps maintain a strong market presence among premium customers and fosters customer loyalty in the highly competitive beauty and cosmetics industry.
Lakme Promotion Strategy
Lakme has adopted an aggressive marketing and advertising strategy and plans to promote its products to every nook and corner. Its ad campaigns are advertised through television, radio, newspapers, fashion magazines, billboards, and social media platforms like Twitter, Facebook, Blogs, and YouTube. It believes in star power and its impact on the common masses and has roped in several personalities time and again as its brand ambassadors and to act in its ad campaigns. Indian film stars Shraddha Kapoor, Kareena Kapoor, Katrina Kaif, and famous model Lisa Haydon have acted in its commercials. It is the title sponsor of a bi-annually held Lakme Fashion Week fashion week. The company has set up Lakme Beauty Training Academy in Chennai, Delhi, and Mumbai to assist interested people.
Lakme’s Promotion Strategy is as follows:
- Celebrity endorsements and collaborations: Lakmé leverages the influence of Bollywood celebrities and renowned makeup artists for endorsements and collaborative product lines, enhancing the beauty brand’s visibility and appeal.
- Digital Marketing and Social Media Campaigns: The company actively engages in digital marketing and advertising strategy, utilizing social media platforms, influencer partnerships, and online advertising to become brand ambassadors and reach a broader, tech-savvy audience.
- Events and Sponsorships: Lakmé is notably associated with Lakmé Fashion Week, a leading event in India’s fashion industry, which serves as a platform for brand promotion and showcasing new products and trends.
Some Recent Video ads and Print ads of Lakme are:
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