Consumer Beahviour and Perception of Women Towards Lakme (Lakmé)

CONSUMER BEHAVIOUR AND PERCEPTION TOWARDS LAKME
INDEX
CHAPTER PAGE NO
1. EXECUTIVESUMMARY………………………………………………….........…..6-7
2. INTRODUCTION TO CONSUMER BEHAVIOUR………………..………...…..8-14
a). CONSUMER BEHAVIOUR…………………………………….………..…8
b). BLACK BOX MODEL……………………………………………………......9
c). SELECTIVE PERCEPTION MODEL………………………….….……....10
d). FACTORS WHICH INFLUENCE CONSUMER BEHAVIOUR……….11-14
3. INTRODUCTION TO PERCEPTION……………………………………….…...15-19
a). WHAT IS PERCEPTION, DEFINITION, FEATURES…………………15
b). PERCEPTUAL PROCESS…………………………………….…………16
c). PERCEPTUAL SELECTIVITY……………………………….………...17-18
d). PERCEPTUAL ORGANISATION……………………………………...…19
4. REVIEW OF LITERATURE ………………………………………………..………20
5. INTRODUCTION TO COSMETIC INDUSTRY IN INDIA……………….……..21-25
6. INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED……...…26-28

a). INTRODUCTION OF HUL…………………………………………………..…26
b). HISTORY……….…………………………………………………………….....27
c). COMPETITORS……..…………………………………..………………….….28
7. INTRODUCTION TO LAKME UNILEVER PRIVATE LIMITED………….……29-35

a). INTRODUCTION, KEY FACTS AND VISION….………..…………….…….29
b). PURPOSE AND PRINCIPLES……………………….…………………..……30
c). CODE OF BUSINESS PRINCIPLES…………………………………….….31-32
d). LAKME’S POSITIONING IN TERMS OF PERSONALITY………………..33-34
e). HOW LAKME IS INFLUENCING ITS CONSUMERS?...............................35
8. PROFILE OF THE ORGANISATION………………………………………..….…36
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9. RESEARCH METHODOLOGY…………………….…………………………,37-39
a). OBJECTIVES…………………………….………………………….……......37
b). SOURCES OF DATA…………………………………………………..….....38
c). RESEACH DESIGN………………….……………………………………….38
d). SAMPLING DESIGN……………………………….……..………….……....38
e). SAMPLE SIZE…………….……………………….…………………….…....38
f). SAMPLE DESCRIPTION…………………………………..………….………38
g). LIMITATION OF STUDY…………………………………..…………….……39
10. DATA ANALYSIS………………………………………………………………40-43

a). TESTING OF HYPOTHESIS………………………........…………….….....40
b). PROCEDURE FOR TESTING HYPOTHESIS……………………….....….41
c). CHI SQUARE TEST…………………………………………..……….……41-43
11. DATA INTERPRETATION…………….……………………………………...44-63

12. FINDINGS……………....……………………………………………………..….64
13. SUGGESTIONS…………..…………………………………………………..65-66
14. CONCLUSION …………………………………....………………………….….67
15. BIBLIOGRAPHY…………………………………………………………………68
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EXECUTIVE SUMMARY
Cosmetics and toiletries are not just the domain of women any longer and Indian men
too are increasingly taking to the use of more and more body sprays, perfumes and
other cosmetics and toiletries. With rising demand from men, the Indian market is
getting enlarged and many players are coming out with cosmetic products especially
skin care products for men. Globalization will certainly increase cosmetic products
penetration and all professionals shall equip themselves to exploit opportunities offered
by this sector.
The consumers are the largest economic group in any country and the present day
business activities are because of consumers only. Thus, consumers are the pillars of
the economy. The consumers are not only the heart of marketing system, but also the
controller of marketing functions. But it the modern marketing system consumers
sovereignty has become a myth on account of the variety of problems in the process of
merchandising. The study of consumer behavior enables marketers to understand and
predict consumer behavior in the market place.
This gives me an opportunity to work on with this endeavor focusing on the Consumer
behavior and perception of women towards cosmetics with special reference to the
Lakme’s cosmetics products’. The primary objective of the study is to understand the
consumer behavior and perception of women by studying the awareness of the financial
products within the consumers and the number of consumers who take the products
from Lakme.
The introductory chapter gives and insight to the cosmetic industry. It briefly explains
about the history of cosmetic sector. It also contain the organizational profile of Lakme,
stating about its mile stones, vision, products, protection solutions, advertising
effectiveness and finally about its marketing strategies and challenges.
The second chapter gives a glimpses idea about the area of dissertation i.e. theoretical
background of the study. This part clearly explains the theoretical part of consumer
behavior in general. The third chapter explains about literature review. It briefly
describes what all are the information source for the present study and what benefits
has derived from the reference of those literatures.
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Next part explains about the research methodology. With the basic understanding of the
study research design was formulated. To collect the data, questionnaires was
prepared.
The necessary data were collected through personal interviews and interaction with
users of Lakme products. This chapter specifically explains about the type of research,
sample technique, sample size, actual collection of data and the tools used for the
testing of hypothesis.
The last but one chapter contains the analysis and interpretation of data collected. The
collected data was coded through tally bars and presented in percentage wise and
depicted in the form of graphical representation. It also includes the hypothesis test
about the overall result of the present study.
The last chapter is entirely the exploration of the research study giving all respondents
opinion in nutshell as findings i.e. stating that around percentage of customers behave
positively towards the Lakme,s products. The dissertation ends up with the suggestions
in order to modify the current system for a higher growth and progress.
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INTRODUCTION TO CONSUMER BEHAVIOUR
Consumer behaviour
Consumer behaviour is the study of when, why, how, and where people do or do not
buy product. It blends elements from psychology, sociology, social anthropology and
economics. It attempts to understand the buyer decision making process, both
individually and in groups. It studies characteristics of individual consumers such as
demographics and behavioral variables in an attempt to understand people's wants. It
also tries to assess influences on the consumer from groups such as family, friends,
reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-
discovery of the true meaning of marketing through the re-affirmation of the importance
of the customer or buyer. A greater importance is also placed on consumer retention,
customer relationship management, personalization, customization and one-to-one
marketing. Social functions can be categorized into social choice and welfare functions.
Each method for vote counting is assumed as a social function but if Arrow’s possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications of the social functions are decisiveness, neutrality, anonymity,
monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social
choice function meets these requirements in an ordinal scale simultaneously. The most
important characteristic of a social function is identification of the interactive effect of
alternatives and creating a logical relation with the ranks. Marketing provides services in
order to satisfy customers. With that in mind, the productive system is considered from
its beginning at the production level, to the end of the cycle, the consumer.
Belch and Belch define consumer behaviour as 'the process and activities people
engage in when searching for, selecting, purchasing, using, evaluating, and disposing of
products and services so as to satisfy their needs and desires'.'
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BLACK BOX MODEL:
Marketing Environmental Buyer Decision Buyer

Stimuli Stimuli characteristics problem response
Product Economic Attitudes Problem Product choice
recognition
Price Brand
Place Information choice
Technological Motivation
search Dealer
Political Perceptions
Alternative choice
Cultural Personality
evaluation Purchase
timing
Promotion Demographic Lifestyle Purchase Purchase
decision amount
The black box model shows the interaction of stimuli, consumer characteristics, and
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people). The black
box model is related to the black box theory of behaviorism, where the focus is not set
on the processes inside a consumer, but the relation between the stimuli and the
response of the consumer. The marketing stimuli are planned and processed by the
companies, whereas the environmental stimulus are given by social factors, based on
the economic, political and cultural circumstances of a society. The buyer’s black box
contains the buyer characteristics and the decision process, which determines the
buyer’s response.
 Information search
Once the consumer has recognized a problem, they search for information on products
and services that can solve that problem. Belch and Belch (2007) explain that
consumers undertake both an internal (memory) and an external search.
 Sources of information include:

 Personal sources
 Commercial sources
 Public sources
 Personal experience
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The relevant internal psychological process that is associated with information search is
perception. Perception is defined as 'the process by which an individual receives,
selects, organizes, and interprets information to create a meaningful picture of the
world'.
THE SELECTIVE PERCEPTION PROCESS:
1. Stage Description
- Selective exposure consumers select which promotional messages they will

expose themselves to.
- Selective attention consumers select which promotional messages they will pay
attention to
- Selective comprehension consumer interpret messages in line with their beliefs,
attitudes, motives and experiences
- Selective retention consumers remember messages that are more meaningful
or important to them
The implications of this process help develop an effective promotional strategy, and
select which sources of information are more effective for the brand.CV
2. Information evaluation
At this time the consumer compares the brands and products that are in their evoked
set. How can the marketing organization increase the likelihood that their brand is part
of the consumer's evoked (consideration) set? Consumers evaluate alternatives in
terms of the functional and psychological benefits that they offer. The marketing
organization needs to understand what benefits consumers are seeking and therefore
which attributes are most important in terms of making a decision
3. Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The
marketing organization must facilitate the consumer to act on their purchase intention.
The organisation can use variety of techniques to achieve this. The provision of credit or
payment terms may encourage purchase, or a sales promotion such as the opportunity
to receive a premium or enter a competition may provide an incentive to buy now. The
relevant internal psychological process that is associated with purchase decision is
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integration. Once the integration is achieved, the organisation can influence the
purchase decisions much more easily.
4. Post-purchase evaluation
It is common for customers to experience concerns after making a purchase decision.

This arises from a concept that is known as “cognitive dissonance”. The customer,
having bought a product, may feel that an alternative would have been preferable. In
these circumstances that customer will not repurchase immediately, but is likely to
switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to persuade the
potential customer that the product will satisfy his or her needs. Then after having made
a purchase, the customer should be encouraged that he or she has made the right
decision.it is not effected by advertisement.
FACTORS WHICH INFLUENCE CONSUMER BEAHVIOUR:
Internal influences
Consumer behaviour is influenced by: demographics, psychographics (lifestyle),

personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behaviour
concern with consumer need consumer actions in the direction of satisfying needs leads
to his behaviour of every individuals depend on thinking.
External influences
Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity,

family, social class, reference groups, lifestyle, and market mix factors.
01. Cultural Factor:-
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class
 Culture:-
The set of basic values perceptions, wants, and behaviours learned by a member of
society from family and other important institutions. Culture is the most basic cause of a
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person’s wants and behaviour. Every group or society has a culture, and cultural
influences on buying behaviour may vary greatly from country to country.
 Sub Culture :-
A group of people with shared value systems based on common life experiences and
situations.
Each culture contains smaller sub cultures a group of people with shared value system
based on common life experiences and situations. Sub culture includes nationalities,
religions, racial group and geographic regions. Many sub culture make up important
market segments and marketers often design products.
 Social Class:-
Almost every society has some form of social structure, social classes are society’s
relatively permanent and ordered divisions whose members share similar values,
interests and behaviour.
02. Social Factors:-
A consumer’s behaviour also is influenced by social factors, such as the (i) Groups (ii)
Family (iii) Roles and status
 Groups :-
Two or more people who interact to accomplish individual or mutual goals.
A person’s behaviours is influenced by many small groups. Groups that have a direct
influence and to which a person belongs are called membership groups. Some are
primary groups includes family, friends, neighbors and coworkers. Some are secondary
groups, which are more formal and have less regular interaction. These includes
organizations like religious groups, professional association and trade unions.
 Family:-
Family members can strongly influence buyer behaviour. The family is the most
important consumer buying organization society and it has been researched
extensively. Marketers are interested in the roles, and influence of the husband, wife
and children on the purchase of different products and services.
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 Roles and Status :-
A person belongs to many groups, family, clubs, and organizations.
The person’s position in each group can be defined in terms of both role and status.
03. Personal Factors:-
It includes
Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v)
Personality and self-concept.
 Age and Life cycle Stage:-
People changes the goods and services they buy over their lifetimes. Tastes in food,
clothes, furniture, and recreation are often age related. Buying is also shaped by the
stage of the family life cycle.
 Occupation :-
A person’s occupation affects the goods and services bought. Blue collar workers tend
to buy more rugged work clothes, whereas white-collar workers buy more business
suits. A Co. can even specialize in making products needed by a given occupational
group. Thus, computer software companies will design different products for brand
managers, accountants, engineers, lawyers, and doctors.
 Economic situation :-
A person’s economic situation will affect product choice
 Life Style :-
Life Style is a person’s Pattern of living, understanding these forces involves measuring
consumer’s major AIO dimensions. i.e. activities (Work, hobbies, shopping, support etc)
interest (Food, fashion, family recreation) and opinions (about themselves, Business,
Products)
 Personality and Self-concept :-
Each person’s distinct personality influence his or her buying behaviour. Personality
refers to the unique psychological characteristics that lead to relatively consistent and
lasting responses to one’s own environment.
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04. Psychological Factors:-
It includes these Factors.
i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes
 Motivation :-
Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction
of the need
 Perception :-
The process by which people select, Organize, and interpret information to form a
meaningful picture of the world.
 Learning:-
Changes in an individual’s behaviour arising from experience.
 Beliefs and attitudes :-
Belief is a descriptive thought that a person holds about something
Attitude, a Person’s consistently favorable or unfavorable evaluations, feelings, and

tendencies towards an object or idea
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INTRODUCTION TO PERCEPTION
Human beings may differ because of their differences & uniqueness. People often see
the same situation/ phenomenon differently within the organization & outside the
organization. For example: when there is an accident in the factory, the supervisor may
treat it as the carelessness of worker while the worker may treat it as lack of adequate
provision of security measures. Thus the situation remaining the same, cause has been
assigned differently by different group of people. In order to understand why people see
the same situation differently, one has to understand PERCEPTION & its different
aspect.
WHAT IS PERCEPTION?
Perception is a cognitive process. Cognition is basically bit of information; cognitive

process involves the way in which people process/understand that information.
Perception process involves selecting, organizing and interpreting the stimulus. Thus
perception is the process selecting, organizing and interpreting or attaching meaning to
the events happening in the environment. However, what one can perceive can be
different from objective reality. Their need not be but there is often, disagreement. For
example: it’s possible that all the employee in a firm may view it as a great place to work
favorable working conditions, interesting job assignment, good pay and excellent benefit
but as most of us know, it’s very unusual to find such agreement.
DEFINITION
“PERCEPTION may be defined as a process by which individual organize and interpret

their sensory impression in order to give meaning to their environment.”
FEATURES OF PERCEPTION
 Perception is the intellectual process through which a person selects the data
from the environment, organizes it, and obtains meaning from it.
 Perception is a psychological process also. The manner in which people perceive
the environment affects his behavior.
 Perception, being an intellectual and psychological process, becomes a
subjective process and different people may perceive the same environmental
event differently.
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PERCEPTUAL PROCESS:
Perception process is explained by input-throughput-output approach. This approach

emphasizes that there is input which is processed and gives output. Perceptual process
present three elements of perception. These are: existence of stimuli (objects, event,
&people) perceptual mechanism (selecting, organizing, & interpretation) and perceptual
outputs (attitude, opinion, & values). Perceptual output along with other determinant of
human behavior affects and shape behavior. Let us see how perceptual process works
in terms of its three basic elements.
1. PERCEPTUAL INPUT: The stimuli in the environment- objects, events, or

people- can be considered as the perceptual inputs. Thus everything in the
setting where the events occur, or which contributes to the occurrence of the
events, can be treated as perceptual input. When the perceiver interacts with a
stimulus, sensation take place which starts perceptual process. (Sensation is
described as the response of a physical sensory organ. The physical senses are
vision, hearing, touch, smell, and taste.)
2. PERCEPION MECHANISM: Perceptual mechanism involves three elements-
selection of stimuli, organization of stimuli, and interpretation of stimuli.
3. SELECTION OF STIMULI: After receiving the stimuli from the environment,
some are selected for further processing while others are screened out because
it is not possible for a person to select all stimuli which he see in the
environment. There are two types of factors which affects the selection of stimuli.
These are external and related to stimuli and internal related to the perceiver.
4. ORGANISATION OF STIMULI: After the stimuli are selected these are
organized in some form of in order to make sense out of that. The various forms
of organizing stimuli are figure-ground, perceptual grouping, simplification and
closure.
5. INTERPRETATION OF STIMULI: The perceptual inputs that have been
organized will have to be interpreted by the perceiver to extract some meaning of
what is going on in the situation. People interpret the meaning of what they have
selected and organized in term of their own assumption of people, things and
situations. They interpret the things as good/bad, beautiful/ugly, and so on.
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Interpretation of stimuli is affected by situation under which perception take place

and characteristics of perceiver.
6. PERCEPTUAL OUTPUT: Based on perceptual mechanism which ends with
interpretation of stimuli, perceptual output emerges. The output may be in the
form of attitudes, opinions, beliefs, impression about the stimuli. This output
along with other factors affecting human behavior may result in overt behavior.
PERCEPTUAL SELECTIVITY
Perception is a selective process. While selection, certain aspects of stimuli are

screened out and others are admitted. For example: when people read a newspaper,
they do not read the entire newspaper but read only those news which interest them.
This is known as perceptual selectivity. This is caused by variety of factors which may
be grouped into two categories:
1. External factor
2. Internal factor
EXTERNAL FACTORS
The external factors are Nature, Location, Size, Intensity, Repetition, Novelty &
Familiarity, Contrast and Motion. Their impact on the perceptual selectivity is as follow:
1. NATURE: By nature we mean, whether the object is visual or auditory, and

whether it involves pictures, peoples or animals. It is well known that pictures
attract attention more readily than words.
2. LOCTION: The best location of a visual stimulus for attracting attention is in the
center of the page. When this position is not available in the newspaper or a
magazine, a position in the upper portion of a page is more favorable than on in
the lower portion and left hand side receive more attention than the right hand
side.
3. SIZE: Generally objects of larger or bigger size attract more attention than the
smaller ones. For Example: in an advertisement in newspaper full page spread
attract more attention than a few lines in the classified section.
4. INTENSITY: The intensity principle states that more intense the external stimulus
is, the more likely is to be perceived. A loud sound, or bright light is noticed more
as compared to soft sound, or dim light. For Example: advertisement on
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televisions are slightly louder than the regular programmes to gain customer’s
attention.
5. REPETITION: The repetition principle states that a repeated external
environment is more attention- getting than a single one. Repetition increase
people’s alertness to the stimulus. For example: Advertisers use this principle by
repeated advertisement of the same product to attract people’s attention.
6. NOVELTY & FAMILIAIRTY: Novelty & familiarity principle state that either a
novel or a familiar external situation can serve as attention-getter. New objects or
events in a familiar setting, or familiar objects or events in new setting draw
better attention.
7. CONTRAST: Contrast is a kind of uniqueness which can be used for attention
getting. Letters of bold types, persons dressed differently than others, buildings
of different colors in the same locality etc. get more attention.
8. MOTION: Motion principle states that a moving object draws more attention as
compared to a stationary object. For Example: commercial on televisions
(moving ones) get more attention than print media.
INTERNAL FACTORS While external factors are related to environment stimuli,

internal factors are related to the individual’s complex psychological makeup or oneself.
People generally select those stimuli and situation which are compatible to their
personality, motivation, and other personal factors. Such factors are- self-concept,
inner- needs, response disposition, individual attitude, interest, learning, and
experience. A brief description of their impact on perception selectivity is as follow:
1. SELF-CONCEPT: The way a person views the world depends a great deal on
the concept or image he has about himself. Knowing oneself makes it easier to
see others accurately. People’s own characteristics affect the characteristics
which they are likely to see in others. They select only that aspects which they
find match with their characteristics.
2. INNER NEEDS: People’s perception is determined by their inner needs. The
need is feeling of tension or discomfort when one thinks him missing something
or when he feels he has not quite closed a gap in his knowledge. People with
different needs select different items to remember or respond to. When people
are not able to satisfy their needs’ they are engaged in wishful thinking, which is
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a way to satisfy the needs not in real world but imaginary world, the day
dreaming.
3. RESPONSE DISPOSITION: Response disposition refers to a person’s tendency
to perceive familiar stimuli rather than unfamiliar ones. Thus, a person perceives
the things with which he is familiar. For Example: persons having dominant
religious value took lesser time in recognizing such related word as ‘priest’
whereas they took longer time in recognizing words related with economic value
such as ‘cost’ or ‘price’.
4. INDIVIDIAL ATTITUDE: The person tries to fit his attitude (whether positive or
negative) in the situation and perceive something. For Example: if a person
always thinks negative, he thinks that whatever is happen in his life will be
negative, he will perceive everything in the negative way. On the contrary if he
thinks positive, he is an optimistic, he will perceive everything in a positive way.
5. INTEREST: If a person is interested in something he will perceive that thing in
better way. On the other hand, if the person is not interested in that thing, he will
not perceive that thing in a better way. For Example: children watch television
with the good interest and curiosity, so they perceive quickly whatever is shown
in TV.
6. LEARNING & EXPERIENCE: People perceive many things differently according
to their learning and experience of the past. If a person has wrong impression or
bad past experience of something, he see the things negative and he perceive
that thing in only negative way because it is his experience that forces him to
perceive in this way.
PERCEPTUAL ORGANISATION People tend to organize the stimuli rather than

perceiving it as a whole. Following ways:
 Figure and ground relationships: The figure represents what catches your
attention as distinct and unique, while the ground indicates what you perceive as
routine.
 Grouping helps individuals break up information and register it in their memory.
That way, even use of multiple stimuli can work and create several associations.
 Closure is a need of consumers as well. They want to take the message to its
logical conclusion if the stimulus does not give complete information. Teaser ads
take advantage of this.
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Does the consumer perceive the stimuli as intended? Perceptual distortion can occur
due to a variety of reasons:
 Physical appearance: The kind of people you are using in advertisements will
distort perceptions, which has to be used to your benefit.
 Stereotypes that develop can distort perception
 First impressions of a product/service get carried on for a long time.
 Jumping to conclusions: If you cannot present yourself differently, the prospect
can jump to conclusions before you even make a presentation, e.g. tele calling
 Halo effect: One or two dimensions of the stimuli will create broad perceptions
on the product. Brand extension can be an example.
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Review of Literature
When consumers perceive an advertisement for a certain brand as promoting another,
it is not only ineffective, but even counterproductive (Kamen, 1987; Poiesz and
Verhallen, 1989): it produces an effect that the advertiser specially wants to avoid.
Therefore, perception, although seldomly studied, is a phenomenon that has an

impact over its consumers, and researchers. Unremitting attention, and measures of
consumer behavior and perception should be added to the more conventional
measures to increase the sales of a product (Poiesz and Verhallen, 1989).
Consumer behavior is studied so that we can come to know that how perception and
attitude of a person decides that what should be the buying pattern of the consumers
(Poiesz and Verhallen, 1989).
A. Sengupta and Noopur Agrawal

Not only the consumer behavior but the perception of consumers, may be the subject
of people buying the products of Lakme (Poiesz and Verhallen, 1989).
Correct identification and confusion are not perfectly related. It is possible that the
recipient of the message cannot attribute any particular brand to an advertising
message, in which case he/she is not really confused, but simply does not have any
idea.
A consumer confusing brands thinks he/she recognises the brand. Depending upon
what is the perception of the consumers, it can be positive or negative. (Häcker and
Verhallen, 1988; Poiesz and Verhallen, 1989). Negative perception refers to the extent
to which the respondents will not buy the product. Positive brand perception refers to
the degree to which the other respondents are willing to buy the product. Positive
Brand perception is an advantage for a brand. Negative brand perception may be a
threat to a clear positioningof the product amongst the women.
Brengman et al. (2001) found that Consumers most vulnerable to brand perception
generally have higher level of knowledge about the products which they are using.
Products are becoming more and more objectively similar with respect to their
functionality and product presentation (Poiesz and Verhallen, 1989). Ha (1996) refers
to the degree of similarity and proximity of advertisements. (De Pelsmacker and
Geuens, 1997a).the more the proximity the more consumers are prone to buy the
products.
Successful advertising techniques get imitated and waves of similar advertising arise.
It can be expected that a higher DOSS leads to more brand confusion. In parallel,
similarity in visual appearance of products has also been found to be a major reason
for confusion in advertising (Loken and Ross, 1986; Ward and Loken, 1986).
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INTRODUCTION TO COSMETICS INDUSTRY IN INDIA
India, with a population of nearly a billion people, is a country of contrasts. India's

urban population is the main engine that fuels the demand for various cosmetic
products. The ‘morphing’ of India is subtle and the changes are not visible for the first
time visitor. However, the market liberalization process that began in 1991, along with
the crowning of three Indians as Miss World and Miss Universe during the preceding
four years, have made Indian women conscious of their appearance. Consequently,
the cosmetic consumption patterns of Indian women have changed, and this trend is
fuelling growth in the cosmetic sector. The Indian cosmetics and toiletries market grew
by 8.7% in current value terms in 2001, with value sales amounting to Rs126 billion.
The market for cosmetics and toiletries in India is characterized by high volume sales
of low-end toiletry products, while at the same time the legendary emerging middle-
class has generally been fuelling demand for cosmetics and upper-mass toiletries.
Products that are too specialized have yet to be successful on the Indian market.
Examples include toners, hand care and other value-added skin care products, bath &
shower products and aftershave balm. Only the richest consumers can afford these;
indeed, the average consumer may be unaware of their purpose or even existence.
This also explains the relatively poor showing of perfumes, especially the premium
variety.
This cosmetics and personal care industry has been growing at an average rate of 20
per cent for the last few years. The growing Indian cosmetics market offers promising
prospects for international brands. The growth rate in the cosmetics market reflects an
increasing demand for beauty care products in India. Perfumes and fragrances, skin
care, and hair care products are some of the major segments with promising
prospects for U.S. companies. Penetration of most cosmetic and toiletries is very low
in India. Current consumption of many products is well below that of many countries in
Asia. The low market penetration of many cosmetics and personal care products
offers room for growth.
Market Overview :
The current size of the Indian cosmetic market is approximately US$ 600 million. Of
this, the fastest growing segment is color cosmetics, accounting for around US$ 60
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million of the market. Industry sources estimate a rapid growth rate of 20 percent per
annum across different segments of the cosmetics industry reflecting an increasing
demand for all kinds of beauty and personal care product. Growth has come mainly
from the low and medium-priced categories that account for 90 percent of the
cosmetics market in terms of volume.
Nail enamels and lipsticks account for around 65 percent of total color cosmetic sales
in India. Lakme, a brand originally introduced by the Tata group of India, now bought
over by Hindustan Lever (HLL) of the Unilever group, Tips & Toes, another domestic
player, and Revlon dominate the US$ 60 million color cosmetics market.
Multinationals, Revlon of the U.S. and L'Oreal's Maybelline has a dominant share of
the small premium lipsticks and nail enamels market. Mass-market products account
for a major share; while the premium segment accounts only for a mere 9 per cent in
lipsticks and 5 per cent in nail enamels. The skin care market in India is estimated at
US$ 180 million. Within the last decade, this segment has seen many consumers
slowly shift from the mass to the premium end of the market. In the skin-care segment,
price and volume played an equal role in value growth. From a very basic level of
most consumers using only face cream and moisturizers, the market for more
specialized skin care products such as sun screens, toners, cleansers, and
astringents, dark circle removing creams, anti-wrinkle creams and day and night
creams seems to have grown steadily in recent years.
Moisturizing lotions, fairness creams and face cleansers are the popular categories in
the skin-care segment and account for approximately 60 percent of the skin-care
segment. The major players in this segments are Lakme, Ponds, and Fair & Lovely of
the HLL group with a 50 percent market share, followed by players such as J.L.
Morison that markets the Nivea range of products in India, Godrej and Revlon. The
size of the hair care market in India is estimated at more than US$ 200 million, 50
percent of which interestingly comes from sales of shampoo. International companies
like Unilever through its subsidiary, Hindustan Lever (Sun silk, Organics, Clinic, and
Lux); and Procter & Gamble (with brands such as Pantene, Head & Shoulders)
dominate the shampoo market in India with approximately 58 and 20 percent market
share respectively.
The market for hair creams, mainly used for hair grooming by men is also very small.
Hair oiling, an age old tradition of Indians and mainly used as a pre-wash nourishment
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is a major segment in this sector and has giants like HLL and local Dabur and Marico
Industries fighting for market share in the hair oil segment. More and more shelves in
shops and boutiques are stocked with cosmetics from around the world. Since
liberalization, many international brands like Avon, Burberrys, Calvin Klein, Cartier,
Christian Dior, Estee Lauder, Elizabeth Arden, Lancome, Chambor, Coty, L'Oreal,
Oriflame, Revlon, L'Oreal, Yardley, Wella, Schwarzkopf, Escada, Nina Ricci, Rochas,
Yves St. Laurent and Japanese cosmetics company, Shiseido have entered the Indian
market.
The prices of most foreign brands have been fairly high, which has deterred average
Indian consumers. International brands cater to a segment that can broadly be
classified as the urban higher income group. Penetration levels of international
cosmetics brands in India are still low. Foreign brands currently constitute only 20
percent of the market. A major reason for low penetration of international brands can
be attributed to high pricing.
Market Trends
Cosmetics and toiletries are not just the domain of women any longer and Indian men
too are increasingly taking to the use of more and more body sprays, perfumes and
other cosmetics and toiletries. With rising demand from men, the Indian market is
getting enlarged and many players are coming out with cosmetic products especially
skin care products for men. In the last five/six years, there has been a renewed craze
for herbal cosmetic and personal care products, especially in the skin care segment
with the growing belief that chemical-based cosmetics are harmful. Shehnaz Hussain,
Biotique, and Lotus Herbals are the major players in this segment. Many companies
also expanded their range to include herbal variants. The growing popularity for
natural products also attracted many primarily health-care companies such as
Himalaya Drugs (with its Ayurvedic Concepts range), and Dabur to launch natural-
based cosmetic products.
Import Market
Costs for importing products are much higher than producing it in the country. India
allows entry of imported cosmetics without any restrictions but the average import tariff
on cosmetics products is currently very high at 39.2 percent. This makes imported
products very expensive for most consumers. Most foreign cosmetics companies
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selling premium brands have had a difficult time developing the low volume premium
market in India.
Competition
The Indian cosmetic 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. HLL and Revlon were the first
to introduce small pack sizes. Revlon introduced its small-range of 8 ml nail polishes
and lipsticks, and was soon followed it its strategy by major Indian companies as well.
Small pack sizes have proved to be very popular in the Indian market as it offers a
consumer lower purchase cost and the opportunity to try new products. . In the skin-
care segment, from just creams and moisturizers, there has been a upgrade to value-
added products such as under-eye wrinkle removing creams, dark circle removing
creams toners, sunscreen lotions, fairness creams, and many more.
The color cosmetics market saw new products such as smudge-proof lipsticks and
mascaras, liquid lip color, and long-stay lipsticks being introduced. These specialized
applications led to growth in volumes and also enabled companies to price the
products at a premium, driving up value growth.
L'Oreal markets its range of specialized hair care products exclusively through salons
and beauty parlors. L'Oreal currently is the only company in the market that has a hair
color range tailored exclusively for parlors. The company was also the first to
introduce modern hair color and shampoos for colored hair in the Indian market.
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.
HUL, is currently India's largest cosmetics and personal care products producer and
its brands has the dominant share (more than 50 percent) in segments such as
personal wash, skin care, shampoos, lipsticks and nail polish.
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Sales Prospects
The growing Indian cosmetics market offers promising opportunities for international
brands. The growth rate in the cosmetics market reflects an increasing demand for
beauty care products in India. The most promising segments for international
companies to pursue are perfumes and fragrances, and specialized/professional skin
care and hair care products. The fastest growing market is however color cosmetics,
which account for US$ 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 cosmetic products remains to be fully exploited. The
Indian skin-care market is not yet fully tapped and offers promising prospects as a
growth area. Penetration of color cosmetics is lower than the penetration prospects of
the skin-care segment.
To promote the growth of their products, a dominant player like Lakme have embarked
upon a business plan to establish their exclusive franchised beauty salons across
major metros in the country. Imported cosmetics have had a major impact on the
Indian market.
L'Oreal India has established a consumer advisory unit and Ponds, as mentioned
earlier offers skin care advise through touch-screen kiosks, and telephone help-lines.
Beautique - an exclusive one-stop shop for only imported cosmetic brands set up
recently in New Delhi has qualified beauty consultants to provide free advice and
make overs to consumers.
Market Access
Prior to March 31, 1999, India had cosmetics and toiletries on its restricted list of
imports and a special import license was required for import of cosmetics and toiletries
into the country. This regulation has now been done away with and, India today,
permits import of cosmetics and toiletries without any restrictions. This has made the
Indian market more attractive to foreign cosmetic companies. Imports have been
made easier, but not necessarily cheaper.
INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED
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Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, touching the lives of two out of three Indians with over 20 distinct categories
in home & personal care products and food & beverages. They endow the company
with a scale of combined volumes of about 4 million tonnes and sales of over Rs.
13,000 crores. HUL is also one of the country's largest exporters; it has been
recognized as a Golden Super Star Trading House by the Government of India.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956
as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati
Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an
employee strength of over 15,000 employees and contributes for indirect employment
of over 52,000 people. The company was renamed in June 2007 to “Hindustan
Unilever Limited”.
In 2007, Hindustan Unilever was rated as the most respected company in India for the
past 25 years by Business world, one of India’s leading business magazines. The
rating was based on a compilation of the magazine annual survey of India’s Most
Reputed Companies over the past 25 years. HUL is the market leader in Indian
consumer products with presence in over 20 consumer categories such as soaps, tea,
detergents and shampoos amongst others with over 700 million Indian consumers
using its products. It has over 35 brands. Sixteen of HUL’s brands featured in the
ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008).
According to Brand Equity, HUL has the largest number of brands in the Most Trusted
Brands List. It’s a company that has consistently had the largest number of brands in
the Top 50 and in the Top 10 (with 4 brands).
Hindustan Unilever's distribution covers over 1 million retails outlets across India
directly and its products are available in over 6.3 million outlets in India, i.e., nearly
80% of the retail outlets in India. It has 39 factories in the country. Two out of three
Indians use the company’s products and HUL products have the largest consumer
reach being available in over 80 per cent of consumer homes across India.
The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan

Unilever Limited. HUL was one of the eight Indian companies to be featured on the
Forbes list of World’s Most Reputed companies in 2007.
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History - Chronology
In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight
soap bars, embossed with the words "Made in England by Lever Brothers". With it,
began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon
after followed Lifebuoy soap in 1895 and other famous brands like Pears, Lux and
Vim. Vanaspati ghee was launched in 1918 and the famous Dalda brand came to the
market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited
(1935). These three companies merged to form HUL in November 1956; HUL offered
10% of its equity to the Indian public, being the first among the foreign subsidiaries to
do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding
is distributed among about 360,675 individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the
company had launched Red Label tea in the country. In 1912, Brooke Bond & Co.
India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an
international acquisition. The erstwhile Lipton's links with India were forged in 1898.
Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was
incorporated.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of

the most visible and talked about events of India's corporate history, the erstwhile Tata
Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995,
HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture,
Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other
appropriate products of both the companies. Subsequently in 1998, Lakme Limited
sold its brands to HUL and divested its 50% stake in the joint venture to the company.
Some of its brands include Kwality Wall's ice cream, Knorr soups & meal makers,
Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam and Moti soaps, Pureit water purifier,
Lipton tea, Brooke Bond tea, Bru coffee, Pepsodent and Close Up toothpaste and
brushes, and Surf, Rin and Wheel laundry detergents, Kissan squashes and jams,
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Annapurna salt and atta, Pond’s talcs and creams, Vaseline lotions, Fair and Lovely
creams, Lakmé beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Dove
shampoos, Vim dishwash, Ala bleach, Domex disinfectant, Rexona, Modern Bread,
and Axe deosprays.
COMPETITORS
Procter and Gamble (P&G) India: HUL faces a fierce competition from P&G India in its
key segments i.e. Detergents and Personal Care. It operates in India thorugh three
subsidiaries: Procter and Gamble Home Products (100% subsidiary of the company),
Procter and Gamble Hygiene and Health care Ltd. (PGHH) and Gillette India Ltd. It
has in its portfolio some of P&G's Billion dollar brands such as Vicks & Whisper in
health care and Ariel and Tide in detergents segments.
Godrej Consumer Products Ltd. (GCPL): It has two segments: Soap (64% of
revenues) and Personal Care.GCPL is second largest soap player in India after HUL
with a market share of 9.2%. Personal Care includes hair care products, shaving
cream and other toiletries.On December 11, 2008, it acquired 100% stake in SCA
Hygiene Products which owns the Snuggy brand of baby diapers.
Dabur India Limited - Dabur India Limited is an India-based fast moving consumer
goods company which deals in healthcare, personal care and food products.In
November 2008, Dabur India Limited announced the acquisition of 72.15% of Fem
Care Pharma Ltd which is primarily engaged in the business of export of personal care
products.
Colgate-Palmolive (India) Limited : It manufactures a range of products marketed

under the Colgate which includes oral care products and Palmolive (skin care and hair
care products) brand names.
Marico Limited:Marico has a portfolio on high margin "Beauty and Wellness" platform
which includes hair oils, soaps, edible oils, skin care etc. This portfolio has shown a
growth of 30% over a period of FY05-08.
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INTRODUCTION OF LAKME UNILEVER PRIVATE LTD
“Lakme is the Indian woman’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 woman. They help the Indian woman in
expression of her best self – 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 & 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 a foot print of over 1200 assisted sales outlets, which is the largest span of
outlets with “Beauty Advisors” in the country.
Our vision
Unilever products touch the lives of over 2 billion people every day – whether that's
through feeling great because they've got shiny hair and a brilliant smile, keeping their
homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy
snack.
A clear direction
The four pillars of our vision set out the long term direction for the company – where we
want to go and how we are going to get there:
 We work to create a better future every day

 We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
 We will inspire people to take small everyday actions that can add up to a big
difference for the world.
 We will develop new ways of doing business that will allow us to double the size
of our company while reducing our environmental impact.
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Purpose & principles
Our corporate purpose states that to succeed requires "the highest standards of
corporate behaviour towards everyone we work with, the communities we touch, and
the environment on which we have an impact."
 Always working with integrity
Conducting our operations with integrity and with respect for the many people,
organisations and environments our business touches has always been at the heart of
our corporate responsibility.
 Positive impact
We aim to make a positive impact in many ways: through our brands, our commercial
operations and relationships, through voluntary contributions, and through the various
other ways in which we engage with society.
 Continuous commitment
We're also committed to continuously improving the way we manage our environmental
impacts and are working towards our longer-term goal of developing a sustainable
business.
 Setting out our aspirations
Our corporate purpose sets out our aspirations in running our business. It's underpinned
by our code of business Principles which describes the operational standards that
everyone at Unilever follows, wherever they are in the world. The code also supports
our approach to governance and corporate responsibility.
 Working with others
We want to work with suppliers who have values similar to our own and work to the
same standards we do. Our Business partner code, aligned to our own Code of
business principles, comprises ten principles covering business integrity and
responsibilities relating to employees, consumers and the environment.
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A vitality mentality
Unilever's mission is to add Vitality to life. We meet every day needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and get
more out of life. Our deep roots in local cultures and markets around the world give us
our strong relationship with consumers and are the foundation for our future growth. We
will bring our wealth of knowledge and international expertise to the service of local
consumers – a truly multi-local multinational. Our long-term success requires a total
commitment to exceptional standards of performance and productivity, to working
together effectively, and to a willingness to embrace new ideas and learn continuously.
Code of business principles
 Standard of Conduct We conduct our operations with honesty, integrity and

openness, and with respect for the human rights and interests of our employees.
 Obeying the Law Unilever companies and our employees are required to
comply with the laws and regulations of the countries in which we operate.
 Employees Unilever is committed to diversity in a working environment where
there is mutual trust and respect and where everyone feels responsible for the
performance and reputation of our company. We will recruit, employ and
promote employees on the sole basis of the qualifications and abilities needed
for the work to be performed.
 Consumers Products and services will be accurately and properly labelled,
advertised and communicated.
 Shareholders Unilever will conduct its operations in accordance with
internationally accepted principles of good corporate governance. We will provide
timely, regular and reliable information on our activities, structure, financial
situation and performance to all shareholders.
 Business Partners Unilever is committed to establishing mutually beneficial
relations with our suppliers, customers and business partners.
 Community Involvement Unilever strives to be a trusted corporate citizen and,
as an integral part of society, to fulfil our responsibilities to the societies and
communities in which we operate.
 Public Activities Unilever companies are encouraged to promote and defend
their legitimate business interests. Unilever will co-operate with governments and
other organisations, both directly and through bodies such as trade associations,
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in the development of proposed legislation and other regulations which may

affect legitimate business interests..
 The Environment Unilever is committed to making continuous improvements in
the management of our environmental impact and to the longer-term goal of
developing a sustainable business.
 Innovation In our scientific innovation to meet consumer needs we will respect
the concerns of our consumers and of society.
 Competition Unilever believes in vigorous yet fair competition and supports the
development of appropriate competition laws.
 Business Integrity Unilever does not give or receive whether directly or
indirectly bribes or other improper advantages for business or financial gain. No
employee may offer give or receive any gift or payment which is, or may be
construed as being, a bribe.
 Conflicts of Interests All Unilever employees are expected to avoid personal
activities and financial interests which could conflict with their responsibilities to
the company. Any breaches of the Code must be reported in accordance with
the procedures specified by the Chief Legal Officer.
 Business Partner Code We are committed to working with our business
partners to achieve high standards and to provide greater transparency on how
we work together.
 Maintaining high standards together To meet the expectations our consumers
have of our brands as high quality, reliable products, we form close working
relationships – many of them long-term – with our business partners. In support
of this approach, we have developed a Business Partner Code that is compatible
with our Code of Business Principles. The Code makes clear the standards to
which we expect our business partners to adhere. It contains 10 principles
covering business integrity and responsibilities relating to employees, consumers
and the environment.
Business partner code there shall be compliance with all applicable laws and
regulations of the country where operations are undertaken. There shall be respect for
human rights, and no employee shall suffer harassment, physical or mental punishment,
or other form of abuse. Wages and working hours will, as a minimum, comply with all
applicable wage and hour laws, and rules and regulations, including minimum wage,
overtime and maximum hours in the country concerned .There shall be no use of forced
33 | P a g e
or compulsory labour, and employees shall be free to leave employment after

reasonable notice.
There shall be no use of child labour, and specifically there will be compliance with
relevant ILO standards .There shall be respect for the right of employees to freedom of
association* .Safe and healthy working conditions will be provided for all employees .
 Corporate Governance We have always aspired to high standards of corporate

governance. Transparency and accountability are the two basic tenets of
Corporate Governance. We, at Hindustan Unilever, feel proud to belong to a
Company whose visionary founders had laid the foundation stone for good
governance long back and made it an integral principle of the business,
demonstrated in the words above.
Our approach to Corporate Governance To succeed, we believe, requires the highest

standards of corporate behaviour towards everyone we work with, the communities we
touch, and the environment on which we have an impact. This is our road to
sustainable, profitable growth and creating long-term value for our shareholders, our
people, and our business partners.
LAKME’S POSITIONING IN TERMS OF PERSONALITY AND SELF CONCEPT:
Lakme is a product range that caters to the beautification needs of not only women in
their adult age but in today's context teenagers also. It has a brand personality of
someone who takes care of you and your beauty needs. It tries to position itself
amongst its consumers as a product range that will help them look beautiful as is
evident from its catchphrases:
1. On top of the world!

2. Source of radiant beauty!
Lakme has a range of beauty products to offer to its consumers. Some of the ways in
which it tries to position itself:
1. Lakme Hair Color: magic of colors (collage).

2. Lakme (versatile eye shadow collection): rich, long lasting and healthy make up.
3. Lakme fair perfect: For flawlessly fair skin!
4. Lakme face magic: daily wear soufflé.
5. Lakme (skin vitalizer): radiant skin, now and forever.
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6. Lakme (moisturizer): radiant skin, now and forever.

7. Lakme nail polish and lipstick: electric brilliance/sensual brilliance
8. Lakme sun expert (sunscreen): sun safe hamesha! (face the sun with a smile)
9. Lakme pure defense: anti-pollution system.
10. Lakme Tropical Island (cosmetics): defining the future of fashion.
11. Lakme hair care (international): natural hair care
12. Lakme hair next: exclusive range of hairstyle products that give you that salon
look instantly.
► On the basis of above mentioned positioning strategies Lakme can have the
following characteristics that determine its personality:
- Someone who takes care of your beauty needs.

- A long lasting beautification product range.
- Something that is not harsh on your body or harmful for your beauty.
- A product that provides you with an option of getting beautiful hair.
- A product that helps you get a beautiful skin.
- A cosmetic product that you can wear for the entire day and not a special
occasion.
- Someone who tells you right things about looking good.
- It's an Indian cosmetic brand.
- It covers all facets of beauty care for women.
The following factors of Lakme's personality help in differentiation of its products from
the competition:
- It covers all facets of beauty care.

- It helps arm the consumer with products to pamper her from head to toe i.e. a
complete product range.
HOW LAKME IS INFLUENCING ITS CONSUMERS?
 THE CONCEPT OF EGO: · According to Freudian Psychoanalytic theory Lakme

tries to position itself on the basis of its appeal to the consumers which have an
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ego. This means that the consumers of Lakme have an impulsive drive for which
they seek immediate satisfaction without concern for means of satisfaction. ·
Women all over the world are always expected to look good and Indian women
are no exception; More so because of the fact that Indian women in general do
not have a fair skin like that of their western counterparts. Thus it becomes but
natural for Indian women to try and look good and use beauty products that help
enhance their looks and style. With globalization and liberalization of Indian
economy and the changing demographics and income levels there is more and
more concern to look good as today's Indian woman is no longer confined to her
home but is a big contributor to the growth of Indian economy.
 THE CONCEPT OF PERSONALITY GROUPS: · Lakme tries to woo the
compliant consumers according to Karen Horney's classification4 of personality
groups i.e. people who move towards others. Those who have desire to be loved,
wanted and appreciated. As is earlier stated women are supposed to look good
not only in western countries but also in India. Women always appreciate if
someone calls them beautiful and it has become the custom of the society to see
women in such a context. So it would be prudent to say that according to the
societal norms a women has to look good at all times and which has a bearing on
the psychology of female consumers towards cosmetic products which help them
achieve that desired look.
 CONCEPT OF PERCEPTUAL SELECTION: On the basis of perceptual
selection Lakme has tried to position itself among its consumers in the following
ways: Lakme has tried to gain the attention of its consumers by line extension
and having more and more product depth, packaging and attractive print
advertisements. If we look at the line extensions of Lakme than we would
observe that it is in almost all the segments of cosmetic care ranging from hair
care to skin care to beauty salons! Looking at the product depth it is pretty
evident that Lakme has actually tried to fill in all areas that it can, particularly the
nail paint and the lip color segment is a big hit among Indian women as it offers
them a wide variety of products in terms of colors as well as various styles that
they can choose from.
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PROFILE OF THE ORGANISATION
Name of the company : LAKME UNILEVER PRIVTAE LTD
Address of Head office : 165166 Hindustan Lever House

Backbay reclamation, church gate, Mumbai,
Maharashtra.india 400020
City : Baddi
State : HIMACHAL PRADESH
Status : Private
Telephone Number : 1800 22 8080
Email : info@lakmelever.com
Website : http://lakmeindia.com
Chief Executive Officer : Pushkaraj Shenai
Company’s product range : Lakme Lipstick

Lakme Nail Polish
Lakme Eyeliner
Lakme Kajal
Lakme Strawberry Face Wash
Lakme Radiant Rose Powder
Lakme Nail Enamel Remover
Lakme Strawberry Silk Cream
Lakme Deep Pore Cleansing Milk
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RESEARCH METHODOLOGY
Research methodology is a careful investigation for inquiring in a systematic method and

finding solution of a problem. It comprises the defining and redefining of problem
formulating hypothesis, collection and evaluating data, making detection and reaching
conclusion. This research consists of following element.
OBJECTIVE OF STUDY
SOURCES OF DATA
RESEARCH DESIGN
SAMPLING DESIGN
OBJECTIVES OF THE STUDY
1. To understand the attitudes and perception of respondents towards cosmetics products.
2. To understand the growth of cosmetics sector in today’s scenario.
3. To study the respondents awareness towards Lakme.
4. To know people perception towards Lakme products available in the market.
5. To understand people’s consumer behavior with reference to cosmetics.
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SOURCES OF DATA
Primary Source of Data
Primary data are those collected by the investigator himself for the first time and thus they
are original in character, they are collected for a particular purpose. A wellstructured
questionnaire was personally administrated to the selected sample to collect the primary
data.
Secondary Source of Data
Secondary data are those, which have already been collected by some other persons for
their purpose and published. Secondary data are usually in the shape of finished products.
External Data, was generated from magazines, research books and internet (websites).
RESEARCH DESIGN
The study was conducted as an exploratory sampling survey method to collect primary and
secondary data.
SAMPLING DESIGN A sample is a representative part of the population. In sampling

technique, information is collected only from a representative part of the universe and the
conclusions are drawn on that basis for the entire universe. A random sampling technique
was used to collect data from the respondents. A random sample is a sample selected from
a population in such a way that every member of the population has a equal chance of being
selected and the selection of any individual does not influence the selection of any other. The
selection is purely depends on chance. So while conducting the survey, 100 respondents
were selected at random.
SAMPLE SIZE Sample size denotes the number of elements selected for the study. For the
present study, 100 respondents were selected at random. All the 100 respondents were the
customers of one or another cosmetic industry. Out of these 100 respondents 60 were
specifically Lakme customers.
SAMPLE DESCRIPTION The respondents of this dissertation was 100 cosmetics users of
different cosmetics companies in general, out of which 60 respondents were the users of
Lakme in particular; as the dissertation was focused on the consumer behavior and
perception of users towards the cosmetic products with special reference to Lakme. The
respondents were personally contacted for the purpose of the study. A questionnaire was
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used for survey and was answered by the customers of different life insurance companies.
Most of the respondents were in age group of 18-20; which was having a frequency of 68, 14
respondents were in the age group of 21-24, 10 respondents were in the age group of 24-29
and 8 respondents were more than 30 years. According to gender wise, all were female
respondents. Nearly half of the respondents were students and a big chunk of the rest was
employed women.
LIMITATION OF STUDY
1. An underlying assumption for the entire project is that the details and the feedback
received from the population is true.
2. It was difficult to find respondents as they were busy in their schedule, and collection of
data was very difficult. Therefore, the study had to be carried out based on the availability of
respondents.
3. Some of the respondents were not ready to fill the questionnaires and some of them were
not ready to come out openly.
40 | P a g e
TESTING OF HYPOTHESIS
The test of hypothesis begins with an assumption about the population from which the
sample is drawn. According to Prof.Morris Ham bury, “A hypothesis is simply a quantitative
statement about a population”. Hypothesis testing deals with a procedure, which accepts or
rejects the hypothesis.
Hypotheses are of two types:
1. Null Hypothesis
2. Alternate Hypothesis
Null Hypothesis
The null hypothesis is a very useful tool in testing the significance of difference. It states that
there is no real difference in the sample value and population value in the particular value
under consideration. This means that the observed difference is due to the random
fluctuations. The null hypothesis is denoted by Ho.
Alternate Hypothesis As against the null hypothesis the alternative hypothesis specify
those values that the researcher believes to hold true, and he hopes that the sample data
lead to acceptance of this hypothesis as true.
Types of Errors When a statistical hypothesis is tested there are four possibilities:
1. The hypothesis is true but the test reject it (Type 1 error)
2. The hypothesis is false but the test accepts it (Type 11 error).
Level of Significance Confidence with which the null hypothesis is accepted or rejected
depends on what is called significant level. The probability, with which we may reject a null
hypothesis, when it is true, is called the level of significance. Therefore the level of
significance is the risk, statisticians running in his decision. The level of significance is
denoted by ‘a’. It is better to keep level of significance at a low percentage. It means that we
should not reject a true hypothesis.
Acceptance Region This represents the region with which the calculated value of the
statistics must lie to accept the null hypothesis. If calculated value lies in this region then the
null hypothesis will be rejected.
41 | P a g e
Procedure for Testing Hypothesis
1. Set up a null hypothesis (Ho) and alternative hypothesis (H1) appropriate to the test to be
conducted.
2. Specify the suitable level of significance.
3. Decide the test criterion suitable to the test statistics
4. Calculate the value of the test statistics using the appropriate formula
5. Make decisions about accepting or rejecting the null hypothesis. If calculated value is less
than tabulated value, Ho is accepted, else, HA is accepted by rejecting Ho.
Tools used for testing of hypothesis
Chi- square Test: It is a non- parametric test. It describes the magnitude of discrepancy
between observed value and expected value. Higher the value of Chi-square y 2, greater the
discrepancy between the observed values from sample to sample. It is a statistic whose
value is always positive and varies from zero to infinity. It is the sum of difference between
the expected value and observed value. This distribution is a limiting approximation of
multinomial distribution with g as the mean and 2g (nu) as the variance of the distribution.
The test depends on the set of observed and expected values and the degree of freedom g
(nu). It is a continuous distribution, which can be applied to discrete random variables.
Degree of Freedom (DOF)
It is the number of classes to which the values can assigned arbitrarily without violating the
restrictions or limitations placed. It is calculated using the following formulae.
DOF = (r- 1)* (c – 1) where r is the no: of rows
C is the no: of columns DOF = (n-1), where n is the no: pairs of observed and expected
values.
Condition for Applying Chi-square Test:
The total sample size must be reasonably large. No theoretical cell frequency should be less
than 5. In case, the cell frequency is less than 5, then ‘Yates’ correction factor will be applied.
The constraints on the cell frequency, if varies, should be linear.
42 | P a g e
Uses of Chi-square Test:
 It is used as a test of independence of attributes. This test brings association, if any,

between the attributes.
 It is used as a test of goodness of fit. In other words, it tests whether the given set of
observation will fit in to the distribution (normal, binomial etc…)
 It is used as a test of homogeneity. In other words, it tests whether a set of readings
are more uniform or non-uniform. So with this test we can determine whether two or
more independent random samples are drawn from the same population or not.
Limitations of the study
1. An underlying assumption for the entire project is that the details and the feedback
received from the population is true.
2. It was difficult to find respondents as they were busy in their schedule, and collection of
data was very difficult. Therefore, the study had to be carried out based on the availability of
respondents.
3. Some of the respondents were not ready to fill the questionnaires and some of them were
not ready to come out openly.
TEST OF HYPOTHESIS
Whether the consumers are satisfied with cosmetic products and services of Lakme
company.
CUSTOMER
COSMETIC PRODUCTS SERVICES TOTAL
SATISFACTION
Satisfied 53 48 101
Dissatisfied 7 12 19
Total 60 60 120
HYPOTHESIS:
Ho: consumers are satisfied.

Ha: consumers are not satisfied.
Level of significance: 5%
43 | P a g e
Degree of freedom ( DOF): (R-1) (C-1) = (2-1) (2-1) = 1
Tab=7.88
Test of statistics- (O-E)*2/E
OBSERVED VALUE (O) EXPECTED VALUE (E) (O-E)*2 (O-E)*2/E
53 50.5 5 0.099
7 9.5 -5 0.526
48 50.5 -5 0.099
12 9.5 5 0.526
TOTAL 1.25
Cal = 1.25
Tab = 7.88
Conclusion and Interpretation:
Since, the calculated value is lesser than tabulated value, null hypothesis (Ho) is accepted,
i.e. alternate hypothesis (Ha) is rejected. It means consumers are satisfied products and
services of LAKME.
44 | P a g e
1. Which company’s cosmetics are you using?
Table showing that cosmetics of which company are most used.
PARTICULARS FREQUENCY PERCENTAGE
L’Oréal 20 20%
Lakme 60 60%
Garnier 15 15%
Lotus 05 5%
PROPORTION OF WOMEN USING WHICH COSMETIC

BRAND
lotus
9%
garnier
10%
loreal lakme
23% 58%
From the above table it can be inferred that:
 Out of the 100% population only 20% ladies are using loreal.
 Out of 100%of population only 60% of ladies are using Lakme.
 Out of 100% of population only 15% of the ladies are using garnier.
 Out of 100% of population only 5% of the ladies are using lotus.
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2. Which product are you using most often in a month?
Table showing that which product is being used most often in a month.

Hair care products 12 12%
Skin care products 20 20%
Body care products 10 10%
Make up 58 58%
CHART SHOWING THAT WHICH PRODUCTS ARE USED MOST.

makeup skin care hair care product body care product
9%
10%
58%
23%
From the following table these points can be inferred:
 12% of the women use hair products on monthly basis.

 20% of the women use skin care products on the monthly basis.
 10 % of the women use body care products.
 58% of the women of the women use make up products.
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3. Do you think that your product provides you with an option of healthy and long lasting
harmless?
Table showing the number of people who think that think that their product provides them
with an option of healthy and long lasting harmless Makeup

Yes 58 58%
No 20 20%
May be 17 17%
Not sure 5 5%
graph showing the number of respondents

who think that their cosmetics are healthy
5
4
3
Series 1
2
1
0
no not sure may be yes
From the following table we can infer:
 58% of the people trust their brand when it comes to healthy makeup.
 20% of the people do not trust their brand when it comes to healthy makeup, but
because results use it.
 17% of the people think that not all of the products of their brand is healthy.
 5% of the people are not at all sure of the healthiness of their products.
47 | P a g e
4. What is the reason that motivates you to use the products of a particular company?
Table showing the reasons that motivates the respondents to buy particular product.

Economical 35 35%
Trendsetter 20 20%
Measurable results 28 28%
Easily available 17 17%
REASONS THAT MOTIVATES RESPONDENTS TO BUY A

COSMETIC
ECONOMICAL
TRENDSETTER
MEASURABLE
EASILY AVAILABLE
From the following table we can infer that:
 35 respondents out of 100 respondents find their cosmetics to be economical.

 20 respondents out of 100 respondents find their cosmetics to be trend setter.
 28 respondents out of 100 respondents find their cosmetics to show measurable
results.
 17 respondents out of 100 respondents find their cosmetics to be easily available.
48 | P a g e
5. Approximately how much do you spend in the buying of cosmetics?
Table showing that how much the respondents invest in the buying of cosmetics.

Below Rs. 500 68 68%
Rs. 500 – Rs. 1000 12 12%
Rs. 1000- Rs. 2000 14 14%
Rs. 2000 and above 6 6%
chart showing that how much the

respondents spend in cosmetics.
Rs 1000- Rs. 2000
Rs. 500- Rs. 1000

Series 1
more than Rs. 2000
Rs. 500
0 1 2 3 4 5
From the following table we can infer the following points:
 68 respondents out of 100 respondents spend below Rs. 500 in cosmetics.

 12 respondents out of 100 respondents spend Rs. 500- Rs. 1000 in cosmetics.
 14 respondents out of 100 respondents spend Rs. 1000 – Rs. 2000 in cosmetics.
 6 respondents out of 100 respondents spend more than Rs. 2000 in cosmetics.
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6. Do you find your cosmetic products economical?
Table showing that how many respondents find their cosmetics to be economical.

Yes 49 49%
No 30 30%
May Be 11 11%
Not Sure 10 10%
chart showing the respondents who find

their cosmetics economic or less
economic
yes
no
may be
not sure
 49 respondents out of 100 respondents believe that their cosmetics are economical.
 30 respondents out of 100 respondents believe that their cosmetics are not
economical.
 11 respondents out of 100 respondents say that not all the products are economical.
 10 respondents out of 100 respondents are not at all sure of economic reliability of
their cosmetics.
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7. If you are being asked to choose amongst one of the best product that you use, what
would that be?
Table showing the best cosmetic product of the respondents of their brand .

Sunscreen Lotion 59 59%
Hair Bouncers Crème 15 15%
Moisturizers 9 9%
Lip Gloss 17 17%
chart showing the best cosmetic product of the

respondents
sunscreen lotion
hair bouncers crème
lip gloss
moisturizers
 59 respondents out of 100 respondents found sunscreen lotion to be the best product.
 15 respondents out of 100 respondents found hair bouncers crème to be the best
product.
 9 respondents out of 100 respondents found moisturizers to be the best product.
 17 respondents out of 100 respondents found lip gloss to be the best product.
51 | P a g e
8. What services of your favourite company you appreciate the most?
Table showing the most appreciated service provided by their favourite company.
Steam Bath 32 32%
Manicure / Pedicure 14 14%
Facial/ Massage 44 44%

Hair Services 20 20%
graph showing the most appreciated services provided by the

cosmetic company
facial/ massgae
hair sevicing
Category 2
steam bath
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Series 1
From the table you infer the following points:
 32 respondents out of 100 respondents like steam bath service.

 14 respondents out of 100 respondents like manicure/pedicure.
 44 respondents out of 100 respondents like facial/ massage.
 20 respondents out of 100 respondents like hair services.
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9. What motivates you to buy Lakme products?
Table showing the reasons which motivates the respondents to buy Lakme products

Measurable Results 20 33.33%
Economical 18 30%
Easily Available 12 20%
Trend Setter 10 16.66%
CHART SHOWING THE REASON WHICH

MOTIVATES RESPONDENTS TO BUY LAKME
PRODUCTS
measurable results
economical
easily available
trend setter
From the following table it can be inferred that:
 20 respondents out of total 60 Lakme respondents use Lakme products for the
measurable results.
 18 respondents out of 60 Lakme respondents use its products as they are
economical.
 12 respondents out of 60 Lakme respondents use its products as they are easily
available.
 10 respondents out of 60 Lakme respondents use its products as they are trend
setters.
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10. In which cosmetics of Lakme do you invest your money more?
Table showing the Lakme cosmetic in which the maximum investment is done by
respondents.

Sunscreen Lotion 34 56.66%
Hair Bouncers Crème 9 15%
Moisturizers 5 8.33%
Lip Gloss 12 20%
graph showing that respondents spends

maximum in which product
2
Series 2
0
hair bouncer sunscreen moisturizers lip gloss
and shiner lotion
crème
Series 2
 34 respondents out of the total 60 Lakme respondents spend maximum money in

sunscreen lotion.
 9 respondents out of the total 60 respondents spend maximum money in hair
bouncer’s crème.
 5 respondents out of the total 60 Lakme respondents spend maximum money in
moisturizers.
 12 respondents out of the total 60 respondents spend their maximum money in lip
gloss.
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11. What is your level of information on Lakme as a brand?
Table showing the level of information of respondents on Lakme as a brand.
PARTICULARS FREQUENCY PARTICULARS

Excellent 14 23.33%
Good 28 46.66%
Moderate 10 16.66%
Bad 8 13.33%
graph showing the level of information of resppondents on

lakme as a brand
good
excellent
moderate
bad
 14 respondents out of 60 Lakme respondents had excellent knowledge about Lakme

as a brand.
 28 respondents out of 60 Lakme respondents had good knowledge about Lakme as a
brand.
 10 respondents out of 60 Lakme respondents had moderate knowledge about Lakme
as a brand.
 8 respondents out of total 60 respondents had bad knowledge about Lakme as a
brand.
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12. What is the purpose for which you buy Lakme products?
Table showing the purpose for which the respondents buy the Lakme products

Skin Protection 17 28.33%
Long And Strong Hair 13 21.66%
Glow And Acne Free Skin 10 16.66%
Make Up 20 33.33%
chart showing the purpose for which the

lakme products are being used
make up
skin products
long and strong hair
glow and acne free
 17 respondents out of total 60 Lakme respondents buy Lakme skin protection

products.
 13 respondents out of total 60 respondents buy Lakme products for long and strong
hair.
 10 respondents out of total 60 respondents buy Lakme products for glow.
 20 respondents out of total 60 respondents buy Lakme products for make-up.
56 | P a g e
13. Rating the products offered by Lakme as:
Table showing the rating of the Lakme products by its users.

Excellent 18 30%
Good 28 46.66%
Moderate 14 23.33%
Poor 0 0%
1 2 3
23%
30%
47%
1: excellent
2: good
3: moderate
From the following table we can infer that;
 18 respondents out of total 60 Lakme respondents rate Lakme products as excellent.

 28 respondents out of total 60 respondents rate Lakme products as good.
 14 respondents out of total 60 lkame respondents rate Lakme as moderate.
 None of the respondents rate Lakme products as poor.
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14. Are you satisfied with the beauty services offered by Lakme saloons?
Table showing the satisfaction level of the Lakme respondents with respect to the saloons
services provided by it.

Yes 48 80%
No 12 20%
1 2
1 depicts yes. 2 depicts no.
 48 respondents out of 60 respondents are satisfied with the services provided by the
saloons of Lakme.
 12 respondents out of 60 respondents are not satisfied with the services provided by
the saloons of Lakme
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15. Are you satisfied with the products offered by the company?
Table showing the whether the respondents are satisfied with the products of Lakme.

Yes 53 88.33%
No 7 11.66%
11.66%
88.33% 11.66%
1 2
 53 respondents out of 60 respondents are satisfied with the products of Lakme.

 7 respondents out of 60 respondents are not satisfied with the products of Lakme.
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16. Is the site www.lakmeindia.com site useful to you?
Table showing if site www.lakmeindia.com site useful.

Yes 42 70%
No 18 30%
30%
70%
1 2
1 depicts yes 2 depicts no.
 42 respondents out of 60 respondents found site useful.

 18 respondents out 0f 60 respondents did not found site useful.
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17. Approximately how much do you invest on Lakme products monthly?
Table showing that how much the respondents spend in Lakme products.

Below Rs. 500 40 66.66%
Rs. 500 - Rs. 1000 8 13.33%
Rs. 100 - Rs. 2000 8 13.33%
Above Rs. 2000 4 6.66%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1 2 3 4
Series1
1. Depicts money below Rs. 500; 2. Depicts money between Rs. 500-Rs. 1000; 3.
Depicts money between Rs. 1000- Rs. 2000; 4. Depicts money between Rs 2000 and
above.
 40 respondents out of 60 Lakme respondents spend below Rs 500.

 8 respondents out of 60 Lakme respondents spend between Rs 500-Rs. 1000.
 8 respondents out of 60 respondents spend between Rs. 1000- Rs. 2000.
 4 respondents out of 60 respondents spend between Rs. 2000 and above.
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18. Do you think that Lakme is a leader in a cosmetic industry?
Table showing the number of respondents who think that Lakme is a leader in cosmetic
industry.

Yes 68 68%
No 12 12%
Can’t Say 10 10%
Moderately 10 10%
1 2 3 4
1 depicts yes; 2 depicts no; 3 depicts moderately; 4 depicts can’t say.
 68 respondents out of 100 respondents find Lakme to be the leader.

 12 respondents out of 100 respondents do not find Lakme to be a leader.
 10 respondents out of 100 respondents are not sure.
 10 respondents moderately think that Lakme is a market leader.
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19. Would you continue to buy Lakme products even if its price rises by say upto 15%?
Table showing if the respondents will use the Lakme product even if the price rises by 15%

Yes 39 65%
No 21 35%
 39 respondents out of 60 respondents will continue using Lakme.

 21 respondents out of 60 respondents will stop using Lakme if price will rise.
35%
65%
1 2
 39 respondents out of 60 respondents will continue using Lakme.

 21 respondents out of 60 respondents will stop using Lakme if price will rise.
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CONCLUSION, FINDINGS AND SUGGESTIONS
FINDINGS
1. Lakme is the clear market leader across all age groups and income levels.
2. Majority of the respondents i.e. 60 respondents out of total 100 respondents are using
Lakme products. With L’Oréal in the second number having 20 regular customers of it.
15 respondents are using Garnier and only 5 are using Lotus cosmetics. This shows
that Lakme has more number of women using it.
3. The dissertation shows that maximum number of the respondents are using make up
products of their brand like mascara, eyeliner, foundation, face powder, blushers etc.
next the people are investing maximum in skin care products.
4. 58 respondents trust their brand of cosmetics when it comes to healthy make up. 20
respondents do not find their cosmetics to be healthy in the sense that the brand uses
more of chemicals in its compositions.
5. 35 respondents use their cosmetic products because they are economical in nature,
while a major portion of the bulk buys the products of a brand because they show
measurable results.
6. 68 respondents spend below Rs. 500 on their cosmetics. However there are many
people i.e. 14 who spend Rs. 1000- Rs. 2000 in cosmetics.
7. 49 respondents out of 100 respondents find their cosmetic brand to be economical in
nature.
8. 59 respondents out of total of 100 respondents find sunscreen lotion to be the best
product of their cosmetic brand. While 17 out of them find lip gloss to be the best part
of its brand.
9. 44 people appreciate the facial and massage services provided by their favourite
cosmetic company. 32 out of 100 users find steam bath to be very appreciative.
10. 20 respondents out of 60 users who use only Lakme products, use Lakme products
because they show measurable results. While 18 out of 60 uses it because Lakme is
very economical in nature.
11. 34 respondents out of 60 users of Lakme products use the sunscreen lotion the
maximum times, the next product being lip gloss.
12. 28 respondents have a very good knowledge about Lakme as a brand.
13. 20 respondents out of 60 respondents use Lakme’s makeup products, while 17
respondents use Lakme products of skin protection.
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14. 28 respondents found Lakme to be good, 18 found it to be an excellent product, 14

respondents, moderately like the products of Lakme.
15. 48 respondents are satisfied with the services provided by LAKME.
16. 53 respondents are satisfied with the products of Lakme.
SUGGESTIONS
1. Affordable cosmetic products must be launched, drawing less than 1000 rupees per
month. This will attract mores of young women towards it and will further increase the
market share of the company.
2. Lakme should also concentrate on the cosmetic products for the mails. As today even
boys are becoming more concerned of the way they are looking. More and more boys
are turning out to be metro sexual. This category will rise in the future and Lakme
must concentrate on catching them so that the company can generate more sales
from them.
3. Lakme must not limit itself to serve only the women, as it will be ignoring a large chunk
of looks conscious and metro sexual boys.
4. It would be wise for the company to target young people in the above category and
grow along with them as they and the nation prospers.
5. Many respondents in their answer as to why they did not take Lakme product said that
Lakme does not provide a makeup or sunscreen lotion which is to be put only once as
it is not moisture resistant. So Lakme should work more in creating a water resistant
sunscreen lotion which could stay all through the hard sweaty days.
6. More of the saloons should be created in order to provide easy accessibility to the
consumers of the services and products provided by Lakme.
7. Lakme can start contests for free makeover of women, as it was being started by
dove, sunsilk and ponds in collaboration- be beautiful.
8. Website Changes:
a. Lakme must advertise more about its website in the mass media so people can
gain firsthand knowledge about its products at their convenience in a more
detailed manner.
b. A page must be devoted on why cosmetic products of Lakme must be taken
plus real life stories of how people with use of Lakme cosmetics improved their
looks.
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c. A page devoted to Lakme’s beginning as a cosmetic industry must be included

in the website to assure potential customers that this is one company that will
stick around for a long time to come. Exciting contests can be launched for
those who visit the website.
9. Lakme has tied up with HUL – hence it must advertise in these websites also. It can
also advertise in other beauty related sections of websites like vogue.com and
feminaindia.com. Youth sites like mtstylecheckvindia.com, facebook.com, orkut.com,
twitter.com etc. can also be targeted.
10. According to Abraham Maslow’s hierarchy of needs the 2nd step to self-actualization
is the fulfillment of the safety needs. Though people feel the need for being
presentable and have good looks, a large number live in an ivory tower and they
procrastinate to take decisions regarding this aspect. It is this dormant aspect that
Lakme should awaken in people and bring about restlessness and unfulfilled feeling
regarding their and their family’s overall physical grooming. The next choice then
would be cosmetics.
11. Lakme must not target people only when they start earning but much before that. To
gain the ‘early bird ‘ advantage they must organize sessions in schools and colleges
giving explanations on how the manicure, pedicure, facials, massage etc. can in
general help in their overall development. . It can also bring about a stronger brand
commitment in this manner.
12. Leverage information technology to service large numbers of customers efficiently and
bring down overheads. Technology can complement or supplement distribution
channels cost-effectively. It can also help improve customer service levels
considerably.
13. Use data warehousing, management and mining to gauge the profitability and
potential of various customer and product segments and ensure effective cross
selling.
14. Understanding the customer better will allow cosmetic companies to design
appropriate products, determine pricing correctly and increase profitability.
15. Ensure high levels of training and development not just for staff but for distribution
organizations. Existing organizations will have to train staff for better service and
flexibility, while all companies will have to train employees to cope with new products
and an intensive use of information technology.
66 | P a g e
CONCLUSION:
The different information or benefits derived from the in-depth study of the above mentioned
information sources are as follows:
1. Consumer behavior and perception study; it helped to know that what actually is
consumer behaviour and what are the factors that affect the buying behavior of
consumers. It also helped us to know that how can perception have a positive and a
negative impact on the consumer behaviour.
2. Cosmetic industry in India - this section helped in knowing that cosmetic is not a new
concept in India. People have been grooming themselves physically. The only
difference is the addition of chemicals and technology to our personal grooming.
3. Competition existing in the present insurance market; there are many other
companies posing tough competition to Lakme i.e. Revlon, Garnier, L’Oréal, lotus etc.
4. All the marketing information sources has given a significant contribution to the
detailed theoretical perspective for the research i.e. about consumer behavior and
perception.
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BIBLIOGRAPHY: LIST OF JOURANALS AND MAGZINES
 Ackerman, D. and Gerard J. Tellis, (2001) “Can culture affect price? A cross-cultural
study of shopping and retail prices,” Journal of Retailing, 77, 57-82.
 Hofstede, G. (1980) Culture’s Consequences. CA: Sage Publications.
 Hofstede, Geert, (1984) “Cultural dimensions in management and planning,” Asia
Pacific Journal of Management, 1 (2), 81-99.
 Kale, Sudhir and Jawn Barnes, (1992) “Understanding the domain of cross-national
buyer-seller interactions,” Journal of International Business Studies, 23, 101-132.
 Kotler, P. (1997) Marketing management: analysis, planning, implementation, and
control, London: Prentice Hall.
 Laura, Milner, Fodness Dale and Speece, Mark W. (1993) “Hofstede’s research on cross-
cultural work-related values: Implications for consumer behaviour,” European Advances
in Consumer Research, 1, 70-76.
 Mooij, D. (2004) Consumer Behaviour and Culture: Consequences for Global Marketing
and Advertising, Thousand Oaks, CA: Sage Publications.
 Palmer, A. (2000) Principle of Marketing, Oxford: Oxford University press.
 Rolando, Diaz-Loving, (1998) “Contribution of Mexican ethno psychology to the
resolution of the etic-emic dilemma in personality,” Journal of Cross-Cultural
Psychology, l (29), 104-118.
 Schiffman, L. G and Kanuk, L. Leslie. (1994) Consumer behaviour, NJ: Prentice Hall.
 Schutte, H. and Ciarlante, D. (1998) Consumer Behaviour in Asia, Macmillan Press
Limited.
 Solomon, M. R. (1996) Consumer Behaviour, Englewood Cliffs, NJ: Prentice Hall.
 Usunier, J. C. (2000) Marketing across cultures, London: Prentice Hall.
 Williams D. Jerome, Sang-Lin Han and William J. Qualls, (1998) “A Conceptual Model
of Study of Cross-Cultural Business Relationships,” Journal of Business Research.
Websites used
1. www.invogue.com
2. www.Lakmeindia.com
3. www.google.com
4. www.hindustanunilever.com
5. www.feminaindia.com
68 | P a g e
Market Survey
A study on brand perception of Lakme in Indian women.
Your Name
Phone No.
Gender Male Female
Questionnaire:
Q1. Which company’s cosmetics are you using?

Loreal Lakme Garnier Lotus
Q2. Which product are you using most often in a month?

HAIR CARE SKIN CARE BODY CARE MAKE UP
Q3. Do you think that your product provides you with an option of healthy and long lasting harmless?
Yes No Maybe Not Sure
Q4. What is the reason that motivates you to use the products of a particular company?
ECONOMICAL TRENDSETTER RESULTS EASILY AVAILABLE
Q5. Approximately how much do you spend in the buying of cosmetics?

Below ₹ 500 ₹ 500 – 1000 ₹ 1000 – 2000 ₹ 2000 and above
Q6. Do you find your cosmetic products economical?

Yes No Maybe Not Sure
Q7. If you are being asked to choose amongst one of the best product that you use, what would that be?
SUNSCREEN HAIR BOUNCERS MOISTURIZERS LIP GLOSS
Q8. What motivates you to buy lakme products?

ECONOMICAL TRENDSETTER RESULTS EASILY AVAILABLE
Q9. In which cosmetics of lakme do you invest your money more?

SUNSCREEN HAIR BOUNCERS MOISTURIZERS LIP GLOSS
Q10. What is your level of information on Lakme as a brand?

EXCELLENT GOOD MODERATE BAD
Q11. Rate the products offered by lakme:

EXCELLENT GOOD MODERATE BAD
Q12. Are you satisfied with the beauty services offered by lakme saloons?
Yes No
Q13. Are you satisfied with the products offered by the company?
Yes No
Q14. Is the site www.lakmeindia.com useful to you?

Yes No
Q15. Approximately how much do you invest on lakme products monthly?

Below ₹ 500 ₹ 500 – 1000 ₹ 1000 – 2000 ₹ 2000 and above
Q16. Do you think that lakme is a leader in a cosmetic industry?

Yes No Can't Say Moderatly

Consumer Beahviour and Perception of Women Towards Lakme (Lakmé)

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Consumer Beahviour and Perception of Women Towards Lakme (Lakmé)

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CONSUMER BEHAVIOUR AND PERCEPTION TOWARDS LAKME

a). CONSUMER BEHAVIOUR…………………………………….………..…8

b). BLACK BOX MODEL……………………………………………………......9

c). SELECTIVE PERCEPTION MODEL………………………….….……....10

d). FACTORS WHICH INFLUENCE CONSUMER BEHAVIOUR……….11-14

a). WHAT IS PERCEPTION, DEFINITION, FEATURES…………………15

b). PERCEPTUAL PROCESS…………………………………….…………16

c). PERCEPTUAL SELECTIVITY……………………………….………...17-18

d). PERCEPTUAL ORGANISATION……………………………………...…19

4. REVIEW OF LITERATURE ………………………………………………..………20

5. INTRODUCTION TO COSMETIC INDUSTRY IN INDIA……………….……..21-25

6. INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED……...…26-28

7. INTRODUCTION TO LAKME UNILEVER PRIVATE LIMITED………….……29-35

8. PROFILE OF THE ORGANISATION………………………………………..….…36

10. DATA ANALYSIS………………………………………………………………40-43

11. DATA INTERPRETATION…………….……………………………………...44-63

INTRODUCTION TO CONSUMER BEHAVIOUR

BLACK BOX MODEL:

Marketing Environmental Buyer Decision Buyer

 Sources of information include:

THE SELECTIVE PERCEPTION PROCESS:

- Selective exposure consumers select which promotional messages they will

It is common for customers to experience concerns after making a purchase decision.

FACTORS WHICH INFLUENCE CONSUMER BEAHVIOUR:

Consumer behaviour is influenced by: demographics, psychographics (lifestyle),

Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity,

01. Cultural Factor:-

02. Social Factors:-

Two or more people who interact to accomplish individual or mutual goals.

 Roles and Status :-

A person belongs to many groups, family, clubs, and organizations.

03. Personal Factors:-

 Age and Life cycle Stage:-

A person’s economic situation will affect product choice

 Personality and Self-concept :-

04. Psychological Factors:-

It includes these Factors.

i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes

Changes in an individual’s behaviour arising from experience.

 Beliefs and attitudes :-

Belief is a descriptive thought that a person holds about something

Attitude, a Person’s consistently favorable or unfavorable evaluations, feelings, and

Perception is a cognitive process. Cognition is basically bit of information; cognitive

“PERCEPTION may be defined as a process by which individual organize and interpret

Perception process is explained by input-throughput-output approach. This approach

1. PERCEPTUAL INPUT: The stimuli in the environment- objects, events, or

Interpretation of stimuli is affected by situation under which perception take place

Perception is a selective process. While selection, certain aspects of stimuli are

1. NATURE: By nature we mean, whether the object is visual or auditory, and

INTERNAL FACTORS While external factors are related to environment stimuli,

PERCEPTUAL ORGANISATION People tend to organize the stimuli rather than

Therefore, perception, although seldomly studied, is a phenomenon that has an

A. Sengupta and Noopur Agrawal

INTRODUCTION TO COSMETICS INDUSTRY IN INDIA

India, with a population of nearly a billion people, is a country of contrasts. India's

A strong brand promotional campaign, good distribution network, constant product

INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED

The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of

Colgate-Palmolive (India) Limited : It manufactures a range of products marketed

INTRODUCTION OF LAKME UNILEVER PRIVATE LTD

 We work to create a better future every day

Purpose & principles

 Always working with integrity

OBSERVED VALUE (O) EXPECTED VALUE (E) (O-E)2 (O-E)2/E