12864206 Lakme Fashion

Q) Pick any fashion product. Show how a company retailing this product has managed to be successful by taking recognition of the changes in retailing. Provide at least 3 specific instances of how the company has adjusted to changes in retailing to become a success. Ans) Retailing - no marks for guessing this is the most active and attractive sector of the last decade. While the retailing industry itself has been present through history in our country, it is only the recent past that has witnessed so much dynamism. The emergence of retailing in India has more to do with the increasing purchasing power of buyers, especially post- liberalization, increase in product variety, and the increasing economies of scale, with the aid of modern supply and distribution management solutions. The current retailing revolution has been provided an impetus from multiple sources.

These

`revolutionaries'

include

many

conventional

stores

upgrading themselves to modern retailing, companies in competitive environments entering the market directly to ensure exclusive visibility for their products and professional chain stores coming up to meet the need of the manufacturers who do not fall into either of the above categories. Attractiveness, accessibility and affordability seem to be the key offerings of the retailing chain. The fashion product chosen by me is Cosmetics manufactured by Lakme (A Brand of Hindustan Unilever Ltd.). Half a century ago, as India took her steps into freedom, Lakme, India's first beauty brand was born. At a time when the beauty industry in India was at a nascent stage, Lakme tapped into what would grow to be amongst the leading, high consumer interest segments in the Indian Industry - that of skincare and cosmetic products. Armed with a potent combination of foresight, research and constant innovation, Lakme has grown to be the market leader in the cosmetics industry. Lakme today has grown to

have a wide variety of products and services that cover all facets of beauty care, and arm the consumer with products to pamper her from head to toe. These include products for the lips, nails, eyes, face and skin, and services like the Lakme Beauty Salons. In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé’s products. In 1998, Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL, renamed itself Trent and entered a different business (retail). Only, the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé’s future. A brand that has over 5 decades talked of beauty is none other than Lakmé. Launched in 1952, it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty, for this it has introduced a range of skincare products from 1987. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. With a unique blend of understanding of women of all ages, today, Lakmé is all about setting trends and dominating the fashion arena. With changing retail scenario Lakme has constantly innovated and modified its products and marketing techniques to retain its position in the competitive market. The 3 basic instances which have transformed the image of the company and have repositioned the company are discussed as follows – 1. Firstly, Lakme Launched Elle 18 in 1998, that targeted the first-time cosmetic user and currently sports two product lines comprising lipsticks and nail enamel. This brand extension targeted youth, sporty youngsters who want to be trendy at affordable prices.

“In the first three years, Elle 18 registered sharp growth rates and the purpose was to create a new segment of consumers,” said Mr. Chopra. There was

a

conscious

price

differential

between the brands to attract the first generation users of cosmetics. So, while a Lakme Lipstick would have an MRP of Rs 165, an Elle 18 Lipstick was pegged at Rs 55. The brand extension was successful and helped the company enter into new market segment and penetrate in the market. 2. Secondly, The Company started Sponsoring fashion

shows

and

introduced

Lakme

Fashion Week with an aim to integrate India into the global fashion world. This gave a good base to help company promote its products

and enhance

Because

of

increased

its brand

image.

competition

and

constant need for innovation, The Company has to develop newer methods and ways to reposition its products and enter different market segments. Lakme fashion week being a success helped company attain new heights and improve its image in the minds of its customers. 3. Thirdly, The Company recently inaugurated its new salon named as ‘Lakme Beauty Salon’ to extend its service line and enter new market. As people want efficient services at affordable prices, along with good experiences, trendy ambience and well –trained staff, it became easy for the company to enter into this service sector to expand its business all across the country.

Thus,

these

marketing

innovative

efforts

have

ideas

and

helped

the

company respond successfully to the changes in retail trends and have helped company grow by entering into various

marketing

company

realized

the

segments. importance

The of

customer needs and changing behavioral patterns and has made optimum use of the opportunity to maximize profits and acquire a distinct image in the minds of its customers.