LAKMÉ ABSOLUTEBRAND EXTENSION REVIEW

- PGP30230

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer

Goods Company with a heritage of over 80 years in India

16 HUL brands feature in India’s

Most Trusted Brands, 2014

10 HUL brands feature in BrandZ

Top 50 Most Valuable Indian

Brands 2014

Reference: HUL Annual Report 2014-15

Hindustan Unilever - Financials

Reference: HUL Annual Report 2014-15

Brand VisionLakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality, thus, enabling her to realize the potency of her

beauty.

Brand Share19.5

20

20.5

21

21.5

22

22.5

23

2009; 20.62010; 21

2011; 21.72012; 22

2013; 22.32014; 22.6

Lakme in the Indian Cosmetics Market

Lakmé23%

Gemey/Maybelline/Jade11%

Revlon9%

Elle 187%

Oriflame6%

Others45%

Competitive Landscape in Indian Cosmetics

2009 2010 2011 2012 2013 20140.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

50,000.00

Indian Cosmetics INR Mn

Over 200% growth in the last 5 yearsCurrent Market Estimates of INR 44,000 Mn

Reference: GMID Euromonitor

Lakmé Absolute

Recent launch in 2014 of a more premium cosmetics and skincare

line

In addition to existing lines such as ‘9 to 5’ targeted at working women, or ‘Classic’, for the everyday woman

Closest competitor in terms of segment would be L’Oreal, Revlon

and Max Factor

Reference: Lakme India, lakmeindia.com

Reference: Lakme India, lakmeindia.com

Face• Foundations - 4• Concealers - 2• Highlighters/Bronzers• Blushers - 2• Remover

Eyes• Shadow - 4• Liner - 5• Mascara – 2

Lips• Liner - 1• Gloss - 2• Lip color - 4• Tint - 1

Nails • Nail Color – 4

Absolute White Intense

Absolute Face Stylist PRODUCT MIX

Reference: Lakme India, lakmeindia.com

PRICEAt a higher price point than the Lakme Classics and Lakme 9 – 5 range

At a comparable price point with relevant competitors such as Revlon, L’Oreal, Colorbar; at a lower price point than luxury brands such as Inglot, Dior, Elizabeth Arden

Prices vary between INR 700 – 1200 for about a 30 ml SKU

PLACETraditional

Retail Channels

Larger Pharmacies

Standalone stores

Organized Retail

Department stores

Health & beauty chains

E-Commerce

General purpose

marketplaces

E-commerce focused on health and

beauty

PROMOTION

•Magazines – Elle, Vogue, Femina

•Newspapers – Metro supplements

•30 sec primetime spots on channels

Print/ TV•Facebook – I

Love Lakme has 2.4m followers

•Twitter – @ILoveLakme has 33.9K followers

•YouTube – Lakme India has 37.9 subscribers

•Be Beautiful (sponsored by Lakme) – 74K followers

•Targeted 15-30sec advertisements on select channels

Digital

•In-store displays and counters

•Frequent discounts on e-commerce platforms

•Sampling and try-outs

•Product Placement and tie-ups with movies and fashion shows

Trade

Lakme Youtube Spot

Market Segmentation

Demographic

•Women, 18-40 years

•Upper Middle/ Upper Class

•High Discretionary Spend

Behaviour

al

•Users of cosmetics who want to indulge themselves

•Occasion based – bridal, important events where you need to be fashionable

Geographi

c

•Focus on Tier I and II cities

Target consumer

Price

Skin Care Benefit

High

High Points of Parity

• High quality• Long-lasting• Suitable for Indian skin tones and skin types

Points of Difference• Hydration formulas• High fashion lines (used at LFW) at

reasonable price points