Page 18 - DMGT510_SERVICES_MARKETING

Unit 1: Introduction to Services Marketing

Mehendi Notes
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 Beauty
Lakme products
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Skin care
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Open seven days a week from 11 a.m. to 8 p.m. the Lakme Beauty Salon has been positioned
as “gateway to a fuller, more beautiful you”.
Expansion plans: By 2005, Lakme has plans to open 150 beauty salons to consolidate its
position in the ` 1,000 crore (` 10 billion) salon market of which a mere ` 170 crore comes
from the branded segment. The intent is to further increase market share in both categories
(cosmetics and skin care). With 60 Lakme Beauty Salons spread across 22 cities, the target
for end-2004 was to open 30-40 more salons in eight more cities.
The salon business today contributes to 15 per cent of revenues from the Lakme brand and
is expected to go up to 30 per cent over the next three years. The LBS brand is relatively
absent in the east, which was due to the recently adopted franchisee model: it got built
around the four original salons at Mumbai, Chennai, Delhi and Bangalore. Entry into
Calcutta was made in the beginning of 2005. LBS expected to grow at a rate higher than the
industry average of 13 per cent.
Education: Lakme stuck to its plans to start beauty treatment and hair styling courses in
2004 through the Lakme Beauty Academy in Mumbai, Chennai and New Delhi. The mission
of the training Academy was to provide people with skills required in the beauty business.
The courses include basic training and up gradation skills for professionals costing between
` 5,000 to ` 15,000. LBS have a requirement for at least 400 people to manage their expansion
plans. There was a dearth of skilled manpower, which the Academy sought to fill. There
are also plans to take the Academy to major metros. “Beauticians trained by the academy
will get absorbed both in Lakme Beauty Salons and in the industry in general,” a Lever
spokesman says, explaining: “The future growth of the industry will require more trained
beauticians.”

Business generation: Lakme Beauty Salons have a fairly vast spread presence across SEC A
and B cities: Delhi, Chandigarh, Jalandhar, Ludhiana and Amritsar in the North; Mumbai,
Goa and Aurangabad in the West; and in the South, in Bangalore, Chennai, Mysore,
Managalore and Coimbatore. Lakme was the first corporate house to enter the salon
business in the country. The concept of salons has been to a great extent redefined since
Lakme Beauty Salons were introduced.
Promotions, in-store activities: LBS have striven to make its in-store promotions
innovative and personality-driven:
Special tips and advice by India’s ace make-up artist Cory Walia.
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Basing the noted hair trichologist Dr. Rita Khatwani at Lakme Beauty Salon, Churchgate,
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to make her available for consultancies.
Workshops with hair expert Samantha Kochhar introducing the look of the year at
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the Lakme Beauty Salon, in New Delhi, along with Lakme Image Consultant Malvika
Tiwari and Sunsilk Hair. The workshop was a part of the promotion that leading
shampoo brands Sunsilk, Clinic Plus and Clinic All Clear have initiated across the
country where the consumers can avail of professional hair advice at an affordable
price.

Contd...

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