PROMOTION OF THE LAKME SUNSCREEN:

Promotion of a product is a means by which firms attempt to inform, persuade, and remind consumers directly or indirectly about the product and brand they sell.

Marketing communication mix involves eight major modes of communication through which promotion of the product can be done. For lakme sunscreen the modes are as follows:

1. Advertising- Promotion of lakme sunscreen includes print and broadcast ads, packaging-outer, cinema, and posters. Advertisements portraying various actors which attracts the attention of the consumer market segment.  
2. Sales promotion- This includes contests, gifts on a purchase, coupons, rebates and discounts, sampling and demonstrations.
3. Events and experiences- Entertainment which involves fashion shows and other events under lakme fashion week etc to promote the product.
4. Public Relations and Publicity- Programs organised to promote or protect a company's image.
5. Direct Marketing - TV shopping , E-mails, websites play an important part here.
6. Interactive Marketing- Internet as a medium company has its own website to advertise its products. Website:http://www.lakmeindia.com.
7. Word-of-mouth marketing- From person-to-person, chat rooms and blogs, the product is promoted. The girls and women, if they like the product they spread or build an image in front of their friends and family members.
8. Personal Selling- Samples and face to face interaction with the purchaser for asking questions and procuring orders is a part of promotion.

Good way to promote and market skin care products would be the internet, promotional fliers, newspaper ads and home shopping parties, but your best advertising will be by way of word-of-mouth referrals.To jump-start the business, offer free skin care analysis to customers along with free samples of the natural skin care products that you sell.

Hindustan Unilever Limited (HUL) came up with various innovative ideas for the promotion of lakme sunscreen in the market. It started with a multi-media campaign, which included print, television, outdoor, and online media. With the tagline — Lakme Sunscreen Lotion: Your umbrella for beautiful skin and then sun safe hamesha  — the campaign highlights the value additions that protect the skin from the sun. 

The online campaign was the result of teamwork with agency etc.

COMMUNICATION PROCESS:

The communications process consists of nine elements: sender, receiver, message, encoding, decoding, response, feedback, and noise.

To get the messages through, marketeers must encode their messages in a way that takes into account how the target audience usually decodes messages.

STEPS IN DEVELOPMENT EFFECTIVE COMMUNICATIONS:

Identifying target audience, determining objectives, design communication, select channels, establish budget, decide on media mix, measure results and manage integrated marketing communications. 

PACKAGING:

Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages.
Private label brand is a brand that retailers and wholesalers develop.

Lakme sunscreen comes in various shapes and sizes keeping in mind the consumers likes and portability of the product. Also packaging is done in such a way which grabs the attention of the consumer mentioning all the necessary details of the product on the container.
There are sufficient number of sunscreens packed in the same color packs but the consumer is able to recognize its lakme sunscreen. And I think this is something what Lakme as a brand has achieved.

DISTRIBUTION OF THE PRODUCT-

Managing Retailing, Wholesaling, and Logistics:

Retailing:
Retailing includes all the activities in selling goods or services directly to final consumers. There are two types of retailers, the store retailers and the non-store retailers. Major types of store retailers are specialty store, department store, supermarket, convenience store, drug store, discount store, extreme value or f=hard-discount store, off-price retailer, superstore, catalog showroom.

Channels:
Retailers must decide which channels to employ to reach their customers based on target market analysis and Lakme targeted women and girls for its sunscreen . Then comes the product assortment which must match the shopping expectations of the customers such as skin damage or protection from the harmful UV rays. After the product assortment is the procurement and lastly the price.

Wholesaling: 
Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use. Wholesalers usually cover a larger trade area than retailers and like retailers, wholesalers must decide on target market, product assortment, procurement, price, promotion and place.

Market-Logistics Decisions:
The firm must make four important decisions related the order processing, warehousing, inventory, and the transportation. The best way to store and move goods and services to market destinations; to coordinate the activities of suppliers etc is done through market logistics.

Distribution places are : Hyper markets Super markets Departmental stores Other distribution places are : Food stores Cosmetic discounters Ware house clubs. Beauty salons Lakme distribution merged with HUL. HUL is having 3000 distributors around the country and lakme have 1000 distributors.

DESIGNING AND INTEGRATED MARKETING CHANNELS:

Lakme sunscreen use the pull strategy of marketing channel system. In this strategy the manufacturer uses advertising, promotion, and other forms of communication to persuade customers to demand the product. It is appropriate as there is high brand loyalty and high involvement in the category as consumers are able to perceive differences between brands and when they choose the brand before they go to the store.


Channel-Design Decisions: To design the sunscreen lakme analysed the the customer requirements and wants. Accordingly the product is designed and major channel alternatives evaluated.

Some steps are involved in analyzing customer requirement and wants are deciding the lot size, waiting and delivery time, spatial convenience, product variety and service backup.

Next comes the establishing objectives and constraints as channel objectives vary with product characteristics.

Identifying the major channel alternatives on the basis of types and number of intermediaries is the third step which involves exclusive distribution, selective distribution, and intensive distribution.
 Lakme sunscreen goes with the Selective distribution which relies on only some of the intermediaries willing to carry a particular product.

E-commerce Practices:

E-commerce uses Web site to transact or facilitate the sale of products and services online. Online retail sales have exploded in recent years. Lakme through various websites facilitate the sale of its sunscreens which is more convenient and easy for the customers as all the product related information is present there on the website.

M-Commerce Marketing Practices:

The widespread penetration of cell phones and smart phones has allowed people to connect to the internet and place online orders on the move.

PRICING: 

Price is not a just a number on a tag. It comes in various forms and performs various functions. Pricing strategy have changed significantly. Internet allows sellers to discriminate between buyers and buyers to discriminate between sellers. Companies such as Hindustan Unilever Ltd. target different customer groups with different value propositions.

Lakme sunscreen do their pricing following certain steps which are basically required for setting prices for any product are as follows:

1. Setting the Pricing objective:  Objective of the lakme sunscreen pricing is obviously maximizing profits but also by providing satisfaction through its product. Also staying in the market by stabilizing prices.

                                                                 

2. Determining demand: Price elasticity of the product is determined. The probable quantities it will sell at each possible price. 

3. Estimating costs:  Company estimates how its costs vary at different levels of accumulated production experience and for differentiated marketing offers.

4. Analyzing competitors Costs, Prices, and Offers: They usually set not a single price, but rather pricing structure that reflects variations in geographical demand and costs, order levels, purchase timings. 

5. Selecting a pricing Method: There are various methods of pricing a product. Markup pricing, target-return pricing, perceived value pricing, value pricing, going rate pricing and auction-type pricing are the methods of pricing.

6. Selecting the Final price: Lakme sunscreen finalize its price considering the competition in the market, the profits, and most importantly customers satisfaction.

PRODUCT HIERARCHY:
The product is divided into six levels or stages. It starts from:
Requirement- the basic requirement comes under it and for consumers of this product the basic requirement is protection from the harmful sun rays.
Category: All the product that satisfy a core need with reasonable effectiveness. Lakme sunscreen uses natural ingredients, gives protection and leaves skin flawless and glossy.
Sub-category: That means a certain functional coherence, for ex. financial instruments.
Brand: To which the product belongs. For ex. lakme  sunscreen
Brand variant: A group of items within a product line that share one of several possible forms of the product.
Brand variant STOCK KEEPING UNITS: A distinct unit within a brand or product line distinguishable by size,price,appearance, or some other attribute. Lakme sunscreen has been divided into many shapes and sizes (bottles), also for different types of skins.


PRODUCT SYSTEM AND MIXES-
LAKME sunscreen comes under a category of PERSONAL CARE products. 

 SETTING PRODUCT STRATEGY-

In planning its market offering,the marketer needs to address five product levels. Each product level adda more customer value and all the five constitute a customer-value hierarchy.

• Core benefit: Benefit derived after you consume that particular cream. For ex. purchase of a sunscreen is buying a protection from harmful sun rays.
• Basic product: Second comes the the turning of core benefit into basic product. Thus a lakme sunscreen containing natural ingredients.
• Expected product: Customer will expect a cream that protects skin from sun and leaves it flawless. 
• Augmented product: Exceeding customer's satisfaction by providing them with not only one but different kinds of lakme sunscreens for different skin types.
• Potential product: Search for new ways to satisfy customer and distinguish the offering. Coming up with the schemes and other new offers on the sunscreens to attract the potential customers

RELATIONSHIP OF THE CONSUMER,COMPANY AND COMPETITION IN SETTING PRODUCT STRATEGY(LAKME SUNSCREEN)

Consumer: The requirements and trend to be recognised by the marketers. The skin problems and giving a gloss to the skin and protecting the skin from the damage caused by the harmful UV rays. 

Company: It includes the skills, assets and culture. Also the expectations by the customers to be kept in mind. Using the natural ingredients and making it in all portable sizes.

Competition: Brand positioning in the market and coming out with the unique and innovative ideas. Lakme launched the sunscreens for various skin types. (oily,dry and normal) 

  

 MARKETING MIX:

Marketing was broadly classified into 4 P's, which are as follows:

1) Product –  The first thing you need, if you want to start a business, is a product. Therefore Product is also the first variable in the marketing mix. Product decisions are the first decisions you need to take before making any marketing plan. 

• What product are you selling?
• What would be the quality of your product?
• Which features are different from the market?
• What is the USP of the product?
• Whether the product will be branded as sub brand or completely new?
• What are the secondary products which can be sold along with primary (Warranty, services)

Based on these questions, several product decisions have to be made. These product decisions       will in turn affect the other variables of the marketing mix. For example – For lakme sunscreen, understanding about the quality, its features, its unique selling proposition and the design. However, if the product features are not fitting in the marketing mix, you can alter the product such that it finds a place for itself in the marketing mix.

2) Pricing – Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. The pricing has to be such that it can bear the brunt of changes for a certain period of time.

Along with the above factors, there are also other things which have to be taken in consideration when deciding on a pricing strategy. Competition can be the best example.  If the competitor (VLCC OR LOTUS) changes the price means, company have to analyze the market situation and then change the price accordingly. Pricing affects the targeting and positioning of a Lakme sunscreen by maintaining a reasonable price and noticing what its rival partners are up to!.  

3) Place –  Place refers to the distribution channel of a product. If a product is a consumer product, it needs to be available as far and wide as possible. On the other hand, if the product is a Premium consumer product, it will be available only in selected stores.

Distribution places are : Hyper markets, Super markets, Departmental stores. Other distribution places are : Food stores Cosmetic discounters, ware house clubs. Beauty salons Lakme distribution merged with HUL.  HUL is having 3000 distributors around the country and lakme have 1000 distributors.   

      

4) Promotions – Promotions are dependent a lot on the product and pricing decision. What is the budget for marketing and advertising? What stage is the product in? etc. For example lakme sunscreen used facebook(social media) as the medium for the promotional activity.Company offers rebates and discounts on specific products which products are in low sales. Brand ambassadors- Lakme have bollywood Actress as a brand ambassadors like Katrina Kaif and Kareena Kapoor 

Promotions also decide the segmentation targeting and positioning of the product. The right          kind  of promotions affect all the other three variables – the product, price and place.

Thus as we see from the above explanations, all the four variables of marketing mix are inter related and affect each other. By increasing the pricing of the product, demand of the product might lessen, and lesser distribution points might be needed for the product. 

The above four P’s of marketing give you an overall look at the product marketing mix. 

                                                                                                                                                      PRODUCT

The ´P´ is called the ‘product mix’. This applies to both physical products and services. Sometimes the product is split up into:

Physical product; the basic product. It is purely about the functional and aesthetic-AL characteristics such as dimensions, function and life.
Extensive product; the physical product with added qualities such as packaging, brand name, service and guarantee. 
Total product; the extensive product plus emotional, instrumental and expressive qualities and/or values that the consumers attach to this.   

                                                                                                            

PRODUCT LIFE CYCLE:
According to this figure, the product life cycle has 4  stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.
Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase.
Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake.
Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product.
In broader sense there is nothing like product life cycle, but there exists a INDUSTRIAL LIFE CYCLE which includes all so called Product cycles in an industry.

According to the product life-cycle concept, all products move through four life-cycle phases.

• During the introductory phase growth is slow and volume is low because of limited awareness of the product's existence.
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• Sales rise during the growth phase and profit per unit sold reaches a maximum.
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• As products reach maturity, growth in sales starts to level off. Organisations have to invest heavily to extend the life-cycle while competition becomes stronger.
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• When sales start to fall a product is said to be in decline

 Product LIFE cycle for lakme sunscreen can be :

INTRODUCTION: Start under a reknowned brand name which has already established its position in the market.
GROWTH: launched different sunscreens for various types of skins and was accepted widely.

MATURITY: increase across lakme range was the time of maturity for the product.
DECLINE: also the competition lead to the decline of sales of the product.

COMPETITION-

Competition can be understood by a 3 C model that includes Customer(choices), Competitors(direct competition), Company. Customers makes choices by evaluating the alternatives. Competitors will offer exactly the similar kind of products.
Company involves the basic product which comes from a firm, hence placed in the company.
  
Lakme has seen a lot of entrants.

Sunscreen is functionally independent, so there is little direct competition for the specific product function.

                                     Some indirect competitors include:

self tanning products

protective clothing

shelters (tents etc.)          

Sunscreen brands are beginning to cater to more specific demographics as the health care tend rises.    

Competition for lakme are sunscreens of many other brands such as Lotus,VlCC,Nivea etc. by lowering their prices or by providing discounts or by launching the product possessing same attributes as the lakme sunscreen but lakme has maintained its own position in the market which will most probably gain more and more importance in the coming future.