Marketing of Services

Group-1

Lakme Salon Anshu Jyoti- PGP/22/009

Roni Dui- PGP/22/043
Barkha Gupta- PGP/22/330
Ankita Singh-PGP/22/330
Kinjal Srivastava- PGP/22/412
 Introduction
• Lakme Salon started its operation in India from 1983
• Footprint of over 400+ Lakme Salons in 125 cities across
the country
• More than 280 entrepreneurs have partnered with Lakme
Lever as franchisees to own and operate Lakme Salons
across the country
• It launched its Absolute salon in 2012, which offers
bespoke services defining the ultimate facets of hair and
beauty
• The state-of-the-art salon is currently present in the 3
cities- Delhi, Bengaluru and Mumbai.
• In 2015, Lakme Lever formalised a strategic alliance with
Aptech – a global leader in vocational training to set up 80
Lakme beauty academies to train 50,000 stylists across
India, over five years.
• Lakme Academy powered by Aptech, offers both
foundation and advanced level training in skin, hair and
make-up.
 OBJECTIVES METHODOLOGY

Understanding the competitive landscape of Lakme In-depth interview with

various stakeholders

Concept of self-service in luxury salons Use of basic marketing

tools to analysis the service
sphere of Lakme
How personalized experience, convenience, and time of operations
influences positioning Primary and Secondary
research with marketing
framework and analysis
Drivers behind the shift from service economy to experience economy
 COMPETITIVE LANDSCAPE
High Service Level
POSITIONING

Highly premium brand, Professional

makeover with Swedish Luxury Salon
experience. Confident Personality is key

Premium and everyday innovation with the

help of Professionals targeted towards both
men and women. Collaboration with latest
fashion shows and trends
Economical Price Premium Price
Targeted towards independent women who
are modernised and well educated but has
strong Indian cultural values with strong
opinion for natural and herbal beauty

Cheapest in terms of both pricing as well the

ambient but positioned as a best hair
experiments at best pricing

Low Service Level

 Introducing the Self-Service: Next Wave
A practice of serving oneself, usually when making purchases.

 Automatic snacks and beverages vending machine  Help in reducing the staff cost
 Increases time spend by the customer in the parlour,  Customer is able to help herself anytime she wants
in turn generating more revenue to us. the drink.
 Introducing the Self-Service: Next Wave
Long term strategies

 Automatic nail paint colouring machine  offers customers the chance to see themselves in over
 Staff need not to help customer in buying display nail 2,000 different hairstyles and colors
paints and can be used in the service as well.  You need to pay extra for keeping an expert to explain
LAKME : FLOWER OF SERVICES

Baggage
Service

Complimentary Special rooms:

Drinks Baby Care

Hair Care,
Manicure,
Pedicure and
Facial

Magazines Music

Fashion Tips
 Methodology; Pain Points; Insights

We conducted 25 interviews to get insight about the consumer pain

points for salon services and scope of improvement, hence to increase
customer experience and convivence.

Pain Points Insights

• Unavailability of all the listed • Fear and anxiety of the customers
services regarding quality of product
• Location • Qualification of beauty expert
• Price • Customers give importance to
ambiance of the salon in case of
luxury salon.
How various factors effect brand position?
How personalized experience influences brand positioning?
• Personalization drives impulse purchases: 49% of customers bought
services they did not intend to buy due to a personalized
recommendation from the salon.
• Personalization leads to increased revenue: This is the big win for the
salon willing to make an effort to personalize the customer’s
experience. 40% of interviewed consumers say they have purchased
something more expensive than they planned to because of
personalized service.
• Personalization leads to loyalty: This is the “Holy Grail” of
personalization. 44 % of consumers say they will likely repeat after a
personalized shopping experience.
 How convenience influences brand positioning?
• Location and distance of salon from
the customer location also play a
major role in effecting brand
positioning. Closer the salon, more
the customer will prefer going to the
salon for basic services like threading
and waxing. For premium services
location does not play a major role.
• Another convenience factor will be
availability of quality of equipment
used by the salon. Better the quality
better the brand positioning in terms
of convenience
 How time of operations influences brand positioning?

• Customers don’t want bells and

whistles; they just want a good
product at the lowest possible
price and services which are
delivered as soon as possible
• Any company should focus on
operational excellence so they
can continually offer the lower
price in the market as compared
to their competitor.
 Service Triangle Model of Lakme salon

Lakme Salon

Internal
Marketing External
Marketing

Professionals Customers

Interactive
Marketing
 Lakme Salon - Passive Immersion

• Soothing ambience to give unique experience

to the customers and high satisfaction levels
• Visually appealing facilities and neat
appearance of employees
• Greets and asks for tea/coffee
• Catalogue is given to glance through different
choices of services
• Keeping customers informed about when the
services will be provided
• Knowledgeable staff to answer customer
questions
Five Experience Design Principles in LAKME
Theme the Experience-
Grey and Magenta Colored
theme, Music playing in
background

Engage all five senses – Harmonize expressions

applications of with positive cues –
lotions/serum after Remember services
washing and conditioning chosen by each customer
of hair to add more tactile
sensations

Mix in Memorabilia- Eliminate negative

Mental stimulus cues – Maintenance of
processing through error- free record,
magazines prompt services