1.

Introduction

The global salon services market size was valued at USD 201.92 billion in 2021. The market is projected
to grow from USD 215.65 billion in 2022 to USD 355.45 billion by 2029, exhibiting a CAGR of 7.4% during
the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with salon
services experiencing lower-than- anticipated demand across all regions compared to pre-pandemic
levels. Based on our industry analysis, the global market exhibited a decline of 21.25% in 2020 as
compared to 2019.

Salon services encompass all those practices performed in a salon, ranging from shaping, polishing, and
cutting the nails to eyebrow threading, skin treatment, and hair cutting. Growing consumer awareness
regarding the availability of personal care services, such as massages, facials, hairdressing, and nail
enhancing & nail art, beyond the traditional barber hair-cutting services, favor market growth.
Hairdressing parlors worldwide are increasingly utilizing sustainable and scented hair shampoos &
massaging oils to enhance the consumer experience. For instance, Sport Clips, a US- based hair salon,
use steamed towels, massaging shampoos, and custom-blended proprietary scents while offering neck
& shoulder treatments and hair-cutting services. The rising need for salons to innovate their service
offerings will positively influence market growth over the forecast timeframe.
2.About Lakme

At

Lakmé Salon, with over 35 years of experience, and a footprint of over 400+ Lakmé Salons in 125 cities
across the length and breadth of the country, we have developed a deep understanding of the beauty
industry, its professionals and the skills needed to make a mark. More than 280 entrepreneurs have
partnered with Lakmé Lever as franchisees to own and operate Lakmé Salons across the country. We
launched Lakmé 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, Lakmé Lever formalized a strategic alliance with Aptech – a global leader in vocational
training to set up 80 Lakmé beauty academies to train 50,000 stylists across India, over five years. Lakmé
Academy powered by Aptech, offers both foundation and advanced level training in skin, hair and make-
up.

Lakmé Salon, India’s first and leading chain of beauty salons, offers expert services in hairstyling, skin
and beauty care. It is dedicated to the contemporary Indian woman’s exploration of the fine art of
beauty. Known for our magical concoction of stunning make-up, fabulous hair and excellent skin
services, we bring the backstage expertise and experience of Lakmé Fashion Week to modern Indian
women through a team of over 3500+ highly trained professional stylists. Lakmé Salons are dedicated
towards the evolvement of the modern Indian woman and her exploration of beauty. Professionally
trained hair and makeup experts with countless shows under our belt and outstanding skin services
come together at Lakmé Salon and offer an unforgettable experience.
3.7P’s of Lakme Salon

1. Product:
In case of services, the ‘product’ is intangible, heterogeneous and perishable. Moreover, its
production and consumption are inseparable. Hence, there is scope for customizing the offering
as per customer requirements and the actual customer encounter therefore assumes particular
significance. However, too much customization would compromise the standard delivery of the
service and adversely affect its quality. Hence particular care has to be taken in designing the
service offering. Moisturizer, Sun Expert, Face Wash, Gloss/Mattifying Lotion, Radiance Crème,
Various kinds of serum for face, Face Mask, Face scrub, CC Cream, Range of Makeup products –
Absolute, 9 to 5, Classics & Many more.

2. Price:
The price in this business is a huge factor, because the competitors will always try to give a
lower price. Lower price is always an advertisement itself. Many services could be combined
together and offered at a lower price. However, it is an effective tool to draw the attention of
people. Lakme Salons have wide price range according to the various services they provide to
the customers. E.g Hair Care, Haircuts and various specialized services like bleaching, waxing etc.

3. Promotion:
This is focused on the methods used to make the people aware and interested about the
services provided by the hair salon. The customers coming to a hair salon are usually, the people
living nearby the location of the hair salon. The objective of the promotion in the initial stage
would be to educate the people, about the services of the hair salon to the residents of the area
where the hair salon is situated. Promotion of Lakme Salon includes: Electronic/Print Media
Word of Mouth Sponsorship (Lakme Fashion Week) Lakme dedicated outlets.

4. Place:
The location should be given the highest priority when marketing a hair salon, because it helps
to decide the market targets and the price. The location would be best if it is a residential area,
with a few schools, colleges, offices nearby, for publicity. The residential area would always be a
best option because most people get a haircut in the hair salons which are near to their house.
Dhanmondi would be the best option because it fits all the criteria. Though it has many hair
salons, the separate styling section is missing in most of the hair salons in Dhanmondi and that
gives ‘The Cut Above’ a competitive edge. People are often reluctant to style their hair in the
same section where they had finished getting the haircut, because they are uncomfortable with
the scraps of hair flying around in the haircutting section. Place Located in areas like women
working areas, commercialized areas, malls, posh areas. E.g.- Hazratganj in Lucknow, Banjara
Hills and Madhapur in Hyderabad, South City Mall in Kolkata etc.

5. Processes:
Processes are ‘the efficiency of the process in the delivery of the service.’ The customer
satisfaction is determined by the processes of the service and this can be a vital issue. Job shop
 operations. People processing like hairdressing, facials etc. Mental stimulus processing through
magazines Vogue, Femina, Cosmopolitan etc.

• Hygiene and safety: The equipment’s used for the service should be sterilized before use,
they should be changed after every month and the hair salon must be kept clean all the
time.
• Quality of the Haircut: Haircutting and shave should always take time, the need of the
customer should be analyzed by the employee and the work should be done perfectly, so
that the customer is satisfied with the haircut. People are often irritated when they have to
wait, but since the focus is more on customer satisfaction, if the customer receives a
satisfactory haircut, he will recommend the hair salon to his acquaintances. If the work is
good, then customers will wait if they have to, to get that service.

6. People:
Service is a two-way process; the output also depends on the cooperation of the customer. The
employees should be well trained and experienced to identify the needs of the customer. They
should also have the ability to make suggestions to the customers, and hence they need to be
updated every day about new hairstyles. They should also analyze the mood of the customer
and not make too many suggestions and ask for feedback after cutting one area. They should
also be very friendly and talk to the customer and try to become close to them, but at the same
time also concentrate on their work and the mood of the customer because some customers
prefer a quiet environment.
• Service Personnel -- Professionals like Cory Walia
• Bridal expert -- Sudhir Grover
• Hair Care Expert -- Sushma Khan
• Customers -- Brand ambassador - Kareena Kapoor It has a huge loyal customer base because
of the kind of service they provide to the customers.

7. Physical Evidence:
Physical evidence is ‘the service firms attempt to give some form of tangibility.’ This can include
the interior and exterior decoration, the uniform of the staff, the receipt they receive after the
payment and the brand name for the hair salon.
 Peripheral Evidence: Lakme Salons provides gift vouchers to its regular customers and also
provides loyalty cards.
 Essential Evidence: All Lakme Salons are maintained with a unique and soothing ambience
(music, interiors, magazines etc.) which gives a unique experience to the customers with
high satisfaction levels.
4.SWOT Analysis

SWOT Analysis of Lakme focuses on Strength, Weaknesses, Opportunities, and Threats. Strengths and
Weaknesses are internal factors and Opportunities and Threats are external factors. Lakme is one of the
world’s leading brands of cosmetics from the Hindustan Unilever group. Interestingly, Lakme was named
after the French opera, Lakme being another form of the Lakshmi goddess, better known for her wealthy
blessings. At least in India, Lakme is an Old and well-known brand and was launched in 1952.

 Strengths in the SWOT Analysis of Lakme – Lakme SWOT Analysis

• Brand Awareness: Lakme is a popular brand in the beauty and cosmetics industries. The organization
was made conscious of its high profile by aiming at beauty salons and even sponsoring modeling
shows and solid promotions.
• Fantastic line of products: Lakme adds to the attractiveness of women by providing a fantastic line
with impressive product depth. Lakme is now well-known for introducing a collection of
groundbreaking cosmetics that are exclusively known to women’s cosmetics.
• A large-scale parent company delivery system: HUL is the parent company that bought it from TATA
Group. As HUL is already an established FMCG brand, it uses a wide channel for selling the products
of Lakme on the market. It also uses unorthodox delivery mechanisms as well as traditional
networks to allow pharmacists, beauty salons, and showrooms to sell the products.
• Promotion: Lakme is ideally placed in the minds of potential customers, with the goal of appropriate
celebrities representing their company.
• Strong Parent Company: HUL is a proven member of the FMCG industry, which is well-known for its
group labels and has a stable financial role.

 Weaknesses in the SWOT Analysis of Lakme – Lakme SWOT Analysis

• Small presence in the premium market: Lakme is famous because it is a value for money brand.
Lakme is the market leader for Color Cosmetics with a wide variety of products and prices, but
Revlon is the dominant player for premium items that grow at 30%.
• Differentiation problem: the wide variety of goods can also cause uncertainty in consumers ‘minds.
Certain goods are well recognized, but others are overlooked because they do not have any
differentiation.
• Lakme Salons Quality: the loss in quality in Lakme Salons leads to negative word of mouth that can
impact the company’s sales and development in the future.

 Opportunities in the SWOT Analysis of Lakme – Lakme SWOT Analysis

• Changing the way life has been: The relocation of people and the saturation of industrialized
economies, the shift in taste, and tastes have resulted in development in the rising segment of the
emerging economies. They want to look sharp, intelligent, and optimistic now.
• Growing premium segment: demand for premium segment products is growing, to which the
cleaning industry is no exception. With the rising demand for Lakme, it will allow it to become a
pioneer in the toilet industry as it expands its presence in this market.
• Creating development plans together: creating more inclusive & participatory group events would
allow the organization to develop a brand image and co-create growth opportunities.
 Threats in the SWOT Analysis of Lakme – Lakme SWOT Analysis
• Competition: the main challenge to participants in the sector impacting the market as a whole is the
intensive competition between state, national, and foreign actors on price and availability factors.
• Fake Products: Bogus products impact the company’s market value directly.
• International brands expanding through other countries: International brands such as Revlon with
hundreds of household brands will impact Lakme’s business in selected markets or minimize its
growth rate.
• Increasing cases of allergies: due to dietary changes, the skin becomes more vulnerable because of
the possibility of sacrificing the sale of companies in the personal care sector for allergic reasons.
5.Tangibility Spectrum
6.Business Model Canvas
7.Service Blueprint
8.GAP Model
9.Servqual Model
10.Competitor Analysis
11.Service Quality Problem
12.Demand Analysis
13.Inventory Management & Waiting Management
14.Market Mapping
15.Market Sizing
16.Company Strategies and Customer Loyalty
17.Service Guarantees Offered
18.Customer Expectations
19.Company Communication
20.Strategies to reach Profitability
21.Service Customer Satisfaction Index
22.Conclusion
23.Referance