11 - Sales management and consumer behaviour

Sales at Lakme does not follow a funnel structure.

Sales promotion - leads to incentive for action

·         Advertisement - least credible

·         Word of mouth - most credible

For Lakme, promotion can be:

·         Selective: Products promoted at malls, Health & Glow outlets, select online sites

·         Intensive: Products promoted at small stores (better distribution)

At Lakme - Informative & Reminder Advertising is required to let people know about product, to buy it.

Howard Sheth model of consumer behaviour:

1.       Motives - Even skin tone

2.       Brand comprehension - Safe cosmetic; suits Indian skin

3.       Attitude - Price-sensitive customers

4.       Confidence - No 1 cosmetic in India

5.       Intention - Skin should appear non-oily

6.       Symbolic - emotional - Kareena wears Lakme Absolute range in 'Heroine' movie

7.       Stimulus ambiguity - If consumer's are unsure if cosmetic will suit them, look up blogs of opinion leaders --> leading to  overt search.

8.       For a cosmetic category, people have in memory - choice criteria & brand comprehension.

·         Choice criteria - Take feedback from family, reference groups and social class.

·         Brand comprehension - After using the cosmetic to the finish over a period of time, consumers will have an opinion and will know if they want to repurchase/ switch brands.