Lakme PESTLE Analysis

Published by MBA Skool Team, Last Updated: March 01, 2020

PESTLE Analysis of Lakme analyses the brand on its business tactics. Lakme PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Lakme, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Lakme PESTLE Analysis:

Political Factors:

The political factors in the Lakme PESTLE Analysis can be explained as follows:

Starting Lakme, was itself Prime minister Nehru’s idea in 1952 who was concerned with ladies giving away valuable foreign exchange for buying cosmetics from West. Since its inception there has been rumours of discontent with regards to much touted fashion week. Designers have used Lakme fashion week for various political protests many times be it violent events taking place in India due to Hindu Muslims conflict, censorship on designers by government. Also, when in Gujarat one of the designers depicted a politician wrongly through a Fashion week. A movie star was arrested for rude gestures during a fashion week show.


Image: company website


Economic Factors:

Below are the economic factors in the PESTLE Analysis of Lakme:

The beauty industry is quite resistant to economic recession. Indian cosmetic was 250billion Indian rupees in 2011 and was expected to grow by 18percent due to increase in purchasing power, higher literacy rate and increasing awareness for fashion. Lakme is the market leader with a good share of 18percent and expected to grow. Marketers have developed a segment of men in this category by showing them over and over that their skin needs protection. There are multiple reasons for the constant growth of Lakme. Some are high brand awareness as Lakme is a well-known brand in cosmetic & beauty industry. It has a fantastic product line, which has an amazing depth of products. Moreover, the parent company HUL is a well-known FMCG company with a strong financial strength


Social Factors:

Following are the social factors impacting Lakme PESTLE Analysis:

Lakme is having Bollywood actresses as their brand ambassadors. Manish Malhotra, India’s star designer. known for wedding collections raised and promoted issues of gender equality and voice against any kind of domestic violence in Lakme fashion week. This has made the picture of a brand which is liberal and social, present day and tasteful. This stage has likewise taken an interest in get-togethers and causes like fund-raising through Fashion week for flood exploited people and psychological oppressor assault unfortunate casualties. Similarly as originators were utilizing Lakme Fashion Week as a stage to speak loudly on political issues they do likewise for some social issues as well. India's star architect, known for his wedding accumulations, advanced gender equity and raised his voice against any sort of abusive behavior at home dependent on gender separation.


Technological Factors:

The technological factors in the PESTLE Analysis of Lakme are mentioned below:

While Lakme, part of HUL recently inaugurated bigger facility in Bangalore. This was their new R&D was based in Mumbai. Lakme is the class head and this classification requests high volume of R&D. consistently new hues get I pattern and old hues become out of style, organizations need to keep up and even remain in front of patterns. In skincare clients request high research driven items which are a superior answer for their needs and issues, so as to keep up its administration position Lakme has presented its Radiance extend. The innovation mixes with the skin cells and shields the skin from any ham like tanning, staining, pimples, skin break out and so forth. So, also in haircare fragment it has created cutting edge innovation through which clients will get excellent lively hues without harming wellbeing of hair. Lakme comprehends the measure of research which is required by it being the business chief.


Legal Factors:

Following are the legal factors in the Lakme PESTLE Analysis:

Lakme is a public limited company thereafter it has to follow rules regarding disclosure of true financial statements depicting the correct picture of the company to shareholders and also informing them about any major investment decisions that company might undertake, it has to follow laws regarding their products— cosmetics. Lakme is in sensitive business, their products get in direct skin contact with customers. Any fault on their part can lead to suit & defamation, loss of customers and revenue and therefore they have to be highly careful in whatever new products they are launching.


Environmental Factors:

In the Lakme PESTLE Analysis, the environmental elements affecting its business are as below:

Lakme help protect the planet and improve the lives of those who may come into contact with Lakme’s business and products. Their business strategy is based on two key aspects: ethical consumerism and environmental protection. Their research helps them develop products according to the protocols established under ISO 22716 Good manufacturing practices on Cosmetics. As the mindfulness and requirement for beauty care products are expanding, the skin issues answered to specialists are additionally on the ascent. Regardless of how glossy this classification is there are sure reactions joined to the day by day and unreasonable utilization of beautifying agents, similar to staining of lips and eyelids, uneven skin tone and so forth ladies utilizing lipsticks would be in taking minerals over their necessary range. In India utilization of Mercury in beautifying agents is precluded aside from eye care items however when tried, decency creams were found to have a perilously elevated level of Mercury in them; Lakme Perfection Radiance was among them. Lakme representative later explained that they don't utilize Mercury in any corrective items, anyway nearness of Mercury may be a result of its common event and air and follows can be consumed by the items when presented to air.

To conclude, the above Lakme PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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