Set in India, this case study examines how two leading beauty brands – Lakmé, a domestic brand acquired by Unilever, and Maybelline, owned by L’Oréal – leveraged AI technology in the fast-growing Indian beauty market. The case explores the strategic tension between globalization and localization, highlighting the pivotal role of AI in operationalizing these competing approaches. Maybelline targeted India’s young, trend-conscious demographic by integrating AI-powered tools such as virtual beauty studios, augmented reality filters, and AI avatars. In contrast, Lakmé focused on personalized beauty solutions designed for Indian skin tones and preferences. Lakmé adopted AI more slowly, using it primarily to enhance the customer experience with features like skin analysis and virtual makeup try-ons. As AI continues to influence consumer behaviour, Lakmé’s and Maybelline’s contrasting approaches highlight the importance of balancing innovation with local relevance. This raises the question of whether Lakmé should accelerate its AI adoption to remain competitive.

• Identify the key features of AI technologies used in the beauty industry.
• Explain how AI is transforming consumer behaviour globally and in specific markets, such as India.
• Understand key frameworks: Digital marketing and AI-focused analysis: STP and the AIDA marketing funnel; Globalization versus localization analysis: the STP, the 4Ps/7Ps, and the Adapt-Stand frameworks.
• Apply selected frameworks (STP, 4Ps/7Ps, marketing funnel, and Adapt-Stand) to analyze and compare Lakmé’s and Maybelline’s respective strategic approaches to the Indian market.
• Critically assess the impact of Lakmé’s slower adoption of AI on its competitiveness.
• Recommend appropriate degrees of marketing standardization and adaptation for Maybelline and Lakmé, based on their respective target segments.