Marketing management

History of Cosmetics
Few cultures valued beauty and cosmetic products in ancient times as the Egyptians did. The history
of ancient cosmetics can also be traced back to the culture of ancient Greece and make-up was also
popular in the Roman Empire. There is sufficient evidence to suggest that people from all these
three cultures used hair dyes for instance. These people used herbal concoctions with components
like henna, sage and chamomile to darken their hair. It was only in the renaissance period that blond
hair became fashionable.

In other cultures like that of China, fingernail painting was popular in ancient times. Ancient Chinese
people used a mixture of gum arabic, egg whites, gelatin and beeswax to make the first forms of nail
varnish and royalty preferred to use metallic or bright colors of nail varnish at that time. People from
lower ranks were restricted to the use of paler nail varnish colors, and this trend of discrimination
using nail varnish was also visible in ancient Egypt.

Although cosmetic products have undergone many changes in modern times, the basic concept of
using cosmetics to enhance the features of good health has not changed. For instance, blush-on is
used to conceal pale present a picture of rosy cheeks as opposed to pale skin and nail polish can be
used to conceal brittle or dry nails. The history of makeup cosmetics however is tarnished by the ill-
effects that were often experienced after applying many ancient make-up products. This was
because many such products were created using dangerous components and also because cleansing
lotions are not anywhere to be found in the early history of cosmetics.

The history of the cosmetics industry includes very dark chapters in European and Western countries
from about six centuries back. Mixtures and pastes were then used to whiten the face, a practice
which remained popular till over four hundred years later. The early mixtures that were used in
Europe for this purpose were so potent that they often led to paralysis, strokes or death. In that era,
another method that was employed to make the skin appear fairer was to bleed oneself using
leeches.

Up to the late nineteenth century, women in Western countries may have secretly worn make-up
made from mixtures of household products, as make-up was then deemed the domain of film stars.
Cosmetics were only openly put up for sale in the early part of the twentieth century for the first
time. Tanned or darker skin tones became popular only as late as the early twentieth century. It was
in this era that tanning the skin became a popular fad.

The history of cosmetics in the 1930s and 1940s shows how the fashion or trend with respect to
lipstick colors was changed annually, getting darker and closer to red every passing year. It was
around this time that eyebrow shaping also became popular. However, the true surge in make-up
sales occurred at the end of the Second World War when people were celebrating the return of their
loved ones.
India and Cosmetic industry
The Indian cosmetic Industry has witnessed rapid growth over the last couple of decades. In that
time the range of cosmetic and beauty products in India has widened tremendously. Beauty
products manufacturers in India mostly cater to the great demand for cosmetics and toiletries that
fall into the low or medium-price categories as the greatest demand in India has always been for
these economically priced products.

However, in recent years in the cosmetics market India competitors have begun to manufacture
products to cater to an International need. For instance, herbal cosmetics from India have a great
demand in the overseas market and many cosmetic products that are manufactured in India today
are supplied to international suppliers of branded cosmetics products like The Body Shop for
example. New facts that have been unveiled by a series of cosmetics business market analysis India
reveal that many International companies are now outsourcing cosmetics to India and that the
industry of cosmetic products India is growing at an average rate of almost twenty percent annually.
This increase is attributed to two main factors. The first being the increase for the demand in Indian
cost-effective products and the second being the increased purchasing power of the average Indian.

There are also many reasons for the increased demand for cosmetic products in particular. With the
introduction of satellite television and a wide array of television channels as well as the Internet, the
average Indian consumer is constantly bombarded with advertisements and information on new
cosmetic products which often translates into the desire to purchase them. A boom in the Indian
fashion industry has also been linked to the increased awareness of Indian people about their
appearances and consequently contributed to an increase in the demand for cosmetic products.

However, even with the massive surge in the popularity of cosmetic products, statistics have shown
that the average Indian consumer spends much less on cosmetic products than consumers from
every other part of the world. This means that the Indian cosmetic industry has an even greater
potential for growth than it is presently experiencing.

In the entire range of products that fall within the territory of the Indian cosmetic and toiletries
market, the most popular items are color cosmetics, of which nail varnish, lipsticks and lip glosses
account for the most sales. In this area, popular local brand names include Lakme and Revlon. Skin-
care cosmetics have experienced a slower growth and products such as anti-wrinkle creams,
cleansers and toners, for instance are not as popular as facial creams, moisturizers and fairness
creams in this genre. Companies like Ponds and Fair and Lovely rule the roost in this segment.

Unilever and Procter & Gamble are major players in the Indian cosmetic sector of shampoos and hair
products. However, the Indian hair-care cosmetic sector now has a few foreign brands to compete
with these giants as well. Finally, one of the most popular cosmetic produced in India are herbal
cosmetics which have gained popularity internationally in recent years. Shahnaz Husain, Emami and
Boutique products are the most well-known in this area.
Primarily marketed products in cosmetic industry

Goods: goods are generally marketed in cosmetic industry. Lipsticks, Nail Enamels, Eye and
Face Make-up, Shampoos, Conditioners, Cologne, Body Sprays, Talc and Fire and Ice
cologne.eyeliner, various beauty lotions, lipsticks, perfumes etc..

Services: cosmetic industry even markets services in the form of various beauty salons. Eg. Kaya kalp
skin center, VLCC, lakme runs their own beauty centers.

Events: various events are marketed in cosmetic industry. E.g. Lakme fashion week is conducted 2
times in a year. Once in Delhi and once in Mumbai. Pond’s femina Miss India is a grand event is
conducted every year by ponds. Avon Foundation is an event conducted by Avon company for breast
cancer every year at April 4-5

Experience: shehnaz Hussain is marketing her experience in the form of product “fair-one”. e.g.
ponds claims to provide an experience of baby soft skin for every woman in the advertisement of
ponds “Googly Woogly bush”

Person: Javed habib is marketed heavily in the cosmetic industry.

Places:

Organizations: organizations in cosmetic industry market themselves with their effective tag lines.
Eg. Garnier : Apna Khayal rakhna Lo’real : you are worth it.

Information: Through different sources such as beauty magazines, fitness magazines, newspapers.

Sometimes the information of newly launched product is marketed along with the already available
product. E.g. Sun silk conditioner with sunsilk shampoo.

Ideas: every market offering includes a basic idea and this exist even in cosmetic industry. E.g.
Charles Revson of Revlon observed “In the factory, we make cosmetics: in the store we sell hope”

Needs and Wants Catered in cosmetic industry:

For example we take marks on the face as a problem for any person may it be a Male or a female.

Now to fulfill these needs we have several creams in the market and we have taken the example of
fair and lovely anti-marks, No marks and ultra cleracil.

All the three creams remove marks on the face, there is also an additional feature of the fair and
lovely anti-marks and No marks is that they also gives fairness to the skin so these products satisfies
the problem and also give fairness.

These products fulfill the needs and the wants too.

Ultra cleracil removes marks only so if a person is fair he might not go for the other two, so this
shows that the persons need is fulfilled and he does not have a want for fairness.
Shifts in cosmetic industry

Value chains and networks

Core competencies
Corporate divisions and strategic business units
Mission statements
Revlon mission is to provide glamour, excitement, and innovation to
consumers through high-quality products at affordable prices. The company is
moving into an era of "transforming the beauty industry" . Revlon aims to
emerge as the dominant cosmetics and personal care firm through the twenty-
first century.

Revlon continues to focus on developing products to reach existing customers

and to attract new customer groups in both domestic and international
markets. Revlon also strive to treat employees equal, fair, honest and with
integrity. Through our mission Revlon is an internationally know manufacturer
and seller of ... Showed first 120 words of 633 Size (words) ... Continuing with
another 115 out of 633 Size (words) ...at Revlon in 1994 to recognize
employees whose accomplishments significantly impacted Revlon.

MARKETING

ØKroger and Revlon recently announced a joint promotions effort to provide

in store beauty seminars that will highlight new Revlon products and provide
makeup artists to show customers how to use them.

ØThe Revlon Report a consumer guide that includes fashion and color trend
information and new products features is distributed in 30 countries.
ØRevlon has increased advertising and consumer promotions spending by a
compounded annual growth rate of 19 percent since 1993.

ØAdvertising continues to be one of the primary areas of promotions.

ØCindy Crawford is a primary spokesperson.

Customer satisfaction
Customer relationship management
Customer behavior factor
ident
21 chapter

Suggest effective mode of entry for your players to enter in foreign market.

Oriflame

In this part of the assignment we have taken Oriflame which is a Swedish

cosmetics major Oriflame is set to launch a range of wellness products like protein shakes in
India this year to cater to high-income groups.

This kind of entry in India will be a indirect entry for

Ansouf
MUMBAI: Swedish cosmetics major Oriflame is set to launch a range of wellness products
like protein shakes in India this year to cater to
high-income groups.

"We will be launching wellness products in India this year. We will import these products
from China and Sweden initially," Oriflame Managing Director and Chief Executive Officer
Magnus Brannstrom said.

Brannstorm did not rule out the possibility of manufacturing these products in India in the
future. It would all depend upon the market response, he said.

"Wellness products have a huge potential in India. We have launched these products in
Europe and will be surprised if India does not like these health products," Brannstrom added.

Typically, wellness products contribute to 5-10 per cent of total sales in a particular market
and Brannstorm expects the Indian market to generate revenue in a similar range for
Oriflame.

Oriflame's wellness products would be cheaper than others available in the market, he
claimed, adding that the rising health awareness among Indians had prompted the company to
bring these products to the country.

Since the beginning of its journey in 1996, Oriflame has invested around USD 50 million in
India including for putting up a manufacturing plant in Noida.