ExcerptsOriflame India Pvt. Ltd. (Oriflame) Swedish cosmetics major Oriflame Cosmetics entered the Indian market towards the end of 1996 and was credited with introducing the concept of multi-level marketing in India. Oriflame products were sold through a direct selling system where company distributors sold to people they knew as opposed to random door-to-door sales... Avon Beauty Products India Pvt. Ltd. (Avon) The mission statement of Avon emphasizes the company's aim to be the best at understanding and satisfying the product, service and self-fulfillment needs of women globally... Tupperware India (Tupperware) The Tupperware Company entered India in November 1996. It started its operations from New Delhi. It appointed 15 distributors in the first 12 months itself. The company achieved this by directly recruiting candidates and training them, through a specially designed 14-week training program in Delhi and Mumbai... Modicare Ltd. (Modicare) Modicare was created in 1995 as the largest and the only Indian MLM company in the country. Operations started in March 1996 with a portfolio of 12 products and 300 distributors... Hindustan Lever Network (HLN) A dominant player and market leader in the fast moving consumer goods segment, HLL forayed into direct marketing in 1999 with a premium brand of personal care products for women, with women acting as consultants. Aviance, the brand name under which the products were sold, was limited in its domain and scope of operation. It offered customized beauty solution and a range of cosmetic and skin care products to its consumers... Case Details: Price: Case Code Case Length Period Pub Date Teaching Note Organization Industry Countries Abstract: : MKTG093 : 30 Pages : 1996-2004 : 2004 : Not Available : Hindustan Lever India Ltd. (HLL) : Retail : India For delivery in electronic format: Rs. 700; For delivery through courier (within India): Rs. 700 + Rs. 25 for Shipping & Handling Charges Themes NULL The case discusses in length the structure, product portfolio, compensation plans and pricing strategies adopted by Hindustan Lever Network. In this respect, it also aims to draw comparisons with other Multi Level Marketing brands to study the positioning of HLL vis-a-vis its competitors. The important conclusion that can be drawn that the success of HLN in network marketing will depend on how it manages the various aspects of this distribution segment which is unchartered territory for it. Issues: • Indian Direct Marketing Industry, Multilevel marketing, Discuss the structure, model, strategies and marketing policies adopted by HLL vis-a-vis its competitors. HLL Joins the Direct Marketing Bandwagon Ms. Garg shopped for her household items like shampoos and cosmetics in the cluttered shops in her suburban locality in Mumbai. personal hygiene and home care products in the country. HLL is India's largest consumer goods company and the leader in beauty.The salesperson in this case. 29-year-old Priti Loyalka went on to become the highest achiever and the first consultant president of HLN. it laid the foundation for HLN which was launched on January 27. . Ms. Among other things. the salesperson dipped a litmus paper in a facial cleanser to show its mildness and provided expert advice on a range of beauty and hygiene related queries from alpha hydroxy5 creams to nail polishes. has in this way been creating a new channel for the sale of products across the country. one facial cream and a bottle of cleanser from the salesperson. she was involved in the direct marketing of a range of HLL products under the brand names 'Lever Home' and 'Aviance'. a consultant from Hindustan Lever Network (HLN) brought along a range of products made exclusively for door-to-door sales. In terms of market share. The Indian division (Hindustan Lever Limited (HLL) of the consumer goods conglomerate. Unilever. one day. Together with her team of entrepreneurs.Then. HLL made its foray into direct marketing in 1999 with the launch of a range of personal care products under the brand name Aviance. 2003. Though Aviance was not a roaring success in absolute sales numbers. Garg bought two lipsticks. Promotion & Communication VI. Positioning e. Methods of Sale) f. Positioning f. Plan a. Brands c. Brand Name VII. Communication II. Price e. Overview b.Brand Launch Index I. Brand Personality . Questionnare V. Need Gap Mapping b. Market opportunity based on research a. Purchase Process IV. Current consumer behaviour for this category a. Distribution d. Price c. Packaging d. Place (including.Colour Cosmetics . Market Analysis a. Distribution g. Product Mix b. Segmentation and Targeting b. Methods of selling and building innovation III. equating to 25% in constant terms. and culture. In 1999 the Indian cosmetics and toiletries market grew 8% over 1998. Although Indians are strongly attached and committed to their traditions. with a population of nearly a billion people. and this trend is fuelling growth in the cosmetic sector. the market liberalization process that began in 1991.7% in current value terms in 2001. Consequently.1) . have made Indian women conscious of their appearance. Spending on Cosmetics and Toiletries Slowed at the End of the 1990s (Fig 1.Overview India. Optimism has been tempered by a gradual dawning of the fact that middle-class India is not as big or as active as many marketers had believed. Most multinationals that entered the market have however revised their estimates of the number of consumers able to buy their products. along with the crowning of three Indians as Miss World and Miss Universe during the preceding four years. The ‘morphing’ of India is subtle and the changes are not visible for the first time visitor. India's urban population is the main engine that fuels the demand for various cosmetic products. The Indian cosmetics and toiletries market grew by 8. However. Such consumers are more inclined to purchase higher-priced products. the advent of television and the awareness of the western world is changing the tastes and customs of India. the cosmetic consumption patterns of Indian women have changed. Total value since 1995 was 54% in current terms. representing a growth in disposable incomes. is a country of contrasts. with value sales amounting to Rs126 billion. The increasing size of the middle-class population in India. has led to more consumers for the cosmetics and toiletries market. But these are limited product ranges mainly in the perfumes and colour cosmetics segment. Indeed a more recent feature across all sectors. but market studies reveal that most cosmetic users are unwilling to cough up more to buy these exclusive products. the average consumer may be unaware of their purpose or even existence. Examples include toners. while at the same time the legendary emerging middle-class has generally been fuelling demand for cosmetics and upper-mass toiletries. In skin care and colour cosmetics. bath & shower products and aftershave balm. this is a result of many consumers trading down. Mass-Market Products are the Norm for Cosmetics and Toiletries Products in India (Fig1. Products that are too specialized have yet to be successful on the Indian market. indeed. especially the premium variety. hand care and other value-added skin care products. This also explains the relatively poor showing of perfumes. whether basic toiletries or more luxury products.The size of India's colour cosmetics market is Rs 250 crore. it is more a result of trying to increase demand in the growing market for mass products. Only 40 per cent of Lakme's customers expressed their willingness to pay more in anticipation of superior quality. The remainder consists of products such as mascara. For toiletries. the market for nail enamels is estimated at around Rs 110 crore. Only the richest consumers can afford these. The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products. eye-liners etc. That of fragrances is Rs 85 crore while the skincare market size is larger at Rs 400 crore. such as colour cosmetics.2) . For instance Lakme has now introduced its export range `Wild Orchid' into the domestic market and also recently launched `ultra premium' range. Most major cosmetic companies profess the need to tap the upper market segment and create exclusive products. When the domestic players have looked at the premium segment they have adopted a very cautious approach. While lipsticks account for nearly a third of the colour cosmetics market at Rs 90-100 crore. forcing manufacturers to respond. especially among teenagers. has been for manufacturers to concentrate on the mass market. Nina Ricci. Morrison. Ponds. The Brands Since market liberalization. repeat purchases were not forthcoming because the products were not priced competitively. besides tie-ups with good FMCG companies to leverage their distribution strengths. Coty. The growth of direct marketing as an alternative channel without incurring high promotional and developmental costs needs to be evaluated by new entrants in the sector. in order to formulate the most appropriate market development strategy for their products. These companies initially cashed in on their international brand image. mainly dominate this market. Yardley. Domestic players like Lakme. have entered the Indian market. Oriflame. however. Lakme is the overall market leader in the colour cosmetic segment (lip care and nail enamel) with a wide range of products and prices. both. The colour cosmetic segment which has Indian players such as Lakme Lever. offers the highest competition. Consequently. Garnier Laboratories. The organised colour cosmetics market is estimated at Rs 340 crore currently. and call for heavy promotional investments in awareness building. and L'oreal. Revlon has a market share of 80% in the premium market. Tips & Toes and Shenaz Hussain and multinational company players such as J. Revlon's sales account for Rs 60 crore of that. several multinational companies. Avon. Unilever and Colgate Palmolive. L.Brand image and high degree of consumer acceptability need to be established in the personal products sector. these companies became price-sensitive and most of the international brands are now priced competitively in the Indian market. Lakme leads the market . Chambor. Tips & Toes and My Fair Lady. such as Revlon. Sweden's Oriflame. Benckiser (Coty Vitacare). has registered a growth of 11 per cent.500. Revlon. The lip and nail colour market. Lakme's share stands at 34 per cent. Pond's. Other international brands in the sector include L'Oreal. Fired with the zeal of changing the complexion of the cosmetics market.Morrison and Tips & Toes makers Paramount Cosmetics . new entrants have to contend with serious competition in India from local as well as global players. In that regard. and that of Elle 18 is 25 per cent both of which have suffered a de-growth over the previous period. around 70 per cent. women's magazines and beauty pageants. . Revlon. packaging and completely built products. Price ‘The mass market for lipsticks (price range between Rs 30 to Rs 100) forms 43 per cent of the total lipsticks market. Multinationals feel that Indian companies .’ Lakme’s product range consists of the Elle range (priced at around Rs 30) and the medium-priced Ultra range (at around Rs 60) to the premium Orchid range of colour cosmetics priced in the range of Rs 120 to Rs 187. with the balance held by Chambor and Lakme's Orchid. Nivea-makers J. As per the data. at Rs 107 crore.300 to Rs 1. Revlon too has grown 65 per cent to strengthen its share to 13 per cent during the period. They are already exploiting prospects based on imports of active ingredients. Mary Ann Kay. Maybelline competes with Revlon and Lakme in the colour cosmetics market in India. By the end of 2001. Maybelline. Kao and Body Shop) and are in an advanced stage of market development. while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. The most important global players are already in India (except perhaps Estee Lauder. Lakme. The mass premium segment (price range Rs 100 plus) is just nine per cent of the total lipsticks market. it expects nearly 50 cities to be selling the products. Parisbased Escada group and Laboratories Garnier (Synergie) are ambitiously fishing in the Indian waters. they are fuelling the change using satellite television. The price range below Rs 30 forms roughly 48 per cent of the market.have not identified the changing needs of the new Indian woman. Benckiser and Avon with a major part of the rest. French multinational L'Oreal India prices range from Rs. USA's Avon Cosmetics. has recently joined forces with Hindustan Lever Limited (HLL) and calls itself Lakme-Lever. L. It is therefore that Switzerland's Torstone's Chambor. some of them engaged in the multi-levelmarketing model for their products.with sales of Rs 100 crore. where Revlon has a market share of 80 per cent. Mass market products account for a major share. according to ORG. It is not coincidence that many of these MNCs entered the Indian market in the mid-Nineties.Lakme. the mass market segment priced between Rs 30 and Rs 75. and dominated by brands such as Chambor. COMPACT 51 & 155/6. FOUNDATIONS 52. MASCARA 95/10. Accounting for 75 per cent of the total market. EYELINERS 39/9. NON-TRANSFER EYE LINERS 179/6.’ The prices of the more popular products of the key players in the category are enclosed herein. CURL MASCARA 99/7. In competition with L'Oreal's Maybelline range of `transfer-resistant' lipsticks. LAKME 1.Maybelline has now introduced an Express MakeUp priced at Rs 299. REMOVER 27. LIQUID LIP COLORS 145/4. EYE SHADOWS 95/MAYBELLINE 1. MOISTURE WHIP LIPSTICKS 99/109/2. Orchids. and the lower segment. the popular segment consists of Elle 18. WONDER CURL MASCARA 159/8. EYE PENCIL 12/13. ULTIMATE WEAR NAILENAMEL 59/4.50/8. KAJAL 24/12.EASY EYE LINING PEN 159/- . NON-TRANSFER LIP LINERS 179/5. Revlon has rolled out `ColorStay' lipsticks priced at Rs 239. one of the fastest growing segments in the cosmetic industry. LIPSTICKS 85/2.59/7. and Revlon. priced below Rs 30.55. L'Oreal's product of makeup currently available in the market is priced at the premium end at Rs 599. Tips & Toes and other regional brands. Maybelline New York globally has 900 SKUs in colour cosmetics. The lipsticks are thus at a high premium to the Maybelline range priced at Rs 185. LIP LINERS 32/5. NAIL ENAMEL 48/3. NON-TRANSFER LIPSTICKS 209/219/3. FACE POWDER 22/11. The brand is currently available in 4. ‘The nail enamel market.000 outlets. with brands such as Lakme and Maybelline. BLUSHERS 95/14. is segmented into three: the mass premium segment priced above Rs 75. EYE SHADOWS 225/17. MOISTURISING COMPACT POWDER 145/15.510 /3.60/CHAMBOR 1.195 /14.375 /12.9. MASCARA Rs.250 /7. Further they also had to dispel the fears that colour cosmetics are harmful for the skin. EYE LINER Rs. COLORSTAY LIQUID LIPSTICKS 229/3. SILVER DUST Rs.150 /10. BLUSH-ON 200/16. NAIL ENAMEL (15 ML) 85.345 /13.375 /4. COLORSTAY LIQUID EYELINER 259/6. SILVER SHADOW (COMPACT) Rs. LIP STICKS Rs300 /9. MINI NAIL ENAMEL (8 ML) 55/12. NAIL ENAMEL Rs. COLORSTAY LIPSTICKS 219/2. They had to help the people to learn to adopt cosmetics as an essential part of daily grooming. . EYE PENCILS Rs.450 /2. NAIL ENAMEL REMOVER 50.EXPRESS MAKE-UP 3 IN 1 STICK 299/10. GLITTER STICK Rs. LIP PENCILS Rs.95/13. MINI LIPSTICKS 90/10. COLORSTAY CONCEALER 219/4. TOP SPEED NAIL ENAMEL 75.280 /11.395 /5. MOON DROP LIPSTICKS 195/9. LIQUID MAKE UP ( FOUNDATION) Rs. TWIN SHARPNER Rs. COLORSTAY FOUNDATION 299/5. BLUSH ON Rs.SHINE-FREE FOUNDATION 169/REVLON 1.250 /6. COLORSTAY SELF-SHAPENING EYELINER 175/7.79/11.125 /8.95 /- Positioning The first challenge that the colour cosmetics industry had to face was to undo the negative connotations attached with "Being fashionable". TRIO EYE SHADOW (EYE SHADOWS) Rs. MOISTURISING FOUNDATION 69/14. COLORSTAY LIPLINER 175/8. LIP CRAYON Rs. Sample advertisements are enclosed herein. These ads showed young.C. cosmetic discounters. In the premium segment Lakme has introduced another player. Examples are Eckerd. who have been well trained and are well groomed to spread the Aviance beauty gospel. which consists of a number of beauty consultants. its premium brand Orchids has followed the path of Chambor. Cosmetic Center. Aviance. VAMA. Westside. It was advertised for the "Young girl who breaks the rules and loves to have fun". warehouse clubs. Haiko. specialty stores and chain department stores. college and high school going girls who projected the image of trying to be different and "cool". For instance. Lakme has always advertised in the various mass media available. Broad . Penney (internationally) and Shoppers’ Stop. Sahkari Bhandar etc. and mass merchandisers. It also has a very good distribution network.Department stores. Distribution There are three categories of channels of distribution Prestige .Drug stores.(samples in hard copy) . food stores. Neiman-Marcus and J. (nationally) Alternative . which has been position as "customized beauty solutions". Bombay Stores etc (nationally).is identified by five different marketing methods: o Direct Sales o Direct Mail/TV/Print o Free Standing Stores o Health Food Stores o Salons Communication Print is the main form of communication in the category. and is placed only in large and reputed retail stores To position them strongly amongst the 6 million youth section Lakme came up with Elle18 in early 1996.In this industry positioning is carried out mainly by advertisements. mainly belonging to the upper-middle class. such as Macy's. Pathmark. Sam's Price Club and Wal-Mart (internationally) and Satyam. The distribution is handled by network marketing. Methods of selling and building innovation Retail marketing has evolved. · Greater product penetration in suburban and rural areas. especially among the younger population. Maybelline New York. without compromising on price. as well as UV protection are popular. Today. drug or food stores where selecting products yourself is the norm. the consumer has become more knowledgeable and demanding. In the U. such as pen lipsticks and fast-drying nail polishes · Women buy the majority of their cosmetics from mass. market showed that sales doubled when self-service was offered. almost 90 percent are using them. drove growth. thanks to more discerning consumers who are demanding value for money in their colour cosmetics purchases. globally has 900 SKUs in colour cosmetics. · SKUs – Selling Kit Unit sizes and packaging can be effectively used to generate trial and initiate demand for a product.S. cosmetics that contain ceramides and vitamins. by age 13. for instance. frequent product launches and greater interest in personal grooming. most women begin wearing cosmetics before age 12 and. Technological advances have allowed for the creation of multifunctional products — products that perform more than their basic role. · Consumers have also been attracted by products that are easier to apply and convenient to use. . For example. foundations protect from ultraviolet rays. Multifunctional products have enjoyed much success. and cosmetics themselves have become more sophisticated and innovative.S. Sampling experts agree that the most effective sampling vehicles are those designed to reach consumers at home. Giving people the choice attracted new customers. · Estee Lauder’s research in the U. lipsticks moisturize and mascaras thicken and condition. About the only thing that has remained constant in the cosmetics industry over the years is women’s love of cosmetics. Higher levels of disposable income and lower product prices through smaller packaging sizes made cosmetic and toiletries affordable to more consumers. even into the home. · The biggest performance development in colour cosmetics has been the creation of “stay-on” products. · Innovative technologies have allowed manufacturers to create dramatically improved cosmetic samples and to distribute samples beyond the point-of-sale.. Segmentation The colour cosmetics market con be broadly divided into two segments: * Organised sector dominating 36%of the market. Point of Sale and Magazines · Process of Perception 2. * Unorganised sector catering to 64% of the market Targeting The segments that are targeted are as follows: * Age Ø Youth segment (15 . Evaluation of Alternatives o Structured evaluation using well-defined criteria: o Intended Purpose – Personal Use or gift etc. The purchase process for the category is outlined herein - CONSUMER BEHAVIOUR – Purchase Process The following are Research(a) findings regarding the purchase process in the colour cosmetics category – 1. women have become more confident and the negatives attached to a well-dressed woman are on the wane.24yrs): Elle – 18 Ø Core target (24+): Lakme Radiance * Purchasing power Ø Affluent segment: Aviance. Generation of Alternatives · Rarely an active search – not considered a significant decision – Typically 1 day long · Variety seeking buying behaviour · Main sources of information include Word of Mouth.CONSUMER BEHAVIOUR – Segmentation and Targeting Over the last decade. People have accepted colour cosmetics as an essential part of daily grooming. TV. Orchids Ø Middle segment: Lakme Radiance Ø Lower segment: Lakme does not exactly cater to the lower segment but the Elle-18 range it offers is low-priced and hence can satisfy this end of the market also. o Time and purpose of use of cosmetic sought to be purchased o General cosmetics usage habits of the individual . Reactions of salespersons) 5. Post-purchase Behaviour ¨ Satisfaction or dissatisfaction dependent on a variety of factors e.g.o Price o Match of brand image with self-concept o Perception of brand . we were able to identify the perceived need gaps in the category of colour cosmetics.popularity not an issue 3. Market opportunity based on research On the basis of preliminary qualitative research.g. Purchase Decision § Transforming a purchase intention into a purchase decision could be influenced by attitudes of others – cosmetics used are seen as a reflection of the kind of person one is 4. physical reactions (skin reactions etc.how long the effect is retained Research(a) – IIM (A) case study material on colour cosmetics. .) ¨ Shelf life of the product . We have listed these on three parameters. Implementation q Limited Problem Solving Behaviour q Time and non-availability may be constraining factors q Inertia q Lack of loyalty q Unanticipated Situational Factors (e. November 2002. without a high degree of risk from over-exclusivity.75 for nail enamel) was available mass market in non-metro areas (as these fall under the premium category and costs of mass marketing do not adequately compensate revenues). Green area: It may be seen that no brand with a low price (say below Rs. On the basis of this quantitative research.e. b) Need gaps 3 & 4 were connected as can be seen that it follows from the fact that no premium price brands are targeted at teens that there are correspondingly no brands targeted to this segment which are available only in select outlets.i. the attributes of Price. We launch the products we know are going to sell because we are . choosing to stock only in the metros and in some select outlets. Purple Area: It may be seen that no brand targeted at the below 20 age group was available exclusively in select outlets (this may be connected to the above perception as we can also see from the chart that brands available in select outlets are only of the high and premium price categories). · X shows that no brand is operating in that category. Availability and Target Audience Age Group (consumer perception). Green area (2): It may be seen that no brand with a premium price (say above Rs. Though the hypotheses that the below 20 age group lacked purchasing power was true earlier. it is not beneficial to conduct market test. we were able to ascertain that a) On the basis of the research findings and subsequent project reports prepared by us. 2.30 for nail enamel) was available only in exclusive markets (as it is prudent to mass market such brands). Need Gaps – 1. Orange Area: It may be seen that no brand with a premium price was targeted at the below 20 or teen audience (this may be due to the perception that purchasing power of this segment is not high) 4. The need gap analysis map may be interpreted as follows · Y shows that a brand/brands are operating in that category. We then conducted quantitative research to test and confirm the hypotheses we had arrived at above. as this leaves adequate scope in terms of the need gaps. We therefore decided to target the age 15-25 audiences with our premium price brands. it no longer holds true as this segment is fast-moving towards the trend in US and Europe where this segment is extremely fashion conscious and a large consumer of the premium end segment as well. filling the first 2 need gaps were ascertained not to be profit yielding. 3. (Questionnare enclosed in hard copy) PLAN – Product Mix In the field of premium cosmetics not geared for mass distribution. thus allowing flexibility in spite of overlapping the age 20-25 segments and stocking in non-exclusive shops a well. the Stila color collection consists of innovative products and shades that define simplicity and chic.A. Lips 2. Full-size lipstick in a perfectly portable mini case. based makeup artist Jeanine Lobell. Usage: Swivel up and glide on. The target audience is very conscious of fads. We hire top trend setting and predicting cosmetics professionals in the country on a consultancy basis for this purpose. the consumers do not want it anymore because that’s what people are expecting. Face 4. Stila has seasonal brands. aloe. Introduced in 1994. Keeping all the considerations in mind. Research goes into the types and colours of cosmetics most adequately suited to the consumer skin tone. Nails LIPS Lipsticks Barely Lips Lipstick Barely-there. we believe that makeup should be as personal and creative as your own signature. Her concern for the environment led to the ingenious idea of utilizing recycled materials. which are limited life as once a trend hits big time. Eyes 3. this unique colour line contains products made of the highest quality ingredients and which consistently perform to makeup artists’ standards. Unique illustrations and inspiring feminine quotes were chosen to help bring these products to life adding a sense of fun and whimsy to the Stila experience.familiar with the field. super shiny and oh-so-sheer formula that gives lips a wash of sheer colour. Stila cosmetics are the creation of L. In the initial period we are launching products along the lines of those already successful in similar markets abroad. Our product line consists of the following products that will suit the Indian skin tone and can be divided into 4 categories – 1. aluminium and glass to package most of Stila’s products. we decided to bring to India an international premium brand under the Estee Lauder umbrella – Stila. Hip Lips Lipstick . nettle and elderflower to keep lips moisturized and impeccable. At Stila. From eyes to lips. Packed with natural botanicals of juniper. These inventive products pair elements of classic beauty together with the latest beauty trends to create looks that are both fashionable and wearable. Delivers high gloss with a taste of vanilla that leaves lips ready for smooching. Usage: Twist up and apply. Lip Gloss Shine Language Lip Gloss Super shine. Then slick on the plumping top coat: one coat for long wear. Usage: Sweep across lips with fingertips or brush. Unique flip top case is easy and fun to use. nettle and elder flower. Never fear. Liquid Foundation Ever found a lipstick color you loved but once on your lips. the color looked totally different? There's a simple explanation: the color of your lips can change the color of your lipstick. Simply blend your Stila liquid foundation (Stay Calm or Oil Free Liquid Foundation) onto your lips and the original lipstick color will appear. Contains lip conditioners like Vitamins C & E. Super creamy lip color withStaying Power! What more could a girl want from her lipstick! Usage: Swivel up and apply to lips Double Talk Lipcolor Long-lasting and plumping color all in one! Now get the pout with color that stays! Apply the super long-lasting color to lips with wand and wait at least two minutes for it to dry. Fabulizer for Lips .Moisturizing lip color feels great on lips and is loaded with natural extracts. Usage: Pop the top and smooth over lips MegaBites Flavorful Lipstick Full colour lipstick-great shine. flavoured. Creamy. juniper. and keep on slicking for higher shine. Pick from 6 great shades. creamy formula. aloe. rich matte and pearlized shades give you something to smile about. Mix and match to create your own flavour Weather Wear Antichap Lipstick Incredible formula that combines all the benefits of a lip balm and full-color lipstick in one. Extra smooth formula that comes in matte or pearl shades. sheer color lip gloss in a pearlized. Shea Butter & a hint of Mint for fresh breath. there is a way of getting around such a surprise. Change them as often as you like! Create your own kit to go! Usage: Apply the darker shade in the crease. nettle and elder flower. portable pencil. Contains Jane's natural botanicals. For a star-struck look. juniper. Turn Fabulizer's base (2-3 clicks gets the flow going). smooth formula glides on without feathering or bleeding so you can line your lips with precision. Quick Stix Creamy lip color in an easy to use. Six wearable shades that defines your mouth without drying it out.. Soft-tipped applicator applies shimmery colour to eyelids and stays put. Usage: Apply directly to eyelids and flirt away! Glimmeratzi Eye Gloss See-through eye color loaded with glitter. Fill in entire mouth for a more intense effect. Ready to use anytime with automatic built in self-sharpener. Start at inner corner of eye for and extend out in windshield wiper fashion. Usage: Swivel up and outline lips. Fabulizer for Eyes The coolest way to apply eye shadow is with a pen . Usage: Line lips and then fill them in.The most stylish mouths in town are super shiny. aloe. Collect them and link up as many pans as you want. Turn Fabulizer's base (2-3 Clicks gets the flow going).so easy and portable. Radiation All Over Glimmer . Usage :Apply directly to lips! Lip Liners One Liner For Lips Creamy. EYES Eye Shadow Eyezing Linking Duos Highlight and contour eye shadow shades give you the ultra-cool look you want. 8 great shades you can partner up with a favourite Stila lipstick. and highlight lid and brow bone with the lighter shade. ultra smooth applicator delivers juicy shine every time.. Sheer Colour Glimmeratzi eye Gloss across your lids is a must! Usage: Apply with fingertip or jane Sponge Tip Applicator. creasing or fading.Highly pearlized loose powder that can be used all over . Contains talc and other extracts: juniper. Usage: Place brush at base of lashes and gently sweep upward to tip. Eye Liners Gliding Eye Liners Soft. Patented brush separates lashes and gives even.not your fingers . Matte Finish To further cut down on oil. Once it's on. Usage: Pat puff lightly on compact. tugging or dragging. Gently curls lashes and won't make them brittle. smoky kohl pencils do it all: shadow. smudge. perfect colour application. it just won't budge. Sponge application also gives you a chance to build color in certain areas. then swirl over face. tap loose powder off. Fan Club Washable Mascara Washable. wet sponge tip applicator and apply. Natural. soft finish that does double duty to make eye makeup and lipstick last. nettle and elder flower. tugging.to apply foundation. line and define. Available in your favorite shades and fresh flashes of unexpected color. use a makeup sponge . oil free formula gives you a matte finish that never looks dried out or cakey. Smooth formula is perfect for shadow play while the pencil shape draws the perfect line. glossy formula rich in vitamins and botanicals like Lavendar and Vitamin E. Usage: Twist applicator and apply to eyelid. Usage: Dip applicator into pot.anywhere you want to have super shimmer and glimmer. lightweight formula won't crease of flakeoff. . No skipping. aloe. Safe for contact lens wearers. Long-wearing. For a chrome look. Each shade is jam packed with finely milled pearl for an incredible foil-like payoff. Usage: Sharpen and line your eye lids.. FACE Longwearing. then dust all-over. Added benefit: they're extra long so they're easy to control. Comes in 6 dazzling shades. Going Steady Eye Definer Talk about eye opening! This velvet cream formula makes these sticks a dream come true! No dragging. The natural oils on your hands can make foundation change color. Removes easily with soap and water. Lightweight. Usage: Apply then blend with fingertips. Usage: Shake a small amount of powder through sifter and apply to face with puff or Super Brush. Usage: Apply with fingertips or sponge The latest look for skin is dewy and fresh. aloe. loose powder disguises shine and sets makeup to a sheer. translucent loose powder for a finishing touch that can be worn alone or over foundation. aloe. Usage: Shake a small amount of powder through sifter and apply to face with puff or Stila’s Super Brush. Highly pearlized loose powder that can be used all over .anywhere you want to have super shimmer and glimmer. nettle and elderflower. Wear it over your favorite Stila foundation for a flawless look. then dust all-over. Dermatologist-tested. Comes in 6 dazzling shades Oil-free formula gives skin natural coverage with a smooth. wet sponge tip applicator and apply. natural finish. Oil-free formula eliminates shine. and across forehead. Usage: Dip applicator into pot. tap loose powder off. Wow! want to have super shimmer and glimmer. lightweight formula won’t crease or flake-off. glide across lids. . nettle and elder flower. Usage: Pick the shade that best matches your skin tone. Apply to face with cosmetic sponge or fingertips. or anywhere you want a Stila glow! For a goddess worthy look. Shake well. For the Goddess in you. blend. apply Glow Goddess in “Moonglow” to apples of cheeks. Long-wearing. lightweight formula won't crease of flakeoff. Don’t forget. Contains talc and botanicals: juniper. Squeezable glitter gels loaded with pearls and fragrance available in 4 dazzling shades. dermatologist tested. Long-wearing. cheeks. Comes in a sifter container for an easy. Usage: Shake well ! Apply to face with cosmetic sponge or fingertips. Lavendar and chamomile help reduce puffiness around eyes and soothe skin. oil free. Make sure to blend. liquid talc formula with SPF 8 and Vitamins C & E. flawless and natural finish. blend in circular motion. Blend . no mess application. Zen blend botanicals help destress skin keeping it blemish-free. Choose from 6 shades. Contains talc and other extracts: juniper. not sticky. no mess application. Highly advanced. Conditions with Panthenol and Vitamin E. shoulders. For a chrome look. Comes in 6 dazzling shades. Provides a soft. natural look. Comes in a sifter container for an easy.Light. Jazz up your body and hair or wherever you want to sparkle and shine.. Gel goes on smooth.especially at jawline. nose and chin.) Lipsticks 325-370 Lip Gloss 250-275 Lip Pencils 300-350 Eye Shadow 330-380 Eye Liners 290-320 Mascara 300-330 Face Powder 250-275 Glitter & Shimmer 350-400 .pearl and glitter. Research(a) has shown that consumers use well-defined prioritised criteria in their choice of brand – e. Product Price (Rs. Apply another coat If you are on the go. Yipes.k.a. When applied properly you should barely notice blush. Apply one coat for a soft. let dry. you've put on too much. To create a really natural effect a. Stripes. Soft colors give skin a natural flush. NAILS Color rich. full coverage on nails in one coat. Usage: Apply single coat and let dry Nail Shimmer Shimmery shades of light-reflective polish last long and look glamorous day and night.g. STOP! Once you see the blush. When you see yourself looking better. light touch with blush: first run your Big Blush brush over your Oil Free Finishing Powder then pick up some blusher on bristles. Choose from a selection of neutral to vibrant shades with finishes of cream. Choose from a selection of fun shades! Try more than one shade at a time for a totally customized look. Sweep on naturally and blend easily to skin for a look that’s true to you.Blusher Remarkable powdered blush formula that is streak-proof and fade-proof. long lasting nail color that dries quickly and looks super shiny. this is the nail polish for you! Rich. Then blend along cheekbones. Usage: Sweep with a cosmetic brush along cheekbones. forehead. Quality first – price second. The price ranges for our products introduced during the launch period are given herein. transparent look or layer for a more dramatic. opaque look. Show the world how pretty your nails are! Usage: Apply one coat. says the three essentials for appealing to teens and tweens (who comprise a part of our target consumers) are: a product should be new. chic packaging made out of recycled paper. Packaging should feature many clear caps and lids that show off the bright shades of lipstick and eyeshadow within. the logo design. It is modern. There are practical aspects to package design for this market as well. The consumer pays a . different and just for them. Research(a) shows that one can significantly differentiate the product on visual appeal – colour and shape of the bottle attract attention and package size should be determined by consumer usage – providing an optimal SKU differentiates a brand due to better pricing. Always having new formulas in fresh packaging keeps customers coming back for more.a signature packaging style that is environmentally safe. Internationally. a research and consulting firm. the shape of the package can all say ‘cool’.Foundation 500-550 Blusher 540-570 Nail Paints 250-270 Packaging Industry – The emphasis on packaging by manufacturers significantly increased during the period. the higher price point hasn't kept consumers from climbing on the Stila bandwagon. Such as the fact that tweens have smaller hands so products should be scaled for them to hold packages comfortably. Packaging can communicate all three essentials. The packaging is considered one of the most seductive aspects of the Stila line. They are never home so they need products that they can take with them. Target Audience – The Geppetto Group. aluminium and glass that is durable as well as distinctive. Packaging sizes have been reduced. The colors of the product. as transparent packaging plays a major role in brands where colour is a key selling point. Cost prohibits other companies from generating copycats. allowing low-income consumers access to the cosmetics and toiletries market. This age group is very savvy about products and not easily forgiving. Brand Stila Stila is known and recognized for its distinctive packaging . and no new tooling is required. which she showcases. feels comfortable about it. BEHAVORIAL .a. She’s keeps up with the trends and has her hand on the pulse of the what’s en vogue. Cosmetics are a feel good factor for her. because of which we have the paperboard packaging. · The consumer should be able to identify with the content of ads – In the category. such as George Eliot's "A difference of taste in jokes is a great strain on the affections. professionals Sex: Female Religion: Insignificant Social class: Upper Family life cycle: Young. and yet. Post-graduates.prestige price for this item. She’s a conformist looking for a unique twist. The board is an environmentally friendly option and it gives the company room to grow as we can change the paper seasonally. because of the brand image. single PSYCHOGRAPHICS Lifestyle: She’s the new age generation. India Occupation: Students and Professionals Income: 600." or Susan B.000 p. Anthony's "Those who are really in earnest must be willing to be anything or nothing in the world's estimation. Target Audience DEMOGRAPHICS Region: Mumbai and Delhi." Positioning Research(a) Findings– · The channel of promotion/advertising is more specific to the product than the consumer base – Point of Sale advertising has the greatest impact in the category purchase. Stila has seasonal brands. with a subtle narcissism about her. + Education: Gradutaes. On the inside of each eye shadow lid is a message of a notable woman. the end user is usually the buyer. · Frequency is a function of importance of the product in the basket and hence there is a need for repetitive advertising. fashion conscious and takes care of her image. as mentioned. party etc. COSMOPOLITAN etc · She knows what she wants in life and knows she will get it eventually · She is a fulfilled person PLAN – Place Stila Cosmetics will be launched initially in New Delhi and Mumbai. office.) User status: Regular Readiness Stage: Informed Attitude toward product: Essential part of daily accessories Brand Occasions: Would-be regular user as above Benefits: Enhances beauty.Product Occasions: Going out (college. The entire range of Stila Colour Cosmetics will be available at all the counters. The products will be available at Stila counters in select outlets. positive · She is the kind of woman who loves life · She is positive in her attitude towards life · She has an individual point of view and will act according to her whims · She is well groomed · She shops with her friends · She shops for pleasure and on impulse · Dressing up is a part of her normal routine · She works hard but parties harder · She is well travelled and is aware of the international brands · She is very quality conscious · She is class conscious · She is looking for variety more than anything else · She needs to be made to feel special & unique · She needs to be flattered and valued · She wants to be seen at all the best places in town · She eats at the best restaurants and parties at the best night clubs · She is a regular party person · She reads magazines like ELLE. Highest quality ingredients. . Environment friendly packaging User status: Current young consumers of Premium priced older brands Loyalty status: None Readiness Stage: Inquisitive (may recognise brand from international communications) Attitude toward product: Enthusiastic. Unique colors. Our highly competent staff will do makeovers for the customers depending on the look that they would like to create for themselves. Westside (all branches of these stores). Ansal Plaza.g. VAMA. Our outlets will have an environment where customers are not intimidated. thereby further stimulating demand. office. party etc. It will be a ‘fun’.Ebony.For college. The buying environment will be deliberate and consistent. which is of utmost importance as it allows them to understand and promote the product effectively. A customer can visit multiple locations and have largely the same experience. PLAN – Methods of Sale Our staff at points of purchase shall all be given product and make-up training. Makeovers . such as specialized skin care and perfumes. Based on the results our staff will recommend the most suitable products. Improved competitiveness led to greater efforts by the major players to produce a wide range of value for money products. Customisation . The government has also liberalized the advertising market and it is now a key part of marketing campaigns to increase awareness among potential consumers. The buying environment affects the customer’s experience in your business.Crossroads. Mumbai. Growing competition also led to greater emphasis on advertising.Each of our saloons will have a computerised machine where we can change the colour of an existing shade as per the customer’s requirement and show them a sample of the new shade. Changes to the regulations pertaining to imports allowed multinationals far greater access to the domestic market in the mid-1990s. normal or oily. which will be situated in the Greater Kailash market in New Delhi and in Breach Candy and Bandra in Mumbai. Shoppers Stop. The facilities available here will include – Free testing – Consumers can have their skin texture analysed to check if it is dry.. . Creating a positive buying environment sets the stage for the sale. Advertising provides a way of generating demand for the more advanced products. friendly place that makes customers want to hang out. The majority of consumers in India are only aware of the most basic cosmetics and toiletries products. Apart from these counters we will also have 3 customised saloons manned by our staff.New Delhi. The improvised product will be delivered to them within 3 days. These will offer customised service to our customers. The customer’s experience will be much the same from visit to visit. E. Communication Medium and Style . "Would you like your cosmetics wrapped or would you like to put them right in your makeup bag? The choice close asks the client to make a choice. they inform the prospect of our sampling program that allows the client to sample the products at home before making their purchase. PLAN – Promotion and Communication Communication Objective The promotion has to initially highlight Stila as an Estee Lauder brand. we take care of all those little things that go into making a completely enriching and enjoyable consumer experience." If our staff is not able to close the sale. the client may not have made a commitment to buying makeup the first visit. which is established in India and has a reputed image. Brand recall should be instant when the consumer sees the brand at the outlet. This will generate brand equity and trust in the products. but having makeup applied professionally often turns a prospect into a client. At Stila. helping our clients with what they are looking for. For this purpose. the choice close and the consultant close. we have identified three techniques that are widely used: the assumptive close. The saloons will be done in the same colours. The communication will focus on the positioning of Stila as an aspirational brand. We also ensure that we maintain a comprehensive database of our clients and contact them every now and then with follow-ups and information regarding any product innovations or introductions. They shall of course be wearing the products as it helps to demonstrate the effect the cosmetics can have and validates the cosmetics in the customer’s eyes. we shall also present the other sales staff at our non-exclusive outlets like Shoppers’ Stop with out products as this will generate an enthusiasm within them and also encourage them to promote our brand. like having enough mirrors in our outlets. The assumptive close assumes you are making a purchase. In this case. For the final sales close. "Based on what you have told me I think you will be happy with a custom blend foundation and lipstick to start with. We keep a record of what we have done with every client and usually they will end up buying our makeup. Our salespeople too shall be dressed in uniforms with a visible touch of the Stila pink.All our counters will have the Stila theme of colours in pinks. which will serve to initiate trial. We use suggestive selling without being pushy. Our sales effort will be based on a more personalised approach. "Which eye shadow do you think would work best with your wardrobe?" The consultant close. We will also have a launch party where Stila creator.A ‘double duty beauty events’ where Stila artists will talk about and teach the tricks for perfect round-the-clock makeup. Celebrities such as Victoria Beckham. Elle. and Femina. Invitees will include a host of people from the fashion industry. These will include events such as the Stila U. Point of Purchase Our sales force is going to consist of freshly graduated smart young girls keeping in mind our brand image. sexy in the wink of an eye’. They will be taught firstly how to groom themselves and then how to groom others. The three customised outlets will have frequent events in keeping with Stila’s activities abroad. As mentioned above we are going to have free testing for our clients and give free makeovers. Kirsten Dunst. Pre launch PR will start a month prior to the launch. We will attempt to bring about the same endorsee-type status in India through promotional channels. They will go through a rigorous training program. This will help in associating the brand with the celebrities that come for the launch. make-up shows on television or columns in print.m. which we will decide upon in consultation with a branding agency. We will have a trained staff make house calls and other direct marketing strategies. chic into 8 p. . such as ‘Turn 8 a. Neve Campbell. We shall send direct mailers to our potential clients and regular consumers. Fashion shows and beauty events are venues where we will showcase our makeup and attract potential clients. Gwyneth Paltrow. We will also give them an introduction to the services that we are offering. We feel that this is one area where not enough attention is paid. We will advertise in the elite women’s magazines Cosmopolitan. We will have articles and press releases educating the consumers about Estee Lauder Companies as well as Stila. Jeanine Lobell will officially launch the brand in Bombay. The event itself will be covered apart from fashion magazines in newspapers such as the Bombay Times. Our advertising is going to be restricted to print and select hoardings. Prospecting for customers will occur outside of the business as well. We will also have a team specialised in doing bridal make up. We are currently thinking along the lines of activities like product placement. Leading stylists and make-up artists will talk about using the Stila product and give signature makeovers to invitees at the events.Stila products are very popular with the stars abroad.m.S. Natalie Portman and Katie Holmes love Stila products. the entertainment industry as well as the press. Gurlz. should generate a ‘pull’. During the launch period however. spends most of its promotional money on advertising. Enthusiasm building – Persuasive sales representatives build dealer enthusiasm for a new product by dramatizing the planned advertising and sales promotion back-up Revlon. while Avon relies more on personal selling.While we subscribe to the philosophy that ‘salespeople put products on the shelves and advertising takes them off’. The ‘Natalie’ nail polish is named after Miss Portman. Stila is the first friend you think of when you want to go window-shopping or just to hang out. an Indian Julia Roberts. believes that makeup should be as individual as your own signature. PLAN – Brand Name Stila is from the Italian word "stilare" which means "to pen" or "to word". PLAN – Brand Personality SEX: Female AGE: 20 years NATIONALITY: Indian PERSONALITY Stila is a generation X girl. personal selling is seen as a more effective means of promotion. Jeanine Lobell. Since our promotion objective is not comprehension but buyer conviction. heavy advertising will be undertaken to generate brand awareness and familiarity. We will be consulting a brand management firm and may consider the same using Indian iconic figures of our target audience such as sub-branding the ‘Stila Barely lips lipstick’ – ‘Ash’. for instance. She’s the sweetheart of the gang. Increase stock position – Persuasive sales representatives can influence dealers to increase stock or devote more shelf space to the company’s brand. She’s your fashion guru and you know what’s in when you see her wearing it. By maintaining a top-notch sales force and placing our employees at point of purchase venues. we also hope to – 1. but due to fierce competition in the category and the nature of the purchase process. Many of the lipsticks are named after famous women. 2. as elaborated in the place (distribution) mix. it is essential that there is a positive sales-force ‘push’. such as 'Billie' (Holliday) or (Clare Boothe) 'Luce'. creator of Stila. . Advertising. She knows what she wants and how to get there. in the initial period especially. we lay strong emphasis to an effectively trained sales force.
Report "Case Study[1].....Cosmetics (Product Cycle & Direct Marketing"