Professional Documents
Culture Documents
SUBMITTED BY
SHIKHAR AILANI
B.COM(HONS.)
ENROLLMENT NO-A7004614051
Under guidance of:
Faculty Guide
MR. DHARMENDRA PANDEY
Asst. Professor
ABS, Lucknow
(TERM PAPER REPORT IN PARTIAL FULFILMENT OF THE AWARD OF FULL TIME
B.COM (HONS.) (2014-17)
This AGREEMENT is between the office of the register Amity university Lucknow and
SHIKHAR AILANI a student presently studying at the AMITY BUSINESS SCHOOL,
Lucknow Campus
The student named above desires to undertake Dissertation / training program as student in
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HAVE READ THE ABOVE CONFIDENTIALITY AGREEMENT AND AGREE TO
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AGREED
SHIKHAR AILANI
/09/2015
Students Name
SHIKHAR AILANI
Enrolment No
A7004614051
Program
B.COM (HONS.)
AMITY UNIVERSITY
AMITY UNIVERSITY MALHOUR CAMPUS, NEAR
MALHOUR RAILWAY STATION , LUCKNOW
Contract Details:
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dpandey1@lko.amity.edu
ACKNOWLEDGEMENT
STUDENT CERTIFICATE
Certified that the report is prepared based on the summer internship project
undertaken by me in STUDY OF SALES PROMOTIONAL STRATEGIES OF
LEADING COSMETIC BRANDS IN INDIA under the guidance of Professor
MR. DHARMENDRA PANDEY in partial fulfillment of the requirement for
award of degree of Bachelor of Commerce B.Com(H) from Amity University ,
Uttar Pradesh.
DATE:
SHIKHAR AILANI
(STUDENT)
MR.DHARMENDRA PANDEY
(FACULTY GUIDE)
FACULTY CERTIFICATE
This project work is partial fulfillment of the requirement for the degree of Bachelor of
Commerce from Amity University, Lucknow Campus, Uttar Pradesh.
AMITY UNIVERSITY
LUCKNOW CAMPUS
UTTAR PRADESH
DECLARATION
7
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TABLE OF CONTENT
Chapter Number
CHAPTER 1
Topic
Page Number
INTRODUCTION
10-14
CHAPTER 2
ANALYSING COSMETIC
INDUSTRY
15-21
CHAPTER 3
COMPANYS PROFILE
22-27
CHAPTER 4
RESEARCH OBJECTIVES
AND METHODOLOGY
28
CHAPTER 5
CONCLUSION AND
BIBLIOGRAPHY
29
INTRODUCTION
9
SALES
A sale is the trading of merchandise for cash or administration consequently for cash or the
activity of offering something.
The dealer or the merchandise's supplier or administrations finishes a deal in light of an
obtaining, an appropriation or a solicitation. There is a going of title (property or possession)
of the thing, and the settlement of a cost. A vender concurs upon a cost which he
enthusiastically gives responsibility for thing. The vender, not the buyer by and large executes
the deal and it is finished preceding the commitment of installment. A man who offers
products or administration in the interest of the merchant is known as sales representative or
salesman.
Consignment
Telemarketing
Retail or consumer
4. Travelling salesmen
Door-to-door methods
Hawking
5. uuyl4Business to business
6. Electronics
REBATE- Under it so as to clear the overabundance stock, items are offered at some
lessened cost. For instance, giving a discount by an auto producer to the tune of 12,000/ - for
a restricted stretch of time.
DISCOUNT- Under this method the customers are offered products on less than listed
price. For example, giving a discount of 30% on the sale of Liberty Shoes.
REFUNDS- Under this strategy, some piece of the cost of an article is discounted to the
client on demonstrating confirmation of procurement. For instance, discounting a measure of
5/ - on demonstrating the vacant bundle of the item estimated 100/-
PRODUCT COMBINATION- Under this method, along with the main product some
other product is offered to the customer as a gift.
COSMETICS
Beauty care products, otherwise called cosmetics or make-up, are consideration substances
used to upgrade the appearance or scent of the human body. They are for the most part blends
of substance intensifies, some being gotten from characteristic sources, (for example, coconut
oil) and numerous being synthetics.
In the U.S., the Food and Drug Administration (FDA), which directs cosmetics, characterizes
beautifiers as "expected to be connected to the human body for purging, improving,
advancing engaging quality, or modifying the appearance without influencing the body's
structure or capacities." This wide definition incorporates any material proposed for use as a
part of a corrective item. The FDA particularly prohibits cleanser from this class.
MARKETING STRATEGIES
Not all consumers purchase only after they sense their needs. Many have not made any
decisions until they are in the store. More than three-quarters of cosmetics decisions are made
in the store, higher still in some other individual categories. Consumers respond to what is
new in product or even store format. Therefore, focusing on consumers and understanding
their needs are very important to marketing cosmetics. Indulgence or emotional appeals in
retail should not be ignored. In-store promotion can be an effective way to introducing new
product features to consumers.
HISTORY OF COSMETICS
11
Old Sumerian men and ladies were potentially the first to develop and wear lipstick, around
5,000 years ago. They squashed gemstones and utilized them to improve their appearances,
essentially on the lips and around the eyes. Also around 3000 BC to 1500 BC, ladies in the
antiquated Indus Valley Civilization connected red tinted lipstick to their lips for face
decoration. Ancient Egyptians removed red color from fucus-algin, 0.01% iodine, and some
bromine mannite, yet this color brought about genuine ailment. Lipsticks with sparkling
impacts were at first made utilizing a pearlescent substance found as a part of fish scales. 6
thousand year old relics the emptied out tombs of the Ancient Egyptian pharaohs are
discovered. According to one source, early real improvements include:
Skin creams made of beeswax, olive oil, and rosewater, described by Romans.
Nivea in 1911.
During the sixteenth century, the personal attributes of the women who used make-up
created a demand for the product among the upper class. The world's largest cosmetics
company is L'Oral, which was founded by Eugene Schueller in 1909 as the French Harmless
Hair Colouring Company (now owned by Liliane Bettencourt 26% and Nestl 28%; the
remaining 46% is traded publicly). The market was developed in the USA during the 1910s
by Elizabeth Arden, Helena Rubinstein, and Max Factor. These firms were joined
by Revlon just before World War IIand Este Lauder just after.
Beauty products are now widely available from dedicated internet-only retailers, [16] who have
more recently been joined online by established outlets, including the major department
stores and traditional bricks and mortar beauty retailers.
Although modern make-up has been traditionally used mainly by women, an increasing
number of men are using cosmetics usually associated to women to enhance or cover their
own facial features. Concealer is commonly used by Cosmetics brands release products
especially tailored for men, and men are increasingly using them.
12
Primer come in formulas to suit individual skin conditions. Most are meant to reduce
the appearance of pore size, prolong the wear of makeup, and allow for a smoother
application of makeup, and are applied before foundation.
Lipstick, lip gloss, lip liner, lip plumper, lip balm, lip conditioner, lip primer, and lip
boosters. Lipsticks are intended to add color and texture to the lips and often come in a
wide range of colors, as well as finishes such as matte, satin and lustre. Lip stains have a
water or gel base and may contain alcohol to help the product stay on. They temporarily
saturate the lips with a dye. Usually designed to be waterproof, the product may come
with an applicator brush, rollerball, or be applied with a finger. Lip glosses are intended
to add shine to the lips and may add a tint of color, as well as being scented or flavored.
Lip balms are most often used to moisturize and protect the lips. They often contain SPF
protection.
Concealer makeup covers imperfections of the skin. Concealer is often used for any
extra coverage needed to cover blemishes, under eye circles, and other imperfections.
Concealer is often thicker and more solid than foundation, and provides longer lasting,
more detailed coverage. Some formulations are meant only for the eye or only for the
face. This product can also be used for contouring the face like ones nose, cheekbones,
and jaw line.
Foundation is used to smooth out the face and cover spots or uneven skin coloration.
Usually a liquid, cream, or powder, as well as most recently a light and fluffy mousse.
13
Foundation provides coverage from sheer to full. Foundation primer can be applied
before or after foundation to obtain a smoother finish. Some primers come in powder or
liquid form to be applied before foundation as a base, while other primers come as a
spray to be applied after the foundation to help the make-up last longer.
Face powder sets the foundation, giving it a matte finish, and to conceal small flaws
or blemishes. Tinted face powders may be worn alone as a light foundation.
Rouge, blush or blusher is cheek coloring to bring out the color in the cheeks and
make the cheekbones appear more defined. Rouge comes in powder, cream, and liquid
form.
CHAPTER -2
ANALYSING COSMETIC INDUSTRY
PRODUCTS AND SERVICES
PRODUCT SEGMENTATION
SHARE
Hair color
22%
Color cosmetics
18%
Skin care
15%
13%
Fragrances
9%
Mens Grooming
7%
Oral hygiene
7%
5%
Deodrants
4%
STP
Segment
Target Group
Positioning
Growth
Market Share
Skin Care
5,551
3.40%
28.00%
Color Cosmetics
6,173
8.90%
31.00%
Fragrance
3,345
1.40%
17.00%
3,498
7.50%
17.00%
Men's Line
1,478
-2.50%
7.00%
Total
20,045
6.60%
100.00%
With the end goal of this investigation we are concentrating exclusively on the female
business sector. In this way our potential clients base (with the end goal of creating
projections) does exclude any measurements or procurements for male customers. We have
utilized the demographic report for spa goers directed by spa week after week as a premise
for our presumptions. Based upon this review the spa goer is overwhelmingly female (85%),
accomplished (46% went to school), and crosses pay levels (26% gain not exactly 35,000;
32% procure in the middle of 35,000 and 74,999 and 42% acquire over 75,000).
15
Utilizing this demographic as the premise for our philosophy we added to our potential client
base with the accompanying parameters: Women with some school between the ages of 25
and 65. We totally reduced ladies with no school, ladies somewhere around 18 and 25, ladies
more than 65 and the whole male populace. It is assessed that the female populace will
develop at a rate of 5.18% yearly from 2000 to 2025. This information is for the whole
States. Of the 33,642,000 ladies spoke to between the ages of 25 and 65 who went to school,
29,293,000 (87%) live in major cities
LAKME
Lakme is a reputed Indian brand which is owned by Unilever. The company is headed by Mr
Anil Chopra who is the CEO of the company. Lakme was founded in the year 1952 by JRD
Tata. In 1996 the Tata group decided to sell off its stake in Lakme to Hindustan Lever
Limited. Lakme was also ranked at 47th as one of the most trusted brands in India according
to The Brand Trust Report in 2011. This brand also sponsors the Lakme Fashion Week (LFW)
twice a year. It also launched the Lakm Perfect Radiance and Lakm eyeconic kajal which
gained significant market share. In the financial year 2012, Hindustan Unilever Limited had a
rise in profit before tax and interest of about 23%.
BIOTIQUE
Biotique was launched by Vinita Jain in the year 1984. This brand also manages to stand out
in the world of chemical-based cosmetics as it doesnt contain any artificial preservatives or
synthetic fragrances. The ingredients used are extracted naturally from herbs. Moreover the
herbs/plants used for extracting raw material are also monitored from its nascent stage hence
the end product is organic.
16
MAYBELLINE
The Maybelline Company was founded by a Tom Lyle Williams in 1915. The company began
production from its first plant in Chicago and produced Maybelline Cake Mascara in 1917the first modern eye cosmetic for everyday use. The company which was started off as a
small family owned business is now a number one cosmetics company in America and is
growing rapidly across the world. Maybelline New York India is a popular cosmetic brand in
India with a wide presence in almost all cities and metropolitan areas through retail stores
SHAHNAZ HUSSAIN
This brand was founded in the 1970s by Shahnaz Husain. In the year 2006 she was awarded
the Padma Shri. This brand also tries to harness the natural goodness of Ayurveda. Currently
it has around 350 products spread out over different categories like skin, hair, make up etc.
The brand claims that its USP is the hard work done on research so that the quality of the
product is of superior grade.
REVLON INDIA
Among all the international players in the cosmetic segment in India, the first one to launch
was none other than Revlon in 1995. It happened due to the collaboration between Umesh K
Modi along with Revlon Pvt Ltd in 1994 . Pricing is done for the mid-level consumers as it
neither too high nor too low priced. The company owns approximately 20-25 % of the
domestic colour cosmetic market share.
MAYBELLINE
It was launched way back in 1915 by T.L. It was later acquired by LOreal and in India it was
launched by its subsidiary, LOreal India. One of the major factors that have helped this
brand to carve its niche is being reasonably priced in spite of having an international appeal.
The Maybelline Colossal range was a huge hit in India which made the brand more popular.
HIMALAYA
The Himalaya Drug Company was founded in the year 1930 by Mr. M. Manal who had a
vision to make Ayurveda accessible to the world. Himalaya has been able to patent its
sunscreen, Under-Eye Cream, Anti-Acne range and Hair Loss cream among others from the
United States Patent and Trademark Office. The business of Himalaya in India contributed
60% of the brands sales of Rs 1, 200 crores in 2011. Himalaya is also the owner of the
popular face wash Purifying Neem which is very popular in a country like India where
problems like acne and greasy skin are widespread.
17
OFFERS DISCOUNTS AND DEALS-Just like free stuff, discounts and deals
work well too. They are another creative and low cost way to attract more customers to your
business.
People often see discounts and deals as a huge opportunity to save money and enjoy a
product or service for a whole lot less.In fact, discounts and deals usually influence customers
to buy more products or services than they initially planned. They love to take the
opportunity because the same products may not be so cheap tomorrow. Offering deals and
discounts are also a powerful way to publicise your brand. There are now a couple of deal
websites in Africa that advertise great deals to deal-hungry customers on a daily basis.
START A CONTEST-Everybody loves to win. Its not just always about the prize
you win, its the thrill of getting lucky or beating other people. Even though many of them
will not win the grand prize, they will still be interested in finding out more about your
products and services.
A word of caution though. Make sure you can comfortably afford the prize(s) you plan to
give out. Draw out a reasonable budget and stick to it. It makes no sense if the money you
make from selling your products during the contest cannot cover the cost of running it.
18
HAVING A WEBSITE-As a result of the huge influence of the internet, our world is
now more connected than ever before. Most people simply use the internet nowadays when
they want to find a product or service.
With the spread of mobile phones across many parts of, it is easier and more effective to
search Google for information rather than ask the nearest human being.
Creative Packaging
Creative packaging is an important component to your marketing strategy that captures the
overall look and feel of your product. Your cosmetics packaging also can go a long way in
branding your business. Etsy, a website where small business owners can sell handmade
products including cosmetics, emphasizes the importance of creative packaging to make the
most of your sales potential. Use innovative materials such as wood, recycled cardboard, lace
or velvet. Add lots of layers and embellished details such as ribbons, flaps, buttons or fabric
cords. Always include your logo on package designs and, if the package warrants it, company
information such as your website or phone number.
Branding
As you continue to define your marketing directives, branding naturally comes into play.
Branding is the emotion behind your product -- in essence, its the consumers perception and
feeling toward your brand. Give thought to your brand personality, a concept that Besame
19
Cosmetics creator Gabriela Hernandez defines as one of the main points of difference in the
product landscape. She adds that a memorable [personality] is key to making the brand
stick
in
the
consumer's
mind.
Brand personality includes the look and feel of your business, a moral standing, a
temperament and a physical appearance. For example, if you intend to market your cosmetic
product as a fashion-forward, trendy brand, your marketing collateral should make good use
of color and design that appeals to a younger demographic with smells and textures that are
light and airy. Launching a luxury product aimed at an older demographic should have a
traditional, opulent feel with richer fragrances and a thicker, fuller texture. These factors lead
to your cosmetic brand personality, an essential component that leads to product positioning
in the marketplace.
Product Positioning
Take your marketing directives a step further by zeroing in on your core demographic and
marketing to them. Small businesses can work to fully understand their core customers by
using online marketing tools like Google Analytics, an interactive tool that details how your
website is being used, including incoming search terms. For instance, the search best oil-free
face wash for acne would likely identify a younger audience, while the keyword hyaluronic
acid night moisturizer may indicate a mature demographic. Knowing who is buying each
product of your cosmetics line opens the door to highly-effective, segmented advertising -- an
essential component to your overall marketing strategy.
CHAPTER- 3
COMPANY PROFILE
20
Cake mascara was originally advertised and sold exclusively by mail. It was received so well
by the general public that women started asking for it in drug stores. The MAYBELLINE
success story didnt really start until mascara first appeared in the nations variety stores. In
September 1932, a special 10-cent package of Maybelline mascara was designed for sale in
these stores. The subsequent success of this product has become legend, eyebrow pencils
came along a few years later. Eyebrow pencils were the natural follow-up to the solid
mascara as the companys second eye cosmetic. Eye shadows of various shades were added
in the 1920s and have increased in popularity and general usage year after year.
In February, 1996, Maybelline was purchased by LOral, Inc. and the company headquarters
were subsequently moved to New York City. In addition to establishing MAYBELLINE as a
colour authority, creating technologically advanced products became a company priority.
Since then, the innovation has been nonstop. One of maybelline biggest success stories is the
introduction of the Express Finish Fast-Dry Nail Enamel in 1997. Its every womans dream
come true a nail enamel that goes from wet to set in one minute! Express Finish Fast-Dry
Nail Enamel is the number-one best selling nail enamel on the market today. Additional
Express products soon followed including Express Lipstick n Liner in One, Volum Express
Mascara and Eye Express Liquid Eyeliner.
SWOT ANALYSIS
SWOT Analysis
1. Maybelline has the top research and development teams and
resources
through
their
parent
company
LOreal
charming
Strong
market
penetration
and
brand
loyalty
Weakness
and
hence
limited
market
share
skin
1.State
Opportunity
art
research
center
Threats
of
are
afraid
tech
to
follow
the
latest
competitor
fashion
factories
Earned good response from the YouTube video created for promotional purpose.
The Twitter hashtag #Kiss Song was a successful campaign and trended in India.
The companys Twitter handle@ Maybelline India had created an impact in the urban
area and trended in Mumbai.
Total followers on Twitter had moved above 4200.
Over 6000 girls had participated in the campaign and contributed to the song with their kisses
22
INTRODUCTION TO COMPANY
The organization Lotus Herbals Ltd. was set up two decades back in the year 1993 by Kamal
Passi. This brand manages assembling and offering of different sorts of beauty care products.
The rundown incorporates face chemicals, sunscreens, winter care, hair oils, and shampoos.
Passi knew the significance of good bundling and verified his items emerge in configuration.
He likewise valued his items no less than 10-15% lower than the contemporary brands in the
fragment. Then again he doesn't think making a tremendous consumption on promoting.
Lotus Herbals Ltd Company has some expertise in creating beauty care products that claim to
have Ayurveda and in addition home grown goodness. The brand advances their items by
certifying their USP to be an amalgamation of conventional information alongside cutting
edge innovation. They put stock in making utilization of home grown fixings and making
their item without compound based, manufactured beauty care products. This brand is
likewise entirely against the merciless routine of creature testing. Lotus Herbals Ltd. is
developing at a rate of 35%-40% a year.
otus Herbals is India's driving normal beauty care products organization. Consolidating
antiquated shrewdness from the Vedas with 21st century innovation, we offer a scope of more
than 250 healthy skin, hair consideration, sun care and make-up items for the retail and expert
markets. India is understood everywhere throughout the world for her rich abundance of
restorative and remedial herbs and for the 5,000 year old investigation of Ayurveda that
practices the use of these herbs adequately. After numerous years of careful examination we
thought of experimentally created items that produce the same capable impact, in a shorter
time and with a more drawn out enduring impact.
23
We have faith in effectively using home grown fixings rather than substance based,
manufactured and barbarous creature tried makeup. Our extensive variety of comprehensive
medicinal services and improvement items catch the immaculateness of nature and the quality
that lies in that. When we began in 1993 under the direction of Mr. Kamal Passi, the
excellence items market in India was at an early stage Ayurveda still hadn't increased balance
as the enchanted expert key to magnificence. In this way our items around then were for fare
and were additionally created under contract in more than 16 nations.
Be that as it may, by 2005, floated by the emotional surge in the Indian magnificence market,
we felt the time had want us to move our center to the local business sector, which drove us
to offer our items across the nation. Each of our items contains a mix of concentrates of
diverse herbs to secure, recuperate and improve the face, body and hair. We take after strict
assembling procedures according to GMP (Good Manufacturing Practices) and have earned
the ISO 9001 (2000) affirmation also.
All our generation frameworks are liable to stringent quality checks to guarantee most
noteworthy quality items that match or surpass universal norms. Welcome to a fearless new
universe of common magnificence.
24
U.A.E, and West Asia. The Chairman & Managing Director of Lotus Herbals Ltd. is Mr
Kamal Passi.
MARKET REVIEW
Cosmetics are regarded as luxury items in the past. Nowadays, cosmetics have been playing
an important role among consumer goods in Hong Kong. For consumers, cosmetics have
become one of our daily products. Cosmetics are no longer the luxury items, but have
become necessities for female consumers instead . They are no longer just useful and pleasant
products, but have become necessities. For producers, cosmetics have become one of the
most profitable products with a huge and strong market for it. Cosmetics industry is now a
strong and vibrant market involving 8 billion. Female customers between the ages of 18-40
have high interest in cosmetics products. Therefore, it was one of the few sectors left
unscathed by the economic downturn. Females aged 18-40 is a high population group,
showing the large market size for cosmetics. The cosmetics industry is a strong market as
long as they support it. Moreover, the age range of people interested in cosmetics is widening
to both the younger and, with the diversified product development, the older. Cosmetics
industry is not only a strong market, but also growing in strength year-on-year. `It is a high
amount of money, which may be a great proportion of their incomes. Some 18% of the
respondents, the dominant spending bracket, said they spent over 800 a month on beauty care
products. This finding was more significant when deflationary environment was considered.
PRODUCT FEATURES
Companies are continuously developing new products with innovations in respond to the
market needs. A new and popular development in color cosmetics has been the creation of
stay-on products which are longer lasting The stay-on benefits have been added to almost
all sorts of color cosmetics including lipsticks, eye shadows, mascaras, nail polishes and lip
liners. The stay-on products provide consumers with convenience, particularly for those busy
businesspersons. Natural ingredients products of all kinds of cosmetics are still extremely
popular throughout Asia. It can be reflected in the exhibitors products in the Cosmo prof
Asia 2002. Plenty of products focus on their natural ingredients, such as hand-made natural
soaps, aloe vera shampoo and conditioner, skin care products that use rich minerals and
liposome from the Dead Sea. They are differentiated from other products by emphasizing the
natural ingredients. Natural ingredient products tend to be more common in the cosmetics
market. With a wealth of information available from doctors, advertising, media and word-ofmouth, consumers are more aware of the side effects of cosmetics. Marketers aim to answer
the consumers need for products that contain natural ingredients. Most natural ingredients
products are claimed that have no side effects as those chemical ingredients products.
25
CHAPTER-4
RESEARCH OBJECTIVE AND METHODOLOGY
RESEARCH METHODOLOGY
The data has been collected from secondary data which includes internet, magazines,
newspaper.
OBJECTIVE
26
FINDINGS
It has been observed that even though the cosmetic market is dominated by female
consumers, male consumers are coming at par with them.
Quality was found as a most important factor for purchase of cosmetics by the
respondents than price.
SUGGESTIONS
A marketer should built up a prompt distribution channel to avoid the problem of non
availability of products.
Marketer should include your attitude and personal appeal in their advertising
communication as the consumer buy cosmetic products on their own.
CHAPTER-5
CONCLUSION
The present day business sector is very aggressive in nature. The purchaser is the lord in the
business sector. The significance picked up by the individual buyer in the present business
sector constrain the advertisers to look the purchasing propensities, inclinations, taste, as and
aversions of shoppers and in like manner they have to reconsider its approaches and
showcasing blend. While buy of restorative item, the buyers are discovered more quality
cognizant liked to buy ayurvedic items, they sit tight for the brand amid non-accessibility, get
to be developing as vital wellspring of data and inspite of effect of different variables, the
genuine brand choice is taken without anyone else.
27
BIBLIOGRAPHY
Google.com
Wikipedia
Lotusherbals.com
Cosmopolitan magazines
Vogue magazines
28