AUDYOGIK SHIKSHAN MANDALS INSTITUTE OF MANAGEMENT & COMPUTER STUDIES (IMCOST) MMS - II (Finance) Div- A Sub: Entrepreneur Management

INTRODUCTION
The

word cosmetics derives from the Greek word,

meaning "technique of dress and ornament.

Cosmetics:

are substances used to enhance or cosmetics:

protect the appearance or odor of the human body. A subset of cosmetics is called "make--up", which refers primarily to colored products intended to alter the users appearance.

COSMETIC PREPARATIONS
Cosmetics

were made for personal use and religious ceremonies. Historical records show that many different materials were used for body adornment.
Makeup Ingredients:

Plant Life Bark Leaves

Food Items Nuts Herbs Berries

Other Items Minerals Insects

INDIAN MARKET FOR PERSONAL CARE PRODUCTS

Hair Care
31%

Skin Care
46%

Colour Cosmetics Fragrance Bath & Shower Products

16% 1% 6%

REASONS FOR GROWTH IN THE SKIN CARE INDUSTRY IN INDIA

Concerns about hygiene and personal grooming drive sales. Discounts boost growth in the face of economic uncertainty. Domestic players expand their presence. Chained retailers create opportunities for point of-sale marketing. Rising affluence and sophistication to drive future growth.

ABOUT THE COSMETIC INDUSTRY

The cosmetic industry is a profitable business for most of the manufacturers of cosmetic products. cosmetic industry worldwide seems to be continuously developing, now more than ever with the advent of the internet companies. Many famous companies sell their cosmetic products online also in countries in which they do not have representatives.

Given the technological development and the improvement of the manufacturing process of cosmetics and not least due to the constantly increasing demand of such products, this industry constantly increasing demand of such products, this industry reported an important growth in terms of profit.

INDUSTRIAL TRENDS
MONOPOLY

IN THE MARKET.

TO

DEVELOP THE COSMETICS BRANDS ON RURAL AREA

FOCUS

MGMT

OF SERVICES

EMPHASIS

ON INDUSTRIAL TRENDS IN PRODUCTS.

MARKETING MIX

PRODUCTS- COSMETICS PRODUCT LINE AND RANGE QUALITY OF COSMETICS COLOUR, SIZE, SHAPE , DESIGN OTHER ATTRACTIVE FEATURES.

PRICE

CRTITICAL COMPONANTS FOCUS ON RURAL & RURAL AREA REASONBLE S PRICES TERMS OF PAYMENTS

PLACE
TARGET AREAS:-Urban & Semi-urban areas of the country Medical stores Retail outlets like  Pantaloons  Lifestyle  West Side  Health & Glow  Beauty Centre  Beauty Parlors

POSITIONING
We are positioning our brand on the bio-fresh factor. Components of positioning:1. Product class/category: Products falling under our brand name fall into cosmetics & personal care category. 2. Consumer Segmentation (females of 16 yrs of age & above) 3. Consumer Perceptions(perceptual mapping)

BRAND POSITIONING
Why? To become beautiful naturally
For whom? 16 yrs of age & above

Papaya
When? Regular/ occasionally Against whom? Lakme,revlon ,avon,oriflam e,etc.

DEVELOPMENT OF SECTORS

DEVELOPMENT AT NATIOANAL & INTERNATIONAL LEVEL RISING OF DEMAND ECONOMICAL POLICY GOVT PHILOSOPHY CHANNELS TO EXPAND THE UNIT

GOVT POLICY

TO INITIATE WITH THE BRANDS ETHICAL POLICY EVALUATION OF CURRENT TRENDS COME UP WITH NEW INNOVATIONS GOVERNMENT ACTION FOR COSMETICS TRENDS

FUTURE SECTOR PROSPECTS

HIGHLY DEMAND IN MARKET FULFILLMENT OF CUSTOMER DEMANDS GROWTH IN BUSINESS MANAGEMENT OF ECONOMICAL TRENDS VARIATION IN BRANDS POSITIVE IMPACT OF NATURAL BRANDS

INDIAN COSMETIC SECTOR ANALYSIS (2009-2012)

Indian cosmetics industry has witnessed strong growth during the past few years and has emerged as one of the industries holding immense future growth potential. The cosmetics industry registered impressive sales worth Rs422.3 Billion (US$ 9.3 Billion) in 2010. The sector has mainly been driven by improving purchasing power and rising fashion consciousness of the Indian population. Moreover, the industry players are readily spending on the promotional activities to increase consumer awareness.

New research report incorporates an extensive research and ration a analysis of the cosmetics industry in India.

It provides segment level analysis of the industry along with the emerging trends that may shape up with the betterment of economic conditions.

The research will help consultants, industry analysts, and vendors to get in -depth knowledge of the current, past, and future performance of the industry.

The report also provides information regarding consumer behavior, particularly men and rural population, with regard to cosmetic products.

According to our new research report Indian Cosmetic Sector Analysis (2009--2012), Indian cosmetics sector is expected to witness noteworthy growth rate in near future, owing to the rising beauty concerns beauty concerns of both men and women.

The industry holds promising growth prospects for both existing and new players.

To support this evidence, we have done an extensive analysis of various segments of the cosmetics industry, keeping in view both the services and products sector.

we have also added the competitive landscape section that incorporate valuable information about the leading cosmetic players, their marketing strategies, and swot analysis.

SWOT ANALYSIS STRENGTH

During the three decades, from 1970 to 1990, the cosmetics industry gained momentum in its extensive development through per capita consumption.

Even some segments may vary; the cosmetic industry is near maturity. The current annual retail sales of the industry totaled up to $14.5 billion.

The first quarter of this current year has seen a demand beginning to revive and trend is expected to continue well into the following year.

WEAKNESSES

Accounting to the past developments, the cosmetics industry has never been always in such a case. The industry is no longer recession -proof and is now bound for depressions and declinations.

Actually, the sales in the past t year are slow moving because of downed consumer spending.

Consumers that time then tend to settle for the less expensive lines. Another setback of the industry is the demand -price ratio. Within the past five years, the prices were invariable and steady but promotion budgets past were growing and getting greater than ever

OPPORTUNITIES

In keeping away from a potential head-on competition, a strategy of focusing on special niches proved to be effective especially in the struggle with the industry leaders.

This has been a great line of attack adopted by smaller companies in their contest with the market leaders.

They survive and exist through specializing in, niches, differentiating the product lines, and focusing on market segment.

A potential huge market has been spotted on men as they account for50%of adult population that consume onefifth of cosmetic sales.

The failure of the market leaders in such opportunity provides hint to smaller companies as to what would be the proper and better approach to the market.

THREATS

Notwithstanding the apparent growth of the cosmetic industry during the past four decades, there are currently more than 700 growing cosmetic companies competing in market.

Additionally, there are also market leaders that dominate cosmetic industry.

Consequently, it creates stiff and intensifying competition especially to those intensifying competition especially to those smaller companies as market leaders are putting pressure on these smaller cosmetic companies.