Some important questions about consumers that need to be answered in the cosmetics industry include Do women buy cosmetics to cover up or to enhance what nature has provided Do women have different wants and needs as far as cosmetics are concerned Is there an element of fantasy in buying and using cosmetics Glamour appeal in the advertising of cosmetics products to women usually features the faces of attractive celebrities or good-looking young women. Nevertheless, the advertising agency handling Avon's account maintains this is not what women want to see. Avon's group marketing communications manager believes that 'real beauty' comes from the inside and the company is intent on reflecting this in its advertising strategy. approach is novel it challenges the traditionally accepted notions of women's attractiveness. The managing partner of the agency handling the account was quoted as saying that the advertisements spurned the way in which imagery was associated with cosmetic products...
PROCTER & GAMBLE, THE MULTINATIONAL company- known for its household products Daz, Fairy, etc., has decided to expand its cosmetics business. The question is can the firm that has got us to Pamper-away our babies wetness, Crest-away our cavities and Tide-away the grime in our clothes now get us to make up our faces P & G's aggressive chairman, Edwin L. Artzt, thinks it can. The company tiptoed into the skin-care business in 1985 when it bought the Oil of Ulay skin-care line. Under Artzt's leadership, P & G then drove headlong into the cosmetics business. In 1989 it bought Noxell Corporation and its Cover Girl and Clarion brand cosmetics lines for 1.3 billion, Artxt saw the opportunity to strengthen Noxcll's marketing support with P & G's considerable resources while at the same time providing P & G with new growth opportunities outside its stable of mature products. Artzt also recognized that cosmetics carried high gross margins and resisted recessions. In 1990 P & G obtained 47.7 per...
Branding isn't a veneer that you slap on (usually in the form of a new logo) to mask or transform a product offering. Treating branding like some skin-deep solution to your business's problems is like putting lipstick on a pig People see through the makeup, no matter how thick the application. Branding has to go all the way to the core of who you are and what you stand for.
The study of competition, current strategic perspectives, past performance, marketing effectiveness, and marketing environment provides insights into information necessary for designating strengths and weaknesses. Exhibit 7-8 provides a rundown of areas of strength as far as marketing is concerned. Where feasible, strengths should be stated in objective terms. Exhibit 7-8 is not an all-inclusive list, but it indicates the kind of strength a company may have over its competitors. It should be noted that most areas of strength relate to the excellence of personnel or are resource based. Not all factors have the same significance for every product market therefore, it is desirable to first recognize the critical factors that could directly or indirectly bear on a product's performance. For example, the development of an improved product may be strategic for drug companies. On the other hand, in the case of cosmetics, where image building is usually important, advertising may be a...
Megastars like Meg Ryan, Brad Pitt, Demi Moore, and Harrison Ford are paid millions for appearing in Japanese commercials. Ryan endorses cosmetics and tea, Pitt appears in ads for canned coffee and blue jeans, while Demi Moore hawks protein drinks. Ford received several million dollars for appearing sweaty and bare-chested in Kirin beer commercials and print ads. Sometimes celebrities are forced to change their images or personalities to suit the advertising style of Japanese companies and the tastes of audiences in Japan. Japanese commercials have a totally different feel than those in the United States and Europe and have often been described as tacky or cheesy by Western standards. For example, one ad showed actor Dennis Hopper sitting in a tub with a rubber ducky to promote a brand of shampoo and body wash.
For example, as you can see in the graphic below, I searched Google for the term 'cosmetics'. In addition to the regular listings in the main body of the page, a number of ads for cosmetics appeared in the Sponsored Links section on the right side of the search results page.
In segmenting consumer markets, marketers can apply geographic, demographic, and psychographic variables related to consumer characteristics as well as behavioral variables related to consumer responses (see Table 3.5). Once the segments are formed, the marketer sees whether different characteristics are associated with each consumer-response segment. For example, the researcher might examine whether car buyers who want quality versus low price differ in their geographic, demographic, and psy-chographic makeup. This will determine whether the segments are useful for marketing purposes.
The word system, as applied to products, is a post-World War II phenomenon. Two related forces were responsible for the emergence of this phenomenon (a) the popularity of the marketing concept that businesses sell satisfaction, not products and (b) the complexities of products themselves often call for the use of complementary products and after-sale services. A cosmetics company does not sell lipstick, it sells the hope of looking pretty an airline should not sell plane tickets, it should sell pleasurable vacations. However, vacationers need more than an airline ticket. Vacationers also need hotel accommodations, ground transportation, and sightseeing arrangements. Following the systems concept, an airline may define itself as a vacation packager that sells air transportation, hotel reservations, meals, sightseeing, and so on. IBM is a single source for hardware, operating systems, packaged software, maintenance, emergency repairs, and consulting services. Thus, IBM offers its...
Occasionally other marketers notice an opportunity for gender segmentation. The Internet portal iVillage.com reaped the benefits of gender segmentation after initially trying to appeal to a broader market of baby boomers. Noticing that Parent Soup and other offerings for women were the most popular, iVillage soon evolved into the leading women's on-line community. Its home page entreats visitors to Join our community of smart, compassionate, real women. 14 Income. Income segmentation is a long-standing practice in such categories as automobiles, boats, clothing, cosmetics, and travel. However, income does not always predict the best customers for a given product. The most economical cars are not bought by the really poor, but rather by those who think of themselves as poor relative to their status aspirations medium-price and expensive cars tend to be purchased by the overprivileged segments of each social class.
Avon hired private detectives to paw through Mary Kay Cosmetics' rubbish skips. Although an outraged Mary Kay sued to get its rubbish back, Avon claimed that it had done nothing illegal. The skips had been located in a public car park and Avon had videotapes to prove it.
Analysis of competitive offerings involves not merely a review of product features and other marketing mix strategies, but also an evaluation of competitive advertising content. The image generated by advertisements and the nature of the slogans employed may constitute a major positioning tool, especially for personal products such as cosmetics, liquor and apparel.
Jerome's customers are in the middle and upper middle income bracket and the store bases its reputation on having good, serviceable and not-too-fashionable clothing. The store also sells popular lines of cosmetics. Like all good department stores, the firm has a variety of departments ranging from china and jewellery to soft furnishings. At one time the firm also sold major electrical appliances but competition became too cut-throat and the firm decided to withdraw from that market.
My associate Joel Beck has done a fantastic job in the last couple of years of aligning his business, Constance Cosmetics' Phoenix-area salons, with the Phoenix Chapter of the Arthritis Foundation. By very actively supporting its annual telethon with fund-raising activities, personnel, and his assistance, he has been able to obtain a large amount of free, positive publicity on radio and television. And the contacts he has made in the media through this activity have proven of continuous and frequent value in promoting the business in others ways.
Few companies have either the resources or the will to operate in all, or even most, of the countries that dot the globe. Although some large companies, such as Coca-Cola or Sony, sell products in more than 200 countries, most international firms focus on a smaller set. Operating in many countries presents new challenges. Different countries, even those that are close together, can vary greatly in their economic, cultural, and political makeup. Thus, just as they do within their domestic markets, international firms need to group their world markets into segments with distinct buying needs and behaviors.
Product planners need to think about products and services on three levels (see Figure 8.1). Each level adds more customer value. The most basic level is the core customer value, which addresses the question What is the buyer really buying When designing products, marketers must first define the core, problem-solving benefits or services that consumers seek. A woman buying lipstick buys more than lip color. Charles Revson of Revlon saw this early In the factory, we make cosmetics in the store, we sell hope. AAnd people who buy a BlackBerry smartphone are buying more than a cell phone, e-mail device, or personal organizer. They are buying freedom and on-the-go connectivity to people and resources.
Calvin Klein Cosmetics has noticed a shift in the fragrance market. Shiseido launched a classic fragrance by Jean-Paul Gaultier, en ant terrible of French fashion, that broke industry rules with its punky advertising and packaging - a bottle in the shape of a woman's torso encased in an aluminium can. L'Oreal responded with Eden, a new Caeharel fragrance for ecologically concerned consumers.
An example of how the perspectives of an entire industry may change over time is provided by the cosmetics industry. The cosmetics business was traditionally run according to personal experience and judgment, by the seat-of-the-pants, so to speak, with ultimate dependence on the marketing genius of inventors. In the 1980s, a variety of pressures began to engulf the industry. The regulatory climate became tougher. Consumers have become more demanding and are fewer in number. Although the number of working women continues to rise, this increase has not offset another more significant demographic change The population of teenagers traditionally the heaviest and most experimental makeup users has been declining. In 1995, there were 15 percent fewer 18- to 24-year-olds than in 1985. As a result, sales of cosmetics are projected to increase only about 2.5 percent per year to the year 2000. These shifts, along with unstable economic conditions and rising costs, have made profits smaller. In...
Poor weather may lead to an increase in demand for rainwear, hats and scarves. Retailers, well aware of these linkages, may design the layout of the store and adjust prices accordingly to make the most of complementary demand. Other examples include the purchase of a new tie that may stimulate the purchase of a new shirt. New colour themes for a season, if adopted, may stimulate a whole range of purchases. Thus a new evening dress may be accompanied by the purchase of new hosiery, underwear, coat, cosmetics, hairstyling, shoes and handbag. Such outcomes are the aspiration of many department stores. It is the relative pricing, besides the selection and co-ordination of appropriate items in the above list, that is crucial in deciding the successful sale. Manufacturers who produce such complementary items independently need to anticipate the needs of intermediaries and the ultimate customer when setting prices (Figure 7.1).
Unfortunately, in the high-tech business, this method is not of much use, because most related data are not easily defined. The makeup of the target market (consisting of innovators and early adopters) makes it difficult to assess the exposure cost of a message and even more difficult to assess the number of exposures to the message that are needed before a part of the target market decides to try the product.
Industries and companies vary considerably in how much they spend on promotion expenditures might amount to 30-50 percent of sales in the cosmetics industry but only 5-10 percent in the industrial-equipment industry, with variations from company to company. How do companies decide on the promotion budget Here are four common methods
The purpose of these box systems is, of course, to collect names of somewhat qualified prospects for follow-up by mail or phone. A box can cost as little as a couple of dollars and, located in a busy business, collect hundreds of leads each week. The Constance Cosmetics skin-care studios in which I have an interest have used contest-entry boxes dropped off at outdoor bank ATM machines on Friday evenings and picked up Sunday evenings to collect hundreds and hundreds of leads for telemarketing follow-up.
A control group is selected and observed over the entire testing period. This control group is comparable in makeup to the group that will receive the treatment. The major assumption in the design is that both groups are affected in a similar manner by extraneous factors. For this assumption to be correct, the subjects must be randomly selected and the treatments randomly assigned.
Situational factors in the person-situation nest may change each time the product or service is used. An example for this innermost segment would be the sport spectator who makes separate purchase decisions based on any combination of the following (a) day of the week, (b) time of event, (c) past performance of athletes, (d) social makeup and number of people with whom the spectator will be attending the event. Furthermore, these
Companies tan achieve compctilivc advantage through the way they design their distribution channels' coi erngp, expertise and performance. Caterpillar's success Irt the eon si ruction-equipment industry is based partly on superior channel development. Its dealers are found in more locations than competitors' dealers, and they are typically better trained and perform more reliably. Dell in computers and Avon tn Cosmetics distinguish themselves by developing and managing high-quality direct-marketing channels, Hack in 1946, pel foot was cheap, inn too nutritious, md sold exclusively in supermarkets and the occasional feed store Dayton, Ohio-based lams found success selling premium pel food through regional veterinarians, breeders, Eind pet stores.
In 1938, Congress passed the Wheeler-Lea Amendment. It amended section 5 of the FTC Act to read Unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce are hereby declared to be unlawful. The amendment empowered the FTC to act if there was evidence of injury to the public proof of injury to a competitor was not necessary. The Wheeler-Lea Amendment also gave the FTC the power to issue cease-and-desist orders and levy fines on violators. It extended the FTC's jurisdiction over false advertising of foods, drugs, cosmetics, and therapeutic devices. And it gave the FTC access to the injunctive power of the federal courts, initially only for food and drug products but expanded in 1972 to include all products in the event of a threat to the public's health and safety.
The LKAB extranet was first entered and then experienced through a demonstration by VP, providing a broader overview of LKAB's extranet within the entire I-E-I framework used within the organization. This was followed by a separate demonstration by SM, who provided a more specific and advanced understanding of what a customer actually experiences, which was important before actually talking to those in the buying side case studies. LKAB is primarily in the business of mining and selling iron ore in the form of pellets. Each order of pellets is unique in terms of its intended use, size, makeup, and quality. According to SM, who oversees much of this part of the organization's online efforts, the LKAB extranet is all about giving their four primary customers the information (and interaction opportunities) they need, when they need it, and how they want it. The extranet was developed exclusively with these primary customers in mind. These customers were used early on in the extranet...
Several companies are now adding area market specialists (regional or local marketing managers) to support the sales efforts in high-volume, distinctive markets. One such market might be Miami, where 46 percent of the households are Latino, compared to neighboring Fort Lauderdale, where 6.7 percent of the households are Latino. The Miami specialist would know Miami's customer and trade makeup, help marketing managers at headquarters adjust their marketing mix for Miami, and prepare local annual and long-range plans for selling all the company's products in Miami.
Few dispute that the Japanese have performed an economic miracle since the Second World War, In a very short time, they have achieved global market leadership in many industries motor vehicles, watches, cameras, optical instruments, steel, shipbuilding, computers and consumer electronics. They have made strong inroads into tyres, chemicals, machine tools and financial services, and even designer clothes, cosmetics and food. Some credit the global success of Japanese companies to their unique business and management practices. Others point to the help they get from Japan's government, powerful trading companies and banks. Still others say Japan's success was based on low wage rates and unfair dumping policies.
There has been a tendency for international organizations, especially in Europe, to centralize their marketing activities, resulting in more attempts to centralize the advertising function. In many product categories, including ears, durable goods, electronics products, cosmetics and alcoholic beverages. European multinationals have adopted single-agency networks across Europe. Retailers, media companies and food and drinks manufacturers, however, remain
One of the hardest marketing decisions facing a company is how much to spend on promotion. John Wanamaker, an American department store magnate, once said 'J know that half of my advertising is wasted, but I don't know which half. I spent 2 million for advertising, and 1 don't know if that is half enough or twice too much.' It is not surprising, therefore, that industries and companies vary widely in how much they spend on promotion. Promotion spending may be 20-30 per cent of sales in the cosmetics industry and only 5-10 per cent in the industrial machinery industry. Within a given industry, both low and high spenders CM be found.
In the United States, a number of brands that have become successful through more conventional advertising approaches are also attempting to capitalize on the stealth approach. For example, Revlon paid ABC to include its cosmetics as part of the plot on the soap opera All My Children. Calvin Klein's 45 million launch of the men's cologne Crave will include street sampling, seeding having designated opinion leaders be seen with and talk about the brand and sand sculptures of the logo on beaches on both coasts. Sony Ericsson hired troupes of actors to pose as tourists in New York City and Los Angeles to ask passers-by to take their picture with the company's new combination cell-phone camera. Procter & Gamble sent elaborate Porta Potties to state fairs to promote Charmin toilet paper, and Elle magazine (among others) has hired individuals to log on to Internet chat rooms and talk about its product. And this is just a sampling
In other cases, producers may avoid the channels used by competitors. Avon, for example, decided not to compete with other cosmetics makers for scarce positions in retail stores and, instead, set up a profitable door-to-door selling operation in the home and overseas markets.
Home-party and office-party selling is now being used to market everything from cosmetics, kitchcnware ind lingerie to exercise instruction and hand-made suits. Such selling requires a sharp understanding of reference groups and how people influence each other in the buying process.
One of the hardest marketing decisions facing a company is how much to spend on promotion. A John Wanamaker, the department store magnate, once said, I know that half of my advertising is wasted, but I don't know which half. I spent 2 million for advertising, and I don't know if that is half enough or twice too much. Thus, it is not surprising that industries and companies vary widely in how much they spend on promotion. Promotion spending may be 10 to 12 percent of sales for consumer packaged goods, 14 percent for cosmetics, and only 1 percent for industrial machinery products. Within a given industry, both low and high spenders can be found.16
Tastes, traditions, and customs are also an important part of cultural considerations. The customs of a society affect what products and services it will buy and how they must be marketed. In France, cosmetics are used heavily by men as well as women, and advertising to the male market is common. There are also cultural differences in grooming and hygiene habits of consumers in various countries. For example, though many U.S. consumers use products like deodorant and shampoo daily, consumers in many other Western countries are not as fanatical about personal hygiene, so consumption of products such as deodorants and mouthwash is much lower than in the United States.
Product placements have been around for years, and branded products are now commonplace in many movies and TV shows. However, the concept of paying to have a product or service promoted covertly has moved into other arenas, often without consumer awareness. Celebrities such as Lauren Bacall, Kathleen Turner, and Rob Lowe have appeared on talk shows and praised prescription drugs without revealing that the drug companies were paying them or making donations to their favorite charities in return for the endorsement. Producers of soap operas and sitcoms and even authors of best-selling books take money to build plots around certain brands of products such as makeup or jewelry. And of course marketers are hiring trendsetters to generate buzz for their products on college campuses and in trendy bars and nightclubs as well as other places. Many of the people who recommend products to us are actually pitchpersons in disguise who are being paid to deliver subtle promotional messages.
Way.6 New technology is making it possible to configure and personalize a wide array of products and services including computers, automobiles, clothing, golf clubs, cosmetics, mortgages, and vitamins. Consumers can log on to websites such as Mattel Inc.'s barbie.com and design their own Barbie pal doll or Fingerhut's myjewelry.com to design their own rings. Technological developments are also likely to make the mass customization of advertising more practical as well.7
Yolanda van der Zande, director of the Netherlands L'Oreal subsidiary, faced two tough decisions and was discussing them with Mike Rourke, her market manager for cosmetics and toiletries. We have to decide whether to introduce the Synergie skin care line and Belle Couleur permanent hair colorants. Synergie had recently been successfully introduced in France, the home country for L'Oreal. Belle Couleur had been successfully marketed in France for two decades. Mr. Rourke responded
A real strength of the CBD teams is that team members function as a collaborative whole, rather than as individuals performing their own tasks in isolation. Team members share information, organizational capabilities, and technologies. I have all the resources I need right here, says Amy Fuschino, a Healthcare and Cosmetics account executive. If I need to, I can go right
The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. But how does the company determine what mix of promotion tools it will use Companies within the same industry differ greatly in the design of their promotion mixes. For example, Mary Kay Cosmetics spends most of its promotion funds on personal selling and direct marketing, whereas competitor CoverGirl spends heavily on consumer advertising. We now look at factors that influence the marketer's choice of promotion tools.
Most industries contain an acknowledged market leader. The leader has the largest market share and usually leads the other firms in price changes, new product introductions, distribution coverage and promotion spending. The leader may or may not be admired, but other firms concede its dominance. The leader is a focal point for competitors, a company to challenge, imitate or avoid. Some of the best-known market leaders are Boeing (airliners), Nestle (food). Microsoft (software), L'Oreal (cosmetics), Royal Dutch Shell (oil). McDonald's (fast food and De Beer (diamonds).
Although CPA-based offers provide an alternative method for monetizing Web traffic, CPA offers tend to be better if your Web site focuses on specific verticals, such as real estate, music, dating, or financial services. In fact, CPA networks such as AzoogleAds tend to have limited monetization potential if your Web site traffic is focused on e-commerce. For example, if your Web site traffic is mostly about topics such as gardening or cosmetics, you are better off promoting a traditional percentage-of-sale-based affiliate offer from a network like Commission Junction. However, if your Web site is about real estate or financial services, you are better off promoting a flat cost-per-action-based affiliate offer such as a micro loan or a credit repair service.
So far, skimming prices have been discussed as high prices in the initial stage of a product's life. Premium and umbrella prices are two other forms of price skimming. Some products carry premium prices (high prices) permanently and build an image of superiority for themselves. When a mass market cannot be developed and upper-end demand seems adequate, manufacturers will not risk tarnishing the prestigious image of their products by lowering prices, thereby offering the product to everybody. Estee Lauder cosmetics, Olga intimate apparel, Rolex watches, Waterford Crystal, Armani suits, and Hermes scarves are products that fall into this category.
Speeches, audiovisual productions, flags and banners, and even songs and rituals that stir the spirit and reinforce the corporate message. For instance, a highlight of events produced by Mary Kay Cosmetics, Inc., is the moment when its distributors stand en masse and sing the corporate theme song I've Got the Mary Kay Spirit Down in My Heart with such enthusiasm that passersby stop and watch through the ballroom doors.
Ticals), and new foods (nutriceuticals). Shiseido, (he Japanese cosmetics firm, now markets ) portfolio f dermatology drugs. Qirlstm S OfJji saw the convergence of the computing md consumer electronics industries as the giants of the computer world such as Dell. Gateway, and Hewlett-Packard released a stream of entertainment devices from Mil'3 players to plasma TVs and camcorders, The shift to digital technology in Which dei'ites needed to play entertainment ppntent are more and more like KTs. is fueling this massive convergence.1*
Publics The Avon Foundation's long-running Walk for Breast Cancer efforts recognize the importance of community publics. Sponsored by the well-known direct marketer of cosmetics and beauty-care products, the campaign dramatically impacts the lives of millions affected by breast cancer. Publics The Avon Foundation's long-running Walk for Breast Cancer efforts recognize the importance of community publics. Sponsored by the well-known direct marketer of cosmetics and beauty-care products, the campaign dramatically impacts the lives of millions affected by breast cancer.
An example of growth encouraged by corporate strength is provided by R.J. Reynolds Industries. In the early 1980s, the company was in an extremely strong cash position, which helped it to acquire Heublein, Del Monte Corp., and Nabisco. H. S. Geneen's passion for growth led ITT into different industries (bakeries, car rental agencies, hotels, insurance firms, parking lots) in addition to its traditional communications business. Any field that promised growth was acceptable to him. Thus, the CEO's growth orientation is the most valuable prerequisite for growth. Similarly, growth ambitions led Procter & Gamble to venture into cosmetics and over-the-counter health remedies.
'WE NEED TO RETHINK WHAT a human is,' observes Seigo Matsouka, a consultant and conference leader, as he begins a four-day conference for 30 Shiseido division managers. Shiseido is Japan's largest cosmetics company. Yet its managers and the managers at many other Japanese companies worry that Japan's hierarchical business structure and its emphasis on consensus-based decision making will not serve their companies well in the future. Although Japanese companies have done well at improving existing products, they have not done as well at developing new products and markets. Thus, they need to stimulate their managers to think creatively, something they have not previously expected from their managers. Shiseido was the first firm to introduce western-style toothpaste to Japan - in 1888 It also opened Japan's first soda fountain in 1902. However, Shiseido developed its competitive advantage in the 1920s. During this period of high inflation, Shiseido worked out a unique arrangement with...
Advertising and personal-selling efforts vary depending on the type of market being sought, and even firms in the same industry may differ in the allocation of their promotional efforts. For example, in the cosmetics industry, Avon and Mary Kay Cosmetics concentrate on direct selling, whereas Revlon and Max Factor rely heavily on consumer advertising. Firms also differ in the relative emphasis they place on advertising and sales promotion. Companies selling high-quality brands use advertising to convince consumers of their superiority, justify their higher prices, and maintain their image. Brands of lower quality, or those that are hard to differentiate, often compete more on a price or value for the money basis and may rely more on sales promotion to the trade and or to consumers.
Countries also vary in ethnic and racial makeup. At one extreme is Japan, where almost everyone is Japanese at the other is the United States, where people from come virtually all nations. The United States was originally called a melting pot, but there are increasing signs that the melting didn't occur. Now people call the United States a salad bowl society with ethnic groups maintaining their ethnic differences, neighborhoods, and cultures. The U.S. population (267 million in 1997) is 73 percent white. African Americans constitute another 13 percent, and Latinos another 10 percent. The Latino population has been growing fast, with the largest subgroups of Mexican (5.4 percent), Puerto Rican (1.1 percent), and Cuban (0.4 percent) descent. Asian Americans constitute 3.4 percent of the U.S. population, with the Chinese constituting the largest group, followed by the Filipinos, Japanese, Asian Indians, and Koreans, in that order. Latino and Asian American consumers are concentrated in...
Liz Earle Cosmetics developed a new line ol skincare products Liz Earle Naturally Active Skincare that combines natural ingredients and scientilic technology. The challenge was that the line's proprietary logo had to hint at the science and stress the concepts of nature and natural Ingredients.
Three aspects of sport contribute toward the makeup of all five of the sport atmosphere constructs (a) sport is intangible and subjective, (b) sport enables social facilitation, and (c) prices are determined by the marketer's sense of what the consumer wants. Sport is interpreted in myriad ways by a variety of people. Consequently, the intangible and subjective aspect of sport relates to every component of the sport experience. Because sport is most often enjoyed in groups, the concept of social facilitation also applies to each construct. Additionally, sport marketers cannot always pinpoint what
Product planners need to think about the product on three levels. The most basic level is the core product, which addresses the question What is the buyer really buying As Figure 13.1 illustrates, the core product stands at the centre of the total product. It consists of the problem-solving services or core benefits that consumers seek when they buy a product. A woman buying lipstick buys more Elian lip colour. Charles Rcvson of Revlon saw this early 'In the factory, we make cosmetics in the store, we sell hope.' Theodore Levitt has pointed out that buyers 'do not buy quarter-inch drills they buy qnartcr-ineh holes'. Thus when designing products, marketers must first define the core of benefits that the product will provide to consumers.
After reviewing the information on the market research of the two product lines, Ms. van der Zande summarized the situation. L'Oreal Netherlands could leverage its advertising of the Garnier name by promoting two lines at once. Consumers would hear and see the Garnier name twice, not just once. As a result, Dutch consumers might see Garnier as a major supplier of cosmetics and toiletries. However, she was concerned about the selling effort that would be needed to sell the L'Oreal brands that were already in the Dutch market and at the same time introduce not just one, but two, new brand name product lines. The Dutch
More than a billion dollars of merchandise is sold every year via the in-home party. I can think of five companies that have earned enormous profits with this kind of marketing strategy TupperWare, Amway and Avon, Virgin Cosmetics and more recently Pampered Chef. It works this way the seller invites a number of guests to his or her home for a combination social gathering selling event. The host provides food, drinks and activities, one of which is showing a line or products for guests to purchase. The host can either have the product on site ready to buy, or have samples and catalogues which guests peruse and make orders from if they want.
Everyone knows something about 'hot' products. When Sony designed its first Walkman cassette and disc players, when Nintendo first offered its improved video game console, and when The Body Shop introduced animal-cruelty-free cosmetics and toiletries, these manufacturers were swamped with orders. They had designed the 'right' products not 'me-too' products, but ones offering new benefits. Peter Drucker, a leading management thinker, has put it this way 'The
Some companies may offer, not one, but several lines of products which form a product mix or product assortment. For example, a cosmetics firm may have four main product lines in its product mix cosmetics, jewellery, fashions and household items. Each product line may consist of a range of items or sublines. Take cosmetics. This could be broken down into several sublines - lipstick, powder, nail varnish, eye-shadows and so on. Each subline may have many individual items. For example, eye-shadows contain a string of items, ranging from different colours to alternative application modes (e.g. pencil, roll-on, powder). The width of the product mix refers to the number of different product lines the company carries - 6 in the case of Procter & Gamble. (In fact, P & G produces many more lines, including mouthwashes, paper towels, disposable nappies, pain relievers and cosmetics.)
A muttikrrei iconc presentation demonstrates Kirna Zab&le's department-store approach to retailing youth-tut. nip products ranging from tashion and toys to makeup and appliances Department stores are frequently viewed as mainstream shopping experiences, places where consumers can purchase anything from appliances and makeup to fashions and toys. Located in the heart of New York's unconvenlional SoHo district, Kirna Zabete offers its boulique-oriented patrons a department-store experience that's anything but mainstream. The owners wanted a multipart logo thai dynamically communicated its mission to offer unique clothing, accessories, and homewares in a single location
Welt-designed packages can crea I e convenience and promotional value. We must iiicludc packaging as a styling weapon, especially in food products, cosmetics, toiletries, and small Consumer appliances.The package is the buyer's first encounter with the product and is capable of turning ihc buyer on or off. Kqr Arizona Iced Tea. packaging is definitely a turn-on,
In the late 1980s, 40 percent of the Dutch population (about the same percentage as in France) was under 23 years old. Consumers in this age group were the heaviest users of cosmetics and toiletries. However, like the rest of Europe, the Dutch population was aging and the fastest-growing population segments were the 25 or older groups. women in the Netherlands was 29 percent. This was much lower than the 50 percent or above in the United Kingdom or United States, but the number of women working outside the home was increasing faster in the Netherlands than it was in the United Kingdom or the United States. Dutch women were also delaying childbirth. As a result of these trends, women in the Netherlands were exhibiting greater self-confidence and independence women had more disposable income and more of them were using it to buy cosmetics for use on a daily basis. Despite their rising incomes, Dutch women still shopped for value, especially in cosmetics and toiletries. In the European...
The skin care market was the second largest sector of the Dutch cosmetics and toiletries market. For the past five quarters, unit volume had been growing at an annual rate of 12 percent and dollar sales at a rate of 16 percent. This category consisted of hand creams, body lotions, all-purpose creams, and facial products. Products within this category were classified by price and product type. Skin care products produced by institutes such as Shisedo or Est e Lauder were targeted at the high end of the market. These lines were expensive and sold through personal service perfumeries that specialized in custom sales of cosmetics and toiletries. At the other end of the price scale were mass market products like Ponds, which were sold in drugstores and supermarkets. In the last couple of years, a number of companies, including L'Or al, had begun to offer products in the mid-price range. For example, its Pl nitude line was promoted as a high-quality, higher-price but still mass market...
Further channel conflicts involve other stakeholders including sales representatives and customers. Sales representatives may see the Internet as a direct threat to their livelihood. In some cases such as Avon cosmetics and Enyclopaedia Britannica this has proved to be the case, with this sales model being partly or completely replaced by the Internet. For many B2B purchases, sales representatives remain an essential method of reaching the customer to support them in the purchase decision. Here, following training of sales staff, the Internet can be used as a sales support and customer education tool. Customers who do not use the online channels may also respond negatively if lower prices are available to their online counterparts. This is less serious than other types of channel conflict.
The seller must understand the ways that consumers in different countries think about and use certain products before planning a marketing program. There are often surprises. For example, the average French man uses almost twice as many cosmetics and grooming aids as his wife. The Germans and the French eat more packaged, branded spaghetti than do Italians. Some 49 percent of Chinese eat on the way to work. Most American women let down their hair and take off makeup at bedtime, whereas 15 percent of Chinese women style their hair at bedtime and 11 percent put on makeup.19
The influence of the distribution strategy may be illustrated with reference to two cosmetics companies that deal in similar products, Revlon and Avon. Revlon distributes its products through different types of intermediaries and advertises them heavily. Avon, on the other hand, distributes primarily directly to end users in their homes and spends less on advertising relative to Revlon.
During the slow-growth 1990s, many companies have adjusted their prices to bring them into line with economic conditions and with the resulting fundamental shift in consumer attitudes towards quality and value. More and more, marketers have adopted value-pricing strategies - offering just the right combination of quality and good service at a fair price. In many cases, this has involved die introduction of less expensive versions of established, brand name products. Thus Campbell introduced its Great Starts Budget frozen-food line, Holiday Inn opened several Holiday Express budget hotels. Revlon's Charles of the Ritz offered the Express Bar collection of affordable cosmetics, and McDonald's offered 'value menus'. In other cases, value pricing has involved redesigning existing brands in order to offer more quality for a given price or the same quality for less (see Marketing Highlight 17.2).
The message of your sales promotion should be consistent with your positioning. A company selling power tools should offer premiums of interest to do-it-yourselfers, such as a tool box, just as a cosmetic company might offer a makeup bag. Promotions can be used to reinforce your brand positioning. For example, shoe companies may sponsor basketball tournaments to showcase the attributes of their products. Healthcare companies may sponsor marathons to publicize the benefits they can provide.
Countries vary in their ethnic and racial makeup. At one extreme is Japan, where almost everyone is Japanese. At the other extreme is the United States, with people from virtually all nations. The United States has often been called a melting pot diverse groups from many nations and cultures have melted into a single, more homogenous whole. Instead, the United States seems to have become more of a salad bowl in which various groups have mixed together but have maintained their diversity by retaining and valuing important ethnic and cultural differences.
REVLON SELLS COSMETICS, TOILETRIES AMD fragrances to consumers around the world. Revlon is the no. 1 firm in the popular-price segment of the fragrance market. In one sense. Revlon's perfumes are no more than careful mixtures of oils and chemicals that have nice scents. Rut Revlon knows that when it sells perfume, it sells much more than fragrant fluids - it sells what the fragrances can do for the women who use them.
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