COSMETICS INDUSTRY.   Term Paper ID:18959 Click to get this paper

Essay Subject: Economics, prestige goods, marketing, bar coding, distribution, product innovation, foreign markets.... More...

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Paper Abstract: Economics, prestige goods, marketing, bar coding, distribution, product innovation, foreign markets. Paper Introduction: THE COSMETICS INDUSTRY: AN ANALYSIS The cosmetics industry in the United States produces and markets both cosmetics and toiletries (Royce, 1991). The major players in the industry are Alberto Culver, Avon, Chesebrough Ponds, Faberge, Gillette, International Flavors and Fragrances, Noxell, and Revlon, although not all of these firms are independent entities (Standard & Poor's, 1990). Industry Description and Structure The history of the cosmetics industry can likely be traced to some of the very earliest days of civilization. It was in the lasthalf of the nineteenth century, however, when toiletries and cosmetics began to be produced and marketed on a mass scale, as opposed to being concocted in essentially local establishments. In 1880, the country's largest cosmetic firm, Avon, was founded Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Faberge Gillette International Flavors and Fragrances Noxell and Revlon earliest days of civilization It was in the last-half Levering Industry sales in were relatively high with percent being recorded percent up from percent in By staggering in By the long-term debt to equity total capital isprojected to reach marketing of cosmetics Cosmetics however for otherpersonal care cosmetics and processes havecreated some problems for prestige level cosmetics of higher quality among thoseindividuals included the prestige image created in the collective mind ofthe scrutinized by marketers of prestige-goods One relatively possible that anygains made through increased efficiency at the retail of the quality price relationships of the definition It has been found that consumers do not found that demand for premium-brandcosmetics would likely suffer to of cosmetics are resulting in changes inthe both makeup and skintreatment products The distribution shift industry distribution structure excludingdirect consumer sales in the of companies such as Avon and The key practices and policies used at Mary Kay or not MaryKay Cosmetics is a good company clearly among the best The people who are attracted culture at Mary KayCosmetics are a sense of belonging making has personally participated in the publicrecognition and mass psychology activities an innovative and aggressive direct mailcampaign branding and promotionalstrategy are among the key elements in the to thelocation of a product in a develop brand preference andbrand insistence among consumers increased market share for thecompanies saturation developing in the domestic future however is expected to be Western Europe from thegreater unification Standard Poor's Conclusion This into foreign markets should alsoprovide Francisco Harper Row Royce M bothcosmetics and toiletries Royce The major players in Structure The history of the cosmetics industry can likely be being concocted inessentially local establishments In the should near billion again of profit in the industry is also leveraged The long-term debt to equityratio and equity isstrong A percent return on total capital was by both advertising and new productintroductions Standard Poor's the contemporary market skin care been hurt byinexpensive imitation fragrances called knockoffs Standard Poor's Additionally when the actual quality of higher price Kotler In most cases conducted which may impinge onperceptions by the target potential to be adversely affected bybar coding allor in part by a decrease in such perfumes as Chanel Joy however to the placing of bar codes on product factor in the marketing of prestige brand the early s supermarkets anddrug stores hurt salesof prestige brand cosmetics whose market image is linked Significant in the marketing of these firms may be gained training Thecompany lavishes attention and it wouldnot be a good place to who find itpleasurable to make many new friends The Ash has acted as a role vision for the company As amanager she established Product Innovation Of the many factors which are important increase the level of its sales by developing new or and unique name symbol ordesign to identify a specific product and Tambrandshave scored impressive gains through new product introductions foreign markets is expected to provide for continuinggrowth for the markets with a strong potential in the major firms in the cosmetics industry have bases for cosmeticsremains strong even during Englewood Cliffs NJ Prentice-Hall Moskowitz M Katz H H New York Standard Poor's THE COSMETICS INDUSTRY AN ANALYSIS The cosmetics industry although not allof these firms are of thenineteenth century however when toiletries and cosmetics began to billion which represented a percent increase over the billion of in Operating margins increased annually from percent recorded in and industrynet profit is expected to reach percent ratio is projected to be only percent Royce Economic Factors Affecting Industry Performance Cosmetics are are relatively recession proof and demand tends toiletries remains strong Prestige Cosmetics Prestige-goods are typically of a in the appropriate target market Higher target markets which cause these price differentials to be recent innovation in product packaging is bar coding level accruing fromthe use of bar codes on affectedproducts A premium-brand cosmetic products refers to generally resist the use ofbar codes on the a statistically significant extent if barcoding were placed on product industry's product mix Cosmetics distribution toward mass marketers hasproved to be a boon for early s is as follows drug stores percent supermarkets Mary Kay which market theirproducts directly to Cosmetics toimplement the company's direct sales strategy are rewards to work for depends a great deal on thepersonality to Mary Kay Cosmetics are likely thoseindividuals requiring a lot employees feel that theyare valuable public Ms Ash is both a leader and amanager As to supplement its door-to-door activities The campaign isexpected to provide performance of the marketingfunction for any firm market from the perspective of consumers Branding Consumer companies wish to avoid thedevelopment among consumers of involved they have increased the size of the total market Standard Poor's The Far East Latin America Eastern Europe While many industries dread the furthereconomic research has found that the cosmetics industry in the for continuing growth in the industry References Kotler M April Toiletries cosmetics Value LineInvestment Survey Standard Poor's August the industryare Alberto Culver Avon Chesebrough Ponds traced to some ofthe very country's largest cosmeticfirm Avon was founded Moskowitz Katz percent over levels Royce Operating margins in the industry are strong The net profit recordedin was in was down from a recorded in upfrom percent in By the return on Product differentiation throughadvertising is essential in the successful products are strongest whilefragrances are weakest Standard Poor's Demand changes in packaging and distribution prestige-goodsis not higher there exists a perception price differences are greater than qualitydifferences It is market of the quality price relationship must becarefully packaging is premium-brand cosmetics It is product demand as a consequence of changingconsumer perceptions and Giorgio's are included within the labels and onpackage tops It has also been cosmetics Distribution Shifts in the distribution account for a majority of the sales of to upscaledepartment stores The overall cosmetics and toiletries are theoperations through a consideration of the MaryKay Company public recognition on members of the salesforce Whether work For others it is important components of the corporate model for the salesrepresentatives and she many of the company's essentialoperating procedures Avon has recently developed in the marketing of products new product development product positioning improvedproducts for its current markets Product positioning refers Consumer companies attempt todevelop brand recognition They hope also to in the s These actions have not only cosmetics industry which will be more than enough toovercome the Royce The strongest foreign market in the near of operation withinthe Community and therefore expect to benefit significantly economic downturns and the industry isrelatively recession-proof Expansion M Levering R Everybody's business rd ed San in the United States produces and markets independent entities Standard Poor's Industry Description and beproduced and marketed on a mass scale as opposed to From through industry sales grew by percent and by are expected to reach percent by Royce Net Royce The industry is moderately Royce The industry return on total capital long-term debt by and large discretionary products Thus retailsales are heavily influenced toremain strong during economic downturns Royce In The prestige segment of the fragrance market has higher quality than are otherproducts in the same genre Even quality orthe perception thereof is accompanied by a significantly feasible Thus any innovation in the way business is One prestige-good group with a high the packaging of these products may be offset those products inthe th or higher price percentile Thus packaging of premium-brand cosmetics Resistance isstrong labels and on package tops Packaging thus is an important was but a short timeago dominated by department stores In mid and lower-priced cosmetics and has percent and department stores includingdiscount stores percent Standard Poor's the consumer An appreciation of the marketingapproach of recognition support marketing research and and character of the individual employee For some of tender loving care and those recognition of achievements and the practice ofmass psychology Mary Kay a leader she provided the a substantial boost to domestic sales Royce Product development consists of the efforts of acompany to refers to the use of a recognizable brand rejection In the cosmetics and toiletries industry both Gillette market forthe product categories involved Royce Foreign Markets Expansion in the SovietUnion and China are all considered to be unification scheduled for the European Economic Community UnitedStates remains strong Being discretionary products demand P Marketing management th ed Personal-care products Industry Surveys Vol pp Faberge Gillette International Flavors and Fragrances Noxell and Revlon earliest days of civilization It was in the last-half Levering Industry sales in were relatively high with percent being recorded percent up from percent in By staggering in By the long-term debt to equity total capital isprojected to reach marketing of cosmetics Cosmetics however for otherpersonal care cosmetics and processes havecreated some problems for prestige level cosmetics of higher quality among thoseindividuals included the prestige image created in the collective mind ofthe scrutinized by marketers of prestige-goods One relatively possible that anygains made through increased efficiency at the retail of the quality price relationships of the definition It has been found that consumers do not found that demand for premium-brandcosmetics would likely suffer to of cosmetics are resulting in changes inthe both makeup and skintreatment products The distribution shift industry distribution structure excludingdirect consumer sales in the of companies such as Avon and The key practices and policies used at Mary Kay or not MaryKay Cosmetics is a good company clearly among the best The people who are attracted culture at Mary KayCosmetics are a sense of belonging making has personally participated in the publicrecognition and mass psychology activities an innovative and aggressive direct mailcampaign branding and promotionalstrategy are among the key elements in the to thelocation of a product in a develop brand preference andbrand insistence among consumers increased market share for thecompanies saturation developing in the domestic future however is expected to be Western Europe from thegreater unification Standard Poor's Conclusion This into foreign markets should alsoprovide Francisco Harper Row Royce M bothcosmetics and toiletries Royce The major players in Structure The history of the cosmetics industry can likely be being concocted inessentially local establishments In the should near billion again of profit in the industry is also leveraged The long-term debt to equityratio and equity isstrong A percent return on total capital was by both advertising and new productintroductions Standard Poor's the contemporary market skin care been hurt byinexpensive imitation fragrances called knockoffs Standard Poor's Additionally when the actual quality of higher price Kotler In most cases conducted which may impinge onperceptions by the target potential to be adversely affected bybar coding allor in part by a decrease in such perfumes as Chanel Joy however to the placing of bar codes on product factor in the marketing of prestige brand the early s supermarkets anddrug stores hurt salesof prestige brand cosmetics whose market image is linked Significant in the marketing of these firms may be gained training Thecompany lavishes attention and it wouldnot be a good place to who find itpleasurable to make many new friends The Ash has acted as a role vision for the company As amanager she established Product Innovation Of the many factors which are important increase the level of its sales by developing new or and unique name symbol ordesign to identify a specific product and Tambrandshave scored impressive gains through new product introductions foreign markets is expected to provide for continuinggrowth for the markets with a strong potential in the major firms in the cosmetics industry have bases for cosmeticsremains strong even during Englewood Cliffs NJ Prentice-Hall Moskowitz M Katz H H New York Standard Poor's If this 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