ANALYSIS OF COSMETIC INDUSTRY

Beauty industry makes a consumer feel beautiful. For females leaving

without makeup makes them feel incomplete therefore this has become a
ritual for them. Along with makeup other beauty factors also take place like
manicure and pedicure, haircuts and so on. Beauty industry has made
tremendous growth since its inception and is still in its evolution process and
making a remarkable performance by grabbing opportunities.
Today a number of cosmetic products and services are available in the
market which helps a consumer to look good, young and healthy. These
products exist for every style and taste as well as every skin tone, texture
and allergy. Competitive edge occurs on different perspectives like on natural
ingredients or no animal testing and so on.
Different Beauty Franchise Opportunities
Hair Care

Stylists,
salons,
shampoos/conditioners,
coloring product, styling product (gels,
sprays, etc)
Cosmetics & Make-up, moisturizing lotions, tanning
Skin care
salons, sun care products
Fragrance
Perfumes, body sprays, cologne, deodorants
Miscellaneou Nail polish, shaving products, massage
s
parlors, hair removal services
Innovation occurs when consumers demands for a product. It has a 8.5%
industry growth projection globally in 2014 whereas in 2010 it had about
3.3% growth. Rising per capita income and accessibility to international
markets are increasing at a very high scale on discretionary items like
perfumes and cosmetics. Thus the economical conditions have decreased its
spending on some discretionary products. It shows that these days though
cosmetics are female focused, men are also into fashion also and they are
also highly targeting towards body sprays, hair care products and so on.
Consumers are brand loyal when it comes to using cosmetics. Word of mouth
is considered to be more powerful than using testimonial appeal. Therefore
word of mouth has 58% weight age.
Beauty oriented franchises tend to offer diverse set of profitable franchising
opportunities that can reach to the ultimate consumers. Some of the
franchise opportunities are
a) Retail opportunity: brick and mortar stores, home based
businesses
b) Franchising distribution system

c) Specialized services: manicure and pedicure, packages

Female are likely to spend their money on makeup in order to look beautiful.
The growth of makeup products in Pakistan is rising. In 2010 it has $7.7
million of imports which rose by 29% in 2011. The local industry also includes
international companies which makes the competition intense. Body shop,
Maybelline, Loreal etc are one of the top cosmetic brands. Other local brands
are trying to come up to the top level as compared to other top brands by
increasing their product portfolio, increasing their sales through different
marketing and distribution techniques. Luscious cosmetics one of the local
brand in 2008 launched a number of its make up products claiming that it
contains animal free ingredients and because of it, it gained a good market
share due to positive consumer response. Other company Samsol began with
a small hair oil business in 1962 which extended its product line with
shampoos, hair colors, talcum powders and shaving creams.
Celebrity endorsement has also been done to promote the makeup industry
of Pakistan in which Atiqa odho is one of the top legends in the beauty icon.
Atiqa launched her own range of products with the name of Atiqa O.
Unilevers fair and lovely is also one of the growing product in the makeup
industry and second is Ponds anti aging product. There has been a great role
played by marketers in order to promote their product and its benefits to the
consumers like for example body shop lets its customers to test the product
in the shop and then let the consumer decide that whether the product is
beneficial for them or not. Saeed Gani is a chain of herbal personal care
products, hair oil based perfumes as a very popular halal product line.
Because of high usage of media these days, cosmetic companies are able to
promote and create awareness about their products. Therefore for
companies in the industry need to design the product in such a way that
meets the customers needs and demands and can satisfy them so that they
remain
loyal
to
their
brand.

BOURJOIS PARIS

INTRODUCTION

Bourjois Paris was launched in the 19th century which

was known to be one of the most fashionable brands
that provided the world class powder blushes in its
Little Round Pot rather than the can-can shape. Almost
over 150 years, these pots were loved by the
consumers as it provided with the best features of
smooth, light blend with light delightful colors. Since its inception, about
above 3.5million pots have been sold out every year across the world.
MISSION STATEMENT
The mission statement of Bourjois Paris is:
Continue to invent, create and design clever, feminine products
that simplify beauty. Make Parisian style accessible to all women by
providing
daring
looks
that
are
tasteful
and
easy
to
achieve...without breaking the bank. Enable every woman to fully
express her inner style and creativity. At Bourjois, we have
personality, and we love women who have personality, too.

In the 19th century female were not too much into putting makeup except for
actresses or female who would want to go some event or function when they
wanted to brighten up their looks very lightly. The first dry powder made by
Bourjois was ROUGE FIN DE THEATRE.
Later on in 1863 he changed the product from dry to a baked colored powder
which could easily be blended to the skin and would give a beautiful touch to
the females face. It gave a natural look to the face. It was in shape of dome
and its process was leaving it in a dry room to dry bake it in the Bourjois
Factory in Paris which was then further passed on to the theatre and then to
the ultimate consumers in order to provide them with the best quality
superior products.
Further in 1879, the famous pots of Bourjois were given unique names in
order to describe its color like for pink it was give a name of Rosette Brune
and so on. One of its classic shades Cendre de Rose Brune is still one of the
most favorite products for consumers which still exist today. In 1914, it
changed its packaging style and had a very unique packaging in a way that
the pot color matched the shade color inside though the design was same till
1950s but after that these same pots were produced in a more modern
material. In 1980s it extended its product line to eye shades. Still the
evolution of these pots takes place in a modernized way which includes
different colors, mirrors, applications etc.

Even Bourjois provides their customers with free make up advices of how to
apply foundations, eye shadows giving it a smoky look and other types of
advices too related to applying makeup.
The brand further extended its product line to waxy makeup sticks in
different shades sold in different names which the consumer felt that the
product is amusing like Jealous, Lovesick etc. these products were specifically
made for theatre actors by Joseph Albert Ponsin. With time the product line
became a success and was majority used by the actors and actresses. It had
a tagline of Special Manufacturer of Products for Feminine Beauty on the
boxes named Supplier for the Theatre was a success.

It later on introduced mascaras with the name of Coup de Theatre, loose

powder eye shadow in boxes along with a makeup brush which could easily
catch the right amount of powder and applied on the skin without wasting it.
Further it extended to launch a facial cleansing product to remove makeup.
It then started selling different shades of lip sticks about more than 400
shades each year. These shades were made by Helene who had a track of
the upcoming trends about fashion and then made the product according
with guarantee that it would benefit the consumer in the best possible way
with its high quality range of products.
MOTIVATION FACTOR
Freedom of expression about strength and beauty which meets the needs of
the female and they are satisfied in return.
The team of Bourjois includes managers, packaging engineers, formulators
who tend to make heavy efforts in order to design the product which meets
the needs of the consumers with the provision of high quality products. The
team is into continuous innovative process.
For male, a range of products included perfumed sachets, toothpastes,
Hungarian pomade. The overall performance and position of the company
was profitable.
One of its famous perfume Soir de Paris designed by Ernest Beaux was
developed during mid night in blue colored bottle which was later on named
as Evening in Paris and ultimately became a success as it catered to the
middle class.
In 1930s, different range products were introduced by Bourjois according to
the budget of the consumers which included from makeup to perfumes.
Music boxes were introduced in 1958 which used to play Forever and Ever.
In this way they started to be creative.

PRODUCTS

COMPETITOR ANALYSIS
Bourjois paris in order to remain
competitive in the Pakistani market, it needs to strive its position among the
emerging competitors. Currently the two major competitors of Bourjois Paris
are Loreal and Maybelline.

MAJOR COMPETITOR: LOREAL

Loreal is one of the most devoted businesses in the field of beauty of both
men and women throughout the world as it aims in meeting the needs of
their consumers by satisfying their beauty needs.
MISSION STATEMENT

Loreals mission is to offer all men and women worldwide the best of
cosmetics innovation in terms of quality, efficacy and safety. It pursues the
goal by meeting the infinite diversity of beauty needs and desires all over
the world. (Beauty is a language)
Loreal is into continuous research in order to gain knowledge about the
consumer insights and accordingly invent the product which could satisfy
their needs. (Beauty is a science)
LOreal likes to face challenges as it is a source of inspiration and creativity
for them. (Beauty is a commitment)
L'Oreal has a diversification in terms of its brand portfolio which has made
the brand a universal one. (Offering beauty for all)
DIGITAL MARKETING OF LOREAL
Loreal is too much into digital marketing. Its 360 degree communication
makes its possible for them to communicate with the customers all the time
and know what their insights are so that they can provide value to them and
satisfy them and keep them engaged with the brand which in turns maintains
its brand image and positioning. Their digital campaign takes place through
their retail websites, face book.
MOBILE COUPON CAMPAIGN
L'Oreal along with Walgreens and Duane Reade did a mobile coupon
campaign in order to create an idea of connecting the mobile ads to real
world purchases.

Basically this ad was that women who have coupons with popular womens
beauty app Pretty in my pocket (PRIMP) could redeem their coupons at
Walgreens or Duane Reade stores. Each coupon had a unique barcode the
purchases could be linked to the consumers PRIMP profile. In this way
L'Oreal is able to identify that who are the customers who use their coupons
for the items to be purchased and which are the most frequents products
that consumers prefer.
XBOX 360
Loreal through the gaming territory that is XBOX 360 app is able to
personalized the world of beauty, style and entertainment in which

consumers can take part by taking tips from personal stylist. Through this
app the consumers can make new friends and experience and the more Style
Cred points a consumer earns the more he or she is able to redeem them.

Video
L'Oreal through an online video is doing a marketing campaign in which it
uses real people rather than adopting a celebrity endorsement in order to
promote its aim of Beauty for all. Videos available on Youtube which is
released as a star studded campaign with celebrities like Jennifer lopez and
Cheryl cole etc. it basically has a concept of globalization which means that
clear respect for differences.
FACEBOOK
The facebook page of L'Oreal showcases the products of the company and
engages and involves the audience in a digital experience through various
activities.

MAYBELLINE
Maybelline is one of the top brands in the cosmetic industry which offers a
variety of products to its consumers which makes them look beautiful and let
them display their own creativity and individuality.
DIGITAL MARKETING OF MAYBELLINE
Maybelline has used platforms like Face book, twitter and instagram in order
to launch its product and engage its customers to take part. It offers a
number of products which can meet the customers needs. It also allows
female to apply nail art and also tutorials are given on the application. It has
a video of Do it yourself.
WEBSITE

FACEBOOK

TWITTER

INSTAGRAM

COMPETITIVE MAPPING

PRICE

QUALITY

SOCIAL FUNNEL FOR BOURJOIS PARIS

In order to carry out the digital campaign we have used digital marketing
tools in order to promote the brand that is Bourjois Paris. Social network site
has been used that is facebook which is a channel used to target out
audience and find out our prospects.
Facebook as a channel would be helpful in reaching our target audience in
which most of them would be our subscribers who would be following our
page, would be keen to gather information about the upcoming products and
services and activities and there would be a two way communication
between the owner and the consumers.
Not all of the subscribers are engaged and would be interested but some of
them who would take active part would be engagers as they would be keen
to know about the product and would want to engage with the brand and
participate in activities and competition. They basically want to interact.

Some engagers would then be prospects as the consumers feel that this
product can benefit them and the owner also feels that he is the potential
customer who would want to actually make a purchase decision and would
also create a positive word of mouth.
Those consumers who actually make a purchase are turned into conversions.
Though these customers may be a small ratio of subscribers.

RESEARCH
PRIMARY RESEARCH ANALYSIS
A survey was conducted to acquire information regarding consumers
preferences in the make-up category, their knowledge about the Bourjois
Paris brand and its make-up range. An online questionnaire was prepared
with a combination of open-ended and closed-ended questions. Closedended questions were used where brief, one-word answers were required
while the open-ended questions enabled us to test the consumers memory
and learn about their perceptions regarding Bourjois Paris and its make-up
range.
The objective of this survey was to find out the level of awareness for the
Bourjois Paris make-up products and peoples perception regarding Bourjois
Paris make-up products in order to identify any market gap or any untapped
area. A random sample of 65 participants was chosen for this survey which
was close to the representative sample. The target audience for Bourjois
Paris is mainly women (housewives and working women) in the age group
25-50 and belonging to urban areas. Thus, 78% of the survey participants
were females while 22% of the participants were males. 55% of the sample
fell under the age group of less than thirty (<30), while the remaining 45%
belonged to the age group thirty and above (>30).
When asked what type of make-up they prefer, 62% of the participants said
they prefer foreign brands of make-up. However, when asked if they like
wearing makeup, a large majority (90%) said yes. When asked how often
they wear makeup, most of them (83%) said that they wear makeup every
day, (17%) said occasionally. Moreover, the participants are well aware of

most kinds of makeup, especially Liquid Foundation, Mascara and Blush.

Majority of the sample (70%) preferred having that foundation or blush which
was mineralized, oil free and had a long lasting coverage. The reason for this
could be the climate factor especially in Karachi where due to the moisture a
lot of sweat is generated which can affect the durability of the makeup
product whereas (30%) wanted mascara which helped in elongating their
lashes and also water proof so it would not smudge.
Few open-ended questions were asked which gave us an insight into
consumer preferences regarding makeup brands in Pakistan. Most of the
respondents were able to recall LOreal and Maybelline when asked to recall
some brands of makeup. Bourjois Paris is the market leader in Blush
category. However, LOreal seemed to be top-of-the-mind in the makeup
category since more people were able to recall it than they were able to
recall Bourjois Paris. Possible reason for this could be that LOreal has
focused more on advertising and has a larger share of consumers over
Bourjois Paris. Also LOreal has used celebrities like Aishwarya Rai, Diana
Penty, Sonam Kapoor for their International Campaign and for their local
campaign they have used Misha Shafi, Mehreen Syed, Sabina Pasha and
Sanam Saeed which are synonymous with the Media Industry of Pakistan.
Very few were able to recall Maybelline, the third largest player in the
makeup market. Most of the respondents buy LOreal or Bourjois Paris, which
shows they are willing to buy any of these two brands depending on factors
such as availability, promotion packs, etc.
Participants were asked what comes in their mind when they think of
makeup. This question was asked to identify the associations they have with
makeup in their minds. The four things that are commonly associated with
pasta, as shown from the survey results, are beauty, confidence, beauty
pageants and personality enhancing.
According to the respondents, the most important factor when purchasing
makeup products is quality (60%). Second most important factor is brand
name (40%). Respondents gave very little importance to price (3%). This
shows that the consumers do not really go for the price in the makeup
category. If they try a certain brand and are satisfied with its quality, they
would continue to purchase that brand. If the brand is not available, they can
easily substitute it with another good quality brand. Example if LOreal is not
available then they will buy Bourjois Paris.

Awareness is minimum for the Bourjois Paris. All the participants are aware of
the brand Bourjois Paris. When asked to name some products of Bourjois
Paris, many of the respondents were able to recall Rouge (blush) and Liquid
Healthy Mix Foundation .
Consumer Insights from this research:

Consumers prefer Foreign Brands for Make up

LOreal is TOM (Top of the mind) brand in the makeup category
Make up is commonly associated with enhancing beauty, personality
and also boosting confidence.
Quality is the most important factor when purchasing make up
Bourjois Paris has awareness amongst consumers and commonly is
associated with Liquid Foundation and Blush.
Consumers are aware of Bourjois Paris and usually use their Blush and
Liquid Foundation

Problem Identification:

Bourjois Paris has not done any ATL or BTL activity with the exception
of their distribution racks at leading retail stores.
Consumers have not explored the entire range as yet as they are
limited to only two to three products.

SECONDARY RESEARCH
Market Trends
In 2012, makeup sales grew by 14% as compared to the 12% CAGR growth
of the entire review period. This was a direct result of urbanization which
increased throughout the review period, as well as greater acceptance of
makeup as consumers became more influenced by Western Media. The
women in Pakistan are moving towards westernization and as more women
have started to work they like to use make up as a boost to their personality
and self esteem. Now big departmental stores in Karachi, Lahore and
Islamabad have aisles where these branded make up are available. As more
salons are emerging people are getting educated as to how to use make up
etc. Also salons are offering make up courses which at minimum prices
girls/women alike learn and apply on themselves.
Competitive Landscape
There are three main players in the makeup market of Pakistan:

LOreal
Bourjois Paris
Maybelline

Market Shares 2012

25%
35%

14%
26%

Loreal leads the market with a 35% value share. This company is followed by
Bourjois Paris, holding a 26% value share, 25% is value share is with
Maybelline and 14% by others.

Future Prospects:
Increasing urbanization and westernization is the key trend to watch for
make up sales growth. Since makeup is relatively expensive compared to
other things, volume gains will be from the cities first, then spreading to the
suburban and rural areas. Make up sales are forecast to grow by a CAGR of
8% in 2013-2017 period. With anticipated growth in the cities, expanding
distribution and growing demand are set to support such growth.
Furthermore, as consumer habits of wearing makeup projected to grow by a
CAGR of 5% in 2013-2017. These will be strong pointers for growth.
Bourjois Paris and its Marketing Activities:
Bourjois Paris has done promotional displays in the departmental stores
giving free gifts etc and due to their limited rights in Pakistan, they have not
done much in ATL or BTL.

MARKETING ACTIVITIES

ROUTINE OF TARGET AUDIENCE ON DIGITAL

Facebook: want something unique and want to be kept updated
Videos: want to gain experience and learn on how to apply makeup at home
rather than rushing to go to parlors etc.
Other interest: gossips, hangouts, home shopping etc
Female prefer to purchase through online websites.
Trends
Females through smart phones can download videos about the
application of makeup. They can order online also through these smart
phones.
DIGITAL MARKETING

Digital Objectives:
1. To create top of the mind (TOM) for Bourjois Paris
2. To develop a strong bond with the target audience that compel to them
make a repurchase and become loyal to the brand.

Online Pakistani Women Stats:

In Pakistan the use of social networking is increasing with time especially
Facebook. The number of people using facebook has crossed 8 million in
2012 dec which ranks Pakistan 28 th position in the world. It shows that from
June till December there has been an increase by approximately more than
60% which shows that there is a high usage of facebook In Pakistan.
Below is the chart which shows the division of users by age group:

The below is the chat which shows the division of female and male using
facebook

This is the chart which shows the usage of facebook by female in different
age groups.

FACEBOOK
through facebook, we have an opportunity to reach our target audience as
majority of the female are mostly on facebook during their free time and
they want some new happenings about the brands and other things.

Facebook

Strategy:

1) keep up to date information about the new happenings

2) Involve customers in activities in order to keep them active
3) Would create tabs
4) Content generation that would be eye catching to the consumers.

Suggested Tabs on Facebook:

1) videos
Consumers can learn how to apply makeup

2) competition
if any competition takes place the consumers can take part and win
prizes
3) order
consumers can go through the album and order it online

online

CONCLUSION
For Bourjois paris in order to be on top of the mind of the consumers, it
needs to be active on digital network like facebook and other platforms so
that the consumers can take part and engage with the brand. There must be
a two way communication between the brand and the consumers. Through
different competitions, activities and updated information the consumer can
take part and would likely to prefer the brand. Other than this Bourjois Paris
needs to respond to customers queries immediately