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Marketing And Finance of Cosmetic Industry

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In India have always been dominated by global brands partly by adoption, partly by imports. Imports were made through Indians traveling abroad on NRI coming to INDIA. With the liberalization policies seen to and the entry of foreign brands have become easy. However the Indian Market was also served by a number o traditional cosmetics, which segment was dominated by the informal or the small industry the value of the output of cosmetic industry is estimated at Rs. 12.5 bn in the organized sector the informal sector produces about one third by value and much higher by volume the total market is of the order of Rs. 19 to 20 bn. It has witnessed a growth rate of 12 to 18% annually. Despite the downward trend in the demand of large number of consume product, the cosmetic industry continues to grow at a high rate basically because of the entry of the new players and new products and globally known brands. This could also be due to the essentially function of some of the product such as talcum powder and those having relatively how per unit value. The excise duty of cosmetic to as high as 120% which was lowered to 30% this has helped to boost demand teen ager is the target to all brand builder although the major use segment is the adult women starting from 200 the up-end market is expected to grow at the rate of 15% and might pick up a rate of 20% from the present market value level or Rs. 16 bn. The introduction of the herbal segment is a relatively new element. It is estimated to have logged a turnover of over Rs. 4.0 bn Dabur India is emerging as a strong force. With its past history, the talcum powder the leading segment by volume although in value term it is the third largest product. The total demand of talcum powder is estimated at around 20000 ton per annum. The other two important items where facial creams including fairness creams and lipsticks. Ponds India has been the dominant producer with the market share of over 50% of the total demand of talcum powder produced by the organized sector. Godrej follows at second sport with a market share of 10% followed by Lakme with a relatively small share of 5%. In new entrant is ZEE, which has the potential to emerge as an important player is long run. The talcum powder section has grown steadily at an annual rate of 8 to 10%. Indications are that this rate should be sustained over the next five years. The rural market in particular offers a high potential. The urban market at a penetration co-efficient of 0.6 is fairly high although not at the peak. Only since 1980’s and especially after the 1990’s other cosmetics entered the market in a big way. Beauty creams have turnover of about 1.50 bn of this Hindustan levers fail and lovely has a share of 50% in the fairness cream market covers cold creams, fairness cream skin toners and moisturizers with an annual turnover of 6.0 bn. The other major Indian players are Lakme, Ponds and Nivea. The colour cosmetic are spreading like a fire from metros and mega cities to smaller cities and towns, from working women to non working women from the very affluent to the core and even to the lower middle class. It is gaining increasing penetrations into rural areas as well. The value of colour cosmetics is relatively low. It is basically due to low income and educational leave among the women in India. It is limited both in users spread and product spread. Bindi and Sindoor had been the cultural symbols; lipsticks and sophisticated nail polishes are now catching up. Even bindi, a cottage industry’s motive is becoming a big business. The low lead players in colour cosmetics have been Lakme and paramount cosmetic Ltd. formally Tips and Toes Ltd. the former has enjoyed 40% of the market of the organized brands. AT the lower end are alpha and blue heaven. Lakmes popular brand ORCHID might also full in this category it is Lakeme which is taking on the international competition in the domestic market Tips & Toes cosmetics made losses in 1998-1999 it is reported that fem care pharma might not survive. The average annual growth rate of the colour cosmetic market during the last five years of the order of 16% Lakme at the top is estimated to grow at a rate of 25% annually. It had entered into a joint venture on 50:50. Bases with Hindustan Lever under the name of the Lakme Lever Limited. HLL was to handle sales and marketing. The company was expected to deal with both the domestic and foreign market. It was also to handle Unilever UKs brand namely Elizabeth Arden, Calvin Klien and Rimnel.

Number of Pages of Project Report: 162
Package Includes: Project Report
Project Format: Document (.doc)

Table of Contents of Project Report:
1. An overview of Cosmetic Industry
2. Product profile
3. Manufacturing process
4. Raw material
5. Industrial profile
6. Pricing strategy
7. Promotional tools and techniques
8. Distribution network
9. Quality standards
10. Leading players
11. Future trends and challenges
12. Global concentration
13. Technical changes and new developments
14. Governments rules and policies
15. Role of Ayurvedic
16. Product positioning
17. Recommendations
18. Conclusions
19. Bibliography

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