Marketing Analysis for Beauty Product Consumers

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Marketing Strategy in the Context of Retailing One has to wonder whether the Greek philosopher who coined the phrase “Beauty lies in the eye of the beholder” had a premonition into the future of a multi-billion dollar industry. Cosmetics, like fashion, have been utilized by women for centuries to help develop and display an image of what the world (or at least Hollywood) tells them is beautiful. However, unlike clothing, cosmetics are not a necessity, so the marketing of these products is marketing through persuasion so each cosmetics manufacturer (Estee Lauder, L’Oreal, etc) and the retailers who sell their products must use marketing strategies aimed at persuading women that they really do need these products. According to a recent article in Forbes, women in the United States spend approximately $10 billion every year in cosmetic purchases, ranging from candy bar priced lip gloss to moisturizer costing more per ounce than gold. These products, as well as the accessories that accompany their use and application may be purchased at multiple types of retailers: grocery stores (Fry’s, Albertson’s), drug stores (Walgreens, CVS), specialty stores (Sephora, Ulta), department stores (Macy’s, Neiman Marcus), as well as through online retailers and network marketing (Avon). For the purpose of this paper, only drug, specialty, and department stores will be observed and reported, specifically Walgreen’s, Sephora, and Macy’s, and the specific product being targeted is foundation, a make-up staple. | Product | Price | Place | Promotion | Physical | People | Process | | -Non-luxury-Household name brands-9 brands-47 products: (liquid, powder, cream, mineral)-Also: Medicines, personal needs, paper goods, photo processing | -Inexpensive-Cheapest: $3.59 Maybelline liquid foundation (Marked down from original $4.79 sale price)-Most expensive: $19.99 L’Oreal liquid

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