Colour Cosmetics - Brand Launch


I.  Market Analysis

a.  Overview
b.  Brands
c.  Distribution
d.  Price
e.  Positioning
f.  Distribution
g.  Communication
II.  Methods of selling and building innovation
III.  Current consumer behaviour for this category
a. Segmentation and Targeting
b. Purchase Process
IV.  Market opportunity based on research
a. Need Gap Mapping
b. Questionnare
V.  Plan
a.  Product Mix
b.  Price
c.  Packaging
d.  Positioning
e.  Place (including. Methods of Sale)
f.  Promotion & Communication
VI.  Brand Name
VII.  Brand Personality


India, with a population of nearly a billion people, is a country of contrasts. India's urban population is the main engine that fuels the demand for various cosmetic products. Although Indians are strongly attached and committed to their traditions, and culture, the advent of television and the awareness of the western world is changing the tastes and customs of India. The ‘morphing’ of India is subtle and the changes are not visible for the first time visitor. However, the market liberalization process that began in 1991, along with the crowning of three Indians as Miss World and Miss Universe during the preceding four years, have made Indian women conscious of their appearance. Consequently, the cosmetic consumption patterns of Indian women have changed, and this trend is fuelling growth in the cosmetic sector.

The Indian cosmetics and toiletries market grew by 8.7% in current value terms in 2001, with value sales amounting to Rs126 billion. In 1999 the Indian cosmetics and toiletries market grew 8% over 1998. Total value since 1995 was 54% in current terms, equating to 25% in constant terms.

The increasing size of the middle-class population in India, representing a growth in disposable incomes, has led to more consumers for the cosmetics and toiletries market. Such consumers are more inclined to purchase higher-priced products.

Most multinationals that entered the market have however revised their estimates of the number of consumers able to buy their products. Optimism has been tempered by a gradual dawning of the fact that middle-class India is not as big or as active as many marketers had believed.

Spending on Cosmetics and Toiletries Slowed at the End of the 1990s (Fig 1.1)

The size of India's colour cosmetics market is Rs 250 crore. That of fragrances is Rs 85 crore while the skincare market size is larger at Rs 400 crore. While lipsticks account for nearly a third of the colour cosmetics market at Rs 90-100 crore, the market for nail enamels is estimated at around Rs 110 crore. The remainder consists of products such as mascara, eye-liners etc.

The market for cosmetics and toiletries in India is characterized by high volume sales of low-end toiletry products, while at the same time the legendary emerging middle-class has generally been fuelling demand for cosmetics and upper-mass toiletries.

Products that are too specialized have yet to be successful on the Indian market. Examples include toners, hand care and other value-added skin care products, bath & shower products and aftershave balm. Only the richest consumers can afford these; indeed, the average consumer may be unaware of their purpose or even existence. This also explains the relatively poor showing of perfumes, especially the premium variety.

Most major cosmetic companies profess the need to tap the upper market segment and create exclusive products, but market studies reveal that most cosmetic users are unwilling to cough up more to buy these exclusive products. Only 40 per cent of Lakme's customers expressed their willingness to pay more in anticipation of superior quality.

When the domestic players have looked at the premium segment they have adopted a very cautious approach. For instance Lakme has now introduced its export range `Wild Orchid' into the domestic market and also recently launched `ultra premium' range. But these are limited product ranges mainly in the perfumes and colour cosmetics segment.

Indeed a more recent feature across all sectors, whether basic toiletries or more luxury products, such as colour cosmetics, has been for manufacturers to concentrate on the mass market. For toiletries, this is a result of many consumers trading down, forcing manufacturers to respond. In skin care and colour cosmetics, it is more a result of trying to increase demand in the growing market for mass products, especially among teenagers.

Mass-Market Products are the Norm for Cosmetics and Toiletries Products in India (Fig1.2)

Brand image and high degree of consumer acceptability need to be established in the personal products sector, and call for heavy promotional investments in awareness building, besides tie-ups with good FMCG companies to leverage their distribution strengths. The growth of direct marketing as an alternative channel without incurring high promotional and developmental costs needs to be evaluated by new entrants in the sector, in order to formulate the most appropriate market development strategy for their products.

The Brands

Since market liberalization, several multinational companies, such as Revlon, Coty, Oriflame, Chambor, Avon, Yardley, Nina Ricci, Garnier Laboratories, and L'oreal, have entered the Indian market. These companies initially cashed in on their international brand image; however, repeat purchases were not forthcoming because the products were not priced competitively. Consequently, these companies became price-sensitive and most of the international brands are now priced competitively in the Indian market.

The colour cosmetic segment which has Indian players such as Lakme Lever, Tips & Toes and Shenaz Hussain and multinational company players such as J. L. Morrison, Ponds, Unilever and Colgate Palmolive, offers the highest competition. Domestic players like Lakme, Tips & Toes and My Fair Lady, mainly dominate this market.

Revlon has a market share of 80% in the premium market. Lakme is the overall market leader in the colour cosmetic segment (lip care and nail enamel) with a wide range of products and prices, both. The organised colour cosmetics market is estimated at Rs 340 crore currently. Revlon's sales account for Rs 60 crore of that. Lakme leads the market with sales of Rs 100 crore. Lakme, has recently joined forces with Hindustan Lever Limited (HLL) and calls itself Lakme-Lever.

Other international brands in the sector include L'Oreal, Revlon, Maybelline, Benckiser and Avon with a major part of the rest, some of them engaged in the multi-level-marketing model for their products.

The most important global players are already in India (except perhaps Estee Lauder, Mary Ann Kay, Kao and Body Shop) and are in an advanced stage of market development. They are already exploiting prospects based on imports of active ingredients, packaging and completely built products. In that regard, new entrants have to contend with serious competition in India from local as well as global players.

Multinationals feel that Indian companies - Lakme, Pond's, Nivea-makers J. L.Morrison and Tips & Toes makers Paramount Cosmetics - have not identified the changing needs of the new Indian woman. It is therefore that Switzerland's Torstone's Chambor, Sweden's Oriflame, USA's Avon Cosmetics, Revlon, Benckiser (Coty Vitacare), Paris-based Escada group and Laboratories Garnier (Synergie) are ambitiously fishing in the Indian waters. It is not coincidence that many of these MNCs entered the Indian market in the mid-Nineties. Fired with the zeal of changing the complexion of the cosmetics market, they are fuelling the change using satellite television, women's magazines and beauty pageants.

Maybelline competes with Revlon and Lakme in the colour cosmetics market in India. Revlon too has grown 65 per cent to strengthen its share to 13 per cent during the period. As per the data, Lakme's share stands at 34 per cent, and that of Elle 18 is 25 per cent - both of which have suffered a de-growth over the previous period. The lip and nail colour market, at Rs 107 crore, has registered a growth of 11 per cent.

Mass market products account for a major share, around 70 per cent, while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels.


‘The mass market for lipsticks (price range between Rs 30 to Rs 100) forms 43 per cent of the total lipsticks market. The price range below Rs 30 forms roughly 48 per cent of the market. The mass premium segment (price range Rs 100 plus) is just nine per cent of the total lipsticks market, where Revlon has a market share of 80 per cent, according to ORG, with the balance held by Chambor and Lakme's Orchid.’

Lakme’s product range consists of the Elle range (priced at around Rs 30) and the medium-priced Ultra range (at around Rs 60) to the premium Orchid range of colour cosmetics priced in the range of Rs 120 to Rs 187.

French multinational L'Oreal India prices range from Rs.300 to Rs 1,500. By the end of 2001, it expects nearly 50 cities to be selling the products.

Maybelline has now introduced an Express MakeUp priced at Rs 299. L'Oreal's product of makeup currently available in the market is priced at the premium end at Rs 599. The brand is currently available in 4,000 outlets. Maybelline New York globally has 900 SKUs in colour cosmetics.

In competition with L'Oreal's Maybelline range of `transfer-resistant' lipsticks, Revlon has rolled out `ColorStay' lipsticks priced at Rs 239. The lipsticks are thus at a high premium to the Maybelline range priced at Rs 185.

‘The nail enamel market, one of the fastest growing segments in the cosmetic industry, is segmented into three: the mass premium segment priced above Rs 75, and dominated by brands such as Chambor, Orchids, and Revlon; the mass market segment priced between Rs 30 and Rs 75, with brands such as Lakme and Maybelline; and the lower segment, priced below Rs 30. Accounting for 75 per cent of the total market, the popular segment consists of Elle 18, Tips & Toes and other regional brands.’

The prices of the more popular products of the key players in the category are enclosed herein.


2. NAIL ENAMEL  48/-
4. LIP LINERS 32/-
5. COMPACT 51 & 155/-
6. FOUNDATIONS 52,55,59/-
7. REMOVER 27.50/-
9. MASCARA 95/-
10. FACE POWDER 22/-
11. KAJAL 24/-
12. EYE PENCIL 12/-
13. BLUSHERS 95/-
14. EYE SHADOWS 95/-




11. MINI NAIL ENAMEL (8 ML) 55/-
12. NAIL ENAMEL (15 ML) 85,95/-
15. BLUSH-ON 200/-
16. EYE SHADOWS 225/-


4. BLUSH ON Rs.395 /-
5. EYE LINER Rs.250 /-
6. MASCARA  Rs.250 /-
7. EYE PENCILS Rs.125 /-
8. LIP STICKS Rs300 /-
9. LIP PENCILS Rs.150 /-
10. GLITTER STICK Rs.280 /-
11. SILVER DUST Rs.375 /-
12. LIP CRAYON Rs.345 /-
13. NAIL ENAMEL Rs.195 /-
14. TWIN SHARPNER Rs.95 /-


The first challenge that the colour cosmetics industry had to face was to undo the negative connotations attached with "Being fashionable". Further they also had to dispel the fears that colour cosmetics are harmful for the skin. They had to help the people to learn to adopt cosmetics as an essential part of daily grooming.

In this industry positioning is carried out mainly by advertisements. Lakme has always advertised in the various mass media available. It also has a very good distribution network. For instance, its premium brand Orchids has followed the path of Chambor, and is placed only in large and reputed retail stores

To position them strongly amongst the 6 million youth section Lakme came up with Elle18 in early 1996. It was advertised for the "Young girl who breaks the rules and loves to have fun". These ads showed young, college and high school going girls who projected the image of trying to be different and "cool".

In the premium segment Lakme has introduced another player, Aviance, which has been position as "customized beauty solutions". The distribution is handled by network marketing, which consists of a number of beauty consultants, mainly belonging to the upper-middle class, who have been well trained and are well groomed to spread the Aviance beauty gospel.


There are three categories of channels of distribution -

Prestige - Department stores, specialty stores and chain department stores, such as
Macy's, Neiman-Marcus and J.C. Penney (internationally) and Shoppers’ Stop, VAMA, Westside, Bombay Stores etc (nationally).

Broad - Drug stores, food stores, cosmetic discounters, warehouse clubs, and mass merchandisers. Examples are Eckerd, Pathmark, Cosmetic Center, Sam's Price Club
and Wal-Mart (internationally) and Satyam, Haiko, Sahkari Bhandar etc. (nationally)

Alternative - is identified by five different marketing methods:

o Direct Sales
o Direct Mail/TV/Print
o Free Standing Stores
o Health Food Stores
o Salons


Print is the main form of communication in the category. Sample advertisements are enclosed herein.(samples in hard copy)

Methods of selling and building innovation

Retail marketing has evolved, the consumer has become more knowledgeable and demanding, and cosmetics themselves have become more sophisticated and innovative. About the only thing that has remained constant in the cosmetics industry over the years is women’s love of cosmetics. In the U.S., most women begin wearing cosmetics before age 12 and, by age 13, almost 90 percent are using them.

Technological advances have allowed for the creation of multifunctional products — products that perform more than their basic role. For example, cosmetics that contain ceramides and vitamins, as well as UV protection are popular. Today, foundations protect from ultraviolet rays, lipsticks moisturize and mascaras thicken and condition. Multifunctional products have enjoyed much success, thanks to more discerning consumers who are demanding value for money in their colour cosmetics purchases.

· The biggest performance development in colour cosmetics has been the creation of “stay-on” products.

· Consumers have also been attracted by products that are easier to apply and convenient to use, such as pen lipsticks and fast-drying nail polishes

· Women buy the majority of their cosmetics from mass, drug or food stores where selecting products yourself is the norm.

· Estee Lauder’s research in the U.S. market showed that sales doubled when self-service was offered. Giving people the choice attracted new customers.

· Innovative technologies have allowed manufacturers to create dramatically improved cosmetic samples and to distribute samples beyond the point-of-sale, even into the home. Sampling experts agree that the most effective sampling vehicles are those designed to reach consumers at home.

· Greater product penetration in suburban and rural areas, frequent product launches and greater interest in personal grooming, especially among the younger population, drove growth. Higher levels of disposable income and lower product prices through smaller packaging sizes made cosmetic and toiletries affordable to more consumers.

· SKUs – Selling Kit Unit sizes and packaging can be effectively used to generate trial and initiate demand for a product, without compromising on price. Maybelline New York, for instance, globally has 900 SKUs in colour cosmetics.

CONSUMER BEHAVIOUR – Segmentation and Targeting

Over the last decade, women have become more confident and the negatives attached to a well-dressed woman are on the wane. People have accepted colour cosmetics as an essential part of daily grooming.


The colour cosmetics market con be broadly divided into two segments:
* Organised sector dominating 36%of the market.
* Unorganised sector catering to 64% of the market


The segments that are targeted are as follows:

* Age
Ø Youth segment (15 - 24yrs): Elle – 18
Ø Core target (24+): Lakme Radiance

* Purchasing power
Ø Affluent segment: Aviance, Orchids
Ø Middle segment: Lakme Radiance
Ø Lower segment: Lakme does not exactly cater to the lower segment but the Elle-18 range it offers is low-priced and hence can satisfy this end of the market also.

The purchase process for the category is outlined herein -


The following are Research(a) findings regarding the purchase process in the colour cosmetics category –

1. Generation of Alternatives

· Rarely an active search – not considered a significant decision – Typically 1 day long
· Variety seeking buying behaviour
· Main sources of information include Word of Mouth, TV, Point of Sale and Magazines
· Process of Perception

2. Evaluation of Alternatives

o Structured evaluation using well-defined criteria:
o Intended Purpose – Personal Use or gift etc.
o Time and purpose of use of cosmetic sought to be purchased
o General cosmetics usage habits of the individual
o Price
o Match of brand image with self-concept
o Perception of brand - popularity not an issue

3. Purchase Decision

§ Transforming a purchase intention into a purchase decision could be influenced by attitudes of others – cosmetics used are seen as a reflection of the kind of person one is

4.  Implementation

q Limited Problem Solving Behaviour
q Time and non-availability may be constraining factors
q Inertia
q Lack of loyalty
q Unanticipated Situational Factors (e.g. Reactions of salespersons)

5. Post-purchase Behaviour

¨ Satisfaction or dissatisfaction dependent on a variety of factors e.g. physical reactions (skin reactions etc.)
¨ Shelf life of the product  - how long the effect is retained

Research(a) – IIM (A) case study material on colour cosmetics, November 2002.

Market opportunity based on research

On the basis of preliminary qualitative research, we were able to identify the perceived need gaps in the category of colour cosmetics. We have listed these on three parameters, i.e. the attributes of Price, Availability and Target Audience Age Group (consumer perception).  The need gap analysis map may be interpreted as follows  -

· Y shows that a brand/brands are operating in that category.
· X shows that no brand is operating in that category.
Need Gaps –

1. Green area: It may be seen that no brand with a low price (say below Rs.30 for nail enamel) was available only in exclusive markets (as it is prudent to mass market such brands).
2. Green area (2): It may be seen that no brand with a premium price (say above Rs.75 for nail enamel) was available mass market in non-metro areas (as these fall under the premium category and costs of mass marketing do not adequately compensate revenues).
3. Orange Area: It may be seen that no brand with a premium price was targeted at the below 20 or teen audience (this may be due to the perception that purchasing power of this segment is not high)
4. Purple Area: It may be seen that no brand targeted at the below 20 age group was available exclusively in select outlets (this may be connected to the above perception as we can also see from the chart that brands available in select outlets are only of the high and premium price categories).

We then conducted quantitative research to test and confirm the hypotheses we had arrived at above. On the basis of this quantitative research, we were able to ascertain that -

a) On the basis of the research findings and subsequent project reports prepared by us, filling the first 2 need gaps were ascertained not to be profit yielding.

b) Need gaps 3 & 4 were connected as can be seen that it follows from the fact that no premium price brands are targeted at teens that there are correspondingly no brands targeted to this segment which are available only in select outlets. Though the hypotheses that the below 20 age group lacked purchasing power was true earlier, it no longer holds true as this segment is fast-moving towards the trend in US and Europe where this segment is extremely fashion conscious and a large consumer of the premium end segment as well.

We therefore decided to target the age 15-25 audiences with our premium price brands, choosing to stock only in the metros and in some select outlets, thus allowing flexibility in spite of overlapping the age 20-25 segments and stocking in non-exclusive shops a well, as this leaves adequate scope in terms of the need gaps, without a high degree of risk from over-exclusivity.
(Questionnare enclosed in hard copy)

PLAN – Product Mix

In the field of premium cosmetics not geared for mass distribution, it is not beneficial to conduct market test. We launch the products we know are going to sell because we are familiar with the field. Research goes into the types and colours of cosmetics most adequately suited to the consumer skin tone. In the initial period we are launching products along the lines of those already successful in similar markets abroad.

Keeping all the considerations in mind, we decided to bring to India an international premium brand under the Estee Lauder umbrella – Stila.  From eyes to lips, the Stila color collection consists of innovative products and shades that define simplicity and chic. These inventive products pair elements of classic beauty together with the latest beauty trends to create looks that are both fashionable and wearable. At Stila, we believe that makeup should be as personal and creative as your own signature.

Stila cosmetics are the creation of L.A. based makeup artist Jeanine Lobell. Introduced in 1994, this unique colour line contains products made of the highest quality ingredients and which consistently perform to makeup artists’ standards. Her concern for the environment led to the ingenious idea of utilizing recycled materials, aluminium and glass to package most of Stila’s products. Unique illustrations and inspiring feminine quotes were chosen to help bring these products to life adding a sense of fun and whimsy to the Stila experience.

Stila has seasonal brands, which are limited life as once a trend hits big time, the consumers do not want it anymore because that’s what people are expecting. The target audience is very conscious of fads. We hire top trend setting and predicting cosmetics professionals in the country on a consultancy basis for this purpose.

Our product line consists of the following products that will suit the Indian skin tone and can be divided into 4 categories –

1. Lips
2. Eyes
3. Face
4. Nails



Barely Lips Lipstick

Barely-there, super shiny and oh-so-sheer formula that gives lips a wash of sheer colour. Packed with natural botanicals of juniper, aloe, nettle and elderflower to keep lips moisturized and impeccable. Full-size lipstick in a perfectly portable mini case.
Usage: Swivel up and glide on.

Hip Lips Lipstick

Moisturizing lip color feels great on lips and is loaded with natural extracts; juniper, aloe, nettle and elder flower. Creamy, rich matte and pearlized shades give you something to smile about. Unique flip top case is easy and fun to use.
Usage: Pop the top and smooth over lips

MegaBites Flavorful Lipstick

Full colour lipstick-great shine, flavoured. Extra smooth formula that comes in matte or pearl shades.
Usage: Twist up and apply. Mix and match to create your own flavour

Weather Wear Antichap Lipstick

Incredible formula that combines all the benefits of a lip balm and full-color lipstick in one. Contains lip conditioners like Vitamins C & E, Shea Butter & a hint of Mint for fresh breath. Super creamy lip color withStaying Power! What more could a girl want from her lipstick!
Usage: Swivel up and apply to lips

Double Talk Lipcolor

Long-lasting and plumping color all in one! Now get the pout with color that stays! Apply the super long-lasting color to lips with wand and wait at least two minutes for it to dry. Then slick on the plumping top coat: one coat for long wear, and keep on slicking for higher shine.

Liquid Foundation

Ever found a lipstick color you loved but once on your lips, the color looked totally different? There's a simple explanation: the color of your lips can change the color of your lipstick. Never fear, there is a way of getting around such a surprise. Simply blend your Stila liquid foundation (Stay Calm or Oil Free Liquid Foundation) onto your lips and the original lipstick color will appear.

Lip Gloss

Shine Language Lip Gloss

Super shine, sheer color lip gloss in a pearlized, creamy formula. Delivers high gloss with a taste of vanilla that leaves lips ready for smooching. Pick from 6 great shades.
Usage: Sweep across lips with fingertips or brush.

Fabulizer for Lips

The most stylish mouths in town are super shiny. Turn Fabulizer's base (2-3 Clicks gets the flow going), ultra smooth applicator delivers juicy shine every time.
Usage :Apply directly to lips!

Lip Liners

One Liner For Lips

Creamy, smooth formula glides on without feathering or bleeding so you can line your lips with precision. 8 great shades you can partner up with a favourite Stila lipstick. Ready to use anytime with automatic built in self-sharpener.
Usage: Swivel up and outline lips. Fill in entire mouth for a more intense effect.

Quick Stix

Creamy lip color in an easy to use, portable pencil. Six wearable shades that defines your mouth without drying it out. Contains Jane's natural botanicals; juniper, aloe, nettle and elder flower.
Usage: Line lips and then fill them in.


Eye Shadow

Eyezing Linking Duos

Highlight and contour eye shadow shades give you the ultra-cool look you want. Collect them and link up as many pans as you want... Change them as often as you like! Create your own kit to go!
Usage: Apply the darker shade in the crease, and highlight lid and brow bone with the lighter shade. Start at inner corner of eye for and extend out in windshield wiper fashion.

Fabulizer for Eyes

The coolest way to apply eye shadow is with a pen - so easy and portable. Turn Fabulizer's base (2-3 clicks gets the flow going). Soft-tipped applicator applies shimmery colour to eyelids and stays put.
Usage: Apply directly to eyelids and flirt away!

Glimmeratzi Eye Gloss

See-through eye color loaded with glitter. For a star-struck look, Sheer Colour Glimmeratzi eye Gloss across your lids is a must!
Usage: Apply with fingertip or jane Sponge Tip Applicator.

Radiation All Over Glimmer

Highly pearlized loose powder that can be used all over - - anywhere you want to have super shimmer and glimmer. Long-wearing, lightweight formula won't crease of flake-off. Comes in 6 dazzling shades.
Usage: Dip applicator into pot, tap loose powder off, then dust all-over. For a chrome look, wet sponge tip applicator and apply.

Eye Liners

Gliding Eye Liners

Soft, smoky kohl pencils do it all: shadow, smudge, line and define. No skipping, tugging or dragging. Once it's on, it just won't budge. Added benefit: they're extra long so they're easy to control. Available in your favorite shades and fresh flashes of unexpected color.
Usage: Sharpen and line your eye lids.

Going Steady Eye Definer

Talk about eye opening! This velvet cream formula makes these sticks a dream come true! No dragging, tugging, creasing or fading. Each shade is jam packed with finely milled pearl for an incredible foil-like payoff. Smooth formula is perfect for shadow play while the pencil shape draws the perfect line.

Usage: Twist applicator and apply to eyelid.

Fan Club Washable Mascara

Washable, glossy formula rich in vitamins and botanicals like Lavendar and
Vitamin E. Gently curls lashes and won't make them brittle. Patented brush
separates lashes and gives even, perfect colour application. Safe for contact lens wearers.
Usage: Place brush at base of lashes and gently sweep upward to tip. Removes easily with soap and water.


Longwearing, oil free formula gives you a matte finish that never looks dried out or cakey. Natural, soft finish that does double duty to make eye makeup and lipstick last. Contains talc and other extracts: juniper, aloe, nettle and elder flower.
Usage: Pat puff lightly on compact, then swirl over face.

Matte Finish

To further cut down on oil, use a makeup sponge - not your fingers - to apply foundation. The natural oils on your hands can make foundation change color. Sponge application also gives you a chance to build color in certain areas.

Light, translucent loose powder for a finishing touch that can be worn alone or over foundation. Provides a soft, natural look. Oil-free formula eliminates shine. Contains talc and other extracts: juniper, aloe, nettle and elder flower. Dermatologist-tested. Comes in a sifter container for an easy, no mess application.
Usage: Shake a small amount of powder through sifter and apply to face with puff or Stila’s Super Brush.

Lightweight, loose powder disguises shine and sets makeup to a sheer, natural finish. Contains talc and botanicals: juniper, aloe, nettle and elderflower. Wear it over your favorite Stila foundation for a flawless look. Comes in a sifter container for an easy, no mess application.
Usage: Shake a small amount of powder through sifter and apply to face with puff or Super Brush.

Squeezable glitter gels loaded with pearls and fragrance available in 4 dazzling shades. Jazz up your body and hair or wherever you want to sparkle and shine. Gel goes on smooth, not sticky.
Usage: Apply with fingertips or sponge

The latest look for skin is dewy and fresh. For the Goddess in you, glide across lids, cheeks, shoulders, or anywhere you want a Stila glow! For a goddess worthy look, apply Glow Goddess in “Moonglow” to apples of cheeks, and across forehead. Make sure to blend, blend, blend in circular motion.
Usage: Apply then blend with fingertips.

Highly pearlized loose powder that can be used all over - - anywhere you want to have super shimmer and glimmer. Long-wearing, lightweight formula won't crease of flake-off. Comes in 6 dazzling shades.
Usage: Dip applicator into pot, tap loose powder off, then dust all-over. For a chrome look, wet sponge tip applicator and apply. Wow! want to have super shimmer and glimmer. Long-wearing, lightweight formula won’t crease or flake-off. Comes in 6 dazzling shades

Oil-free formula gives skin natural coverage with a smooth, flawless and natural finish. Conditions with Panthenol and Vitamin E. Don’t forget, dermatologist tested.
Usage: Pick the shade that best matches your skin tone. Shake well. Apply to face with cosmetic sponge or fingertips.

Highly advanced, oil free, liquid talc formula with SPF 8 and Vitamins C & E. Zen blend botanicals help destress skin keeping it blemish-free. Lavendar and chamomile help reduce puffiness around eyes and soothe skin. Choose from 6 shades.
Usage: Shake well ! Apply to face with cosmetic sponge or fingertips. Blend - especially at jawline.


Remarkable powdered blush formula that is streak-proof and fade-proof. Soft colors give skin a natural flush. Sweep on naturally and blend easily to skin for a look that’s true to you.
Usage: Sweep with a cosmetic brush along cheekbones, forehead, nose and chin.

Yipes. Stripes.

When applied properly you should barely notice blush. To create a really natural effect a.k.a. light touch with blush: first run your Big Blush brush over your Oil Free Finishing Powder then pick up some blusher on bristles. Then blend along cheekbones. When you see yourself looking better, STOP! Once you see the blush, you've put on too much.


Color rich, long lasting nail color that dries quickly and looks super shiny. Choose from a selection of neutral to vibrant shades with finishes of cream,pearl and glitter. Show the world how pretty your nails are!
Usage: Apply one coat, let dry. Apply another coat

If you are on the go, this is the nail polish for you! Rich, full coverage on nails in one coat. Choose from a selection of fun shades! Try more than one shade at a time for a totally customized look.
Usage: Apply single coat and let dry

Nail Shimmer

Shimmery shades of light-reflective polish last long and look glamorous day and night. Apply one coat for a soft, transparent look or layer for a more dramatic, opaque look.

Research(a) has shown that consumers use well-defined prioritised criteria in their choice of brand – e.g. Quality first – price second. The price ranges for our products introduced during the launch period are given herein.

Product Price     (Rs.)
Lipsticks         325-370
Lip Gloss       250-275
Lip Pencils     300-350
Eye Shadow  330-380
Eye Liners     290-320
Mascara        300-330
Face Powder 250-275
Glitter & Shimmer 350-400
Foundation    500-550
Blusher         540-570
Nail Paints    250-270


Industry –

The emphasis on packaging by manufacturers significantly increased during the period. Packaging sizes have been reduced, allowing low-income consumers access to the cosmetics and toiletries market.

Research(a) shows that one can significantly differentiate the product on visual appeal – colour and shape of the bottle attract attention and package size should be determined by consumer usage – providing an optimal SKU differentiates a brand due to better pricing.

Packaging should feature many clear caps and lids that show off the bright shades of lipstick and eyeshadow within, as transparent packaging plays a major role in brands where colour is a key selling point. Always having new formulas in fresh packaging keeps customers coming back for more.

Target Audience –

The Geppetto Group, a research and consulting firm, says the three essentials for appealing to teens and tweens (who comprise a part of our target consumers) are: a product should be new, different and just for them. Packaging can communicate all three essentials.

The colors of the product, the logo design, the shape of the package can all say ‘cool’.

There are practical aspects to package design for this market as well. Such as the fact that tweens have smaller hands so products should be scaled for them to hold packages comfortably. They are never home so they need products that they can take with them. This age group is very savvy about products and not easily forgiving.

Brand Stila -

Stila is known and recognized for its distinctive packaging - a signature packaging style that is environmentally safe. It is modern, chic packaging made out of recycled paper, aluminium and glass that is durable as well as distinctive.

Cost prohibits other companies from generating copycats. The packaging is considered one of the most seductive aspects of the Stila line. Internationally, the higher price point hasn't kept consumers from climbing on the Stila bandwagon. The consumer pays a prestige price for this item, and yet, because of the brand image, feels comfortable about it.

Stila has seasonal brands, as mentioned, because of which we have the paperboard packaging. The board is an environmentally friendly option and it gives the company room to grow as we can change the paper seasonally, and no new tooling is required.

On the inside of each eye shadow lid is a message of a notable woman, such as George Eliot's "A difference of taste in jokes is a great strain on the affections," or Susan B. Anthony's "Those who are really in earnest must be willing to be anything or nothing in the world's estimation."


Research(a) Findings–

· The channel of promotion/advertising is more specific to the product than the consumer base – Point of Sale advertising has the greatest impact in the category purchase.
· Frequency is a function of importance of the product in the basket and hence there is a need for repetitive advertising.
· The consumer should be able to identify with the content of ads – In the category; the end user is usually the buyer.

Target Audience

Region: Mumbai and Delhi, India
Occupation: Students and Professionals
Income: 600,000 p.a. +
Education: Gradutaes, Post-graduates, professionals
Sex: Female
Religion: Insignificant
Social class: Upper
Family life cycle: Young, single

She’s the new age generation, fashion conscious and takes care of her image. Cosmetics are a feel good factor for her, which she showcases. She’s keeps up with the trends and has her hand on the pulse of the what’s en vogue. She’s a conformist looking for a unique twist, with a subtle narcissism about her.



Occasions: Going out (college, office, party etc.)
User status: Regular
Readiness Stage: Informed
Attitude toward product: Essential part of daily accessories


Occasions: Would-be regular user as above
Benefits: Enhances beauty, Unique colors, Highest quality ingredients, Environment friendly packaging
User status: Current young consumers of Premium priced older brands
Loyalty status: None
Readiness Stage: Inquisitive (may recognise brand from international communications)
Attitude toward product: Enthusiastic, positive

· She is the kind of woman who loves life
· She is positive in her attitude towards life
· She has an individual  point of view and will act according   to her whims
· She is well groomed
· She shops with her friends
· She shops for pleasure and on impulse
· Dressing up is a part of her normal routine
· She works hard but parties harder
· She is well travelled and is aware of the international brands
· She is very quality conscious
· She is class conscious
· She is looking for variety more than anything else
· She needs to be made to feel special & unique
· She needs to be flattered and valued
· She wants to be seen at all the best places in town
· She eats at the best restaurants and parties at the best night clubs
· She is a regular party person
· She reads magazines like ELLE, COSMOPOLITAN etc
· She knows what she wants in life and knows she will get it eventually
· She is a fulfilled person

PLAN – Place

Stila Cosmetics will be launched initially in New Delhi and Mumbai. The products  will be available at Stila counters in select outlets. The entire range of Stila Colour Cosmetics will be available at all the counters.

New Delhi- Ebony, Ansal Plaza.
Mumbai- Crossroads, VAMA, Shoppers Stop, Westside (all branches of these stores).

Apart from these counters we will also have 3 customised saloons manned by our staff, which will be situated in the Greater Kailash market in New Delhi and in Breach Candy and Bandra in Mumbai. These will offer customised service to our customers. The facilities available here will include –

Free testing – Consumers can have their skin texture analysed to check if it is dry, normal or oily. Based on the results our staff will recommend the most suitable products.

Makeovers - Our highly competent staff will do makeovers for the customers depending on the look that they would like to create for themselves. E.g.- For college, office, party etc.

Customisation - Each of our saloons will have a computerised machine where we can change the colour of an existing shade as per the customer’s requirement and
show them a sample of the new shade. The improvised product will be delivered to them within 3 days.

Creating a positive buying environment sets the stage for the sale. The buying environment affects the customer’s experience in your business. Our outlets will have an environment where customers are not intimidated. It will be a ‘fun’, friendly place that makes customers want to hang out.

The buying environment will be deliberate and consistent. The customer’s experience will be much the same from visit to visit. A customer can visit multiple locations and have largely the same experience.

Changes to the regulations pertaining to imports allowed multinationals far greater access to the domestic market in the mid-1990s. Improved competitiveness led to greater efforts by the major players to produce a wide range of value for money products, thereby further stimulating demand.

Growing competition also led to greater emphasis on advertising. The government has also liberalized the advertising market and it is now a key part of marketing campaigns to increase awareness among potential consumers. The majority of consumers in India are only aware of the most basic cosmetics and toiletries products. Advertising provides a way of generating demand for the more advanced products, such as specialized skin care and perfumes.

PLAN – Methods of Sale

Our staff at points of purchase shall all be given product and make-up training, which is of utmost importance as it allows them to understand and promote the product effectively.

All our counters will have the Stila theme of colours in pinks. The saloons will be done in the same colours. Our salespeople too shall be dressed in uniforms with a visible touch of the Stila pink. They shall of course be wearing the products as it helps to demonstrate the effect the cosmetics can have and validates the cosmetics in the customer’s eyes. For this purpose, we shall also present the other sales staff at our non-exclusive outlets like Shoppers’ Stop with out products as this will generate an enthusiasm within them and also encourage them to promote our brand.

We keep a record of what we have done with every client and usually they will end up buying our makeup. Our sales effort will be based on a more personalised approach. In this case, the client may not have made a commitment to buying makeup the first visit, but having makeup applied professionally often turns a prospect into a client. We use suggestive selling without being pushy, helping our clients with what they are looking for.

At Stila, we take care of all those little things that go into making a completely enriching and enjoyable consumer experience, like having enough mirrors in our outlets.

For the final sales close, we have identified three techniques that are widely used: the assumptive close, the choice close and the consultant close. The assumptive close assumes you are making a purchase, "Would you like your cosmetics wrapped or would you like to put them right in your makeup bag? The choice close asks the client to make a choice, "Which eye shadow do you think would work best with your wardrobe?" The consultant close, "Based on what you have told me I think you will be happy with a custom blend foundation and lipstick to start with."

If our staff is not able to close the sale, they inform the prospect of our sampling program that allows the client to sample the products at home before making their purchase.

We also ensure that we maintain a comprehensive database of our clients and contact them every now and then with follow-ups and information regarding any product innovations or introductions.

PLAN – Promotion and Communication

Communication Objective

The promotion has to initially highlight Stila as an Estee Lauder brand, which is established in India and has a reputed image. This will generate brand equity and trust in the products, which will serve to initiate trial. Brand recall should be instant when the consumer sees the brand at the outlet. The communication will focus on the positioning of Stila as an aspirational brand.

Communication Medium and Style

Stila products are very popular with the stars abroad. Celebrities such as Victoria Beckham, Gwyneth Paltrow, Neve Campbell, Kirsten Dunst, Natalie Portman and Katie Holmes love Stila products. We will attempt to bring about the same endorsee-type status in India through promotional channels, which we will decide upon in consultation with a branding agency. We are currently thinking along the lines of activities like product placement, make-up shows on television or columns in print.

Pre launch PR will start a month prior to the launch. We will have articles and press releases educating the consumers about Estee Lauder Companies as well as Stila. We will also give them an introduction to the services that we are offering.

We shall send direct mailers to our potential clients and regular consumers.

We will also have a launch party where Stila creator, Jeanine Lobell will officially launch the brand in Bombay. Invitees will include a host of people from the fashion industry, the entertainment industry as well as the press. The event itself will be covered apart from fashion magazines in newspapers such as the Bombay Times. This will help in associating the brand with the celebrities that come for the launch.

Our advertising is going to be restricted to print and select hoardings. We will advertise in the elite women’s magazines Cosmopolitan, Elle, Gurlz, and Femina.

Prospecting for customers will occur outside of the business as well. Fashion shows and beauty events are venues where we will showcase our makeup and attract potential clients.

The three customised outlets will have frequent events in keeping with Stila’s activities abroad. These will include events such as the Stila U.S.A ‘double duty beauty events’ where Stila artists will talk about and teach the tricks for perfect round-the-clock makeup, such as ‘Turn 8 a.m. chic into 8 p.m. sexy in the wink of an eye’. Leading stylists and make-up artists will talk about using the Stila product and give signature makeovers to invitees at the events.

Point of Purchase

Our sales force is going to consist of freshly graduated smart young girls keeping in mind our brand image. They will go through a rigorous training program. They will be taught firstly how to groom themselves and then how to groom others. We feel that this is one area where not enough attention is paid.

As mentioned above we are going to have free testing for our clients and give free makeovers.

We will have a trained staff make house calls and other direct marketing strategies. We will also have a team specialised in doing bridal make up.

While we subscribe to the philosophy that ‘salespeople put products on the shelves and advertising takes them off’, we lay strong emphasis to an effectively trained sales force, as elaborated in the place (distribution) mix. Advertising, in the initial period especially, should generate a ‘pull’, but due to fierce competition in the category and the nature of the purchase process, it is essential that there is a positive sales-force ‘push’. By maintaining a top-notch sales force and placing our employees at point of purchase venues, we also hope to –
1. Increase stock position – Persuasive sales representatives can influence dealers to increase stock or devote more shelf space to the company’s brand.

2. Enthusiasm building – Persuasive sales representatives build dealer enthusiasm for a new product by dramatizing the planned advertising and sales promotion back-up

Revlon, for instance, spends most of its promotional money on advertising, while Avon relies more on personal selling. Since our promotion objective is not comprehension but buyer conviction, personal selling is seen as a more effective means of promotion. During the launch period however, heavy advertising will be undertaken to generate brand awareness and familiarity.

PLAN – Brand Name

Stila is from the Italian word "stilare" which means "to pen" or "to word". Jeanine Lobell, creator of Stila, believes that makeup should be as individual as your own signature.

Many of the lipsticks are named after famous women, such as 'Billie' (Holliday) or (Clare Boothe) 'Luce'. The ‘Natalie’ nail polish is named after Miss Portman.

We will be consulting a brand management firm and may consider the same using Indian iconic figures of our target audience such as sub-branding the ‘Stila Barely lips lipstick’ – ‘Ash’.

PLAN – Brand Personality

SEX: Female
AGE: 20 years


Stila is a generation X girl. She knows what she wants and how to get there. She’s the sweetheart of the gang, an Indian Julia Roberts. Stila is the first friend you think of when you want to go window-shopping or just to hang out. She’s your fashion guru and you know what’s in when you see her wearing it.