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B.V. PRODUCT
INTRODUCTION
Case Presentation
PRESENTED BY
Anum Humayun
Daniya Ahson
Khola Zaman
Maryam Tariq
Quratulain Zulfiqar
Sidra Ali
Sidra Izhar
INTRODUCTION
• Dutch population
under 23 years old
40% • Heaviest users of
cosmetics and
toiletries.
Fast growing
population segment:
25 or older group
4 th • In per capita
income
Netherlands
• In Per capita
6 th spending on
cosmetics
and toiletries
Dutch Market accounted for only 4% of
total EU sales of cosmetics and
USAGE OF SKINCARE PRODUCTS
BY DUTCH WOMEN
Target
spot
SALES BREAKDOWN FOR
SKIN CARE PRODUCTS
Chains unit
sales 57%
Large
Drugstores
independent
unit sales 82%
Sales unit sales 31%
Breakdown Small
Supermarkets
independent
unit sales 18%
unit sales 12%
HAIR COLORING
MARKET
Semi-permanent
Increase from 12%
to 27% Growth in unit
volume for both
types of colorant =
Permanent
15% per annum
Usage: 73% of
Dutch Women
who colored their
hair
HAIR COLORING
MARKET
Sales breakdown for hair coloring products by
type of drugstore
Food
retailers
Small
independent 3%
Large drugstores
independent
Chain drugstores 20%
drugstore 20%
37%
HAIR COLORANT
Declining
Declining
Rising
Rising
MARKET SHARE OF MAJOR
COMPETITORS IN COLORING
MARKET (1989)
Recital
(L’Oreal
Brand) 33%
Andrelon 17%
Poly
Couleur
21%
Guhl
14%
CONSUMER
BEHAVIOR
Growth 125%
Growth 43% Growth 72%
Growth 38%
Growth 27%
HAIR COLORING
MARKET RESEARCH
265
women
47% colored every 2-3
months
• Negative feedback from women after use: Majority said their hair
was too dark after using Belle Couleur and that it didn’t cover gray
Female users
of skin care
Under Above
23 23 50% of 5m
Age 15- = 2.5m
65 40% 60%
Higher
Income 2.5*0.6=1.5
Group 2.5*0.4=1m
m
ESTIMATION
Day Antiagi
Cream ng
Users Users
287500 18750
Non-users Non-users
135000 242500
422500 261250
per year per year
ASSUMPTIONS
• The sales will increase by 12% every year as the skin care market is growing
at the same rate
• Marketing Expense will be 10% of the sales, from which 60% will be of pull
strategy and 40% of push strategy
• If they like the sample it will create demand for the day cream
• Testers can also be put along with the product incase some one
did not try the sample
• As it is expensive it can be geographically placed in stores
where those customers come who can afford the product
• We can make TV advertisements which should tell the
consumers how to use it and when to use it
• It can also be promoted through being placed at seminars or
exhibitions where the target market comes, appreciates the
variety and sales are further boosted as demand increases.
PLENITUDE (LOREAL)
Price:
Prices should be kept same as Dutch women go for value. Price would reflect its quality and
brand image can be retained.
Distribution:
This anti-aging crème should be placed in cosmetics section of large stores and to retain its
brand image it should have different section and placed where viewership if customers is high.
Promotion:
1. In large malls, skin tests of customers can be done to let them know that which type of anti-
aging crème would suit their skin.
2. Celebrity endorsements in ads would increase its value and image in the eyes of
consumers. Print ads and TV ads would be the effective medium to reach large number of
people.
3. With the purchase of anti-aging crème, toner or small bottle of lotion can be offered to
women which they can keep in their bags.
Product:
Natural ingredients can be used and packaging should have all the ingredients written on it. It
should be available in different sizes.
RECITAL (HAIR COLOUR)
To increase sales of existing hair colour product of Loreal, following steps can be taken
Price:
Pricing should be kept slightly lower than newly launched products.
Product:
Lighter shades should be introduced as Dutch women were more towards using lighter
shades colours.
Distribution:
1.Sales in drug stores were high so it should be placed on those shelves where incidence
rate is high.
2.There should be availability of greater number of shades at larger stores and less and
more selling shades should be placed in small stores.
Promotion:
3.Hand gloves, hair cap, applicator and conditioning shampoo should be offered with its
purchase.
4.Celebrity endorsements and TV ads would be the most effective way of promoting it.