Articles other than soap that are intended
to be rubbed, poured, sprinkled or
sprayed on the person for purposes of
cleansing, beautifying, promoting
attractiveness or altering the appearance.
Kosmetikos – Greek word means “skilled in arranging”.
Women spend an average
of $15,000 on makeup in
their lifetimes
The average
American girl begins
using beauty
products at around
age 13 or 14
Industry Trends of Cosmetics:
1.When sports clothes are in and the no
make-up look is popular, cosmetic industry
responds with low-key cosmetics
Industry Trends of Cosmetics:
2. When bright colors and elaborate clothes
are in style, cosmetic industry responds
with more make-up and brighter colors.
The cosmetics industry is dominated
by personalities:
• Elizabeth Arden
• Helena Rubenstein
• Charles Revson
• Max Factor
• Estee Lauder
• Adrien Arpel
• Merle Norman
• Bobbie Brown
• Andrea Jung (Avon)
• Smashbox Cosmetics
(Dean &Davis Factor)
•Urban Decay
•Bare Minerals
To keep customers buying new
products and new colors,
manufacturers constantly update
and ship new items to the retailer.
Rubber-banding – cosmetic products that can
be returned to the manufacturer and replaced
with other products, if not sold within a specific
period of time.
Retailers never have to markdown their
cosmetics. (Other industries allow returns only for
damages, over-shipments or wrong shipments)
Here are the two best makeup return policies:
CVS Pharmacy: You may return beauty items open or unopened within 30 days.
Per their website:
Our hassle-free return policy allows you to return nonprescription products to any CVS/pharmacy store or by
mail within 30 days of receipt.
100% satisfaction guarantee on beauty purchases.
Be 100% happy or receive 100% money back on any beauty products. If you’re dissatisfied for any reason,
you can return the beauty product (opened or unopened) along with your receipt or invoice to any
CVS/pharmacy store. We’ll refund the full purchase price — no questions asked!
Rite Aid: You may return beauty items open or unopened within 30 days.
Per their website:
The Rite Aid 100% Risk-Free Beauty Guarantee.
Any opened or used beauty product of any brand name can be returned for a full refund when accompanied
by a register receipt. Beauty categories subject to the guarantee are skin care/depilatories, sun care,
bath/soap, hair care (shampoo, conditioner, styling and professional), hair color, cosmetics, ethnic beauty
aids, fragrances, cosmetic organizers and personal care appliances
Private label manufactures- produce
merchandise to specification under the
brand name of stores.
Ex: Volage; Neiman Marcus, Bloomies;
Federal Cosmetic Laws
The 1938 Federal Food, Drug and Cosmetics
Act was the first federal law controlling
The first is to protect the public's safety—the FDCA mandates
the safety, purity, and in some cases the "effectiveness" of the
products within its scope.
• The FDCA's second major goal is to disclose information—
the statute requires truthfulness and completeness in
product labeling and other marketing communications.
Federal Cosmetic Laws
1.Manufacturers of cosmetics are prevented from
using potentially harmful ingredients and from
making exaggerated claims about their products.
2.Adulteration (diluting) and/or misbranding are
Federal Cosmetic Laws
3.Safety of color additives must be approved.
4.Cosmetics must bear a list of ingredients in
descending order by weight.
Fragrances – includes cologne, toilet water
(lower priced, less long lasting), perfume,
after-shave lotions.
Perfumes are worn predominately by women
25-44 years old
Target Marketing – an audience that has the
most potential as product purchases.
The ability to attract the target customer is
an important factor in the success of any
fragrance. The success of a perfume
depends on attractive packaging &
aggressive promotion.
Ex. Calvin Klein’s Obsession was designed to
evoke a mood or emotion.
taylor swift perfume commercial 2014
1. National Advertising
2. Premiums – a gift with a purchase offered by a
manufacturer to promote a product.
(Originated with Estee Lauder)
•Gwp = gift with purchase
•Pwp = purchase with purchase
(specially priced purchase) ex. umbrellas, tote
3.Direct Mail
4.Scent & color strips
Cosmetic Industry Growth
• Sun care products
• Anti-aging products
• In-store salons
• Computerized displays
• Children’s fragrances
Marketing of Cosmetics & Fragrances
a.Franchise Distribution
the manufacturer sells directly to the retailer
(no middle man)
b. Mass Distribution
(middleman) Cosmetic market involves
drugstore, discount stores
Ex Revlon, Cover Girl, and Maybelline are sold everywhere
Franchise Distribution is more selective. Allows for greater control over
• Pricing
• Product display
• Selling techniques
Mass Distribution
• Maximum exposure
• As many sales opportunities as possible
Any line distributed to more than 5,000
doors is considered popular.
Any line distributed to fewer than 5,000
doors is considered limited.
Brand-line representative – a trained
cosmetician who advises customers in the
selection and use of a specific brand of
cosmetics, and handles the sale of that
brand in a retail store. Ex. MAC,Clinique
Clinique dress code
• Clinique make-up: (full face)
• Shoes: black professional
• Jewelry: minimal, no drop earrings
• Earrings: pearl, diamond stud, silver no larger
than a quarter
• Hosiery: black, nude or ivory