Introduction : Colour cosmetics are the fastest growing segment, valued at $60 million. The maj or products in colour cosmetics market are foundation, compacts, eye make-up, li psticks, nail enamels, blush-on, etc. Lipsticks and Nail Enamel account for 65% of the Color cosmetic segment. The nail polish segment is valued at Rs. 1.25 bil lions followed by the lipstick market at Rs 7 millions. All the categories in th is segment are growing at around 25-30%. Gone are the days when cosmetics were viewed as expensive and self-indulgent ite ms. Greater access to television, increased advertisement, growing awareness of western world, and greater product choice and availability have resulted in grow ing demand for cosmetic products in India. A case study on a similar company : Aravind Laboratories is the flagship of the Group of Companies engaged in the manufacture of cosmetics since 1938, when Sri Vasudevan started to make Kajal un der this Brand. Initially he manufactured Kajal (Kanmye / Katuka / Kankappu / Ka nmashi/Kohl etc.,) and Kumkum (Bindi) Chandu liquid in glass bottles. With superio r quality and unique preparations, the Brand Eyetex gained immense popularity & was sold in the then Madras State only. The Kajal was so popular that the brand became synonymous with Kajal. Cosmetics : The cosmetics market can be segregated into talcum powder, colour cosmetics (lip , eye, face, and nail care products), deodorants, and perfumes. The cosmetics ma rket has been growing at the rate of 15-20% for the last few years. The sector h as witnessed growth mainly from medium and low priced category that accounts for 90% of the cosmetic market. In March 1958, the current Promoters family headed by Late Sri A.V. Srinivasan ac quired the business. Their business expanded considerably with the launch of Kum kum (Bindi) preparations (Liquid Kumkum, Kumkum Paste, Kumkum Powder, Sticker Ku mkum, Multi-color Kumkum liquid, Kumkum pencils), Eyebrow Pencils and Eyeliner l iquid all under the brand name . The Firm expanded its range with attractive Pla stic Containers and introduced the concept of Multi Coloured Kumkum in Liquid, P aste and Powder forms. Sales Expansion : Since the 1960s the firm expanded their sales in South India by appointing the d istributors in Andhra Pradesh, Kerala and Karnataka. From mid seventies, the Fir m extended its marketing reach in North India by entering Maharashtra, Madhya Pr adesh, Orissa and Gujarat. Introduction of new product : Early seventies saw the introduction of liquid Kumkum in Plastic containers of d ifferent sizes. Matt Finish Kumkum was launched in Plastic Tubes in two sizes in mid seventies. Results : Gradually the Brand gained the top position amongst the Trade & the consumers f or these varieties; nearly 18 million pieces are sold every year in three sub br ands Poornima, Divyaa and Pallavi. Introduction of another new product with a new strategy: Mid eighties saw the launch of Kumkum Stickers under Pallavi sub Brand. Strategy adopted : Buy 1 get 1 free. This became so popular over the years that other leading brand
s have followed them by offering 2in1 Packs. New concept : The Firm upgraded the quality of the Pallavi Kumkum Stickers in 1997 by switchin g over to an exclusive non-woven based flocked fabric (only Brand in India to do so till date) & doing away with the harmful PVC based flock fabric. The manufac turing procedure was so upgraded that no part of the human skin retained any tra ces of the adhesive applied on the fabric. The adhesive never gets transferred t o the skin on the forehead and the pH of the adhesive matched that of the skin a voiding any chances of skin irritation. What they have achieved by this move : Gradually, the Brand gained immense popularity and trust from the millions of w omen who had become its loyal consumers. A variety of attractive packs, excellen t quality of the products, regular coverage of the markets with excellent after sales services resulted in becoming the market leaders in town after town and st ate after state. How did they do it : Customers experienced their marketing, sales personnel, he customer's impression of ke product performance, and
brand in numerous ways: products, packaging, price, etc. Each of these contacts or touchpoints moulded t the brand. Some of these touchpoints are obvious, li one-on-one customer interactions.
Brand became a living legend for Traditional or Religious range of Cosmetics. The ir foray into the Colour Cosmetic segment began in 1985, with the introduction of Eyeliner. Since 2002, the firm launched a wide range of Colour Cosmetics such as Mascara, Nail Polish, Lipstick, Lip Gloss, Liquid Makeup, Compact Powder, Nail Polish Remover, Liquid Lip Colour, Lip Gel, Face Powder, Talcum Powder, Eyeshado w, Combination Packs etc, under the sub brand . The Reasons For Its Success : Quality products Constant upgradation of the manufacturing processes, packaging & labelling on a regular basis. They delivered More Value for Less Money to the millions of Customers. Brand Popularity : Apart from 22 states in India the products are available in markets around the w orld where Indians are settled. Brand Extension : In 2010 Dazzler moves into personal care. Why Talcum Powder : Talcum powder is one of the most popular cosmetic products in India. Its market is valued at Rs 3.5 billions and is growing at the rate of 12% per annum. Its pe netration level is 45.4% and 25.2% in urban and rural areas respectively. Dazzler brand which is endorsed by Eyetex has moved into personal care cateogry by launching its range of Talcum powders. The brand owners - Arvind Laboratories has been investing behind this brand which is targeting the youth. Dazzler so f ar was focusing on color-cosmetics. Talcum powder is one of the most popular cosmetic products in India. Its market is valued at Rs 3.5 billions and is growing at the rate of 12% per annum. Its pe netration level is 45.4% and 25.2% in urban and rural areas respectively. Ponds dominates talcum powder market with a market share of 70%, followed by Johnson & Johnson with a market share of 15%. Dazzler has been luring the customers with its hip-hop advertisement campaigns a
nd very competitive pricing. The endorsement from Eyetex brand also helped Dazzl er to gain acceptance from the customers. The move of Dazzler to launch a talcum powder is a surprising one. The move can be qualified to be called as a brand e xtension ( category extension) because talcum powder belongs to a different cate gory (personal care) while Dazzler's products were primarily in the cosmetics se gment. Brand extensions are always tricky and these extensions will succeed only if the parent brand is significantly powerful. Dazzler itself derives support f rom the Eyetex brand and has not yet become independent. The move for this extension may be part of a larger plan to develop Dazzler as a personal care + cosmetic brand in future. Brands like Pond's, Lakme etc has suc cessfully developed themselves to be family brands endorsing a large number of p roducts across various categories. Personal care is different from color cosmeti cs interms of attributes. Dazzler may find it difficult to manage these two cate gories using same set of attributes. Having said that, Dazzler may have to set a clear direction interms of the positioning. Now Dazzler color cosmetic campaign s are depending heavily on imagery to do the talking. The entire brand is revolv ing around the " Dazzler Girl " who is imaged as a modern, stylish, fashionable and thus radiates the brand's attributes. The same imagery is shown in the Dazzl er's Talcum Powder advertisement. Dazzler now should move to become an independent brand with a clear positioning. The use of " Dazzler Girl " will give brand imagery but along with that, the br and should communicate some very relevant attributes that will support the posit ioning of a trendy fashionable brand. Competitors and their market share : Ponds dominates talcum powder market with a market share of 70%, followed by Joh nson & Johnson with a market share of 15%.
