3 competitors marketing strategy

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TOOBASHAFIQUE
BBA PART4TH
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FINANCESPECIALIZATION
ROLL# 30TH
SECONDASSIGNMENTOFENTREPRENEURSHIP
SUBMITTEDTO:MA’AMTANIAMEMONMUSHTAQUE

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1ST
Competitor “L’Oreal”
Introduction:
L’Oreal is the largest company in the world that deals in personal care industry. Founded in the
year 1909, this international beauty and cosmetics company has its head office in Paris. L’Oreal
has a vast and varied interest, as it also is active in fields like tissue engineering, toxicology,
dermatology and biopharmaceutical research. Some of the companies who provides L’Oreal with
competition in Pakistan.
Product Strategyof L’Oreal:
L’Oreal has a portfolio endowed with international standard of brands covering a wide range of
products while satisfying the needs of every customer present in any part of the world. All its
products pass the international standards of testing. The company deals in activities related to
cosmetics, skin care, hair color, make-up, sun protection, hair care and perfumes. In Pakistan
L’Oreal has a wide portfolio of brands under them. The marketing mix product strategy can be
understood by analyzing their entire portfolio. They produce products related to all beauty and
cosmetics under four major divisions namely:

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• L’Oreal Luxe: Kiehl’s, Lancôme, Yves Saint Laurent, Ralph Lauren, Giorgio Armani, Diesel,
Clarisonic
• Consumer Products division: L’Oreal Paris, Garnier, Maybelline New York, Shampoo
• Active Cosmetics division: Vichy, La Roche-Posay. Sanoflore
• Professional Products division: L’Oreal Professional Paris, Kerasotes, Matrix
• The Body Shop
Under these product divisions L’Oreal have products like eye-liner, mascara, eye shadow, nail
polish, nail polish remover, lipstick, lip-liner, lip gloss, cleanser, foundation, concealer, and
blush for face, hair color in various shades, hair care, shampoos, conditioner, toners, hair spray
and serum. All these are produced and innovated based on customer preferences and needs.
These are available in different sizes and price ranges. L’Oreal products are properly tested as
per international testing standards without harming any animals in the process.
Price Strategyof L’Oreal:
L’Oreal is one of the leading global cosmetic brands. The consumer products division brands are
distributed in retail channels making it available to the mass market. As a result they earn huge
profits from this division. The professional products are available at salons worldwide so when a
customer visits these salons they are ready to pay for these products as they are not priced very
high. The Luxe division products are available at supermarkets, cosmetics stores, own brand
outlets and even online. However, these products have a premium price and customers are even
ready to pay a premium for these products owing to quality and reliability over competitors.
L’Oreal prefers to maintain value based pricing strategies for most of their products. L’Oreal is
trying to price the products in India comparable to those worldwide by increasing the number of
stock keeping units. L’Oreal always brings about innovations across their various product
divisions thereby penetrating the market with different price levels. Thus, the pricing strategy in
the marketing mix of L’Oreal is based on premium pricing, competition, geography served and
product demand.
Sometimes, in order to penetrate a new section of the market, the company has offered discounts
and schemes especially on introductory products. This leads to the minimization of prices and
leads to an increase in sales figure resulting in further revenues. In order to strike a reasonable
balance between its products and prices the company has taken steps to increase its Stock
Keeping Units, as this will help in creating a balance over the pricing policies.
Distribution Strategy of L’Oreal:
L’Oreal has development and research centers in six places worldwide like Japan, France US and
China and its products are available in one hundred and thirty countries of the world. The various
products are found in various outlets like perfumeries, hair salons, super markets, pharmacies,

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beauty outlets and even through direct mail. Besides this, the brand has its own website and has
tie-ups with other shopping sites on internet.
With all the needed product information, the consumers can make purchases from any part of the
world. In this changing times internet has become one of the most important outlet for successful
purchasing and buying. . L’Oreal’s operations in Pakistan are on an ever-growing path as the
awareness of the beauty products has resulted in the brands growth and popularity. Based on
their different product divisions their products are made available to the customers worldwide.
L’Oreal also makes sure they have vast distribution networks to enable a strong market presence.
They have acquired many different companies worldwide to make increase their brand presence.
Over the years, L’Oreal has grown and is now present in 130 countries in 5 continents. Each of
their products are available at department stores, retail outlets, pharmacies, salons, cosmetics
stores, own brand boutiques and even e-commerce websites.
Promotion Strategy of L’Oreal:
L'Oréal being an international brand has its promotions done at various levels in different
countries. They also have a very strong ad slogan “Because we’re Worth It” with a strong
message to attract customers. The brand has an aggressive marketing mix promotional strategy.
Attractive models are their brand ambassadors like Jennifer Lopez, Naomi Watts, and Cheryl etc
for various campaigns all over the world. In India, Aishwarya Rai Bacchan, Sonam Kapoor and
Katrina Kaif are L’Oreal brand ambassadors and international face for most of their TV, print
and digital advertisements. L’Oreal even uses word-of-mouth marketing strategy which has
become viral. L’Oreal also have various CSR commitments like:
• Project CARE which cultivates citizenship by performing various social welfare activities in
areas like Child Education, Health, Safety and Environment.
• YOUNG WOMEN IN SCIENCE in partnership with UNESCO to help young women to
achieve their dreams and aspirations of pursuing careers in science.
• BEAUTIFUL BEGINNINGS with the objective of providing skilled training to uneducated
young women from disadvantaged sections of society to help them either start their own salons
or be a part of existing beauty salons thus making them more economically secure
With all these promotional activities and campaigns L’Oreal has managed to acquire a huge
market in the world. Hence, this covers the marketing mix of L’Oreal.

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WEAKNESSES OF L’Oreal
 Brand confusion and positioning among innumerable brand in male grooming segment
 L’Oreal product perceived to be very expensive in comparison to competitors
STRENGTHS OF L’Oreal
 Innovation, R&D
 High quality
 Effective distribution

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1ST
Competitor “L’Oreal”
Product strategy of
L’Oreal
 L’Oreal has a endowed with international standard of brands covering a wide range
of while satisfyingthe of every customer present in any part of theworld.
 The company deals in activities related to cosmetics, skin care, hair color, make-up,
sun protection, hair care and perfumes. In Pakistan L’Oreal has a wide portfolio of
brands under them. The marketing mix product strategy can be understood by
analyzing their entire portfolio.
 Under these product divisions L’Oreal have products like eye-liner, mascara, eye
shadow, nail polish, nail polish remover, lipstick, lip-liner, lip gloss, cleanser,
foundation, concealer, blush for face, hair color in various shades, hair care,
shampoos, conditioner, toners, hair spray and serum.
Pricing strategy of L’Oreal  L’Oreal is one of the leading global cosmetic brands. The consumer products division
brands are distributed in retail channels making it available to the mass market. As a
result they earn huge profits from this division.
Distribution Strategy of
L’Oreal
 L’Oreal has development and research centers in six places worldwide like Japan,
France US and China and its products are available in one hundred and thirty
countries of the world including Pakistan.
 Over the years, L’Oreal has grown and is now present in 130 countries in 5
continents. Each of their products are available at department stores, retail outlets,
pharmacies, salons, cosmetics stores, own brand boutiques and even e-commerce
websites.
Promotion Strategy of
L’Oreal
 L’Oreal being an international brand has its promotions done at various levels in
different countries. They also have a very strong ad slogan “Because we’re Worth It”
with a strong message to attract customers.
 Project CARE which cultivates citizenship by performing various social welfare
activities in areas like Child Education, Health, Safety and Environment.

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Weaknesses
 Brand confusion and positioning among innumerable brand in male grooming
segment
 L’Oreal product perceived to be very expensive in comparison to competitors
Strengths
 Innovation, R&D
 High quality
 Effective distribution
2nd
Competitor MAC:
Introduction:
MAC is an international Cosmetics brand, MAC Cosmetics, which stands for Makeup Artist
Cosmetics, was founded in Toronto, Ontario, Canada by Frank Toskan and Frank Angelo in
1984 with the assistance of chemist Vic Casale. The first U.S MAC store opened in 1991, in
New York. Estee Lauder gains control (bought 51%) and MAC Aids Fund introduced in 1994.
Also Lauder purchased remaining 49%, MAC had sales of ~ $100 mill in 1998. Currently MAC
sells to consumers in 79 countries.
Product Strategyof MAC:
Shapes/sillouets/material/color/signature trends/style/inspirations/details/quality/price
Although M.A.C Cosmetics are in the niche market where the target market is only female, of all
ages and society. M.A.C sells a lot of different make-up products
Make up

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Eye shadow Eye Liner
Mascara Eyebrow
Eyelashes Lipstick/Lip Gloss/Pencil/Care
Primer Lip kits and bags
Foundation/Powder/Cheek/Congealer
Skin care
Removers Moisturizers
Fragrances Solutions
Tools
Brushes Bags
Accessories
M.A.C concentrates on all ingredients in their products so they can be safe for use. The safety
tests are run by a collaboration of science experts across several places to, make sure the quality
and excellence of all the products are brought to the market.
Price Strategyof MAC:
Looking online they have a highest quality of products with high pricing!
Because of the prices of some products, average people are unable to reach them, quite different,
comparing to L'Oreal, Benefit or Revlon whose prices are on standard and cheap.
On the other side, as I looked into M.A.C section in John Lewis the prices were quite cheap in
contrast to their online market, and very similar pricing to the competitive brands.
Distribution Strategyof MAC:
M.A.C cosmetics value more on the higher market and more exclusive retail
shops throughout the high-street shops instead of small niche brands. There are loads of shops
and places that M.A.C is sold at for example; John Lewis, Debenhams, Beales, Westfield
London, Selfridges, House of Fraser etc.

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Also the products are sold online, on their UK/USA/PL/DE and other countries official sites
however, people might also look on Amazon, EBay, Etsy and they should be careful because the
product might not be original but fake.
Promotion Strategyof MAC:
Buyer power is relatively high as there is a large number of them in this industry, they get
the brand going and keeping high in the market, the price is average and no switching costs. This
is why M.A.C stands out as the world’s largest make up company by, following
it's strategy which is personal selling, one of the most common forms of promotion.
For the fact that M.A.C doesn’t have to include any forms of advertisement, as it is up
to the word of publicity to get M.A.C where it is standing now. Celebrity endorsement was and
still is one of their highest successes; this includes models, pro make-up artists and actresses
advertising M.A.C.
“M.A.C uses celebrities such as NIcki Minaj, Ricky Martin
And Lady Gaga to promote Viva Glam product line"
WeaknessesOF M.A.C:
 Too much design oriented than consumer oriented.
 Visual design is to edge and artistic to adapt usual life artists are too professional image
but not friendly enough is too could do approach consumer
STRENGTHS OF M.A.C:

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 Strong visual Design with wide range.
 Unique product offer professional artists creative senior design management
 Team innovation & developing personality
2nd
Competitor MAC:
Product strategy of
M.A.C
 M.A.C Cosmetics are in the niche market.
 M.A.C target market is only female, of all ages and society.
 M.A.C sells a lot of different make-up products.
 MAKE-UP
 Eye shadow,Eye Liner, Mascara, Eyelashes, Lipstick/Lip Gloss/Pencil
Primer; Lip kits and bags, Foundation/Powder/Cheek/Congealer
 SKIN CARE
 Removers, Moisturizers ,Fragrances, Solutions
 TOOLS
 Brushes , Accessories
 M.A.C concentrates on all ingredients in their products so they can be safe

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for use.
Pricing strategy OF
M.A.C  Looking online they have a highest quality of products with high pricing!
 Because of the prices of some products,average people are unable to reach
them, quite different, comparing to L'Oreal, Benefit
or Revlon whose prices are on standard and cheap.
 On the other side, as I looked into M.A.C section in John Lewis the prices
were quite cheap in contrast to their online market, and very similar pricing
to the competitive brands.
Distribution Strategy
of M.A.C
 The products are sold online, on their UK/USA and othercountries official
sites people might also look on Amazon, EBay and they should be careful
because the product might not be original but fake.
Promotion Strategy of
M.A.C
 Buyer power is relatively high as there is a large number of them in this
industry,the brand going and keeping high in the market, the price is
average and no switching costs.This is why M.A.C stands out as the world’s
largest make up company it's strategy which is personal selling, one of the
most common forms of promotion.
 For the fact that M.A.C doesn’t have to include any forms of advertisement,
as it is up to the word of publicity to get M.A.C where it is standing now.
Weaknesses ofM.A.C  Too much design oriented than consumer oriented.
 Visual design is to edge and artistic to adapt usuallife artists are too
professional image but not friendly enough is too could do approach
consume
Strengths ofM.A.C
 Strong visual Design with wide range.
 Unique product offer professionalartists creative senior design management
 Team innovation & developing personality
3rd
Competitor Revlon:
INTRODUCTION:

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Revlon Inc. operates as one of the world's leading cosmetics companies and markets its products
in over 100 countries under such familiar brands as Revlon, Color Stay, Age Defying, Almay,
and Skin lights. Revlon also sells skin care products (Ultima II, Vitamin C Absolutes, Eterna 27),
fragrances (Charlie), and personal care products (High Dimension, Flex, Mitchum, Color silk).
Ronald Perelman, who gained control of the company in a nasty hostile takeover in 1985, owns
approximately 83 percent of Revlon.
Revlon's first beauty item was nail enamel. Opaque and long-lasting, it was an improvement over
the more transparent, dye-based products of other manufacturers. Revlon's nail polish owed its
superiority to the use of pigments, which also allowed a wider color range than the light red,
medium red and dark red then available. Initially, the revolutionary "cream enamel" came from
the tiny Elka Company, in Newark, New Jersey, a polish supplier to beauty salons for whom
Charles Revson began to work as a sales representative in 1931. Charles Revson and his older
brother Joseph distributed Elka nail polish as Revson Brothers. Within a year, however, Charles
Revson decided to open his own nail polish company, going into partnership with his brother and
a nail polish supplier named Charles R. Lachman, who contributed the "l" to the Revlon name.
Revlon was formed on March 1, 1932.
Revson had a keen fashion instinct, honed by his seven years of sales experience at the Pickwick
Dress Company in New York. Coupling this with his experience at Elka, he noted that the
permanent wave boom was making beauty salons more popular and that demand for manicures
was rising in tandem. He therefore targeted beauty salons as a market niche--a fortunate choice
whose importance would grow.
Product Strategyof Revlon:
Revlon is one of the most well recognized cosmetic and make-up brands. The cosmetic major
Revlon has introduced different products in its marketing mix product portfolio useful for
various beauty enhancement and care. The products include the Mascara collections of different
shades and length like multiplier, all in one and super length. The Revlon Color stay brands
include collection of products essential for eye which includes kajal liner, crayons, pencil etc.
For reducing wrinkles and bringing the youthfulness Revlon has products under the brand name
of Revlon Youth Fx. Similarly there are wide range of products under the lip care which includes
the lip color, lip gloss, lip liner and brands like ULTRA HD, SUPER LUSTROUS and
COLORSTAY etc. The product under nail and hair includes the colour products and shampoos
for hair care. For further diversifying the beauty products Revlon has products catering to beauty
tools like tweezers, mirrors, beauty kits, facial kits, nail clipper, lash curler, specialized brushes
and other grooming tools. These products have a nomenclature like Gold series, Men series,
Love Collection and Diamond collection. All these Revlon products are involved in personal use
brought at individual capacity or at beauty parlours and saloons.
Price Strategyof Revlon:
Revlon prices its products understand the offerings of other competitor brands. In terms of
pricing strategy Revlon has adopted competitive pricing since the prices of the products vary

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accordingly in the cosmetic industry. Here the cosmetics offered by different brands are similar
in terms of features hence to differentiate itself the price can plays a major factor. For instance
the products like lipstick, eyeliner and nail colours are available in market of different brands and
hence reached a level of maturity with different substitutes. However in terms of pricing point of
each product it has priced in terms of upper class and middle class segments purchasing ability.
Prices of Revlon products are in par with the competitive price offerings to capture major market
share. The prices of Revlon products range between INR 400 to 2000. The prices are set
differently for each of the products and features available in each variant of the products. This
briefly explains the marketing mix pricing strategy of Revlon brand.
Distribution Strategyof Revlon:
Revlon being a well-known cosmetic giant has its presence in over hundred countries with US
being one of its major markets for the range of product it manufactures. More than 50% of the
sales are done in USA itself which is the base country for Revlon. Revlon majorly focuses its
selling through retail channels and merchandising stores. It has its bulk distribution through drug
stores, pharmacy and chemist stores across the globe. This helps in retaining the large middle
class consumer base across different nations. Revlon products are sold to different channels
based on the divisions like consumer, professional and others. Also the subsidiaries of Revlon
some in the form of acquired companies play a major role in distribution of the products. The
distribution mechanism adopted is either through the recognized distributors or the licensees
across the globe. The company adopts strategy of point of sale in its retail operation displays to
ensure that the top products are available throughout the season and provides better visibility of
the products with respect to other brands. Ecommerce selling practice has also been utilized by
Revlon to distribute and sell its products.
PromotionStrategyof Revlon:
Revlon, due to its marketing activities, is one of the most well recognized brands. Generally
cosmetic products adopt conventional methods of promotion for its product to create the better
awareness of the product and the features in its offerings. Revlon makes use of printed
advertisements, television, banners, billboards, brochures and booklets for its promotion. Like
normal cosmetic care a product which involves use of celebrity for endorsing its products Revlon
has made Ciara, American singer and actress as its brand ambassador. Previously it was done by
Emma Stone, Halle Berry and Olivia Wilde. Revlon has also used platforms like demonstration,
fairs, trade shows and festivals for promoting its products. It also utilizes the methodology of
direct selling to its consumers involving individuals and beauty parlour and saloons to get better
awareness of the products. Lately the Revlon brand is also involved in online promotion to
connect more with the youngsters by using various social media platforms and initiatives. This
completes an overview on Revlon marketing mix.

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WeaknessesOF Revlon:
 Less product variety

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 High prices
 High cost of production
Low advertising budget
STRENGTHS OF Revlon:
 Classic products
 Very well known
 Very high quality
 Online services
 High profit margins
 Very good market position
3rd
Competitor Revlon:
Product strategy of
Revlon
 Revlon is one of the most well recognized cosmetic and make-up brands. The
products include theMascara collections of different shades and length like
multiplier, all in one and super length. The Revlon Color stay brands include
collection of products essential for eye which includes kajal liner, crayons, pencil etc.
 The product under nail and hair includes thecolour products and shampoos for hair
care. Revlon has products catering to beauty tools like tweezers, mirrors, beauty kits,
facial kits, nail clipper, lash curler, specialized brushes and other grooming tools. All
these Revlon products are involved in personaluse brought at individual capacity or
at beauty parlours and saloons.
Pricing strategy OF
Revlon
 Revlon prices its products understand theofferings of other competitor brands. In
terms of pricing strategy Revlon has adopted competitive pricing since theprices of

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the products vary accordingly in the cosmetic industry.For instancethe products like
lipstick, eyeliner and nail colours are available in market of different brands and
hence reached a level of maturity with different substitutes. However in terms of
pricing point of each product it has priced in terms of upper class and middle class
segments purchasing ability.
Distribution Strategy
of Revlon
 Revlon being a well-known cosmetic giant has its presence in over hundred countries
with US being one of its major markets for the range of product it manufactures.
Morethan 50% of thesales are done in USA itself which is the base country for
Revlon. Revlon majorly focuses its selling through retail channels and merchandising
stores.
 The distribution mechanism adopted is either through the recognized distributors or
the licensees across the globe. The company adopts strategy of point of sale in its
retail operation displays to ensure that the top products areavailable throughout the
season and provides better visibility of theproducts with respect to other brands.
Promotion Strategy of
Revlon
 Revlon, due to its marketing activities, is one of the most well recognized brands.
Generally cosmetic products adopt conventional methods of promotion for its product
to create the better awareness of the product and the features in its offerings. Revlon
makes use of printed advertisements, television, banners, billboards, brochures and
booklets for its promotion.
Weaknesses of Revlon
 Less product variety
 High prices
 High cost of production
 Low advertising budget
Strengths of Revlon  Classic products
 Very well known
 Very high quality
 Online services
 High profit margins.
CONCLUSION:
The nutshell of above top three cosmetics companies analyzed with the help of primary and as well as
secondary data this analyze with also helpful for future researchers were going to be research in branded
products. The current case study suggested that there are so many brand in the global market with their
own features and qualities although the primary as well as secondary data was help to finalize which
brand is the best for use as well as quality and price so we conclude that L’Orealis one of the most
famous brand and easily available on the one click. So I concluded that L’Orealis the best product.
The world leader in beauty L’Oreal is the one of the most famous brand of the world. As the biggest
beauty brand in the world has an unparallel commitments to technology research or innovation

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providing high quality product for their customer. The company use it has on four p’s strategies.
L’Oreal currently manufactures 500 brands & thousands of individual products in all sector of beauty
& fragrance.