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Q: Cosmetics / Skin Care Marketing Australia ( Answered,   0 Comments )
Subject: Cosmetics / Skin Care Marketing Australia
Category: Business and Money > Advertising and Marketing
Asked by: itsmechang-ga
List Price: $170.00
Posted: 29 Aug 2005 03:32 PDT
Expires: 28 Sep 2005 03:32 PDT
Question ID: 561691
I am wanting to develop a marketing plan for the introduction of a new
skin care/cosmetic product for women to the australian market. It will
be department store brand target 18-25yrs, in a medium-high level
price bracket. Can you please :

1. provide a information on successful marketing strategies used by
companies to launch in the market.
2. provide industry growth trends, key competitors, segmentation
strategies, distribution strategies/channels.

Thanks much appreciated for you help.
Subject: Re: Cosmetics / Skin Care Marketing Australia
Answered By: belindalevez-ga on 31 Aug 2005 02:32 PDT
<Marketing strategies.

This article describes the marketing strategy used by Jane McKellar of
Elizabeth Arden, Australia. In less than a year, three of the
Elizabeth Arden fragrances were in the Australian top ten.
1. The companies beauty advisors were re-trained.
2. Journalists were invited to a helicopter trip to a spa where they
could personally experience the products.
3. The number of retailers was reduced to those offering the greatest potential.
4. An event was created ? The Ultimate Girls? Night Out? that brought
over 1,000 women in for a night of games, fortune tellers, dance
contests, makeovers an nail bars. The event got free TV coverage and
generated a lot of buzz. The internet was used to publicize the event
and gave people the chance to receive free product samples.

Source: Lipstick and the Art of War by Cristen Bolan.

Using product display.

With a new product display, Boots re-launched its No7 cosmetics brand
growing sales by 18% in seven weeks. Source: Boots

This article demonstrates how using specially designed product display
units can help to boost sales. For the No7 relauch they introduced a
visually impactful display. 1108 units were produced at a cost of
100.00 per unit. The campaign included a free gift bag with purchase

Rimmel also increased sales by using a specially designed display
unit. Mascar sales grew by 53%.

The dermatological skincare centre boosted sales by 20%.

Source: Pop awards 05.

This article has some ideas for advertising/promotion including:
Organizing promotional activities jointly with department stores.
Support these activities with free samples and promotional literature. 
Some department stores insert discount vouchers into their catalogues. 
Make-up demonstrations by make-up artists and makeovers at cosmetic
counters within department stores.
Product launch events featuring visits by celebrities to the retail
outlets. Source: Strategis

Charity tie-ins.
Avon partnered with a cancer charity. Their campaign ?Kiss Goodbye to
Breast Cancer? involved the sale of special lipsticks. For every
lipstick sold, $1 was donated to the Australian New Zealand Breast
Cancer Trials Group. The week long campaign raised $100,000.

The Australian cosmetics and toiletries market is valued at A$3.6
billion (US$2.7 billion). Sales grew 3.1% compared to 2004. There is
stronger demand for high-end mass products in the mid-range price
level. Unilever and Procter & Gamble are market leaders, with each
holding an 11.4% market share. L?Oreal ranks third and Creative Brands
Pty is nineteenth.

The Australian skin care market is worth A$453 million. Source: Euromonitor.

The premium cosmetics market is Australasia is worth US$504.9 million.
Source: Global Cosmetic Industry.

Skin care rose 6.6% in 2004. According to Euromoniter the cosmetics
and toiletries market is expected to grow nearly 4% annually through
to 2009. Source: GCI.

The Australian skin care market is worth around $A880 million. Grocery
outlets account for 10% of sales. Johnson & Johnson is the market
leader in this segment with 21% of the total market. Other major
players are Lever, Rexona, Procter & Gamble and L?Oreal. Source: Food

The Australian sun care market is worth $43.5 million with a growth
rate of 13.3%. Source: Protcyte Corporation.

The Australian skin care market is approximately 10% of the US market.
The US market is US$6 billion, the Australian market is approximately
US$ 600 million. Source: Novogen.

This report gives a breakdown of retail sales of colour cosmetics by
subsector for the years 1997 ? 2001. Source: Euromonitor.

Market share.
Unilever ? 11.4%
Proctor & Gamble ? 11.3%
L?Oreal Australia ? 9.5%
The rest of the market is fragmented with 13 companies having over 2
percent. Creative Brands is the largest Australian cosmetic and
toiletries company with 1.3 percent market share. Source: Euromonitor.

Report on the New Zealand cosmetics and toiletries industries. Source: Strategis.
Department stores

Coles Myer Limited
Operates 2500 stores in Australia and New Zealand.
Registered Office
800 Toorak Road
Tooronga Vic 3146
Telephone: (61 3) 9829 3111
Facsimile: (61 3) 9829 6787

David Jones Ltd
Telephone 1300 300 110

Distributors in Australia
This site gives contact details for distributors of skin care products.

Margi Fox Distributors has links to distributors.

Market reports

Australia Skin Care 2004
Report costs $295.00

Report ? Pharmaceutical, Cosmetic and Toiletry Retailing in Australia.
Published September 2005. Price Au$660.

Department Stores in Australia. Published by Euromonitor. Price $198.
The two major players, Coles Myers Limited and David Jones Ltd, 
account for 83.1% of the market. Coles Myers is the market leader with
70.7% share of the market. It has experienced growth of 5.3% since
2002. The Australian department stores market is forecast to grow
13.1% by the year 2008.>

<Search strategy:>

<"australian skin care market">

<department stores" brand campaign australia cosmetics>

<"successful campaign" "skin care" Australia>

<cosmetics "boosted sales by">

<Hope this helps.>

Request for Answer Clarification by itsmechang-ga on 12 Sep 2005 08:24 PDT
Thanks this is a good start, but i was really looking at something a
bit more specific. Especially with regards to " department store brand
target 18-25yrs, in a medium-high level price bracket".

For example brands such as Biotherm, Clinique, Shiseido, Marbert,
Aseop, Origins, Red Earth etc (middle tier brands). Or for new brands
trying to break into the market segment.

Please focus this to skin care. 


Clarification of Answer by belindalevez-ga on 14 Sep 2005 01:13 PDT
<Biotherm chose Cosmopolitan as a major media partner for its launch
into the Australian market. This article details the ways that
products are advertised in the magazine. L?Oreal does a lot of
makeovers and competitions through the titles. Source: Beauty
Industry?s Face-Lift Boosts Mags. B & T.

The Masters of Branding site gives details of campaigns carried out
for L?oreal, the parent company of Biotherm.'Oreal

Biotherm?s mobile marketing campaign.
For Biotherm, Masters of Branding designed and developed a mobile
marketing tour. They designed and produced bounce back cards, a
cosmetic environment and a freestanding mens product unit.

L?oreal product launch
The L?oreal website gives details of all the elements that combine to
give a successful product launch. In this example they describe how a
children?s sun cream was launched.

In Singapore, Biotherm ran a bus shelter campaign for its Skin Loving
Color line of make up resulting in a recall rate of 36 percent.
Source: BrandRepublic.

Biotherm advertisement. Source: Lavender.

Biotherm samples were available in Marie Claire. Source:

Using samples to promote products.
When asked "What do you usually do with your samples of cosmetics?"
34.3 percent reported that they "used it right away," 41.3 percent
"saved it for later use" and 17.8 percent "gave it to someone else"
with only 6.7 percent reporting that they "threw it away." Source:
Sampling Success by Larry Burns. Soapwire.

Clinique conducted a letter box campaign in Australia. Metropolitan
areas were targeted. By analysing their current customer database,
they determined where Clinique's customer base could be found,
allowing them to exclude those areas from the proposed distribution
catchment. They then set about defining the types of people on the
database enabling them to locate areas near Clinique stores that
contained similar people.
The result gave Clinique a campaign that reached areas of high
potential and low existing customer penetration. The success of this
campaign has led to a follow up campaign covering an extended area,
catering for new stores.
Source: PMP Limited.

For one of their products clinique carried out a survey. They plan to
use the findings of the survey in an in-store and online outreach
capacity to educate consumers about their skin. Skin-care profiling
has long been a part of Clinique?s marketing strategy ? women have
been able to find out their basic skin type by answering questions at
Clinique counters in department stores. Source: Beauty marketers
target all ages with burgeoning stress relief category.

Clinique ? the face as canvas campaign.
This campaign in the Asia Pacific market has replaced the ?product as
hero? photography credo with ?the face as canvas? campaign. Each shot
shows an exaggerated version of the benefits of every product.
Source: Vogue.

Internet marketing.
Estee Lauder launched in 1996. The site has 1.1 million
users and 28 percent are new users of the brand. Using email marketing
campaigns, Estee Lauder notifies customers of in-store events and
promotions. Email is an inexpensive way to reach regular customers.
According to Forrester Research, it can cost as little as 5 cents,
compared to an average of US$1 for mailing a catalogue. There is about
a 10% response rate to email and a quarter of those buy something.,39023166,20233776,00.htm

Biotherm partnered with Air France To target its well-heeled flyers
and reinforce the Air France brand attributes of "pleasure, comfort
and peace of mind," the campaign, which ran from mid-September to the
end of December, offered one of four Biotherm facial packages: two
geared at men and two at women. Valued at about $100, each included a
mix of facial cleansing gel, moisturizer and other frilly extras, that
could be claimed if a return trip, booked for business in first class
from Toronto or Montreal, was taken during the time of the promotion.
Source: Fly with me? Air France hooks up with Biotherm by Natalia Williams.>
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