Cosmetic Research

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1.0: Introduction
This cosmetics report will include various findings such as why women wear make-up, in order to launch a new product within the market. Primary research includes questionnaires and focus group sessions in order to get a better understanding of consumer needs and trends. Secondary research includes background research of the cosmetic market such as consumer behaviour, historical trends and current competitors. This research allows ideas to be brainstormed together and analysed in order to produce and launch a new product into the market. Historical trends and market size data allows prices to be planned and set. -------------------------------------------------

2.0: Market Background
Cosmetics are a growing market in the current economy. Women from all ages and ethnic groups use cosmetics. Through secondary research we were able to find out the market background about the cosmetics market as well as the reasons why women wear make-up, and about the growing market including the size of the market and growing trends. By conducting secondary research for cosmetics market, information was gathered about the market using electronic sources such as Keynotes and Mintel. -------------------------------------------------

2.1: Market value: Size and structure

The volume of the market is 22.5 million for the year 2011. Appendix 9.0.1 shows the value of the previous year’s cosmetic market. The value of the market seems to have increased from 2004, which indicates the growth of use of the cosmetics. It also shows the values of the products are rising.

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2.2: Market segmentation
The main subsectors are:
* Face make-up, including foundations, blushers and powders * Eye make-up, including eye shadows and liners, eye pencil and mascara * Lip products, including lipsticks, glosses and lip pencils * Nail products, including varnishes and glosses.

Appendix 9.1.1 shows the cosmetic market value is at £1.2bn with an increase of 6.9% from the previous year. It is clear from Appendix 9.1.2: that face and eye make-up is the most used products, however only 18% of the consumers use lip products. This implies that with the right consumers’ needs considered, the usage of lip products could increase. By improving the manufacturers’ resources, their activities and processes could effectively be increased.

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2.3: Consumer demographics
Appendix 9.2.1 shows the number of consumers in age categories and the amount of usage in make-up product type. As the consumers’ age increases, the amount of usage of makeup seems to decrease. Face make-up is the only market sector that holds the largest share with 38.5% of retail sales in the cosmetics market in 2010. The reason for being the largest sector is due to face products being driven by the increase in usage by the female population. There was a continuous new innovation by the competitors to keep ahead of the trends. To meet all consumers’ needs and to target all ages, manufacturers are now developing products to meet their needs by bringing out anti-ageing effects. This shows that there is a high demand in the market for a new product, which means it would be harder for a new product to be launched into the market because the product should have a unique selling point which meets the customers’ needs with a high expectation. Eye make-up has the second largest share with 32% in the cosmetics market. The subsector of it would be mascaras, eye shadows, pencils and kohl’s. Among these subsectors, mascara is known to be used the most by consumers and it is developed by manufactures rapidly to meet the high expectation and also to be ahead of their competitors. Since the eye make-up market doesn’t have as much of a high demand as face make-up, there is a possibility for a new product to be launched. Lip and...
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