Cosmetics

Contents

TOC o “1-3” h z u HYPERLINK l “_Toc378044512” Product Characteristics PAGEREF _Toc378044512 h 1

HYPERLINK l “_Toc378044513” Key Products PAGEREF _Toc378044513 h 1

HYPERLINK l “_Toc378044514” How do the competitors differentiate? PAGEREF _Toc378044514 h 2

HYPERLINK l “_Toc378044515” Pricing Characteristics PAGEREF _Toc378044515 h 2

HYPERLINK l “_Toc378044516” Promotional Characteristics PAGEREF _Toc378044516 h 2

HYPERLINK l “_Toc378044517” Competitive Rivalry PAGEREF _Toc378044517 h 3

HYPERLINK l “_Toc378044518” References PAGEREF _Toc378044518 h 4

Competitive analysis for beauty products that target skin and face markets as operated by three main players namely; Procter and Gamble, Unilever and L’Oreal USA Incorporated.

Product CharacteristicsProcter and Gamble face and skin products stand out in the market with a strong brand name that captures both the male and female market segments in a separate perspective. The higher market end that the Company has been able to colonize attracts very competitive product prices with a wide variety of products.

Unilever has fewer face and skin products that the company has concentrated on, mainly advocating for its skin food and natural appeal on its skin products. Both the middle end and lower end market features for skin products are captured at Unilever.

L’Oreal USA Incorporated has the least of the market presence in terms of brand varieties. However, its concentration in “Active Cosmetics” only clearly defines an accurately manageable scope that taps both beauty and pharmacy client ends.

Key Products

Procter and Gamble key skin and face product varieties include; Braun, Covergirl, DDF, Fusion, Gillette, Mach3, Olay, Old Spice, about 9 Prestige fragrance products, Prestobarba/Blue, SK-II and Venus (Procter and Gamble, 2011).

Unilever key products in skin and face market include Pond’s creams, Pond’s Cleanser, Brut, Dove, Impulse, Lynx brands, Lux shampoos, Lux body washes, Lux soaps, Eye Masks and Lotions such as Vaseline among many others (Unilever, 2011).

L’Oreal USA has four distinct key brands for the skin and face markets which include Dermablend, La Roche-Posay, Skinceuticals and Vichay that retail in various product packages (L’Oreal, 2011).

How do the competitors differentiate?

All the three competitors differentiate their market share through marketing and product design as well as branding. Some of them have a global market strategy that has clearly been set out regarding the market features. However, the brand name stands out in all the other differentiation elements.

Pricing CharacteristicsCompetitive pricing strategy differences that the three companies have exhibited are largely driven by the type of a particular brand that they compete in. For instance, different product appeal levels for aftershave products are created by the market popularity that the company has been able to achieve. This attracts certain pricing benefits if a strong brand name exists. L’Oreal USA products attract a higher market pricing due to the technology involved in marketing (Nanocolors, 2009). Procter and Gamble products have a pricing approach that taps on both innovation and strong market presence and brand loyalty. Competitive intelligence that tracks performance and market operation of the competitor to inner operations

Promotional CharacteristicsDifferences in advertising and promotional strategies have enabled the companies to reach their specified market segments. For the local market for instance, Unilever utilizes different marketing strategy to handle competition from Procter and Gamble and L’Oreal USA when compared with the international market across the globe. L’Oreal USA has been able to target the specific Northern America market through localized strategy unlike Unilever that has a global outlook in marketing.

Competitive Rivalry

Degree of rivalry between Procter and Gamble and Unilever has been very strong and bitter as manifested by an espionage program that Procter and Gamble instigated against Unilever. Procter and Gamble has had stiffer competition with L’Oreal USA in the market control, particularly in nano patenting and marketing (Nanocolors, 2009). Price wars are also frequent in the market segment, with various varieties from each of the companies posting vary competitive price tags. Frequent product innovation also characterizes the market segment for instance in the nano patenting that L’Oreal USA and Procter and Gamble seems to control.

The most significant competition that these companies face indirectly comes from other market products that characterize the various market segments. For instance, besides dealing in cosmetics, Unilever and Procter and Gamble also participate in other product lines such as home care and food. Other industries such as food industries that advocate for natural cosmetics for beauty management are also on the rise (Organic Monitor, 2006). In such a perspective, the threat of the cosmetic industry is mainly in the nature of ingredients that the companies use to produce the products.

ReferencesNanocolors (2009) “ HYPERLINK “http://nanocolors.wordpress.com/2009/10/29/nano-the-top-10-big-cosmetics-companies-loreal-procter-gamble-and-henkel/” o “Nano & the top 10 big cosmetics companies : L’Oréal, Procter & Gamble and Henkel on the podium for patents” Nano & the Top 10 Big Cosmetics Companies: L’Oréal, Procter & Gamble and Henkel on the Podium for Patents” Retrieved from: HYPERLINK “http://nanocolors.wordpress.com/2009/10/29/nano-the-top-10-big-cosmetics-companies-loreal-procter-gamble-and-henkel/” http://nanocolors.wordpress.com/2009/10/29/nano-the-top-10-big-cosmetics-companies-loreal-procter-gamble-and-henkel/

L’Oreal USA (2011) “Active Cosmetics,” Retrieved from: HYPERLINK “http://www.lorealusa.com/_en/_us/index.aspx?direct1=00003&direct2=00003/00005” http://www.lorealusa.com/_en/_us/index.aspx?direct1=00003&direct2=00003/00005

Unilever (2011) “Health and Hygiene: Beauty and Style,” Retrieved from: HYPERLINK “http://www.unilever.com/brands/hygieneandwelbeing/beautyandstyle/?WT.LHNAV=Beauty_&_style” http://www.unilever.com/brands/hygieneandwelbeing/beautyandstyle/?WT.LHNAV=Beauty_&_style

P&G (2011) “Beauty and Grooming” Retrieved from: HYPERLINK “http://www.pg.com/en_US/brands/beauty_grooming/index.shtml” http://www.pg.com/en_US/brands/beauty_grooming/index.shtml

Organic Monitor (2006) “European Sales of Natural Cosmetics Surge,” Retrieved from: HYPERLINK “http://www.organicmonitor.com/100160.htm” http://www.organicmonitor.com/100160.htm