Rajagopal. Marketing Dynamics: Theory and Practice
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Marketing Dynamics: Theory and Practice
eventuality should be guarded
against. On the other hand, there is
also a defensive, or share-
maintenance, issue to be considered
here even if one has the dominant
entry. A product with high market
share may not remain in this position
forever, if competitors are permitted
to chip away at its lead with
unchallenged positions. As a
strategy, the positioning of multiple
brands, if properly implemented,
can lead to increases in growth,
market share and profitability.
PRODUCT REPOSITIONING STRATEGY
Often a product may require repositioning. This can happen, if (a) a competitive entry is positioned
next to the brand, creating an adverse effect on its share of the market; (b) consumer preferences
change; (c) new customer preference clusters with promising opportunities are discovered; or (d) a
mistake is made in the original positioning. Citations from the marketing literature serve to illustrate
how repositioning becomes desirable under different circumstances. When A & W went national in
1989 with its cream soda, it failed to clearly articulate the position. As a result, research showed that
consumers perceived cream soda as an extension of the root beer family. To correct this, the company
repositioned the brand as a separate soda category by emphasizing the vanilla flavour through
advertising and packaging. Following the repositioning, cream soda’s sales increased rapidly. Over
the years, Coca-Cola’s position has shifted to keep up with the changing mood of the market. In
recent years, the theme of Coca-Cola’s advertising has evolved from “Things go better with Coke”
to “It’s the real thing” to “Coke is it” to “Can’t beat the feeling” to “Catch the Wave” to “Always
new, always real, always you, always Coke.” The current perspective of Coca-Cola’s positioning is
to reach the generation of young people and those young at heart. The risks involved in positioning or
repositioning a product or service are high. The technique of perceptual mapping may be used
gainfully to substantially reduce those risks. Perceptual mapping helps in examining the position of a
product relative to competing products. There are following advantages of the perceptual mapping:
• To understand how various consumer groups perceive competing products or services in
terms of strengths and weaknesses.
• To understand the similarities and dissimilarities between competing products and services.
• To know how to reposition a current product in the perceptual space of consumer segments.
• To position a new product or service in an established marketplace.
• To track the progress of a promotional or marketing campaign on the perceptions of
targeted consumer segments.
Figure 2.5 Product positioning strategy
•
Targeting
•
Marketing programme
decisions
•
Competitive advantage
•
Functional relationships
•
research
•
Test marketing
•
Positioning feasibility
•
Positioning effectiveness
•
Repositioning designs
•
New products
•
New market segments
Product positioning
Strategy
Product objectives
Branding strategy
Product management
Product
Service
Channel management
Distribution
Channel configuration
Pricing objectives
Pricing strategy
Creative strategy
Media planning
Strategy
Pricing
Advt. and
promotion
Sales management
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89
Use of perceptual mapping may be illustrated with reference to the automobile industry. The map
helps the marketing strategist in calculating whether company’s cars are on par with the requirements
of target consumers. The concentration of dots, which represent competing models, shows how much
opposition there is likely to be in a specific territory on the map. Presumably, cars higher up on the graph
fetch a higher price than models ranked toward the bottom where the stress is on economy and practicality
After looking at the map, General Motors might find that its Chevrolet division, traditionally geared to
entry-level buyers, ought to move down in practicality and more to the right in youthfulness. Another
problem for General Motors, which the map so clearly demonstrates, is the close proximity of its Buick
and Oldsmobile divisions. This close proximity suggests that the two divisions are waging a marketing
war more against each other than against the competition. Basically, there are three ways to reposition
a product: among existing users, among new users, and for new uses.
PRODUCT STRATEGY PERSPECTIVES
Product positioning strategy is an essential strategy to avoid competitive threats to a single brand.
The product positioning strategy requires the analysis of all marketing variables, particularly the
design and communication approaches. Successful management of a single brand needs positioning
the brand in the market, so that it can stand competition from the toughest rival and maintaining its
unique position by creating the aura of a distinctive product. Successful management of multiple
brands requires careful positioning in the market so that multiple brands do not compete with each
other. Thus, it is important to be careful in segmenting the market and to position an individual product
as uniquely suited to a particular segment through design and promotion. Such strategies of product
positioning should be implemented in view to meet the needs of specific segments of the market as
much as possible, limiting sudden changes in sales and making customers faithful to the brands.
Product strategy helps in reviewing the current positioning of the product and its marketing-mix
and seeking a new position for it that seems more appropriate to increase the life of the product and
to correct an original positioning mistake. If this strategy is directed toward existing customers,
repositioning is sought through promotion of more varied uses of the product. In case the business
unit wants to reach new users, this strategy requires that the product be presented with a different
twist to the people Who have not been favourably inclined toward it. In doing so, care should be
taken to see that the current ones are not alienated. This strategy may also be aimed at presenting
new uses of the product; it requires searching for latent uses of the product, if any. Although, all
products may not have latent uses, there are products that may be used for purposes not originally
intended. The effective implementation of this product strategy results in increase in the sales growth
and profitability among existing customers and enlargement of the overall market among the new
users. The new product uses as an outcome of such product strategy may be seen in augmented
sales, market share, and profitability among the new consumer segments.
India has an installed base of 1 million ink-jet printers under the brand HP Desk-Jet. Hewlett-
Packard India (HP) currently rules the market, selling more than two-thirds of all ink-jet printers in
India. The success of HP Desk-Jet is the result of a meticulously calibrated strategy. The product
was created by HP, one of America’s best-known computer firms, in the mid-1980s as a replacement
for dot-matrix printers which, apart from giving dotty print-outs, were intolerably slow and noisy. In
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Marketing Dynamics: Theory and Practice
1989, HP unveiled its Desk-Jet, meant for office use. By the end of the 1980s, HP was already
famous for its laser printers, which offered sharp quality, but were very expensive. Desk-Jet was
meant to bridge the price gap between laser printers and dot-matrix ones. It offered a resolution as
high as 300 dpi (dots per inch), and could almost match laser-quality printouts of plain text. But high
custom duties (300 percent) made Desk-Jet uncompetitive. In 1989, HP imported five Desk-Jet
printers, for trial runs (price: Rs 50,000). Local PC-maker PCL got 20 units. But the market gave a
thumbs-down to the product. In 1992, one year after the opening of the Indian economy, HP revived
the idea of marketing Desk-Jet. But this time, it was cautious. Godrej was appointed as its distributor.
Yet, the product didn’t get beyond sales of 5-10 units a month. In contrast, HP’s LaserJet - 4,
launched at the end of 1992, was an instant success. The market’s polarization defied logic. People
ought to have been excited by modern clarity at a price that did not break them away from the
traditional virtue of thrift. Yet, it took a market study in April-May 1993 to reveal the reasons for the
failure of DeskJet. The main market inhibitor, it turned out, was price. It was so much above the
austere dot-matrix that it did not qualify as a thrifty purchase. Then there were perceptual blocks.
Channel partners had reservations about the Desk-Jet’s ability to handle 132-column printing. It was
also seen as something only for graphics.
In response, in June 1993, HP came up with price points that were only slightly higher than dot-
matrix printers. Yet, people were too accustomed to the buzz of these old-fashioned printers to bother
replacing them. And everyone had dot-matrix, so why complain? The company knew that it had to
shake people out of their sense of conformism. HP was on the lookout for a disruptive market
programme, which would make people sit up and take notice. But the big challenge was to convince
the trade that the dot-matrix era would end soon. In July 1993, Godrej organized a reseller meet in
Goa, which brought together top 100 dealers the distribution firm. National Panasonic and HP, two of
Godrej’s partners, were invited to address the conference. Sensing its big chance, HP got a creative
pitch worked out with MAA Bozell, its ad agency. The first presentation by National Panasonic was
a damp squib. The Japanese team reinforced old thinking - that the Indian market was primarily dot-
matrix. HP opened its show with an action sequence from the movie Star Trek VI-The Last Frontier.
The sequence showed the Starship Enterprise battling an invisible star-ship and destroying it. It ends
with Captain Kirk remarking ‘It is all about change, madam chancellor.’ On this cue, the HP team
projected the future market as an undiscovered entity, where change was inevitable. It projected
itself as a change agent, committed to delivering better value to customers, even if that meant busting
the comfortable old paradigm. Next, HP addressed the channel inhibitors that it had identified earlier.
Desk-Jet print-outs with 136 columns were distributed, and HP promised to meet price points that
were acceptable to the trade. It also promised advertising support. That did it. Resellers flocked to
the HP counter, and for once, the company felt buoyant about DeskJet’s prospects. HP decided to
focus on the West and North markets, and the product was re-launched in August, 1993. It sold 500
units that month. HP was back in business. By the end of the year, the product was selling across
India, with volumes up.
In December 1993, whispers of Canon’s imminent entry to the market were doing the rounds.
Sensing a threat, HP drew up a contingency plan. In February 1994, HP swung into action. The new
Desk-Jet 520 C of HP, a 600 dpi machine, to counter Canon’s 360 dpi machine was launched in the
Indian market. HP got a boost. By early 1994, HP was using a 50-60 member team to give
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demonstrations of DeskJet, with some 20,000 trial printers installed across the country. It paid off.
By 1995, DeskJet was selling 3,300 units a month. February 1995 saw the launch of Epson, with a
1,440 dpi printer. This was another serious challenge. An ad war ensued between Epson and HP
DeskJet. However, the mass market was still with dot-matrix printers, and HP realized that leadership
meant converting these customers, not retaliating against Epson. ‘The end of dot-matrix’ pitch was
backed by a trade-in scheme for people to exchange their old printers for new. It worked wonders.
Monthly sales jumped to 9,000 units in the first quarter of 1997. By now, corporate letters on dot-
matrix were coming to be seen as distinctly downmarket. The need for clarity had risen from ‘latent’
to ‘felt’ status in India, at least amongst those in the loop of modern advancements. Yet, there was no
room for complacency. A new ad, titled ‘Epson’s bluff’ was put out to counter all the claims of the
rival. HP kept the excitement level high; any dormancy could risk a loss of leadership. In August
1997, it launched a series of new printers under Freedom Printers, to celebrate 50 years of India’s
independence. HP followed this with a series of imaginative package deals. By December 1997, HP
was ready to broaden its viewfinder and assume a wider sort of leadership of the Indian printers
market. Its communication made a strategic shift from technical aspects to the emotive feel of the
brand. In February 1998, HP created an advertisement based on the movie Mannequin. It was
about ‘What happens when a man falls in love with an HP printer’, and showed a Desk-Jet transforming
into a girl and dancing away to eternal happiness with a man. Roses and heart-shaped chocolates
were given out with every DeskJet purchase with a inscription ‘I love my HP Desk-Jet’.
On the retail front, HP opened exclusive stores in Delhi and Mumbai. By the end of 1998, it was
selling 18,000 printers a month. Towards the end of 1998, FCB-Ulka replaced MAA Bozell as the
brand’s ad agency. In 1999, Canon and Epson both turned aggressive. HP DeskJet’s market share
dipped from 72 to 59 percent that year. But the market was growing so fast that its monthly
numbers rose. By mid 2000, HP had managed to stave off the attacks of Epson and Canon, and
reached 31,000 units per month – which took its market share back above two-thirds of the market.
HP also brought in some innovations in logistics. With the help of advanced computer systems, it
introduced end-to-end stock management. This speeded up the distribution while also ensuring that
there were no gaps. Now that the dot-matrix printers have been overtaken as a technology, HP has
decided to penetrate India as deep as possible. To tap the upcountry market, HP has introduced the
DeskJet 630 series at a reasonable price bargain. Today, India is the second largest printer market
for HP in the Asia-Pacific region, after South Korea. Yet, the market still needs plenty of expansion.
The PC-printer ‘connect rate’ is still only 40-45 percent in India. Hardware costs are still too high
here. For example, a printer that sells for $110 in India, would sell in China for around $70. Globally,
colour photo realistic printing is now in vogue. Not so in India. Presently, 80 percent of the printing is
black & white. Another global trend is towards multi-functional products, which roll the benefits of a
printer, scanner, fax machine and copier into one machine. In the US, such all-in-one machines
constitute 16 percent of the printers market. In India, they make up a minuscule 0.5 percent.
Product overlap strategy may be understood as competing against one’s own brand through
introduction of competing products, use of private labelling, and selling to original-equipment
manufacturers. Such product overlap strategy is developed and implemented by the companies to
attract more customers to the product and thereby increase the overall market and to work at full
capacity and spread overhead. This strategy also supports to sell to competitors; to realize economics
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Marketing Dynamics: Theory and Practice
of scale and cost reduction. Each competing product must have its own marketing organization to
compete in the market for making the product overlap strategy a success. It is also necessary to this
strategy that private brands should not become profit drains and each brand should find its special
niche in the market. If that doesn’t happen, it will create confusion among customers and sales will
be hurt. However, in the long run, one of the brands may be withdrawn, yielding its position to the
other brand. The successful planning and implementation of product overlap strategy would result in
increasing the market share and growth.
Colgate-Palmolive Canada (CPC) manufactures a range of household, health, and personal
care products. Among CPC´s major brands are ABC, Arctic Power, and Fab (laundry
detergents), Palmolive (dishwashing liquid), Ajax (cleanser), Irish Spring (bar soap), Ultra
Brite and Colgate (toothpastes), Halo (shampoo), and Baggies (food wrap). ABC brand of
the company had made strong gains in the past four years, moving from sixth to second
place in market share based on its value position. ABC was positioned as the low-priced,
good-quality cleaning detergent. Arctic Power had been positioned as the superior cleaning
laundry detergent specially formulated for cold water washing. Though Arctic Power had
been positioned as a product for cold water washing segment of consumers where ABC was
also in use by the consumers as an economy product, had overlapped with the existing
consumer segment of ABC. The positioning strategies of these brands reflected the benefit
segmentation approach used to market laundry detergents but still had entangled competition.
The overall objective of Arctic Power was to continue profit development by maintaining
modest unit volume growth in Québec and the Maritimes while developing the Alberta
British Columbia regions.
8
Product scope strategy (PSS) deals with the perspectives of the product mix of a company.
The product scope strategy is determined by taking into account the overall mission of the business
unit. The company may adopt a single-product strategy, a multiple-product strategy, or a system-of-
products strategy. To increase economics of scale by developing specialization for the single product
a company may focus the PSS. This strategy may be aimed for multiple products to cover the risk of
potential obsolescence of the single product by adding additional products. The PSS would also be
aimed to increase the dependence of the customer on the company’s products as well as to prevent
competitors from moving into the market in reference to the system of products. The company must
keep updated information on the product and even become the technology leader to avoid obsolescence
in case of the single products whereas products must complement one another in a portfolio of
products for building the strategy for multiple products. The company should have a close
understanding of consumer needs and uses of the products for effective implementation of the
strategy. The implementation of this strategy would yield results of increased growth, market share,
and profits with all strategies discussed. With system-of-products strategy, the company achieves
monopolistic control over the market, which may lead to some problems with the Department, and
enlarges the concept of its product/market opportunities.
Product-design strategy deals with the degree of standardization of a product. The company
has a choice among the following strategic options viz. standard product, customized product, and
8 Cravens David: Strategic Marketing, Boston. McGraw Hill, 2000
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standard product with modifications. To develop the standard product the company should aim to
increase economics of scale while the company should focus the strategy for customized product to
compete against mass producers of standard products through product design flexibility. The company
needs to do a close analysis of product/market perspectives and environmental changes, especially
technological changes. The implementation of this strategy would benefit the company to increase in
growth, market share, and profits. On the contrary the product elimination strategy aims at shaping
the best possible mix of products balancing the total business This strategy would help to eliminate
undesirable products because their contribution cost and profit is too low and they do not fit in the
overall business strategy. No special resources are required to eliminate a product. However, it is
impossible to reverse the decision once the elimination has been implemented. An in-depth analysis
must be done to determine (a) the causes of current problems; (b) the possible alternatives, other
than elimination, that may solve problems (e.g., Are any improvements in the marketing mix possible?);
and (c) the repercussions that elimination may have on remaining products or units (e,g., Is the
product being considered for elimination complementary to another product in the portfolio? What
are the side effects on the company’s image? What are the social costs of elimination?). In the short
run, cost savings from production runs, reduced inventories, and in some cases an improved return on
investment can be expected by implementing this strategy. However, in the long run, the sales of the
remaining products may increase because more efforts are now concentrated on them.
A new-product strategy is difficult to implement, if a “new product development system” does
not exist within a company. Five components of this system should be assessed: (a) corporate aspirations
towards new products, (b) organizational openness to creativity (c) environmental favour towards
creativity, (d) screening method for new ideas, and (e) evaluation process. The new product strategy
is required to meet new needs and to sustain competitive pressures on existing products. In the first
case, the new-product strategy is an offensive one; in the second case, it is a defensive one.
Product diversification strategy is developed for developing unfamiliar products and markets
through (a) concentric diversification (products introduced are related to existing ones in terms of
marketing or technology) (b) horizontal diversification (new products are unrelated to existing ones
but are sold to the same customers), and (c) conglomerate diversification (products are entirely
new). The example may be cited of Nestlé milk products like milk powder, chocolates, yoghurts etc.
that exhibit the concentric diversification whereas the unrelated products of Gillette Company such
as men’s toiletries, batteries (Duracell) and dental care products (Oral-B) establish the example of
horizontal diversification. The Tata group of companies in India which are involved in fully unrelated
and new products like steel, telecommunication, textiles and consumer goods may be considered as
the example of conglomerate diversification. Diversification strategies respond to the desire for
growth when current products /markets have reached maturity and stability by spreading the risks of
fluctuations in earnings. The diversification strategies would also be required for the business security
when the company may fear backward integration from one of its major customers, and credibility to
have more weight in capital markets. In order to reduce the risks inherent in a diversification strategy,
a business unit should consider the following parameters:
• Diversify its activities only, if current product/market opportunities are limited,
• Build good knowledge of the area in which it diversifies,
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Marketing Dynamics: Theory and Practice
• Provide the products introduced with adequate support, and
• Forecast the effects of diversification on existing lines of products.
Effective implementation of product diversification strategy would benefit the company in terms
of increase in the sales and greater profitability and flexibility.
Value-marketing strategy concerns delivering on promises made for the product or service.
These promises involve product quality, consumer service, and meeting time commitments. Value-
marketing strategies are directed toward seeking total consumer satisfaction. It means striving for
excellence to meet customer expectations. To implement value-marketing strategy a company should
check the following requirements:
• Examine customer value perspective,
• Design programmes to meet customer quality, service, and time requirements, and
• Offer training to the employees and distributors to deliver on promises.
This strategy enhances customer satisfaction, which leads to customer loyalty and, hence, to
higher market share. This strategy makes the company less vulnerable to price wars, permitting the
firm to charge higher prices that may help in earning higher profits.
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SELECTED READINGS
Aaker, David A., and Erich Joachimsthaler: Brand Leadership. NewYork: Free Press, 2000.
Alden, Dana L. Jan-Benedict E. M. Steenkamp; and Rajeev Batra: Brand Positioning through
Advertising in Asia, North America and Europe: The Role of Global Consumer Culture, Journal of
Marketing, 63 January 1999, pp. 75-87.
Cooper, Robert G.: Selecting New Product Projects: Using the NewProd System, Journal of’ Product
Innovation Management, Vol. 2, No.1, March, 1985, pp. 34-44.
Craven David W.: Strategic Marketing, 7
th
Edition, McGraw Hill, New York, 1999
Ganesh, Jaishankar, V. Kumar and Velavan Subramaniam: “Learning Effects in Multinational Diffusion
of Consumer Durables: An Exploratory Investigation, Journal of the Academy of ,Marketing
Science, 25, Summer 1997, pp. 214-228.
Featherstone, Mike : Global Culture: An Introduction, in Global Culture: Nationalism,
Globalization and Modernism, Featherstone, Mike (ed.), London: Sage Publications,1990.
Hassan, Salah S. and Lea Katsanis: Global Market Segmentation Strategies and Trends, in
Globalization of Consumer Markets: Structures and Strategies, Salah S. Hassan and Erdner
Kaynak (eds.), New York: International Business Press, 1994, 47-62.
Jain Subhash C. : Marketing Planning and Strategy, 6
th
Edition, Thomson Learning, Ohio, 2000.
John Quelch and David Kenny: Extend Profit, Not Product Lines, Harvard Business Review,
September-October, 1994.
Kotlar Philip : Marketing Management, 6
th
Edition, Prentice Hall, Englewood Cliffs, NJ 1998
Olins, W : Corporate Identity, London: Thames and Hudson,1989.
Parsons, Andrew : Nestlé: The Visions of Local Managers, McKinsey Quarterly, No. 2, 1996,5-29.
Samu, S., Krishnan, H. S., and Smith, R. E. : Using Advertising Alliances for New Product Introduc-
tion: Interactions Between Product Complementarity and Promotional Strategies, Journal of Mar-
keting, Vol. 63 (1), 57-74.
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Marketing Dynamics: Theory and Practice
Case 2.1
L’OREAL NETHERLANDS: PRODUCT MARKETING STRATEGY IN EUROPE
In 1992, the L’Oreal’s Group was the largest cosmetics manufacturer in the world having its
headquarters in Paris. It had subsidiaries in over 100 countries. In 1992, its sales were $6.8 billion (a
12 percent increase over 1991) and net profits were 417 million dollars (a 14 percent increase).
France contributed 24 percent of total worldwide sales, Europe (both western and eastern countries
excluding France provided 42 percent, and the United States and Canada together accounted for 20
percent. The rest of the world accounted for the remaining 14 percent. L’Oreal’s European subsidiaries
were in one of two groups.
• Major countries - England, France, Germany, and Italy
• Minor countries - The Netherlands and nine others
Company believed that innovation was its critical success factor. It thus invested heavily in
research and development and recovered its investment through global introductions of new products.
All research activities were centred in France. As finished products were developed, they were
offered to subsidiaries around the world. As brand life cycles for cosmetics could be very short, L’
Oréal tried to introduce one or two new products per year in each of its worldwide markets.
International subsidiaries could make continue or withdraw decisions on products, but they generally
did not have direct input into the R&D process. In established markets, such as the
Netherlands, any new product line introduction had to be financed by the current operations in
that country.
L’Oréal marketed products under its own name as well as under a number of other individual
and family brand names. In the 1970s, it acquired Laboratories Garnier, and this group was one of the
largest divisions of L’ Oréal. In France, with a population of about 60 million people, Gamier was a
completely separate division, and its sales force competed against the L’Oréal division. In the
Netherlands, however, the market was much smaller (about 15 million people), and Garnier and
L’Oréal products would be marketed by the same sales force.
Dutch consumers had little, if any, awareness or knowledge of Gamier and had not formed a
brand image. The Gamier sunscreen was a new product and few Dutch women knew of the brand.
It was, therefore, very important that any new Gamier products launched in the Netherlands had a
strong concept and high market potential. To accomplish this, the products needed to offer unique,
desired, and identifiable differential advantages to Dutch consumers. Products without such an edge
were at a competitive disadvantage, and could fail and create a negative association with the Garnier´s
name, causing potential problems for future Gamier product introductions.
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THE DUTCH MARKET
In the late 1980s, 40 percent of the Dutch population (about the same percentage as in France) was
under 23 years old. Consumers in this age group were the heaviest users of cosmetics and toiletries.
However, like the rest of Europe, the Dutch population was aging and the fastest-growing population
segments were the 25 or older groups.
Other demographic trends included the increasing number of Dutch women working outside of
the home. The labor force participation rate of women in the Netherlands was 29 percent. This was
much lower than the 50 percent or above in the United Kingdom or United States, but the number of
women working outside the home was increasing faster in the Netherlands than it was in the United
Kingdom or the United States. Dutch women were also delaying childbirth. As a result of these
trends, women in the Netherlands were exhibiting greater self-confidence and independence; women
had more disposable income and more of them were using it to buy cosmetics for use on a daily
basis.
Despite their rising incomes, Dutch women still shopped for value, especially in cosmetics and
toiletries. In the European Union (EU), the Netherlands ranked fourth in per capita income; but it
was only sixth in per capita spending on cosmetics and toiletries. Thus, the Dutch per capita spending
on personal care products was only 60 percent of the amount spent per capita in France or Germany.
As a result of both a small population (13 million Dutch to 350 million EU residents) and lower per
capita consumption, the Dutch market accounted for only 4 percent of total EU sales of cosmetics
and toiletries.
SYNERGIE
Synergie was a line of facial skin care products consisting of moisturizing cream, anti- ageing day
cream, anti-wrinkle cream, cleansing milk, mask, and cleansing gel. It was made with natural
ingredients, and its advertising slogan in France was “The alliance of science and nature to prolong
the youth of your skin.”
SKIN CARE MARKET
Skin care market was the second largest sector of the Dutch cosmetics and toiletries market. For
the past five quarters, unit volume had been growing at an annual rate of 12 percent and dollar
sales at a rate of 16 percent. This category consisted of hand creams, body lotions, all-purpose
creams, and facial products. Products within this category were classified by price and product
type. Skin care products produced by institutes such as Shisedo or Estée Lauder were targeted at
the high end of the market. These lines were expensive and were sold through personal service
perfumeries that specialized in custom sales of cosmetics and toiletries. At the other end of the
price scale were mass market products like Ponds, which were sold in drugstores and supermarkets.
In the last couple of years, a number of companies, including L’Oréal had begun to offer products in
the mid price range.