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Polish market cosmetics

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Ganca Ganca

on 22 October 2015

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Transcript of Polish market cosmetics

Mariza’s expansion to India.
Market obstacles
Polish market of cosmetics
domestic market
what happened during last year?
channels of distribution
why should we invest in this market?
one of the most developing and dynamic sector in Poland,

not affected by crisis,

„life in harmony with nature” - sales raised up to 10%!

natural cosmerics,

wellness and spa.
Segmentaion of cosmetics market in Poland (October to November), 2011
source: Nielsen
it is underestimated,
huge expenses monthly
(approx. 42Zł) and annually,
weakly developed marketing,
trends of youth
Polish cosmetics company
Location: Rząska, near Kraków
Based on natural ingredients ( reaserch and
development laboratory)
Mariza also provides cooperative services

Basic Discount-30% calculated from the list prices (LP) receive for each order, regardless of its size.

- an order for a specific amount of money
- Invite more people to cooperation

Multi level marketing
Since 2011 Mariza Distribution ,which is the exclusive distributor of brand Mariza and Mariza Selective, works in the network marketing industry.

after long disputes, we all found ONE firm the most accurate.
marketing plan..
Multi level marketing
Since 2011 Mariza Distribution, which is the exclusive distributor of brand Mariza and Mariza Selective, works in the network marketing industry.


Consultants- our key power!
*Value according to list prices LP
** Value according to net price NP (list price - 30% discount basic – VAT)

Earnings of consultants


NP- net price

Titles and awards

1. EU fund:
Title: ,,Preparation of Export Development Plan for Cosmetics Company Mariza,,
Fund: European Regional Development Fund
Program: Operational Programme of Innovative Economy
Value of the project: 12500 zł
Funding from the EU: 8500 zł

2. Owner’s equity: 250000 zł
3. Private investor: 200000 zł

Mariza’s capital

1. 6000 consultants- 30% consultants profits
2. Cost including laboratory
3. Employees in a laboratory- production (15), reaserch (10)
4. Fixed costs

Approximation regarding costs of this company

what do people think about
Mariza's cosmetics are way cheaper from AVON's ones. They are of better quality!
Cheap as chips! Great suprise, because it's not a dupery :)
I don't have to leave my house to buy it! I love the variety of colours. They're so longlasting!
I think they have the best offer for customers and consultants.
Brief profile
756 950 km²
18,01 mln
Largest cities:
Santiago Metropolis, Concepción, Valparaíso
Countries best for expansion
Age structure:
0-14 years: 21%
15-24 years: 16.6%
25-54 years: 43.2%
55-64 years: 9.6%
65 years and over: 9.7%
Natural resources
: copper, timber, iron ore, nitrates, precious metals, molybdenum, hydropower
Chile's cosmetics sector
source: Godrej agenda
General market overview
Market demand
Total retailed sales of cosmetics in 2010 - 1.9 bilion!
Adults use on general 5 different cosmetics
per day,
People are self - conscious of skin care,
Chilean annual spendings on cosmetics - 103USD

Doing business in Chile - what should we remember about?
- lot of time spent on waiting for answers or meetings,
- long negotiations,
- networking and relationship,
- formal dress code,
- over - promising, under - delivering,

Market value dynamics (bln USD) FORECAST

Market segmentation
Channels in selling cosmetics


Russian cosmetics companies, which are also concerned about reducing costs.
Most Russian customers - about 80% -are small regional cosmetics companies.

Russian supply

Russian demand

- research labolatories,
- cosmetic companies with their own brands
Cosmetics import to Russia

- Great competition,
- Difficulties in cross-border trading,
- Registration/certification process in Russia
- Requirement of direct contact between the authorized manufacturer’s representative and experts

General market overview
Market obstacles
: 3.28 million sq.km
1,17 billion
Main Cities
: Mumbai ( 20.5 mln), Kolkata (15,6 mln),Delhi
(22 mln), Hyderabad (6,8 mln) and Chennai (6,5 mln)

Age‐group distribution
Below 45 years- 85% of population and 55% of its people below the age of 25 years of age

: tropical monsoon in South India and temperate in North India
Natural resources
: manganese, bauxite, iron ore, mica, chromites, diamond, limestone, titanium ore, natural gas, petroleum,
Hinduism, Islam, Christianity and Sikhism are the four main religions followed in India.

India- brief profile
India’s Cosmetics Sector
market size: 2,3 billion Euros in 2008
Personal Cae Market Segments, by Value
Principal Market Segments

- Skin and Body care products,
- Hair Dyes and Colours,
- Colour Cosmetics,
- Men’s Grooming Products,
- Fragrances and Deodorants,
- Herbal Products.
Urban Personal Care Habits and

Average expenditure on cosmetics per month by men: 8 Euros
Average expenditure on cosmetics per month by women: 8-16 Euros

Word of mouth, friends, window‐shopping, visits to shops etc. are sources of information about new products.

The rapid demographic transition,
Rising affluence and more working women are key drivers for rapid growth in the beauty and cosmetics sector in India

Factors influencing demand in India
General market overview
and we have finally chosen..
Expansion strategy

Entry barriers
Registration for Import of Cosmetics products

Cosmetic regulation in India

1. Apply for registration, along with product samples,formulation, details of production facilities process, product ingredients, and analysis reports.
2. The labeling requirements.
3. Declaration by the manufacturer or importer that the cosmetics comply with the provisions of Chapter III of the Drugs and Cosmetics Act and Rules.
4. High import duties on cosmetic products.
Target group- women

Main location:


Developing cosmetics made of herbal products to appeal to Indian consumers,
Introducing our collection of spa products.

Ideas for the future

Corporate culture

our labels
why Mumbai?
For the following reasons!
• commercial capital of India,
• with largest concentration of business families and overall high disposable incomes
• fashion capital of India - front runner and trend leader in the beauty/fashion
• home to Bollywood,
• the highest spenders on personal care, and role models for the masses
head director
financial director
marketing director
PR managers
HR managers
coaches for consultants
what's next?
Brief profile
Age structure:
0-14 years: 16%
15-24 years: 11.5%
25-54 years: 45.9%
55-64 years: 13.5%
65 years and over: 13.1%

Natural Resources:
wide natural resource base including major deposits of oil, natural gas, coal, and many strategic minerals, reserves of rare earth
Financial statement
source: Nielsen
General information about top 10 countries
Women in labourforce
Market of cosmetics
Doing business
Full transcript