Cosmetics Market Report: Buying Behavior, Segmentation & Strategy

This report provides a detailed analysis of the cosmetics market, focusing on consumer buying behavior and market segmentation strategies. It examines how a company influences customers to purchase products by understanding the buying behavior model, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. The report identifies segmentation variables such as geographic, demographic, behavioral, and psychological factors used to segment the market effectively. It also identifies the targeting strategy employed and analyzes the positioning bases used to create a specific image in the customer's mind. Furthermore, the marketing mix is analyzed by identifying the types of features added to the product, the pricing strategy, the distribution strategy, and the promotional tools used to reach customers. The analysis provides a comprehensive understanding of the strategies employed in the cosmetics market.

Contents
Acknowledgement.....................................................................................................................................22
1. Explain how the said company has influenced customers to buy the product that you picked? Explain
the answer using the model of buying behavior related to the market to which the chosen business
belongs. (Kotler P., Marketing Management,11th edition)........................................................................24
2. As per the market data & information;..................................................................................................26
2.1 Identify the segmentation variables used by the organization to segment the market (The variables
should consist of geographic, demographic, behavioral, and psychological).........................................26
2.2 Identify which targeting strategy is used for the new product to target the customers with reasons.
...............................................................................................................................................................30
2.3 Identify two positioning bases which are being used by the company to position the new product
in customers’ mindset by drawing the positioning map........................................................................32
3. As explained by Kotler & Armstrong “Marketing mix is the set of marketing tools the firm uses to
implement its marketing strategy”. Analyze the marketing mix of the chosen product by addressing the
following;...................................................................................................................................................33
3.1 Identify the types of features being added to the product. ............................................................33
3.2 Identify the pricing strategy applied by the organization for the new product................................34
3.3 Identify the distribution strategy followed by the organization to distribute the product...............35
3.4 Identify the promotional tools used for promoting the new product to customers by giving
reasons..................................................................................................................................................37
Executive Summary...................................................................................................................................39
Conclusion.................................................................................................................................................39
Bibliography...............................................................................................................................................41
TABLE OF FIGURES
FIGURE 1 SEGMENTATION VARIABLES..........................................................................................................................25
FIGURE 2 DISTRIBUTION STRATEGY..............................................................................................................................34
FIGURE 3 PROMOTIONAL TOOLS..................................................................................................................................36

Learning Outcomes 03 & 04.
1. Explain how the said company has influenced customers to buy the
product that you picked? Explain the answer using the model of buying
behavior related to the market to which the chosen business belongs.
(Kotler P., Marketing Management,11th edition)
The company has influenced customers to buy the "Makeup for All Skin Tones" product, using the model
of buying behavior related to the market:
The company recognized the need for makeup products that cater to all skin tones, understanding the
increasing demand for inclusivity and diversity in the beauty industry. They acknowledged that
customers with different skin tones often faced challenges in finding suitable makeup options that
complemented their unique complexion. By addressing this need, the company aimed to empower
customers and make them feel represented and valued.
To develop the "Makeup for All Skin Tones" product, the company conducted extensive market research
and gathered insights on the preferences, needs, and challenges faced by customers with diverse skin
tones. They explored the market landscape, competitor offerings, and consumer feedback to identify the
gaps and opportunities in the market. This thorough information search allowed them to gain a deep
understanding of the target market and tailor their product accordingly.
Armed with valuable insights, the company formulated the "Makeup for All Skin Tones" product with a
range of shades specifically designed to match and enhance the beauty of different skin tones. They
focused on creating captivating shades that highlight the natural radiance of individuals, ensuring that
customers can find shades that complement their unique complexion. By offering a diverse range of
shades, the company aimed to meet the specific needs and preferences of customers with various skin
tones.
The company also emphasized the quality and features of the product to influence customers' buying
behavior. They highlighted the lustrous shine and long-lasting formula, ensuring attention-grabbing
glamour that stays in place throughout the day. Additionally, they emphasized the use of nourishing

ingredients such as vitamin E and botanical extracts, which provide hydration and nourishment for soft
and smooth lips. These features appealed to customers who value both beauty and skincare benefits in
their makeup products.
Furthermore, the company addressed customer concerns by developing a lightweight, non-sticky texture
that offers a comfortable wear experience. They understood that customers want makeup products that
feel pleasant and effortless to apply, enhancing their overall user experience.
To further influence customers to buy the "Makeup for All Skin Tones" product, the company
incorporated SPF protection into the formulation. This feature appealed to customers who prioritize sun
protection and recognize the importance of shielding their lips from harmful UV rays.
Through their marketing and promotional efforts, the company effectively communicated these product
benefits and features to their target market. They leveraged various channels such as social media,
influencer collaborations, and targeted advertising to reach and engage with customers who value
inclusivity, quality, and convenience in their makeup choices. By aligning their messaging with the values
and aspirations of their target market, the company successfully influenced customers to buy the
"Makeup for All Skin Tones" product.
Overall, the company's thorough understanding of the market, customer needs, and preferences,
combined with their strategic product development and marketing efforts have played a significant role
in influencing customers to buy the "Makeup for All Skin Tones" product. By recognizing the importance
of inclusivity and addressing the specific needs of customers with diverse skin tones, the company has
effectively positioned itself as a trusted brand that values and caters to the unique beauty requirements
of its customers.
The company has influenced customers to buy the "Makeup for All Skin Tones" product by understanding
and applying the model of buying behavior related to the cosmetics market. According to Kotler's model
of buying behavior, the decision-making process for purchasing cosmetic products involves several
stages:
 Need Recognition: The Company recognized the need for makeup products that cater to all skin
tones. They identified the diverse customer base and the desire for inclusive beauty products.

 Information Search: The Company conducted market research and gathered information on the
preferences, needs, and challenges faced by customers with different skin tones. They identified
the gaps in the market and the lack of suitable options for various skin tones.
 Evaluation of Alternatives: The Company developed a range of makeup products specifically
formulated and designed to suit all skin tones. They ensured a wide variety of shades and
undertones to cater to the diverse needs and preferences of customers.
 Purchase Decision: Through marketing and promotional activities, the company effectively
communicated the unique selling proposition of their "Makeup for All Skin Tones" product. They
highlighted its inclusive nature, quality, and ability to enhance the beauty of individuals with
different skin tones.
 Post-Purchase Behavior: The Company aimed to create customer satisfaction and loyalty by
delivering on their promise of providing makeup products that truly work for all skin tones. They
encouraged customers to provide feedback and engage with the brand through various
channels.
By addressing the specific needs of customers with different skin tones and offering a comprehensive
range of products, the company successfully influenced customers to choose their "Makeup for All Skin
Tones" product. They demonstrated an understanding of the market's buying behavior model and
effectively catered to the diverse preferences and demands of the target market. (CHAKRABORTY)
2. as per the market data & information;
2.1 Identify the segmentation variables used by the organization to segment
the market (The variables should consist of geographic, demographic,
behavioral, and psychological)

Figure 1 segmentation variables
It is necessary to analyze the segmentation variables used by Unilever to segment the Sri Lankan
cosmetics market. Segmentation variables allow organizations to divide the market into distinct groups
based on various characteristics and factors. Unilever likely utilizes a combination of geographic,
demographic, behavioral, and psychological variables to segment the market effectively. Let's explore
each category:
1. Geographic Segmentation: Unilever may segment the market based on geographic variables such as
region, city size, or climatic conditions. Since Unilever operates globally, it can also consider country-
specific factors. In the case of the Sri Lankan market, Unilever may focus on specific regions or cities
where consumer demand for cosmetics is higher or where there is a concentration of target
customers.
Under the geographic segment, Unilever may target different regions or cities within Sri Lanka based on
their specific characteristics and market demand for cosmetics. Here are some potential geographic
segments that Unilever could consider:

1. Urban Areas: Unilever may focus on major urban centers such as Colombo, Kandy, and Galle,
where there is a higher concentration of population and greater access to beauty retailers.
Urban areas often have a larger customer base and a higher demand for cosmetics, including
makeup products for various skin tones.
2. Suburban Areas: Unilever could also target suburban areas surrounding major cities, as these
areas often have a growing population and increasing disposable income. Consumers in
suburban areas may have similar needs and preferences as urban consumers but with a
slightly different demographic profile.
3. Rural Areas: Unilever may also consider targeting rural areas where there is a significant
population and a growing interest in beauty and personal care products. This segment may
require a different marketing approach and distribution strategy, considering factors such as
accessibility, affordability, and cultural preferences.
4. Tourist Destinations: Sri Lanka is a popular tourist destination, and Unilever could focus on
areas with high tourist footfall, such as beach resorts, cultural sites, and popular tourist cities.
Tourists often have different purchasing behaviors and preferences, and Unilever could tailor
its marketing efforts to cater to their specific needs and preferences.
2. Demographic Segmentation: Demographic variables are commonly used in market segmentation.
Unilever may consider factors such as age, gender, income, occupation, and education level. For the
"Makeup for All Skin Tones" product, Unilever's target market may include individuals of diverse
ages, genders, and income levels who are interested in cosmetics and beauty products. The
product's inclusive nature suggests that it caters to individuals of various ethnic backgrounds and
skin tones.
Under the demographic segmentation, Unilever may consider the following variables to segment the
market based on demographic characteristics:
1. Age: Unilever may target different age groups with specific makeup products tailored to their
needs. For example, they may offer products for younger consumers in their teens and early

twenties who are more likely to experiment with makeup trends, as well as products for older
age groups that focus on anti-aging or skincare benefits.
2. Gender: Unilever may develop products that cater to specific gender preferences. While
makeup products have traditionally been associated with women, there is a growing market
for makeup products targeted towards men. Unilever could introduce gender-specific or
gender-neutral makeup products to capture a wider consumer base.
3. Income: Unilever may segment the market based on income levels to offer products at
different price points. They could develop premium product lines targeting higher-income
consumers who are willing to pay for luxury cosmetics, as well as more affordable options for
price-conscious consumers.
4. Occupation: Unilever may consider targeting specific occupational groups, such as working
professionals, students, or homemakers. Each group may have different makeup needs and
preferences based on their lifestyle, daily routines, and social expectations.
5. Ethnicity: Sri Lanka is a diverse country with various ethnic groups. Unilever may develop
makeup products that cater to the specific beauty needs and preferences of different
ethnicities, including skin tone variations and cultural beauty practices.
3. Behavioral Segmentation: Behavioral variables involve analyzing customers' behaviors, preferences,
and purchase patterns. Unilever may segment the market based on factors such as usage rate, brand
loyalty, benefits sought, and occasions of product usage. For example, Unilever may target frequent
makeup users who seek high-quality products that enhance their natural radiance. Additionally, the
company may target individuals who are conscious of ingredient quality, prefer sustainable products,
or value the convenience of long-lasting formulas.
Under the behavioral segmentation, Unilever may consider the following variables to segment the
market based on consumer behavior and patterns:
1. Usage Rate: Unilever may categorize consumers based on their usage rate of makeup products.
They could identify heavy users who frequently purchase and use makeup products, moderate

users who use them occasionally, and light users who use them sparingly. This segmentation
allows Unilever to target and tailor their marketing efforts to each usage segment.
2. Benefits Sought: Unilever may segment the market based on the specific benefits or outcomes
that consumers seek from makeup products. For example, some consumers may prioritize
products that provide long-lasting coverage, while others may be more interested in products
that enhance natural features or provide skincare benefits. By understanding the benefits
sought, Unilever can develop and market products that align with different consumer
preferences.
3. Occasions and Usage Situation: Unilever may consider how consumers use makeup products in
different occasions or usage situations. They could develop products specifically for daily use,
special events, or specific activities such as sports or outdoor activities. By addressing different
usage situations, Unilever can provide consumers with products that cater to their specific
needs.
4. Brand Loyalty: Unilever may segment the market based on consumers' brand loyalty and
preferences. They could target consumers who are loyal to specific brands and develop
strategies to retain and strengthen their loyalty. Additionally, they may also target consumers
who are open to trying new brands and focus on capturing their attention through innovative
products and marketing initiatives.
5. Purchase Behavior: Unilever may analyze consumers' purchasing behavior, such as frequency of
purchase, preferred channels, and factors influencing their purchase decisions. By understanding
consumer purchase behavior, Unilever can optimize their distribution strategies, pricing models,
and promotional activities to effectively reach and engage with their target consumers.
4. Psychological Segmentation: Psychological variables focus on consumers' attitudes, beliefs,
motivations, and lifestyles. Unilever may consider psychographic factors such as personality traits,
values, interests, and social class. For the "Makeup for All Skin Tones" product, Unilever may target
consumers who embrace diversity, value inclusivity, and prioritize self-expression through makeup.
The product may appeal to individuals who seek empowerment, confidence, and self-esteem
through beauty enhancement.

Psychological segmentation involves segmenting the market based on consumers' psychological
characteristics, attitudes, beliefs, motivations, and lifestyle. Unilever may use the following variables for
psychological segmentation in the context of the "Makeup for All Skin Tones" product:
1. Lifestyle: Unilever may consider consumers' lifestyles and how makeup fits into their daily
routines and self-expression. They may target consumers who lead active and busy lifestyles,
emphasizing the convenience and ease of use of their products. They may also target consumers
who prioritize self-care and beauty rituals, highlighting the transformative and empowering
aspects of makeup.
2. Personality Traits: Unilever may consider consumers' personality traits and target specific
segments based on traits such as adventurous, creative, natural, or sophisticated. By aligning
their product messaging and aesthetics with different personality traits, Unilever can appeal to
consumers on a deeper emotional level.
3. Values and Beliefs: Unilever may segment the market based on consumers' values and beliefs
related to beauty, diversity, and inclusivity. They may target consumers who prioritize ethical and
sustainable beauty practices, showcasing their commitment to responsible sourcing, animal
welfare, and environmental sustainability.
4. Attitudes towards Makeup: Unilever may segment consumers based on their attitudes towards
makeup, such as those who view it as a form of self-expression, those who use it for enhancing
natural features, or those who see it as a confidence booster. By understanding consumers'
attitudes, Unilever can develop messaging and product features that resonate with their specific
mindset and needs.
5. Emotional Drivers: Unilever may consider the emotional drivers behind consumers' purchase
decisions and use of makeup. They may target segments that seek products that make them feel
confident, beautiful, empowered, or glamorous. By tapping into consumers' emotions and
aspirations, Unilever can create compelling marketing campaigns that connect with their target
audience.
By utilizing a combination of these segmentation variables, Unilever can identify and understand
different customer segments within the Sri Lankan cosmetics market. This allows the company to tailor

its marketing strategies, product positioning, and communication efforts to effectively reach and connect
with each segment. By recognizing and catering to the unique needs, preferences, and characteristics of
various customer segments, Unilever can increase its competitiveness and achieve higher customer
satisfaction in the market. (Tow, 2023)
2.2 Identify which targeting strategy is used for the new product to target the
customers with reasons.
Unilever may use a differentiated targeting strategy for the new product "Makeup for All Skin Tones" to
target customers. A differentiated targeting strategy involves targeting multiple market segments with
specific marketing strategies tailored to each segment. This approach allows Unilever to effectively meet
the diverse needs and preferences of different customer groups.
Reasons for using a differentiated targeting strategy:
Market Segmentation
By identifying and targeting specific market segments, Unilever can tailor their marketing efforts
to the unique characteristics and demands of each segment. With "Makeup for All Skin Tones,"
Unilever recognizes the importance of addressing the diverse range of skin tones and
preferences among consumers. By developing a product that caters to a wide range of skin
tones, they can effectively target and appeal to different customer segments.
Increased Relevance
By focusing on specific customer segments, Unilever can ensure that their marketing messages
and product offerings are highly relevant to each group. This increases the chances of capturing
the attention and interest of customers who feel that the product is designed specifically for
them. For example, by highlighting the inclusive nature of the product and showcasing diverse
models with different skin tones in their marketing campaigns, Unilever can connect with
customers who value representation and inclusivity.
Competitive Advantage

The cosmetics industry is highly competitive, and targeting specific customer segments can
provide Unilever with a competitive advantage. By understanding the unique needs and
preferences of different segments, Unilever can differentiate their product from competitors and
create a strong brand image that resonates with customers. This can lead to increased customer
loyalty and market share.
To illustrate the targeting strategy used for "Makeup for All Skin Tones," the following table outlines the
target market segments, their characteristics, and the corresponding marketing strategies employed by
Unilever:
Target Market Segment Characteristics Marketing Strategy
Segment 1: Diverse Tones Customers with various skin Promote the product as suitable
for all skin tones
Tones and ethnicities Showcase diverse models
representing different tones
Segment 2: Natural Beauty
Enthusiasts
Customers who prefer natural
and organic products
Emphasize the use of natural
ingredients in the product
Position the product as eco-
friendly and sustainable
Leverage social media
influencers promoting natural
beauty
By adopting a differentiated targeting strategy and tailoring their marketing strategies to each segment,
Unilever can effectively reach and engage with diverse customer groups, increase product relevance, and
gain a competitive edge in the cosmetics market. (N, 2015) (Team, 2023)

2.3 Identify two positioning bases which are being used by the company to
position the new product in customers’ mindset by drawing the positioning
map.
Unilever's new product, "Makeup for All Skin Tones," is strategically positioned to address the diverse
needs and preferences of customers in the cosmetics market. The introduction of this product signifies
Unilever's commitment to inclusivity and catering to a wide range of skin tones, acknowledging the
unique beauty of individuals from various ethnic backgrounds. By recognizing and embracing the
importance of diversity, Unilever aims to establish itself as a brand that celebrates and empowers
individuals of all skin tones, ensuring that everyone can find suitable and high-quality cosmetics that
enhance their natural radiance. This positioning approach aligns with the evolving market dynamics and
increasing demand for products that reflect and embrace the diversity of consumers. By focusing on
inclusivity in its product positioning, Unilever sets itself apart from competitors and taps into a growing
segment of customers who prioritize representation and inclusivity in their beauty choices.
The company may be using two positioning bases to position the new product "Makeup for All Skin
Tones" in customers' minds: (1) Inclusivity and (2) High Quality.
Inclusivity
Positioning the product based on inclusivity involves highlighting its ability to cater to a wide
range of skin tones and ethnicities. By emphasizing that the product is designed to be inclusive
and suitable for all, Unilever can position itself as a brand that embraces diversity and promotes
representation. This positioning strategy aims to resonate with customers who value inclusivity
and seek products that address their unique needs. The positioning map for inclusivity would
illustrate how "Makeup for All Skin Tones" is positioned to be inclusive across different skin
tones, with Unilever's product occupying a central and inclusive position in the map, while
competitors' products might be positioned towards specific skin tones or limited ranges.
High Quality
Positioning the new product based on high quality involves emphasizing its superior formulation,
performance, and benefits. Unilever can position "Makeup for All Skin Tones" as a premium
product that offers excellent coverage, long-lasting wear, and a luxurious feel. By highlighting the

quality of ingredients, the product's ability to enhance natural radiance, and its nourishing
properties, Unilever can appeal to customers who prioritize quality and seek premium cosmetic
products. The positioning map for high quality would showcase Unilever's product positioned
towards the top-right corner, representing high quality, while competitors' products might be
positioned at different levels of quality.
By using these two positioning bases, Unilever can differentiate its product from competitors, create a
distinct brand image, and appeal to customers who value inclusivity and high-quality cosmetics. The
positioning map would visually represent the company's positioning strategy and showcase the unique
position of "Makeup for All Skin Tones" in customers' minds, highlighting its inclusivity and high quality
compared to competitors. (Sandhya.M)
3. As explained by Kotler & Armstrong “Marketing mix is the set of
marketing tools the firm uses to implement its marketing strategy”.
Analyze the marketing mix of the chosen product by addressing the
following;
3.1 Identify the types of features being added to the product.
Unilever's "Makeup for All Skin Tones" incorporates a range of features that cater to the diverse needs
and preferences of customers. Firstly, the product focuses on providing a wide variety of shades
specifically designed to match different skin tones. This extensive shade range ensures that individuals
with fair, medium, or deep skin tones can find a suitable match, allowing them to feel confident and
empowered in their beauty choices. By offering a comprehensive selection of shades, Unilever
demonstrates its commitment to inclusivity and addresses the longstanding issue of limited options for
individuals with non-mainstream skin tones.
In addition to the extensive shade range, the product emphasizes the use of high-quality and nourishing
ingredients. Infused with vitamin E and botanical extracts, the makeup not only enhances the

appearance of the skin but also promotes its health and well-being. These nourishing ingredients provide
hydration, leaving the skin soft, smooth, and supple. By incorporating such beneficial components,
Unilever aims to differentiate its product from competitors and offer added value to customers who
prioritize skincare and overall skin health.
Overall, the features of Unilever's "Makeup for All Skin Tones" revolve around inclusivity, shade diversity,
and the use of nourishing ingredients. By addressing the specific needs of customers with different skin
tones and focusing on the overall health and appearance of the skin, Unilever ensures that the product
meets the expectations and demands of its target market. These features align with the company's
marketing strategy of catering to a diverse consumer base and providing high-quality cosmetics that
enhance natural beauty while promoting skin health.
3.2 Identify the pricing strategy applied by the organization for the new
product.
Pricing Strategy for "Makeup for All Skin Tones"
Pricing Strategy Description
Market-Oriented Unilever sets the prices of "Makeup for All Skin Tones" based on
market factors and competitor pricing. The prices are determined by
considering the prevailing market rates and aligning with the pricing
strategies of similar products in the cosmetics industry. This approach
ensures that the product remains competitive and attractive to the
target market.
Premium The pricing strategy for "Makeup for All Skin Tones" incorporates a
premium pricing approach. Unilever positions the product as a high-
quality offering that caters to the diverse needs of customers. The
premium pricing strategy allows the company to communicate the
value and superior features of the product, such as the extensive
shade range and the use of nourishing ingredients. By setting slightly
higher prices, Unilever conveys a sense of exclusivity and quality to

the target market.
Product Bundle Unilever may also employ a product bundle pricing strategy for
"Makeup for All Skin Tones." This involves offering special packages
or sets that include multiple products or additional cosmetic items
alongside the main product. By bundling the makeup with
complementary products, Unilever can enhance the perceived value
and offer customers a cost-effective option to purchase a variety of
items at a bundled price.
The pricing strategy for "Makeup for All Skin Tones" encompasses a combination of market-oriented
pricing, premium pricing, and potential product bundle pricing. This multi-faceted approach enables
Unilever to cater to different customer segments and maximize the perceived value of the product. The
market-oriented pricing strategy ensures that the prices remain competitive in the cosmetics market,
considering factors such as customer demand and competitor pricing. The premium pricing strategy
positions the product as a high-quality offering, justifying slightly higher prices to reflect its unique
features and benefits. Additionally, the product bundle pricing strategy provides customers with the
opportunity to enjoy cost savings and a more comprehensive beauty experience by purchasing bundled
sets. By utilizing these pricing strategies, Unilever aims to effectively capture the target market's
attention, convey value, and generate profitability for the "Makeup for All Skin Tones" product. (Decker,
2022) (CAMPBELL, 2020)
3.3 Identify the distribution strategy followed by the organization to distribute
the product.

Figure 2 distribution strategy
A distribution strategy is a well-thought-out way to provide products and services to consumers with the
aim of maximizing profits and retaining customers. Your ideal consumer should serve as the foundation
of your distribution strategy; specifically, how does the typical customer purchase goods? What could
you as a producer do to simplify the buying process?
When choosing a strategy, it's crucial to take into account the role that a product will play in a client's life
and the type of purchasing decision associated with a product. Even more than one distribution channel
is used by certain businesses to address diverse customer bases. For instance, you might directly sell
things via catalog if your target market is people 60 and older. You might indirectly market to a younger
clientele through an internet merchant.
Distribution Strategy for "Makeup for All Skin Tones"
Distribution Strategy Description
Retailers Unilever primarily utilizes retailers as the main channel for distributing "Makeup
for All Skin Tones." The company partners with various retailers, such as Walmart,
to make the product available to a wide range of customers. Retailers act as the
primary point of sale, allowing customers to conveniently purchase the product
in physical stores or through online platforms. Retailers play a crucial role in
ensuring widespread availability and visibility of the product in the market.
Kiosks Unilever occasionally employs the use of kiosks to introduce "Makeup for All Skin
Tones" directly to customers. These kiosks serve as temporary or mobile outlets,
strategically positioned in high-traffic areas such as shopping malls or events. By

utilizing kiosks, Unilever can create a unique and interactive shopping experience,
allowing customers to directly engage with the product and receive personalized
recommendations. Kiosks also enable the company to conduct promotions and
offer limited selections of the product to generate interest and trial.
Stores Unilever also distributes "Makeup for All Skin Tones" through its subsidiary
stores, such as Ben & Jerry's. These stores provide a dedicated space for
showcasing and selling the product. By leveraging its existing store network,
Unilever can capitalize on brand recognition and customer loyalty to promote
and sell the product effectively. The stores offer a curated environment that
aligns with the brand's image and provides a unique shopping experience for
customers.
Online Platforms In addition to physical distribution channels, Unilever leverages online platforms
to distribute "Makeup for All Skin Tones." The company engages in e-commerce
partnerships with various online retailers, allowing customers to conveniently
purchase the product through digital channels. Online platforms provide a
seamless and accessible shopping experience, catering to customers' preferences
for online shopping and reaching a wider audience beyond traditional retail
locations. Unilever's strong online presence ensures that "Makeup for All Skin
Tones" is easily accessible to customers, enhancing convenience and expanding
the reach of the product.
The distribution strategy for "Makeup for All Skin Tones" encompasses a combination of retail channels,
kiosks, subsidiary stores, and online platforms. Unilever adopts a multi-channel approach to ensure
widespread availability and accessibility of the product to its target market. By utilizing retailers as the
primary distribution channel, Unilever taps into established networks and partnerships to reach a wide
range of customers. This allows customers to conveniently purchase the product from their preferred
retailers, both in physical stores and through online platforms.
In addition to retailers, Unilever utilizes kiosks strategically placed in high-traffic areas. These kiosks
provide a unique and interactive shopping experience, allowing customers to directly engage with the
product and receive personalized recommendations. By creating a temporary or mobile presence,
Unilever can generate interest and trial for "Makeup for All Skin Tones" in a targeted manner.

Unilever's subsidiary stores, such as Ben & Jerry's, serve as dedicated outlets for showcasing and selling
the product. These stores provide a curated environment that aligns with the brand's image and offers
customers a unique shopping experience.
Furthermore, Unilever leverages online platforms to distribute "Makeup for All Skin Tones." By
partnering with various e-commerce retailers, the product becomes easily accessible to customers
through digital channels. Online platforms cater to customers' preferences for convenient and hassle-
free shopping, reaching a wider audience and expanding the product's market reach.
Through this diverse distribution strategy, Unilever ensures that "Makeup for All Skin Tones" is widely
available, visible, and easily accessible to its target market, allowing customers to purchase the product
through their preferred channels. (Team I. E., 2022) (KENTON, 2023)
3.4 Identify the promotional tools used for promoting the new product to
customers by giving reasons.
Figure 3 promotional tools
The promotional tools used by Unilever to promote "Makeup for All Skin Tones" to customers include:
1. Advertising: Advertising serves as the primary promotional tool for Unilever's new product. The
company utilizes various advertising channels, such as television and online media, to create
awareness and generate interest in "Makeup for All Skin Tones." Through captivating visuals,

compelling messages, and demonstrations of the product's benefits, advertising helps Unilever
reach a wide audience and influence consumer perception about the product. Advertising allows
Unilever to communicate the unique features, shades, and benefits of the product, building
brand awareness and driving customer engagement.
2. Sales Promotion: Unilever employs sales promotion tactics to incentivize customers and drive
purchase behavior. For "Makeup for All Skin Tones," the company may offer special promotions
such as discounts, limited-time offers, or product bundles. These sales promotions attract
customers by providing them with added value or cost savings, encouraging them to try the
product or make repeat purchases. Sales promotions can create a sense of urgency and
excitement, prompting customers to take immediate action and enhance the product's
perceived value.
3. Public Relations: Unilever utilizes public relations to enhance its corporate image and strengthen
the brand's reputation. Through activities conducted by the Unilever Foundation, the company
showcases its commitment to social responsibility, sustainability, and diversity. By aligning the
brand with positive social causes, Unilever creates a favorable perception among customers and
differentiates "Makeup for All Skin Tones" as a socially conscious choice. Public relations
initiatives, such as partnerships with influencers or celebrities, can also generate buzz and
increase brand visibility.
4. Personal Selling: Unilever occasionally employs personal selling in collaboration with retailers,
particularly when operating kiosks or participating in promotional events. Through personal
selling, trained sales representatives engage with customers directly, providing product
demonstrations, offering recommendations, and addressing customer inquiries. Personal selling
allows Unilever to establish a personal connection with customers, build trust, and provide a
tailored experience. This direct interaction helps to educate customers about the unique
features and benefits of "Makeup for All Skin Tones" and can influence their purchase decisions.
5. Direct Marketing: While less significant compared to other promotional tools, Unilever may also
utilize direct marketing strategies to promote "Makeup for All Skin Tones." Direct marketing
involves targeted communication through channels such as email marketing, direct mail, or SMS
campaigns. Unilever may leverage customer databases to send personalized messages, product
updates, or exclusive offers directly to interested customers. Direct marketing allows for precise

targeting, personalized messaging, and a direct call-to-action, increasing the likelihood of
customer engagement and conversions.
Reasons for using these promotional tools:
 Advertising is crucial to create awareness, reach a broad audience, and communicate the unique
features and benefits of "Makeup for All Skin Tones" effectively.
 Sales promotion helps to incentivize customers, drive immediate purchases, and generate
excitement for the product.
 Public relations activities enhance the brand's image, reinforce positive associations, and
position "Makeup for All Skin Tones" as a socially responsible choice.
 Personal selling enables direct interaction with customers, allowing for product demonstrations,
tailored recommendations, and building personal connections.
 Direct marketing facilitates targeted communication, personalized messaging, and direct calls-to-
action, increasing customer engagement and response rates. (Guide)
Executive Summary
In the given scenario, Unilever introduces a new product called "Makeup for All Skin Tones" in the Sri
Lankan cosmetic market. The company utilizes a comprehensive marketing mix to promote and position
the product effectively.
Starting with market analysis, the Sri Lankan cosmetics market experienced a decline in 2021, but
Unilever aims to capture market share by addressing the diverse needs of consumers. Unilever's
marketing mix consists of product, place, promotion, and price elements. The product mix of Unilever is
highly diversified, offering a wide range of consumer goods across various categories such as foods,
refreshments, home care, and personal care.
In terms of distribution, Unilever relies on retailers as the primary channel for distributing its products.
The company also utilizes kiosks and stores to introduce products directly to customers. When it comes

to promotion, Unilever heavily relies on advertising as the primary tool to promote its products, followed
by sales promotions, public relations, personal selling, and direct marketing. Advertising helps in building
awareness and influencing consumer perception about Unilever's consumer goods.
Regarding pricing, Unilever adopts a market-oriented pricing strategy, determining price points based on
competitors' pricing and market factors. The company also employs a premium pricing strategy for
certain products that reflect their premium quality. Additionally, Unilever offers product bundles at
discounted prices to attract customers and increase sales.
In summary, Unilever's marketing mix for "Makeup for All Skin Tones" involves a diversified product
range, distribution through retailers and other channels, advertising as the primary promotional tool,
and pricing strategies based on market factors and product quality. These marketing strategies aim to
capture the attention of the target market, create brand awareness, and drive customer engagement
and sales.
Conclusion
In conclusion, Unilever's introduction of the new product "Makeup for All Skin Tones" in the Sri Lankan
cosmetic market is supported by a well-thought-out marketing strategy. The company takes into account
the market dynamics, consumer preferences, and competitive landscape to effectively position and
promotes the product.
Through the analysis of Unilever's marketing mix, it is evident that the company understands the
importance of product differentiation, extensive distribution, impactful promotion, and strategic pricing.
By offering a diverse range of products under various categories, Unilever caters to the diverse needs of
consumers. The distribution strategy focuses on leveraging retailers, kiosks, and stores to ensure wide
availability and accessibility of the product.
Unilever's promotional tools, with a primary emphasis on advertising, create brand awareness and
influence consumer perception. The pricing strategy considers market factors and product quality,
utilizing market-oriented pricing and premium pricing strategies. This allows Unilever to effectively
position the product and cater to different consumer segments.

Overall, Unilever's marketing mix for "Makeup for All Skin Tones" reflects the company's commitment to
understanding the market, meeting consumer demands, and implementing effective marketing
strategies. By leveraging its strong brand portfolio, extensive distribution network, and promotional
efforts, Unilever aims to capture market share and achieve success in the Sri Lankan cosmetic market.
Bibliography
CAMPBELL, P. (2020). market-based-pricing. Retrieved from www.profitwell.com:
https://www.profitwell.com/recur/all/market-based-pricing

CHAKRABORTY, T. (n.d.). Marketing Management - Kotler. Retrieved from www.academia.edu:
https://www.academia.edu/43169301/Marketing_Management_Kotler
Decker, A. (2022). pricing-strategy. Retrieved from blog.hubspot.com:
https://blog.hubspot.com/sales/pricing-strategy
Guide, M. S. (n.d.). Tools of Promotion - Advertising, Sales Promotion, Public Relation & Direct Marketing.
Retrieved from www.managementstudyguide.com:
https://www.managementstudyguide.com/tools-of-promotion.htm
KENTON, W. (2023). What Is a Kiosk? Definition in Retail, History, Types, and Risks. Retrieved from
www.investopedia.com: https://www.investopedia.com/terms/k/kiosk.asp
N, A. (2015). INDUSTRY AND MARKET SEGMENTATION FOR CREATING COMPETITIVE ADVANTAGE.
Retrieved from anstrategy.com: https://anstrategy.com/insights/industry-and-market-
segmentation-for-creating-competitive-advantage.html
Sandhya.M. (n.d.). Product Positioning. Retrieved from www.economicsdiscussion.net:
https://www.economicsdiscussion.net/market-segmentation/product-positioning/32446
Team, I. E. (2022). distribution-strategy. Retrieved from www.indeed.com:
https://www.indeed.com/career-advice/career-development/distribution-strategy
Team, I. E. (2023). career-development/differentiated-marketing. Retrieved from www.indeed.com:
https://www.indeed.com/career-advice/career-development/differentiated-marketing
Tow, H. (2023). market-segmentation. Retrieved from learn.g2.com: https://learn.g2.com/market-
segmentation