We are not trying to be a trend-setter, with different colors we just sell a good product.''Īt the upper end of the price scale, however, company officials said that their products were indeed better. ''Because we do not advertise, our costs are much lower. ''The only difference is the price of the cap, the price of the marketing.'' he said. Berger of Hazel Bishop argues that there is no difference between his lipstick, which sells for 89 cents, and the higherpriced brands.
''That fallacy is fading.'' Reasons for Price Differences ''Before, most women thought that the more expensive a product is, the better the results,'' Miss Hill said. The relationship between price and quality has long been debated among consumers and industry experts alike. The lack of advertising and the plain packaging make the lower prices possible. Winarick and Art-Matic, which offer nail polish, lipstick and eye makeup at prices well below other companies. ''It is essential to our growth.''Īnother segment of the industry, one that produces even less expensive cosmetics than the mass merchandisers, consists of no-frill companies such as Hazel Bishop Industries, A.R. ''We have to keep introducing new products,'' he said. These products have proved successful, according to David Britain, president of Maybelline. More recently, it introduced a mascara called Dial-a-Lash, with an adjustable dial that controls the amount of liquid on the tube. Last year, Maybelline entered this sector with a product called Moisture Whip, a facial moisturizer.
#Artmatic make up skin
Over the past few years, most cosmetic companies have gone into skin care products, with an emphasis on good health.
Surprising the customer with bright new products is another must for the mass merchandisers. ''Retailers tend to favor brands that are heavily advertised by the manufacturer,'' Miss Landry said. High visibility is not only for the consumer it also helps to sell the products to the retailer. Maybelline spent an estimated $25 million, or close to 25 percent of sales, according to analysts. Cover Girl spent well over $20 million in 1980 in advertising, 20 percent of its sales. Last year, Cover Girl was one of the 100 largest advertisers in the United States and one of the smallest companies within the group. This easily recognizable ''look'' has made Cover Girl one of the best-known cosmetics lines in the country. ''That clean, fresh, Cover Girl look'' has blared out of dozens of full-page ads in women's magazines and television commercials over the years. According to Miss Hill, customers have become more intent upon getting their money's worth: ''With the consumer pinched by inflation, these less expensive brands offer excellent price values to the consumers,'' she said. In today's price-conscious market, lower prices are luring customers away from the higher-priced cosmetics to the budget brands. Revlon Inc., one of the largest sellers of cosmetics in the United States, sells a less expensive brand in supermarkets and drugstores and also markets premium-priced lines such as Ultima and Borghese in department stores as part of a long-term strategy to sell to all segments of the market. The mass merchandisers use self-service displays in supermarkets, drugstores and variety chain stores, while franchised brands like Estee Lauder and Charles of the Ritz are sold in department stores, with makeup displays manned by trained sales personnel who demonstrate the wares to prospective buyers. The main differences between the mass merchandisers and the more expensive products, aside from prices, are the sales locations and the variations in shades and colors within the product line.
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