INTERNATIONAL SCHOOL OF MANAGEMENT AND

RESEARCH

A PROJECT REPORT ON A PRODUCT RESEARCH

AND MARKETING STRATEGY

A Winter Training Project Report

Submitted in Partial Fulfilment of the Requirements for the
Award of degree of Masters in Business Administration
2018-2020

Submitted by: - Guided by: -

Somojita Das Dr. Shivanand Sanmath
 AKNOWLEDGEMENT

I would like to express my special thank of gratitude towards my Professor Dr.

Shivanand Sanmath for his able guidance and support in completing my project.
I am also thankful that I got such golden opportunity to do this project where I
researched a lot and got to know a few of many things.
 CONTENTS

1. Introduction

2. Herbal Lipsticks

3. Manufacturing Process

4. Marketing Strategies and Plan

5. Conclusion
 INTRODUCTION

The product I am choosing is a ‘Lipstick’. If we take a look at our modern

makeup, it is interesting to note that though the products and techniques
have gone through stages of enormous advancement, the fundamentals of
makeup still remain the same. Humans have been using makeup to
highlight their features for various purposes for as long as one can
remember. This is particularly true in the case of lipsticks. From berries
to today’s mind-numbing variety, the metamorphosis of lipsticks over
time is an interesting tale that needs to be told.

Some of the quotes for a lipstick are:

“If you’re sad, add more lipstick and attack.” – Coco Chanel

“Pour yourself a drink, put on some lipstick, and pull yourself together.” –
Elizabeth Taylor

“Beauty, to me, is about being comfortable in your own skin. That, or a

kick-ass red lipstick.” – Gwyneth Paltrow

The name for my Lipstick is “Calli: essence of true Beauty.”

Now, the variety of colours and formulas of lipsticks available are mind-
blowing, to say the least. But the lipstick I will be offering will be ‘Herbal
Lipsticks’. These lipsticks will be not harmful for your lips and will retain the
natural colour of your lips. From nudes to pink to even options like yellow or
green, lipstick has truly become a symbol of self-expression. Though lipstick
has come a long way from grounded stones and dead insects to super advanced
formulas that we have today, there is one thing that remains constant, that is, the
ability of a lipstick to colour us happy.
 HERBAL LIPSTICKS

Herbal Cosmetics are in rising demand in the world market as these are the
priceless gift of nature with enhanced activity and lesser or no side effects. The
concept of beauty and use of natural cosmetics is as primordial as mankind and
civilization. Herbal cosmetics as the name suggests are natural and free from all
the destructive artificial chemicals. The present work was aimed to formulate
herbal lipstick by using various natural ingredients like concentrated juice of
pomegranate seeds (Punica granatum), shikakai, dried ginger powder, lemon
juice, coconut oil, bees wax, paraffin wax, strawberry essence, vanilla essence
and so on. The formulated herbal lipstick was evaluated and various parameters
such as colour, melting point, breaking point, force of application, surface
anomalies, pH, skin irritation test and aging stability were determined and
reported herewith.

Introduction:

The demand of herbal cosmetics is increasing steeply as they are skin friendly
with no side effects. Normally herbal cosmetics are also referred to as natural
cosmetics. (Saha 2006). Herbal cosmetics are formulated by preparing a natural
base first in which one or more natural ingredients are incorporated
properly. (Chattopadhyay 2005)
Herbal cosmetics are the most recent trend in the field of beauty and fashion.
These beauty products supply proper nutrients, enhance health and ensure user
satisfaction compared to the synthetic cosmetics. (Bennet & Bennet 1993)
Human skin acts as protective barrier, through which natural ingredients
penetrate. Therefore, consumers always search for natural-based cosmetics to
avoid allergic reactions and any sort of side effects. Lipstick is a lip coloring
agent that has its earliest use dating back to the prehistoric age. At present, the
popularity of this product has increased, and the choice of its different shades,
textures and luster has become very demanding. (Kaul and Dwivedi 2010 &
Kapoor 2005)
Material & Method:

Selection of herbs: The various herbs used in the formulation of herbal lipsticks
were selected on the basis of literature survey. (Ellison 1999 & Kokate et al 2007)
Collection of material: The different herbs used in the development of herbal
lipstick were collected in the months of Sep-Oct 2017 from the local market of
Indore.
Preparation of Colour Pigment: Coloring agent is obtained from seeds of
Punica granatum by pressing, filtration and evaporation of the resultant juice.
Formulation of herbal lipstick: The herbal lipstick was formulated as per
general method of lipstick formulation. In brief; all hard and soft waxes were
melted in porcelain dish on water bath with decreasing order of their melting
point. Concentrated Punica granatum juice was mixed with Coconut oil and
heated. Both phases were mixed at same temperature. Strawberry essence, lemon
juice, ginger powder, shikakai powder, vanilla essence and Vitamin E were added
at 40oC. Then mixture was poured into lipstick mould in excess amount and
mould was kept on ice bath. After solidification surplus amount was scrapped
with blade. Lipsticks were removed from mould and flamed. Prepared Lipsticks
were fitted in Lipstick container and used for further evaluation. (Jain and
Sharma 2005 & Sharma 2005) Composition and importance of different
ingredients used for preparation of herbal lipstick is shown in Table 1.

Characterization of herbal lipstick:

It is very essential to maintain a uniform standard for herbal lipstick, keeping this
view in mind the formulated herbal lipsticks was evaluated on the parameters
such as melting point, breaking point, force of application, surface anomalies etc.
Melting point: Determination of melting point is important as it is an indication
of the limit of safe storage. The melting point of formulated lipstick was
determined by capillary tube method.
Breaking point: Breaking point is done to determine the strength of lipstick. The
lipstick is held horizontally in a socket ½ inch away from the edge of support.
The weight is gradually increased by a specific value (10 gm) at specific interval
of 30 second and weight at which breaks is considered as the breaking point.
Force of application: It is test for comparative measurement of the force to be
applied for application. A piece of coarse brown paper can be kept on a shadow
graph balance and lipstick can be applied at 45o angle to cover a 1 sq. inch area
until fully covered. The pressure reading is an indication of force of application.
Surface anomalies: This is studied by the surface defects, such as no formation
of crystals on surfaces, no contamination by moulds, fungi etc.
Aging stability: The product was stored in 40o C and various parameters such as
bleeding, crystallization of wax on surface and ease of application were observed.
pH parameter: The pH of formulated herbal lipstick was determined using pH
meter.
MANUFACTURING PROCESS

Raw Materials
The primary ingredients found in lipstick are wax, oil, alcohol, and pigment.
The wax used usually involves some combination of three types—beeswax,
candelilla wax, or the more expensive camauba. Wax enables the mixture to be
formed into the easily recognized shape of the cosmetic. Oils such as mineral,
caster, lanolin, or vegetable are added to the wax. Fragrance and pigment are
also added, as are preservatives and antioxidants, which prevent lipstick from
becoming rancid. And while every lipstick contains these components, a wide
variety of other ingredients can also be included to make the substance
smoother or glossy or to moisten the lips.
In general, wax and oil make up about 60 percent of the lipstick (by weight),
with alcohol and pigment accounting for another 25 percent (by weight).
Fragrance is always added to lipstick, but accounts for one percent or less of the
mixture. In addition to using lipstick to colour the lips, there are also lip liners
and pencils. The manufacturing methods described here will just focus on
lipstick and lip balms.

The Manufacturing
Process
The manufacturing process is easiest to understand if it is viewed as three
separate steps: melting and mixing the lipstick; pouring the mixture into the
tube; and packaging the product for sale.

Melting and mixing

1 First, the raw ingredients for the lipstick are melted and mixed—separately
because of the different types of ingredients used. One mixture contains the
solvents, a second contains the oils, and a third contains the fats and waxy
materials.
After the pigment mass is ground and mixed, it is added to the hot wax mass
until a uniform colour and consistency is obtained. The fluid lipstick can then be
strained and moulded, or it may be poured into pans and stored for future
moulding.

If the fluid lipstick is to be used immediately, the melt is maintained at

temperature, with agitation, so that trapped air escapes. If the lipstick mass is
stored, before it is used it must be reheated, checked for colour consistency, and
adjusted to specifications, then maintained at the melt temperature (with
agitation) until it can be poured.

Moulding

 Once the lipstick mass is mixed and free of air, it is ready to be poured
into the tube. A variety of machine setups are used, depending on the
equipment that the manufacturer has, but high-volume batches are
generally run through a Melter that agitates the lipstick mass and
maintains it as a liquid. For smaller, manually run batches, the mass is
maintained at the desired mix temperature, with agitation, in a melter
controlled by an operator.
 The melted mass is dispensed into a mold, which consists of the bottom
portion of the metal or plastic tube and a shaping portion that fits snugly
with the tube. Lipstick is poured "up-side down" so that the bottom of the
tube is at the top of the mold. Any excess is scraped from the mold.
 The lipstick is cooled (automated molds are kept cold; manually produced
molds are transferred to a refrigeration unit) and separated from the mold,
and the bottom of the tube is sealed. The lipstick then passes through a
flaming cabinet (or is flamed by hand) to seal pinholes and improve the
finish. The lipstick is visually inspected for air holes, mold separation
lines, or blemishes, and is reworked if necessary.
 For obvious reasons, rework of the lipstick must be limited,
demonstrating the importance of the early steps in removing air from the
lipstick mass. Lipstick is reworked by hand with a spatula. This can be
done in-line, or the tube can be removed from the manufacturing process
and reworked.

Labelling and packaging

 After the lipstick is retracted and the tube is capped, the lipstick is ready
for labelling and packaging. Labels identify the batch and are applied as
part of the automated operation. While there is a great deal of emphasis
on quality and appearance of the finished lipstick product, less emphasis
 is placed on the appearance of lip balms. Lip balms are always produced
in an automated process (except for experimental or test batches). The
heated liquid is poured into the tube in the retracted position; the tube is
then capped by machine—a far less laborious process.
 The final step in the manufacturing process is the packaging of the
lipstick tube. There are a variety of packaging options available, ranging
from bulk packs to individual packs, and including packaging as a
component in a makeup kit or special promotional offering. Lip balms are
packaged in bulk, generally with minimum protection to prevent shipping
damage. Packaging for lipsticks varies, depending on what will happen at
the point of sale in the retail outlet. Packaging may or may not be highly
automated, and the package used depends on the end use of the product
rather than on the manufacturing process.

By-products
There is little or no waste in the manufacture of lipstick. Product is reused
whenever possible, and since the ingredients are expensive, they are seldom
thrown out, unless no other alternative presents itself. In the normal
manufacturing process there are no by-products, and waste portions of lipstick
will be thrown out with the disposal of cleaning materials.

Quality Control
Quality control procedures are strict, since the product must meet Food and
Drug Administration (FDA) standards. Lipstick is the only cosmetic ingested,
and because of this strict controls on ingredients, as well as the manufacturing
processes, are imposed. Lipstick is mixed and processed in a controlled
environment so it will be free of contamination. Incoming material is tested to
ensure that it meets required specifications. Samples of every batch produced
are saved and stored at room temperature for the life of the product (and often
beyond that) to maintain a control on the batch.

The Future
Lipstick is the least expensive and most popular cosmetic in the world today. In
1986 lipstick sales in the United States were more than $720,000,000. There are
no accurate figures for current sales of lip balm, since the market is expanding.
Manufacturers continue to introduce new types and shades of lipstick, and there
is a tremendous variety of product available at moderate cost. As long as
cosmetics remain in fashion (and there is no indication that they will not) the
market for lipstick will continue to be strong, adding markets in other countries
as well as diversifying currently identified markets.
 MARKETING STRATEGIES

TACTICS SITUATIONAL
ANALYSIS

STRATEGY PROBLEM

OBJECTIVES

VISION
Making women
empowered yet
elegant.

MISSION
Improving
confidence, self-
independency &
morale of women.
SWOT Analysis
Strengths: Competitive Pricing Strategy, Distribution Channel.
Weaknesses: Aggressive promotion, High Service costs.
Opportunities: Future Diversification, capture new markets, Develop Brand
Image.
Threat: Competition from famous brands, Low profit margins.

CALLI COLOURS
Pink
Soft Coral
Plum Rose
Guava
Sweet Nectar
Heather Pink
Cosmic Raspberry
Old Hollywood
Crimson

ATL (ABOVE THE LINE)

Print: Newspapers, Advertisements
Out of Home: Flyers/ Hoardings in Metropolitan cities
Radio: Advertisements
Television: Advertisements on Fashion Channels, Feminine TV Shows, etc.
BTL (BELOW THE LINE)
Endorsements
PoP: Posters, etc in existing cosmetic shops.
SALES PROMOTION
Trade Promotions: Offering credit to existing retailers & high margins.
Consumer Promotions: Providing discount and BOGO offers.

BRAND READINESS STAGE

THINK FEEL DO
 CONCLUSION

Buying the right lipstick can be very hard. Especially when you want the best
you can get. We can do a “On the Spot” project. The objective of the “On the
Spot” test to figure out which lipstick stays on the most while drinking or
eating. How this test worked started by applying lipstick normally around your
lips, like any woman would do. The next step was to drink water from a plastic
cup three times for each lipstick. Even though lipstick B smudged a little, it
barely left colour behind, most of stayed on my mouth. Lipstick A didn’t let a
lot behind, but was the one with the least colour. Lipstick C left a lot of colour
on the cup and not much in your lips. After this test, it was clear that lipstick B
was the best choice of lipstick in this category, leaving the most colour in your
lips. And this B category lipstick was “Calli: essence of true Beauty” the
lipstick assures lasting colour with this choice of lipstick.