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PROJECT REPORT OF BRAND MANAGEMENT

SUBMITTED TO: SIR EJAZ AHMED
PREPARED BY: AREEJ BUTT

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Table of Contents
Acknowledgement ……………………………………………………………………………………………………………….……..4

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History of
business……………………………………………………………………………………………………………….……...5

Product………………………………………………………………………………………………………………………………….…....6

Price ………………………………………………………………………………………………………………………………….…………6

Review………………………………………………………………………………………………………………………….……….….….6

Direct competitors ……………………………………………………………………………………………………………….……..7

Indirect competitors …………………………………………………………………………………………………………….………7

Introduction of founder……………………………………………………………………………………………………….……….7

According to Forbes magazine……………………………………………………………………………………………...………8

Selected product……………………………………………………………………………………………………………….…..……..8

Features of life liner…………………………………………………………………………………………………………….…..……9

Price of life liner…………………………………………………………………………………………………………………………..10

Need of market…………………………………………………………………………………………………………….……………..10

GAP analysis…………………………………………………………………………………………………………………………..……11

BCG matrix…………………………………………………………………………………………………………………….……….....12

GE Matrix…………………………………………………………………………………………………….…………………..…...13-14

Porter’s five forces…………………………………………………………………………………………………………….…..15-17

PEST analysis…………………………………………………………………………………………………………..…….…….18-20

BAV…………………………………………………………………………………………………………..…….……..………………20-22

Conclusion …………………………………………………………………………………………………………………..…………..23

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Acknowledgment
I  would like to express my special thanks of gratitude to my teacher sir Ejaz Ahmed who gave

me the golden opportunity to do this wonderful project on the subject of Brand

Management, which also helped me in doing a lot of Research and I came to know about so
many new things I am really thankful to him.
Secondly I would also like to thank my parents and friends who helped me a lot in finalizing this
project within the limited time frame.

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History of Business

Huda Beauty is a cosmetics line launched in 2013 by Iraqi-American businesswoman and

makeup artist, Huda Kattan The founder, Kattan, was chosen as one of "The 25 Most Influential
People on the Internet" by Time in 2017, listed as one of The Richest Self-Made Women and one
of the Top Three Beauty Influencers by Forbes. In the span of 5 years, the brand has built a
positive reputation on some of its products, such as fake eyelashes series, a collection of
foundation, and some face palettes.

In April 2010, Huda Kattan started the beauty-related blog, Huda Beauty, and

a YouTube channel. She later found success on other platforms. Kattan launched a cosmetic line
named after her channel in 2013.It has since become one of the world's fastest-growing beauty
brands.

As of 2018, Huda Beauty has more than 2 million subscribers on YouTube and is the number
one account on the Instagram Beauty section in the world, with over 40 million followers. The
contents of Kattan's channels are beauty tutorial-oriented. Kattan shares makeup techniques,
skincare routines and personal preferred beauty products from multiple brands. 

The first Huda Beauty product was a collection of false eyelashes released through Sephora, in
Dubai in 2011 and the United States in 2015.The Kardashian sisters were reported to use Huda
Beauty lashes, providing an early publicity boost to the label. As of 2018, Huda Beauty has an
estimated net value of US$550 million and the company as a business is valued at over a billion
dollars, according to Forbes.

In December 2017, the company received a minority investment from TSG Consumer Partners, a
private equity firm which had previously invested in beauty brands such as 'Smash box' and 'Its
Cosmetics’.

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Products

Huda Beauty offers more than 140 products online or in-store. The beauty brand has launched an
entire range of products, which include lipstick collections, face palettes like highlighter and
contour, false nails, false lashes, and a collaborative product with Tweezerman. Its Samantha
Lashes #7, since launch, has been ranked as one of bestselling and highly reviewed lash
products.In 2018, all launched products that together bring in at least $200 million in annual
revenue. Time described this “an internet based beauty brand age”, as internet-to-business beauty
products have taken over a large percentage from the traditional beauty market. They own a
significantly growing share of the whole market.

Price

The price of Huda Beauty's products has been widely seen as reasonable compared to similar
products that sharing similar markets. Though, among blog-to-brand beauty brands, which
created by You Tubers or Instagram bloggers the price of Huda Beauty's products are relatively
high. Bloggers mostly launch beauty products what they set a price a bit lower than the ordinary
market price, as their brand names and quality usually have not been tested through time.

However, Huda Beauty's foundation sells at 65 Australian dollar in Australian Sephora stores,
while Fenty beauty by Rihanna offers a similar market-targeted foundation by 50 dollar. Also,
the first-line beauty company, Estee Lauder, sells its well-reviewed foundation “Double Wear”
under 60 dollar at department store, like Westfield and David Jones in Australia.

However, Huda Beauty's most well-known product: fake lashes “#7 Samantha” still achieve
success in sale, although its price is 35 dollar in Australia. While SHU UEMURA, currently the
first name in eye-related beauty section offers fake lashes around 25 Australian dollars in
department stores.

Review

The most welcomed products of the brand, according to its sale volume and net income is its
fake lashes, which labeled as “#7”, and a collection of foundations. The foundation has widely
commented as sufficient choice for a wide range of different skin tones.
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In the meanwhile, the eye shadow palette and fake eyelashes are the mostly
positively reviewed products. While the face palettes and liquid lipstick or other products have
seen a draw in the market share.

Direct Competitors

 NYX

 Maybelline

 MAC

 L’Oreal

 Dior

 Revlon

Indirect competitors

 Rivaj uk

 Miss rose

 Kryalon

 Christine

Introduction of Founder

 Miserable in her finance job, Kattan quit to become a makeup artist and then launched a
blog in 2010.

 Kattan started Huda Beauty with her two sisters in 2013 when she couldn't find false
eyelashes to buy.

 Today, Huda Beauty sells more than 140 products from eyeshadow pallets to lip gloss,
which bring in at least $250 million in annual sales.

 Private equity firm TSG Consumer Partners acquired a small minority stake at the end of
2017 in a deal that valued the company at $1.2 billion.

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 An influencer who claims to having never spent money on advertising, Kattan now has
about 37 million Instagram followers.

According to Forbes magazine

2019 AMERICA'S SELF-MADE WOMEN

NET WORTH

#36

$610M

Selected Product

Huda beauty had lunched more than 30

products in 2019 most of them are eyes
shadow plates, lip contours and bullet
lipsticks.

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New product ever by Huda beauty is there eye liner with the name of life

liner.

Features of life liner

The ultimate life proof, dual-ended eyeliner with a

liquid tip one side and pencil on the other. Long-
lasting, waterproof, smudge proof and fade proof.

Finally, a liner that you can trust to stay put, while

remaining super matte and super black.

• Up to 48 hour wear*

• Dual-ended

• Intense black

• Smudge proof

*based on liquid liner

Liquid liner:

1. Open the liquid side of the liner and wipe off any excess formula from the brush

2. Start from the outer corner of your eye begin to create your wing, working inwards towards
the center of your lid

3. Complete the line starting from the inner corner of your eye, connecting the two lines at the
center of the lid filling in any negative space

4. Allow to dry for approximately 60 seconds, depending on how thick your line is. The thicker
your liner is, the longer it will take to dry

Pencil liner:

1. Complete your look or apply along your lash and/or waterline for extra drama

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2. We gave it some playtime so you can experiment with your look before the
formula sets

How to remove Life Liner Using Huda Beauty Makeup Remover Balm:

1. Apply a dime-sized amount to eyelids and gently massage to dissolve our Life Liner formula

2. Rinse with warm water and wipe away any excess formula

Tip: You can also remove with a waterproof or strong performing oil-based eye makeup
remover. Soaking a cotton pad in makeup remover, apply on the eyes massaging gently to break
up the formula.

Price of life liner

At Huda beauty online: $22.00

At Sephora: $25.00

Need of the market

By the period of cosmetic industry is increasing market share worldwide and people are getting
more aware about goods and bads of products.

Huda beauty found an existing gap in market about eye liner and did a survey on their social
media accounts which are facebook, Instagram and YouTube in which team Huda Beauty ask
what type of liner you want in your life and with that Huda Kattan also added that she hardly
find eye liner according to her wish and a good amount of black color in liner is necessary and
she also said that liners of good quality are produced by luxurious cosmetic brands which most
of people cannot afford.

In Huda beauty’s survey people express there need about liner they want some of are:

1. It should be long lasting

2. Rich black

3. Smudge proof

4. And it should be Matte in texture

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GAP Analysis

A gap analysis is a method of assessing the differences in performance between a business'

information systems or software applications to determine whether business requirements are
being met and, if not, what steps should be taken to ensure they are met successfully.

Current
performance of life
liner by Huda Beauty

M
a
r
k
e
t

S Current performance of
h competitor’s e.g NYX,
a L’Oreal, Maybelline, Rivaj,
r miss rose.
e

Time 3 months

BCG Matrix

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BCG matrix is a framework created by Boston Consulting Group to evaluate

the strategic position of the business brand portfolio and it’s potential. It classifies business
portfolio into four categories based on industry attractiveness (growth rate of that industry) and
competitive position (relative market share).

Retrograde plate
Makeup remover
Life liner balm

Neon pallets

Baking powders

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GE Matrix
GE-McKinsey is a framework that evaluates business portfolio, provides further strategic
implications and helps to prioritize the investment needed for each business unit. This technique
is used in brand marketing and product management. The analysis helps companies decide what
products need to be added to a product portfolio as well as what other opportunities should
continue to receive investments. Though similar to the BCG matrix, the GE version is a lot more
complex. The analysis begins as a two-dimensional portfolio matrix but the dimensions are
multifactorial with nine industry attractiveness measures and twelve business strength measures

Business unit strength

Grow Grow Hold
 Life liner  Matte lips gloss

 Bullet lipsticks
 Lip contour

Grow Hold Harvest

 Obsession nude  Neon  Baking powders
pallets
 Highlighter pallet
 Retrograde plate

Hold Harvest Harvest

 Make remover  Eye shadows & lipsticks  Foundations &
balm  Eye lashes concealers
 Eye shadows &
lipsticks

High Medium Low

High

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Detail of GE Matrix

An assessment of Huda beauty according to this matrix reveals an interesting picture. Huda
beauty has a variety of business units each operating in different segment of same market.
Business units include foundations and concealers, bronzers, baking powders, lips contours,
obsession eye shadows, eyeliner and eye lashes. An analysis of the different units in light of the
GE McKinsey matrix can help assess what units the company is likely to invest in, life liner
selectively, or divest.

The market attractiveness access was determined easily by the researcher using information
about external factors such as current market size, market growth rate, barriers to entry and state
of technological development.

The business unit strength section is harder to determine because it used factors internal to the
company including customer loyalty, access to resources, strength of the management etc. this
information was gathered from secondary sources for the sake of this assessment.

The matrix shows that HUDA Beauty remains moderately or very strong in each of its units and
is competing in many attractive and fast growing sectors such as life liner and retrograde plate.
These units are unlikely to be divested and instead will be fed from the revenues of cash cows
such as foundations and lip-glosses. There are significant barriers to entry in these cosmetic
market with high investment required to gather the required expertise and experience, despite
HUDA Beauty dominance, the best areas to compete with HUDA Beauty remain the newer and
faster growing market of cosmetic .

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Porter’s five forces

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is
used. In this model, five forces have been identified which play an important part in shaping the
market and industry. These forces are used to measure competition intensity and profitability of

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an industry and market.

Explanation of porter's five forces according to life liner

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These forces refer to micro environment and the company ability to serve its
customers and make a profit. These five forces include three forces from horizontal competition
and two forces from vertical competition. The five forces are discussed below:


 THREAT OF NEW ENTRANTS:
 As the industry has high profits, many new entrants will try to enter into the market.
However, the new entrants will eventually cause decrease in overall industry profits.
Therefore, it is necessary to block the new entrants in the industry. following factors is
describing the level of threat to new entrants:
 Barriers to entry that includes copy rights and patents.
 High capital requirement
 Government restricted policies
 Switching cost
 Access to suppliers and distributions
 Customer loyalty to established brands.
 THREAT OF SUBSTITUTES:
 This describes the threat to company. If the goods and services are not up to the standard,
consumers can use substitutes and alternatives that do not need any extra effort and do
not make a major difference. For example, using Aqua water liner in substitution of life
liner, Maybelline charcoal liner in alternative of HUDA beauty life line. The potential
factors that made customer shift to substitutes are as follows:
 Low Price of substitute
 Easy Switching costs of buyer
 Products substitute available in the market
 Close substitution are available at low price
 DEGREE OF INDUSTRY RIVALRY:
 The lesser money and resources are required to enter into any industry, the higher there
will be new competitors and be an effective competitor. It will also weaken the

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company’s position. Following are the potential factors that will

influence the company’s competition:
 Competitive advantage on the bases of price
 Continuous innovation
 Sustainable position in competitive advantage
 Level of advertising influencing potential market by heavy advertisement

 BARGAINING POWER OF BUYERS:

 It deals with the ability of customers to take down the prices. It mainly consist the
importance of a customer and the level of cost if a customer will switch from one product
to another. The buyer power is high if there are too many alternatives available. And the
buyer power is low if there are lesser options of alternatives and switching. Following
factors will influence the buying power of customers:
 Bargaining leverage
 Switching cost of a buyer
 Buyer price sensitivity
 Competitive advantage of company’s product
 Price according to target market
 BARGAINING POWER OF SUPPLIERS:
 This refers to the supplier’s ability of increasing and decreasing prices. If there are few
alternatives of supplier available, this will threat the company and it would have to
purchase its raw material in supplier’s terms. However, if there are many suppliers
alternative, suppliers have low bargaining power and company does not have to face high
switching cost. The potential factors that effects bargaining power of suppliers are the
following:
 High quality of product used at HUDA beauty’s lab that is why barraging power of
supplier is low
 Strength of distribution centers (online store physical store of Huda and Sephora)
 Input substitute’s availability.

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PEST Analysis

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural,
Technological, Environmental and legal situations which can provide great and new

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opportunities to the company as well as these factors can also threat the
company, to be dangerous in future.

PEST Analysis of Life liner

Political:

 There might be changes in business polices when government change.

 Strength of property rights and law rules. And its ratio with corruption and organized
crimes. Changes in these situation and its effects.
 Change in Legislation and taxation effects on the company’s pricing policy
 Trend of regulations and deregulations. Effects of change in business regulations
 Timescale of legislative change.
 Other political factors likely to change for HUDA Beauty.

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Economical:

 Position and current economy trend i.e. growing, stagnant or declining.

 Exchange rates fluctuations and its relation with company.
 Change in Level of customer’s disposable income and its effect.
 Fluctuation in unemployment rate and its effect on hiring of skilled employees
 Access to credit and loans. And its effects on company
 Effect of globalization on economic environment
 Considerations on other economic factors
 International market fluctuation

Socio-cultural:

 Change in population growth rate and age factors, and its impacts on organization.
 Change in choice of brand.
 Change in choice of product.
 Effect on organization due to Change in attitudes and generational shifts.
 Standards of health, education and social mobility levels. Its changes and effects on
company.
 Employment patterns, job market trend and attitude towards work according to different
age groups.
 Social attitudes and social trends change in socio culture an ditz effects.
 Religious believers and life styles and its effects on organization
 Other socio culture factors and its impacts.

Technological:

 Any new technology that company is using

 Any new technology in market that could affect the work, organization or industry
 Access of competitors to the new technologies and its impact on their product
development/better services.

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 Research areas of government and education institutes in which the company can make
any efforts
 Changes in infra-structure and its effects on work flow
 Existing technology that can facilitate the company
 Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make “big
picture” of company’s characteristics. This will help the manager to take the decision and
drawing conclusion about the forces that would create a big impact on company and its
resources.

Brand asset valuator (BAV)

Brand Asset Valuator is a metric applied for the measurement of brand value of an entity. Brand
Asset Valuator was developed by an agency called “Young and Rubicam”. BAV measures a
brand under the 2 broad heads of

1. Brand Vitality which refers to the current and future growth potential that a brand holds in it.
Huda Beauty in very short period of time had gain popularity as one of the most popular
cosmetic brand in last 3 years. Reason of its rapid success is the way Huda beauty marketed their
all products, that hype created by team Huda and in their marketing they try to ensure their
potential customers that the products of Huda beauty are the best for them and they have
substitute in market.one of the main reason is Huda beauty never compromise on the quality of
their product and as time is passing team creating more products and continuingly lunching new
products every year to gain more customer increase market share and ultimately wanted to be the
no.one cosmetic brand.

2. Brand Stature which refers to the power of a brand.

Whenever Huda beauty announces to lunch new product that create an excitement among
audience and now customers start believing in the brand name and prospects know there is

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something good and exciting coming all the way from Huda beauty. Same case happened with
life liner that immediately capture market and become most sold liner of the year.

Both of these heads can be further divided to have the following parameters for judging the
brand.

1.    Differentiation

It is the ability of a brand to stand apart from its competitors. Differentiation has three
constituents to it. These are Different-refers to how do the brand’s offering differs from its
rivals. Smudge proof
Unique- refers to the brand’s quality and carries the essence of its existence. It has more to do
with the credibility, authenticity and originality of the idea that the brand carries. Dual sided
Distinctive-refers to the worthiness of a brand. Popular brand name

Life liner create differentiation on the bases of quality, dual sided, reasonable pricing

2.    Relevance

This refers to how closely can the consumers relate to the brand’s offering and is a significant
driver for a brand’s penetration. Huda beauty is dealing in cosmetic industry and continually
lunching new products in the same market.

3.    Esteem

This refers to the consumer perception about the brand. Whether a brand is popular or not,
whether it delivers on its stated promises- all this contribute in building up the esteem of the
brand. This is the era of digital marketing, before the lunching of life liner Huda beauty sent PR
packages to most famous beauty bloggers and celebrities from beauty industry to review and rate
life liner to their audience and all off them review it positively

4.    Knowledge

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This refers to the degree of awareness about a brand in the minds of its
consumers. This is very important in building a brand and making the consumers understand of
what the brand actually stands for and its implicit message to the consumers. Team Huda beauty
always successfully deliver the message about the product.

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Conclusion

At the end I would like to add my words as a user of Huda’s product they are extremely good in
terms of usage and also did not damage skin no matter what type of skin you have.

After every lunch team of Huda beauty create social media hype about product and just before
lunch she Huda Kattan start using pre lunched product in her makeup tutorials.

Life liner is one of the most successful products of Huda beauty

As a new product life liner helps to create new customers and also financially helped to increase
profitability.

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