CONTRIBUTION RESEARCH

ETHNIC MARKETING ESSENTIAL SOURCE OF DEVELOPMENT IN THE FIELD OF BEAUTY IN MASS CONSUMPTION MARKETS IN FRANCE

Student : Sarah KIRKOS – Tutor : Sylvie KAMINKA ESC Toulouse MS M2C April, the 14th 2012

Table of contents Summary .............................................................................................................................. 3 Introduction ......................................................................................................................... 4 What is Ethnic Marketing? .................................................................................................. 5 History ..................................................................................................................................... 5 Theory and concept ............................................................................................................ 6 What is ethnicity? .......................................................................................................................... 6 Ethnic Marketing............................................................................................................................ 6 Ethnic Marketing strategies .......................................................................................................... 7

Situation of Ethnic Marketing in France ............................................................................ 8 Ethnic Marketing and its application to the mass consumption beauty products ...... 10 The importance of marketing in a multicultural world.................................................. 10 Demographic numbers ..................................................................................................... 10 In France ....................................................................................................................................... 10 Worldwide .................................................................................................................................... 11

Ethnic marketing and cosmetics companies today ..................................................... 12 The interests for companies ....................................................................................................... 12 Ethnic marketing: a key success factor for cosmetics companies ....................................... 12 L’Oréal: A success story .............................................................................................................. 13 Why others should follow this tendency? ................................................................................. 14

Conclusion ......................................................................................................................... 16 How to target these new markets in France? ................................................................ 17 Develop specific products according to the skin/hair types ................................................ 17 A price that must take into account the purchasing power parity ...................................... 17 Distribution in the right quantity at the right place ................................................................. 18 A personalized communication ................................................................................................ 18

Appendices ....................................................................................................................... 19

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Key words

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Summary It seems that ethnic marketing was born in America in 1900, created by Mrs. C. J. Walker, an African American beautician. C. J. Walker then had the brilliant idea to launch a heated comb able to straighten kinky hair safely. Using a very effective marketing mix (product, price, place and promotion), her product has been very successful with young African American women Nowadays, ethnic Marketing, also called Multicultural Marketing or Ethno-Marketing, is increasingly present in our consumer society. New markets tend to emerge, targeting different groups. But even if ethnic marketing seems to be an unavoidable evolution worldwide, the situation in France is not as simple as that. Indeed, there are in France obstacles to the development of an “ethnic marketing “made in France”. While unavoidable in the Anglo-Saxon model, ethnic marketing is still not widely spread in France. We can see that ethnic marketing is more and more attracting Western countries. However, French manufacturers are still mostly wary of the method which consists of a market segmentation based on ethnicity and community. But it is estimated that 12 to 14 million people in France (20% of the French population) have nonCaucasian origins, even if official results are forbidden in France. This denial of ethnic statistics is symptomatic of the discomfort that causes ethno-marketing within the French society. Even if manners are starting to evolve, these changes in attitude will not happen overnight. From these results, it is unbelievable that companies (in our case, cosmetic companies), would not target these populations and therefore would be giving up one quarter of their potential customers. It is not only a French finding: at a global level, minority ethnicities are growing as well. Regarding these developments, some believe that the standard marketing approaches that ignore cultural differences within the same national economy are unlikely to effectively reach ethnic groups with a strong sense of identity. It is a huge opportunity for these companies because they are targeting a community which was not part of their clients before. Therefore, this represents a huge source of revenues for these businesses. L’Oréal has very well understood these worldwide changes. Since they ignored the characteristics of ethnic-products, L’Oréal bought the US firm Soft Sheen-Carson to acquire their know-how. Procter & Gamble is also one of these pioneers. These companies come to “considering that today there is a parallel market to the mass market that is a community market. It is accepting the existence of a society composed of an aggregate of communities that are distinguished by their consumption habits, their lifestyles, their languages, their ways of dressing and their leisure activities. It is also to recognize that each ethnic group has a unique way of consuming and is capitalizing on this by launching products, campaigns intended to reflect their desires and their needs (Sengès A., 2003.) "

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Introduction “The era of historical melting pot seems to be over, a new phrase summarizes graphically how this attitude becomes dominant among non-white Anglo-Saxon: the salad bowl which will come from a mix of different components (like food), in which each element will keep its taste, its original color, its contribution to the gustatory recipe of the developed dish” (Tréguier J.P., 2003) This sentence describes clearly the French and more generally the situation worldwide. We have to admit that demographic tendencies are evolving, so should our mentalities.

We know that through the past decades, marketing strategies have evolved from a mass marketing to an ethnic marketing approach. In other words, from an individual and local Marketing, we have moved to a global and mass marketing approach. But today, we notice the appearance of a new marketing trend: a global mass marketing which is individualized in function of culture. The one size fits all approach usually fails nowadays. Today, marketers are much more aware of the significant opportunity offered by the varying demographic groups and realize that they can no longer afford to neglect the combined buying power of ethnics. Therefore, in order to appeal these highly lucrative and diverse audiences, many marketers are abandoning traditional mass-marketing practices in favor of tightly-focused, multicultural marketing efforts. 1 However, this tendency is not well implemented in France. This contribution research aims to develop the discussion that is currently growing more and more in France and more generally worldwide. This discussion debate is the following:

Ethnic Marketing: Essential source of development in the field of beauty in mass consumption markets in France In order to develop on this statement, we will try in a first part to understand what this new marketing concept; “Ethnic Marketing” is about. In this view, we will deal with the history leading to Ethnic Marketing, the theoretical concepts of its functions and objectives, and finally, the strategies to put in place in order to assure an efficient ethnic marketing. In the second part of this research, we will link this new marketing strategy to the beauty world and explain why the evolution of traditional marketing in this sector was essential. First of all, by explaining the importance of Marketing in a multicultural world, and then by showing through demographic numbers, why this strategy is so important nowadays. To finish we will conclude this second part by linking directly the ethnic marketing to business and more precisely beauty businesses, giving some examples of success story.

Jim Stachura and Meg Murphy, Multicultural marketing: One size does not fit all, The wise Marketer, October 2005 1

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What is Ethnic Marketing? History It seems that ethnic marketing was born in America in 1900, created by Mrs. C. J. Walker, an African American beautician. The tendency for young women of African origin was to look like the European type; many made use of stratagems inconclusive to straighten their hair. C. J. Walker then had the brilliant idea to launch a heated comb able to straighten kinky hair safely. Using a very effective marketing mix (product, price, place and promotion), her product has been very successful with young African American women: 

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Product: It was easy and simple to use, while being safe to use. Figure 1: C.J. Walker On the package she had the idea to display her face to make the product more credible with young black women. Price: It was calculated regarding the target which was at the time mostly composed of low income people. The price was cheap enough so that the product could be acquired by this class, but on the other hand, it was expensive enough so that clients have a quality impression when buying this product. Place: The product was distributed through beauty salons as well as through direct sales for clients who couldn’t afford going in institutes. Promotion: the advertisements were published in African-American newspapers. The product was subtly led to black celebrities to the point where Josephine Baker (considered as the first black star) made it come to Europe for her personal use.

Here is another example of ethnic marketing: In 1913, the industrial giant Procter & Gamble got interested in different ethnic and religious targets. Thus, in order to launch Crisco (a fat product) the company targeted the American Jewish community. The aim was to enable Jewish women to better control the traditional American cooking instead of letting them grow their cultural differences. Indeed, in a late 1810’s context, all immigrants arriving on American soil to escape poverty or wars were Figure 2: Crisco recipes for the Jewish housewives designed to fit as quickly as possible into the American society. Their goal was to become U.S. citizens in their own right. Therefore, ethnic marketing was limited to the creation or development of products in order to better integrate and match up the values and codes of the white population dominant majority. 2

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Tréguer J.P., Segati J.M., Op.cit., p. 194-195

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Nowadays, Ethnic Marketing knows a major boom in Europe. Indeed, because of a cultural mix in the U.S., “traditional” marketing had to adapt to these new data. Ethnic marketing was born. As an American phenomenon never remains long on the continent, it has spread worldwide.

Theory and concept What is ethnicity? An ethnic group (or ethnicity) is a group of people whose members identify with each other, through a common heritage, often consisting of a common language, a common culture (often including a shared religion) and/or an ideology that stresses common ancestry. The concept of ethnicity differs from the closely related term race in that "race" refers to grouping based mostly upon biological criteria, while "ethnicity" also encompasses additional cultural factors. 3 We can differentiate the ethnic groups with different criteria, customs, languages, countries of origin... In addition to the geographic or 'race', ethnicity may also be related to a sense of belonging. Regarding the Marketing in a multicultural world, ethnicity is influenced by personal experiences and interactions with others and by the images provided by the mass media. 4 Ethnic Marketing Ethnic Marketing, also called Multicultural Marketing or Ethno-Marketing, is increasingly present in our consumer society. New markets tend to emerge, targeting different groups. The purpose of Ethnic Marketing is to consider the different ethnic groups as target marketing and requires some subtlety and respect for the culture concerned in order not to fall in the discrimination. In some cases, these targets may lead to modifications and adaptations of products. The different communities see in ethnic marketing their integration without compromising their own values. 5 Ethnic marketing considers the different ethnic groups as marketing targets and requires some subtlety and respect for the culture concerned not to fall in discrimination. In some cases, these targets can lead to modifications and adaptations of products. 6 Ethno-Marketing has its roots in the migration of nations. 7

Definition from Wikipedia, the free encyclopedia Marketing in a multicultural world: The interplay of marketing, ethnicity and consumption by Ahmad Jamal, Cardiff Business School, Cardiff, UK 5 http://www.creg.ac-versailles.fr/spip.php?article51 6 Marketing ethnique. France, [référence du 24 février 2009].Disponible sur http://www.emarketing.fr/xml/Definition-Glossaire/5784/Marketing-ethnique/ 7 http://www.creg.ac-versailles.fr/spip.php?article51 3 4

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Ethnic Marketing strategies Three major ethnic marketing strategies are commonly used by companies in order to position themselves effectively to their ethnic segments. The integration strategy: Marketing strategies and communication remain the same. The only difference is to systematically include models or actors belonging to ethnic minorities alongside the usual white actors in each of the communications company. This technique is relatively new and was developed fifteen years ago in America The "micro-marketing" strategy: This strategy acts directly on the marketing mix to make a product more attractive to a target ethnicity. In this way, companies will change their distribution network or adapt its communication. The Multicultural strategy: A company tailors its entire marketing regarding the target ethnic group. For example, a company might create a department specifically dedicated to ethnic marketing. How to succeed using ethnic marketing strategies? In our approach to understanding what Ethnic Marketing is and how Ethnic Marketing strategies are employed today, we will consider three main steps that are the pillar of an efficient and successful strategy. The first step is to consider the ethnic diversity and emphasize personal marketing. In this view, there are 5 main keys to take into consideration and that marketing strategists should particularly value: 1. Value the cultural uniqueness of your target group. 2. Value cooperation and bridge-building with community leaders and other organizations working within the community. 3. Value the cultural beliefs, symbols, and practices of your target group. 4. Value differences in languages, accents, practices, and social conduct. 5. Value word-of-mouth and interpersonal communication to spread your message. The second step is to determine the level of ethnicity of the target group. The level of ethnic marketing needed within a marketing strategy will depend on the degree to which your target group members identify themselves with their respective ethnicities. Finally, last but not least, once the first two steps have been looked carefully upon, the ethnic marketing strategy can be launched.

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Situation of Ethnic Marketing in France Even if ethnic marketing seems to be an unavoidable evolution worldwide, the situation in France is not as simple as that. Indeed, there are in France obstacles to the development of an “ethnic marketing “made in France”. According to Anne Sengès author of Ethnik! The marketing of the difference: “This seems to arise from the refusal of communitarianism behalf of Republican values, the lack of statistics describing and quantifying the so-called ethnic markets, the reluctance of advertising community to recommend targeting, lack of visibility of minorities in advertising and media in general” While unavoidable in the Anglo-Saxon model, ethnic marketing is still not widely spread in France. This technique of market segmentation which targets minorities awakens an anxiety that is deeply rooted in the French society: the communitarianism. However, advertising agencies are hopeful that attitudes will change and thus open the doors of a market whose boundaries are not yet measurable. Ethnic marketing is more and more attracting Western countries. However, French manufacturers are still mostly wary of the method which consists of a market segmentation based on ethnicity and community. "The vision of French society is completely different from the American one. We are very attached to the republican model, a one and indivisible republic. Ethnic marketing goes a bit against this universal approach and, ultimately, it is almost regarded as racism" says Anne Sengès. "Another major concern in France, the tremendous fear of communalism," she adds. In the unconscious of many French people, ethnic marketing has a negative connotation which refers in particular to the 2005 riots in French suburbs. That's why manufacturers are still hesitant to the idea of associating their brand to an ethnic model. For some advertisers, accusations of promoting communalism are a bad trial. "How can it be denied that France is multiple, diversified”, Asks Didier Mandin, Associate Director of the agency “Ak”, specialized into ethno-marketing. “We must not remain static. We must accept the fact that French society is changing”. Anne Sengès argues: "In the U.S., the Latino market represents a larger population than Canada as a whole". But this gigantic U.S. has no equivalent in the Hexagon: "In France, there is no market of this size. There are still small communities, but more diverse. I think it also explains the fact that ethnic marketing is not yet developed among us." 8 Indeed, it is estimated that 12 to 14 million people in France (20% of the French population) have non-Caucasian origins. However these results can’t be verified, because of the voluntary absence of official data from public authorities (Tréguer JP, 2003). This point has also been highlighted by Anne Sengès: "The real problem, which explains the slow takeoff of ethnic marketing in France, is the lack of tools to quantify the market". Indeed, ethnic statistics are forbidden in France. In December 2007, a bill to legalize them was requested by the Constitutional Council. Didier Mandin denounces this situation: "To convince industry to focus on the different communities, they must have

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http://www.acta-diurna.com/article-16450895.html Jean-Philippe Chognot

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reliable figures. But for now, we do not have these figures. This puts us a spoke in the wheels when you want to form representative samples for studies of market. " The denial of ethnic statistics is symptomatic of the discomfort that causes ethno-marketing within the French society. But manners are starting to evolve. "France is beginning to realize the limits of its model. And then there's already had a World Cup in France in 1998 with the “black-white-arabic people” phenomenon. All this helps to change attitudes,” says Anne Sengès. These changes in attitude will not happen overnight. Nevertheless, the ethno-marketers remain optimistic as evidenced by Didier Mandin: "In 2006, when they called industrialists, they were likely to say they were not interested. Now, in 2008, they are increasingly seeking our services, ethnic marketing."

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Ethnic Marketing and its application to the mass consumption beauty products In order to understand clearly why and how ethnic marketing is impacting beauty mass consumption products and their businesses, we first need to understand why this new targeted marketing is relevant nowadays.

The importance of marketing in a multicultural world According to Ahmad Jamal in the Marketing in a multicultural world 9, marketing plays an important role in facilitating the co-existence of a variety of modes of consumption and of a sense of being in the contemporary marketplace. By doing so, marketing promotes liberty and freedom and liberates the lifestyles of consumers. Secondly, consumers of one culture do interact and adapt to the marketing practices of marketers from another culture.2 In other words, in a world where there are so many different cultures and ethnicities, and as the same time, where beauty products are leading by occidental leaders, we have to adapt marketing strategies in order to answer all customer’s needs and wants.

Demographic numbers In France First of all, as we saw earlier, we have to mention the fact that in France, it is legally impossible to talk about ethnicity. For example, the fact that some information such as religion or the race cannot be requested without the consent of the person is part of this idea. The ban in France to talk about ethnicity makes it impossible to find exact numbers about the different ethnicities in France. So qquantifying the number of people from each ethnic group in France is not an easy task and it is impossible to find out official figures. Even if we can’t have exact numbers, we can still try to get information from different cultural websites. One source on a Franco-African website 10 talks about 4.5 million black people in France, which means around 7% of the population. We also talk about 10 million people from North Africa and Middle East which means around 15% of the French population. According to another website, there are about 600,000 Asians in France which represents around 1% of the population. 11

Ahmad Jamal, Cardiff Business School, UK http://www.jeuneafrique.com 11 http://www.tonynguyenofficiel.com 9

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From these results, we can assume than more than one quarter of the French population has an ethnicity that differs from the occidental one. It is unbelievable that companies (in our case, cosmetic companies), would not target these populations and therefore would be giving up one quarter of their potential customers. Worldwide It is not only a French finding: at a global level, minority ethnicities are growing as well. Demographic studies show that in the future, the dominant population in occidental countries will tend to reduce to the benefit of minority groups. In Australia for example, the dominant English people are supposed to represent 66% of the population in 2030 while the Asian population will increase by 13%. In the United States, projections show that the white population will reach 62% of the population in 2025 against 72% in 2000, in favor of the Hispanic and Asian groups that have increased respectively by 7% and 18%. Regarding these developments, some believe that the standard marketing approaches that ignore cultural differences within the same national economy are unlikely to effectively reach ethnic groups with a strong sense of identity. Despite these findings and this reality that our world is changing, some advertisers refuse a segmented approach of the population by ethnicity. For them, ethnic marketing is same as communalism. Robert Rochefort, director of CREDOC, confirms "that manufacturers are reluctant because the segmentation is similar to the ethnic segregation and may be interpreted as the exclusion of the majority." But by refusing this segmentation by ethnicity, are we not putting away and rejecting these populations who do not find as many products as the occidental women that are relevant for their types of skin and hairs? Juergen Schwoerer, director of Sociovision says "marketing is the search criteria of differentiation and segmentation." From his point of view, it seems legitimate to segment the population if there is a new criterion to differentiate relevant and clear in order to adapt efficiently the products to their needs. According to the U.S. Census Bureau, it is estimated that more than half of the U.S. population will be non-Caucasian in fifty years, being mainly Hispanics from Latin America, who will become the first community in America. In addition to their growing proportion in countries populations, ethnic minorities have a purchasing power which grows 2.5 times faster than White people. Europe also had waves of migratory peoples, Poles, North Africans, Italian, Portuguese, Indian and Pakistani in Britain, Turkish and Polish in Germany. These consumers retain many naturalized interest in their roots and keep strong ties with their countries of origin. Their economic acts, food expenditure particularity, are moving towards products of their country of origin. They thus form ethno-homogeneous subgroups, which encourage some companies to adopt policies specific marketing, they are the main targets. 12

Corine Nardot, Le Marketing ethnique, une stratégie pour répondre à une société pluriculturelle, 2004 12

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Ethnic marketing and cosmetics companies today The interests for companies There is a growing recognition in the marketing literature that many national markets are not homogeneous. France for example is characterized by domestic cultural diversity. 13 Cultural diversity is an expression used to describe the coexistence of a variety of ethnic groups within the one national market. Market researches dealing with these ethnic groups point a continuous increase in membership and volume of purchases (Pires, 1999). Hence marketers need to adapt their programs to their special needs and wants. In this view, businesses such as cosmetic companies have to target each ethnicity in order to understand and answer their needs. It is also a huge opportunity for these companies because they are targeting a community which was not part of their clients before. Therefore, this represents a huge source of revenues for these businesses.

Moreover, once these new customers are impacted by the products, cosmetics companies have to know that the cost of retaining an existing customer is lower than the cost of acquiring a new one. Moreover, a retained customer is one less customer for competitors. This is for these reasons that promoting customer loyalty is necessary in order to stay viable and competitive in the long run in nowadays markets. According to some studies, ethnic groups are more likely to invest in long-term relationships. Marketers who disregard building loyalty among their customers are doomed to eventual decline (Duboff and Sherer, 1997). 14 Ethnic marketing: a key success factor for cosmetics companies Ethnic marketing enables cosmetic companies to meet the needs that some ethnic groups may experience. The interest for these businesses is obviously to increase their popularity and generate more profit while satisfying the majority of their targets. Today, we see that African people are instrumental in the launch of new trends. Therefore, it is a major asset to have them as clients. In France for instance, the proportion of people with African or North African origins is constantly growing, so it is important for businesses not to neglect this part of the population. In terms of cosmetics, according to a study carried out by the Institute of Specialized Study on the Afro-French population, a black woman uses nine times more hair products, seven times more makeup and five times more skin-care products that a white woman in the same conditions (age, professional category and family situation). It is therefore very important for cosmetic brands not to overlook these consumers. In general, marketing tends to hyper-segmentation, so it is normal that at one time or another ethnicity might become a part of the segmentation criteria. As we have seen before, ethnicminorities needs are different from those populations for which a traditional marketing is not appropriate. In USA, companies started to get it by adapting their advertising campaign and their products to the Marketing services to ethnic consumers in culturally diverse markets: issues and implications, by Guilherme Pires and John Stanton 14 Marketing services to ethnic consumers in culturally diverse markets: issues and implications, by Guilherme Pires and John Stanton 13

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different ethnic groups. The marketing mix has evolved into a "modern salad bowl" that is to say that every immigrant is completely free to integrate into American culture while retaining their native culture. 15 However, in France, the American "salad bowl" does not pass without difficulty because the legislation does not allow advertising for ethnic minorities which is seen as an “anti-Republican” act, even if Jean-Paul Tréguier (Enjeux Les Echos, 10/03) is sure than France is actually adopting little by little the American “salad bowl”. But it is still not well accepted in France. For this reason, huge companies such as L’Oréal are not presenting their product for a specific ethnicity but for several at the same time, showing in their advertising campaign an important range of the same product that can be adapted regarding the ethnicity of the person. Of course, in France there is also the fact that some information such as religion or the racial background can’t be requested without the consent of the person. L’Oréal: A success story L’Oréal has very well understood these worldwide changes. Since they ignored the characteristics of ethnic-products, L’Oréal bought the US firm Soft Sheen-Carson to acquire their know-how. The "ethnic" subsidiary of L'Oreal believes that their potential customers spend three times more, excluding hair products, than white clients. As we already said earlier, it is also estimated that a “black” woman uses a lot more products that a white woman under the same conditions. 16 L'Oréal Paris opted for the multicultural approach with HIP, a line of high-pigment makeup fronted by Beyoncé Knowles. With all these actions from this company, we can say that L’Oréal quickly got the huge marketing opportunities for their businesses. L’Oréal is not the only one taking care of ethnic communities.

HIP by L’Oréal with Beyoncé K.

Procter & Gamble is also one of these pioneers and according to the company, ethnic cosmetics represents a $1.5 billion market, with mass retail accounting for roughly 50 percent cosmetics has emerged as a robust business in its own right. 17 Although the turnover of companies specializing in cosmetic products for non-whites remains still small (about $200 million), the ongoing demographic evolution hints at a huge potential for growth. An estimated one billion people around the world have African origins. Through the many interbreeding, "80% of the world population has some degree of ethnicity "(C. Matthews, President of Soft-Sheen-Carson). The brand has also launched INNOXA, an "ethnic chic" makeup range in 2003, whose axis of communication is rooted in the values of the trip "Turquoise Indian, exotic ocher, with the new collection ... Ethno Chic, the ethnic beauty becomes a journey. Between distant lands and ancient rituals, makeup explores new territory." 18

http://www.scribd.com/doc/13143761/Le-Marketing-Ethnique According to studies by ak-a , research institute specializing in Afro-French 17 Beauty's Broader Reach: Mass Brands Wake Up To Ethnic Opportunity 18 http://www.creg.ac-versailles.fr/spip.php?article51 15 16

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Why others should follow this tendency? Indeed, all around the world, black people spend around $1.6 billion in cosmetic products in supermarkets and shops and around $3.5 billion in beauty and hairdressing salons per year. Hispanic women spend around $48 million per year. Asian women have a high and growing purchasing power, therefore, cosmetic companies should more and more define products dedicated to these different markets. If these findings are the reality worldwide and since it is a truth that the situation in France is evolving quickly, then we can conclude that what happens actually worldwide is actually happening in France as well. French cosmetics businesses should then quickly adapt their product and moreover their marketing strategies to reach these customers before other do. As a matter of fact, that is what really happened. More and more cosmetic companies are following L’Oréal in this new Marketing approach: Ethnic Marketing and this, for an obvious reason. Indeed, skin types and hair needs are different for different categories of people. For example, Vaseline (skincare products) protects differently from white skins of black skin for example. We can observe that the company has marketed a range of products with a greater moisturizing effect which communication is oriented toward people of color. The packaging of these products that are Vaseline Range for black people rich in cocoa butter has even been adapted with brown colors. 19 It should be emphasized that not only black people are targeted by the cosmetic industry marketing but also other people such as Hispanics, Asian and Arabic people. This distinction is not always made in Europe, and I want to clarify that when speaking of ethno-marketing, we take into account the different segments of the population. To conclude on this part, each minority ethnic group must be seen as a market opportunity in itself, and its opportunity cost calculated towards other available market opportunities, given that it is this that provides the context for a decision that is business specific. 20 Mass beauty firms now see the ethnic color cosmetics market as a burgeoning opportunity, and contrary to the past decade, when marketers talked about the ethnic beauty business which was mainly referring to hair-care, they are today also referring about skin care. The major players in this industry are aware of this attitude and, whenever possible, they are learning to take it into account. For example, Maybelline ran a successful campaign recently that talked about the updating of shades in the “Shades of You” line. The theme was: "What Good Is Color If It's Not Your Color?" These marketers have gone deep into the trenches to recognize that this consumer is savvy and no longer cares whether the company that makes the product is Black-owned. What they really want to know is whether or not you're offering the right product at the time they're ready to purchase. 21 In today’s competitive markets, many marketing organizations are considering how micromarketing efforts can directly impact their bottom line by achieving greater results with a fixed marketing

24/02/2009 www.vaseline.com Revisiting the substantiality criterion: From ethnic marketing to market segmentation 21 Is This the Era of Understanding Or Greater Confusion? By Diane Hendy 19 20

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budget. The challenge is that micromarketing requires a new level of understanding of customers, prospects, and the demographic makeup of targeted areas. Marketers depend on marketing research to determine what consumers want and what they are willing to pay for. 22 Adopting ethnic marketing comes to “considering that today there is a parallel market to the mass market that is a community market. It is accepting the existence of a society composed of an aggregate of communities that are distinguished by their consumption habits, their lifestyles, their languages, their ways of dressing and their leisure activities. It is also to recognize that each ethnic group has a unique way of consuming and is capitalizing on this by launching products, campaigns intended to reflect their desires and their needs (Sengès A., 2003.) "

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The evolution of mass marketing to micromarketing : Democratization of Goods by Deepali Gupta

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Conclusion This research gave us a good and general overview about “Ethnic Marketing” practices in France and across the world. To conclude, we can say that France is a bit behind into the “Ethnic Marketing” tendency. Even if this new efficient Marketing strategy has been proven in the US, it seems that French marketers are not all ready to adapt their Marketing approach to this new one because Ethnic Marketing already meets some limits in France. Indeed, if France has the largest multicultural society in Europe, their decisions makers resist ethnic temptation, considering that ethnic and religious subjects are exclusively private matters. 23 French historical tradition assumes that all immigrants should be integrated by assimilation, and therefore opposes to institutional multiculturalism which makes it difficult for the development of “Ethnic Marketing”. However, advocates of Ethnic Marketing are finding that criteria differentiation and segmentation are legitimate when there is a new relevant differentiation criterion. Moreover, demographic studies show that the dominant population will tend to reduce in favor of minority groups in many countries. It is even less relevant to ignore these consumer groups as economic indicators show that these last groups see their purchasing power and influence increase in their host country. 24 We can conclude that this is the paradox of Marketing: Answer men and women’s needs by proposing an adapted cosmetic product while they face a more and more multicultural population that lives, work and consume nowadays. We can easily say that in France, attempts to ethnic marketing in cosmetics are limited to black people at the moment. For now, we don’t know well Asiatic and Arabic skins for example. There aren’t any French companies specialized in this domain. This might be an opportunity for cosmetics companies to target also minorities in France. This will necessarily have to be done by respecting the French law, which might evolve over the next few years. Because what happens in France today cannot only be explained through demographic results, we can assume that this tendency is a reality. This tendency explains why our country is so rich in terms of diversity and cultures.

I. Barth et A. Boyer Professeur à l’Université de Metz et Sophia-Antipolis, LE DÉFI ÉTHIQUE DU MARKETING ETHNIQUE 24 I. Barth et A. Boyer Professeur à l’Université de Metz et Sophia-Antipolis, LE DÉFI ÉTHIQUE DU MARKETING ETHNIQUE 23

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How to target these new markets in France? Develop specific products according to skin and hair types Asian women: Their hair possess fibers much more regular, so they aren’t wavy or curly, but with a perfect stiff. In Asia, white skin is the tendency whatever the age. Asian women have the distinction of having a hyper-pigmented skin which is rich in melanin, enables them to actively fight against the sun's UV rays and delay the onset of first lines (over 50). But it also generates some minor issues: hyper seborrhea which favors the appearance of pimples or blackheads. However, on an oily skin, makeup tends to hold less during the day. Another drawback of this super pigment protection is the manufacture of hyper-pigmented spots. They appear primarily on the cheeks, forehead, nose and chin, especially in summer when sun exposure, especially in dry and warm regions of Asia. To attain these targets, cosmetic companies should develop products according to their skin issues: detox whitening products are the only solution to muddy complexion. This product may allow sun protection; reduce existing markings and draining dead cells in detoxifying the clogged skin cells. 25 North-African women: Regarding the skins of northern Africa women, the hairs contain melanin of course, but also the skin which is browner, also contains a significant proportion. These skins have a greater vulnerability toward the mechanical or chemical trauma as a possible side effect with depigmentation, hyperpigmentation and keloids. The hair on the other hand is mostly very curly or frizzy, dry and thick. To succeed in focusing this market, cosmetic firms should develop numerous cosmetic products based components originally from the region: Ghassoul (shampoo, soap, pieces), products with Habba Saouda is a true cure for every disease but also of Argan Oil, Kohl, Henna, Honey, Rose Water or Olive Oil. These healthy and natural products are the leitmotiv of an instant beauty made in the Maghreb. Developing the right product is not enough to really penetrate these new markets. Indeed, Asian cultures, Arab and European cultures are very different from each other and their consumption patterns may widely vary. A price that must take into account the purchasing power parity (PPP) The question that naturally arises is: "If the firm lowers its price in terms of purchasing power parity, will she cover all its expenses?” Pricing a product means taking into account the political price of the company but also setting it as close as possible to the acceptable limit for the customer. Asian women: For Asian people, the purchasing power varies a lot within this ethnic group in France. Some of them have a low purchasing power, while other have a very high one and are accustomed to luxury goods. 25

http://www.psychonet.fr/2002/05/07/1621-les-whitening-beaute-a-l-asiatique

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This is why having different ranges of products with different prices and different characteristics could be a good way to target the vast majority of Asian women in France. North-African women: In our case, regarding cosmetics adapted to Maghreb women market in France, the product should be priced lower because very often, this population has a low purchasing power in France. However, the price must be expensive enough to convey a quality image. 26 Distribution in the right quantity at the right place Indeed, we must think about consumer habits. Regarding the Arabic and Asian cultures, cosmetic companies will capitalize on a marketing campaign by forging a relationship between specialty store sellers and consumers. Moreover, these two cultures (Arabic and Asian) often purchase products at specialized stores where they can find typical food and clothes adapted to their habits and culture. This could be a good opportunity for cosmetic companies to be present within this channel, while being present in normal supermarkets as well. Indeed, here again, there is a disparity between the different generations in these cultures: The older generation prefers going into specialized neighborhood and shops to find products while the younger generation tends to prefer traditional distribution channels in France to find their products and foods. For this reason, an in-store presence and specialized area, coupled with a targeted advertising campaign and in the major distribution channels would target the vast majority of the market. A personalized communication First, we need a targeted communication on their ethnic origins. For example, for a product designed for Asian women, the composition should be written in French, Chinese and Japanese depending on the product rather than in German or other European languages. To make the product known by the targeted audiences which are not accustomed to see products which are dedicated to their skin, it might be interesting to be present in specialized magazines. Moreover, Arabic and Asian women having no real product for their skin and hair, and not finding professionals advices in the traditional distribution channels, often turn to the Internet, blogs and forums to discuss with women with the same characteristics of skin and hair, in order to share experiences and exchange tips. It might therefore be wise to be present on these forums thanks to a community manager who will share about the product, the advantages and will give information about it. Be present through advertising banners present on these blogs and forums could be a great opportunity to be known and seen. Once the French law will have evolved, it could be of course a major asset to develop targeted communication campaigns on TV to be seen by the majority of the targeted population. In conclusion, the marketing mix is not universal! Cosmetics companies that stupidly apply traditional principles and marketing to target a non-Western ethnicity would very likely be facing a cultural frontier. Le Marketing mix n’est pas universel by Iscom Master Marque et Management de l'Innovation: http://www.marketing-professionnel.fr/secteur/marketing-pas-universel-international.html 26

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Appendices Articles and Scientific papers Lisa A. Guion, Heather Kent, and David C. Diehl, Ethnic Marketing: A Strategy for Marketing Programs to Diverse Audiences, June 2010 Ahmad Jamal, Marketing in a multicultural world: The interplay of marketing, ethnicity and consumption, Cardiff Business School, 2001 Guilherme Pires and John Stanton, Marketing services to ethnic consumers in culturally diverse markets: issues and implication, Journal of Services Marketing, 2000 Guilherme Pires, John Stanton, Patricia Stanton, Revisiting the substantiality criterion: From ethnic marketing to market segmentation, Journal of Business Research, 2011 Molly Prior, Beauty's Broader Reach: Mass Brands Wake Up To Ethnic Opportunity, WWD Friday, 2006 Diane Hendy, Is This the Era of Understanding or Greater Confusion? WJEC Business studies, Mass Marketing VS Niche Marketing, 2007 Deepali Gupta, Bhadrish Raju, The evolution of mass marketing to micromarketing: Democratization of Goods, 2005 I. Barth et A. Boyer Professeur à l’Université de Metz et Sophia-Antipolis, Le défi ethique du marketing ethnique, 2008 JP Chognot, Marketing ethnique, les mentalités françaises évoluent, 2008 JP Treguer, JM Segati, le nouveau marketing, p. 194-195, 2003 Corine Nardot, Le Marketing ethnique, une stratégie pour répondre à une société pluriculturelle, 2004

Websites  Ethnic Marketing: http://fr.wikipedia.org/wiki/Marketing_ethnique http://www.creg.ac-versailles.fr/spip.php?article51 http://www.e-marketing.fr/xml/Definition-Glossaire/5784/Marketing-ethnique  Ethnic Marketing and cosmetics: http://blogs.ecoles-idrac.com/L-Oreal-change-de-couleur/L-ethno-marketing-et-le-secteur-de-lacosmetique  African cosmetics: http://beaute.afrik.com/Ethno-cosmetique-un-concept.html

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 Cosmetics markets: http://lemarketingethnique.blog-idrac.com/2011/01/04/le-marche-des-cosmetiques/  Africa: http://www.jeuneafrique.com/Article/LIN01047combislitno0/  Asian people in France: http://www.tonynguyenofficiel.com/pages/face-marketing-ethnique/francais-d-origine-asiatique-dindochine-vu-la-discrimination-positive-en-france.html http://www.psychonet.fr/2002/05/07/1621-les-whitening-beaute-a-l-asiatique  Vaseline : www.vaseline.com  Marketing mix: Le Marketing mix n’est pas universel by Iscom Master Marque et Management de l'Innovation: http://www.marketing-professionnel.fr/secteur/marketing-pas-universel-international.html

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