Wright_BUS 496_1-2 Assgmnt

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University of North Carolina, Pembroke *

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496

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Business

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Apr 3, 2024

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docx

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4

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Celeste Wright BUS-496: Advanced Experiential Learning/Business Dr. Martin March 10, 2024
Subject Line : Understanding the Business Problem and Impacts Dear Management, Thank you for alerting our marketing team about the current business issue. It seems the problem is that revenue has been increasing over the past five years here at e.l.f. Cosmetics, but it is leveling off. Our current customer demographic is now at a saturation point, and we need to identify and target a new market to boost our revenue. Here at e.l.f., we have always been committed to providing high-quality products that are cruelty-free and at an affordable price. Our core values are inclusivity, integrity, innovation, and impact (DCF Team, 2023). Our mission to make luxurious beauty accessible to all underscores our dedication to inclusivity, affordability, and quality. Revisiting this mission can help us realign our strategies and offerings to better meet the evolving needs of our consumers while staying true to our core values. To combat this, it is essential to get to the root cause of it. We can do this by performing a root cause analysis, which is a “sequence of procedures organizations apply for a better understanding of the problem and its causes, in addition to find alternatives and test them in order to select the optimum one and execute it to solve the problem fundamentally” (SKILLTECS, 2022). The first step is to identify the problems, which are stagnant revenue growth and saturation of current customer demographics. Next, we need to collect data. E.l.f. focuses their marketing efforts mainly on Gen-Z and Millennial consumers, who are currently 12-27 years old, and 28-43 years old, respectively. The gender distribution is 81.43% female and 18.57% male, and 32% of our consumers are in the 25-34 year old age range (Similarweb, n.d.). Based off of current market research, it seems as though the existing customer base has been fully tapped or that there are
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