Company Case Study: Pacifica Skin Care Company

CVS Health Corporation is an integrated pharmacy healthcare and head quartered in Woonsocket, RI. The President and CEO of CVS is Larry J. Merlo. The company has three segments, Pharmacy services, Retail pharmacy and Corporate. CVS was previously known as Caremark Corporation and the name was changed to CVS on September 3rd 2014.

The P&G community consists of nearly 98,000 people working in almost 80 countries worldwide. What began as a small, family-operated Soap and Candle Company now provides products and services of superior quality and value to consumers in 140 countries.

Johnson & Johnson, a 130 years old famous multinational healthcare company through its family of companies is involved in the research and development, manufacture and sale of a wide range of products in the healthcare. Product that related to human health and well-being has always been their main interest over the years and also presently. Johnson & Johnson was incorporated in the State of New Jersey in 1887 by three brothers; Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson.

These conditions enable the productive substance to create a bigger number of offers or prevalent edges than its competition. In this sense, the Ocean Cosmetics has a competitive advantage of safe products for users with natural ingredients. This point is good for selling point of view of the company’s products to a large group of customers who have great concerns of harsh chemicals. As most of the Ocean Cosmetics’ products do not contain allergy causing compounds, so it is also a competitive advantage of the company to cause an increase in company’s products. Furthermore there is a good and strong relationship between major suppliers Saga Shipping which also make sure a good supply of products in the markets. So combining all, it is good for the company. Regarding sustainable competitive advantage it is known that a sustainable competitive advantage happens when an organization procures or builds up a quality or mix of ascribes that enables it to outflank its competitors. These ascribes can incorporate access to natural resources or access to exceptionally prepared and skilled faculty human resources. It is an advantage and must have some life; the competition must not have the capacity to do it immediately, or it is not sustainable. So in this sense, Ocean Cosmetics have some sort of

Public policies are developed in response to the existence of a perceived problem or an opportunity. The analysis delves into a public issue or problem and assesses a set of proposed government action for addressing the issue. The job of the analyst is to describe the background and status of an issue and then, using research and analysis, determine a proper government action to resolve the issue. By comparing options and weighing their expected benefits, the analyst should conclude with a recommended course of action or inaction to addressing the issue.

Companies have to take into consideration the factors of safety to consumers and the environment, efficacy, sustainable sourcing of materials and costs. Exfoliants with jojoba beads, for example, are more expensive to produce.

2. Determine the project benefits, organizational readiness, and risk culture of the company in the case study. Provide justification for your response.

It is highly recognized in the market especially among teenagers. Traditional acne products are low price range and kind of old fashioned in terms of designation and package, which catches lower income and function oriented customers. Since the main ingredients are not a secret, other popular cosmetic brands can also develop similar products. L’Oreal Launched “Acne Response” new Adult Acne Product, treats acne with gentle formula of 1% salicylic acid and 2.55% benzoyl peroxide, retail Price of $24.99 vs. $39.99 for Proactiv, which soon caught big market share and attracted some of the loose proactive customers. New producers claim that it is the ingredient which matters, not the expensive celebrity commercials. With proper marketing strategy, it won’t be hard for them to share cups from Proactiv. Other competition came from Natural skin care products. Some biological cosmetic products with aloe vera, green tea, passion flower, or Gotu kola are claimed to work well to cure acne and skin bacteria. They are natural and green with less side effect and damage to skin. However, not every company can afford the heavy input in advertising. As the first modern acne prevention and treatment product shown in the market, Proactiv will still lead the market and enjoy the competitive advantage for years.

Aesop is a company that was founded by Dennis Paphitis since 1987. It has 61 stores worldwide. The Aesop is a cosmetic,

The financial projection of the company is promising based on the strategies that put customers first. Also, the cosmetic industry of US has been thriving and revenue projected or forecasted to shoot

As a manufacture of private label personal care products, Hansson Private Label, Inc. has a considerable amount (28%) of market share in its specific industry. However, private labels as a whole constitute less than 19% in the entire personal care industry. Therefore, growth of HPL depends on the growth of the industry and more importantly the growth of private label component within the industry. In terms of the personal care industry, market growth will not improve significantly in the future. As proven in the past four years, unit volumes in the industry increases less than 1% in each year and the dollar sales growth was only driven by modest price increases. Therefore, the opportunity for private labels

Young girls are more concerned about acnes and blackheads while mature women are looking for anti-aging and anti-wrinkle products. Genders do affect the choice of skin care products. In the past, skin care products only belong to the girls’ world. Nevertheless, in recent years, men are increasingly becoming more and more concerned about skin care. With a view to this latest trend, various brands have started developing men’s line. Income level directly affects the purchasing power of customers. Skin care products take up a wide range of price levels from far less than a hundred dollars to more than a thousand. Young girls who do not have any income cannot afford the expensive skin care products while mature women with higher purchasing power focus more on quality and effectiveness. Occupations also determine the need for skin care products. Models and artists generally have a higher consciousness on skin care than people with less exposure to the public.

For China, the company should first consider in building a strong brand in China. SK-II should be expressed clearly to target customers. Company then provides knowledge in using skin care up to six or eight steps. One more considering point is that there is high import duty. Thus, company should minimize the cost to make product profitable.

As the acquisition of Alima continues, we have run into a few problems. These problems are mostly due to the political climate within the region, and property rights issues. One main issue we anticipate could derive from the political climate is the issue of tax credits.

Concerning the product in itself, they chose it to be white in order to differentiate itself from cosmetics (colorful) and pharmaceuticals (transparent). Sanex should also be soft and slightly perfumed. Cosmetics had strong perfumes and pharmaceuticals were odorless. Sanex should produce more foam lather than pharmaceuticals, but less than cosmetics. Sanex would ultimately have to provide a day-to-day cleansing function but also a protective effect to ones skin, thus contributing for it to be healthy. A great deal of concern was also taken into account concerning the packaging of the product. In terms of pricing, and regarding the positioning of the product, Sanex should be proposed at a premium price, closely linked with the highest price of its cosmetic counterpart so that it could be reachable by mass consumers. This was considered to be the right price. Another important aspect concerning its large scale availability was distribution, and Sanex was thought out to be available in supermarket chains and retail outlets. Lastly, a great deal of importance was given to the communication aspect. Being a whole new product, produced by a company that was in this market for the first time, Mr. Muñoz realized that awareness of the product would be very important so he asked for an advertising campaign that should be adroit and credible, able