Abstract
The cosmetic industry is a very lucrative, innovative, and fast paced industry where product innovation is the key to success. The purpose of this paper is to present a detailed analytical (qualitative) study of cosmetic industry in the global marketplace with a focus on the four market leaders in this industry relative to their business and innovation strategies.
Business analyses include Strengths, Weaknesses, Opportunities and Threats (SWOT) applied to the four industry leaders. Each of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel. The industry trends indicate that the future of cosmetics may move towards more joint ventures between drug companies, cosmetic companies and nutritional/food companies as cosmetic companies look for new ways to be innovative.
Keywords –Global Business Strategy, Cosmetics Industry, Marketing Innovation, SWOT Analysis.
1. Introduction
Cosmetics have been around for thousands of years. When people hear the word “cosmetics”, they tend to think of makeup and perfume designed for women. Cosmetics actually come in many forms, ranging from powders, body makeup, soap, shampoo, and toothpaste. We can trace the
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Only four percent of the 3.52 billion women around the world consider themselves beautiful. Due to that most women will use eyeshadow, mascara, foundation, etc to make themselves feel better than they did without makeup. Implying that human race has tried to reinvent itself visually over and over again. First the idea originated in Ancient Rome, continued out through the roaring twenties and still is applicable to today. Makeup has developed heavily over the centuries, there are hundreds of makeup outlets where consumers can go and purchase products. The multi-billion dollar makeup industry exist solely for the vanity of the population.
The main purpose of this business report is to review the appropriateness of Jurlique cosmetic products for the Australian target market. The key findings are: Australia is a huge market for cosmetic and toiletry industry, while it is full of competition due to the zero duty on American cosmetics; Jurlique is a well established brand for most Australia customers, however, it still needs unique selling points other than natural ingredient to expand its market share. This is mostly based on the product research and development.
Currently, the business has not ventured in the cosmetic market of London and Canada. Canada and London provide an opportunity for the company to expand its market through its international entry strategy of retailing and B2C framework. The SWOT analysis of the company shows a wide range of strengths and opportunities for the company’s future success such as market gap (London and Canada), Globalization, technology and good customer relation (BBB accreditation). The company demonstrates high capability of sustenance and survival through retailing, personal selling, E-commerce, E-marketing, Fashion Collaboration and other B2B platforms.
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Porter national diamond analysis Supporting Industries Superior in-store infrastructure Counseling counters Cosmetic R&D centre MDO, Max factor Strategy, Structure and Rivalry High number of domestic competitors with high innovation. Tough competition Presence of prestigious foreign brand Intense, established, well respected , high experience and famous competitors Limited competitors in high-cosmetic market which can lead to low innovation and learning improvement as well as an opportunity to easily reach a huge market for P&G
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Cosmetics fall into their own marketing arena. It is the only other product, besides food, that consumers are in constant need of because cosmetics are used in our everyday lives. Cosmetics, in order to have any type of customer base, are made with great quality in mind. With all these different brands offering the same types and qualities of products, Dove had to branch out into another important segment of this cosmetics market. Cosmetics are being used just as much by men as they are used by women, and it is important that a cosmetics product line can compete in the market of men’s products as well. Dove’s main competitors, Nivea, L’Oreal, and Garnier, have not crossed into making men’s products. The lack of men’s products gives Dove a competitive advantage in their arena. Dove has dominated in this category through their marketing and different direction.
Makeup Art Cosmetics (MAC) was founded in 1985 in Toronto by Frank Toskan and the late Frank Angelo. The business plan concentrated on targeting young, fashionable females by creating cosmetic products which contain unique textures and colours. Using this strategy, the company targeted the ¡°hip¡± celebrities and other cosmetic influencers to gain recognition and market share in the younger consumer market. Since its inception, the company has grown to become a multi-national organization operating in over 180 locations worldwide. In the late 1990¡¯s, MAC was purchased by Estee Lauder, which has led to the alteration of the company¡¯s governance; the culture of the firm changed from that of an entrepreneurial-style with limited rules into
Rivalry is intense among the competition in the cosmetic and skin care industry. There are numerous existing cosmetic companies competing in the market. The giant corporations acquire numerous brand name products and compete for the same number of customers. The competition consists of companies such as, Procter & Gamble, L’Oreal, Unilever, Avon Products, Inc., Estee Lauder, in addition to competing with large retailers, who order mass
Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to