Introduction In December 2013, GCI Magazine reported “Beauty Retail Expected to Grow 5.2% into the year 2018.” We are among the top five of those expected to expand based on our current annual revenue of 3.8 billion, with $246 million in net revenue, and market trends which we are projected to bring our industry revenue to roughly 16 million within a mere 3 years (2018). But I have a question? If this is true and we RULE the world of beauty supply why are our shares declining? Why are we loosing stockholders interest? Why are consumers not buying with us as frequently? Why is OUR brand showing signs of inconsistency? According to the Street Wire we show signs of “ 'Water-Logged and Getting Wetter ', they are saying we have and “stock …show more content…
and availability of such a product to that of Sephora and Ulta with the concept of Proctor and Gamble “My Black is Beautiful”.
Potential Market Segment
Our potential Market Segment for proposed implementation include the following:
Major Segmentation Variables for Consumer Markets
A) Geographic region All SBH active locations within the continental United States (able to reach approx.. 5% (undetermined) of African American Women)
B) City or metro size 100,000; 100,000–250,000; 250,000–500,000; 500,000–1,000,000; 1,000,000–4,000,000; 4,000,000 or over
Larger cities and where we have more locations such as NY (19%), NJ (16%), TX (13%), GA 32%)
C) Density Urban areas (larger, more favorable market)
D) Climate Northern, southern are both densely populated with the target demographic.
E) Demographic gender & age Females, 14– 65yr
F) Family life cycle Young, single 14+; young, married, no children; young, married, young; married, older, married, with children; older, married, older, single; other
G) Income $10,000-$20,000; $20,000–$30,000; $30,000–$50,000
F) Occupation Professional and technical workers; managers, officials, and proprietors; clerical salespeople; craftspeople; forepersons; operatives; farmers; retired people; students; homemakers; unemployed people
G) Education High school and
Lastly, the most effective alternative for Princessa Beauty Products would be to offer their merchandise online through opening an eBay and Amazon store. In creating an online store with eBay and Amazon they can cater to
The definition of true beauty continues to evolve as generations pass and new ones emerge. Ulta Beauty, a popular cosmetic store, sells products with the aim to make women feel confident in their skin. Their use of advertisements helps spread the word about new, improved product lines and reach out to potential buyers. Selling makeup is the obvious goal of a cosmetic store, but the kind of consumers they attract and how varies between different franchises. When a company displays their products in one shot instead of in a commercial, the task of conveying the message becomes harder. Ulta Beauty persuades women to purchase their products by pointing out buyers’ insecurities while still appearing to promote empowering feminist values.
While beauty is not limited to social media and online authority but has started from the ground up in stores such as Claire 's and Sephora which birth new trends and encourage women to “Be Yourself”. Claires, a store generally shopped at by pre-teens, has began created light BB & CC creams for sheer to light coverage. In Claire 's there are less than 2 Deep complexion shades for these young pre-teens… With the simple act of secluding African and African American teens from shopping at Claire 's diminishes their confidence in their skin from such a young age. With in-store technology advancing the precise matching of skin complexion Sephora has continued to break skin shade boundaries… or so we think. In a recent interview with a Sephora employee she states, “When an African American walks in looking for a complexion product the girls run away because they “can do it” (Amy). Sephora does offer a mandatory SkinIQ matching class which does show how to properly match shades (which also matches undertones). Shea Moisture (A hair and skin brand known for being African and African American promoted) created a groundbreaking commercial showing race being a divider
Its cosmetic department may face a similar situation to Gerdeman’s article where skin color bias is promoted through advertising. Skin whitening creams can be found in the cosmetic department along with propaganda to encourage customers to buy their merchandise. To ensure that there is no bias portrayed in the media, managers must reconsider how to portray an impartial view on fairer skin tones leading to happiness. If I were to lead the marketing campaign for skin lightening products at Macy’s, I would equally promote the product for restoring an individual’s natural complexion from damages of the sun. By taking this course of action, there is no particular skin color that is favored by the Macy’s establishment.
The first competitor we have chosen for this assignment is the makeup brand NYX Cosmetics. The name NYX comes from a Greek goddess whose name was Nyx, as she was referred to “a goddess in the night”. This brand is among top competitors with e.l.f. because of his availability, trends, price, and variety of items in their product line. Some of NYX’s products consist of foundation, lipstick, blush, primer, eyeliner, color correctors, eye shadow, and other eye accessories. We found in a recent article titled 15 Affordable Makeup Brands You Should Know About that stated, “they (NYX) have a wide assortment of lip products that range in color and texture, eyeliners that can and will do anything you’d dream of and a series of roll-on glitter powder too!” (Thetalko, 2015). With that being said, it seems to be that NYX Cosmetics has just about every other quality (and maybe more) than e.l.f. Also, its type of availability and accessibility is similar to e.l.f. in that you can find NYX makeup products in just about every general store or makeup store. Some stores that carry this brand are Ulta, Walmart, Nordstrom Rack, and Walgreens. While other factors play into the “popularity” of this makeup brand, NYX Cosmetics sells products that range from $4 to $30. The second competitor we chose for this assignment is the makeup brand Makeup Revolution. While this brand is not sold in many stores, its online sales make up for its limited access. However, this makeup brand is sold in one of the
Bureau of Labor Statistics. U.S. Department of Labor (2014). Occupational outlook handbook, 2014-2015 edition. Retrieved from http://www.bls.gov/ooh/
Black Diva Beauty Supply will be stocking items to enhance the customer’s appearance increasing the store traffic and adding to a higher generation of revenue. Products will include group market demands, environmental and health conscious products ensure an overall well-being for the client and trendy styles and new age products for the younger set of consumers. Black Diva Beauty Supply standard categories
The beauty industry is very large and continues to grow; according to Euromonitor International and IBIS World Inc., the industry represents about $127 million in sales from beauty products and salon services, as stated in Ulta’s 2015 annual report (Ulta Beauty, 2016 p. 5). Ulta Beauty currently competes with highly regarded department stores, salons, and even Amazon. Despite this, Ulta Beauty has maintained its place among leaders within the beauty industry, according to Elaine Low for Investors.com (Low, 2016).
workers. Also included are variables relating to industry, years of education, and gender for each worker.
However a store dedicated to only cosmetics and that has a large variety of brands and products is more appealing to the customer. Another large strength that differentiates Ulta from its competitors our their in store salons. Each Ulta location has a 950 square foot salon. Equipped with 8-10 salon station. Their salons offer services such as hair cut, hair coloring, facials, manicures, and skin treatments with trained and certified beauticians. A majority of Ulta’s marketing comes from their direct mail catalog and email catalog. This gives a full display of the products they offer and includes coupons for the store. This is a great way to encourage people to shop at their store by showing all they have to offer and giving them a discount. The makeup and beauty industry is on the rise currently with many people wanting high end beauty products. Many new beauty brands are being introduced and existing brands expanding their beauty lines. Brands are fighting to get shelf space on stores such as Ulta and Sephora. This has lead to Ulta being able to charge these companies more because the demand for shelf space is so high. Struggling to compete with other brands many high end beauty products such as Bobbi
These employee’s include engineers, assistants, secretaries, drivers, human resources, trainers, marketers and accounting, all employees indirectly related to the production and sale of the product.
Estée Lauder has an extremely large presence as the global leader in prestige beauty with products being sold in more than 150 countries. This global success is attributed to their focus on cultural relevance, making sure that their products, signage, marketing etc. appeals to consumers in each local market.
Further Penetrate the Japanese Market: Currently, Japan remains SK-II¡¦s most attractive and proven market for this product-line. Having already established brand recognition, high awareness (+70%), and a loyal and growing customer-base (spending $1,000/year+), P&G should focus on further penetrating this market. Japanese women are among the world¡¦s most sophisticated users of beauty products, and per capita they remain the world¡¦s leading consumer of the prestige and multi-step offerings ³ SK-II¡¦s Japanese target market is well-defined and very loyal once acquired. Furthermore, having succeeded in Japan before with its ¡§Lipfinity¡¨ launch, P&G has existing distributor relationships and has viable access to these customers. Rather than investing heavily to enter new markets such as China or Europe, P&G can more effectively direct these resources to expand/extend the product-line and develop newer, profitable Japanese segments. P&G can also rely on its existing sales model and target the sophisticated and informed Japanese consumer by offering technologically enhanced products and systems such as: 1)
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
The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, creams, lotions, cleansers, sun screens, and self-tanning products; and makeup products,