Briefing Report

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Briefing Report

MARKETING PLAN BRIEFING REPORT

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MARKETING PLAN BRIEFING REPORT

Introduction

This document is a briefing report that seeks to provide information to the company’s CEO about the need that has been identified by our marketing department to carry out a market research about the current trends as well as developments in the industry of beauty and cosmetics. The research will also seek to analyse our competitors, the potential emerging markets and any other factors that could be relevant to our marketing and strategic objectives.

Market overview

NatureCare Products is a company that is located in the city of Brisbane, Australia. The company mainly deals with the manufacturing as well as retailing of beauty and skin care products that are of the highest quality and are largely eco-friendly. The company has a vision that is well embedded in the strategic plan. The vision seeks to make the company the leader in the market for the provision of sustainable and high-quality products for skin care.

Trends in the Cosmetics Market

The cosmetic market in Australia was valued at about $4.98 billion. It is projected that this market will grow at the Compound Annual Growth Rate (CAGR) of 9.31% and by the year 2020, it will be worth about $7.76 billion (Kumar, 2005). The cosmetic industry is greatly impervious to the market fluctuations. Economic downturns are expected to obviously affect sales. However, cosmetics have the ability to maintain some given volumes of sales overall. This is occasioned by the fact that usage of beauty products by women is on the rise while men are also jumping into the bandwagon. There is an increase in the disposable income among the people; an increasing liking for good looks; and easy accessibility to the consumers who are at the bottom of the pyramid. These are just but some of the factors that are pushing the growth of this industry (Kumar, 2005). The industry however is faced with challenges of a market that is extremely saturated on the Eastern Coast, hardships in segmenting the market and an economic slowdown.

The cosmetic industry trends that are predominant are among others a growing market share for products considered to be ethnic, rising liking for natural and organic products. The cosmetic market in Australia has a very broad segmentation based on the types of products; skin care and hair products, fragrances among others; and the channels of distribution; supermarkets, direct selling, e-commerce, speciality stores and others (Kumar, 2005).

Currently, the main competitors for NatureCare Products are Botani and Jurilique. The products of NatureCare are priced at a slightly higher level than those of the competitors and this falls into our advantage because in a market where competition is stiff, the luxury commodities that are more expensive are associated with class and better quality.

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Briefing Report
Last updated: Feb 2024

Page 1

r level than those of the competitors and this falls into our advantage because in a market where competition is stiff, the luxury commodities that are more expensive are associated with class and better quality.

Current customer profile

NatureCare Products currently deals several ranges of products which include cleansing creams that soothe the skin during the process of removing makeups. There are also moisturizing creams that work wonders on dry skin (Kumar, 2005). Another product range is the regenerating facial scrub which removes dead skin and facilitates regeneration of new cells. The company is well established in the Australian market where its main target customers the health stores that are distributed all around the country.

SWOT analysis

PESTEL Analysis

Political factors

Safety of products is a very hot topic in Australia. The cosmetics industry attracts so much debate in this regard because the products are created for application on human skin. There is a hand-on approach to ensure safety of these products (Yüksel, 2012). Companies manufacturing beauty products are required to give out reports of their ingredients while all manufacturers have to be registered. These regulations affect business in that it is very bureaucratic to come up with new products.

Economic factors

The cosmetic and beauty industry has a very high resistance to situations of economic recession. People have made beauty products a necessity in their lives just like eating is. This therefore means that the cosmetic industry only feels a small effect of any economic problems.

Social factors

These factors revolve around brand loyalty. Consumers of beauty products start by trying an assortment of products until it comes to a time that they settle on one. Once they’ve found that one product, they stop the experimentation and become loyal to that brand (Yüksel, 2012). Brand loyalty for beauty products is often horizontal, where customers become loyal to a certain product from a company A and another product for a different purpose from another company B. Social factors therefore has a positive impact on the cosmetic business.

Technological factors

Technological advancements have revolutionized how the beauty industry is run. Online shopping means that a customer can order for a product any time of the day or night and have it delivered to them. It therefore means that this is a blessing and a curse in equal measure to the big and well established stores. This is because sometimes back these big stores had to compete only between themselves but they now face competition from small online stores.

Environmental factors

Today, more than ever, the cosmetics industry is working extremely hard on being ecofriendly and going green. The products are packaged in an environmentally friendly manner. There is however an…

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Briefing Report
Last updated: Feb 2024

Page 2

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