Describe in detail the characteristics of the consumers in the market.
What does demand look like?
This is a growing industry that is promising for making good sales in the future. The global hair care market has of late expanded at a steady rate, and there is a likelihood to continue expanding. One of the most vital factors that have led to the prevailing stability in the hair care market is the demand for lustrous, healthy, and manageable hair and this is the determining factor that drives the consumers to make most of the purchasing decisions. The market for the hair care products is expected to grow across the globe due to the increasing R&D activities that are meant for the enhancement of these products (MKTG 5, 2012). There has been an
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In 2015, the global hair care market was estimated to a value that is close to US$81.3 billion and is expected to grow up to US$ 105.3 billion by 2024 (Transparency research analysis, 2016). The consumption of hair care products is highest in Asia, followed by Europe, North America, Latin America, Middle East and Africa.
Is it elastic or inelastic?
The demand for hair care products is inelastic (MKTG 5, 2012). This means that a change in the price of the hair care products will lead to a smaller change in the demand.
Are there obvious substitute goods available?
The market for the hair care products is a monopolistic competition where the sellers or the producers deal with products that are differentiated from one another. There exist substitute goods in the hair care market. For instance, there are different types of shampoos across the global market, that is, there is two-rye flour, six-henna, and seven-tea among others. These have been necessitated simply because different customers will demand a different type of shampoo that they think works well on their hair (Larson, 2011). Customers will always want to pay for what they believe will work out on their hair well or as
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Yes, there are important compliments regarding the fragrance that is used mixed with some types of hair care products. For instance, it will be good to have a nice fragrance mixed with the shampoo so that when applied to the hair it can make it smell nice over a certain period. Besides that some other hair care products are sprayed to the air so that it can remain moist and smell nice; the pink after shampoo hair treatment Roux is one of the products that serve well to make the hair smell nice (Larson, 2011).
Is there decreasing marginal utility of consumption?
There is no decreasing marginal utility of consumption in the hair care products. Once a customer has got the products that they believe works well on their hair, they cannot stop buying the same products since they know what the results will look like.
Write down a utility function for a typical consumer. Justify the functional form you have chosen.
A utility function is a vital concept that is believed to measure preferences over a set of products within the market. For this case, the hair care products are the line of products that is dealt with.
U(dc, ic)=
We are all consumers, and we buy diverse products every day. But, do you know what the main factor is that influences us to choose a product? If someone selects a cloth, maybe he pays attention to its quality! Customers’ decisions can be changed depending on what the main factors they are looking at. Various influences can cause consumers to select different products.
This is the where there is use of some attraction to the consumers and in this case the use of an ...
Throughout the decades, women’s fashion has evolved many times, each time creating a fashion stamp unique to that particular decade. One thing has remained the same and managed to remain a part of every era: hairspray. It is a cosmetic product that is meant to hold hair in its place. A lot of products we use today are may have unseen consequences to daily usage. A product I use almost daily is hairspray. I always knew hairspray was bad for the environment because of the aerosol that was in them would break down the ozone layer, so I began to look at a specific hairspray that I use just about every morning and night, Sebastian Shaper Hairspray, Regular, Styling Mist for Hold & Control. This specific Sebastian Hairspray product is not only bad for the environment; it is also bad for humans and animals.
The most significant weakness for Belle Couleur would be the undifferentiated product that will be introduced to the Dutch market. Although the number of shades of hair color will be reduced to accommodate the limited retail shelf space, the colors offered will not be reformulated to cater to Dutch preferences. The colors available to the Dutch market will be those that have been specifically formulated for the French market. The problem lies in the differences in color preferences of the Dutch and French women. While the French prefer darker and conservative colors, the Dutch preferences lie at the opposite end of the color spectrum, preferring lighter shades. The market research indicated that buying intentions of the Dutch women decreased after the test-use because the color ¡§didn¡¦t cover gray¡¨ or ¡§was too dark¡¨. Moreover, competing local and international brands in the hair colorant market formulate their products to Dutch market preferences.
Recent slow expansion of the company is caused mainly by the limited ways of sale and by the worries about the loss of control in the case of penetrating new markets. The company does not think about any other practices than retail contract sales and refuse the offers from abroad to get MAC products in there. “The demand for MAC Cosmetics is there, but the supply is not. While MAC is one the cosmetic lines highest in demand, finding discounted products is actually not that easy” (Vasen, 2007, p. 1 ) Moreover, there are no media advertisement outside the United States and people often do not even know about the products and their advantages. The statistics show that the leading way to get information about MAC products is via referrals (Bates, 2006, p.
Overview NARS Cosmetic is a cosmetic company founded by Francois Nars in New York, US in 1994 (Hollywoodnoirmakeup.com, 2012). It is considered as one of the best-selling cosmetics and skincare products company in U.S.A, Canada, Korea, Japan, and Taiwan (Shiseido Co., 2014). Since the demand for cosmetics is growing every year and people are looking for more quality products, the company decided to open a new branch in the Middle East to have more customers and to satisfy them by making the NARS product more easily accessible. The aim of this paper is to indicate the best country among the GCC to open a new NARS Cosmetic branch by studying every country’s feasibility of a new cosmetic branch. We hope this expansion can please our customers and make better reputation in GCC countries,besides increase our profit.
The media control all mass communication all over the world, its existence is integral to today’s twenty-four hour society. All media is highly influential, from on television to radio, newspapers to magazines, but especially the £19billion advertising industry. Although many people refuse to admit it we are easily manipulated into buying particular products subconsciously, a well-produced and marketed advert can increase sales revenue for any product. Schwarzkopf hair care & dyes is well known as an alternative to the mainstream hair companies. Hans Schwarzkopf whose first formula in 1903 was an instant hit with his female customers established Schwarzkopf in 1868. The water-soluble powder shampoo, “The Shampoo with the Black Head”, offered an easy-to-use and value-for-money alternative to the expensive oils and harsh soaps of the time. Since then the brand has continued to grow and is famous for providing striking colours for women with a more adventurous style at an affordable price.
265-268). This is quite apparent for SheaMoisture. Many women with natural hair use SheaMoisture because of their excellent brand image that caters to specific tastes and preferences within the natural hair community. They continue to gain revenue because these women continue to consume SheaMoisture products due to brand loyalty.
“Marginal analysis involves changing the value(s) of the choice variable(s) by a small amount to see if the objective function can be further increased (in the case of maximization problems) or further decreased (in the case of minimization problems)” (Thomas & Maurice, 2012, pp. 91). Marginal analysis is known as “the central organizing principle of economic theory” for its importance and applicability to many aspects of our daily lives as well as our careers (Thomas & Maurice, 2012, pp. 94). The key concepts of marginal analysis include total benefit, total cost, marginal benefit, marginal cost and net benefit. These concepts all come together to play a significant role in the use of marginal analysis to reach the optimal desired outcome.
The visual of the product is really important in these ads because the fact that scents are hard to describe in words, therefore relying on the visual elements are crucial to sell the product. The product is a tangible good that satisfies the consumer’s needs through the bundle of attributes including features, functions, benefits, and uses. Especially, with the competitive trends and companies in cosmetics that include fragrances, they both being promoted as a “New Fragrance” that is being marketed towards both genders, that would hopefully attract new consumers. Although, the price is not stated in the advertisement, the prospective buyer is aware of where in the marketplace the product is available to be purchased in stores. The two products are not a necessity that one would need as a convenience, but rather a want that one desires for a particular product that consumers use to satisfy a need in a specific ways that are culturally and socially influenced as suggest by the celebrity Simon
"Toxic Chemicals Used in Salon Products." Women's Voices For The Earth. N.p., n.d. Web. 30 Apr. 2014. .
Consumer offerings are essential products that are available in the consumers’ market. However, not all these offerings are part of the consumers’ need at a particular time. In this brief piece of writing, readers will understand the consumer offerings that relate to their needs and when. Similarly, readers will learn the difference in these offerings and probably the products the author has patronized with a vivid example. At the end of the paper, readers should feel free to consult the references that aided the writing.
The US and Western European markets are reaching saturation- therefore cosmetic companies see the future markets for their products in Central and Eastern Europe, Chi...
Most people will use beauty products every day in order to be more attractive, whereas the cost is very high. Hence, customers want to obtain a low price in the stage of transaction.
Product differentiation also can be as the promotion that is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products. The example of product differentiation is brand names, strong dealer network, product reliability, image and services. Rejoice use a salon- smooth hair for a “Haba ng hair” (long hair) moment. Image of Rejoice also is different from other product. So, a customer can distinguish from the out looking of Rejoice. They must do the innovation to the product that can attract customer to buy the product. There are many types of Rejoice product that we call the product line and product