Competitors
Avon
Over the 50 years of presence in UK Avon managed to establish well-known and trusted brand among UK consumers. De Angelis (2013) reported that Avon continued to be the leading direct seller in the UK, recording a value share of 35%. However, Reynolds (2013) reported that in April 2013, cosmetics giant Avon dramatically pulled out of Ireland ceasing all operations in the country with immediate effect as part of a $400m cost-cutting initiative. Unexpected turn of events in Ireland left Avon’s managers, sales representatives, and clients surprised (ibid). As Avon recorded sales volume of 11 million euros in Ireland in 2013, the pull out decision had a major overall impact on sales volume in personal care and beauty products as well as on network marketing (ibid).
Direct Competitors
Due to the withdrawal of Avon during 2013, “Forever Living Products Ireland Ltd.” became the top player in direct selling market, leaving behind Amway, and other competitors, such as Oriflame, Herbalife Mary Kay, Xango and Aliara. In Ireland Forever Living brand has 34 year history in selling extensive range of beauty and personal care products. The company remains very popular among its Irish consumer base, because the product mix sits well with the current consumer trends which favor natural and safe products.
Indirect Competitors
A broad range of Amway products has a lot of substitutes. In 2014 Irish make-up market the main indirect competitors for Artistry products are L'Oreal S.A. and The Estee Lauder Companies Inc. and Coty Inc. According to Marketline (2012) in 2011 L’Oreal was the top player in the make-up market accounting 25.5% of total market share. In the report (Marketline, 2012) the following top players Estee Lauder, Avon an...
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...tely new flagship store will be built for the same purpose as the one built in London, UK. The shop will stock a variety of Amway products and will also recruit, train and support ABOs.
According to Corbett K. (2013) new figures that have been released by The Direct Selling Association of Ireland (DSAI) show that since the recession there was a significant rise in people who turned to network marketing as a way to earn additional income. Due to this fact, in the future company desires to attract even more unemployed people and get them involved, so they could earn additional income and help their families.
In terms of global future plans Amway invests heavily in manufacturing as their sales continue to hit record highs. By 2016 Amway will try to expand and hit even more sales by building six new manufactories in six new locations including Vietnam, India and China.
Mazal Group was founded in 2007, in Chatsworth, California. They have six main brands and two brands being developed. With their emphasis on cosmetics, they have shown excessive growth in the last few years, opening an average of eight new stores and ten kiosks each year. They have eighty-four employees in their headquarters, up from the initial eight that started in 2007. In 2013, the cosmetics industry in the United States earned revenues of $56.63 billion, with facial skin care representing 27% of the industry (Exhibit 1). CEO, Adi Oded, says, “The cosmetics industry, especially in skincare, is booming. We have all these baby boomers getting older and looking for anti-aging solutions and we are giving them those solutions” (personal communication, June 27, 2014). The cosmetic industry is constantly developing and this in-depth analysis will provide the explanation of why Mazal Group has had so much success in recent years.
We all know that cosmetics existed thousands of years ago. Cleopatra used a heavy arsenal of beauty aids to help her shake the foundations of the Roman Empire. Yes, cosmetics and perfumes have a long history, but the consumer industry we live in is relatively recent, a creation of the decades 1890 through 1920. The products hawked in the 19th Century by druggists, perfumers, barbers, physicians, and a colorful assortment of other enterprising individuals were primitive by our standards. Certainly, active ingredients were used with abandon, notably arsenic, lead, and mercury. These were products that really made visible differences, and the consumer was well-advised to be wary of the majority of these mysterious concoctions.
United Kingdom. Committee of Advertising Practice. Committee of Advertising Practice. Accessed November 18, 2013. http://www.cap.org.uk/Advice-Training-on-the-rules/Advice-Online-Database/Cosmetics-The-use-of-production-techniques.aspx.
Lets start at the beginning Makeup Art Cosmetics or MAC was created in 1984 by two men, Frank Tosken a seasoned makeup artist and photographer and Frank Angelo a successful business owner of a chain of salons in Toronto. They found that cosmetic products that were readily available were not performing well under the intense environment of studio lights & perspiration, had little color payoff, and were constantly having to be touched up. So, they created cosmetic formulas and colors that met these specific needs. By using them backstage on models and performers news traveled fast about how wonderful these products were. At first MAC was only available to the professional makeup artist. Then by word of mouth news spread to the general population and was maid available to the public and in 1994 was purchased by the Estee Lauder who owns many of the world's favorite cosmetic brands. MAC continues to be a testimonial brand of cosmetics, meaning that there is no paid advertising for MAC to promote their traditional product. They rely solely on testimonials and word of mouth advertisement. However you may find that MAC does advertise only one product and that is Viva Glam Lipstick. This is their charity lipstick and it comes in five different shades.
Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
The strategy of WFM, co founder Mackey, is to continue offering healthier options for its customers. The movement into Canada and the UK in the last few years, lays the footprint for additional global expansion. Mackey intends to increase WFM to 1000 stores. The question is whether it will happen through acquisitions or new store locations. The answer based on their history is a combination of both. The store in Canada opened in 2002. Since brand recognition is not as strong, the store struggled somewhat in the beginning; however, the expectation is that it will grow to one billion in the next ten years (Patton, 2013). The stores in UK, which are in the greater London area, have received mixed receptions, and some stores are selling well while other locations are not. However, Mackey is not deterred and believes that longevity will produce the desired results.
MAC (Makeup Art Cosmetics) is originally a Canadian company that has been operating for more than 20 years and it has already penetrate to many countries all around the world, in the North and South America at most. It sells brand cosmetics of high quality that is intended for professional as well as everyday usage. The brand is sought-after also by many celebrities, fashion models, and photographers because of its delicate texture, huge choice of colors, and durability. The products are usually very well tolerated on every skin type and MAC make-up items are also suitable for women with sensitive eyes (MAC, 2007, p. 1). The prices of the MAC cosmetics are comparable with other high quality world brands, i.e. those which cannot be bought in drugstores, but in the specialized cosmetic stores or international perfumeries that the company has a contract with. That hinders the company from further expansion into other countries, mainly in Central and Eastern Europe, because of the limited ways of sale.
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.
Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific (Yahoo Finance, 2005). Avon's products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys (Ibid). The company sells and markets its products through a combination of direct selling, marketing by independent Avon representatives, and via its consumer Web site, avon.com.
There are over a thousand ingredients that are used in cosmetics that are already proven to be safe for human use. These ingredients can be mixed and matched creating new and unique products. Many people argue that this is not suitable for the demanding market. The craving for "new" and "im...
This case examines P&G and whether or not they have the ability and means to make their SK-II product a global brand. In this case, we examine P&G's need for a new global strategy and their ability to develop SK-II into a worldwide beauty product. Ultimately we will see that P&G needs to expand their hold in the Japanese market while becoming more familiar with the needs of potential markets.
Avon is the United States oldest beauty company which has grown from its humble beginnings as a perfume line being sold door-to-door into one of the largest brand of cosmetic products. It has expanded its products in 143 countries and with roughly around four million representatives world-wide. Their global strategy has faced mounting pressures from competitors, overseas economies, and governments to change and adapt to their strategy to maintaining growth. This article will discuss the changes in a corporation global strategy and why it is important to adapt and what can be learned from changing strategy as new technologies emerge and markets mature.
competitors include Mary Kay Inc., and Revlon, Inc. The company’s top foreign direct selling companies of beauty products are L’Oréal (France) and Infinitus (China). AVON sold their North American division, as 90% of sales come from non-U.S. markets. These companies are the top competitors for AVON, due to the similar product base within the cosmetic environment, price points, and target market audience (Wood, 2013). AVON has lost domestic market shares to Revlon, who has increased their marketing campaign against the company. AVON has a challenging foreign market to infiltrate between rivals in respected countries such as L’Oréal and Infinitus. The threat of substitutes is highly competitive within foreign markets in an already competitive industry to
After studying the cosmetic market we can identify a series of needs in this market:
Unilever, the parent company of AXE shower gel, was founded in 1930 when a soap company and a margarine company merged. Due to their control on oilseeds, the main ingredient for many soaps and margarines, Unilever was able to penetrate the market for soaps and shower supplies. They have since expanded and now own many popular brands such as AXE, lever2000, Ben and Jerry’s, and a number of others. “They’re all part of the ‘Unilever armada of brand names’. To make sure the brand names do not go unnoticed, Unilever spends huge amounts of money on marketing and advertising. Advertising has always been a keystone of Unilever’s businesses.” (“Unilever, Overview”). This focus on advertising is often seen throughout the AXE product market, particularly with their shower gels.