Category: Cosmetology

Chinese cosmetic and skin care industry is on the growth path. The industry experienced a growth of 13 percent between 2009 and 2010. It is worth RMB 64.2 billion. In terms of products, China’s cosmetic and skin care industry derives growth phenomena from gene-repair products.

These are mainly anti-aging and premium skin nourishers. Chinese consumers prefer products that claim to enhance skin elasticity through repairing the DNA in the damaged skin, leading to few wrinkles.

Chinese cosmetic and skin care industry also experiences stiff competition among major players. For instance, in 2009, Lancôme Genefique was the first product that claimed gene-repair capabilities. A year later in 2010, Christian Dior introduced a Dior One Essential serum to target women with mature skin.

Mid-high income consumers characterize Chinese cosmetic industry. This is the fastest growing consumer segment of Chinese cosmetic and skin care consumers. These women are in their 40s and 50s years of age and mainly in major Chinese cities like Beijing and Shanghai.

These segments of consumers want to maintain youthful skin, and are willing to spend money to do so. They are responsible for escalating sales of skin care products for body, face, hand, and lips.

Chinese consumers have increased trends in consumption of personal care products. This is mainly in the area of skin care among women. The niche market is on anti-aging products.

As a result, demands and strong market among premium and mass market consumers have emerged. On the contrary, hand and body creams have experienced slow growth, but they have not reached points of decline.

China also has women consumers aged between 20s and 30s who are conscious of their skins. According a market research of 2010, these age groups prefer anti-aging products. The report indicated that this segment of consumers accounted for 18 percent of the Chinese skin care market. This segment of the market grew by 14 percent in the year 2009.

In 2010, Chinese consumers became price sensitive for the first time. Price sensitive consumers have increased consumption and market penetration of skin care products. However, price sensitive consumers of Chinese market are reluctant to purchase premium and mass market brands as companies are yet to find products that can appeal to them.

Category of Lancôme’s major competitors

Lancôme has major competitors in the Chinese cosmetic and skin care industry. These competitors include L’Oreal, Procter & Gamble, and Shiseido among other local players.

L’Oreal is the market leader in Chinese cosmetic and skin care industry. The company commands 16 percent of the total market share.

The company has strong and stable international brands. It also has high-end brands such as Biotherm. The company targets mass market consumers who prefer fair prices. At the same time, it also serves low-end consumers with products like Garnier and Garnier Mininurse.

L’Oreal has at least 10 skin care brands. This is a strategy of providing for different needs of consumers and increasing command of the market share. The company has a growth strategy that aims at capturing the second and third tiers cities. The company relies on a management system known as Charm Alliance for distribution its products direct to resellers.

Through the system, the company creates customer loyalty and repeat distributions through provisions of substantial discounts and store membership. L’Oreal has been able to grow its core brands namely Maybelline, New York, Garnier, Yue Sai, and L’Oreal. Since the launch of Charm Alliance, the company has received more than 1,000 applications from retailers who want membership.

L’Oreal is also aggressively expanding online using Taobao, an equivalent of e-bay. This strategy has enhanced sales and increased the company presence.

Procter & Gamble is the second competitor after L’Oreal. Procter & Gamble cannot match extensive marketing strategy and strong brands of L’Oreal. During the period of 2009 and 2010, Procter & Gamble lost market shares to 11 percent. Unlike L’Oreal, the company has only two brands, SK-II and Olay.

Olay brand experienced a slip in market shares. However, it remains the most popular brand in the mass market with wide distribution and strong customers’ loyalty. The company increased advertisement activities of its premium brand, SK-II and recorded increased sales.

Another strong competitor is Shiseido. This is a Japanese high-end skin care company. The company positions its brands as detoxification products in Chinese markets. The company launched a new product, Cle de Peau that claims to reduce stress from the environment on the skin and enhances the skin radiance.

Shiseido had 10 percent of the market share in 2010. The company’s strategy for new products involves focusing on additional value to consumers. For instance, Shiseido launched DQ and positioned it as a pharmaceutical product that is only available in pharmacies.

Shiseido uses high-end retailers through counter and beautician system to distribute its products. It targets urban, high-income earners in the first tier cities of China.

The company also diversified its products to include new brands like pre-make up and cosmetic products. At the same time, the company also has mass market products like Za and Urara. However, these products are not under premium brands marketing.

In terms of premium brands, companies have mixed results. However, international brands dominate the Chinese cosmetic and skincare industry. This segment is approaching its maturity stage as there are minimal changes in market shares among competitors.

Critical issues Lancôme faced in 2010

In 2010, a new segment of consumer emerged in Chinese cosmetic and skin care industry. Chinese consumers became price sensitive for the first time. Price sensitive consumers have increased consumption and market penetration of skin care products.

However, this segment of consumers is reluctant to purchase premium brands. As a result, companies like Lancôme and other competitors have not developed products that match price preferences among this segment of consumers.

There were stiff competitions from Christian Dior, L’Oreal, Procter & Gamble, and Shiseido among others. Some of these companies launched new products and increased their marketing and advertisement strategies.

Chinese market is also haven for counterfeit brands and imitation of premium products for low quality. For instance, there were counterfeit brands of SK-II that contained carcinogenic as an ingredient. As a result, there are also unscrupulous dealers in the industry. Lancôme shall contend with the existence of unscrupulous dealers and counterfeit products for many years.

China’s skin care and cosmetics industry’s key success factors

The success of cosmetic and skin care products companies depends on women consumers. A survey in Shanghai revealed that 87.3% of these products consumers were women. Still, 76.7% were women aged between 19 to 44 years.

There is an emerging segment of price sensitive consumers who drive mass market growth and wide distribution of cosmetic products. However, this market is still new as companies are yet to produce brands that match such consumers’ price needs.

Chinese society is also social sensitive as well as price sensitive. Consumers in first and second tiers are willing to spend much on cosmetic products. On the other hand, third tier and rural consumers are not willing to spend much on cosmetic products.

Recommendations based on the four Ps to Lancôme executives covering 2011-14

Products

Chinese economy is among the fastest growing in the world. According to results on the future of Chinese skincare industry, there is huge potential for growth with an average rate of 23.8% annually. However, the industry has concentrated on women products and neglected male consumers. Thus, Lancôme should develop products that also appeal to male consumers.

Most players in the industry continue to launch new products to attract new markets. Lancôme should also adopt the same strategy and focus on skincare for all segments of consumers. Chinese mass market consumers look for tailored products. They have shifted their attentions to toner for skin whitening.

The company can exploit the large market of nourishers, anti-aging, and masks. This area has potential of 10 percent growth among both female and male consumers. At the same time, the company should introduce brands with functional benefits such as anti-cellulite and body firming creams.

Distribution

The company can exploit the large market of nourishers, anti-aging, and masks. This area has potential of 10 percent growth among both female and male consumers. At the same time, the company should introduce brands with functional benefits such as anti-cellulite and body firming creams.

Price

Chinese consumers are becoming price sensitive. This implies that companies that sale premium brands alone shall have reduced market share. Lancôme should introduce brands that appeal to all segments of the market in terms of prices in order to enhance its market share among its main rivals.

Promotion

Procter and Gamble increased its sales of the premium product, SK-II due to aggressive promotional strategies. Lancôme should target Chinese popular media and adopt promotional strategies that enhance customers’ loyalty and repeat purchases. For instance, L’Oreal has membership programme for its retailers. The company experienced increased demands among retailers willing for membership.

People who are going to run their own companies should be ready for a number of difficulties and challenges as this kind of task is not easy. It requires certain abilities, knowledge, and opportunities. One of the possible ways to succeed in running a company is to read some credible material and use the examples offered by experienced people.

Gewirtz’s “Organics of Scale” and Traber’s “Experts Sound Alarm on ‘Dirty Dozen’” are the two articles that can be used by people, who want to run a company on organic cosmetics, as these sources provide the reader with information about the peculiarities of organic food, its constituents, and the ways of how this type of products may and has to be sold and distributed.

“Organics of Scale,” the article by Lisa Gewirtz, introduces the reader a number of examples of how different organizations were created and developed on the basis of the available opportunities and conditions. The experience of Roxanne Quimby and Burt Shavitz in the sphere of beeswax and a variety of products that can be made from this material proves that it is possible to earn good money ($180 million) from a hobby (Gewirtz para. 2). It is also possible to learn something from the company Charterhouse Group Inc. and understand how the organics may be implemented and properly introduced to society.

Though the article does not give definite pieces of advice on how to run a company or how to attract the attention of potential consumers, it serves as a kind of inspiration for people who want to believe in the worth of organics. Gewirtz introduces the most successful companies and their different ways of success. The reader can gain from this article: a proof that organic cosmetics is a rewarding sphere of investment, a description of the products that can be used, and an explanation of how to prove the correctness of the decisions made.

Traber’s article, “Experts Sound Alarm on ‘Dirty Dozen,’” is another source of information that may be used by people who want to connect their business with organic cosmetics. The peculiar feature of this article is the statistics used by the author and the explanations given in order to define the quality of organic food in the modern world.

Not many people know enough about organic substances, this is why when someone wants to start a kind of organic business, it is very important to consider the fact that people need to know more about the worth of organic cosmetics, its peculiarities, and benefits in comparison with other products, which are frequently offered on a particular market.

This article contains several rather interesting ideas on how it is possible to promote organics. For example, the author underlines that “in this age of chemically ladened prepared food and environmental toxins, we could paraphrase to suggest that which we survive is likely to make us sick” (Traber para. 2). Though such ideas are possible to find online, it is still interesting to combine such kind of help with real-life examples, stats, and explanations as it is given in the article. This is why the chosen article may be called as informative and useful in regards to the ways of how organic cosmetics’ business may be introduced to different people.

In general, both articles teach the reader about the peculiar features of organic cosmetics’ business, its challenges, and its benefits. People need to know what to expect from their decisions when they want to run their own business and introduce unusual products to a wide range of people, and these articles serve as good examples to comprehend the situation mentioned above.

Works Cited

Gewirtz, Lisa. “Organics of Scale.” Daily Deal/The Deal, 2006. Web.

Traber, Chris. “Experts Sound Alarm on ‘Dirty Dozen’.” Aurora Banner, 2010. Web.

Melinda Ayre’s Article Analysis

Melinda Ayre’s article provides numerous important tips to a novice entrepreneur in the sphere of organic cosmetics. The article in question is a valuable source as it contains major anticipations of customers, and it also includes strategies used by some competitors in the market.

First, it is necessary to note that entrepreneurs should be aware of their customers’ needs and wants. According to the article, customers want to be green, and they want to contribute to making the world better (Ayre 6). Therefore, customers pay attention to the companies’ operations and their efforts to be green. Clearly, buyers of organic cosmetics are not ready to buy products of poor quality. More so, when buying organic cosmetics, customers want to have a product consisting of purely (or at least, mainly) natural ingredients.

Of course, an entrepreneur has to take this into account and make sure that the products produced comply with these requirements. The entrepreneur should also pay attention to his/her company’s image, which is crucial in the contemporary world.

The article is a valuable source as it provides solutions to the issues mentioned above. Many companies try to be green and efficient. Of course, when starting a business, it is important to know what strategies are used by competitors. Thus, it is clear that the new company should use renewable energy during production (at least partially). Only natural ingredients can be used. It can be a good idea to donate to some charities and environmental organizations or even participate in a project aimed at making the world better.

In conclusion, it is possible to note that the article in question provides particular points in a checklist of a novice producer/seller of organic cosmetics.

Lessons from Yasmine Ryan’s Article

The article in question provides insights into the industry of organic cosmetics. It is very helpful for novice entrepreneurs who want to start a business in this sphere. First, the article provides information on the operations of one of the pioneers in the field (Ryan 17). This experience is of paramount importance. It is clear that commitment to certain ideas and the ability to maintain the focus on the use of organic ingredients can be seen as crucial for the company’s success in the market. Thus, a new business has to provide its customers with high-quality organic products.

Another valuable point provided in the article in question is concerned with standardization. Apparently, standards are essential for any industry and, when it comes to cosmetics, customers are willing to buy products from brands (producers) they trust as these companies comply with particular standards.

Importantly, the new business should also comply with certain standards. Clearly, some of these are imposed by the government, and they cannot be enough. There is also an important idea that companies join and form certain standardization bodies as well as regulations. The new business can join one of these formations, and it should comply with the standards developed. This will help enter the market, as customers will see a brand that has certification from a well-known organization. Customers will be more eager to trust the new brand.

In conclusion, it is possible to note that the article in question helps a new entrepreneur to learn more about the successful experience of other producers of organic cosmetics. He/she can also learn about standardization in the industry of organic cosmetics, which is crucial for winning customers’ trust and entering the market effectively.

Works Cited

Ayre, Melinda. “Eco Warrior.” Sunday Telegraph (Australia) 2009: 6. Print.

Ryan, Yasmine. “What’s Natural? What’s Organic? Alliance Sets Standards; 5 European Cosmetics Groups Have Joined to Establish Basic Requirements for Certification.” The International Herald Tribune 2010: 17. Print.

Currently, the UK has the largest market share for natural cosmetic skincare products in Europe. The market for natural skin care products has been recording growth for the last decade until 2008 when the financial crisis hit Europe (Oh & Rugman 2012). However, the market is accommodative to new comers because the demand for the natural products continues to rise. Furthermore, the market for chemical-free skin care products faces the challenge of a weak retail environment. Nevertheless, the current chemical-free skincare product market is favorable for a product launch.

Prior to 2009, the market for natural skin care products was growing at a double-digit rate. The players in the chemical-free cosmetics industry were also realizing an annual sales increase of more than 10% (Geiser, Thorpe & Larson 2013). The high-end market of natural products was also affected by the recession. Currently, the UK economy is bouncing back from the financial crisis and the natural cosmetic industry has assumed a similar trend. A recent research study projects that the chemical-free cosmetics industry will be able to achieve a 5% market share of the UK cosmetic industry by the end of 2014 (Kumar 2011).

Some contributors of the increased market share for chemical-free products include their penetration into retail outlets and an increase in online outlets. The trends in the UK market are quite similar to the trends in the European market. Currently, the European natural skin-care product market accounts for a third of the world’s market (Oh & Rugman 2012). Among the potential luxury markets in Europe, the products with the largest market share are perfumes and cosmetics with a market value of sixty-seven billion Euros (Seitz & Johar 2013). Nevertheless, only a little portion of this market is taken up by natural products. Research indicates that the sales of natural skin-care products will increase by a rate of 20% annually for the next three years (Kumar 2011).

Competitor Analysis

The European cosmetic industry accommodates more than 4,000 companies. However, two thirds of these companies are small and medium enterprises. In the UK, there are approximately two hundred cosmetic manufacturers. Out of the two hundred, only about 50 actively target the luxury market (Kumar 2011). Like in many other industries around the world, the UK cosmetic industry is dominated by multinational companies that have firmly established their presence across Europe. Moreover, the UK faces stiff competition from Italy when it comes to manufacture of luxury cosmetics. Italy has also established itself as a major upcoming force in the manufacture of chemical-free skincare products. There is fierce competition for the market share of natural skincare products.

Some of the major players in the European cosmetics industry in terms of market size include L’Oreal Group, Unilever Group, Johnson & Johnson, Proctor and Gamble, Estee Lauder Cosmetics, and Beiersdorf AG (Kumar 2011). Out of all these market leaders, none has established itself in the natural skincare products’ market. The major players in the UK chemical-free cosmetics industry are cottage-like industries such as Alteya organics, Juice beauty, Mercola healthy skin, and Miessence. Most of these brands have established their niche in the natural cosmetics’ market and it would difficult to take away their market share.

Therefore, it would be advisable to create a market from the consumers who are switching from chemical to natural cosmetics. Furthermore, only about 5% of the possible total market share of natural products’ market has been acquired, the rest is still unattained (Kim & Seock 2013). The business’ competition is mostly with other start-ups and not with the existing players. Depending on how the startup companies market themselves, they have the chance of acquiring a huge untapped market share. Italian-made products dominate the current luxury cosmetics market. Therefore, there is need to conduct an analysis of the Italian market dynamics.

References

Geiser, K., Thorpe, B., & Larson, A 2013, ‘Future directions for the cosmetic industry’, The Chemical Industry, vol. 23. no.1, pp. 329-360. Web.

Kim, S., & Seock, Y 2013, ‘Impacts of health and environmental consciousness on young female consumers’ attitude towards and purchase of natural beauty products’, International Journal of Consumer Studies, vol. 33. no. 6, pp. 627-638. Web.

Kumar, S 2011, ‘Exploratory analysis of global cosmetic industry: major players, technology and market trends’, Technovation, vol. 25. no.11, pp. 1263-1272. Web.

Oh, C. H., & Rugman, A. M 2012, ‘Regional sales of multinationals in the world cosmetics industry’, European Management Journal, vol. 24. no. 2, pp.163-173. Web.

Seitz, V. A., & Johar, J. S 2013, ‘Advertising practices for self-image projective products in the new Europe: a print advertising content analysis’, Journal of Consumer Marketing, vol.10. no. 4, pp. 15-26. Web.

Today, the internet provides a big platform for the business world to interact with their customers. However, the ability to trade with potentially billions of clients in a global village is not a remedy to the challenges of business as most people think. It is important to note that success in any retail business still depends on the primary idea of a demand backed up with exceptional and appealing service and products. Setting up an organic cosmetic online store is a lucrative way to attract clients, discover new markets, and improve your sales, (Schmidt, Döbler, and Schenk 52). However, “additional factors that include security, privacy, copyright, and taxations are important factors and in most cases hinder achieving set goals in online marketing”, (53).

This paper will discuss various financial risks and external factors that affect the actual goals and objectives of an online organic cosmetic store.

In most cases, financial issues concerning online stores can better be explained by looking at the customer perception of online trade procedures and law. Online business involves a significant perception of uncertainty for clients, (Schmidt, Döbler, and Schenk 50). Many researchers explain this reason as the primary principle of consumers’ reluctance to use the online market as a new purchasing framework. Uncertainty in most cases involves risk, and this leads to a reduction in profits since most customers do not feel safe to make transactions. Further, a more elaborate way of discussing financial risk as an influential aspect of the success of the online organic cosmetic store is by discussing security and privacy issues.

Security is the most important component of risk that hinders transaction using an online platform. Dealing with customers’ data and payments requires maximum safety. Three main situations explore the reduced involvement in the transaction to financial security fears. First, as a retailer, it is important, even though, hard to establish whether the credit card user is the owner or a fraudster. This aspect hinders business in fear of losses. The second issue involves the risk of accessing electronic information of customers’ cards by hackers, and the third aspect involves limited ability to verify whether the client is giving information to a genuine merchant of a fraudster. These factors limit engagement in online business hence reduced customer base. It, therefore, leads to low-profit margins.

Privacy is another important risk that affects returns from online stores. As new software enables retailers to store and transfer individual information for future demand analysis, consumers hesitate to use these platforms for fear of fraud. This process limits the customer base hence lower returns.

Another important is building customer trust. Customers still focus on the “touch and feel” experience, (Madaan 62). This limits involvement in trade over the online platform. This perception together with competition from other online stores and the physical market restricts the profitability of online retail stores, in general. Customers feel safe selecting physically before purchase. The organic cosmetic market is more of a luxury where customers are very keen and, therefore, may require sampling a few items before purchasing them.

Starting an online organic cosmetic retail store may involve some challenges that include; storage of goods and the distribution process. Its success, however, requires involvement of appropriate online tools, (Madaan 63). Starting an online organic cosmetic retail store requires a good selection of website tools that will help you offer appropriate financial security and privacy for clients to purchase effectively. Furthermore, domain names and hosting packages are given much attention if the customers will be able to view your store.

Works Cited

Madaan, K V. S. “Multichannel retailing and ownership structures in retail.” Fundamentals of Retailing; New Delhi: Tata McGraw Hill Education Private Limited, 2009. Print.

Schmidt, Inga D, Thomas Döbler, and Michael Schenk: “Age of change.” E-commerce: A Platform for Integrated Marketing; Case Study on U.S Retailing. Münster Lit, 2000. Print.

Introduction

The cosmetic industry represents a large sector subjected to regulations and state control. The importance of corporate ethics and strict legal rules is evident in this industry because cosmetics have a direct and immediate impact on the health of consumers and their well-being. In recent years, critics admit that more and more companies including such leaders as L’Oréal and Estee Lauder exploit and deceive their consumers by selling low-quality products at a high price. The main problem is that many companies follow ‘softer’ ethical issues balanced by rather more formal legal ones. The ‘law’ may seem distant to many smaller businesses and may seem to be comprised of rites of no immediate relevance. Pomp and circumstance have little connection to their business concerns, or with the alleviation of pressing financial or personnel problems (Sims, p. 34).

Thesis

The main strength of Lewis’s arguments is a rational base and scientific analysis of the facts; Singh uses emotional appeal which has a great impact on readers’ perception and understanding of facts and figures.

Strengths of the articles

The main strength of the article ‘The great pretenders?’ by S. Singh is its descriptive nature and a lot of examples. The author provides readers with an analysis of facts and figures concerning the cosmetics industry and the health effects of cosmetic products. The author includes an analysis of marketing efforts and strategies used by L’Oreal and Estee Lauder and evaluates their marketing activities in terms of current regulations. The author finds that false advertising and promotion is a natural policy of many cosmetics companies. Advertising and promotion used by cosmetics companies do not honestly represent the product, misleading and confusing consumers. Similar ideas are expressed in the article “Is Hollywood at war with the cosmetic industry?’ which opinions and views of two professionals. S. Singh underlines that control of activities in the field is difficult, and efforts should be made to ensure that false claims and pressure tactics are not used. Products manufactured by cosmetics companies raise important ethical issues concerning environmental protection, their impact on the natural environment, and quality standards. For instance, L’Oreal markets beauty lotions that “help preserve youth and beauty”. Thus, the promotion of this product misleads potential consumers: the creams and lotions do not preserve youth and healthy skin (Singh, p. 5). The author uses a method of observations and personal experience to describe the current state of the corporate regulations within the cosmetics industry. Emphasis on these concerns tends to be greatest in the industrialized world, while many of the lesser-developed countries still focus primarily on promoting economic growth or other objectives. Advertising through radio, television, print media and press meets form part of business promotion activities.

The main strengths of the article Clearing Up Cosmetic Confusion by C. Lewis is critical thinning and the theoretical background used in the analysis. The cosmetics industry demands its companies accept strict codes of ethics and social responsibility. Today, the managers of organizations have important obligations to a variety of stakeholders and not just the shareholders, and this should be reflected in the organization’s statements of purpose, such as mission statements. For instance, in the article Lewis states that ‘a wise consumer’ should read the labels and know what’s in a product. Lewis uses descriptive techniques to prove her position. It is possible to say that the ideas and arguments highlighted by Lewis portray that for many companies these issues are connected with the statement that “the social responsibility of a business is to make a profit” (Betton 54). For a legal person, the main problems discussed by Lewis show that it is difficult to accuse cosmetics companies of illegal behavior and policies and protect consumers before a particular product comes to the market. Following Lewis (2000):

The regulatory requirements governing the sale of cosmetics are not as stringent as those that apply to other FDA-regulated products. Cosmetics and their ingredients are not required to undergo approval before they are sold to the public. Generally, FDA regulates these products after they have been released to the marketplace

Lewis underlines that media wields tremendous power over the public, it is very tempting for marketers to breach ethics in their quest to improve business prospects. Dr. Baumann and Dr. Reese underline that it is in this area that marketers can go berserk, making tall claims of products and services with the singular objective of driving sales and pushing up profits “Is Hollywood at war with the cosmetic industry 2006). There can be little doubt that many advertisements have blatantly violated ethical norms, falling under the category of deceptive advertising (Betton, pp. 32-33).

In contrast to Singh, Lewis analyzes the differences between the drug and cosmetics industries. The author underlines that another problem for a legal person is that it is difficult to prove that the company is unfaithful to its customers selling them low-quality products. For instance, “FDA has tried to establish official definitions for the use of certain terms such as “natural” and “hypoallergenic,” but its regulations were overturned in court” (Lewis 1998). The author shows that the main risks are that such procedures lead to health hazards for potential consumers. It means that even if a company accepts ethical regulations as a basic concept of its business, this code does not protect customers from poor service and bad quality (Betton, p. 65). Using persuasive arguments, Lewis (1998), Estrin and Akerson (2000) admit that the state should take corrective action by punishing companies and employees who do not comply with company and industry standards and rewarding those who do. For instance, L’Oreal and Estee Lauder have strict codes of ethics and corporate regulations which bound the employees to keep high standards and reputation of the company (Singh, p. 5). Also, many decisions are made by insurance professionals from a certain number of factors they have considered. The problem for a legal person is that these companies market low-quality products and ‘panelized’ only if the product is recalled. Lewis persuades readers that “companies are not required to substantiate performance claims or conduct safety testing if safety has not been substantiated, the product’s label must read “WARNING: The safety of this product has not been determined” (Lewis, 2000).

Weaknesses of the articles

The main weakness of Singh’s arguments is that the author does not pay attention to legal rules but expresses her personal opinion only. The author does not explain the reasons why many cosmetics companies value profit and market leadership but forget about social responsibility and corporate ethics issues. The main problem is the high cost of testing and R&D. In contrast, Lewis underlines that the low marginal costs of producing cosmetics combined with the high prices give millions of dollars each year for such companies as L’Oreal and Estee Lauder, Lancôme, and Channel. That is, insofar as they can charge more than production costs, and sales to the outside market do not decrease sales in their primary market, they profit by selling at low prices. For instance, if the company claims that its product has a biological effect, “it should technically be regulated as a drug, and its approval process can cost the company millions of dollars” (Is Hollywood at war with the cosmetic, 2006).

The main weakness of Lewis’s analysis is the lack of emotional impact on a reader. Thus, the strength of Lewan is arguments is that the author provides readers with objective analysis of regulations and laws and unveils a conflict between corporate regulations and industry requirements. She underlines that the law has one function, but a code of ethics has another. Perhaps, the best guiding principle here is not that of strict liability but rather that whatever ethical solution is adopted it should improve the ethical position. It is recognized that in a somewhat contentious and difficult world whatever solution is adopted should leave the ethical position at least improved (Estrin and Akerson, p. 43). Using extensive analysis of current regulations and laws, Lewis (1the 998) underlines that the purfollowing norms is co-ordination of activities in accordance with the industry standards. In this case, the norms and regulations should be directed towards achieving the goals and objectives of the organization (Betton, p. 51). In contrast to Lewis, the value of Singh’s arguments is an emotional appeal. The structure of industry standards should define tasks and responsibilities, work roles and relationships, and channels of communication. The increasing complexity in our society is related to an information explosion. Information generation and dissemination have reached new heights. So, many consumers rely on product information promoted by the companies responsible for product quality and advertising messages. Unfortunately, many cosmetics companies forget about these issues driven by personal gain and financial results (Estrin and Akerson, p. 44). Responsibility and legal rules mean that companies have broader obligations including specific responsibilities toward customers, employees, suppliers, and society as a whole. Policies and standards have a great impact on the overall being of a business determining moral and ethical standards applied to all areas of operations (Betton, p. 82). Estrin and Akerson (2000) underline that if the regulations are inadequate and mistaken, the proper legally permitted procedures should be followed to have the law amended.

Both authors, Lewis and Singh, agree that the problem for a legal parson is that a code of business conduct is not legislation. For instance, the cosmetics company, like L’Oreal, that has taken the trouble to develop and implement a code may be able to use it as a persuasive defense when faced with allegations of impropriety. This notion of the legally persuasive argument of having a code might be termed ‘soft-law’. Voluntary schemes, with government involvement, have much to commend them (Estrin and Akerson, p. 44). Subscription to a code of ethics may be seen as a contract. Although ethics is not law, the fact of subscribing to a code may have some of the attributes of a legal contract. It is not the purpose of a business code to be an alternative to the law; neither is a code meant to be a means of challenging the law, even though this runs counter to the principle of resisting unjust laws. Using examples and substantial analysis of the current situation, the researchers (Estrin and Akerson, Lewis and Singh) state that current laws and regulations do not protect consumers from exploitation and deception. Sign pays special attention to the fact that social responsibility policies should reduce any harmful influence on the natural environment and stakeholders. Unfortunately, many cosmetics companies do not follow a code of ethical conduct which stipulates strict moral and ethical rules aimed to protect interest groups. “Consumers can, however, obtain specific information about a cosmetic ingredient in various references, such as the International Cosmetic Ingredient Dictionary and Handbook, published by the Cosmetic, Toiletry, and Fragrance Association” (Lewis, 1998). Business should be driven by consumers and their loyalty, so if the company is unable to meet high standards and be responsible for its activities, it should be panelized according to the state regulations and legal norms (Betton, p. 45). The case of wrinkle creams and lotions demonstrates ineffective rules and regulations applied to the cosmetics industry:

• The FDA classifies creams and lotions as cosmetics, which are defined as having no medical value. So the FDA regulates them more lightly than it does drugs. This means that products don’t need to undergo rigorous testing for safety and effectiveness before going to market” (Wrinkle creams, 2006).
• By and large, the disclosure of an actual or potential conflict of interest is seen as adequate, rather than an insistence on withdrawal. The article unveils that it goes on to describe ethical values which will characterize a true professional, among which a high place should be accorded to integrity, honesty, loyalty, and fairness. “Because the FDA doesn’t evaluate cosmetic products for effectiveness, there’s no guarantee that any over-the-counter product will reduce your wrinkles” (Wrinkle creams, 2006). This is one of the major challenges for the cosmetics industry which wants to treat ethics seriously, and especially so in unregulated policies. Strict laws and regulations will help to accept ethical decisions and solve complicated problems according to the ethical standards and norms (Betton, p. 65).

Analysis of the cosmetics industry

For a legal person, complications arise, when it is difficult to distinguish between lying, deception, withholding information and concealing information in advertising. Wrinkle creams are a vivid example of deceptive advertising which forces consumers to spend more money than necessary (Lewis 1998). The main problem is that a label tells the truth about the product and its quality but:

The ingredient list, although a mandatory requirement on cosmetics, is also the most difficult part of the label to understand. Most of us don’t recognize the names of the ingredients listed because there are thousands available to chemists creating a wide variety of products. But there’s no way to change that, he says, and still, accurately identify the substances that are used” (Lewis 2000).

The advertisement of the anti-wrinkle cream claims that it can ‘lessen the appearance of your wrinkles’. The deception has led many people to spend more money on this product, endure its bad taste, and also risk health hazards. This is a classic example, which implies that deceptive advertising can adversely impact social relationships, attitudes, and values (Sims 48). With anti-aging products, the main problem for a consumer is that the result depends upon “the type and amount of active ingredient in the wrinkle cream and the extent of the wrinkles a consumer wants to treat” (Lewis 2000).

Conclusion

In general, Lewis and Singh’s augment portray that the cosmetics industry follows rules and regulations stipulated by FDA and FD&C Act, the Fair Packaging and Labeling Act, but these rules do not prevent the end consumers from deception and low-quality products. On the other hand, these rules put manacles on a legal person because many companies do not violate standards and legal norms. Today, there is a strong tendency is for societies to demand that companies act with increasing concern for the overall societal and environmental needs, as well as economic needs.

References

1. Betton, C. I. Global Regulatory Issues for the Cosmetics Industry: Volume 1. William Andrew Publishing, 2007.
2. Estrin, N. F., Akerson, J.M. Cosmetic Regulation in a Competitive Environment. Informa Healthcare; 1 edition, 2000.
3. Is Hollywood at war with the cosmetic industry? 2006. 2007. Web.
4. Lewis, C. Clearing Up Cosmetic Confusion FDA Consumer magazine. 1998. Web.
5. Frederick, R. (ed.). A companion to business Ethics. Blackwell Publishers, 2000.
6. Sims, R.R. Ethics and Corporate Social Responsibility: Why Giants Fall. Praeger, 2003.
7. Singh, S. The great pretenders? Marketing Week 27. 2004,p. 7
8. Wrinkle creams: Your guide to younger looking skin. 2006. Web.

Introduction

In many countries, cosmetic surgery becomes more and more widespread among both men and women. The initial goal of plastic surgery is to eliminate defects that can be congenital or acquired; currently, it is often used to improve one’s body to adjust a form of nose or eliminate excessive weight. Such procedures as liposuction, breast augmentation, and eyelid surgery are the most demanded surgeries all over the world (ISAPS 2015: reports increase of over 1 million cosmetic & aesthetic procedures 2015). In terms of marketing, it is important to understand what the incentives that make women choose cosmetic surgeries are. The hypothesis is that cosmetic surgery positively affects young Irish women’s self-esteem.

Body

For various reasons, women turn to plastic surgeons – some want to become younger or think their body parts are not attractive enough, others want to look like a certain person. The more young women who seek help from facial surgeons, the more research on their psychological state is conducted. Swami et al. (2009) state that the intention to change one’s physical appearance without any evident reasons may be a sign of low self-esteem. In particular, the impact of public opinion, as well as stereotypes related to the so-called body image, make young women choose cosmetic surgery as means of obtaining an appraisal from others.

With the desire to achieve satisfaction from appearance, young women select specific surgeries. They emphasize that intentionally want to improve their self-esteem that directly depends on what other people would say about their body. In the study by van Soest et al. (2009), patients were examined immediately before the surgery and several months after. The authors of the study emphasize that before the surgery, self-esteem and the level of self-sufficiency in women from the first group were significantly lower than in the representatives of the general population, and, later, according to the questionnaire, it rose to the norm. According to the mentioned scholars, there were no external significant differences in appearance between patients and representatives of the control group (van Soest et al. 2009). At the same time, the former pointed to the baseness of self-esteem about the eyes, nose, and facial features as a whole.

The identified study demonstrates that despite obvious improvements in self-esteem after surgery, many women may need additional psychological preoperative support. Similar findings are revealed by Farshidfar, Dastjerdi, and Shahabizadeh (2013), who focuses on women’s attempts to improve their appearance through surgical intervention due to low self-esteem and rejection of their own body. According to these authors, plastic surgery contributes to increasing self-esteem as a person becomes an active transformer of his or her own life and becomes confident that even an “unsuccessful” appearance can be changed.

In Ireland, the niche of cosmetic surgeries seems to be favorable for various marketing strategies. For example, stem-cell-based interventions may also be considered in terms of plastic surgeries as they are rather demanded by women (Berger et al. 2016). Since the Irish law has no specific laws regarding the mentioned area, marketing strategies may be developed according to the general ethical and aesthetical principles. As stated by Prendergast, the founder of Venus Medical in Dundrum, demographics, location and innovation should be taken into account while preparing PR actions and attractive offers to clients (O’Connor 2014). It is also reported that the above clinic strives to provide the best services as well as after-care, thus ensuring that clients achieve their goals, be it the increased self-esteem or elimination of depression.

Among the factors that impact young women’s decisions regarding cosmetic surgery, one should also note such concepts as body appreciation, the role of media, and weight status. Swami (2009) pinpoints that cosmetic surgery is especially desirable for those women who perceive the media messages as informative and relevant. On the one hand, the constant states that people should accept themselves as they are, while others will love one not for appearance but inner content. On the other hand, the media sends a reverse signal: everyone can change to feel better. The cult of human beauty and sexuality existing in the modern media leads to the fact that many people use the translated images as role models (Swami 2009). On TV and the Internet, cosmetic surgery is often advertised, which transforms the appearance so that a person gets self-esteem, becomes more attractive, and, as a result, finds love and happiness.

To make the research more comprehensive, one may also discuss the findings presented by Păduraru and Răşcanu (2013). The results are similar to those of other authors – the self-esteem of participants increased after the surgery. However, it should be stressed that this study focuses on people who need such surgery due to medical prescriptions, and their paramount intention is associated with survival (Păduraru & Răşcanu 2013). Therefore, further research is needed to understand the role of body image and the clinical necessity for surgery affect one’s self-esteem.

Conclusion

To conclude, the studies show that cosmetic surgery is useful to transform one’s appearance, and it helps people with low self-esteem to improve their quality of life. With the help of cosmetic surgery, young women receive the opportunity to become more confident and open to the future. Therefore, it is possible to conclude that cosmetic surgery increases self-esteem in young Irish women, which can be used in marketing to promote the corresponding services.

Reference List

Berger, I, Ahmad, A, Bansal, A, Kapoor, T, Sipp, D, & Rasko, JE 2016, ‘Global distribution of businesses marketing stem cell-based interventions’, Cell Stem Cell, vol. 19, no. 2, pp. 158-162.

Farshidfar, Z, Dastjerdi, R & Shahabizadeh, F 2013, ‘Acceptance of cosmetic surgery: body image, self esteem and conformity’, Procedia-Social and Behavioral Sciences, vol. 84, pp. 238-242.

ISAPS 2015: reports increase of over 1 million cosmetic & aesthetic procedures2015, Web.

O’Connor, R 2014, ‘Clinic’s success is more than just cosmetic exercise’, The Irish Times, Web.

Păduraru, MC & Răşcanu, R 2013, ‘Body scheme and self-esteem of plastic surgery patients’, Procedia-Social and Behavioral Sciences, vol. 78, pp. 355-359.

Swami, V 2009, ‘Body appreciation, media influence, and weight status predict consideration of cosmetic surgery among female undergraduates’, Body Image, vol. 6, no. 4, pp. 315-317.

Swami, V, Chamorro-Premuzic, T, Bridges, S & Furnham, A 2009, ‘Acceptance of cosmetic surgery: personality and individual difference predictors’, Body Image, vol. 6, no. 1, pp. 7-13.

von Soest, T, Kvalem, IL, Roald, HE & Skolleborg, KC 2009, ‘The effects of cosmetic surgery on body image, self-esteem, and psychological problems’, Journal of Plastic, Reconstructive & Aesthetic Surgery, vol. 62, no. 10, pp. 1238-1244.

Introduction

The main purpose of this Campaign Pitch is to aware target audience regarding the new product (Women Cosmetic). To do so, this report will concentrate on the positive sides of the product, marketing mix, SWOT analysis of this campaign, objectives, positioning, and selection of media for advertisement.

Marketing Mix or 4P’s Analysis

Product Analysis

The new product for the campaign is a skin-care body lotion with Aloe extracts, Vitamin E complex, and Neem essence. The campaigning focuses on the fact the benefits of this herbal-oriented cosmetic are higher than that of the cosmetics, which contain animal fats, chemicals, and toxic substances and consequently proves to be harmful to the skin. The proposed skincare lotion for the campaign has several properties, such as anti-aging vitamin E, natural antioxidants from Aloe Vera that enhance skin quality and smoothen it, and antiseptic properties from Neem leaves.

Price

Before fixing the value of this lotion, the marketers consider several factors, such as production costs, packing costs, supply and demand conditions, the response of the potential customers, discount, price of raw materials, and the price of similar products and so on. As the market is too competitive, the company can adopt an economic value estimation model to offer the products at a lower price than the competitors offer for their products.

Distribution or Place

The products of this company are mostly distributed in the Australian market but the marketer of this project would like to capture international markets like Asia and the US market because Aloe Vera is popular in these regions. If the campaign fulfills the objectives of the campaign, then the marketer must drive in the international market with full confidence to distribute its products directly to the target customers to increase its sales growth.

Advertising or Promotional strategy

This new advertising campaign must support the positioning strategy of the products, emphasize lower-priced units in the ads, including the commitments, benefits of the products, and other key facilities in the campaign program to build a strong, recognizable brand and to aware people about skincare.

Research and Development

The marketer has already established a new segment in biomedical research units to bring forward satisfactory numbers of prospective new products to carry on its development (Belch & Belch, 2009).

Demographic Research

According to Index Mundi (2010), in 2010, Australia had a total population of 21,515,754, out of which 18.6 percent aged from 0 to14 years (with 2,026,975 men and 1,923,828 women), 67.9 percent aged from 15 to 64 years (with 7,318,743 men and 7,121,613 women), and 13.5 percent aged from 65 years and over (with 1,306,329 men and 1,565,153 women). Besides, the average age of the total Australian populace is 37.5 years (with 36.8 years in men, and 38.3 years in women).

Target Market

The target market for the marketing campaign of the new women’s cosmetics is mainly women aging from 15 to 45 in Australia. According to ResearchWikis (2007), there is a growing trend among women of these age groups in Australia to use cosmetics because of an endeavor of appearance-enhancing benefits along with anti-aging properties, preservation, and protection of healthy skin, reduction of wrinkles, etc.

Focus Group

The focus group is those women in Australia who are fond of the latest cosmetics in the market and are certainly fashion-focused, frequently spending time on shopping around for skincare cosmetics; the majority of these focus group has principally resolute by international fashion, which has a major influence on Australian trends.

Demand

The marketing campaign is built on the fact that demand for the new product (Aloe-extracted lotion with Neem-essence) will be high in the market as teenage girls and working women have great demand for such skincare products for increasing concern about sun damage and age resisting properties; demand for such product is also raising due to brands associated with celebrities.

Packaging

During the marketing-campaign of the cosmetic, most consumers will make decisions depending on the attractiveness of labeling and so good-packaging is quite important for the success of the skin-care-lotion; therefore, packaging of this lotion will appeal to the generation that it has targeted and it will reflect the brand-image through unique and attractive graphics together with good-quality and appropriate packaging-material.

Positioning

By using positioning strategy, the marketer of the skin-care lotion’s campaign will be able to aware the target audiences of important features of the product together with the message in customer’s mind that the use of herbal Aloe Vera and natural Neem essence is far better than using cosmetics with toxic chemicals. Therefore, the positioning will be done by emphasizing the distinctive benefits and exceptionalities in people’s minds.

Media Selection

The marketer of the body lotion has intended to choose the following advertising mediums to build the image of the campaign and develop public awareness:

• Print Media: Newspaper is the major advertising media for any new product to come to the attention of mass people; the aloe body lotion will start and continue paid circular advertising with attractive photographs in the newspaper for a long-standing period; moreover, the marketer also want to come up with press kits, brochures, and posters.
• Radio Advertising: The campaign of the cosmetic will also go through radio-advertising, as this form of advertisement will better address those busy women who, for example, hear the radio while driving cars; radio-advertising would develop potential-outcomes for the campaign with a sense of flexibility and this can also have a good capture over audiences with help of good scripts and slogans.
• Television Advertising: Television advertisements are expected to the best media to attract women of all ages, including middle-aged women spending their leisure, or working women watching TV on a Saturday night. This form of marketing will also be effective for teenagers as they are the majority of the population to watch television. The marketer of the skin-care lotion would get more opportunity to exhibit creativity and credibility through TV advertising and reach to the mass public at a time (Pearce & Robinson, 2006).
• Internet: This form of advertising may include web marketing, including Search Engine Optimization (SEO), advertisement through social networking sites, website development, blogs, and e-mail.
• Outdoor Advertising: Outdoor advertising can be a great form of marketing to keep huge contribution to attain the aim of the campaign; this may include setting billboards at busy streets beside colleges, universities, offices, shopping malls, bus terminals, or airport roads (Kotler & Zaltman, 1971).
• Special Advertising & others: Depending on the success of the product’s advertisements stated above, the marketer might undertake other forms of advertising in the future, such as demonstrations at fairs, concerts, and so on.

Competitor Analysis

The cosmetics industry in Australia is highly competitive due to the presence of several competitors in the market; the industry, for example, is greatly saturated by numerous multinational businesses as well as some local players. The Australian Pharmaceutical Industries Limited, originally based in New South Wales in 1910, holds five percent market share and is one of the major players of the market; conversely, Jurlique International Pty Ltd, another industry player who manufactures and markets a range of high-quality, natural-based skin-care and aromatherapy products and herbal medicines is also quite popular among consumers. Jurlique International Pty Ltd has considered as a key competitor of the marketer of Aloe Vera body lotion because this company largely focuses on herbal cosmetics; apart from that, other competitors comprise Petra Hair Care, The Body Shop Australia, The Perfume Connection, The Estee Lauder Group, Lush, and Crabtree & Evelyn (IBIS World, 2010).

Uses

The product has been specially designed for the uses of women in both facial and body applications. The product has been made such that it could be used by women of all ages and it mainly moisturizes skin and enhances skin clarity naturally from inside which means that it is by no means harmful for girls aging below 15.

Brands

According to Keller (2009), branding is one of the most important things that a marketer of a new product needs to do; this may include developing its brand by using existing brand awareness, knowledge, and image to target audiences by focusing on a brand name, logo, symbols, design, package, and functional performances

Objectives

This campaign will pursue DAGMAR Model to the aware target audience and the following figure demonstrates the model –

This campaign aims to increase awareness of female customers by 80%;

Overview of the Tactical Plan

This Tactical plan for Campaign Pitch – New Product (Women Cosmetic) intended to encourage, guiding, and motivate public perception to develop mass awareness among the target audience with the objectives to protect the skin from damage and the adverse impact of harmful products. It also aimed to convey the message to the target audience that the costs of artificial products are higher than herbal beauty products, and it may cause skin cancer, so, the slogan of this campaign would be “Feel amazing – look gorgeous”.

SWOT Analysis of Pitch Campaign

Strengths

• This campaign must help the target group to select the right products for their skin as most multinational companies made cosmetic products with harmful ingredients;
• This marketing campaign not only develop awareness level but also encourage the farmers to cultivate Aloe Vera and earn billion-dollar (Lee, 2001);
• This campaign will help the company to capture 3% of the total market share;
• Another strength of the program is – this project will create many jobs and income opportunities for young people;
• The campaign award some people and organizations who have a corporate social responsibility and take care of the customer’s skin.

Weakness

• A large portion of the focus group are unaware of the benefits of Aloe Vera;
• The key problems of this campaign project availability of sufficient budget to carry out an advertisement in television media or and implementation of research outcomes;
• Lack of communication system with target customers is a problem for the marketer, for instance, some customers would like to read a newspaper or magazine.

Opportunity

• This campaign project would help to aware 60% of women of Australia to use Aloe Vera products as it will save the skin from damage;
• However, Pitch Campaign will assist to create brand awareness then the marketer would be able to sell its franchises;
• Australia produce a large scale of Aloe Vera; so, the cosmetic producer would be able to collect product ingredients from the local market;
• It has the opportunity to build up a large customer base for its beauty products.

Threats

• Some large local competitors are the main threat for the marketer of this Aloe Vera Cosmetic products, which also offer similar beauty products;
• However, 25% of women of the target group are not interested in the raw materials, they only concern with the brand image;
• The marketer of this campaign would like to engage celebrities but it should require a huge budget.

Projected Marketing Budget of Pitch Campaign

Table 1: Marketing Budget. Source: Self-generated.

Recommendation

• The marketer should increase the budget for the campaign to meet its objectives;
• It should develop a web site, which will help the marketer to advertise free of costs;
• It should concentrate on male customers besides female customers.

Reference List

Belch, G. E. & Belch, M.A. (2009) Advertising and Promotion. 8^th ed. New Delhi: Tata McGraw Hill.

IBIS World (2010) Cosmetic and Toiletry Retailing in Australia. Web.

Index Mundi. (2010) Australia Demographics Profile. Web.

Keller, K. L. (2009) Strategic Brand Management- Building, Measuring, and Managing Brand Equity. 3^rd ed. New Delhi: Prentice-Hall of India.

Kotler, P. & Armstrong, G. (2009) Principles of Marketing. 13^th ed. New Delhi: Prentice-Hall.

Kotler, P. & Zaltman, G. (1971) Social Marketing: An Approach to Planned Social Change. Journal of Marketing, 35(3). Web.

Lee, J. (2001) Natural Beauty: Cosmetic Products Create Agri-Business. Web.

Pearce II, J. A. & Robinson, R. B. (2006) Strategic Management. 8^th ed. London: McGraw-Hill.

ResearchWikis (2007) Cosmetics – Australia 2007 Marketing Research. Web.

Stream (2010) The field of advertising management. Web.

AG knows that to be successful you need to have more than just-style. It’s more about substance – what’s on the inside and what inspires you to constantly improve. We are a company that’s driven by the passion, and determination of our employees and artists spreading the infectious AG philosophy. So, what’s the philosophy? It’s to keep developing and evolving as a company and invigorating brilliance. And at a recent training, AG’s Artistic Team did just that.

With industry leader Vivienne Mackinder as our guide, AG’s seven-member Artistic Team learned exactly what it means to be brilliant. With fresh eyes, they looked at shapes, proportions, and history for inspiration. The team was asked to let go of all they thought they knew, and embrace their inner artists. The result? Sheer brilliance!

Vivienne began working with the team on the basic foundational skills – pinning, French Twist, Marcel Waves, The Gibson, and hair sewing, paying specific attention to “shape”. There is a reason the “grandmasters” still use these techniques. It’s because they work and can stand the test of time in any situation just with a tinge of self-expression in the work.

Using the camera as our silent assistant, we photographed the team’s journey. Taking a step back to see their work at every angle; they learned to see their models from others’ eyes. They were challenged to find the shapes and silhouettes of what they were creating; oval, triangular, round – and to understand the shape and analyze it. By “taking 10 seconds to look at your work at eye level it will help you achieve what you are looking for – don’t just do hair, dress hair,” says Vivienne.

Day one at the salon ended with a model call to cast for our photoshoot and we quickly learned one of our most valuable lessons – you can fix or supplement the hair, but if you have the wrong face, you have nothing. Every model was photographed at different angles and distances, using the pictures to analyze their full potential. The team was instructed to discuss and critique their analysis of the work and the model. ‘Are they the right height, do they have heavy eyelids is there room for dramatic makeup, are they too androgynous, could make a shape themselves, can they move, do they understand light, do they know how to convey emotion? Look at their portfolio for an array of emotions, poses, and themes. Do they look expensive? And pay close attention to the model’s experience. Lack of model experience will cost more in time than anything else.

The journey continued on Day Two with the process of developing the Collection Story. AG’s team printed out photos of each look, every set of wardrobe, each model’s headshot, and a hand drawing of each artist’s hair idea. They then began to mix and match each model with a photograph of each set of wardrobes to design which ‘look’ complimented which combination – over and over again. Then began the process of developing a story; taking pictures, analyzing shapes, and moving forward – taking inspirational pictures, printing out photographs of mannequin heads, and working over and over to see what wardrobe matched what inspirational hair shape with which model. Slowly but surely a story began to unfold right before our eyes. Brilliant, we thought! End of Day Two – exhausted and exhilarated, the team met and dined with BABAK and Vivienne. The butterflies began — no one slept a wink.

Day three began with organized chaos; seven models, seven artistic team members, two makeup artists, a videographer, a wardrobe stylist, three assistants, and one hotel room. The day unfolded with two decidedly different collection stories, the model prep, the Artistic Team, and the photoshoot all in the capable hands of Art Director Vivienne Mackinder and Photographer Babak along with his trusty but silent assistant Felix. And without sounding too cliché, these pictures spoke a thousand words.

When asked how the experience had impacted them, here is what the artistic team had to say…

“I couldn’t have ever imagined myself working alongside the brilliant Viv (Vivienne). It was an inspirational session and we are all completely exhausted yet exhilarated with the experience of a lifetime. We did learn a lot at this training session and most importantly we had a lot of fun.”

At AG we believe that the potential for greatness lies within all our employees. Through dedicated coaching and development, and by encouraging the entrepreneurial spirit that our organization was built on, we can unleash that greatness. With Vivienne’s training, AG’s Artists were able to tap into the substance behind every style and bring out their true brilliance.

Conducting business analysis is an important part of understanding the market and its inner workings. The application of analysis skills coupled with specific ways of researching a company allows an individual to evaluate and determine the success of a particular business. A variety of internal and external factors play an important role in shaping the market position and success of an organization, and gaining an ability to navigate amongst them is crucial to becoming more adept at business analysis. Within this review, the market environment of Kiara Sky and its surroundings will be conducted as a way to demonstrate capabilities relating to formulating and writing business strategy. First, a general company introduction and SWOT analysis will outline some of the major and simple facts about the business will be offered, which will be coupled with a PESTEL analysis. Subsequently, the external environment of the organization will also be analyzed, including some of its major opportunities and problems. Internal analysis will be conducted through the use of the VRIO framework, which will put into perspective the businesses’ ability to maintain competitive advantage. Following that, both the corporate strategy and business strategy are to be discussed, including approaches the company has to affairs such as internal organization and marketing. As a closing point, recommendations regarding further development will be provided as well.

Company Introduction

Kiara Sky is a business operating in the beauty and personal care market, particularly focused on the nail care niche. The company provides a variety of products for individual nail care and manicure, allowing people to style their nails without the need for professional services. The range of products includes a variety of nail polishes and gels, acrylic nails, and accessories. Additionally, nail kits and electronics are also being sold. Product lines are noted for their high-quality, ease of application and durability. The company additionally offers products for people working in the beauty industry and other nail work professionals. While not all of their items are available to the public, the majority of glosses and nail care items are made with the global audience in mind. The company is founded in the state of California, United States. While the general focus of the organization is on domestic production and distribution, Kiara Sky also sells their glosses internationally, offering shipment options on their website.

SWOT Analysis

Strengths

The major strengths of the business include its strong position in the beauty market and a well-defined niche. Despite the nail industry’s expansive reach and development, the amount of companies producing DIY and personal kits for nail care is relatively small, allowing Kiara Sky to become a strong competitor on the market. The products are especially client-centered, allowing people to express and bring out their own creativity and self-expression. All of the products are made cruelty-free, bringing Kiara Sky above its competition in regards to animal treatment. Furthermore, the business offers worldwide shipping, allowing it to expand its reach and garner a bigger following.

Weaknesses

One of the major drawbacks for the company is its price range. Many of the products offered by Kiara Nails are on the pricier side, which means that a large majority of clients might not be able to afford their products and services, as well as decreasing the number of regular buyers (Buddemeyer, 2021). Within the nail kits and drills market, alternatives of cheaper prices exist, putting Kiara Nails at risk of being outclassed.

Opportunities

Relying on the creativity and self-expression of its buyers, the business has an ability to grow and develop in various ways. Most importantly, its range of products can be further expanded, allowing further variance and experimentation for their clients. Additionally, the current press coverage and media attention surrounding the organization is low, meaning that it has limited exposure for an average person. Creating a bigger media presence and getting news coverage can be a good opportunity for growth.

Threats

The most important and pressing threat in the nail market is the varied competition present and actively emerging. With the current socio-economic status, more people are becoming interested in beauty products they can utilize themselves, creating an ideal set of circumstances for other nail companies to grow. Kiara Sky nails faces harsh competition in the recent years.

External Environment

PESTEL Analysis

Political

Situated in the US, Kiara Sky is in a favorable position to improve and expand its business. As the center of foreign trade and development, the United States of America offers its businesses relative freedom and political stability. With the recent elections and the recovery period after the COVID-19 pandemic, businesses are set in a climate that facilitates growth and profitability.

Economic

Economically, the company is currently in a favorable position for future development. While the COVID-19 pandemic has undoubtedly had a severe effect on the businesses and companies in the US, the current recovery period is signified by an increase in buying power from the customer base and better options for companies. Kiara Nails has an opportunity to take advantage of the customers with a higher-than-average buying power and a potential number of savings created during the pandemic. Furthermore, the slow opening of foreign trade also allows the company to expand its business outward, using international shipping programs.

Social

Socially, the diversification and globalization of the world are working in favor of Kiara Sky nail company. The global economy is becoming more saturated with new players, including big markets such as China and driving up profits. Other countries’ populations are accumulating disposable income, leading to more purchases and luxury spending. The demand and recognition of beauty products as an important part of life and a way of self expression is slowly becoming more apparent, making the products sold by the organization more valuable and viable in the global market. The more recent change in gender norms and other social constructs has also expanded the potential customer base of the brand, further increasing both exposure and profits. Women are becoming more open about wearing colorful nail extensions and taking good care of their appearance, while some men are managing to discover the world of the beauty industry. Additionally, the effects of the recent pandemic can also be connected with favorable outcomes for nail and makeup businesses. With the majority of people having to stay inside and worry about their health, the need for self-expression and beauty has long gone unfulfilled, creating a potential niche for Kiara Sky to grow even further. Customers will likely want to purchase products connected with enhancing their appearance to improve their self-perception and help handle the stress of the post-COVID-19 period. Additionally Kiara Sky’s focus on DIY kits allows them to perfectly integrate their products into today’s culture and social distancing norms.

Technological

Technologically, the level of sophistication and quality for both nail products and nail beauty kits has increased, improving both the safety and quality of Kiara Sky’s offerings. Nail Drill kits and other products offered by the company have been noted by reviewers to be of especially high-quality, providing a good mix between safety and comfort. Furthermore, the company continuously develops new products and approaches to nail care, as exemplified by their innovative line of color-changing glosses. In terms of safety and health cautions, the organization largely manages to contain the risks and protect their client base. Research has noted that the use and application of nail products is often connected with harmful and toxic substances for the human body, which becomes a significant barrier for the organization’s sales (Arora & Tosti, 2017). However, the technology of their production is gradually becoming more safe to use, meaning that the potential customer base expands as well (“Kiara Sky Nails”, n.d.).

Environmental

Environmentally, the brand positions itself as a supporter of green and cruelty- free initiatives, proclaiming its cruelty-free status on their website. Recently, it can be seen that environmentally-friendly initiatives are becoming the norm, and their inclusion is both expected and celebrated in companies. A move to focus on the cruelty-free aspect of Kiara Sky’s production gives the company positive publicity and recognition. With the general move towards environment protection, the stance taken by Kiara Nails becomes much more attractive to both potential customers and investors on the market. Additionally, the business operates in a sustainable manner, giving it the potential to outlive the competition and stay on the market for a prolonged time.

Legislative

Legally, the company has both a number of setbacks to overcome and potential opportunities to explore. As mentioned previously, the company produces items that are potentially harmful to their customers. The distribution and production of nail products can be legally disadvantageous in cases where people find their products to be unsafe to use. Notably, the website provides all of the necessary health warnings and safety insurances, increasing the relative safety of Kiara Sky produtcts (“Kiara Sky Nails”, n.d.). However, the business also exists within the legal framework established after the recent election of president Joe Biden (“The United States Government”, 2021). The recent documents published by the White House state that the president’s actions are aimed at supporting local and small businesses, while also giving them the financial support from the COVID-19 crisis. This outlook on business in the US allows Kiara Sky to develop as a business and prosper.

Five Forces Analysis

Competition in the Industry

The current competition in the nail industry is notably steep, with many companies working to get the attention and patronage from the growing customer pool. However, the increase in the number of players in the nail industry is not a large concern for Kiara Sky, as their business model operates at a premium level, with a large portion of their products being aimed at professional beauty workers and celebrities. With other nail businesses primarily aiming at the regular consumer niche, Kiara Sky has both the finances and talent necessary to be separate from the competition.

New Entrants into the Industry

As a growing field, the nail industry sees a variety of new companies coming in and attempting to set up their sales. In the recent years, the popularization and spread of social media marketing, more and more companies are emerging to try and take advantage of this lucrative niche. The widespread appearance of new businesses divides the client base and presents a considerable potential challenge to the company.

Power of Suppliers

The nail industry requires specific products and items to be manufactured, many of which have their own specialized suppliers and factories. In this vein, Kiara Sky is particularly dependent on their suppliers to produce and provide the necessary ingredients for their glosses, powers and dips, in addition to nail drills and other electronic devices.

Power of Customers

Kiara Sky is a considerably big and successful company, with much internet popularity and public recognition. The power of their customers, then, is particularly limited due to the size of the organization’s influence. Additionally, the ability of Kiara Sky to work with industry professionals gives the company an additional revenue safety net, giving them the capacity to not listen to their customers demands.

Threat of Substitutes

Substitution is an unlikely threat for Kiara Sky, as their products both offer great value to the customer and can be distinguished by their superior quality. In particular, the nail polish and gloss technology developed by the organization is said to be both beautiful and durable, making it the perfect choice for a nail enthusiast. While competition arises with the growth of the nail market, Kiara Sky is unlikely to face serious threats of substitution.

Internal Analysis

VRIO Analysis

As a brand and a company, Kiara Sky maintains a strong market position through a variety of tools, including a strong brand identity, high quality original products, originality and widespread market presence. By setting up and participating in international business, the organization garners a bigger audience and potentially gains an advantage over its competition. However, it should also be said that their approach towards creating an international audience is currently lacking, with the scarcity regarding distributors and shipment options. This creates an opportunity for competition to outperform Kiara Sky and will present a bigger threat as time passes. To successfully gain the full advantage of the international market, it may be necessary for the organization to expand on the ways in which it interacts with people outside of the United States region. Moving on to the company’s stronger sides, brand originality and identity, coupled with product value can certainly be noted. The distinct brand identity focusing on delivering customer value allows Kiara Sky to create brand loyalty, distinguish itself from the competition in the beauty market. The products created by the company are both high-quality and present original value to the customers, which makes it difficult for other organizations to imitate them (Buddemeyer, 2021). Overall, the organization has a solid competitive edge over other companies on the market, allowing them to keep constant profit and economic relevance.

Business Strategy

Currently, Kiara Sky is a working and successful business that operates both on a local and international scale. The company operates within the United States of America, using the online sphere to promote and establish their brand. The majority of sales come from Kiara Sky’s website, in addition to affiliates working with the company and selling their products. Internationally, the organization does not have a large presence; however, the option of shipping to other countries is available from their website. For advertising, the company relies primarily on product reviews, beauty experts and online influencers (Panos, 2020). As a brand specifically focused on appealing to a particular demographic of people doing their nails at home, the limited scope of advertising is functionally effective. In addition, beauty and health-related magazines such as the Cosmopolitan and the Vogue are used to establish credibility in the industry and secure promotion. The production of nail products and other beauty items is made cruelty free, which is a big selling point and advertising focus for the brand. As a brand in the public space, Kiara Sky mainly focuses on creating an image of a friendly and communicative company. The company also has a corporate Instagram page, where they use posts to engage audiences, promote their products and attract new customers to the brand. Notably, the page has more than 2 million followers, which is an especially large number indicating the business’ growth (“@kiaraskynails is on Instagram”, n.d.). Their advertising style, design choices and communication create a “bubbly” personality for the company, one that is effective at connecting with younger emerging audiences. The use of both brand positioning and influencer culture to promote products help Kiara Sky maintain their strong position in the beauty market (Luise, 2020). However, a number of professional competitors can also be identified, including such companies as Beyond Polish, Jinsoon, Live Love Polish and Rivel Nail (“Kiara Sky Professional Nails”, n.d.). While the mentioned companies share audiences and market position with Kiara Sky, their brand identity and image is wildly different, setting each of them apart as individual organizations. As a part of their engagement strategy, the company also works with nail and beauty industry professionals. A part of their product selection, namely gel polishes are sold exclusively to professional industry experts, which is used for effective promotion of the brand (Green, 2015). By associating their items with beauty experts, the brand easily manages to acquire good reputation in the field while also creating a sense of luxury for its customer-base.

Corporate Strategy

The information regarding Kiara Sky’s corporate organization and strategy is scarce, as the business working within a particularly niche field. Among the known information about its organization is the fact that the company was founded by a couple, Michael Duong and Ana Katrina Tan (Green, 2015). From the company’s website, one can understand that the brand primarily relies on professional connections and affiliated distributors for its sales (“Become a distributor: Kiara Sky”, n.d.). Using a line of third-party distributors, including such retail chains as Walmart is an effective way of cutting costs on physical locations and utility, while also allowing the company to build lasting connections to other brands.

Recommendations

Professionally, the organization’s main flaw is its relative lack of international purchasing options. Customers wanting to purchase high-quality nail product have to order directly from the Kiara Nail website, which can be challenging to navigate for non-English speakers and limits the potential reach of the organization. Partnership with international distributors and other companies willing to sell their products can be beneficial to increasing the audience of the organization and gaining further public recognition. Additionally, the process of establishing closer international relations can help Kiara Nail to connect with more specialists in the beauty industry, boosting sales for their professional line of items.

Another recommendation can come from the company’s sales strategy and approach towards their products. While the limited distribution of certain nail products can be seen as a way to create a sense of exclusivity, it also alienates a significant portion of the company’s audience. Products from the organization’s more professional line of work can be used as an effective tool in advertisement and promotion. Similar to the case discussed on the Refinery29 website, many individuals see professional products when visiting salons or watching movies and shows. The association between expensive lifestyle and high-quality Kiara Sky nail products has already been established in the public perception, and now the brand can use it for profit. By making their gel polishes accessible to the larger public, Kiara Sky has the capacity to capitalize on their good reputation and expand the potential range of customers.

In terms of public relations and community engagement, Kiara Sky already has a considerably successful following on Instagram, where their posts a log of engagement and comments on a consistent basis. However, the same cannot be said about their YouTube channel. As a company primarily situated in the beauty sector, it can be especially important to take advantage of many visual platforms, especially those hosting beauty gurus and influencers. YouTube is currently regarded as one of the most well-established video sharing platforms, making it ideal for both showcasing and advertising Kiara Sky products to the public. Focusing on promoting and growing the company’s YouTube channel can serve as a good long-term investment and a social engagement platform. In particular, it can also be used to help clients better understand that safety procedures and the necessary steps for using their gel tips/nail drills/drill kits at home.

References

@kiaraskynails is on Instagram. (n.d.).

Arora, H., & Tosti, A. (2017). Safety and efficacy of nail products. Cosmetics, 4(3), 24.

Become a distributor: Kiara Sky. Kiara Sky Professional Nails. (n.d.).

Become an influencer: Kiara Sky. Kiara Sky Professional Nails. (n.d.).

Buddemeyer, R. (2021). Time to level-up your manicures with these 9 nail drills. Cosmopolitan.

Green, L. (2015). The nail-polish brand “Empire’s” manicurist swears by. Ericka Johnson Nails Empire Fox Interview.

Kiara Sky Nails. (n.d.).What ingredients are in the KS Gelly Tips Essentials?KS FAQ.

Kiara Sky Professional Nails. PipeCandy. (n.d.). Web.

Luise, M. (2020). The disruption of the Beauty Industry: An Investigation of social media factors and dynamics affecting perceived brand image and the consumer decision journey. LUISSearch Additions.

Panos, M. (2020). Farewell, gel nails – I’m in a committed relationship with my home Dip Kit. POPSUGAR Beauty.

The United States Government. (2021). Fact sheet: President Biden’s new executive actions deliver economic relief for American families and businesses amid the COVID-19 crises. The White House.