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The beauty and skin care industry of Australia is growing with the rapid speed. The situational analysis is the most prominent aspect to study the current market scenario. The situation analysis is identified by studying the size, structure and the growth of the organization. The structure and the size of the beauty or the skin care is well- defined and also contains lot of customers. The categorization of the customer can be done on the basis of the product used by them. The beauty products are mostly admired by the females, so the categorization of the products is mainly done for them. The different products which are offered by the beauty and skin care industry are the anti-ageing cream, skin care cream, fairness cream and many other products related to the personal care. The major competitors of the organization are the body shop, Garnier and other beauty products propounded on the local level.
The direct selling Association of Australia (DSAA) is helpful in defining the suitable identification of the industry. The situation analysis is managed on the 5C’s. The diagram of the 5C is shown below which is helpful in defining the suitable situation analysis as per the requirement. According to the Euro monitor studies, the cross- comparable studies are defined which are helpful in managing the market share, data share and the contribution of the industry trends of the company in the customer process. The 5C is considered as the extended version of the 3C to identify the current situation of the organization (Euromonitor Team, 2016).
The first preference is given to the company in which the selection of the company is done as per the defined topic. The beauty and the skin is the topic selected for the discussion. The company mission and the objectives are considered as the key to success. Most of the Beauty and skin care companies have the mission to provide the most suitable facilities to their customers and the vision of the companies is to make the reliability of the product on the large scale. In fact, the company also used the technological aspects for the process of improvement. For an example, the Garnier and the Body shop never compromise with the quality of the product, while serving the customers.
The second aspect is related to the customers who will help in reflecting the situation analysis. The consumers are the main sources of collecting the revenue for the organization. So, it is essential that all the products are prepared according to the demand of the customers and according to the season. In fact, the mode of publicity and advertising should also be strong, so that maximum customers will attract towards the products offered by the organization. Various companies also provide opportunities to the customers, so that they may provide the views and ideas on the particular product or launching of the new product in the market (Australia, 2013).
The competitors are also essential to be found out. By doing this, the identification of the external environment can be done and the products are also manufactured according to the competitive environment. For example, the L’Oreal Australia is the most likely product purchase by the customers, but at the same time, to cut the cost of the product, the other local competitors are introducing the same product in the market with the fewer prices. This gives the strong competition to the existing product. In this scenario, L’Oreal also introduces different offers to exist in the market competition. The body shop possesses the wide range of the personal care products and self-grooming products. But, at the same time, the products range are very high and sometime unaffordable too in comparison to the L’ Oreal.
The categorization of the collaborators will be done in the form of the distributors, Suppliers and Alliances. The success of the products totally depends upon the distributors and suppliers. The promotional aspects and the management of the supply chain for the distribution of the products are totally maintained by them only. With the help of the suitable alliance, the sale of the product will be increased. For an example, in the small towns or the suburbs, these products are sold through the small alliance and the local customers also admired these products on the large scale.
Last option is the climatic aspects on which the selling and purchasing of the product totally depend. The climatic aspects are helpful in showing the conditions on which the product will be sold or purchased. For the further description, the macro environmental factors are defined below.
The macro environmental factors are defined with the help of the PEST analysis which is helpful in depicting the major aspects through which the selling and purchasing of the existing products may become possible.
| Political or legal The Political or the legal factors influence a lot to the organization. The changing policies related to trade and the other aspects are not acceptable. The legal formalities don’t get completed easily. For this, the organization has to plan various processes. | Economic The economic aspects are essential to be identified because by this, the current scenario of the market can be identified easily. Other than this, the liability of the product can also be understood. |
| Social The social aspect is that for which the organization is also contributing in the major CSR activities. By this, the image of the product improves. The brand ambassador also helps in promoting the products | Technical The formation of the promotional aspects and the wide use of the media and advertisement will be helpful in promoting the product on the wide level (Ukessays team, 2015). |
By considering the macro environmental factors, the study of the process can become easier and more approachable.
The market segmentation is considered as the most suitable aspect to promote the product (i.e. Beauty and Skin care). By doing the segmentation, the actual scenario of the market is identified and the requirement related to the customers can also be identified easily. The two methods are identified for researching or segmenting the market. These are primary and secondary methods of the segmentation. The brief description of both the aspects in reference to the products is defined below.
The primary level of segmentation mainly focuses on those customers, who want to purchase the products in an appropriate manner. By using the primary method, the decision making process is getting easier for the buyers. The primary method of identification is helpful to identify the level and purchasing power of the customers, who mostly like the beauty care products, for example the young girls mainly prefer the face and the makeup accessories for the grooming. Other than this, the secondary method of segmentation and decision making is helpful in making the selection from the remaining population.
The consumer buying decision process is also helpful in taking the suitable decision for the consumers to purchase the products. For example, in reference to the beauty and skin care industry, it is quite difficult for the consumers to take the suitable decisions about the products and its quality (Serlo, 2013). For taking the right decisions and for buying the suitable products, there are various steps that are being identified. They are defined below: -
By following all these steps, the consumer decisions can become possible. In fact, these processes may also help in the consumer auditing process (Perreau, 2015).
The consumer auditing is the process which is helpful in identifying the current needs of the customers in the market. The consumer auditing can be done on the initial level as well as in between the execution of the process. By this, the suitable analysis of the aspects can be done. The consumer auditing can be done both on the primary and the secondary level. On the primary level, both the internal and the external analysis can be done. In the internal analysis, the SWOT analysis, PEST analysis and the five force analysis can be done. For the external level, the buyers decisions, the target markets, the suitable marketing strategy are being identified. By this, the importance of the primary level of segmentation can be done on the initial level. To pursue the consumer demands and their requirement, the secondary methods can also be identified. These methods are helpful in identifying the changing needs of the customers appropriately (Heckes, 2010).
The internal aspects like the current market position, the financial aspects of the consumers, changing prices and the other factors affect the purchasing behavior of the customers. Simultaneously, the political, legal and the change in the external environment affect the purchasing aspects of the buyers’. For an example, while purchasing the beauty care and the skin care products, the value of the products matters a lot. The high cost products can be consumed by the high class customers and the affordable products can be purchased by middle class customers.
It is defined in the discussion above that the primary and secondary segmentation is helpful in providing the assistance to the customers, so that they may decide about the selection of the product as per their requirement. To promote the segmentation, the different methods related to the segmentation may be used which are helpful in adapting the different strategy as per the consumers. As per the identification of the market, there are four market segmentation processes which are identified on the wide level. The segmentation is defined with the help of the diagram below: -
According to the diagram, the demographic features are considered as the most important features and the segmentation can be done on the basis of the age, size, population, gender, family size and family income, etc. The purchasing of the beauty products and the introduction of the beauty stores can be done on the demographic aspects (Bhasin, 2016). Other than this, the psychographic aspects related to the lifestyles and the living standards are preferred by the people. The consumer buying behavior is also identified in the psychographic features related to the purchase of the products. Similarly, the behavioral segmentation will be helpful in identifying he aspects related to the behavior of the consumer while purchasing the products and the geographic aspects are helpful in identifying the purchasing power of the customers on the basis of the geographic distribution.
The reason for doing the segmentation for the beauty or skin care industry is the presence of the diversity in the purchasing behavior of the customers. The customers are categorized into various types and purchase the products as per their purchasing capacity. The segmentation is also identified in the primary or the secondary market because by this, the suitable categorization of the purchasing customers can be done and then, the varieties of products can be prepared simultaneously.
The three demographic elements which are included in the defining the product selection are the gender, age and the income of the individual. By these three criteria’s, it becomes easier to define the actual purchasing status of the customers. For an example, for different age group and for different income type, the beauty or skin care organization introduces the wide range of products available in smaller packs. These small packs can be easily purchased by the lower income earning person too.
According to the behavioral segmentation, the two variables named as the decision making and the usage can be taken into consideration. These variables are selected because the consumer can purchase them as per the requirement and can be used easily. The lifestyles and the criteria to select the products are the variables which are identified as the psychographic features . By these features, the products can be purchased by the way of living of the consumers and the purchasing capacity they possess. For the geographical aspects, the variables which are selected relate to the location of the buyers and the purchasing capacity of the buyers. By this, the consumers can able to purchase those beauty or skin care products which suited according to the environment. There are different strategies propounded for purchasing and selling of the products on the wider level.
The positioning mapping is the aspect by which the current aspects related to the beauty care and skin are defined by showing the below diagram.
The competitive advantage possesses by the organization depends on the availability of the products, which attracts the customers. The different type of services provided by the organization is available in variety. As the paragraphs above shows that the beauty or skin care industry is offering the various products, so by providing the various offers and the opportunities to the customers, the organization can able to achieve the competitive advantages (D’Aveni, 2007).
The above paragraphs are helpful in defining the suitable market research and the segmentation related to the particular beauty or the skin. The L’Oreal Australia is considered as the top most organization which is helpful in manufacturing the suitable products as per the requirement of the customers. In fact, the different variables are also helpful in providing the suitable aspect related to the selling and purchasing of the products. By identifying the various aspects, it is quite clear that the future of the beauty and skin care can be grown and developed in the suitable manner, if the appropriate strategy is defined in the suitable way. The suitable strategic planning aspects are helpful in expanding the international or the global market on the widest scale. For making the future aspects successful, it is essential to focus on the competitive advantages. The products should be designed and manufactured in such a manner, so that the maximum opportunities for the growth can be visible and the most advanced products can be manufactured for the customers. By this, the product can be expanded in the well- defined manner.
Australia, D. s. a. o., 2013. Beauty report from Australia: DSAA, Available at: http://www.cosmoprof.com/wp-content/uploads/2013/11/www.cosmoprof.com/AUSTRALIA_Beauty-Report.pdf
Bhasin, H., 2016. 4 types of Market segmentation and how to segment with them?. 4 types of Market segmentation and how to segment with them?, 12 August.
D’Aveni, R. A., 2007. Mapping Your Competitive Position. Mapping Your Competitive Position, November.
Euromonitor Team, 2016. Beauty and personal care. [Online]
Available at: http://www.euromonitor.com/beauty-and-personal-care
Heckes, D., 2010. Identifying primary and secondary target markets. Identifying primary and secondary target markets, 05 April.
Perreau, F., 2015. The 5 stages of Consumer Buying Decision Process. The 5 stages of Consumer Buying Decision Process, October.
Serlo, M. D., 2013. The Importance of the Consumer Compliance Internal Audit Function. The Importance of the Consumer Compliance Internal Audit Function.
Team, L., 2016. Perceptual Mapping/ Positioning Map. Market Positioning, Available at: http://www.learnmarketing.net/perceptualmaps.htm
Ukessays team, 2015. A PESTEL analysis of the cosmetics industry. A PESTEL analysis of the cosmetics industry, 23 March.
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