...1. Introduction 1.1 Cosmetic Industry Review The cosmetic industry has developed rather rapidly since these early days of limited products as the quest for beauty has become ever more important. In 2000 the cosmetic industry represented a $166.2 billion market worldwide. Between 1994 and 2000, the global cosmetics industry grew at a rate of 11.5 per cent (Euromonitor, 2001). In 2001, Cosmetic products constituted roughly 18% of total global market for Cosmetics and Toiletries where makeup solely contributed $22.5 billion (ScienceDirect, 2005). The cosmetic industry is very competitive with the presence of those largest global players. They are L’Oreal, Unilever, Procter & Gamble, Johnson & Johnson, Avon, Shiseido, Estee Lauder, Revlon, Mary Kay and Max Factor. (Drug & Cosmetic Industry, 2000). 2.0 Behaviour analysis 2.1 Internal Consumers may choose products that can be used to express consumer personality, social status or to fulfil their internal psychological needs. Everybody is motivated by needs and wants to attain their desired goals. (Schiffman, Bednall, O’Cass, Paladino & Kanuk, 2005). Needs are defined as the basic forces that motivate a person to do something and wants are the needs that are learned during a person’s life (Weber & de Villebonne, 2002). Meeting consumer needs is the fundamental goal of a marketer. Cosmetic products are generally marketed to appeal to three basic types of consumer needs; functional, social and...
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...Industry Assessment - Part 1 Cosmetics Industry Riley Bell Alexandru Colita Nicholas Gonzalez Derek Morin Yuan (Amy) Zhang MGMT 390: Industry Analysis Projects Norine Webster University of British Columbia Okanagan February 14th, 2014 Table of Contents 1. Executive Summary……………………………………………………………………….2 2. Industry Description………………………………………....…………………………….3 3. Value Chain……………………………...………………………………………………..5 4. Relevant Features/Factors for the Industry ……………………………………………….7 5. Porter’s Five Forces ………………………………………………………………………9 6.1. Competitors and Level of Rivalry ……………………………………………………………………...9 6.2. Suppliers and Relative Power…………………………………………………………………………10 6.3. Buyers and Relative Power …………………………………………………………………………...10 6.4. Possible New Entrants, Barriers to Enter and Exit, Threat of Entry ………………………………….11 5.5 Substitute Products, Barriers to Switching, and Threat of Substitutes………………………………...12 6. Financial Ratios………………………………………………………………………….12 7. STEEP Analysis………………………………………………………………………….16 7.1. Social/Cultural Factors…………………………………………………………………………………16 7.2. Technological Factors…………………………………………………………………………………..18 7.3. Economic Factors………………………………………………………………………………………19 7.4. Environmental Factors………………………………………………………………………………….20 7.5. Political Factors………………………………………………………………………………………...20 8. Significant Drivers……………………………………………………………………….20 9. Key Success Factors……………………………………………………………………...
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...BUSINESS ENVIRONMENT Understanding the environment within which the business has to operate is very important for running a business unit successfully at any place. Because, the environmental factors influence almost every aspect of business, be it its nature, its location, the prices of products, the distribution system, or the personnel policies. Hence it is important to learn about the various components of the business environment, which consists of the economic aspect, the socio-cultural aspects, the political framework, the legal aspects and the technological aspects etc. In this chapter, we shall learn about the concept of business environment, its nature and significance and the various components of the environment. In addition, we shall also acquaint ourselves with the concept of social responsibility of business and business ethics. OBJECTIVES After studying this lesson, you will be able to: ? explain the meaning of business environment; ? identify the features of business environment; ? describe the importance and types of business environment; ? describe the recent developments in Indian Economy that have greatly influenced the working of business units in India; ? explain the concept of social responsibility of business; ? state the social responsibility of business towards different interest groups; and ? explain the concept of business ethics. 3.1 MEANING OF BUSINESS ENVIRONMENT As stated earlier, the success of every business depends...
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...cosmeticelor The cosmetic industry is one of which products tend to be countercyclical. Demand for such products normally remains constant and unaffected by economic distress. The color cosmetics are predicted to see a slowdown in volume demand. A growing trend in the cosmetic industry is the introduction of ‘green’ products. More than one in seven (16%) of global beauty products launched in 2008 were certified organic, ethical or natural. There are concerns that the global economic climate will stifle new product development, innovation and sustainability programs in 2009. An economic slowdown usually curbs companies from investing in research and development and it is that research that has brought forth a wealth of green cosmetics. For example, retailers such as Wal-Mart are increasingly requiring more ecofriendly supply chain. There are forecasts that consumers are unlikely to give up their commitments to organic products just to save a few pennies. 68% of consumers will remain loyal to a company that has a social and environmental commitment. Many consumers are now ‘voting with dollars’ for organic products and supporting brands that support values similar to their own. Economic factors mainly affect the purchasing power of customers. The more customer demand for the product the more profit to the organization, at the same time if there is no customers demand it’s going to affect the organization in a negative manner. So economic factors are very important external factors and affect...
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...Table of Contents Table of Contents Introduction: Company Background: External Analysis 3.1 Technological Factors: 3.2 Legal Factors: 3.3 Economic Factors: 3.4 Social Factor: 5 Force of Analysis 4.1 Threat of new entrants: 4.2 Threat of substitutes: 4.3 Suppliers: 4.4 Customers: 4.5 Intensity of rivalry: Internal Environment Analysis: SWOT Analysis: Recommendations: Conclusion: Reference List: Title: Valiram Group (Luxury Venture) Introduction: My scope of this essay is to let you know more about this company. What they are doing and how they operate as a team. Company Background: The Valiram Group was established in Kuala Lumpur, Malaysia in 1935, originally specializing in the textile trade. Today, the Valiram Group is Southeast Asia's leading luxury goods and specialist retailer with presence in Malaysia, Singapore, Indonesia, Australia and China, operating over 100 stores, representing in excess of 150 brands across various categories including fashion and accessories, timepieces and jewellery, leather goods, fragrance and cosmetics and confectionary. External Analysis 3.1 Technological Factors: Technology performs an increasingly important part in the retail store industry. Many consumers and some businesses buy on the internet. Companies that have yet to jump on this trend face lower revenue, creating financial problems. Large suppliers understand the advantages of on the internet accessibility. Not only does it provide...
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...brothers Charles (Joseph Revson and Charles Lachmann) with a $300 investment from nail products to beauty products. In 1937, Revlon successful started selling products in department stores and drug stores. Revlon was taken public in 1996 traded on the New York Stock Exchange. Today, Revlon is the global company which offering the products over 100 countries and products focus on skin care, cosmetics, personal care, fragrance and professional products. In this case study, the strategic management is focusing on the following: Identify the firm’s vision, mission, objectives and strategies Develop the statement of vision and mission of the firm Identify external opportunities and threats Construct Competitive Profile Matrix (CPM) Construct External Factor Evaluation (EPE) Identify internal strengths and weakness Construct Internal Factor Evaluation Prepare Strengths-Weakness-Opportunies-Threats Matrix (SWOT), Strategic Position and Action Evaluation Matrix (SPACE), Internal-External Matrix (IE), Grand Strategy Matrix, Quantitative Strategic Planning Matrix (QSPM) with advantages and disadvantages of alternative strategies. Should Revlon concentrate its efforts on international market, given the low value of the dollar and competitive pressure? Which countries should Revlon focus on? Should Revlon diversify its operations or develop joint ventures with other...
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...proved that the country of origin of a product was one of the two or three most important attributes in preference evaluation. A comprehensive review of the literature regarding the effect of country of origin on consumer perceptions of products and services, COO in France and France Cosmetics Industry have also been handled. In this study, it has been indicated that customer perceptions differ significantly on the basis of product/service and country of origin. The country of origin may be an important element in the perceptions of consumers about the products and services especially where little other information is known. However, the question of how much influence the country of origin provides in product and service evaluations remains unclear. Keywords: Country of origin, cultural values, brand, consumer perceptions. 1 SECTION 1-COUNTRY OF ORIGIN EFFECT Impact of Country of Origin on International Marketing The impact of country of origin (COO) on the consumer's perception of products has been one of the most widely studied areas of international marketing. (Samiee, 1994; Peterson and Jolibert, 1995, Leonidou et al, 1999). Increasing globalization of today's business environment has also renewed the interest in the effect of a product's country of origin on consumer decision making.(Papadopoulos and). Country-of-origin is a concept which states that people constitutes attitudes and believes shaping the perceptions to products from specific countries and this...
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...Case scenarios: Ansoff product–market matrix: Task 1: Australian Leisure Resorts (ALR) - Core business, selling rooms and holidays to individual consumer groups in Australia. - Key success factor: Keep occupancy rates high Issue: Brown (Founder of ALR) is developing new software for his hotel chains / resorts that will replace the current manual recording / booking system. This will provide real time booking information to potential customers, reducing the booking confusion currently associated with the manual system. Options floated to Brown: 1. Develop the software for use in the company’s currently owned hotels and Resorts. This strategic option can be classified as Market penetration (Quadrant 1). The key success factor for ALR is to keep occupancy rates high. Currently, due to the manual recording system employed, up to date hotel room booking information is not readily available to consumers. This option fits into quadrant 1 as it will increase the amount / volume of potential hotel bookings with existing customers in ALR’s existing market, as more meaningful booking information is made available to consumers (the information is “live” and in real time showing consumers what rooms in each hotel are available). This option does not fit Product development (Quadrant 2) as ALR is not introducing new products or services to existing markets. The organisations core business - hotel / resort room bookings remains unchanged. The change is...
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...Topic 6 – Change Change has recently become a very important topic as companies have gone through countless restructurings in an attempt to respond to new competitive pressures in the business environment. Change is the movement of a company away from its present state toward some desired future state to increase its competitive advantage. One of the principal reasons that companies fail is their inability to change and adapt to a new competitive environment because of organizational inertia—a force that makes companies resist change. For example, the Icarus paradox suggests that companies continue to rely on the skills and capabilities that made them successful long after these capabilities cease to match the new competitive environment. Inertia also results from power struggles among managers and their vying for control over resources. Forces that drive change: The common denominator in today’s business environment is change. The areas in which pressures for change are most powerful are people, technology, information processing and communication, and competition. A. People Some population-related pressures for change include the increasing numbers of senior citizens and people born after 1960. The large number of senior citizens is affecting part-time employment practices, the marketing of everything from hamburgers to packaged tours to the Orient, and service areas such as health care, recreation, and finance. B. Technology. ...
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...ALLIANCE BOOTS PLC: INTRODUCTIION: Alliance Boots is a leading international pharmacy-led health and beauty group serving a wide range of products and services to customers over 100 years in the UK. We are trying to identify how the Boots works internally and externally to reach its goal. We are also trying to find out how the Boots motivates its employees to be productive. We will also discuss its organizational structure and design to communicate each other function of the organization. We will discuss its appraisal system and organizational record keeping. We will also find out about its brand image to the stakeholder. Customers are at the heart of their business and they are devoted to providing extraordinary customers and patients care by offering innovative products ‘Only at Boots’ with exceptional values. People are their strength and tell us that Boots is a excellent place to work. They always aim to be the employers of choice by attracting and retaining the most talented and passionate people. BACK GROUND OF THE COMPANY: Boots had established its roots in the mid-19th century by John Boot, an agricultural worker, at Nottingham, in the UK. He opened a small herbalist store on Goose Gate in 1849. After John’s death in 1860, his widow, Mary, continued trading, with the help of her young son, Jesse, who became a full partner when he was 21. The store continued to thrive. In 1877, Jesse took sole control of the Boots. In 1920, he sold Boots to the United Drug...
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...them this task would have never been a complete one or a successful report if it was not for their help and advices. Executive summary Globalization is a process of interaction and integration among companies and government of different nations. This is a process driven by international trade and investment and aided by information technology. And also it effects on the environment, on culture, on political system, on economic development and prosperity, and in societies around the world. The aim of this report is to provide finding and on Malaysian economy in a nutshell with regard to beauty and cosmetic products, identify the current trends and changes in the industry. And also analyze the cultural differences and the impact on Globalization, analyzed the Impact of multinational brands, local brands in the industry and future of the industry. Identify the direction and a coherent, overall plan is particularly important to a global Companies, like Ceylon spa which produces many different product lines worldwide. This report will provide holistic view of the findings and analyzing the environment and the basic structure of Malaysia. The PESTLE analysis of Malaysia identified different impacts on the country’s...
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...more than 100 employees. CRH exists in a very competitive environment; prices between competitors are very similar and loyalty is built with customers through always delivering expectations on time. Sony Corporation is based in Japan and is a conglomerate business with interests and products in many different fields. CRH and Sony both have very different traditions and management systems which results in both companies having different strategies and ethics which will be explored in detail throughout this essay. In 2009, CRH released results highlighting their second successive annual reduction in overall income. The main reason for the considerable drop in income was because of the current state of the economy at the time: suffering from the worst worldwide recession since the 1930s. There were other external factors associated with this such as the social aspect where people were more hesitant to spend money due to the price hikes almost everywhere. This didn’t just only affect CRH, Sony also fell victim to the recession - recording a loss of £720 million for the year ending March 2009. This loss was unexpected for Sony - considering it was only their second loss since the late 1950s. In light of the recession, both companies were affected and income was considerably lowering with expectations of the following year to be worse than the current year. Furthermore, other factors have also played a small part in affecting both CRH and Sony financially such as exchange rates: which...
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...World Journal of Social Sciences Vol. 1. No. 3. July 2011. Pp. 1-15 Cosmetic Accounting Practices in Developing Countries: Bangladesh Perspectives Asif Mahbub Karim 1 , Rehana Fowzia 2 and Md. Mamunur Rashid Cosmetic accounting is a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business. This study expresses the views of External Auditors, Internal Auditors, and the Accountants on causes, techniques, effects and solution for Cosmetic Accounting. To achieve these purposes total 108 respondents have been surveyed. Findings from descriptive statistics reveal that the perceptions of three categories respondents are different about the various aspects of cosmetic accounting .It also shows the opinions of internal auditors, external auditors and accountants raised some concerns as to whether these circumstances will last. 3 Field of Research: Accounting. Keywords: Cosmetic Accounting, Accountants. External Auditor, Internal Auditor, 1. Introduction Creative accounting is referred to also as income smoothing, earnings management, earnings smoothing, financial engineering and cosmetic accounting. The preferred term in the USA, and consequently in most of the literature on the subject is „earnings management‟, but in Europe the preferred term is „creative accounting‟ and so this is the term that will be used in this paper. It should be recognized that some accounting manipulation involves...
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...Shyam Mallan (77140430) Christian Andrea (77142477) Prakash Pothina (77144112) Shrey Sugla (77144256) CONTENTS INTRODUCTION 4 LITERATURE REVIEW 4 L'ORÉAL MARKETING PLAN AND CONSUMER BEHAVIOUR 6 Cultural factors: 6 Social factors 7 Psychological factors 8 CONCLUSION 10 APPDENDICES 10 REFERENCES 11 REPORT ON THE EFFECTS OF CONSUMER BEHAVIOUR ON L'ORÉAL MARKETING PLANS ABSTRACT: Consumer behaviour strongly affect the consumer buying process, hence marketers always want to know what is actually happening inside customer's mind in order to provide additional values of products to users to satisfy their needs and wants. However, it is mainly influenced by three key factors - cultural factors, social factors and psychological factors - that are vital conditions for every marketing strategy to be considered before launching in the market. In cosmetic industry, although L'Oréal is the leader of the market, it is necessarily for the company to concern these factors in its marketing plan, so as to gain the market shares and remain its position above rivals such as P&G and Unilever. The report will try to find out the role of consumer behaviour in marketing strategy planning and discover the process of how L'Oreal adapt the three factors to their marketing plans order to achieve success. INTRODUCTION The term consumer behaviour is defined as "the study of how individuals, groups and organisations select, buy, use and dispose of goods, ideas or experiences...
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...World Journal of Social Sciences Vol. 1. No. 3. July 2011. Pp. 1-15 Cosmetic Accounting Practices in Developing Countries: Bangladesh Perspectives Asif Mahbub Karim 1 , Rehana Fowzia 2 and Md. Mamunur Rashid Cosmetic accounting is a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business. This study expresses the views of External Auditors, Internal Auditors, and the Accountants on causes, techniques, effects and solution for Cosmetic Accounting. To achieve these purposes total 108 respondents have been surveyed. Findings from descriptive statistics reveal that the perceptions of three categories respondents are different about the various aspects of cosmetic accounting .It also shows the opinions of internal auditors, external auditors and accountants raised some concerns as to whether these circumstances will last. 3 Field of Research: Accounting. Keywords: Cosmetic Accounting, Accountants. External Auditor, Internal Auditor, 1. Introduction Creative accounting is referred to also as income smoothing, earnings management, earnings smoothing, financial engineering and cosmetic accounting. The preferred term in the USA, and consequently in most of the literature on the subject is „earnings management‟, but in Europe the preferred term is „creative accounting‟ and so this is the term that will be used in this paper. It should be recognized that some accounting manipulation involves...
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