Jurlique Marketing Strategy - Case Study Example

Executive Summary Jurlique objective of targeting the prospective customers and suitably designing the services as per their requirements has been indeed achieved successfully. This report highlights the manner in which Jurlique by proper market segmentation has been able to target the correct segment of the market i.e. primarily the upper middle class segment. Jurlique in this report also endeavour to go global by identifying market segments across different countries. Countries like India, China and Brazil ranks top among the major identified market segments amongst which, India being a developing country suits the most with greater business opportunities and rapid growth facilities. This has helped to identify the franchise model which Jurlique looks towards using so as to expand its market share and have greater growth opportunities. This report also highlights the major challenges that Jurlique faces and the manner to tackle those challenges and improve its reputation and capture a larger market share with higher profitability. Table of Contents Introduction 3 Background Information 3 Market Segment 4 Target Market 4 PESTEL Analysis 5 Future Expansion Destinations 8 Most prevalent Choice for business 8 Challenges to be dealt with 9 Market Entry Strategy 9 Recommendations 10 Conclusion 10 References 11 Introduction Enlarging market share by going global with higher profitability has been eyed by most of the businesses all around the world and finding ways to sustain business on a long term basis has been the need of the hour. Jurlique has been exactly doing the same and aiming at higher revenue growth and expansion of its business. This report highlights the potential customers and the targeted audience looked upon by Jurlique. The report shows how Jurlique looks to go global and expand its business and increase its market share and also presents the manner in which the company looks to expand its market by having business overseas and identifying the potential market and its prospective customer. The report also highlights the most appropriate route of entering the targeted market and the challenges Jurlique might face and the remedial measures to overcome those challenges and ensure higher growth and profitability with better reputation in the market. Background Information Jurlique has emerged as one of the renowned and well known company in Australia in skin care products. It started its life in the year 1985 and was originally created as a niche natural skin care range (Jeurlique, 2011). Jurlique emerged as one of the tough competitors in the field of skin care products. It is now Australia’s leading skin care brands and its products range from natural cosmetics to skin care including perfumes etc. Jurlique with high quality products and high level of customer satisfaction seriously emerges as a threat to other skin care companies all round the globe (Jeurlique, 2011) Market Segment Jurlique has aimed at identifying potential market segments on the basis of growth prospective of its various ranges of quality products. The very future of a business depends on higher customer satisfaction which in turn depends on targeting the correct market segment and converting the potential customers into real customers (Bangs, 2002). Jurlique market segmentation based on various parameters has been presented in the following table as shown below. Geographic Developing countries. Demographics The upper middle class of the society having a significant impact on the life style of the society Social Economic status Aimed at the upper middle segment of the society where demand for daily skin care products is high. Psychographics Customer satisfaction with high quality and continuous improvements in it products based on suggestions of its customers. Thus proper segmentation of its market by Jurlique has been rightly achieved which would definitely help Jurlique in developing appropriate marketing strategies and enhance its market share and growth prospective. Target Market Jurlique primary focus of people belonging to upper middle has been correctly explored by it. Quality products has also been launched for the lower class people of the society as well as the upper strata of the customer pyramid. Major range of products has been launched for the upper middle class of people due to growing demand of its products in this strata of the customer pyramid, as people belonging to this class spends more on leisure activities and life style is always on revolving stage demanding new products with high quality and higher level of customer satisfaction Jurlique has been rightly meeting their demands and adopting itself to the fast changing environmental conditions (Ireland, Hoskisson and Hitt, 2007). This helps to identify the target market as Customer Aimed at Age Classification of purchaser Purchaser requirements Women 8-50 Both male and female domestically as well as globally Having a high purchasing power and demand for high quality skin care products Households 8-50 Married and single households Having a high purchasing power and demand for high quality skin care products The above enumerated table thus shows Jurlique major emphasis on targeting the upper middle class of the customer pyramid and targeting the most appropriate strata and developing high quality products as per the requirements of its customers, thus ensuring a larger market growth and higher revenue for the company (Bangs, 2002). PESTEL Analysis To understand the effect of various parameters on Jurlique, a PESTEL Analysis has been conducted as follows along with its effects and outcomes which have been enumerated as below (Coughlan, Stern, & Ansary, 2006). Political The political scenario plays an important role in the success of any business. Jurlique attempts to go global by targeting countries like India China and Brazil having a democratic government is a major concern for the company, political instability and closure of foreign trade is an important aspect to look into and proper market survey with key investment decisions is to be studied in details before starting any business. Political scenario thus plays a pivotal role in the growth and expansion of a business. Jurlique thus needs to meet the political standards set by the targeted market and follow a flexible route to adapt itself with the changing needs and ensure a success in its endeavour to go global, special care has to be taken to meet the quality standards of the products as per the requirements of the different countries (Coughlan, Stern, & Ansary, 2006). Economic The latest buzzword in todays’ economic upfront has been recession. Recession has hit almost every nation round the globe and has eroded much well established business leading to closure of many companies. Purchasing power of people has fallen down drastically affecting every sector of business. Jurlique decision to go global need to be studied in details and its outcomes should be judged minutely. Jurlique being no exception has also been hit by recession. Thus economic scenario thus plays a pivotal role in the success or failure of Jurlique (Coughlan, Stern, & Ansary, 2006). Social Social perspective plays an important role in market segmentation. Jurlique targeted audience being the upper middle class of the society is indeed a larger section of the customer pyramid. With change in life style and standard of living rising day by day, demand for daily skin care products has rise significantly in the recent past. Beauty products is no longer just confined to females but the demand for the product has equally grown among the males too. This has resulted in a drastic changeover with more changes in taste and preferences of the customers and thereby increasing the market share of Jurlique (Coughlan, Stern, & Ansary, 2006). Technological In this rapid changing environment technological parameter plays an important role in the success of the business. Developing products as per the requirements of customers needs and use of the latest and best technology is indeed of prime significance. Technological upgrdation thus is a major challenge for Jurlique to ensure quality products (Czinkota & Ronkainen, 2004). Environmental Jurlique has been achieving this factor quite nicely and developing products keeping in mind the environmental factors affecting its products. This has helped them to develop with are eco friendly and does less harm on the human body (Czinkota & Ronkainen, 2004). Legal Abiding by the rules and regulations set up by government for different sectors has been rightly followed by Jurlique. Jurlique has ensured that it has obtained the required licenses and abides itself by the various rules thus avoiding any legal issues in the smooth functioning of its business. Standards set up by different quality organizations have been well met by Jurlique. Future Expansion Destinations Jurlique can definitely go global by increasing its market share and developing business overseas. To ensure success it definitely need to identify its potential customers and convert them into real by targeting the correct segment of people in the society. Jurliques endeavour to target markets of developing countries like India, China and Brazil shall provide it with opportunity to grow its business and emerge as a well reputed multinational brand posing a serious threat to its competitors. Further the prime reason of choosing these destinations is the increasing demand of skin care products and the suitability of economic environment with provides a route to ensure a sure success in these targeted markets with higher revenue growth and reputation for Jurlique (Kotler, 2001). Most prevalent Choice for business Jurlique should aim India as the first preference to go overseas because of increasing demand of its products and the varied growth opportunities being provided by this country. Recession hitting major parts of the globe had considerably a lower impact in India. Despite all economical factors India with a constant growth rates and good purchasing power Jurlique can look upon India as a future prospect to enlarge its business and capture a larger share in the Indian market. This will thus ensure that correct market has been targeted by Jurlique and help to grow its business effectively and efficiently with larger profitability and higher demand of its products (Robin & Susan, 2003). Challenges to be dealt with Jurlique launching its products globally might face some of the challenges which has been enumerated as below. Maintenance of the same quality products and developing new products as well as updating existing products as per the need of its customers. Adapting itself with the cultural environment and integration of its working environment with the needs of the local environment. Marketing strategy to be adopted to ensure that correct segment of customers has been targeted and creating a niche in the market. Market Entry Strategy Jurlique needs to develop a correct marketing strategy to gain entry into the global environment. It can look forward towards the franchisee model while entering India. Franchisee model will further ensure that that the quality of the products is well maintained and will help in reducing cost and capture a larger market share. Integration of its business with the local requirements will be solved to a considerable level with the franchisee model. Franchisee model will further help in understanding the environmental conditions and provide Jurlique with a base to improve its efficiency and generate larger growth opportunities and higher revenues in the near future as well help to develop long term business relationship (Kotler, 2001). Recommendations India can be considered a correctly targeted market by Jurlique provided proper marketing strategy and developing an appropriate business model is rightly designed by Jurlique. Prime emphasis is to be given to maintain the same quality and standards of its products and further developing new products and updating the existing products with the requirements of the local demand. Maintaining the cultural and environmental requirements and focusing on customer satisfaction will further help in capturing a larger market share and generating higher revenue and reputation of the company in a shorter duration. Conclusion Jurlique need of the hour is thus developing a correct marketing strategy and entering into the global market without any delays and emerging itself as a tough rival to the other competitors. Developing an appropriate marketing strategy will further ensure better growth and higher return to the company and will provide a base to ensure success in the global field. References Bangs, D. 2002. The market planning guide: creating a plan to successfully market your business, product, or service, Sixth Illustrated edition, Kaplan Publishing Coughlan, A., Stern, W. & Adl Ansary, E. 2006. Marketing Channels, 7e, ISBN 9780131913462 ISBN 10:0131913468 , Pearson Education Czinkota, M.R. & Ronkainen, I. A. 2004. International Marketing, 7th edn. South-WesternPublishing:Australia. Ireland, R. D, Hoskisson, R. E, and Hitt, M. A, 2007. Competing for advantage, Cengage Learning Jurlique. 2011. Jurlique. Retrieved on December 6, 2011 from http://www.jurlique.com.au/ Kotler, P. 2001. Marketing Management, 11th edition, Prentice Publication, Upper saddle River, New Jersey Robin & Susan, 2003. In search of Strategic Management Accounting. Social science Research Network, 14 (3), 29-37 Read More