Situation Analysis, Market Target and Audience for La Mour - Case Study Example

Situation Analysis, Market Target and Audience for La Mouré La Mouré is an Australia cosmetics brand owned by a multi-national corporation named Mr. William. The company was founded in 2010 and began producing cosmetics all around Australia. This cosmetic brand is designed for both professional make-up artists and women from all culture and personalities. La Mouré is directed towards professionals in the beauty and fashion industry that focuses a lot on elegancy and a sophisticated look. It enables individuals to meet their beauty needs and desires by creating a comfortable and confidence look but at the same time draws a mysterious feeling. Recently, La Mouré has launched their new ‘La Mouré’ make-up product that included sophisticated shades works to bring out the eyes. This eye shadow product comes in palettes consisting of multiple colours that blend easily to enhance every woman’s eye shape with the right skin tone. The eye shadow product is formulated with emollients for long-lasting color that will not crease or cake easily. It will provide every woman a defined look that is suitable for occasions1. Bestqueen cosmetics will be available on Australian retail stores like Myers and David Jones and also other make-up department stores. This newly invented product is expected to meet the growing demand of markets in order to provide a diversity of beauty needs and desires all over Australia. Situation Analysis Market mix analysis: market mix analysis includes product, price, place and promotion. Product: The product is an eye shadow under the brand name La Mouré . La Mouré is a brand name for a range of cosmetic products manufactured by Mr. William. Price: Having considered several factors of production as well as the price of similar commodities in the market, our team of experts saw that a price of $602 . The set price would ensure maximum profitability of the company as well as maximum sales. Place: the target market for the first few years will be the whole of Australia. Since Australia is large and it attracts a large number of tourists, the company saw it wise that they should start by targeting the local market3. The company’s team of experts evaluated and saw that going to international market would be too risky and the product has not gotten popular with the locals. Promotion: the promotion of the product will be done through several channels so that the public can be aware of the new product4 . This will start by the launching of the new product in the market. Immediately afterwards, the company will embark of a vigorous and intense promotion campaign through several media. The most targeted form of promotion for the product will be bill boards alongside major highways and in major town centers. Television advertisements will also be given priority because of the visible nature of the product5 . The company will use a known model from Australia to apply and market the eye shadow product in these media. External Analysis Customer Analysis Customers with stable financial background and wish to experience high quality beauty products will be satisfied with La Mouré eye-shadow products. Effective celebrity endorsement would be an important factor that can influence customers’ decision to buy this product because it motivates them to feel socially accepted and those dominant to go for a beauty transformation. A diversity of customers including professional make-up artists would want an equal opportunity and be inspired by the elegance and confidence look that the product can offer. Loyal customers especially from urban areas who care about looking glamorous, will potentially be attracted to new feature eye-shadow product that exudes elegance for their eyes and make them look more expressive. Competitor Analysis MAC’s Pro Palettes Chanel’s Les 4 Ombres De Chanel – Quadra Eye Shadow Determinant Attributes More variety of colours and collections, Highly pigmented, Easy storage, Oil free products Intensified colour, Soft touch shadow texture, Luminous, Long lasting, Blends easily, Purified oil products Shades 6 Pro Longwear Eye Shadow Shades 4 multi-effect shades Pricing and Price Strategy Parity RRP $94 Expensive RRP $95 Positioning Strategy Positioning by price/quality -It is the least expensive department store brands that sells high quality cosmetics. Positioning by product class - Creative beauty campaigns involving Chanel robots made out of individual pieces of make up, to celebrate Chanel beauty. Promotional Tactics Personal Selling, Sales Promotions, Charitable social initiatives, Celebrity endorsements, Fundraiser Events Advertisements on TV, magazines and posters. Celebrity endorsement, Seasonal Campaigns, Sales Promotions Fashion Shows 12540Brand strength or qualities Modern Packaging, Inexpensive, Original, Constantly Innovative, High quality products, Always comes in black packaging Known for it’s strong elegance style, Famous cult designer that reinvents the brand, Focuses on unified packaging, Commitment to technologies for innovation Black and white signature packaging Retailers David Jones, Myer David Jones, Myer, Beauty Boutiques Environmental Analysis Political factors This may impact on the process of eye-shadow products in terms of lengthy procedures. According to National Industrial Chemicals Notification and Assessment Scheme (NICNAS), new chemicals must be verified and assessed by the NICNAS for safety products and hazard purposes. In this case, mixing emollients with new chemicals to create new shades will have to first notify and get assessed by the NICNAS before it is being manufactured into Australia6. However, inventing new chemical products will also increase our costs for the registration fees as new chemicals cost around $18,000 to retain standard assessment (STD). This will also affect the budget cost. Economical Factors There are a few economical factors that may affect the sales of La Mouré cosmetics. According to the Federal Budget 2014, the Gross Domestic Product (GDP) in Australia will expect a slow growth of 2.5 percent in 2014 to 2015. This may affect on our sales, the demand for goods and services are relatively lower7. However, it is expected to experience recession in a business cycle, it allows us the opportunity to develop cash deployment strategies to seek better opportunities to drive business growth. Sociocultural Factors In the Colour Cosmetics Social Engagement Report, it was found that brands could improve their approach, drive engagement, track results and reach potential customers across several media. This gives great opportunities for our company to influence customer’s purchase decision by forming interactions and earning shares on key media platforms such television and radio Technological Factors The widespread influence of nanotechnology is to provide superior performance of cosmetics including colour, transparency and others8. Due to potential risks that can affect human life and environment, we are expected to meet all the challenges with new ideas and technical refinements when it comes to high technology innovations. Natural factors Cosmetic industries need to improve environmental performance. This will provide an opportunity to focus on resource efficiency such as eye shadow product packaging to reduce environmental impacts. In this case, the packaging design can be eco-friendly and innovations in recycled packaging. SWOT Analysis Strengths Innovativeness- La Mouré is able to think outside the box. Its expansion to give eye shadow care and elegance demonstrates its ability to venture outside the ordinary product category to drive growth9 . A well segmented portfolio- it has a well segmented portfolio that operates across different pricing tiers10 . This will help drive sales growth during these challenging economic times. Weaknesses Eye lash care has been less dynamic- this will contribute to reducing market in the coming years since consumers will get bored with the same product characteristics. Opportunities La Mouré has greater opportunities due to the increasing middle and upper class in Australia The ever increasing retail outlets that spring up create a wide customer base for La Mouré eye shadow. Threats Though La Mouré predicts a large and substantial share of the Australian market it gets stiff competition from the already existing eye shadow products. The economic crisis that might be expected in the coming years could reduce the purchasing power of consumers and make production more expensive. Target market and Audience In the event of analysis, we shall put our focus on female market. Therefore the potential target customers do not include any male persons. Using the statistics for female eye shadow users eye shadow cosmetic is mainly used by females (99%), those with a minimum of college education (61%), and the use traverses income levels (30% earn less than $25000; while 42% earn between $25000 and $55000 and 28% earn over $55000). From the pie chart we expect that majority of women with income of $25000 and above will form a strong customer base since they have a lot of disposable income. However a significant percentage of women earning less than $25000 are also likely to use the eye shadow product. Turning to statistics on education we developed our potential customer base with the following parameters: Women with college education between the ages of 25 and 65. We ignored women with no college, women over 65 and the entire male population. National census estimates that female population is likely to grow at a rate of 8% per year from 2010 to 2025 (source: the Australian census bureau). This data is for the whole of Australia. Out of the 8,456,000 females represented between the ages of 25 and 65 who had college education, 7,089,000 (84%) live in major CMSA's. The targeted final users are between the ages of 24 and 65. These users are professional with college education. They are consumers with an active lifestyle and are concerned about environmental and social issues. This group of females has a lot of concern for mind and body wellness. They take yoga, belong to a health club and attend pilate's or tai chi lessons11. Even more important this group always tries to live and maintain a youthful life and appearance. They have a lot of disposable income and higher purchasing power. Consequently they influence the purchase or buy 80% of all consumables. With more increasing female education the cosmetic market is likely to get more sophisticated and demanding since the educated women will continue to demand more and more. Female consumers of today live a transactional life with several constituencies. Their lives keep on moving forward. Due to the changing lifestyle of females, their health has improved greatly. In fact, statistics shows that the use of anti-depressant drugs by females has significantly dropped while the use of anxiety drugs has gone up12 . To the women age is now irrelevant. Life stages are not defined by age anymore. For instance, the needs of a 22-year-old first-time mother are the same to the needs of a 44-year-old first-time mother. Female consumers of today do not define themselves by age but instead they have a more or less the same mindset. Teens and parents now live a parallel lifestyle. The older ones is interested in staying young while the young segment act older. Works Cited Arna Richardson 2013, IBISWorld Industry Report G4271b Cosmetic and Toiletry Retailing in Australia, IBISWorld Inc., retrieved 19 August 2014, . Belch, GE, Belch, MA, Kerr, G & Powell, Advertising and promotion: an integrated marketing communication perspective, 2nd edn, McGraw-Hill Australia, NSW. 2009. Print. Belch, GE, Belch, MA, Kerr, G & Powell, Advertising and promotion: an integrated marketing communication perspective, 2nd edn, McGraw-Hill Australia, NSW. 2012, pp.196-198. Print.   Belch, GE, Belch, MA, Kerr, G & Powell, Advertising and promotion: an integrated marketing communication perspective, 3rd edn,McGraw-Hill Australia, NSW. 2014. Print.  Canberra Environment Centre, ‘Cosmetics’, retrieved 19 August 2014, .  Chanel 2013, 'Rouge Allure Extrait De Gloss', retrieved 19 August 2014, .  Guerlain 2013, 'Rouge G L'Extrait Creme De Rouge Matte Colour', retrieved 19 August 2014, . Johnson, G & Scholes, K 1997, Exploring corporate strategy, 4th edn, Prentice Hall, London. Luther, WM, The marketing plan: how to prepare and implement it, AMACOM, New York. 1982. Print. Moroccan 2013, 'Moroccan lip gloss Infused with Certified Organic Argan Oil by Silk Oil Morocco', retrieved 19 August 2014, . Ogilvy, D. Ogilvy on advertising, Pan Books, UK. 1983. Print. Shimp, TA. Advertising, promotion, and other aspects of integrated marketing communications, 7th edn, Thomson South-Western, Mason, Ohio. 2007. Print. Read More