Stenders: Situation Audit and SWOT Analysis - Book Report/Review Example

STENDERS: SITUATION AUDIT AND SWOT ANALYSIS By Presented to Table of Contents Introduction 3 Internal Situational Audit Analysis 4 Consumer’s attitude towards Stenders Brand 4 SWOT Analysis of Stenders in the UK Market 4 External Situational Audit Analysis 6 Competitors Analysis 6 PODs and POPs 7 Recommendation and Implementation 7 Recommendations 7 More awareness of the existing CSR 7 Loyalty programs 8 Product Line Reduction 8 Open Days or Buzz Events 8 Recommendation Choices 9 Implementation 9 Creating and promoting awareness for CSR 9 Social Responsibility 9 Environmental Responsibility 9 Product Line Reduction 9 Open Day Event 10 Fully Body massage 10 References 11 Introduction In this report, based on Stenders profile, and internal situational audit analysis is performed, the products and target consumer’s profile are offered. An external situational audit analysis is then performed in detail with a focus on market opportunities and the competitors. On the basis of the two analyses, the external and internal situational analysis, implementation strategies and recommendations are proposed. Stenders is one of the first-growing firms in the European beauty industry. It is well known for its experience and success in cosmetics products, and as a result of its original concept, it has rapidly grown and developed. It currently has more than 200 stores and 70 franchises in 20 countries around the world. This rapid expansion-30%-the last 11 years have been mostly in Northern Europe and parts of Asia. This situation audit analysis-both internal and external-is in line with Standers target consumers in maintaining and in keeping with their focus, of being a producer of leading brands in the beauty industry globally, with efficient and appealing cosmetics, with a passion for nature. Internal Situational Audit Analysis Consumer’s attitude towards Stenders Brand From our observation and research, it is evident that there exists some discrepancy between consumer’s purchasing trends-wide purchase occasions, very high purchase frequency-and consumer’s attachment to the brand. Despite the fact that customers identify with Stenders Cosmetics as being effective, trendy products that inspire people to feel different moments every day, for various usages every day, they are not attached to the brand and do not feel committed to it. In simpler terms, Stenders Cosmetics are only preferred in the UK by consumers simply because of its practical benefits including affordability and quality. Emotional attachment to the brand or any form of communal sense does not exist in the UK as it is in Northern European countries. SWOT Analysis of Stenders in the UK Market STRENGTHS WEAKNESSES Stenders has an original well-established & fast-growing concept It has more than 200 stores, 70 franchisees, in more than 20 countries across the globe Stenders has more than 10 years’ experience in production of effective an appealing cosmetics from garden materials Standers also has online sales platform where buyers can easily purchase their products With more than 30% geographic and product line expansion, Stenders has, desirable, strong financial margins Continued research has seen Stenders expand its product range to over 300 items Stenders also has desirable capital for Franchising Stenders are aware of their competitors, their strengths and weaknesses Differential advantage They are committed to NPD They are committed to growth They have a large variety of cosmetic products for all genders, style, and age Their cosmetic products are also highly adaptable and have many usage Stenders have a global presence and their products are affordable and of high quality. Stenders rapid growth and expansions, and its many stores and franchises are limited Northern and Western European operations Stenders has no UK brand awareness It has no UK company-owned flagship Untested positioning – CO effects? Limited range/ no local product adaptation with regards to tastes No Male grooming products Stenders lacks potential partnership with cosmetics supermarkets and boutiques OPPORTUNITIES THREATS Total UK market, £12.5 billion, sector sales, £2.5 (2010, Mintel) excl. Boots and multiples. The growing significance of a sense of community Small UK shares from specialists (Bodyshop, 6.4%, L’Occitane, 1.3%, Lush, 1.8%) But Bodyshop is weak… A very CSR-conscious community International prestige Some growth at the premium end. Affordable luxury? B2B, online & multiple sales? Heavy female skew Recession – price sensitivity/discounting. Competition – upscale & downscale Lush -700 stores worldwide Bodyshop – 2,600 stores worldwide Boots & Tesco take 30% share! Prime location rentals Choosing the wrong Franchise partner Product quality unknown External Situational Audit Analysis Competitors Analysis Based our observation and research, there exist various competitor, direct and indirect, which we categorize based on product variety, trend, affordability, and number of franchises and stores. Direct competitors include Avon Cosmetics, NARS cosmetics, MAC cosmetics, Benefit cosmetics, NYX cosmetics, and Becca Cosmetics. The indirect competitors we identified included supermarkets and chain stores such as Tesco and Boots. PODs and POPs POPs PODs Stenders has a large variety of cosmetics and beauty products Stenders has a website Multiple franchises and retail stores across Europe Similar and affordable price range Efficient, trendy, and appealing products Good price/quality ratio and a wide variety of cosmetics and beauty products More digital advertisement A very interactive website complete with a blog Recommendation and Implementation The following are the recommendation based on the opportunities identified above and situational analysis. Recommendations More awareness of the existing CSR According to the interviews and observation carried out, respondents and perspective clients argued that increased CSR involvement would influence consumers’ perception. As a result, it leads to creation of consumer brand attachments despite the fact that it does not directly influence consumers purchase choice. Stenders do not have CSR activities and as such we recommend that Stenders creates CSR activities and increase and promote awareness of their existences so that it can more positively leverage on the benefits of consumer-brand attachments and at the same time, create favorable long-term brand image. Loyalty programs In the UK, about 54% of the respondent consumers observed and interviewed had no connectivity or attachment to the Brand. This study, therefore, recommend that Stenders introduces a consumer reward or loyalty program. This implies that, customer buying Stenders products up to a certain amount is issued with a reward/gift card which they will use to accumulate reward points. Product Line Reduction As had earlier been noted, Stenders has a large variety of cosmetics and beauty products, some of which are insignificant or no longer appeal to consumers. It is our recommendation that Stenders considers doing away with insignificant products that create confusion and make a consumer’s shopping experience confusing and tiring, and show bad usage of resources. Therefore, it will be prudent for Stenders to focus more on its core competencies and specialties, its original productions, rather than engaging in the development of more product lines that are no longer appealing to consumers. As gathered from focus group discussions and interviews, most respondents argued that the large variety of products is very confusing to them during shopping. Open Days or Buzz Events Of the interviewed respondents, 54% percent, which is more than half the respondents, stated categorically that they do not have any sense of connectivity or attachment to Stenders. Lack of consumer-brand attachment or connectivity is an issue not only for Stenders, but its competitors, as well. As a result, we recommend Stenders to hold Consumer Open Days events. These events should champion Stenders products usage and consumer profile. This will help improve Stenders brand image and awareness. This will help Stenders achieve one additional POD (Point of Difference), by developing a connected, strong community that is attached to the Stenders brand. Recommendation Choices The following recommendations have been chosen to detail implementation strategies Product Line Reduction Open Day Events Create and promote awareness for CSR Implementation Creating and promoting awareness for CSR Social Responsibility We recommend and suggest Stenders to create this and promote it through marketing, since marketing will ensure greater awareness of CSR activities by directly communicating them to consumers. This they should achieve by the idea of donating to charity, a given percentage of each item sold. Environmental Responsibility In order to catch customers attention and to better inform them on eco-friendly product line, that particular line need to be specifically marked. Such marking or labeling will give that particular product line more value by differentiating it in advertisements and in store. Product Line Reduction This implementation strategy aims at reducing confusion in stores and ensuring efficiency in resource usage. For those product categories that consumers do not frequently buy or ask for, Stenders should consider reducing. As a result, consumer shopping experience will be revitalized due to less confusion. Open Day Event Fully Body massage One main product line of Stenders Cosmetics is Massage cream and oil. Consumers who purchase any type of massage cream could sign up for this open day event for very whole body massage. This event will help create awareness with regards to massage cream and create a fun element to the brand. In essence, this is very novel idea in UK cosmetics industry, and as such will enhance consumer-brand attachment. References Demetris Vrontis; Alkis Thrassou. “Situation Analysis and Strategic Planning: An Emprical Case Study in the UK Beverage Industry.” Innovative Marketing 2.2 (2006): 134–151. Print. Heinen, Tobias. International Marketing Strategy. Santa Cruz: GRIN Verlag, 2006. Print. Withey, Frank, and Geoff Lancaster. CIM Coursebook 06/07 Marketing Fundamentals. Burlington: Routledge, 2012. Print. Read More