Marketing Strategy in Cosmetic Industry A Comparative Study between Benefit Cosmetics and Revlon
Marketing Strategy in Cosmetic Industry A Comparative Study between Benefit Cosmetics and Revlon
a)Best Process for Product Mapping and Analysis
In accordance of (Tebogo, 2010) the product mapping and product analysis is very much important for the marketing strategy used by the cosmetics companies for the advertisement and engagement of their product. Therefore, the SWOT and PESTEL analysis for the products are very relevant in this regard for these two companies Benefit Cosmetics and Revlon. The companies can be aware of their products and their positions with respect to other substitutes available in the market after the product mapping and analysis (Bertelsen, 2012).
SWOT Analysis is referred to the analysis of the strategic environment of a business to scan the internal and external environment of the company as a part of the strategic planning process of a company (Barnes, 2015). The internal environmental factors are Strengths (S) and Weakness (W) of the company and the external factors refers to the Opportunities (O) and Threats (T).A company with developing its internal strengths shouldabolish the internal weaknesses and grab the opportunities to develop the business coming from the external sources of the business fighting with the threats for the company (Ahmad, 2013). A company should construct a SWOT Matrix to take into account the strategies developed and followed by the company in the following way:
S-O Strategies: The S-O strategies explain about theopportunities to develop the strength of the company are considered in S-O Strategies.
W-O Strategies: A Company should pursue those opportunities which can overcome the weaknesses of the company.
S-T Strategies: In these strategies the methods to utilise the strengths are clarified so that the threats of a company can be reduced.
W-T Strategies: A company has to establish a defensive plan which can prevent the threats to a company that can be the weaknesses of a company.
Now the SWOT for Benefit Cosmetics and Revlon is going to be analysed.
SWOT Analysis of Revlon
Strengths: The strengths of Revlon are –
1.Revlon is an experienced cosmetics company in the UK market for 75 years.
2.Revlon is very popular among the women.
3.The main focus area of Revlon is development of the product despite of several constraints in the business.
4.Revlon has a strong research and development section.
5.Revlon also supports the health programs arranged for women with some ethical supports.
6.Revlon maintains a very active and efficient distribution channel which acts very positively to increase sales.
Weaknesses: The weaknesses of the company are –
1.The financial position of Revlon is so weak due to heavy debt and losses in the market.
2.The Company is reducing the trust of the employees due to rapid cut in employment.
3.The performances of the employees are hampered because of the continuous changes in organisational structure.
4.Most of the marketing strategies of Revlon are very weak to reach to the targeted market segments.
Opportunities: The following opportunities are available to the company.
1.Revlon can act as a joint ventures or partnerships in the industry to face the financial issues.
2.Revlon has the opportunity to utilise all the available product promotion methods to boost up the total sales of the company.
3.Revlon should develop products for the male segments of the market too for the expansion of the business.
Threats: The threats faced by the company are –
1.Revlon faces an intense competition in the industry.
2.Revlon use to fail to develop new products adjusting with the market demand which changes due to rapid changes in fashion for the insufficient financial assistance
3.Through Revlon utilises online selling opportunity, but it never cares about online assistance to the customers developing online relationships.
4.The instable condition of the government of UK is also a big threat to the company.
5.The focus towards the women section of the people only also acts as a threat because the substitute products of the rival companies have started to grab the men section already.
SWOT Analysis of Benefit Cosmetics
According to (Freeswotanalysis.com, 2015) the SWOT analysis of Benefit Cosmetics helps to create a successful marketing for the company and it also provide the information the standing of the brand of company in the market.
1.The product quality of the company is high.
2.Some products of the company have built goodwill for the company winning awards.
3.The branding of the products is quirky and original.
4.The products of Benefit cosmetics are popular among the make-up artists.
5.The online presence of the company is very strong.
1.The product prices are 20% high on an average than the other substitutes of the rival companies.
2.The products of Benefit Cosmetics are very easy to copy to its competitors in the market.
1.The company plays a good role in sponsorship to the bloggers which a very popular marketing strategy
2.The company has products in men’s beauty line.
3.This company also targets the older age group of UK.
4.The company has recently diversified in the Nail industry.
1.The economiccondition of UK acts as a threat to the company.
2.The home brands are the other threats to the company.
3.The rival firms are capable to produce similar products at a cheaper rate.
b)P Model of Marketing for Marketing Analysis
Marketing in a cosmetic company is a continuous change of strategy as such that any cosmetic company stands very much being the competition if they don’t change their way of marketing (Businesswire.com, 2010). It is not a universal rule to follow like carbon copy but it is continuously changing process while the base is the same. Many researchers in this field add new dimensions which are still helping modern day marketing. A popular example of this is change of marketing mixfrom some decade which is now accepted globally even by the cosmetic companies that a more developed 7P’s gives and essential cover of necessary marketing mix with some researcher and theorists as they do deep research (Lehman & Wickham, 2014).
Before proceed through what is the Marketing Mix, the original 4P’s which gives an additional fundamental to marketing mix with some theorists as they do deep research on marketing.
Before proceed through what is marketing mix, the original 4P’s principle is discussed her.
The4P’s Marketing Mix
According to Harrigan & Hulbert (2011), Marketing mix is helpful to the marketing perspective of a cosmetic industry where to get the best possible return of money. There are 4P’s have been associated with the cosmetic marketing mix. The theory is made by great market researcher E. Jerome McCarthy in 1960.
The 4P’s Marketing Mix:
PRODUCT- The cosmetic product should meet with the need of consumers demand. (Malhotra, 2010). It should be what the consumers are buying that particular cosmetic product.
PLACE- The cosmetic product should be available at comfortable reach of targeted people. This can be street, shopping mall or via e-commerce.
PRICE- The product should always reflect good value for money. It is neither too cheap or overprice. It has been found that people are generally willing to pay extra if they find little extra benefit. For example it is better to find dark patch removal with fair complexion making cream.
PROMOTION- It is a method of telling people the benefit of certain cosmetic product. Using TV stars or giving emotional or funny advertisement etc. can be used for this purpose (Miles, 2007).
In the late 70’s the need of updating Marketing Mix are acknowledge by researcher of marketing. For this Booms &Bitner add 3 more P’s to old 4P’s theory to determine and yield good return of profit in cosmetic industry (Young & Aitken, 2007). Now products that are services and not just physical things are also included in marketing.
The Extended 7P’s
PEOPLE- Only right people can deliver and offer right service in the cosmetic industry. To develop product marketing, giving demonstration etc. there are need of right people in this industry.
PROCESS- Smooth process delivers the right result. Process of cosmetic product should be effective and efficient of marketing. In these cosmetic industries generally the marketing budget is a big part of spending money (Semon, 2013). So, it is good to be efficient here.
PHYSICAL EVIDENCE- Every time whether it is even via online seedling there should some physical evidence like demonstration in .pdf or .jpg file. They give description of the product.
From 1980 the new 7P’s theory have been started to teach instead to the old 4P model of marketing (Semon, 2013). As the marketing strategy is changing like direct or sell from shop to selling online via e-commerce the total marketing strategy is changing according to it. To get adopt with changing environment it is needed to make change in strategy and to add new P’s. From this concept the 8P’s has been generated by the new marketing researcher.
Is there an 8th P?
According to the researcher, there are 8P’s is Productivity and Quality. According to some critics it has been come from originally the 7P’s and it is just deep inside looking which causes and extra 8P’s.(McDonald & Mouncey, 2011)
The New 8th P of the Marketing Mix:
Productivity and Quality of Product - Productive and Quality are referred to the fact how the product or service can benefit with the customer. The product should stand firmly with the validity of paying price. The customer should pay at the proportion of increasing quality of cosmetic product. The product marketing ethics should be maintained by this.
Even after 31 years since it is made (54 years for the old 4P’s) the marketing mix is useful for every person who are associated with consumer business whether it is small or big at every moment (Tracy, 2004). A good marketer should learn to adapt with changing environment model.
c) Comparative Analysis between two Cosmetic Companies
A comparative study is going to be prepared in this following analysis on the basis of two Cosmetic Companies – Benefit Cosmetics and Revlon and some different types of cosmetic products of these two companies are chosen for this purpose. According to the consideration of the researcher Benefit Cosmetics is the Competitor A and Revlon is the competitor B. Some common dimensions of a product like, price of the product, quality of the product which can affect different parts of the marketing strategy like, promotional activities, placement of strategic planning etc. are considered in this comparative analysis between these two well established companies of cosmetic manufacturing industry. Four types of cosmetic products, Face Wash, Whitening Cream, Sun Block Cream and Moisturizer are chosen for this analysis. The details of the products of the respective companies are given in the following table – 2.
Foamingly Clean Facial Wash
Revlon Pure Skin™ Foam Wash
It’s potent! Eye cream
Revlon Touch and Glow Advanced Fairness Cream
Sun Block Cream
Revlon Sun Block
ORGANIZATIONAL POLICY & STRATEGY Page 3 of 24 Executive SummaryRevlon was founded in 1932 by 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 cosmetics companies? Would jewelry be good industry to enter given the aging society? Does Revlon have too many brands? Should the company keep brands such as ColorStay and get rid of brands such as Mitchum? Should Revlon agree to sell itself to Perlman or to a rival firm? What is Revlon worth on the market?