Amara Halal Cosmetics: Market Analysis and Positioning

This report provides a market analysis and positioning of Amara Halal Cosmetics, a company that provides halal-certified cosmetics products. It discusses the growing demand for halal products in the Middle East and the company's mission to provide all-natural ingredients that are permissible under Islamic principles. The report also includes a SWOT analysis and a PESTLE analysis, as well as the use of space matrix in formulating future marketing strategies.

Running Head: AMARA COSMETICS 0
Marketing

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About Amara Halal cosmetics market
In the report, it is found that the Islamic population across the world can pay the premium
price for the products of Halal certified products. In the Middle East too, it has growing
demand of its products. Skin care is seen as the, most growing product of the Halal. Due to
this, it is the second largest segment and expected to rise in the coming years. In the coming
year too, the Halal cosmetic market will bring out the millions USD this year only (Kaur,
Osman and Maziha, 2014).
Due to the limited presence of choice for the Muslim women’s, Amara Halal proves to be the
most growing consumer segment in Malaysia. The law permits the personal care products as
well as the Halal cosmetics. It believes in using ingredients that does not harm the customers
in any way. It tends to offer the high quality of makeup of its brand named Halal. It is also on
the par with the natural as well as organic products. With its brand image, it does not tie
itself to a religious point of view. Besides this, it also resonates with people of the entire
backgrounds who have an appreciation for natural and pure products,” Halal in the recent
time, has also become a worldwide mark in terms of quality assurance and a lifestyle choice.
Among all the Halal cosmetics, Amara Halal is the first company that tends to provide the
complete halal certified cosmetics products. Its products manufactured in the US. It
specifically made for the community of Muslim.
The mission of the Amara Halal is to provide those cosmetics that contain all-natural
ingredients that are permissible under Islamic principles. Halal-certified, the company strives
to raise awareness that ‘Halal isn’t limited to what is consumed as food but also applies to
what is put on our skin’. By ensuring this mission statement, the entire products of the Amara
Halal are the animal free (Annabi and Ibidapo-Obe, 2017).
Positioning analysis for the Amara Halal Cosmetics
It is true that rising awareness regarding the advantages of using skin care tends to drive the
growth in skin care segment. Some cosmetics cause the skin irritation as well as put the long-

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term negative effect on the health. By keeping this in mind, Amara Halal has effectively
positioned itself in the market. It has come up with the effective and alternative solution for
the customers. It has also positioned itself by spending huge amount on the promotional
activities regarding the use of Halal beauty products. It has also positioned itself by not using
any alcohol and animal in its product. Due to this, its products are considered as the pure and
sued by the customers in huge quantity.
In order to know its positioning analysis, several researches have been done. Firstly, its
values are collected from the competitor’s analysis. Its special offerings are being searched
with the help of customer’s reviews. Afterwards, its different attributes is also collected with
the help of different research. By gathering, the data from different sources, the services, and
products of Amara Halal has been known. Distinction was also made between the
competitors that helped in getting the positioning of its services as per its target customers,
advantages, prices, as well as quality. under this, consumer perception was also collected in
relation to the competing products and brands.
It also markets the complete line of the Halal cosmetics to the Muslim women. Besides this,
all the raw material used in making the cosmetic products are taken from the plants instead of
the animals. IN the recent time, consumers have become more conscious regarding the
production methods as well as ingredients used in the product. By providing the finest quality
of product, it has positioned itself in the market.
High breadth of products
Halal cosmetics
Higher quality Lower quality
Lower breadth of products

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SWOT analysis of the Amara Halal
Strengths: It has wider reach not only in Malaysia but also across the globe. It also has the
qualified set of the Islamic standards that tends to create the awareness about the products
worldwide. The biggest advantage that it gets is it does not contain any alcohol content and
animal derived ingredient. Due to this, it is considered to be pure as well as hygienic. It has
wider reach in the market including India, Malaysia, Indonesia, Pakistan and Bangladesh.
Besides this, it also gets the support by the government on a huge level. The government
certifies every product of the Amara Halal. due to this, it is able to get the growth and
revenue in the Malaysian market as well as other economy.
Weakness: It is found that it has increased the consumer awareness but lacks the
standardization. Srill, it requires the innovation in order to bring the growth in the industry.
Besides this, it still has limited access to the several countries. Due to its less expansion in the
emerging economies, it still faces the growth.
Opportunities: Several opportunities are available for the Halal cosmetics. As per the
projection, it is found that the overall Halal cosmetic industry is expected to increase in the
growing population of Muslim. Several other companies such as Iran, Saudi Arabia, UAEE,
Indonesia, Malaysia tends to offer the potential growth opportunities for the products of
Halal. The high purchasing power of Malaysian people is also increasing on the cosmetic
products. Due to this, Amara Halal can also use the competitive strategy in order to promote
the high discount for the brand cosmetics. As it is found that, the consumers of Malaysia
influence more by the promotional offers. It can also ensure the same in order to achieve high
growth.
All these factors tends to provide the great opportunities for the entire multinational players
operating under the global Halal cosmetics. It will also present the upsurge due to the major
growth in the international cosmetics company. Due to its hygienic and pure products, it
might come up with any market segment. In those segments too, it can bring the innovation
and achieve the customer demand on a huge level (Hassali, Al-Tamimi, Dawood, Verma and
Saleem, 2015).

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Threats: Competition is the major threat that can be faced by the Amara Halal. In the recent
time, several new companies are coming up by bringing the innovations in their products. due
to the increasing demand of the pure and organic cosmetic products in Malaysian, there might
be the possibility of new entrant to entre in the market. The entrance of new market might hit
the growth of the company. Besides this, it might also be possible that government come up
with any policy or law. Due to the changes in policy, it will also require to comply with the
new procedures. Due to this, Amara Halal will require the new investment as well as time. It
is the threat that can be faced by the Amara Halal in the coming time.
The major competitors of Halal cosmetics are the global players such as Estee Lauder,
L’Oreal, Urban Decay and Bobbi Brown.
Pestle analysis of Amara Halal Cosmetics Malaysia
Political factors: Government has also certified the use of Amara Halal as the quality product.
It has stated the products of Halal as free from the harmful ingredients. Government of
Malaysia has also certified every product of the Halal. It clearly shows that it complies with
the government rules and regulation. In order to enter into market, it is essential for the new
competitor to certified with the rules made by the Malaysian government. In this way, it can
be stated that the Amara Halal tends to get the support of the government in huge basis
(Rezai, Mohamed and Nasir Shamsudin, 2012).
Economic factors: Malaysian economy proves to be beneficial for the Amara Halal. It is also
found that the global halal cosmetic market is expected to increase by the USD 93.51 billion
by the year 2026. Therefore, it presents the positive aspect for the Amara Halal to bring the
innovation strategy and expansion. IN other countries too, GDP is increasing to a higher rate.
By researching the emerging countries, it can ensure the enhancement in those markets. As
per the preference of the customers in the concerned country, it can earn the high revenue
(Abd Rahman, Asrarhaghighi and Ab Rahman, 2015).
Social factors: It is true that the beauty market of growing fast. From the projections, it is
found that the cosmetic industry is rapidly growing in the developing as well as developed
countries. In Malaysia, cosmetic industry has projection to make the continuous move. In the
year 2015, it is expected to reach by US$58.41 million. In the recent time, educated Muslims
also became aware regarding the use of high quality and safe products. As per the consumer

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demand, its products are safe, clean and cruelty free. Due to the Halal cosmetics, Malaysia
has again leaded in the cosmetic sector (Izberk-Bilgin and Nakata, 2016).
In the forecasting of the Halal products, including Amara Halal is expected to rise with a
huge rate due to the rise in Muslim purchasing power. It is also rise due to the desire of young
women for the interest in makeup and fashion with the Islamic loyalties. This tends to
provide the great opportunities for its growth (Khan and Haleem, 2016).
Technological factors: Amara Halal has taken the several technological changes in order to
sustain in the today’s competitive environment. It tends to make each product organically by
avoiding the use of alcohol or animal content in its cosmetics. Due to this, technological
innovation has played the great role. It will also prove to be successful for the Amara in
future. The concept of Halal is also getting sophisticated. The percentage of Muslim
population has also increased that has shifted the spending on the safe and high quality. It has
also progressed to seek the halal integrity in processed beverage, pharmaceuticals,
entertainment as well as the insurance. In addition to this, millennial has also shown the
preference for organic, natural as well as vegan products. the Orgy nail varnish of the Amara
Halal uses the same technology of the contact lens that allows the hydration and oxygen to
pass through. It also helps in promoting the nail growth, helps in healing the damage nails as
well as increase the thickness of the nail (Kaur and Mutty, 2016).
Environmental factors: In the recent time, it is essential for the firms to undertake the
environmental measures. In order to preserve the environment, it sues the certified products
that do not contain the alcohol and animal. It tends to preserve the environment by using the
fresh handmade ingredients. It is also seen that each product is made from the organic fruit,
fresh vegetables as well as essential oils with no chemical (Tournios, 2015).
Legal factors: several laws are made by Malaysian government in order to assist the cosmetic
industry in better way. Due to this, it also complies with the Malaysian standard MS
2200:2008. As per this standard, it keeps the products safe for the consumers. The drug
control authority in Malaysia has also carried out the several regulations for the cosmetic
industry. it has made the “Control of drugs and cosmetic regulations 1984” in order to ensure
the quality, safety and efficacy of the pharmaceuticals. The “Islamic Food and Nutrition
Council of America” also certify every product of the Amara Halal (Abd Rahman,
Asrarhaghighi and Ab Rahman, 2015).

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Use of space matrix in the formulation of future marketing strategies
Space Matrix plays an essential role in the organisation. It helps in formulating the alternative
strategies. Same as the grand matrix, it also consists of the four essential elements. The first
two elements are competitive advantage and the financial strength. The other two elements
are industry strength and environmental stability. It will also prove to be helpful for the
Amara cosmetics in the planning and strategic management. Using space matrix, it will assist
in creating the idea for the proper business strategy (Jabar, Ishak, Johar and Wahid, 2014). By
assessing the internal as well as external environment using space matrix, it can design the
appropriate strategy. However, it not always proves to be successful. It is because in the
recent time, several changes occur quickly, that can lead to the failure of the formulated
strategy. Besides this, competition has also increased to the greater extent. Therefore, if any
competitor enters with the new and innovative strategy, there might be the possibility of the
failure of designed strategy. Due to this, it is significant to take care of each factor despite of
the space matrix (SR, Hashim, Yusof and Alias, 2013).
The strategy of workplace is empowered by the expertise, knowledge, market trends as well
as with the deep analysis of the company culture. A proper research can be done with the use
of space matrix that will further help in creating the solutions for ensuring the future
adaptability. Space matrix uses the several methods in order to analyse the environment such
as BCG matrix, Swot analysis, or industry analysis. After analysing the internal as well as
external dimension through space matrix, it is easy to translate them into the generic
competitive strategy. It is true that the competitive advantage gives the specific significance
to the marketer. In this, space chart can prove to be useful in some ways (Hajipour, Gharache,
Hamidizadeh and Mohammadian, 2015).
Action plan for the next three years
Activities Total Time Duration Responsible department
Market Research 1/9/2019 to 31/1/2020 Research and Development
Department
Introduction of new
products
1/9/2019 to 31/12/2019 Top level or lower level
manager
Allocation of
Responsibilities
1/1/2020 to 9/2/2020 Top Management

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Hiring of competent
Employees
11/1/2020 to 31/3/2020 Human Resource Department
Marketing of services From 1/4/2020 continuous
process
Marketing department
Evaluation of the results The evaluation will be done
after every six months
Administration department
After ensuring the action plan of three years, it will keep the monitoring and control system
in the positive manner. Using the several control system, it will evaluate the procedures and
project. Afterwards, it will make the significant changes where it is lacking. The monitoring
action will also take place in the whole procedure of the controlling action and project
development. The top management will do the monitoring system of the action plan (Hshim,
2009).
Challenges that Amara Halal is facing and means to overcome the
same
The growing issue regarding the health and environment hazards proves to be responsible for
putting the significant impact on the cosmetic industry. Several health hazards such as breast
cancer, distortion are usually blamed as the result of higher sue of cosmetics. These kinds of
increasing events have promoted the awareness of consumer regarding the substance of
cosmetic or beauty products. Due to the lower level of awareness about the products of Halal
cosmetic brand is proving as the challenge for the industry. As a result of this, the industry is
facing the lack of demand as per the potential and expectations. Therefore, it is essential for
the Amara Halal to improve its production facilities and marketing strategies. The
improvement in marketing strategies will help it in reaching to the large number of
customers. It will help it in dominating the global Halal cosmetic market due to the presence
of emerging nations such as Bangladesh, India, Indonesia, Pakistan as well as Maldives.
In addition to this, the guidelines of Amara Halal tend to differ from country to country. due
to this reason, manufacturer finds it difficult to relate the standardized set of the guidelines. It
also tends to restrain the growth of Amara Halal to some extent. In order to remove this issue,

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it is therefore essential for the manufacturer to effectively ensure the appropriate
manufacturing process, ingredients, production process, as well as effective supply chain.

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Gantt Chart for the research activities done in completing the task
Task / weeks 1-4 5-8 6-10 11-15 16-20 21-25 26-30 31-
34
35-36
Identifying the
research and
the company
Determining
the research
objectives.
Objectives are
essential to get
the desired
results
Conducting
literature
review
Data
collection such
as primary and
secondary data
collection
Proper
analysis of
data
Drafting of
report
Final
Submission

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The Gantt chart given above explains the research done and procure followed in order to
complete the task. A deep analysis of every data was essential in order to know the current
status and projected growth of the company. Besides this, it is also significant to set the
objectives so that goals can be achieved easily.
Conclusion
In the limelight of above discussion, it can be concluded that the Amara Halal is growing
well in the market. The entire products are natural that certified legally with the Halal
cosmetics. In order to expand its wings in the emerging economies, it is essential to ensure
the proper research. It is also getting higher preference on the side of customers. It is because
the entire products of Amara Halal are alcohol free and free from animal testing.

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References
Abd Rahman, A., Asrarhaghighi, E. and Ab Rahman, S., 2015. Consumers and Halal
cosmetic products: knowledge, religiosity, attitude and intention. Journal of Islamic
Marketing, 6(1), pp.148-163.
Ahmad, A.N., Rahman, A.A. and Ab Rahman, S., 2015. Assessing knowledge and religiosity
on consumer behavior towards halal food and cosmetic products. International Journal of
Social Science and Humanity, 5(1), p.10.
Ali, A.A.E.B.R., Othman, A.K., Hassan, F.H., Zainudin, M.I. and Fadzil, A.S.A., 2018.
Branding Strategy on Economic Sustainability among Personal Care and Cosmetics
Customers. International Journal of Asian Social Science, 8(11), pp.995-1004.
Annabi, C.A. and Ibidapo-Obe, O.O., 2017. Halal certification organizations in the United
Kingdom: An exploration of Halal cosmetic certification. Journal of Islamic Marketing, 8(1),
pp.107-126.
Hajipour, B., Gharache, M., Hamidizadeh, M.R. and Mohammadian, F., 2015. Raising halal
cosmetic awareness among the respective consumers. International Journal of Academic
Research in Business and Social Sciences, 5(7), pp.338-349.
Hashim, P., 2009. A cosmetic analysis in compliance with the legislative requirements, halal
and quality control. MALAYSIAN JOURNAL OF CHEMISTRY (MJChem), 11(1), pp.81-87.
Hassali, M.A., Al-Tamimi, S.K., Dawood, O.T., Verma, A.K. and Saleem, F., 2015.
Malaysian cosmetic market: Current and future prospects. Pharmaceut Reg Affairs, 4(4),
pp.155-157.
Izberk-Bilgin, E. and Nakata, C.C., 2016. A new look at faith-based marketing: The global
halal market. Business horizons, 59(3), pp.285-292.
Jabar, F.A., Ishak, M., Johar, N. and Wahid, S.N.S., 2014. A study on the relationship
between awareness and knowledge of Muslim retailers toward Halal cosmetic products.
In Proceedings of the International Conference on Science, Technology and Social Sciences
(ICSTSS) 2012 (pp. 383-388). Springer, Singapore.