Market Analysis and Segmentation of Sacha Cosmetics

The assignment provides an analysis of Sacha cosmetics' market using various segmentation methods (geographic, demographic, psychographic). It emphasizes the need for effective market analysis to cater to people's needs and wants. The report concludes that Sacha Cosmetics should conduct a thorough market analysis in India to expand their business successfully.

Global Marketing Ethics and
Culture

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTLE ANALYSIS......................................................................................................................1
Five force analysis...........................................................................................................................2
SWOT analysis................................................................................................................................3
Segment............................................................................................................................................3
Target...............................................................................................................................................4
Product Positioning..........................................................................................................................5
Target Market in some context........................................................................................................6
1. Demographic......................................................................................................................6
2. Geographic.........................................................................................................................6
3. Behavioural.........................................................................................................................6
4. Psychographic.....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
When an organisation is doing marketing at international level, they have to do it
ethically (Ikonen, Luoma-aho and Bowen, 2017). Sacha Cosmetics is situated in Trinidad and
Tobago and producing make up items for women. They are operating their business in more than
20 nations. Company is going to provide Foundation, buttercup powder, blush, loose face
powder, bronzer and many more which are applied by people on their face. They are soon going
to launch a cream for their clients and its name is glowbar. Additionally, this report is going to
highlight various sector of market such as psychographic, demographic and so on. They are
introducing their item in India; thus, they can enhance their sales, customer base and profits.
PESTLE ANALYSIS
Political factors: This kind of element comprises various rules as well as regulations of
regulatory bodies under which Sacha cosmetics need to work appropriately. They are
manufacturing their products in Trinidad and Tobago. Therefore, they need to follow policies
which are developed by government as it can influence their business. Many import rules
provide growth and advancement to Sacha cosmetics.
Economic factors: It will involve rate of exchange under which firm is working. If there
is recession then it can provide rise to cosmetic enterprise such as Sacha. Instead of all of this,
value of item plays a vital role to attract people towards them. As they are concentrating on face
products; thus, if any item is specific for a particular skin tone then its price will be high.
Additionally, quality of their goods is the best which can also influence women to produce their
items (Madikizela and et. al., 2017).
Social factors: It is much associated with technical alteration in society. Furthermore,
youngsters take too much interest in the cosmetic products. Therefore, if Sacha cosmetic produce
attractive and qualitative products then, they can easily pull them. They have to use the best
ingredients in their products which will not affect skin of people.
Technological factors: In the modern days, each kind of firm needs to use new techniques
in their business. Similar to this, Sacha cosmetic has to build inventive goods for their clients and
thus, they can develop loyalty amongst them. They always manufacture items as per the trends as
customers go for trendy products most of the time. Enterprise is producing luxurious products by
using new tools which provide success and growth to them.
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Environmental factors: It is required for any company to reduce their wastage so that
they can secure surroundings from harm and make it more beautiful. As organisation is doing
their work at global level. Hence, it is essential for them to follow norms of every nation where
they are working. Along with this, they need to comprehend intrinsic as well as extrinsic
elements as it can influence business in a broad manner. Additionally, they have to create
policies or strategies for business according to country where they are operating their firm.
Legal factors: There are numerous competitors of Sacha cosmetics across the world.
Therefore, they need to keep up their success graph and for this purpose, they have to comply
with all laws which essential for them to follow so as to run business.
Five force analysis
 Threat of new entrants:
◦ It is not easy to build exclusive membership.
◦ There is less threat of any new entry at marketplace.
◦ Revenue expectation will high.
◦ Business area can easily examine.
◦ If brand image is not effective then, company can loose their clients.
 Threat of substitutes:
◦ Too much beauty salons.
◦ If prices are high of Sacha cosmetics then, individual can switch to other brands.
◦ Various training studios.
◦ Doctors are also giving treatment regarding skin or beauty.
 Supplier power:
◦ It is much high as there are many suppliers at marketplace who are giving same
quality of goods at reasonable price.
◦ They can import goods also.
 Buyer power:
◦ There is low bargaining power of buyers as they purchase cosmetic items from
particular company because of good quality.
◦ Purchaser do not want to switch to other brand.
 Rivalry:
◦ High competition at international market (Miller and et. al., 2017).
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◦ To compete rivals at marketplace, it is fundamental for organisation to maintain
quality of products and services.
SWOT analysis
 Strength:
◦ Company conduct research and development on continuous basis.
◦ Quality of goods is much effective and efficient.
◦ Marketing strategies of firm is very impressive.
◦ They are doing their business economically.
◦ Product nature is natural.
 Weakness:
◦ Competition is high at global sector.
◦ Rivals will copy their goods and services.
◦ Cost of advertisement is high.
◦ Increase in legal expenditures
 Opportunity:
◦ They can enlarge their business in other nations also as their brand image is effective.
◦ They are continuously doing variation in their products in inventive way which aid to
attract numerous clients.
◦ Company is manufacturing natural products and its demand is enhancing endlessly.
 Threats:
◦ Too much regulations as well as rules are created by regulatory body.
◦ Recession at international level.
◦ Preferences and tastes can be change of people (Shabib and et. al., 2017).
Segment
Demographic segmentation can be used by Sacha cosmetics:
 On the basis of age
 On the basis of income
Manager of Sacha cosmetic is planning to enlarge their business in new market. They
want to expand their organisation in India. For this, they need to know about the tastes as well as
preferences of people. Along with this, they have to analyse the kind of products they are using.
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They can establish their stores over there and in addition, provide goods online to them.
Therefore, to satisfy needs and wants of every kind of clients, they have to analyse market in an
effective and efficient manner (Qian and Qian, 2017).
Market of Sacha cosmetics can be segmented as:
On the basis of age: An organisation can target people as per their age. While Sacha
cosmetic is producing goods for their clients, they need to consider their age. Similar to this, they
are going to expand their business in India; thus, they have to research that which age group is
using maximum cosmetics.
On the basis of income: It is also necessary for firm to consider income of people while
they are producing products. Basically, Indian people do not spend too much on make up items.
Target
To target market, Sacha Cosmetics can use some kind of strategies:
 Undifferentiated
 Differentiated
 Concentrated
An organisation can use many sorts of strategies to target market of India:
Undifferentiated: As indicated by this, a single method can design by manager and
promote it at market place by using many types of advertisement methods. This type of
methodology is much appropriate for homogeneous marketplace (Leonidou, Skarmeas and
Saridakis, 2017).
Differentiated: As per this, firm can target more than two form of market segment.
Along with this, they can create marketing mix for each and very segment.
Concentrated: according to this, a single marketplace can be targetted by company by
using a single marketing mix.
Therefore, it is essential for manager to use proper advertising method for their products
and services which they are going to introduce in India. They can use various techniques such as
print media, internet, social media and many more. Thus, they can use above mentioned
strategies to enlarge their business in India.
Hence, company is using differentiated strategy for their product which is launching by
them (Ikonen, Luoma-aho and Bowen, 2017).
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Product Positioning
As indicated by this, it is fundamental for an organisation to compare goods and services
with rivals to know en effective position at marketplace. If position of an item is much adequate
at market then, it is easy for them to influence people to buy goods of Sacha cosmetics.
Organisation can do advertisement also to get attention of people.
There are three kinds of positioning:
 Functional
 Symbolic Experimental
Functional positioning : With assistance of this, it is easy to resolve issues in an
effective manner. This will give many advantages to clients which will satisfy their needs and
wants in an effective manner. As position of organisation is appropriate across the world;
therefore, it is easy for company to get funds from banks or other institutions in India. Hence,
they want to fulfil demands of people as per their requirements.
Symbolic positioning : With aid of this, image of firm will get improved in the market.
Company is much able to accomplish the needs and wants of people in an appropriate manner
(Bae, 2017). Apart from this, it is much linked with brand which aids to accomplish the self
esteem of people.
Experimental positioning : It will provide sensory as well as cognitive stimulation with
clients.
Therefore, combination of them will help organisation to take benefits from competitors
at marketplace.
Target Market in some context
1. Demographic
Market can be segment on the basis of this, it is the easiest method which can be used by
an organisation. It can be based on various variables such as age, size, gender, income, race and
many more.
As Sacha cosmetic is going to expand their market in India; therefore they have to divide
their market as per demographic. As a result, manager can easily cover entire target market in an
effective manner (Ramadani and Gërguri-Rashiti, 2017).
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Age element Income Gender
45% 32% 55%
Hence, company is going to target above mentioned percentage as it is identified by a
research which was conducted by them.
2. Geographic
As indicated by this, needs and wants of people can be vary as per their location.
Company is going to launch cream named Glowbar, for their customers. Weather of Banglore is
always cold, thus, requirement of this item is high as compare to Delhi because this state is
almost hot for 8 months in a year (Market Segmentation, 2016).
3. Behavioural
According to this, market can be distribute as per the behaviour of an individual and their
decision. Women whose age is between 17 to 26 years will highly prefer face cream for their
regular use.
4. Psychographic
It depends on lifestyle of an individual and in addition their interest. It is much related
with behavioural segment (Ramadani and Gërguri-Rashiti, 2017). Along with this, it can affect
buying behaviour of clients. As many persons who has high income always go for branded items;
therefore, they only want to purchase goods of Sacha cosmetics.
CONCLUSION
From above mentioned report it has been concluded that company is much famous across
the world. They are going to expand their business in India; therefore, it is required for them to
do analysis of their market in an effective way. As a result, they can easily accomplish needs and
wants of people. They can divide their marketplace on various sectors, such as geographic,
demographic and so on.
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REFERENCES
Books and Journals:
Bae, M., 2017. Matching cause-related marketing campaign to culture. Asian Journal of
Communication. 27(4). pp.415-432. 11(2). pp.165-178.
Ikonen, P., Luoma-aho, V. and Bowen, S. A., 2017. Transparency for Sponsored Content:
Analysing Codes of Ethics in Public Relations, Marketing, Advertising and Journalism.
International Journal of Strategic Communication.
Leonidou, C. N., Skarmeas, D. and Saridakis, C., 2017. Ethics, Sustainability, and Culture: A
Review and Directions for Research. In Advances in Global Marketing. pp. 471-517.
Springer, Cham.
Madikizela, L. M. and et. al., 2017. Physicochemical characterization and in vitro evaluation of
the sun protection factor of cosmetic products made from natural clay material. South
African Journal of Chemistry. 70(1). pp.113-119.
Miller, M. S. and et. al., 2017. Reparametrization of Protein Force Field Nonbonded Interactions
Guided by Osmotic Coefficient Measurements from Molecular Dynamics Simulations.
Journal of Chemical Theory and Computation. 13(4). pp.1812-1826.
Qian, Y. and Qian, Y., 2017. Joyoung Soymilk Maker: Segmentation, Targeting, and
Positioning. Kellogg School of Management Cases. pp.1-4.
Ramadani, V. and Gërguri-Rashiti, S., 2017. Global Marketing, Gender and Family Business in
Asia: A Literature Review. Journal of Global Marketing. pp.1-9.
Shabib, F. and et. al., 2017. Impact of CSR on consumer behavior of Bahraini women in the
cosmetics industry. World Journal of Entrepreneurship, Management and Sustainable
Development. 13(3). pp.174-203.
Online:
Market segmentation. 2016. [Online]. Available through: <https://www.marketing91.com/4-
types-market-segmentation-segment/>. [Accessed on 31st October 2017].
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