This document discusses the retail industry trends and analyzes the background of Mac Cosmetics. It provides a SWOT analysis of the company and offers recommendations and an action plan for success. The document also explores the opportunities and threats in the industry.
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Table of Contents INTRODUCTION...........................................................................................................................1 RETAIL TRENDS...........................................................................................................................1 Retail industry trends with prominent research...........................................................................1 ANALYSIS AND DISCUSSION...................................................................................................3 Background of selected company................................................................................................3 SWOT Analysis...........................................................................................................................3 RECOMMENDATIONS.................................................................................................................5 Recommendations and action plan..............................................................................................5 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7 APPENDIX......................................................................................................................................8
INTRODUCTION Retail Industry is a procedure which is useful and selling and exchanging goods and services to the respective customers with the help of multiple channels of distribution to gain competitive advantage and profitability. In simple words it is considered as an activity for a procedure of providing commodities to general public usually in small amount(Balaji and Roy, 2017). Retailers other individuals to satisfy the needs and requirements of customers by offering them required commodities by using well established supply chain. This industry is concerned with the collection of various commodities from the manufacturer in large amount of quantities and supplying it to their respective customers in small lots. Cosmetic industry as a group of Companies that goes from manufacturer to the customers and offer their beauty products to other individuals. In order to carry forward this report company considered is Mac Cosmetics which is the cosmetic manufacturer founded in Toronto, Canada in 1984 by two partners named Frank Tuskanand Frank Angelo. Headquarter of companies in New York andMAC is an acronymfor Makeup Art Cosmetics. In addition to this report is going to cover current Trends of Retail Industry with suitable research. It also analyse the strength and weaknesses of company in terms of wholeindustryanditsperformanceandlastlyonthebasisofitsweaknesssuitable recommendations is provided with prominent Action Plan. RETAIL TRENDS Retail industry trends with prominent research International cosmetic market is expected to earn 429.8 billion by 2022 as it is determined by analyzing their forecast period of 2016 to 2022. For this cosmetic market include makeup and beauty products which is the combination of chemical and useful in order to enhance the appearance and odor of human body as these products include skincare deodorants makeup and many more that are used by many individuals. Retail stores include supermarket brand outlets and stores in order to distribute their product as it is considered as their distribution channel (Pantano and et. al., 2017). In relation with the growth in global economics it leads to change the lifestyle of individuals and also increase the demand of cosmetic products because of dynamic climatic conditions that encourages the growth of cosmetic market full stop despite of this now people are more conscious about their skin which tends to increase the demand of natural, herbal 1
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and Organicproductsthatdeveloppotentialopportunitiesfor manufacturertogain their customers for longer period of time. By determiningthe current market trends in cosmetic industry smart beauty and e-make- up’s in Trend and followed by many individuals across countries. As smart beauty is the skin care system and a Japanese electronic product that scan the skin in order to identify blemishes with the help of serum and even out the skin tone of an individual in order to give them flawless skin. This device represents and reveals the healthy skin in few minutes with the help of identifying suitable skin care product(Zheng, 2016). Moreover e-makeup is considered as an artist that createeccentricmakeup look as it is a digitalization way to explore skin and also termed as the filters which is provided on the Snapchat and Instagram. Describe the collaboration with many artists medicines and models on Instagram along with some big brands and order to develop looks that Bloom and sprout on the screen. Reason behind for the development of this Trend is outlandish looks which is helpful in order to enhance the skin tone and share the photos and videos online. In present time the GDP of various countries is positively influences the international cosmetic market and tends to continuously relies in the economy of various countries raise is the spending capabilities of individuals.Moreover the market of cosmetic Industries depends on various categories of cosmetics mode of sale Gender and demographic areas. For this the category segment includes skin and sun care products, deodorants, makeup and fragrances. Customer for purchasing the cosmetic products majorly preferred the retail mode for sale as it is 2
the way in which they can easily test and analyse the product in prominent way(Peres and et. al., 2017). However online mode of purchase for cosmetic products is determined as the rising trend among the customers and many other countries at Geographic level. ANALYSIS AND DISCUSSION Background of selected company MAC cosmetic isthe manufacturer of beauty products in cosmetics and incorporated in 1948 in Canada.The products of company was originally intended for makeup professionals indirectly sold prospective customers across the world and because of its good quality product company has become a global brand full stop as in 1990 the brand over hundred stores across the world earning 200 million Francs.In addition to this company is named as one of the top three Global makeup brands with annual turnover of around 1 billion and has 500 independent stores in which 30 belongs to France. SWOT Analysis Strengths:This factor describe the best of company in terms of its operations image and competitors as employees of makeup are selected and termed as the makeup artist of professionals who have direct connections and experience in this industry as it makes them export and also helps in influencing their respective customers(Arunraj and Ahrens, 2016). Moreover company was initially developed professional models in order to represent and promote the products buy strong lights and glare of Ramp. For this they forecast their customers including their models, stylist, photographersetc.In order to 3
introduce their brand and also influences the fashion world with the help of famous fashion magazines. In addition to this, MAC cosmeticsoffer broad range of products such as lipstick, blush, eyeliner, mascara, concealer, foundation, eyeshadow and many more and also have mineral base makeup and most of its products include lotion as well as powder form. In addition to this the product range of company is well known for their lipstickwhichisdesignedexclusivelyforthebrandassumoftheinnovative characteristics include Bullet shape and the texture. Moreover the packaging of the products of company in signature black case which is the attractive feature of brand to influence their customers. Weaknesses:Company does not have large amount of weakness as the major weakness that the face is related with their pricing of products as its products are largely available for the professional and celebrities. Its products are only affordable for the selected people as it relies on the value of sale. Moreover, MAC cosmeticsis based on the research which is done by their sales and marketing expertise and its products are more suitable for the white skin and less suited for dusky skin tones and because of this it is not so popular in Asia(Gullo and et. al., 2017). In addition to this company also face difficulty in order to adapt changes as per the demands of market full stop for this the cosmetics sector is filled with numerous players as the market is highly fragmented which describes the ability to cope up with the changing demands that affects the market position of company. Opportunities:This component describe the various opportunities which arises in the environmentandsurroundsthebusinessinordertoincreasetheirreturns.MAC cosmeticshas various market opportunities what is available for them and for this firstly is to create more freestanding stores instead of having small designinthe larger departments. Moreover the millennial generation and the number of individuals who use makeup on regular basis increases in terms of number(von Briel, 2018). Determine the growth of online shopping of people repeat the experiment with new looks and also capitalise fonts in huge amount and relation with branded cosmetics. In addition to this manyoftheemergingcountriesandeconomicslikeIndiaandChinamakeupis considered as the traditional occasion which depicts the regional orientation is important and Critical. As if company consider each region and area in terms of an opportunity 4
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helps in scaling up for their business and useful in increasing their sales and revenues by achieving their prominent goals and targets. Threats:This element describe the issues which company currently faces and it is divided among its competitors and pricing as both of the factors can become bread in the growth and success of business(Li, Tan and Sha, 2016). Furthermore, modern people and customers are concerned about their health risk and skin in terms of uses of makeup with chemicals as it influences the natural beauty and this factor negatively impacts the sale of cosmetic brands. Moreover its main competitors include Sephora, Maybelline, L’Oreal and many more. RECOMMENDATIONS Recommendations and action plan Fashion industry is currently facing frequent changes in the business environment which forces retailers to charge low cost for its products and also provide flexible in terms of designs in quality and it can become the key strategy to maintain profitable position in order to increase the demand of market(Wei and et. al., 2018). For this company to adopt various changes and conduct market research in order to acquire larger market share and improve its productivity and profitability. By examining the above discussion in order to improve the productivity and profitability of Retail Industry and company named Mac Cosmetics need to adopt changes prominently in order to survive in frequently changing business environment. For this prominent recommendation which Mac Cosmetics need to adopt is discussed as under: MAC cosmeticsneed to increase its online presence as because of its widespread of Technology of company offer more beauty products to its potential customers. As companyalsoprovidethemconveniencetopurchase24*7latesthelpfulforthe customers to compare products with their Rivals. This factor allows them to target more customers which is useful in enhancing the profitability. In addition to this respective company need to create awareness of its product with the help of social media techniques such as Facebook, Instagram, Twitter and many more in order to promote its products full stop as it is helpful for the company to develop huge presence for its products in market as the increased target customer base tends to increase its sales and revenues(Castillo, 2017). 5
Action Plan Currently the objective of companies to increase 20% of its market presence and share of its product and for this company take suitable actions which are: In modern time the manufacturers of company put emphasis on developing fresh products and unique products which is useful for the different ingredients of cosmetic products. To sustain and maintain the market position Mac Cosmetics need to adopt various strategies in order to become leading company in fashion Retail Industry and also tracked from recent developments of the past two years. For this its prominent strategies include product launch, acquisition, expansion and agreement of effective strategies is opted by MAC cosmetics. CONCLUSION From the preceding information it is summarised that retail stores are rapidly expanding theirbusinessinordertoearnmoreprofitabilityandwiththehelpoftheirexpansion employment level of country is also improve. Retail companies need to identify the requirements of individuals and their respective customers in order to develop commodities to attract large customer base that tends to increase profitability. In order to develop Product Company need to identify current trends of industry and also determine the internal environment in order to develop various strategies to manage and deal with changes. Moreover, weaknesses of company are described with prominent recommendation and action plan it is useful to attain success in future. 6
REFERENCES Books and Journals Balaji, M.S. and Roy, S.K., 2017. Value co-creation with Internet of things technology in the retail industry.Journal of Marketing Management.33(1-2). pp.7-31. Pantano, E and et. al., 2017. Does innovation-orientation lead to retail industry growth? Empirical evidence from patent analysis.Journal of Retailing and Consumer Services.34. pp.88-94. Zheng, F., 2016. Spatial competition and preemptive entry in the discount retail industry.Columbia Business School Research Paper. (16-37). Peres, I.T and et. al., 2017. Optimization in inventory-routing problem with planned transshipment: A case study in the retail industry.International Journal of Production Economics.193. pp.748- 756. Arunraj, N.S. and Ahrens, D., 2016. Estimation of non-catastrophic weather impacts for retail industry.International Journal of Retail & Distribution Management. Gullo, P and et. al., 2017. State-of-the-art technologies for transcritical R744 refrigeration systems–a theoretical assessment of energy advantages for European food retail industry.Energy Procedia.123. pp.46-53. von Briel, F., 2018. The future of omnichannel retail: A four-stage Delphi study.Technological Forecasting and Social Change.132. pp.217-229. Li, Y., Tan, W. and Sha, R., 2016. The empirical study on the optimal distribution route of minimum carbon footprint of the retail industry.Journal of Cleaner Production.112. pp.4237-4246. Wei, C and et. al., 2018. Location-based pricing and channel selection in a supply chain: a case study from the food retail industry.Annals of Operations Research. pp.1-26. Castillo, J., 2017. The relationship between big five personality traits, customer empowerment and customer satisfaction in the retail industry.Journal of Business and Retail Management Research (JBRMR).11(2). Online CosmeticsIndustryOverview.2020.[Online]Availablethrough <https://www.alliedmarketresearch.com/cosmetics-market>./ 7
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