Strategic Marketing in the Cosmetic Industry

This assignment examines various marketing strategies employed within the cosmetic industry. It delves into topics such as value proposition evolution, market segmentation practices, sustainability considerations for competitive advantage, and the role of co-branding and celebrity endorsements in product positioning. The analysis also covers future marketing trends targeting millennials and the impact of social media platforms on consumer engagement.

Running head: MARKETING OF ADVANCED COSMETICA
Marketing of Advanced Cosmetica
Name of the student
Name of the University
Author note

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Executive Summary
The main purpose of this report is to discuss about Advanced Cosmetica and the products that
are offered by it. The report also illuminates on the internal strength, weakness and analysis
of the external environment of Advanced Cosmetica. It also analyzes at length how
information is collected about the customer, competitor, collaborator and the context. It also
expounds on the market segment, choice of target market and the value proposition of the
company. It also discusses about the marketing tactics and the marketing mix of Advanced
Cosmetica.

2MARKETING OF ADVANCED COSMETICA

3MARKETING OF ADVANCED COSMETICA
Table of Contents
Issue 1.........................................................................................................................................6
Description of industry...........................................................................................................6
Description of the brand.........................................................................................................6
Products Offered....................................................................................................................6
Mission Statement..................................................................................................................7
Marketing Strategy.................................................................................................................7
Issue 2.........................................................................................................................................8
SWOT Analysis of Company.................................................................................................8
Customer................................................................................................................................8
Collaborators..........................................................................................................................9
Competitors............................................................................................................................9
Context...................................................................................................................................9
Issue 3.......................................................................................................................................11
Collection of information about demand of customer.........................................................11
Collection of information regarding competitors.................................................................11
Collection of information regarding context of business.....................................................12
Collection of information regarding role of collaborators...................................................12
Issue 4.......................................................................................................................................12
Marketing strategy...............................................................................................................12
Market segments that are available......................................................................................13

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Choice of target market........................................................................................................13
Value Proposition.................................................................................................................14
Positioning statement for target market...............................................................................14
Issue 5.......................................................................................................................................14
Developing marketing tactics...............................................................................................14
Marketing Mix of Advanced Cosmetica..............................................................................14
References:...............................................................................................................................16

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Issue 1
Description of industry
The consumers of Australia spend a large amount on beauty along with that of
personal care that includes that of colour cosmetics and skin care. Those who are millennial
consumers have emerged to become key target group and they follow the industry closely for
trends. The Australian consumers make frequent purchase that is based on the claims and
formulas of the product. The digital channel has greatly influenced all the categories of
beauty along with personal care and consumers increasingly look forward to the internet for
getting advice regarding personal care products (Babin and Zikmund 2015). Social media has
a great influence on the purchasing decisions of the consumers and consumers follow their
favourite celebrities that inspires them to use the popular brand.
Description of the brand
Advanced Cosmetica is a famous Australian brand that focuses on the arena of skin
along with hair care. Botanical ingredient is the speciality of this brand and with the help of
extensive research they have been able to make premium quality products that suits the taste
of the modern customer (Australiancosmetics.com.au 2018). The use of the brands of
Advanced Cosmetica can work miraculously on the skin, hair and body of an individual on
account of the efficient products that they manufacture. The brand can help in making the
customers feel youthful and the natural base of the products ensures a safe environment.
Products Offered
The products that are made by the reputed cosmetic brand of Australia includes that of
skin care, hair, aromoatherapy, colour cosmetics, hair care, salon products and that of men’s
grooming products. Aromatherapy includes that of shower product, foot care product, body

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lotion and sun protection (Hollensen 2015). The grooming products of men include that of
shaving, body and hair care. The brand has a global reach and manages to attract a large
number of consumers. The brand names that are popular under Advanced Cosmetica includes
that of White Beauty Series Skin Care Range, Six Star Series Hair Care Range and that of Six
Star Series Body Care Range (Australiancosmetics.com.au 2018).
Mission Statement
The mission of Advanced Cosmetica revolves around connecting the beauty regime
with that of the power offered by nature (Isaac et al. 2016). Australia has amazing natural
surroundings and that marvellous power can be harnessed and transferred to the skin and hair
by the help of the innovative products of Advanced Cosmetica. The entire brand has been
developed by making use of Aloe Vera and this has calming properties that refreshes the
body and mind of the consumer.
Marketing Strategy
The marketing orientation of Advanced Cosmetica focuses on meeting the desires of
the customer by making use of the product mix. The products of Advanced Cosmetica have
been tailored in such a manner that that it can help in meeting the demand of the customer
(McDonald and Wilson 2016). The products of Advanced Cosmetica are made of Aloe Vera.
They make use of Australian botanical ingredients which is the key focus of their marketing
campaign. The product concept emphasizes on manufacturing innovative products that prove
to be better in terms of quality (Hollensen 2015). The products of Advanced Cosmetica have
been designed in such a manner that sets it apart from that of the competitors. The societal
marketing concept of Advanced Cosmetica believes in contributing to the society in the same
manner that it has received from that of the society. Native plants along with the richest
mineral of Australia are made use of for manufacturing the products that provides
nourishment to the face, body and hair (Babin and Zikmund 2015).

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Issue 2
5C of Advanced Cosmetica
SWOT Analysis of Company
Strength Weakness
Advanced Cosmetica makes use of the native
botanical ingredients of Australia and it contains
functioning active ingredients from the essential
oils of plants (McDonald and Wilson 2016).
Low export Level
Higher pricing of the products
Opportunity Threats
Natural products will dominate the market in the
future and companies that make use of synthetic
ingredient will not be favoured by the customer.
Advanced Cosmetica makes use of natural
products that will make it popular in the market.
Slowing down of the rural demand
Tax along with regulatory structure
Figure: SWOT Analysis of Advanced Cosmetica
Source: Created by the Author
Customer
The customers of Advanced Cosmetica are people who belong to the middle along
with Upper class group of the Australian product. The rural demand has decreased on account
of the tight economic structure that makes the people in the urban areas primary customers of
Advanced Cosmetica (Vakola, Bourantas and Karli 2017). The millennial customers
comprise of the key target group and they are the ones who follow the industry in a close
manner and observe the trends in the cosmetic industry (Armstrong et al. 2015). The young
generation makes extensive use of the products of Advanced Cosmetica and they follow the
beauty regimen of the famous television personalities. The innovation pertaining to the

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products along with their societal marketing concept has made them popular among a wide
class of people (McDonald and Wilson 2016).
Collaborators
AUS Cosmetics is an expert in the arena of skincare manufacturing and they make use
of the most advanced technology for packaging the products of Advanced Cosmetica
(Vakola, Bourantas and Karli 2017). Starkey Smith Media Group specialises in the arena of
custom publishing of print along with that of online portal (Isaac et al. 2016). They provide
specific solutions for the niche market industry publication of Advanced Cosmetica.
Competitors
Neon is a leading manufacturer of the colour cosmetics within Australia and it has
been in the industry for above 30 years (Scheele 2014). It is a dynamic manufacturer and
creator of high quality product which poses a threat to that of Advanced Cosmetica. Divine
cosmetics is another competitor of Advanced Cosmetica and the cosmetic chemist of Divine
Cosmetics tailor the formulations of skin care on the basis of the specific requirement of the
client (Vakola, Bourantas and Karli 2017). Cawarra Cosmetics is running in Australia for
around 35 years and it is a manufacturing pioneer of “natural” skincare. It provides stiff
competition to the business of Advanced Cosmetica.
Context
Political Economic
The Australian Competition and Consumer
Commission (ACCC) has released the
Compliance and Enforcement Policy. The policy
highlights the principles that are adopted by
Australia is a wealthy Asia Pacific Nation that
has greatly benefitted on account of the policy of
economic expansion
The use of services along with technology is

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ACCC for achieving compliance with that of the
law.
Product Safety issue is a priority of the ACCC
and the products of Advanced Cosmetica have to
be manufactured in such a manner that it does not
violate the policies that have been mentioned in
the ACCC.
The National Industrial Chemicals Notification
and assessment Scheme (NISNAS) helps in
protecting the people of Australia and that of the
environment by assessing the risks in relation to
the industrial chemicals. The ACCC is dependent
on the advice that is provided by NICNAS. It
helps in the risk assessment of the chemicals in
relation to the consumer goods.
competitive that greatly favours all kind of
industries
Highly developed economy that helps the
different industries to flourish
Per-capita income of Australia is high that
increases the demand of the luxury items.
Social Technological
There is a growing trend of the Australian
consumers towards natural products and
botanical ingredients are greatly valued by the
customers of the modern age.
The customers want brand that contain organic
essential oils and made of plant extracts.
Technological developments have taken place in
the Australian industry and they have greatly
impacted the supply chain.
Customer service has greatly benefitted from the
use of technology and the complaints and queries
of the customers can be resolved very easily with
the help of technology.
Emergence of diagnostic tool has dramatically
changed the cosmetic industry.
Figure: PEST Analysis of Advanced Cosmetica

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Source: Created by the Author
Issue 3
Collection of information about demand of customer
Social Media network can serve as an important means with the help of which
information can be collected regarding the customer. Surveys can be posted that can help in
eliciting important information about the demand of the modern customer. A survey can be
sent with the help of an e-mail that can help the company to find out relevant information
about the problems that they are facing relating to skin care products and about hair care
products.
Collection of information regarding competitors
Understanding the competitors is of crucial importance for the success of a firm. The
process of gathering important data about the strengths and weakness of the competitors of
Advanced Cosmetica comprise of three stages:
Identification of the main success factors of the industry- The competencies along with
assets that help in competing successfully should be assessed in the beginning. These factors
pertain to the innovation that can help the brand to understand the needs of the consumer
quickly.
Rating of the company- The case company should be rated and the competitors should be
rated pertaining to each main success factor( by making use of a rating scale).
Implications of competitive strategy- The strategy objectives of the competitors can be
made use of that can help in the process of predicting the strategy about the future. In-depth
analysis of the marketing mix of the competitors can help in the process of identification of
target market

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Collection of information regarding context of business
Observations can help to a great extent in finding out about important information
regarding the strengths and weakness of the company. The files and documents of Advanced
Cosmetica should be researched carefully that can help in providing important information
about the different aspects of the company. They can help in revealing important information
regarding how the Australian Competition and Consumer Commission has affected the nature
of business. It can help in careful planning and forecasting of the future of business.
Assessing the economic and social conditions of Australia can help the management to
decide about the strategies that can be adopted for the process of marketing.
Collection of information regarding role of collaborators
Market research is the strategy that can be adopted in order to find out about the
collaborators that might benefit Advanced Cosmetica. The companies that are working in the
same discipline as that of Advanced Cosmetica should be researched thoroughly. The value
proposition of the company that makes it unique and attractive for the customers should be
communicated to that of the proposed organization. Social media along with personal
network can help in the process of collecting relevant information about the collaborators
(Scheele 2014).
Issue 4
Marketing strategy
Marketing serves as the main backbone that can help in the successful launching of a
product in the market. Creative packaging can serve as an important component of the
marketing strategy of Advanced Cosmetica. It can drastically change the look and feel of the
product. Innovative materials like that of recycled cardboard, lace and velvet can be made use
of as an effective strategy of marketing of Advanced Cosmetica. Embellished details like that

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of ribbons and buttons can help in enhancing the look of the product and a logo on the
package design can help in the marketing of the products of Advanced Cosmetica (Kadam
2015). Colour along with design can be made use of for the branding that can help in
appealing to a younger demography. The cosmetic products are used to a great extent by the
young generation and making the brand attractive can help in the process of attracting a
larger base of consumer and increase the popularity of the brand-Advanced Cosmetica.
Market segments that are available
Market segmentation is important for the achievement of success of a company. On
the basis of the marketing segmentation, a market can be divided into that of smaller
segments that have different needs (Osterwalder et al. 2014). The common variables that can
help in identifying the segment of Advanced Cosmetica includes that of geography,
demography, psychography and behaviour. The company deals with colour cosmetics and
hence he studying of female group is crucial. This smaller group can further be divided on the
basis of their age, education and occupation (Cross, Belich and Rudelius 2015). On the basis
of behaviour they can further be divided into that of light, moderate and that of heavy users.
The needs of these group will be different from that of each other. By taking recourse to
psychographic segmentation, Advanced Cosmetica can understand about the lifestyle and
interest of the customers. Geographic Segmentation of Advanced cosmetic can help in
dividing the customer base on the basis of geography (Jiménez-Zarco, González-González
and González-Rodrigo 2016).
Choice of target market
Sydney and Melbourne are the main areas that makes use of expensive luxury items
and this will be the main target market of Advanced Cosmetica. It is the younger generation
who are keen followers of fashion and Advanced Cosmetica should carry out a marketing
strategy that will be able to cater to this segment of population.

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Value Proposition
Botanical ingredient along with research has enabled the manufacturing of the
products of Advanced Cosmetica (Vakola, Bourantas and Karli 2017). It can benefit the
health of the individuals and give rise to a more safe environment. The products of Advanced
Cosmetica have been made using Aloe Vera that helps in adding value to the products of
Advanced Cosmetica (Osterwalder et al. 2014). This makes it an incomparable brand
because aloe vera contains antioxidants that help in regenerating the collagen of the skin.
Positioning statement for target market
Connect the beauty regime with that of the power of nature and the products have
been developed by making use of true queen of botanical: Aloe Vera (Scheele 2014). The
rejuvenating jewel of Mother Nature will act wonders for the skin of consumer (Covin et al.
2015).
Issue 5
Developing marketing tactics
Growing awareness regarding environmental crisis has brought about innovations in
design and that of manufacture of the famous Australian brand, Advanced Cosmetica.
Bamboo packaging is bio-degradable and beauty products of Advanced Cosmetica can be
made using bamboo packaging that can trigger the impulse purchase of the customer (Isaac et
al. 2016). Calcium carbonate is also used as the material that is used by some companies
(Leroi-Werelds et al. 2017). Terraskin is a paper that can be made from limestone that starts
degrading after nine months of being exposed to sunlight. It can effectively be made use of
by Advanced Cosmetica in order to reach a larger market (Oancea et al. 2017).

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Marketing Mix of Advanced Cosmetica
Product
Packaging helps in the process of showcasing and protecting the product. The packaging of
Advanced Cosmetica has been made colourful and vibrant that helps in attracting the younger
demography (Vakola, Bourantas and Karli 2017). Graphics along with bold colours can help
in drawing the attention of the consumers.
Price
The packaging design of Advanced Cosmetica should be able to communicate the business
value of the company that lays stress on natural products (Scheele 2014). The clothing boxes
should have a glossy look and it should be embossed with the logo of the company.
Promotion
The packaging of Advanced Cosmetica should contain all kinds of information and the
purpose of the product should be stated clearly in the packaging that can help in drawing the
attention of the customer towards the brand (Rothaermel 2015). The quality of the package
of Advanced Cosmetica should be able to reflect the quality of the product. The trends in
relation to design are constantly evolving and the packaging should cater to the modern taste
of the customers.
Place
Innovatiove Packaging of the products of Advanced Cosmetica can help in establishing the
position of the product in the market (Isaac et al. 2016). Guranteee should be printed on the
package of products of Advanced Cosmetica that can help the consumers feel free to use the
new product (Valverde et al. 2015). Environmental concern is an important area of the

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modern age and the packaging of the products of Advanced Cosmetica makes use of
recyclate plastic that helps in saving a large amount of virgin plastic every year.

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References:
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Australiancosmetics.com.au (2018). Advanced Cosmetica | Australian Cosmetics. [online]
Australiancosmetics.com.au. Available at:
http://www.australiancosmetics.com.au/item/advanced-cosmetica/ [Accessed 15 Jan. 2018].
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Covin, J.G., Garrett, R.P., Kuratko, D.F. and Shepherd, D.A., 2015. Value proposition
evolution and the performance of internal corporate ventures. Journal of Business
Venturing, 30(5), pp.749-774.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Isaac, R., de Melo Conti, D., Ghobril, C.N., Netto, L.F. and Junior, C.T., 2016. Sustainability
and Competitive Advantage: A Study in a Brazilian Cosmetic Company. International
Business Research, 10(1), p.96.
Jiménez-Zarco, A.I., González-González, I. and González-Rodrigo, E., 2016. Old Strategies
for Positioning in a New Market Segment: Co-Branding and Celebrity Endorsement in the
Development of New Mobile Apps for Tweens. In Encyclopedia of E-Commerce
Development, Implementation, and Management (pp. 611-624). IGI Global.