Market Analysis for Organic Facial Skin Care

Running head: MARKETING
Marketing
3/30/2019

MARKETING 1
Introduction
The aim of this report is to perform the market analysis for the organic facial skin care, in
order to recognize the market attractiveness, industry attractiveness, market benefits, and
sustainable advantage.
Market Attractiveness
Many customers that like to prefer a healthy lifestyle includes healthy skin care procedures
regularly in their day-to-day schedule. In general, individuals are getting aware of health care
and skin care products due to the increasing use of social media as well as published data on
different websites (Euro Monitor, 2018).
With the increasing awareness, customers are asking for transparency in the products they
purchase from different retailers. The players in the industry are expected to highlight the
used ingredients in the manufacturing procedure of the product on the labelling (Cosmetics
Business, 2015). Customers are today search for organic and healthy products that are
suitable for their skin. This is majorly influencing the industry and making businesses to
rethink about their strategies in different markets.
PESTLE Analysis
Political Forces
The safety of the product is key top
in the United Kingdom market. It is
discussed deeply because they are
designed according to different
skins. The act of Personal Care
Product Safety permits FDA to
Economic Forces
Unlike other industries, the beauty
industry is unaffected to the
economic downturn. This industry
has also survived successfully the
high recession of the year 2008. In
it a fact that consumers are today,

MARKETING 2
possess a "hands-on" method in
order to confirm the safety of the
products (PESTLE Analysis, 2018).
This reflects that organic facial skin
care can be introduced in the
market, but has to follow all the
guidelines of the government.
becoming price conscious, but
beauty products have become the
necessity of life same like food.
Organic facial skin care can
effectively operate in the industry
since it is not being majorly
influenced by the economic
downturn.
Social Forces
The beauty industry is all based on
the preference of the customers for
a particular brand. There are
numerous brands available in the
market, but the customer only goes
for those who provide them benefit
in terms of skin care, price, brand
image, and quality. Based on this,
the company can try to promote its
organic ingredients used in
manufacturing in order to get the
eye of the customer.
Technological Forces
Technological advancement has a major
impact on all the industries comprising the
beauty industry too. Today people opt for
online shopping since it is easy and
convenient. They do not just purchase
clothes, books, shoes from online stores, but
also like to buy cosmetic products. Organic
facial skin care can be offered through online
mediums in the United Kingdom market.
Legal Forces
The Fair Packaging and Labeling
Act and Federal Food, Drug and
Cosmetic Act are two of the key
Environmental Forces
The industry of cosmetic is adopting green
and organic ingredients in the manufacturing
procedure because people are becoming more

MARKETING 3
laws in the industry that must be
followed (PESTLE Analysis, 2018).
conscious about their skin care. This will
give an advantage to the organic facial skin
care product to easily establish in the UK
market.
Industry Attractiveness
Porter Five Force Framework
Buyers Power
Increasing competition industry and easy accessibility of the products in the skin care and
cosmetic industry has provided high power to the consumers. They are the one who is in the
place to affect the cost of the products in the industry (Adamkasi, 2017). This results in
increasing the difficulty level for the players to keep long-term profitability of the business.
This also forces the players to decrease the prices of their products because there is no
switching cost for the customers in the cosmetic and skin care industry.
Suppliers Power
The cosmetic and skin care industry is comprised of a number of suppliers. There is a number
of manufacturers needed by the industry to compensate for the number of suppliers. Besides
this, the industry also has players that are dealing with low differentiated inputs. The industry
is comprised of low switching cost for the consumers and the increasing threat of forwarding
integration. The influence of the substitute product in the profit, as well as cost, is also very
low. In all, the suppliers bargaining power is low in the industry.
Threat of New Players
Skincare and cosmetic industry are very competitive and therefore seems to be appealing for
new entrants that are trying to cover the market share. This results in the decreasing