This report delves into the marketing strategies of Adore Beauty, an Australian online cosmetic store. It covers company description, SWOT analysis, 5 C's analysis, marketing tactics, and more.
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Table of Contents Introduction:....................................................................................................................................3 Issue: 1- Description of company, its products, and related concept..............................................4 Issue 2: Analyze each of the 5 C’s for the organization..................................................................9 Issue 3: How does the firm go about collecting information.........................................................12 Issue 4: Developing marketing strategy........................................................................................13 Issue 5: Developing marketing tactics...........................................................................................16 Conclusion:....................................................................................................................................19 References:....................................................................................................................................20 2
Introduction: This report introduces to the concept of marketing. Adore Beauty is one of the leading online cosmetic stores which is an Australian based company. This report presents the workings or operations of Adore Beauty. In addition to this, the report shows SWOT and PESTLE analysis of the company. Further, this report presents the major competitors and collaborators of the company. This report also shows the needs of the customer and the issue or threat faced by the consumers while doing shopping. In addition to this, the report shows the marketing strategies with regard to market segmentation, positioning and value prepositions. This report also shows the role played by the competitors in the formation of marketing strategies. This report even presents the 4 Ps of marketing strategy which is a product, price, place, and promotion. This entire report is presenting the marketing strategies which are adopted by the Adore Beauty to target more and more consumers. 3
Issue: 1- Description of company, its products, and related concept Figure:Adore Beauty Source:(Adore Beauty, 2018) The cosmetic industry is controlled by international corporations which invented in the initial 20th century. Adore beauty is one of the famous organizations in the cosmetic industry. Adore Beauty was discovered in the year 2000 and is Australia’s primary cosmetics shop to trade completelyonline.ThiscompanyislocatedintheMelbourne,AustraliaintheGreenbelt ofNorthcote. The company was originated in the year 1999 by madam, Kate Morris, a business scholar, at the age of 21 (Adore Beauty, 2018). Industry-Cosmetic industry Mission:Beauty is about self-assurance and self-confidence. The company has views that each woman is worthy to watch out of the house each morning feeling beautiful.The company also thinks that its customers are smart, and they are not required to be commanded around by a loud- mouthed sales helper. The company's main mission is to make their customers feel more confident each day; and to give its customers an authorizing beauty shopping experiences(Adore Beauty, 2018). Vision:The Company will bring the chief variety of brands so that the consumers can select what they require.The company aims that the customers adore all the beauty buying, so the company is continually working in the direction of creating the Adore Beauty experience as supportive as conceivable.The company will expand its customer base in the near future and will include more brands and products. Shopping with the company gives the customer an 4
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opportunity to have a beauty adventure. This is possible because the company offer gifts with buying, luxurious experimental sized products, and samples the company is focusing on always keeping its promises (Adore Beauty, 2018) Value statement: Our business process is directed by the following values: honesty and trust, Beauty, know-how and innovation, social responsibility, tradition, focus on the user and quality. Figure:Slogan used by Adore Beauty Source:(Adore Beauty, 2018) Slogan:The Company uses the slogan to communicate its purpose – “Pamper yourself in the comfort of your own home”. Market orientation:Market orientationis the Adore Beauty Company’s viewpoint which focuses on meeting and discovering the desires and needs of its consumers through its product mixture (Campelo, 2017). 5
Figure: Marketing strategy used by Adore Beauty Source: (Adore Beauty, 2018) The Company is adopting strategies of giving free samples with shopping in the order above $50 and also does same day delivery. For example, the company offers foundation shade matcher, offer live chats with beauty junkies, gives additional products on the; purchase of a single product etc (Adore Beauty, 2018). Product offered: 6
Figure: Products sold by Adore Beauty Source:(Adore Beauty, 2018) Skincare Makeup Hair Home & Fragrance Organic/Ethical Professional Gifts 7
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Travel(Adore Beauty, 2018) Role of brand:the role played by brand in marketing strategy is really significant. It helps in improvingtheunderstandingoftheconsumersregardingtheproduct.Itevenconfirms credibility. In addition to this, the role of the brand in marketing organizations strategy is vital. brand motivates the buyers and creates user's loyalty to the company(Adore Beauty, 2018). 8
Issue 2: Analyze each of the 5 C’s for the organization a)Company : Below mentioned is the SWOT analysis of the Adore Beauty company: Strength Made for all ages Organic products (Charter, 2017). Thecompanyisoneofthebiggest online cosmetic retailers in Australia Weakness High prices of products Onlyprofessionalscanbuttheirpro products Opportunity Increasing online shopping experiences International brands are available Offer free samples Threat Facescompetitionfromotheronline cosmetic stores. Makeup gets expired after a certain span of time so there is an issue of overstocking 9
b)Customer The company is serving mainly to the Australian people. But being an online store can target people from various parts of the world can visit and shop the products from Adore Beauty. The consumers expect to get the products at fair prices and with some discounts or rewards. The store isAustralia’s foremost online shopping spot forhaircare,makeup, and skin. The company provides same-day delivery to its consumers as a consumer is really impatient when it comes to beauty products. apart from all this, the company is also offering its consumer free samples and giveaways. (Zito, 2017). c)Collaborators Initially, the company merely kept two minor Australian brands which are Santali and Baiame. The foremost typical brand, Bloom was contracted in the year 2002. Later, the company performed an agreement withEstee Lauder Companiesto turn out to be an official agent forBobbiBrown, Estee Lauder, and Clinique brands. In the year2016, The Company becomes an authorized online seller ofDermalogical, Clarisonic,Lancôme,Benefit Cosmetics, Aesop, andKérastase. Further, In the year 2016, the company started increasing in workings in China through theAlibaba Group. The company stated Adore Beauty Affiliate Program which offers an inordinate partnership opportunity for persons who love makeup, skincare, our products, and brands. The company is in partnership with Facebook and Twitter (Tuten and Solomon, 2017). 10
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d)Competitors: The major competitors of adoring beauty store areMECCA BEAUTY, Sephora USA, Inc., and Ultra Beauty. The company being online store easily faces the threat of new entrants (Adore Beauty, 2018) e)Context: To have an understanding ion the context factors, A PESTEL analysis of Adore Beauty is sated below: Political:The political rules and regulations affect the company. The political wars reduce the sales of the product. Economical:Price rise or inflation rates have a direct influence on the sales and demand for the products supplied by Adore Beauty. Social:The social factors like the skin type, consumer preferences etc. must be acquired by the company. Adore Beauty being a beauty story has direct connections with the society Technological:technology plays a major role in the development of beauty products. Good technology must be used while by the adore beauty company when making beauty products Environmental:the company should consider environmental factors and should make organic products so that there is no harm to the environment (Ramli, 2017) Legal:the company should follow all the laws regarding online selling. breaching any law can put the company in trouble. 11
Issue 3: How does the firm go about collecting information What customer wants? The customers of the Adore Beauty require high quality of products at affordable prices. In addition to this, the customers want that the company rewards its loyal customers.The Adore Beauty company offers its customers various discounts and other benefits when they go shopping as the everyday customer requires certain benefits or discounts when they shop. For example2 free samples on orders above $50 (Adore Beauty, 2018). What competitors pose a threat? The competitors pose a threat to price and product varieties. The main competitors of the Adore Beauty areMECCA BEAUTY and Sephora USA.Both of these shops are making cheaper products and trying to influence the minds of the buyer. Further, the competitors have a greater variety of brands .it is important to identify the competition and assess their strength so that effective strategies can be developed by the company to overcome competitions (Kemna, 2017). How the context of business is changing The context of business consists of legal, environmental and social factors. all of these factors are changing and impacting the way in which adore beauty is managing its operation. Now the company is targeting selling products on the basic skin types. The company is developing contacts with communities and is donating in helping women. The company now takes into consideration al the ethical was and cybersecurity top maintains the safety of information for the consumers while shopping online. Hence the entire context of the adore beauty company has significantly changed in the past years (Bempong, 2017). What role do collaborators play in this process? The collaborators are suppliers, business partners etc. all these collaborators plays a great role in the marketing of the products. The collaborators mainly provide financial help to the company so that they can expand its range of products and market. In addition, to this, the collaborations help in bringing innovations and creativeness in the company. 12
Issue 4: Developing marketing strategy The marketing segments available to the Adore Beauty are with regard to the demographic segmentation (age, skin type, and gender) as the company is focusing on selling makeups and skin care products for women and men who are of all age and have varying skin types Choice of the target market –women and men as the company want to serve the beauty needs of both men and women.The primary target of the company is: a)Young people, men, and women, between age 18 to 25 b)Individuals who are looking to improve their skin A value proposition of target market – The value proposition of the target market of Adore Beauty is mentioned below: Value propositionsDescriptions More for morePremium products High prices to cover up the high cost More for the sameGood quality at lower prices Can be utilized to attractmore for a more positioning Same for lessOffers a good deal Cut cost of operations Les for much lessGiving satisfactory products at lower prices 13
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(Ter Heide and Gontarz, 2017). More for lessThis is the finest winni8ng preposition A positioning statement of target market- Figure: A positioning statement of the products sold by adore beauty Source:(Alford, et. al., 2017). The problem statement of the target market of Adore Beauty is mentioned below: 14
The company is unique because for the reason that it offers online selling of product which is different from the on store selling. In addition to this, the company is offering same-day deliveries with no shipping or delivery charges. Hence the company is positioned at a high rank in terms of products and services offered. The posting statement is true because the consumers have hot deals, offer, and discounts of buying. The Core belief of the company to serve top the best and offers high-quality products to its customers(Alford, et. al., 2017). 15
Issue 5: Developing marketing tactics By using Marketing theories- the Marketing Mix of Adore Beauty consist of 4Ps which are Product, Price, Place, and promotion. These 4Ps expandstheadvertising,distribution,and pricing,strategies which are utilizedby theAdore BeautyCompany. Figure: the 4P’s of marketing theory-marketing mix Source:(Haludin, et. al., 2017) Product: Adore beauty is a prime cosmetics shop in the Australian market. Adore Beauty has an extensive variety of services and products in its marketing mix, which are properly depicted in its stores and websites. Adore Beauty deals with the following products to its consumers: 1)Skincare: body and bath, moisturizer, serum, cleanser toner etc. 2)Makeup: blush, concealer, foundations, primers, gloss, lipsticks etc. 3)Hair, setting spray, shampoo, serum, conditioners, hair mask etc. 4)Home and fragrances: candles, home fragrances, lotion, hand cream etc. 5)Organic: o0rganic conditioner, organic shampoo, mask, Exfloiaters etc. 6)Professional: pro- based products, eye makeups etc. 7)Gifts: motherly, skin gift, makeup day gift, man gifts etc. 8)Travel: tools and brushes, fragrances etc.(Adore Beauty, 2018) 16
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Figure: Various products sold by adore beauty Source:(Adore Beauty, 2018) Price: Adore beauty is targeting its major consumers in Australiaand valued its merchandises accordingly. Adore Beauty also moves toward up several new collections and brands which are aiming at the working women and its prices are marginally higher as compared to the normal products. Also, Adore Beauty is having a completely high-class variety for glamour and model world. It has outreached to the people in rural and urban areas and henceforth its prices are fixed accordingly. As a consequence of the consumer welcoming pricing approach, Adore Beauty stands out as one of the foremost shops of cosmetics in Australia. (Patil and Bach, 2017) Place: Adore Beauty is accessed by people from the entire nation with greatest comfort and suitability. The company is having a stylish website.Adore Beauty is an Australia’s longest-operative online beauty department and an authorized seller of around 200 prime worldwide beauty brands. Adore Beauty being online store offers services at all the places. Promotions: 17
Adore Beauty is highly investing its money in promoting its business online. The company is using slogans like “pamper yourself in the comfort of your own home”. The company ishaving a facility team of beauty junkies who are ready to aid the customers with assistance on live chat through email, social media and phone.The company even adopted the idea of offering consumers with plenty of opportunities to have a trial before the consumer purchase with minis and samples. In addition to this, adore beauty is trying to persistently improve its website with nearby little apparatuses like foundation shade matcher, 2 free tasters on orders done above $50 etc. All these are the promotional strategies which are used by the company (Haludin, et. al., 2017). 18
Conclusion: The above report concluded the significance of marketing in the Adore Beauty company.It is really important for the company to identify its strength, weakness, and opportunities to develop and grow. In addition to this, the report concluded the importance of conducting SWOT and PESTLE analysis. Marketing mix strategies play a great role in framing effective and efficient marketing strategies. It is important to analyze the value proposition and positioning statement to evaluate and recognize the position of the company and its image in the global market. The major competitors of Adore Beauty areMECCA BEAUTY and Sephora USA. It is important to evaluatethestrengthofthecompetitors.further,thisreportconcludedthatcompany, competitors,customers,andcollaboratorsplayasignificantroleinframingappropriate marketing strategies for the Adore Beauty cosmetic shop. Hence, it is important for the company to develop marketing and promotional strategies. 19
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References: Adore Beauty., 2018. About us.Adore Beauty. Available at :https://www.adorebeauty.com.au/. [Accesed on: 18/01/2018]. Alford, J., Douglas, S., Geuijen, K. and ‘t Hart, P., 2017. Ventures in public value management: introduction to the symposium. Bempong, G.B., 2017.The effect of green branding on consumer purchasing behavior: A study of the Ghanaian cosmetic market(Doctoral dissertation). Campelo, A. ed., 2017.Handbook on Place Branding and Marketing. Edward Elgar Publishing. Charter, M. ed., 2017.Greener marketing: A responsible approach to business. Routledge. Haludin,D.C.,Sari,H.andPrihartono,B.,2017.OnlineMarketingMixforSmall Business.Advanced Science Letters,23(11), pp.10790-10793. Kemna, L., 2017.The body shop Indonesia(Doctoral dissertation). Patil, D.D. and Bach, C., 2017. Marketing-Mix For Strategy Building.Marketing,4(4). Ramli, N.S., 2017. Green marketing: a new prospect in the cosmetics industry. InSustainable entrepreneurship and investments in the green economy(pp. 200-230). IGI Global. Ter Heide, M. and Gontarz, K.M., 2017. A brand positioning strategy recommendation for an Asian cosmetics giant. Tuten, T.L. and Solomon, M.R., 2017.Social media marketing. Sage. Zito, S., 2017. Business model adaptation in the cosmetic industry: the Nyx Professional Makeup case. 20