Marketing Opportunities Analysis: A Case Study of Adobe Beauty Company

This report presents an analysis of Adobe Beauty Company's marketing opportunities, focusing on two primary strategies: selling their own brand and utilizing e-commerce. The study outlines the company's marketing process, detailing the identified opportunities, including manufacturing and selling their own brand, expanding through e-commerce using social media tools, and forming partnerships with other cosmetic companies. It evaluates the impact of these opportunities on the business, including financial projections for e-commerce implementation, profitability analysis, and market share estimations. The report also examines the company's marketing mix strategy, covering product, price, place, and promotion strategies. Financial data for the fiscal year 2012/13, including potential sales and profitability, is provided to support the evaluation of these opportunities. The conclusion emphasizes the potential of e-commerce over other strategies due to its higher profit potential.

Identification and Evaluation of
Marketing Opportunities: A case
study of Adobe Beauty Company
STUDENT ID:

Introduction
Discuss two marketing opportunities
Describes the marketing process of Adobe Beauty Company
Describe the effect of opportunities on the business
Shows marketing mix strategy

Two marketing opportunities
Adobe Beauty Company has identified the following marketing opportunities
◦ manufacture and sell own brand marketing opportunities
◦ sell products through e-commerce marketing opportunities
◦ partnership strategy marketing opportunities

Cont…
Identified the marketing opportunities
◦ create the huge number of suppliers in the specified country
◦ use e-commerce by considering various tools of social media like Facebook, Twitter, Google, Instagram
and YouTube.
◦ Adobe Beauty has deal with cosmetics companies to get higher benefits in limited time and cost.

Support of marketing
opportunities
The cosmetics market of Australia is increased by 7.76% in 2020.
The growth rate of cosmetic products is estimated 7.14% within the period 2018 and 2024.
Revenue of cosmetic industry has been increased by 0.2%

Describe the effect of
opportunities on the business
E-commerce approach is used to increase the sale of firm
E-commerce is effective for increasing product demand.
Partnership method is also practiced to increase profitability of firm.

Calculate potential sales with e-
commerce included in
FY2012/13
Financial year (FY) BBQs Outdoor Furniture BBQ Accessories Total
FY2008/9
25,000 13,000 42,000 80,000
FY2009/10
35,000 15,000 58,000 108,000
FY2010/11
40,000 17,000 68,000 125,000
FY2011/12
45,000 19,000 75,000 139,000
FY2012/13 52,500 21,000 88,000 161,500

Cont…Growth
Own brand
Own brand
Cash flow 2012/13 $7,084,800
Opportunity cost 8%
Present value of future cash flows $7,084,800 / 1.08 = $6,560,000
Present value of initial investment $6,884,714
Profitability index 0.95

Cont… Growth (E-commerce)
E-commerce
Cash flow 2012/13 $7,164,000
Opportunity cost 8%
Present value of future cash flows $7,164,000/ 1.08 = $6,633,333
Present value of initial investment $5,484,714
Profitability index 1.2

Cont…market share
Own Branded products
BBQs Outdoor Furniture BBQ Accessories
Number of buyers 30,000 13,000 56,000
Quantity 1 1 3
Average price $600 $850 $50
Projected number of units 7200 3120 13440

Cont… market share
E-commerce
BBQs Outdoor Furniture BBQ Accessories
Number of buyers
Quantity 1 1 3
Average price $620 $880 $55
Projected number of units 12,600 5040 63360

Cont…(profitability)
Own brand E-commerce
Sales volume (units) BBQ: 7200 BBQ:
Furniture: 3120 Furniture:
Accessories: 40,320 Accessories:
Price BBQ: $600 BBQ: $620
Furniture: $850 Furniture: $880
Accessories: $50 Accessories: $55
Revenue per item (Sales volume units* Price $4,320,000 $7,812,000
$2,652,000 $4,435,200
$2,016,000 $3,484,800
Unit contribution margin BBQ: $500 BBQ: $300
Furniture: $600 Furniture: $420
Accessories: $40 Accessories: $20
Total revenue $8,988,000 $15,732,000
Gross profit per item
(Unit contribution margin X number of units)
$3,600,000 $3,780,000
$1,872,000 $2,116,800
$1,612,800 $1,267,200
Total gross profit 2012/13 $7,084,800 $7,164,000
Total Fixed cost $4,884,714 + $1,000,000 + $500,000 + $500,000 =6884714 $6,884,714 $4,884,714 + $50,000 + $100,000 + $150,000 + $250,000 + $50,000 =
5484714 $4,884,714 + $0 =$4,884,714
Total Net Profit 2012/13 $200,086 $1,679,286