Detailed Marketing Analysis: A'kin Skin Care Industry Overview

This report provides a detailed marketing analysis of A'kin, an Australian skin care company specializing in natural and organic products. It begins with an introduction to the importance of marketing in business development, particularly within the context of A'kin's goals. The industry analysis section defines the skin care market, discusses its background, market size, and growth trends. It also identifies key competitors such as Jurlique and examines the competitive landscape, highlighting the challenges of competing with synthetic products and established brands. The report then delves into environmental factors that influence A'kin's operations, including government regulations, natural factors, and the impact of environmental concerns on consumer behavior. The report concludes by summarizing the key findings and providing a comprehensive overview of the market dynamics and strategic considerations for A'kin within the competitive skin care industry.

MARKETING

Table of Contents
1.INTRODUCTION........................................................................................................................1
2. INDUSTRY ANALYSIS............................................................................................................1
2.1 Market Definition.............................................................................................................1
2.2 Market background and history........................................................................................1
2.3 Market size.......................................................................................................................3
2.5 Key competitors................................................................................................................4
3 Environmental analysis.................................................................................................................5
4. CONCLUSION............................................................................................................................6
REFERENCES................................................................................................................................7

1.INTRODUCTION
Marketing is an important part of any organisation it helps in development of any
business organisation. It creates the path for company through which an institution can achieve it
goals. Marketing is business where customer needs and there satisfaction act as a major target. It
is that part which helps firms to reach its customer (Brandt, Cazzaniga and Hann, 2011). A'kin is
one of the top most skin care company in Australia. It was established in year 2002, and promote
the best organic and natural beauty products in Australia. This project studied about the of
market of A'kin company giving detail description of its market, competitor and environmental
factors which affects this company.
2. INDUSTRY ANALYSIS
A'kin is multinational skin Care Company of Australia. A'kin is known for its natural
botanicals, Company has big market spread all over the world and company outsources many of
its product from Australia to other part of world. The company have come to achieve great
success from the time it was established now it has become one of the major name among skin
care industry. According to report of IBIS, industry is considered as group of companies that
include primarily workplace programs in order to benefit the customers. It mainly focuses on the
development of measures so that long term sustainability can be taken into account (Jorgan.,
2016).
2.1 Market Definition
According to report of IBIS the market is considered as place under which number of
companies perform activities in order to gain benefits. It is also considered as place that allows
to have effective trade activities so that better outcome can be attained. In cosmetic market the
skin care products are being sold at different ranges so that better outcome can be attained. Skin
care market consist of different medical and cosmetic product. The medical product introduced
by this sector helps in tackling the skin problems such as rashes whereas the cosmetic product
are used to supplement beauty. This products help in improving the quality of skin by creating
product that help in rejuvenating cells and brightening skins (Jorgan., 2016). The face cream is
segment which lead the skin care market but in current time medical products has staggered
large share of this market.
1

2.2 Market background and history
With growing awareness about skin quality and looks, has increase the demand of new
industry in market. Rising spending power and mentioned factor is one of the main reason that
skin care company has emerged as another big industry in market (Caliman and Gavrilescu,
2009). About $350 billion global cosmetic industry comprise hair care, make up, skin care etc.,
but it has come forward that 30% of global sales is accounted under skin care products making it
the largest product class. With rise in no. of working women in 1960, the demand for this skin
care giving the biggest boost in the sales of this industry. With time the demand of this industry
in market keep increasing in 1970 the disco era was there giving full swing to this industry.
1990 brought the real change in this industry it was the initial stage of company which we see
today. Many trend wee see today start at this stage including brands, designer products etc. It
leads to the opening of big retail chains, and major change in the cost of this product.(Datta and
Paramesh, 2010) This year also witness the beginning of professional skin care.Alpha hydroxy
acids emerged and trigger the new wave of performance oriented skin treatment. In 2000 this
industry move toward natural and organic skin care product with growing concern of toxic
ingredients and valuing customer awareness. Media Hype help in escalation of this product also
celebrity support to this innovation lead to increase in the overall revenue of this industry.
Beside all this the ever present affect of pollution and other environment problem on skin
increase the consumer demand giving the needed boost to this company. In current time skin
care products has become part of people personnel life. A'kin also target these factor to sell there
product focusing on organic and natural product.
2

2.3 Market size
The market of skin care industry is increasing at rapid rate, This industry has emerged as
global market its not only spreading its wings in its own country but also in all other part of
world (Diepgen, 2012). It has emerged as leading skincare producing country with high revenue
and export value. It has also become prominent exporter of the best quality of skin care product.
In 2013 Australia total export was $526 million and in 2014 it was recorded $541 million total
growth of 3% in only one year.
2.4 Market Growth
The market of skin care organisation is growing at its maximum speed with different
marketing strategies, massive investment and development to create new product, which led to
3
Illustration 1: Use of different skin care product.
(Source: Cosmetics Market by Category 2014)

significant increase in sales (Kasprzyk-Hordern, Dinsdale and Guwy, 2009). From last five year
this institute is constantly developing. In 2012 the yearly revenue of these products was 500
USD Million which has increase to 1000 USD million, in current time, doubling the profits it
earns. Seeing the abiding effect this industry have it is predicted to reach more than 2000 USD
million by year 2022. Organic face creams and medical skin care valued at USD 1900 million in
2014., making it the largest organic sale product. Rising importance of organic products and use
of natural ingredients such as fruits and herbs in this product which not only protect skin but also
regenerate it, is expected to become the fuel for the growth of this industry for next seven year
(Keller and et.al., 2014).
2.5 Key competitors
The organisation faces competition from many other company that has come up in recent
times, creating major threat to the market of this industry.
The major competition this industry faces is from the synthetic product. (Liu, and Wong,
2013)These products are much cheaper in compare to this organic product. This product are also
4
Illustration 2: Market revenue of organic skin care products
(Source: Organic Skin Care Market Analysis 2016)

easily available in market in contrast to it Akin suffer from availability issue as they are in need
of constant supply of organic raw material to produce there product.
Jurlique has appeared as major competitor of A'kin. The company is known for its
unique bio intrinsic extraction process and bio-dynamic farming method to grow their own
ingredient to make skin care product. There technique of bio-dynamic farming method give them
edge over A'kin in market as they guarantee about the pureness of product they use, and also
help to become one of prestige skincare brand in just 30 years. Jurlique was already a big name
when A'kin started, it became hard for A'kins to compete with company who is already
established for 30 years. A'kin's have its market in different countries but Jurlique can be found
in more than 1200 stores in 21 countries making its presence known in not only US and Europe
but also in Asia. Covering more area than Akin. This company also have partnership and
collaboration with there European founders' botanist and horticulturist helping it to spread its
wings all over the world. It has been only few years since Akin is established, so its hard for it to
fight with company who has its root i this industry since 30 years along with it the company
already cover major countries and there market having great market which became threat to
Akin international market as it will difficult for it to pierce existing market and make place of its
own.
3 Environmental analysis
Environmental factors refers to the forces that affect firm ability to develop and maintain
successful customer relationship. Natural factors are those elements which have direct effect day
to day business activities.
A'kin skin care company is the Australian organisation that is selling herbal safe beauty
care products. A'kin skin care industry are well known for their pioneering and hare care
products that does not contain any harmful chemicals.
The cosmetic industry generally uses various types of machinery, chemicals, and other
equipment for giving beauty treatment to its customer. The various elements and chemicals used
by these industries may have negative impact on environment. The government has framed
various laws and regulation in order to eliminate damage to environment. Its is necessary for
skin care industry to reduce the effect of such environmental factor on daily operation of
cosmetic industry(Łopaciuk and Łoboda, 2013).
5

The various skin care industry that are using various harmful chemicals in their beauty
care products require permission from government agencies to regulate and keep track of
business activities. Somme purpose of these permit include establishing minimal standards for
air emission, following procedure for handling hazardous waste etc., (McClellan and Halden,
2010). Natural environment determines the types of activities that can be carried out by skin care
companies within particular region. Natural environment has direct impact on day to day
operations of A'kin skin care industry. In order to avoid any kind of penalties and risk it is
required by the company to comply with all rules and regulation of government. Natural factors
have direct influence on overall cost
of acquiring equipments. The skin care company that are using the hazardous chemical in their
beauty product are responsible for ensuring containments does not have any effect on natural
environment (Yeon Kim and Chung, 2011).
Many operators on beauty industry are using IPL and laser treatment do not have any
qualification and experience to do in safety. Department of health has revealed that government
is looking at introducing regulation surrounding the use of laser treatment technique for ensuring
that these machines are to be operated by skilled and experience person.
There are majority of beauty care industry those who are not complying with rules of
hygiene, training and wages etc. framed by government in order to prevent environment from
being degradation.
4. CONCLUSION
The above report give detail study of the market of skin care industry in context of A'kin.
It divulges in the history of its market giving the view of its market size and growth in current
year, also giving insight to the future this industry will have. It also discusses the key competitor
this company have to face and overcome. While discussing environmental factor which
influence this company.
6

REFERENCES
Books and Journals
Brandt, F. S., Cazzaniga, A. and Hann, M., 2011, September. Cosmeceuticals: current trends and
market analysis. In Seminars in cutaneous medicine and surgery (Vol. 30, No. 3, pp.
141-143). Frontline Medical Communications.
Caliman, F. A. and Gavrilescu, M., 2009. Pharmaceuticals, personal care products and endocrine
disrupting agents in the environment–a review. CLEAN–Soil, Air, Water. 37(4‐5). pp.
277-303.
Datta, H. S. and Paramesh, R., 2010. Trends in aging and skin care: Ayurvedic concepts. Journal
of Ayurveda and integrative medicine. 1(2). p.110.
Diepgen, T. L., 2012. Occupational skin diseases. JDDG: Journal der Deutschen
Dermatologischen Gesellschaft. 10(5). pp.297-315.
Jorgan., C., 2016. Industry will robust growth through wellness programs. IBIS world. 2(1). pp.
2-20.
Kasprzyk-Hordern, B., Dinsdale, R. M. and Guwy, A. J., 2009. The removal of pharmaceuticals,
personal care products, endocrine disruptors and illicit drugs during wastewater treatment
and its impact on the quality of receiving waters. Water research. 43(2). pp.363-380.
Keller, A. A., and et.al., 2014. Release of engineered nanomaterials from personal care products
throughout their life cycle. Journal of nanoparticle research. 16(7). pp.2489.
Liu, J. L. and Wong, M. H., 2013. Pharmaceuticals and personal care products (PPCPs): a
review on environmental contamination in China. Environment international. 59. pp.208-
224.
Łopaciuk, A. and Łoboda, M., 2013, June. Global beauty industry trends in the 21st century. In
Management, Knowledge and Learning International Conference (pp. 19-21).
McClellan, K. and Halden, R. U., 2010. Pharmaceuticals and personal care products in archived
US biosolids from the 2001 EPA national sewage sludge survey. Water research, 44(2),
pp.658-668.
Yeon Kim, H. and Chung, J. E., 2011. Consumer purchase intention for organic personal care
products. Journal of consumer Marketing. 28(1). pp.40-47.
Online
7

Cosmetics Market by Category, 2014. [Online]. Available through:
<https://www.alliedmarketresearch.com/cosmetics-market >. Accessed on: [18 Sept.,
2017].
Organic Skin Care Market Analysis, 2016. [Online]. Available through:
<http://www.grandviewresearch.com/industry-analysis/organic-skin-care-market >.
Accessed on: [18 Sept., 2017].
8