Detailed Business Proposal: Australian Organics Limited Analysis

This report presents a business proposal for Australian Organics Limited, a company specializing in organic skincare products, including soaps, shower gels, and shampoos for men and women, supported by continuous customer service. The mission focuses on offering organic skincare products with minimal environmental impact. The report includes a marketing analysis using Porter's Five Forces Model to assess the threat of new entrants, substitutes, the bargaining power of customers and suppliers, and competitive rivalry. Strategies are suggested to counteract threats from new entrants and competitors, along with pricing strategies to prevent customer poaching. The analysis highlights the limited number of organic skincare companies in Australia and the need to address the competitive landscape. The proposal is supported by several references related to skincare, marketing, and industry analysis.

Australian Organics Limited
- A Business Proposal

Background of Australian Organics
Limited
 Name of the company-Australian Organics Limited
 Goods: Soaps, shower gels and shampoos for men and women
 Services: Continuous customer support services

Mission
 Offering organic skincare products
 Cause minimum damage to the environment

Product (service offering)
 skincare products
 soaps,
 shower gel
 shampoos
 Services:
 Customer service

Marketing analysis
 Industry analysis:
 Australian Organics Limited should conduct an industry analysis of the
organic skincare
 The model which would be used to conduct the industry analysis is Five
Forces Model proposed by Porter

Marketing analysis contd…
 Threat of new entrants:
 New companies which would reduce the
profitability the existing companies would
be enjoy
 Company should make strategies to
counteract the threats
New companies
enter Australian
organic product
market
Paoch
customers
from AOL
AOL's revenue
falls
AOL makes
startegies
Reduce threats
form new
entrants

Marketing analysis contd…
 Threat of substitutes:
 The threat of substitutes comes from products using different
technology but capable of serving similar functions as the products as
under question.
 AOL should consider the prices of the inorganic products available in
Australia. The company should make its pricing strategies so as to
prevent firms manufacturing inorganic skincare products poach
customers its using pricing as a strategy.

Marketing analysis contd…
 Bargaining powers of customers: The
bargaining powers of consumers refer to
the capability of consumers exert
pressure on firms by exercising the option
of choosing to buy products from several
firms.
 As far as the number of organic skincare
producing companies in Australia is
concerned, it can be pointed out that the
number is limited.
Large
numbers
of
companies
marketing
organic
products
Customers
can
choose
from the
companies
Customers
enjoy
more
bargaining
power
compared
to
companies

Marketing analysis contd…
 Bargaining powers of suppliers:
 The suppliers of resources like raw materials, labour, knowledge and
plants are able to exercise high bargaining power over the companies
if the numbers of former is low.
 As far as suppliers of organic skincare is concerned, the number of
suppliers are low in Australia which are likely to enjoy high bargaining
power over the companies like Australian Organics Limited.

Marketing analysis contd…
 Competitive rivalry:
 The competitive rivalry refers to the competition which companies
receive from firms manufacturing similar products.
 As far as Australia is concerned, the market is already the home to
A’Kin which is a multinational company making botanical products.
 AOL should make strategies to counteract this competition it receives
from competitor companies.

References
 Bale, S., Cameron, J., Meaume, S. and Ingegneri, A., 2018. Skin care. In Science and practice of
pressure ulcer management (pp. 111-124). Springer, London.
 Gopaldas, A., 2015. Creating firm, customer, and societal value: Toward a theory of positive
marketing. Journal of Business Research, 68(12), pp.2446-2451.
 Krutmann, J., Bouloc, A., Sore, G., Bernard, B.A. and Passeron, T., 2017. The skin aging
exposome. Journal of dermatological science, 85(3), pp.152-161.
 Mihailovic, T., Vescovi, T. and Pontiggia, A., 2017. The Beauty Ideal in Chinese Luxury Cosmetics:
Adaptation Strategies of Western Companies.
 Santos, B., 2018. Changing the world, on soap at a time-Amual Soap (Doctoral dissertation).
 Ştefăniţă, Ş.U.Ş.U. and LEUCIUC, E.G., 2018. Romanian Pharmaceutical Sector-Between Challenges,
Opportunities and Market Threats.. Legal Aspects of the Trading of Listed Companies. LUMEN
Proceedings, 6(1), pp.83-89.
 Zhang, C., Kolte, P., Kettinger, W.J. and Yoo, S., 2018. Established Companies' Strategic Responses to
Sharing Economy Threats. MIS Quarterly Executive, 17(1).
 Zillich, O.V., Schweiggert‐Weisz, U., Eisner, P. and Kerscher, M., 2015. Polyphenols as active
ingredients for cosmetic products. International Journal of Cosmetic Science, 37(5), pp.455-464.

Thank You