Comprehensive Market Analysis Report: Organic Facial Skin Care (UK)

This report offers a comprehensive market analysis of organic facial skin care within the UK. It begins by assessing market attractiveness, highlighting consumer trends toward healthy lifestyles and transparency in product ingredients, supported by a PESTLE analysis. The report then delves into industry attractiveness using Porter's Five Forces framework, evaluating buyer and supplier power, the threat of new entrants and substitutes, and competitive rivalry. Furthermore, the analysis explores sector market benefits and attractiveness, examining market segmentation strategies based on demographics and psychographics, while emphasizing the unique selling proposition of organic ingredients. Finally, the report assesses sustainable advantages through VRIO analysis, evaluating the value, rarity, imitability, and organization of resources to achieve a competitive edge. The report concludes by summarizing the opportunities and threats for organic facial skincare products within the UK market, emphasizing the industry's resilience and potential for growth.

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 possess a
"hands-on" method in order to confirm the
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, becoming price
conscious, but beauty products have become

MARKETING 2
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.
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 laws in the industry that must
be followed (PESTLE Analysis, 2018).
Environmental Forces
The industry of cosmetic is adopting green
and organic ingredients in the manufacturing
procedure because people are becoming more
conscious about their skin care. This will
give an advantage to the organic facial skin
care product to easily establish in the UK
market.

MARKETING 3
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
profitability of the existing players in the market. There are numerous entry barriers for the
new players in the industry. The required capital for establishing the business is very high and
to survive in the market it required strong brand identity.

MARKETING 4
Competition among Existing players
The intensity of competition in the cosmetic industry is very high. The list of rivals is
comprised of some key players of the industry such as L’Oreal, Maybelline, Iconic, Mak,
Body shop, etc. These players can give strong competition to the organic facial skin in
successfully operating the activities in the market, but with the help of its marketing
strategies and organic ingredients, it can attract many health-conscious customers from the
market (Cision, 2018).
The threat of Substitute products
The threat of substitute is low because there are generally two products that are considered as
the substitute for organic skin care products in the cosmetic industry. The two are home
remedies and cosmetics manufactured by using chemicals. This industry also eliminates the
switching cost for the customers (Statista, 2017). This is one of the advantages for the organic
facial skin to attract customers by highlighting the benefits of using natural and organic
products for the protection of their skin.
Sector Market Benefits and Attractiveness
Market Segmentation
Segmentation is the approach to divide the market into different parts of the market that could
be defined and accessed properly by the business (Economic Times, 2019). The segmentation
is adopted by the business because it cannot simply target the entire population because the
product of the company cannot meet the demand of all the people due to differences in their
demand.
The organic facial skin care will segment its market based on demographic segment and
Psychographic segmentation segment.

MARKETING 5
Under demographic segmentation, the market of the company will be divided based on age
and gender (Wedel and Kamakura, 2012). The business will manufacture facial skin products
for women of the age group of 22-30 and 30-50.
Under Psychographic segmentation, the company will target the market based on the lifestyle
of the people (such as health conscious), interest and opinions regarding using an organic
skincare product.
Organic Facial Skin Care
Most of the existing players in the same market are offering products that are manufactured
by using different chemicals for colors, flavors, etc. Therefore, in order to avoid such
chemicals that have a negative impact on the health of the user, the company decided to
create organic facial skin care that is manufactured by using different natural and organic
ingredients that rejuvenate the skin of the user. In addition to this, customers are today
moving towards natural and organic products in food as well as cosmetic such that they can
maintain their health and skin (Chandrashekar, 2014). This is the key advantage for the
company to attract health-conscious customers.
Market Trend
The present market scenario, customers are regularly searching for the products that are
ethically labeled and eco-friendly that are also free from any kind of harsh chemicals that can
have a negative impact on the environment as well as health. This has resulted in the
development of the market of organic skin care at the global level. According to the analysis,
the organic skin care market at the global level is anticipated to grow at the value of CAGR
of 7.8% in the period from 2018-2023 (Modor Intelligence, 2018).

MARKETING 6
Sustainable Advantage
Unique Selling Proposition
Unique selling proposition is the procedure that is comprised of the factors that differentiate
the product from other players in the market and support the brand in presenting a unique
personality in the market (Reeves, 2017). The Unique selling proposition of the Organic
Facial Skincare is the use of organic skin care products such as Jojoba Oil, herbs, aloe vera,
Malic Acid, Apple Juice, Goji Berry, Lemon, etc. in the manufacturing procedure of the
product.
VRIO Analysis
VRIO is one of the frameworks used by the businesses for the internal resource analysis that
creates a large part of the company’s strategic scheme. The basic strategic procedure that
could be adopted by any of the business begins with the statement of vision and endures on
through goals, external and internal business analysis, strategic execution, and strategic
choices (Barney and Clifford, 2010). The VRIO Analysis of Organic Facial Skin Care is
presented below:
Resources Value Rare Imitation Organization Competitive
Advantage
Product
Line
Yes Yes Yes Yes Strong
Competitive
Advantage
Organic
Nature
Yes No Yes Yes Sustainable
Competitive
Advantage
Low-Price Yes Yes Yes Yes Sustainable

MARKETING 7
Strategy Competitive
Advantage
Digital
Presence
Yes No Yes No Has Potential
Marketing
Strategies
Yes No Yes Yes Sustainable
Competitive
Advantage
Customer
Loyalty
Yes No Yes Yes Sustainable
Competitive
Advantage
Patent Yes Yes No Yes Strong
Competitive
Advantage
The organic facial skin care can attain a competitive advantage on the basis of different
resources such as its unique concept of adding unique ingredients in the products, different
product line, etc. Besides this, the company will be able to gain the competitive advantage on
the basis of its low price strategy that will support it in giving strong competition to its
potential competitors like a Body shop, L’Oreal, Maybelline, because all these players offer
their products at high cost. In addition, the company has received patent rights for its organic
facial products such that it can stand out from its competitions and fearlessly make use of
ingredients to produce products.
L'Oreal and Maybelline are the two players who are involved in offering a different type of
cosmetic and skin care products to the customers, but all of them are manufactured by using a

MARKETING 8
different chemical which can be harsh for the skin of the user. Hence, Organic Facial Skin
Care Company is planning to offer different products as well as safe products for the
customers.
With the use of different organic and natural products company can contribute towards the
sustainable environment which will be focusing on reducing the use of chemicals on the skin
and safeguard the environment.
Conclusion
The above report has analyzed in brief regarding the market attractiveness and industry
attractiveness of the cosmetic and skin care industry. The analysis has been performed in
order to evaluate the possible opportunities and threats for Organic Facial Skin Care product
in the United Kingdom market. From the analysis, it has been identified that the government
of UK is inviting businesses to adopt natural and organic measures to produce products and
operate a business in order to reduce the negative impact of harsh chemicals from the market.
Besides this, the cosmetic and skin care industry is the only industry that does not get
affected by the global economic downturn. This allows Organic Facial Skincare to operate
smoothly in the market and earn a profit by giving strong competition to the rivals producing
products through chemicals.

MARKETING 9
References
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Barney, J., and Clifford, T.G. (2010) What I Didn't Learn in Business School: How Strategy
Works in the Real World 1st ed. Brighton: Harvard business review press.
Chandrashekar, H.M. (2014) Consumers Perception towards Organic Products - A Study in
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52-67.
Cision (2018) Organic Skin Care 2018: Global Industry Forecasts to 2024 - CAGR Expected
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2019]

MARKETING 10
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