MKT601 Report: External and Internal Analysis of Priceline Makeup

This report provides a comprehensive marketing analysis of Priceline Pharmacy's makeup product range in Australia. It begins with an executive summary, followed by an overview of the company and its products. The situation analysis examines macro-environmental factors such as political, economic, socio-cultural, technological, environmental, and legal aspects, along with micro-environmental factors including competitors, suppliers, distributors, customers, and the public. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report then details the target market and positioning strategies, followed by a marketing mix analysis covering product, price, place, promotion, physical evidence, process, and people. Finally, the report offers key recommendations for Priceline and concludes with a list of references.

Running Head: CONTEMPORARY MARKETING 0
CONTEMPORARY MARKETING
Student name
5/23/2019

CONTEMPORARY MARKETING 1
Executive Summary
Priceline pharmacy is the Australian based companies that are part of the beauty and health
industry. Company is offering various brands of makeup products like Revlon, Maybelline and
many more. The reported purpose was to analyze the external and internal business environment
of the company to develop a marketing mix for the product in Australia. After analyzing macro
environmental factors, it can be said that political and legal factors are key threats to the
company. Nevertheless, technological, socio-cultural factors can be a great opportunity for
Priceline in Australia.
Key competitors of Priceline are other retailing companies like Amazon, iconic, Woolworths and
other competitors would be the brand's showroom that Priceline is offering. The key suppliers of
the company are the manufacturers of the brand that the Priceline are offering to the customers.
The company is having more than 300 employees and the company has to integrate the
operations among offline and online stores.
The target market for Priceline makeup product range included Considering the age factor, the
company is targeting women of age 16 too old age women with their makeup brands suitable for
various skin types. Priceline is even offering makeup product under $10 with brands like
Covergirl, Rimmel. The target customer would be considering lifestyle as the major category;
this would include women spending time at leisure. The business women would also be targeted
by Priceline makeup product range. The key recommendation to Priceline includes Increase
online presence through promotion, and New Technology use.

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Contents
Executive Summary.........................................................................................................................1
Background to Priceline Pharmacy makeup product range.............................................................4
Situation Analysis............................................................................................................................4
Macro environmental factors.......................................................................................................4
Political factors........................................................................................................................4
Economic factors.....................................................................................................................6
Socio-cultural factors...............................................................................................................6
Technological factors...............................................................................................................7
Environmental factors..............................................................................................................7
Legal factors............................................................................................................................7
Micro environmental factors........................................................................................................7
Competitors..............................................................................................................................7
Suppliers..................................................................................................................................8
Distributors..............................................................................................................................8
Customers................................................................................................................................8
Public.......................................................................................................................................8
Priceline Pharmacy..................................................................................................................8
SWOT Analysis...............................................................................................................................9
Strengths......................................................................................................................................9
Weakness.....................................................................................................................................9
Opportunity................................................................................................................................10
Threats.......................................................................................................................................10
Target Market and Positioning......................................................................................................10
Target market.............................................................................................................................10
Positioning.................................................................................................................................11
Marketing Mix Analysis................................................................................................................11
1. Product...................................................................................................................................11

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2. Price.......................................................................................................................................13
3. Place.......................................................................................................................................14
4. Promotion..............................................................................................................................14
5. Physical evidence...................................................................................................................15
6. Process...................................................................................................................................16
7. People....................................................................................................................................16
Recommendations..........................................................................................................................16
References......................................................................................................................................18

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Background to Priceline Pharmacy makeup product range
Priceline pharmacy is the Australian based companies that are part of the beauty and health
industry. The company is a large beauty and health retailers established 450 stores of Priceline
by July 2018 in Australia. The parent company of Priceline is Australian pharmaceutical
industries. The retail industry in the nation is very competitive. For the marketing plan of this
company, makeup product range would be discussed specifically for this report. Company is
offering various brands of makeup products like Revlon, Maybelline and many more. The
reported purpose is to analyze the external and internal business environment of the company to
develop a marketing mix for the product in Australia (priceline, 2019).
Situation Analysis
Macro environmental factors
Political factors
Political factors are directly affecting the retail industry and Priceline overall. The government
support is essential for an organization to run in a country. The Australian factor included the
political stability of the nation. From the figure below it can be said that the nation is not so
stable, which can be a threat for the Priceline.

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Figure 1:(Source: (theglobaleconomy, Australia/wb_political_stability, 2019)
Another key factor included corporate tax rate that will affect the profit margins of Priceline. The
corporate tax of Australia is somehow stable and 30 % that denotes that the company profit
margin would not be fluctuating due to the tax rate of the nation (theglobaleconomy,
Australia/corporate_tax_rate, 2019).
Figure 2:( Source: (theglobaleconomy, Australia/corporate_tax_rate, 2019)

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Economic factors
The economy of the nation also affects the business to be conducted in a country. For instance,
the purchasing power of the customer depends on the disposable income in the nation and can be
presented through the GDP of Australia. From the graph, it can be said that the GDP of the
nation seems to be increasing, which indicates that the company has a great opportunity to
increase sales and attract more customers.
Figure 3:(Source: (theglobaleconomy, Australia/gdp_current_local_currency, 2019)
Socio-cultural factors
Considering the cultural factors, the western culture when regards to Make up usage, they use
makeup for the various occasion like a corporate meeting, wedding, night parties, get together. It
can be said that the people in the nation use make up for most of the time, which can act as an
opportunity for Priceline to offers various product range for various purposes. Moreover, the
population of the country is increasing rapidly which indicates that this factor is an opportunity
for the company (Gong & Yi, 2018).

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Technological factors
Australia is one of the advanced technological nations with people adapting to technology at a
rapid rate. This indicates that Priceline would have an opportunity to integrate technological
innovation to the company to attract maximum customers (Ho, 2014).
Environmental factors
The company various environmental factors that are associated with energy use, water scarcity,
and climate change. For this purpose, Priceline Pharmacy has been considered corporate social
responsibility in Australia. Some of the initiatives taken by the company include children first
foundation, Panda, Victor change, and fight Alzheimer’s (theglobaleconomy,
Australia/Energy_use_per_capita, 2019).
Legal factors
The legal factors associated with Priceline are privacy act, health and safety act that needs to be
abiding by the legal rule and regulation of Australia that can be a threat for the company. The
company is conducting business online too, which makes privacy and security act to be
considered specifically (williams, 2017).
Micro environmental factors
Competitors
Key competitors of Priceline are other retailing companies like Amazon, iconic, Woolworths and
other competitors would be the brand's showroom that Priceline is offering. Moreover, the
competition is very high in the retailing industry where the various online and offline store of
various retailers are offering makeup products (aboutamazon., 2018).

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Suppliers
The key suppliers of the company are the manufacturers of the brand that the Priceline are
offering to the customers. Through this, it can be said that the bargaining power is in hands of the
supplier to a large degree.
Distributors
The key distributors of the company would include online distributing partners to reach out to
the customer with a product at their doorstep. However, the company is conducting business
offline through retail stores in Australia.
Customers
The customers of the company for makeup products are individual women in Australia. These
could be from any age especially from young to old age (Gong & Yi, 2018).
Public
Priceline pharmacy is affecting the general Australian public and affects the lives and lifestyle of
the customers there. This would also include the industrial relation of the company that is quite
strong, the reason being the company would be able to associate with maximum makeup brands
to offer to the public.
Priceline Pharmacy
The company is having more than 300 employees and the company has to integrate the
operations among offline and online stores (priceline, 2019).

CONTEMPORARY MARKETING 9
SWOT Analysis
Strengths
 Various brands makeup products – Priceline pharmacy is offering various brand which
seems to be the strength of the company as the company is able to offer a variety of
products because of strong relations.
 Online retail services – The company is able to serve the customer through online
services that are reaching to the customer at the door step and providing them various
other features like filtering the products as per their needs, price, brand or all the of use of
the online services.
 Effective promotional activities – The company has been using good promotional
activities like loyalty programs to retain maximum customers.
Weakness
 High competition – the competition is being increased with the increase in the online
presence of brands as people can purchase goods from the brand‘s official site.
 Not accurate with product demand forecasting – This is one of the reasons that the
company has high days inventory when compared to other competitors.
 Need for new technologies Australia is a technologically advanced nation, which makes
the company to regularly update technology and need to invest additional amount for the
same (Judith & Steven, 2002).

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Opportunity
 The decrease in transportation cost to the company – Priceline can make its distribution
system more effective in order to decrease the cost to the company and increase the profit
margin.
 Product differentiation – This would include an increase in the category of the products
by the company through an increase in brand association and offering people with
maximum possible makeup brands (Hunt & Bicen, 2017).
Threats
 Increasing customer concern about their skin
 Change in interest towards more natural products (Bull & Sitas, 2016)
Target Market and Positioning
Target market
Target market can be classified into various segment bases that is
1. Demographic basis
Considering the age factor, the company is targeting women of age 16 too old age women with
their makeup brands suitable for various skin types. Considering income level, the company is
offering various ranges of products that are the company targets all income group. Priceline is
even offering makeup product under $10 with brands like Covergirl, Rimmel.
2. Psychographic basis

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The target customer would be considering lifestyle as the major category; this would include
women spending time at leisure. Moreover, modeling companies would be targeted to use the
makeup products. Moreover, the business women would also be targeted by Priceline makeup
product range.
3. Behavioral segmentation
This would include the usage level of the employees, which would be high and regular users for
Priceline to target the market. In the case of cosmetics, the company generally targets women
using makeup on a daily basis.
Positioning
The company position as the makeup product range through quality products at the effective
price range. Moreover, in the case of cosmetics, people are very concern regarding the originality
of the product. Priceline Pharmacy is positioning the brand as the original and best quality
product in order to retain customer trust over the company. Moreover, the company is also
positioning the product range as to get at discounted prices and at best offers by Priceline to
target individual women.
Marketing Mix Analysis
1. Product
Priceline pharmacy is offering various products, however the product line considered for the
discussion in this report included makeup product range. The product mix includes the makeup
considering various bases that is eye makeup, face makeup, lips makeup, and nails, body, and
makeup accessories. Moreover, the company labeling includes the labeling of the brand as