Detailed Analysis of AESOP Skin Care: A Marketing Report

This report presents a comprehensive marketing analysis of AESOP, an Australian skincare company. It begins with an executive summary and an introduction to AESOP's business. The report delves into a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats, followed by a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors affecting the company. The 7 Ps of marketing (Product, Price, Place, Promotion, Process, Physical Evidence, and People) are then examined to understand AESOP's marketing mix. The report also covers the company's segmentation, targeting, and positioning strategies, along with its objectives and a Porter's Five Forces analysis to evaluate competitive dynamics. The report concludes with a summary of findings and provides references for the information presented.

Report

EXECUTIVE SUMMARY
This report has covered issues that a skin care companies from their competitors. The company
taken in the report is AESOP which is a Australian company which make products by those
chemicals which help the skin to heal from various kind of damage. The company is known for
that nut to compete in the market the company has made various product so that awareness of the
company remain high in the market and they can get benefit from it. This report has covered many
topics which helps to understand what measures are needed to be taken before expanding into
different markets.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................3
SWOT analysis of AESOP Skin Care-.......................................................................................3
Pestle Analysis of AESOP..........................................................................................................4
7 Ps of AESOP............................................................................................................................6
Segmentation, targeting and Positioning of AESOP-.................................................................7
Objectives of AESOP-................................................................................................................8
Porters Five force Analysis of AESOP.......................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers. Because marketing is used to
attract customers, it is one of the primary components of business management and commerce.
AESOP is a proudly Australian owned company, providing science-based solutions to make
beautiful skin accessible to all. The AESOP product range focuses on active ingredients such as
Alpha Hydroxy Acids, antioxidants, Co Enzyme Q10, Hyaluronic acid and Niacinamide. This
report covers questions such as SWOT analysis of AESOP Skin Care, Pestle Analysis of
AESOP, 7 Ps of AESOP, Segmentation, targeting and Positioning of AESOP, Objectives of
AESOP
Porters Five force Analysis of AESOP
SWOT analysis of AESOP Skin Care-
Strengths-
Brand recognition is high of their products. They have been in Australia for very long. Products
of the company are made in a manner which makes the public feel sooth in their skin. Their
products are known to recover the skin damage from sun or make the skin prone to acne. Their
products consist ingredients such as Vitamin A and Vitamin C. That helps the customer to make
their skin feel light, young, healthier skin. In Australia their products are found in every
households. Company is looking to expand and extend their product line. They are planning to
make products according to the demand of different countries. (Lovelock and Patterson, 2015)
Weakness-
AESOP has made its name in the market but not at the level of their competitors. There are many
companies operating in this market such as Nivea, Vaseline etc which makes it difficult for
AESOP to expand and establish their brands in different markets. Company is facing many
problems related to copyright and trademarks even though they are protected from this measure

but their idea can be copied which will make the company loose their unique selling preposition.
Then people will prefer old brands which are already existing in the market. Another weakness
of the company is poor communication and network. The problem is that brand is only known in
Australia if they want to expand their business they need a chain of stronger network and other
brands make a problem to establish it. (Kotler and et,al., 2017.)
Opportunities-
AESOP has invested a lot in the department of research and development so that they can look
out and bring more and more innovation into the market. If they are successful then they will
gain most of the share in the market from their competitors. This can help the company to invent
products which can bring more cash cows for the company which will help the company to
increase their revenues. Opportunity for the company is to increase their network and
communication so that it will be easy for them to launch their products in different products.
Threats-
The company in which these products are mostly demanded are where winter arrives. That is
why it is a seasonal business as at the time of winter season company has to boost their
production because demand of the products is very high in where people has to face snow or who
lives in chilly areas. Otherwise it is just sunscreen or detan products. Company has to keep their
share of profits because at the time of winters more and more revenue is boosted but at the time
of summer season it is difficult for the company to maintain their operations as flow of the
money is less at that time. Another threat the company has to face is that company needs to bring
innovation into the market otherwise there is no scope to expand in the market. As companies
who are already existing in the market has a large customer base which is difficult to obtain.
(Kotler and et,al., 2018)
Pestle Analysis of AESOP
Political Factors-
AESOP has to sell their products and expand their business. Many people are concerned with the
safety of their products. That is why AESOP has to make sure that their products are not mixed
with any chemicals and they gets approved by FDA. Companies need to give their ingredients on
the back of their products. This is a severe concern as many company outsource most of their

work from different countries and they have to follow every aspect of different country otherwise
they don't get banned from serving in the country. (Kotler and et,al., 2017)
Economic Factors-
The companies which operate in this industry are immune to recession. Even at the time of
global recession which came in 2008 it was not that much affected. At that time customers were
buying things which comes under their necessity. People see skin care products as their necessity
and they consider it equally important as having a roof over their food or eating food three times
a day. In 2015 revenue generated by the skincare companies was around $11 billion which was
the second highest after beauty products. It has been observed that its not just women who are
buying these products men also spend their fair share of income on these products. (Wilson and
et.al., 2016)
Social Factors-
This aspect is concerned with brand loyalty as people who try out these products don't switch to
products of other companies. That is the reason behind the competition of companies who are
dealing in skin care products. To grab the attention of the customers and gather new customers to
buy their products. Companies play many tactics such as they introduce it with new and
attractive packaging, sizes of the container and sometimes they even change the font of the label.
Technological Factors-
This aspect has made it easy for the brands such as AESOP because earlier shopkeeper used to
keep only old and existing products but now with the help of online platform such as Amazon or
Flipkart companies can sell their products on them and provide them with a decent deal. For
companies such as AESOP it is difficult for them to get a slot in the shop. Companies such as
AESOP is also focusing on aspects where large companies such as Vaseline and Nivea are not.
With the help of online platform company can win the customers of international borders. (Shaw,
2016)
Legal Factors-
Companies can use bad tricks such as they can use the ingredients which are regulated by the
FDA but not approved by them. There are many laws such as the fair packaging and labeling act
and the act of federal food, drug and cosmetic. These type of laws are leading laws and
companies such as AESOP are concerned about it. If they don't follow it then they won't be

allowed to operate in the country and will damage the reputation of the company. (Tuten and
Solomon, 2017)
Environmental Factors-
AESOP is focusing on going green in any way possible. They are making their packaging of
products in that form which are eco friendly. There is a reason behind it as the products which
are packaged by this industry is mostly plastic which affects the environment in many ways.
AESOP has to look out for their ingredients also as they are using something called
“microbeads” and they were in headlines for a while. But the negative side of this thing is that
this beads are made of plastic and are not good for the environment. On the other hand it helps
in exfoliating dead skin cells from the face.
7 Ps of AESOP
Product-
AESOP make products which can be used to cure the conditions of skin which was affected by
dehydration. In Australia people also use it on skin with minor cuts and burns. Their list of
products include soothing gel, body scrub, skin perfection foundation, loose mineral foundation,
cleansing gel, anti aging cream, moisturizer which helps to keep the skin hydrated, daily defense,
complexion gel, radiance serum and many more.
Price-
AESOP has been able to penetrate the market of Australia because of their strategy of high
quality and low pricing. It has been tested among its competitors that the quality of the company
is much better against to what they are charging. Company has made their samples available in
the market which is of low price. Consumers can buy it test it and then move on to buy their
products in large quantity if they like the size of it.
Place-
AESOP is looking to enhance their operations outside of Australia as they want to increase their
revenue and gain their name in the market. That is why they are looking for a channel of
distribution which is cost and time effective which means it deliver the products in less time and
less cost. Company has already reached to take the help of online platforms so that they can
deliver in outer countries too but they are focusing on spreading their products to offline market
in countries apart from Australia. So that they can earn in different currencies. They have thought

of targeting different countries and make products according to their requirements. (Kerin and
Hartley, 2015)
Promotion-
AESOP is looking to hire companies so that they can set appropriate marketing strategies which
are suitable according to their products. They are taking many measures so that they cannot leave
anything behind. AESOP is thinking to use strategy such as promotion in trade, promotion
among consumers, taking the help of public relations through press releases, conducting events
such as conferences, online marketing, direct marketing and the last is advertising through print
media and through electronic media.
Process-
This aspect is concerned with positioning the product and AESOP has positioned their products
for the people of income level who comes under middle class. Above that company has to know
that how they have positioned themselves in the minds of consumers then only they can target
more and more people who are not from the income level of middle class.
Physical Evidence-
This aspect tells the physical evidence of AESOP such as packaging, layout of the stores, layout
of website etc. This aspect refers to how the product looks from the outside and what is the
theme and background of their stores. How does they present their products and the element of
the visualization all leads to this aspect. All of these aspects helps in building the customers of
the company and retain the image in the market. This all helps the company to have the
confidence and deal with their customers. (Kotler and et.al., 2015)
People-
In this aspect AESOP has to look for the people who work for the company and for whom from
which company is able to run their operations. To move forward and expand their operations
AESOP has to hire right people and employees with capabilities who can handle the factors
which affect the organization externally. AESOP is working on it so that before expanding into
new operations they are prepared for every outcome even if it is going to be negative or positive.
Segmentation, targeting and Positioning of AESOP-
AESOP is segmenting their products on the basis of demographic factors. They are making their
products specifically for both gender so that the question never arises that these companies are

only concerned with satisfying the needs of females. They are giving equal importance to both of
them. According to a study not only females but males too buy these type of products that is why
company is segmenting their products according to the needs of both of them so that they can
earn from both of them which will generally give them huge amount of profit. Also AESOP is
working on segmenting their products on the basis of area they are selling. The reason behind
this is different areas require different products. As every country has different conditions and if
AESOP wants to expand successfully they have to look out for these measures. Currently they
are working on knowing the different needs of different markets and which market will be
suitable to them. (Keegan, 2017.)
AESOP is targeting their products for the people who age between 20 to 45 years. The
reason behind it is that people who are going between this age period they think more of their
skin and are concerned it with protecting it from many factors. People of this age group think that
by using these products their skin will look good, healthier, young and fresh. That is why people
of this age group don't think on spending on these products which is beneficial for the companies
who are operating in this industry. That is why AESOP has targeted this age group so that they
can increase the awareness of their brand which will help them to increase their revenues. Also
the main target of the company is people who comes under middle class income. The reason
behind is that the population of these people is highest among all. That is why company has set
to target them because they always look out for new options in the market. If they stick to it then
they will become the loyal customers of the company. (Deepak and Jeyakumar, 2019)
AESOP is positioning their products under the segment of cost oriented as
they are working on making products with high quality and low cost so that they can attract more
and more customers. AESOP is looking to earning on sales instead of profit maximization. That
is why they have kept the prices of their products low but on the other hand company is never
compromising on their quality. This approach was taken so that they can target both rich and
middle class people.
Objectives of AESOP-
To increase the sale of new product by 20 per cent till the end of year 2020.
To enhance consumer experience by 10 per cent in upcoming 6 months.

To increase profitability by 20 per cent till the end of year 2021.
Porters Five force Analysis of AESOP
Competitive Rivalry-
AESOP has to face high amount of competition from other companies such as Nivea, Vaseline,
Ponds etc. Many companies are fighting to gain more market share from each other just like
AESOP. It is only because of the fact that they have invested hugely in the department of
research and development so that they can provide according to the needs of the market. AESOP
has invested in this department and before expanding they are trying to come up with an
innovation so that they can gain easy brand recognition in the market. Competitors of the
company have targeted people with small income level as that is a huge market to ignore. For
them company is providing their products in small packages which cost less so that they can
afford it. Due to diversity of products and high share in market of other companies who operate
on a large scale competitive rivalry is high.
Threat of New Entrants-
In this segment or industry threat of new companies entering into the market is not that much.
There are many reasons such as to enter in this industry capital is needed on a high level to
establish a business in this industry. Factors such as investing money in research and
development and cost of developing a existing product takes out a lot of money from the pockets
which is not affordable by everyone. Above all that to establish a presence, image or awareness
in the market AESOP needs to put money on promotion strategies such as advertising etc. Some
people don't think it is safe to change the brand as it is a matter of skin but in developing
countries AESOP has the opportunity to capture the share from big brands because people there
are price conscious. (Chaffey and Ellis-Chadwick, 2019)
Bargaining Power of Suppliers-
This factor is low in this industry. There are many people who are supplying in this industry and
to add if anyone of them tries to change the price cost of switching to another supplier is also
negligible. Impact of supplier in this industry is zero because many companies have locked their
suppliers by vertical integration. AESOP has to think before settling with the suppliers.
Bargaining Power of Buyers-

This aspect in this industry is high. Reason behind this is that the competition in this industry is
increasing with time and products which are same are available from many manufacturers.
AESOP has to keep this in mind that every product that they deal in is already under the market
by different brand which is already existing in the market. That is why this aspect states that
buyers have a higher power of bargaining over the company as they can switch to any brand
according to their preference. This way they can reduce the prices of the products by forcing
them to influence their demand. This aspect also has a different side and that is if client is
concerned about the skin then he or she will buy only quality products and never switch to other
brand.
Threat of Substitutes-
AESOP has to be concerned about this factor as many companies are affected by this aspect.
There are many products that can make the consumer switch easily to the product of another
brand. If user of AESOP is not satisfied with their products then they can switch to the product
from other companies. (Baker, 2016)
CONCLUSION
From the above studies it has been concluded that AESOP needs to analyze and evaluate
different markets and study their needs and wants. Company needs to do that it is necessary for
the company to look out these measures so that they can get the outcomes with positive results
and make their name in different markets with increase in revenue. This report has done to
analyze all these factors which can help the company or affect the company. Issues which were
covered to help them understand is by Porters five force analysis, Swot analysis, 7 Ps of
marketing and many more.

REFERENCES
Books and Journal
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Kerin, R. and Hartley, S., 2015. Marketing: the core. McGraw-Hill.
Kotler, P., and et,al., 2017. Marketing for hospitality and tourism.
Kotler, P., and et,al., 2018. Marketing management: an Asian perspective. Pearson.
Kotler, P., and et.al., 2015. Marketing. Pearson Higher Education AU.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Shaw, S., 2016. Airline marketing and management. Routledge.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
Wilson, A., and et.al., 2016. Services marketing: Integrating customer focus across the firm.