Global Marketing Report: Analyzing UK and Poland Beauty Markets

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This report examines the global marketing strategies for a mobile beauty service, 'Makeup on the Move,' focusing on market entry and expansion in the UK and Poland. The report begins with an introduction to global marketing and the services offered by 'Makeup on the Move,' which include various beauty treatments provided at clients' homes. It then delves into a detailed analysis of the UK and Polish beauty markets, utilizing the PESTLE framework to assess political, economic, social, technological, legal, and environmental factors. The analysis highlights key characteristics of each market, including consumer behavior, industry regulations, and technological advancements. The report further discusses the significance of brand loyalty and the increasing demand for organic products. It concludes by justifying the selection of the UK and Poland markets based on factors such as product safety regulations, consumer spending trends, and technological advancements. The report provides a comprehensive overview of the beauty industry's global marketing landscape, offering valuable insights into market entry strategies and consumer preferences.
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Global Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
Identification and analysis of different characteristics of Poland and UK using various models
................................................................................................................................................3
2. Data and information related to UK and Poland................................................................7
3. The launch of product or services in UK market.............................................................10
Conclusion:....................................................................................................................................14
References......................................................................................................................................15
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INTRODUCTION
Global marketing is a process of adjusting the market strategy of company to sale product
and services to the customers and to adapt the situations of other countries. And it includes the
whole process of planning, producing, placing and promoting services of the company in market.
Make-up on the move is a mobile beauty service which provides beauty treatment to their clients
at their home. In this mobile beauty service beautician go to client's house and provide treatment
such as facial, Botox, massage, waxing, hair style, make-up products and services which relates
to beauty. It explains the different characteristics of the beauty market in the UK and Poland.
They provide their services to those clients who are not able to go in the spa, salons and parlour
like working women, young mother, brides and pregnant ladies (De Mooij, 2018). These services
help them to save their time in travelling and provide their services at their home to get them
more comfortable. Over 37% of the world’s launches in 2018 were in the UK, followed by the
US (25%) and France (15%) – according to Mintel Global New Products Database (GNPD).
Makeup on the move will segment its services on the basis of geographical location. They are
going to target UK and Poland. Main target of firm will be females ranging from the age of 16-
55. Firm is going to promote its products through social media marketing, radio and television.
In this report, Makeup on the move has focused on different market strategy and models in plan
to launch their product and service in selected market. They use the joint venture strategy to
introduce their services in the market. They cope up with different branded cosmetic companies
to purchase their products and provide their mobile beauty services to the customer (Gillespie,
Riddle, 2015). By gathering data and information of selected country where they want to provide
mobile beauty services to the clients at home and wants to become more successful. This report
describe about various idea through which they can reach to maximum clients with the help of
different channels.
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Identification and analysis of different characteristics of Poland and UK using various models
In order to identify the characteristics of different market Pestle analysis has been used. It
includes the following:
Political factor: In Poland, there is an act called Personal care product safety act which ensure
the safety of the product and services. And this act is approved by FDA (Fedral Food, Drug and
cosmetic act). Before promoting any product and services in Poland, Makeup on the move has to
report the statements of the products ingredients and need to registered themselves in this act of
government. In Poland, many beauty industrialist import products from other countries but has
followed all political and legal requirement because it relates to the safety of people's skin and
health (Alon and et.al., 2016).. As people are very conscious about their skin and looks and they
would like to prefer only those products and services which are not harmful for their skin. And
with the help of this act, Makeup on the move easily handles their clients as clients already know
that their products are safe to use.
Economic factor: In 2015, the beauty industry of Poland has generated $56 billion.
People are spending more money on products to clear their skin acne and hair problems. This
shows that people of Poland are very conscious about their look and skin. And recently beauty
industry has employed near one million people like hairdressers, barbers, manicurists and
massage therapist (Mustafar and et.al., 2018). So this provide more employment for the Makeup
on the move. And its help them to cover large areas of Poland and the employees of Makeup in
the move always make themselves available for their clients. This helps to generate more
awareness and marketing and people use their products which can enhance their beauty.
Social Factor: The brand of the product plays a very important role in beauty industry.
They become very happy when they use products brands according to their choice. And they
trust only their choice of brand. So this social factor actually provide a good impact for the
development of Makeup on the move. As through this, the beautician can easily get to know
about the choices of their clients and they make available only those brand of products which
clients wants to prefer.
Technological factor: In Poland, the internet has helping the beauty industry. The people of
Poland are very much attentive on online website and because of engaged schedule most of the
people using online apps through which they can get services and products on time. This online
technology helps in providing services and products at client's home. And people get all the
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details of products and services. So, this technological factor can help Make-up on the move
company to promote their services online where people visit their website to fix the
appointments. This could also help to reach maximum number of customer. Through this
technological factor, the beauticians easily find their client's home address with the help of GPS
system. And the beautician will be able to know about which service customer is demanding for
on a particular day.
Legal factor: In Poland, there are some regulations regarding the safety of cosmetic
products and to protect consumer which called health and safety act (Geiler and et.al., 2018).
This Act include proper labelling of the products with a complete list of organic ingredients, date
of expiry, warning statements and any other information of the product. So, adherence of this act
can help Makeup on the move to build trust of their clients. And this can generate more
appointments for the treatment. The beauticians also becomes more aware about their beauty
products.
Environmental factors: In Poland, the beauty industry has very much focus on to go
“Green”. They want their product packaging ozone-friendly which maintain the environment of
Poland. This factor ensures beauty industry to not use heavy plastic in packaging of cosmetic and
in skin care segments. In skin care, an ingredient called Microbeads were the sweeping issue in
Poland for a while which damages the skin cells. So this issue will lead Makeup on the move
beauticians to prefer organic product brands which do not harm the environment. Organic Beauty
products like facial creams and cosmetics which are free from harmful chemicals, making it safer
for the females to use it.
PESTLE ANALYSIS OF MOBILE BEAUTY SERVICE IN UK
UK is the 6th largest market for beauty and personal care. Brexit has impacted positively
on the beauty industry. The sale of beauty products is on peak in United Kingdom. The small
stuff like deodorants, perfumes, toothpaste and many more are also the part of this industry
which has been never notice. As the name suggest “the beauty products” just add the elegance
to beauty and make believe in yourself. Say as deodorants makes you feel fresh whereas the
toothpaste makes breathe better. Lips to look attractive where eyes somewhere more beautiful.
It’s just add up the confidence to your inner beauty. But it’s not as simple as it seems to. It offers
further evidence of the lipstick effect during period of economic turndown, consumer tend to
purchase more little luxuries like such as lipstick treatment and cosmetics.
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PESTLE analysis of UK beauty market:
Political factor: Strict regulation
In UK, the product safety is an important topic. Economic and political concerns in the UK and
other EU countries will impact the skin and personal care industry significantly because its
products are often considered luxury products, thus not consumers’ top priority. For ensuring
more safety of the product, a bill called as ' Personal Care Product Safety Act had allowed the
FDA to have “hands-on”b approach. The company has to state all the list of the ingredients are
that used in their products and registered manufacturer. Mainly what happen in this industry is
that either they import the ingredients from other countries are directly sell in foreign land. So
they strictly abide any of the political regulation.
Economic factor: Recession resistant industry
Now days the beauty product had become the necessity of the life same as the food and the
water. Beauty industry survived in the recession period also as the people of the country became
more price conscious and have bought the product which they need for their survival. It survived
the Great recession of 2008 as it turns out to the necessity. UK consumers has also showed a
tendency to spend a little more on their cosmetic products. As the global economic growth has
been at 2.7% while UK economic growth remained at 2%
Social factors: Brand adherence
Brand loyalty somehow plays an important role in capturing the attention of its buyers. There are
many brands making the same product but there is the difference between there sales. The reason
behind this is brand loyalty. But one bad review for the brand loyal customer will make
everything in vain. Consumers are increasingly concerned about the characteristics and
properties of their skin and trying to find the products that best suit their skin types in terms of
colors, tones, and ingredients. In addition, products made from natural ingredients such as aloe
vera and coconut, utilizing little or no preservatives or chemicals, have gained widespread
popularity
Technological factor: 24x7 access
The technological advancement has taken place in all the sectors of the economy whereas it also
had lead to the consumer advancement in the economy. Now the consumer can any time excess
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to the e-commerce website from any corner of the world and deliver to their doorstep. Decades
ago L’Oréal and Dove were the master of the market fighting for their race but now many more
has come to the race and technology has the crown for that.
Legal factors- regulation that abides.
There are the two leading laws in the UK which the beauty and the cosmetic industry has to
follow The Federal Food, Drug and the Cosmetic act (FD&C Act): It has the lookout for the
ingredients which are being used in the product
Environmental Factors- less worked attempts.
So the beauty industry nowadays is trying the heavy focus on the ' GO GREEN' concept. They
are making the severe attempts in reducing the content of plastic in the beauty products
packaging but their attempt is tempting to fail. The use of gases in their deodorants and the
ingredients in the shampoo and other product are somewhere have the horrifying effect on the
environment.
Justification of selection
UK and Poland market has been selected by the mobile beauty service as these countries has
implemented act related to safety of beauty products which means firm can only supply safe
services to consumers. Also after Brexit consumer has increased their spending. Also
technological advancement is much more in UK and Poland.
2. Data and information related to UK and Poland
Beauty industry involves cosmetics, skin care, hair styling, tanning salons, luxury spas,
shaving product, perfumes etc. There are huge opportunities in the beauty industry as various
new trends are emerging in the market such as organic products, Product and services focusing
on babies, ageing population and for men.
The beauty industry has a huge potential as it is able to capture the attention of both Men and
women. In this modern world, consumers want to have some time for there own and the salon
services at home provide them a break from the busy lifestyle and provide them comfort by
giving services at home (Dlamini, 2018). The industry is providing huge opportunities to the
people who are looking forward to enter in the industry.
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As the peoples are getting busier, the trip to salon by the individual has become a difficult
task in such case the companies are finding a huge opportunities in this market the companies are
providing beauty on demand services where a person can book for a salon services at home,
office or any other location. Such service provide convenience to customer. The salon services
include nail services, facial and body treatments, make-up applications, body waxing and
tanning. The service provided by the Salons are changing all the time.
Market analysis of UK
US and UK are the two leading markets for providing such services. The UK market has
witnessed a growth in the booking. In UK there are around 947 mobile beauty therapists. The
beauty therapists travel to the clients(Ismail, 2018). About 37% of facial skincare launches are
done by UK in 2018. UK is the region of beauty innovation where major global trends are
emerging. The UK brands has first understand that the importance of micro biome. In coming 5
to 10 years the skincare industry will grow.
Market trend in UK : It is expected that the service will continue to grow in the coming years.
UK beauty market is expected to grow by 21.1 % in the next 5 years. Skincare is the fastest
growing sub sector which is expected to grow by 27.9% in the coming years. The reason behind
this is people are getting more aware about their skin. Consumers are becoming more conscious
about the product they are using. Consumers are well informed about the use of product that are
less harmful for them. The awareness of knowledgeable customer are thus affecting the beauty
industry as a whole. Thus due to easy access to online information and websites the customer can
have easy access to the information about the product and services. Mens are also now using the
skincare products which is also one of the region for growth in sale of skin care products.
Teenagers are also contributing in the growth of beauty industry in UK. In 2017 the employment
in the beauty industry was seen to have a massive increase of about 40%. It is expecting that the
beauty specialists will share a strong share in the market by 2022(Hopkins, 2017). the beauty
industry is divided in four parts Beauty and personal care product which holds about 20% share
in the market, Spa and saloon services which holds 30% share while hairdressing and barbershop
services holds about 30% share in the market. The reason behind the increase in specialists and
the demand of them in the industry is many companies are expanding there business online and
by providing salon services at home. Many new entrants are also entering the market therefore
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there is a huge demand in the industry for Beauty specialists. The main reason behind the growth
of the industry is highly skilled professionals in the industry.
Target customer of the beauty industry : The beauty services can be provided in the wide area
because if the business is restricted to salon than it is more likely that the people living in nearby
area will visit the salon but as the “Makeup on move” is giving its services at home therefore the
services is not restricted to a particular region. The beauty industry remains the female
dominated industry about 78% of the women's are adding to the revenue of the industry while
men contribute only 41.5 %. Women aged between 18 to 34 contribute the biggest portion in the
beauty industry.
Economy of the UK : It was found that about US$ 4,197m is the revenue earned from the
personal care segment in 2019. And it is expected that this revenue will grow by 7.4% which will
result in US$ 5,579 m by 2023. on an average per user spend upto US$ 199.50. If the UK is
compared globally than the most of the revenue generated in this industry is by UK. As the
Economic growth is slowing down in UK therefore it is expected that the people will spend less
on beauty products however the it is predicted that the industry will grow about 0.6 % per year.
Competition in the market for mobile salons : As due to the low entry cost there is large number
of new entrant in the market as running mobile salons need the low investment. It is easier and
much cheaper to set up a mobile salon business.
Mobile salons offer various services such as haircutting, make-up, nail treatments etc.
Market analysis of Poland
Beauty industry has shown the tremendous growth in last few years. Along with make up other
services such as manicure, pedicure, haircuts and so on are also adding up revenue to the beauty
industry. Females add a huge profit to the beauty industry.
With about century of experience in the beauty industry the Poland is the global leader in
cosmetic segment. The cosmetics of Poland are very popular. Other than Lithuania Poland is the
only country teaching cosmetology at university level. In the recent years there is 10% increase
in the sales and production of the cosmetic products.
The beauty industry in Poland is expected to grow at an annual rate of 3.4%. Currently the
beauty industry is valued PLN 9 billion the figure has increased by 78% in comparison to 2002.
The beauty market has increased by 32% during last 15 year which shows that the market has
increased by 2% per year. It was expected that the beauty industry in Poland will reach to PLN
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20 billion in 2021 and by 6.2% in 2017. employment in the beauty industry is expected to be 43
thousand. The beauty industry in the Poland is increasing and thus increasing its share in the
market every year. The beauty industry in Poland brings up to Euro 29 billion.
The customers are paying more attention toward health therefore the attention toward the quality
is increasing by the customers. The beauty industry in Poland amounts to PLN 16 billion in year
2016. The Botox trend is increasing in the market it is estimated that compound annual growth
rate is 10.42 % in the year 2017-2023. The demand is increasing for such type of treatment it was
expected that the cosmetic market will grow high in Poland. The Poland beauty market does not
vary from the other European countries. The hair care products, skin care cosmetics and other
services contributes to the market share of beauty industry of Europe.
Competition in the market: With the advent of new technologies such as fillers, botox etc the
new companies are coming in the market. The entry of new beauty products such as dermal
fillers is also gaining the popularity in the market.
Geographical location: Poland is situated in the centre of Europe filling the geographical and
cultural gap between western and central east Europe. Due to the presence of Poland in the
centre of the Europe it provides the country advantage of easy access to clients, to suppliers and
raw materials needed for the production of cosmetic products.
The popularity of fillers is increasing in male population as well. It was expected that the dermal
filler market will reach USD 100008.4 million by the 2023. The market is growing at compound
annual growth rate of 12.1% by the end of 2023. It was expected that America will hold largest
share in the market of about US$ 3769.6 million in 2023. The fastest growing market of fillers is
Asia Pacific and it is expected to grow by CAGR of 13.1%. The men and women of age between
24 to 65 are the target customers of the market mainly the urban professionals. As maintaining
the effect of ageing and keeping oneself youthful is the part of their life.
3. The launch of product or services in UK market
The Poland and UK have great potential to start the new business. They offer different
facilities to the entrepreneur and the traders to start the new or different business. In UK market
government support the traders to start their business and provide different facilities like loan,
customer etc. UK market is the best market to launch the mobile beauty services. Mobile beauty
services are those services in which the beauty care company provide their service at home. They
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sent their make up and hair style artist to the client house and provided their services(How to
start a mobile beautician business, 2019).
The beauty care industry provide various services like hairdressing or styling, tanning, make up
artistry, nail technology, eyebrow, waxing, threading or micro blading, eyelash tinting or placing
eyelash extension, facials etc. at the home of their clients. The beauty artist are appointed to
provide their services. Client takes the appointment of their meeting through their mobile and the
beauty care company sent their artist.
Reason behind choosing the UK market
Wide scope: In UK market there are wide scope of growth in the beauty industry. It provides the
long therm benefit to the mobile beauty services. UK is the world 6 largest market for the beauty
product and services. There are 1800 different brands which sale their product and comes with
different innovative product and services for the customer. The UK population are highly
concern about their beauty and personal care and always need a place where they provide the
care to their body. The UK market provide the various place like parlour, spa, salons to the
customer.
Working women: The no. of working women tin UK is around 15.3 million who are above the
16-year age. The working women are engaged in their work life and unable to get to the salons
and spa for their beauty care. The mobile beauty service helps them to resolve their issues. They
provide the service at the home of the client so the working women can easily manage their work
and save their time in preparing themselves to travel and search the beauty spa. In mobile beauty
service they can choose the makeup and hair artist and the different brands' product for their
skin. It can also help them to relax their body by the body massage, head massage etc.
Trend: The changing trend of market also help in the growth of the business. The trend and
fashion of the UK market are continuously changing in the market and the behaviour of the
consumer are also changed according to the new market. The UK population easily adopt the
changes in the fashion. UK provides a great place to mobile beauty services to start their
business. The market trend force the beauty industry for the innovation of product and services.
The mobile beauty services easily established their business by innovating the new services like
new nail art, different hairstyle according to the different occasions, easy and quick hairstyle and
make up for the working women or college students etc. These help the mobile beauty services
to grow their business and get the highest benefit of the market.
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Purchasing power : The purchasing power of the UK consumer is high. They highly spend on
the beauty and health care product. They can get easily converted to the mobile beauty services.
Make up on the move establish their business through the Mobile beauty services in the UK
market because the UK consumer can easily purchase the services on also the high rate. The
purchasing power of the UK population make a huge impact on the growth of the beauty and
persona care industry.
Cheap labour : In UK market the labour are easily available on the cheap rate. It helps the make
up on the move company to start the mobile beauty services. They can easily get the beauty artist
in the market on cheap rate and sent them to different clients home to provide the beauty and
personal care services (Katsikeas and et.al., 2016). It also helps them to earn the maximum profit
and capture the customer with huge market. The availability of cheap labour attract the traders to
invest and innovate the new product. It also attracts the make up on the move company to start
their service of mobile beauty in UK market.
Different strategies used by the organisation to launch their innovation or project in the
market
Different organisation use the different strategies for the effective and efficient establishment of
mobile beauty services. They can use the joint venture, franchisee, low cost and global strategic
partnership strategy to launch their product in UK market (Lovelock and Patterson, 2015).
Joint venture: In joint venture two or more party are agree to combine their resources for the
new project, innovation or any business activity. In joint venture they share their profit according
to their agreed ratio in the venture agreement. It helps them to capture a larger market share and
customer. It helps the industry to introduce the new or innovative product and services in the
market with their existing customer. In joint venture the venture companies are responsible for
the profit, loss and the cost attached with the business (Tahseen, Karney,2017). They commonly
share the risk and reward of the organisation. It helps to create the synergy and take the
advantage of joint venture in business. It reduces the cost of production by providing the
resources for the project or innovation. It brings the new technology in the organisation with the
skilled labour.
Franchisee: Franchisee is a business in which a small business owner purchase the right to run
or use the existing established business. On using the existing business the franchisee has to pay
the fee and the share of profit to the franchisor. Franchisee sale the product on the brand name of
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