The aim of this document is to critically review the marketing and business of the company plan by producing a marketing strategy report (see Appendix). Afterward, we shall present a new strategy to address issues that have been highlighted during the audit.
This report contains a marketing audit of Clarins, an internationally acclaimed French company specialized in cosmetics. Based on this marketing audit, we have defined a series of key marketing objectives to be achieved within three years in order to improve Clarins group results and market penetration towards its competitors. Globally, the luxury cosmetic market is highly expensive. Multinational corporate companies support the main brands of the industry with huge financial resources. Despite the global economic downturn, the customers are splurging cash on beauty products and services. Moreover, some countries are economically and socially emerging, with new potential customers for cosmetics. The technological aspect is crucial in this industry as innovation is the key to success and as a response to new demands for natural substances, sustainable development and no animal testing must be found. Finally, we must note that the cosmetic industry is regulated by strict legislation and permanent controls from public authorities.
[...] Swot analysis Clarins is a cosmetics company in the upmarket cosmetics and operates in more than 150 countries. It is one of the largest skin care manufacturer, but it is facing volume slowdowns since a couple of years. For a better understanding, we are going to analyze Clarins Group by using the SWOT model (McCarthy et al., 1990), which define the main strengths, weaknesses, opportunities and threats of the organisation. STRENGHTS WEAKNESSES In general - In general In the marketing policy - In the marketing Policy FOCUS - FOCUS Brand and store positioning - Decline in AZZARO sales Market Leader in Europe - US law pursuits New launches OPPORTUNITIES THREATS Recent contracts and alliances - Chinese ban on direct selling Growth in demand for skin care - Cosmetic ingredients Growth of the cosmetic market - Rising cost for packaging New emerging markets - Risks on perfume strategy 1 STRENGHTS In general: Clarins benefits from good financial results, a high notoriety and a valuable historical knowledge. [...]
[...] For example, the average budget per person and per year in France is 162 euros (beauty, skin care, perfumes and hygiene) Perfume division We can notice that both men and women buy Clarins perfumes. Thierry Mugler perfumes are most popular to women especially top sales like Angel or Alien. Azzaro perfumes are mostly bought by men average years old between 40 and 50. Stella Cadente perfumes are mostly bough by women (no men range) but the consumer is younger than for the other product (between 25 and 35 years old) PORTER ANALYSIS We will use the model of Michael Porter (Dibb et al. [...]
[...] Core strategy 1 TARGET MARKETS In more than the usual target market, Clarins group needs to focus its efforts on three major targets offering a potential great development: Youngsters from 12 to 18 years old, dedicated product range for young Asian market, with dedicated products and a new range. Men from 25 to 45 years old with ClarinsMen and Azzaro new perfume COMPETITOR TARGETS L'Oreal: the company is the major competitor of Clarins Group in every country, with its up-market brands. [...]
[...] achieved within three years in order to improve Clarins group results and market penetration towards its competitors Continue the geographical expansion - Penetrate the South American market within 1 year. - Develop the distribution network with wholly owned boutiques. - Comfort positions in Asia with a product development. - Increase penetration in the Europe and the USA with a product development Extend the offer in terms of products - Create a new product range for Europe and USA: MyFirstClarins. - Create a new product range for Asia: Soleil Levant by Clarins. [...]
[...] It provides Clarins with effective consumers (need, demand and incomes). We can also notice since a few decades a new trend in consumption: a constant evolution in product and more and more choice everyday. Therefore, the customers are expecting industries to renew their products as often as possible, including for luxury brands Technological context The technological improvements in terms of products are quite important in the last few years, as huge amounts of money have been invested in research by cosmetics companies (aromatherapy, phytotherapy, plants Moreover, technologies influence the way to purchase cosmetic, as Internet for example has become a part of the distribution channel. [...]
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