Marketing plan for the Siberia organic cosmetics, страница 2

5.  Organic cosmetics are comparatively high in prices. Common people hold some idea that high price of a product ensures good quality. As organic cosmetics so not come in cheap rates, people believes in its capacity, get it and use.

All points from the above ensure the great potential for our product in the UK organic cosmetics market. We are entering the market in the period of high popularity of the market category, so that our company will get an opportunity to reach a high rate of sales volume.

Several years ago most demand for natural cosmetics came from consumers who suffered from ailments like skin irritation and rashes; however the consumer base has expanded in recent years. Natural cosmetics are gaining favour as they contain low levels of possibly harmful substances like parabens. Other consumers are turning to natural and organic cosmetics because of the functionality of natural ingredients and / or traceability of organic ingredients.

Potential customers of our product are both men and women. Men are also showing a great demand for organic cosmetics in the UK, because their skin is often sensitive and needs special care. There is a strong brand in the cosmetics market of the UK which has been created especially for men (BulDog). But this is the only one example of really strong competitors in the segment. Other competitors are selling products for women only and very narrow product line for men (in some case – no products for men at all).

The most important variables that have been used by our Group in the consumer segmentation process are following:

·  Demographic. People with high income level could be our consumers, because the product itself is expensive enough. The established threshold is more than 1500 GBP per person in a family.

·  Psychographic (life-style). Consumers of our product are eco-conscious. They buy eco-product and sometimes buy eco-friendly cars. People with high income also donate some money to eco-funds.  

It could be seen from the consumer segmentation that the age of the consumer isn’t important as well as sex. It happens because nowadays highly-qualified young specials could get high income level and afford buying expansive organic cosmetics. The market segmentation chart is presented below to show the competitors of our company in the UK market and our position in this chart:

Pic 1. UK cosmetic market segmetation (income level and eco-consciousness)

Competitive market analysis

To provide competitive market analysis we need to understand in which exact segment our company is situated. As we decided to provide our customers with 100% natural cosmetic, focus on different segments (cosmetic for men, women, products for bath and shower), and operate on market of United Kingdom, our competitors will be companies like Bulldog, Clarins, Yves Rocher and others.

Let us investigate important issues about Bulldog brand. It is UK company which is operating only in segment of cosmetic for men. Company would like to provide men with range of products:

·  Skincare

·  Wash

·  Shave

·  Shower

·  Eco-system (fairtrade)

 Their position is as follows: «We will always be open and honest about the ingredients we use and want to give you as much information as we can. You can see details of specific ingredients here or see our overall framework below». But they insist on non-testing on animals’ procedure and carrying about our environment business.

The leading advantage for this company is segment where it operates. Another crucial point is home-country of Bulldog company – United Kingdom, this creates a special attitude to products among consumers.

Another advantage is the price policy, which allows it to be in middle, but provide a competitive advantage, because of specific ingredients.