Marketing plan for the Siberia organic cosmetics, страница 4

External market analysis


It is not a secret that there are several stereotypes among European people towards Russia, especially Siberia. According to the way of their thinking Russia is a big village, not highly developed and people are strongly integrated with nature. Also to their mind there is a lack of high technologies and old-fashion and ancient methods are used in production. So our product is rare case when these thoughts can play positive role for promotion and image of product. It is a sort of benefit for product to promote in such way because according to these thoughts production is not so sophisticated and uses mostly natural components because usage and inclusion of man-made components is more complex. Therefore it will increase the reliance in real naturalness of our products even in reality to create 100% natural cosmetics company uses state-of-the-art technologies and has strong R&D department.

Moreover according to research in general women are ready to pay premium price for organic product. It concerns not just even cosmetics, but also food and so on. First of all they believe in its better performance and it brings health benefits. Besides women will to buy organic cosmetics for higher price because of environmental concerns. Moreover women who engage in organic cosmetic purchases are convinced that these products are very performant in addition to being secure because they are stronger and purer in active substances. Yet, below a minimum proportion of organic ingredients, they cast doubts on the effect on their health, their well-being and their beauty. They even might feel fooled when they overestimate the percentage of organic ingredients.[1]

Last but not the least premise is a strong ecological trend in the United Kingdom. People have started to think about ecology, environment and influence of pollution and artificial ingredients and food on their health. In big variety of having a rest UK residents are choosing eco-tourism more often.[2]In addition in the UK there are developed facilities for using electric cars in comparison with other European countries. This transport mean is in demand in this country and at least 12 types of electric cars are available now there for customers.[3] Furthermore the demand on eco-product is booming at the moment on this market. Customers more precisely pay attention on the package giving their preferences to eco-friendly one. And finally the UK citizens as well as the rest of Europeans prefer healthy life style, i.e. choose the clothes made with natural fabric, eat healthy food, and go in for sport and so on.[4][5]

Taking into account the arguments and premises above we can suppose that our product has strong potential on the UK market and will succeed.

Moreover according to the recent researches there is a potential on the market of natural cosmetics. First of all it is worth to mention that a growing number of natural cosmetic companies are building a pan-European presence by entering new country markets. Of course it can be seen like a threat for our company but on the other hand it means that there is a demand and this market especially UK market is not fully occupied by such companies.

A recent study by Organic Monitor finds European natural cosmetic sales will approach EUR 2 billion this year. Although growth rates remain healthy, competitive stakes are rising. Organic Monitor expects successful natural cosmetic companies to be those who can gain consumers’ mind shares as well as market shares. It has also mentioned the growth of 16% of natural cosmetic market in the United Kingdom. However natural cosmetics in this country  takes only 2% of all cosmetic market while last survey has found that 89% of buyers stated avoiding synthetic chemicals was important or very important to them so it can be assumed that this share will be growing.[6]

Five Forces Analysis