Marketing plan for the Siberia organic cosmetics, страница 6


To assess an external market environment we also have conducted a PESTEL-analysis.

Political and legal factors

·  The European cosmetic standards working group’s cosmetics organic standards (COSMOS) was launched in early 2010 defining minimum requirements and common definitions for organic and/or natural cosmetic.

·  The cosmetic directive establishes a prohibition to test on animals (so-called testing ban) and a prohibition to market in the European community (marketing ban).

·  UK National Health Service and the provision of health care.

·  High taxes on most products imported to the UK.

Economic factors

·  A slowdown in consumer spending and curbed expenditure on personal care product is going to cause a long-term decline in the UK which is not expected to pick up until 2012 (Euromonitor, 2009).

·  A strong currency may make exporting more difficult because it may raise the price in terms of foreign currency.

·   As consumers increasingly look for better value, acceleration in beauty will continue

·  Higher national income growth may boost demand for a firm’s products.

Social factors

·  Growing demand for natural organic cosmetics in UK.

·  Health consciousness in the country

·  Carrier attitude in the UK influences the trend of looking good as a business woman. More sophisticated demand for natural cosmetic.

·  Green trends make consumers think more about the percentage of artificial ingredients in cosmetics.

·  Sales of skin care product for men are predicted to grow by 18% globally and by 12% in UK (Euromonitor, 2009).

Technological factors

·  The trend towards high-tech, eco-friendly formulations will continue to spiral.

·  The cosmetics market will still be important, with anti-ageing being the most demanding factor, increasing the R&D role in this sector.

·  Internet with its forums and blogs has a great influence on consumer attitude towards new product in this industry.

Environmental factors

·  Growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

·  Due to specified ingredients and way of transferring, the shelf life of product can be short.

·  Ecological trend has a great impact on consumer positive attitude towards organic and natural products.

Table 1. PESTEL-analysis


Basing on PESTEL-analysis we also have conducted a GRID-analysis, which showed the following strong influences between the PESTEL dimensions and 4Ps:

PESTEL dimension


Political and legal dimension

Product: increase in demand for premium products due to the customer income growth.

Price: changes in price due to the import taxes and other governmental regulations.

Economic dimension

Product: production in accordance to legal requirements.

Price: changes in price due to the customer expenditure fluctuations.

Promotion: an emphasis on the price-for-value in order to boost sales.

Social dimension

Product: launch of the men’s product line.

Promotion: an emphasis on 100% naturalness in the product positioning due to the ‘green’ trend and health concerns.

Place: distribution through the pharmacies due to customer health concerns.

Technological dimension

Product: improvement of production technologies.

Promotion: through the Internet and social media.

Place: distribution via e-stores.

Environmental dimension

Product: continuous improvements in production and packaging technologies in order to prolong product shelf life and reduce waste of materials.

Promotion: an emphasis on eco-image of products in order to improve customer loyalty.