Jurlique Marketing Essay

1.0 Executive summaryThe primary winding(prenominal) purpose of this business typography is to review the appropriateness of Jurlique ornamental yields for the Australian coffin nail grocery. The diagnose findings argon Australia is a huge foodstuff for decorative and toiletry assiduity, while it is abundant of competition due to the zero duty on Ameri trick cosmetics Jurlique is a well constituted disgrace for nearly Australia customers, however, it still demand uncommon selling points other than rude(a) ingredient to expand its commercialise sh ar. This is largely based on the growth investigate and development.2.0 Introduction2.1 PurposeThis subject atomic number 18a sets out to review the product for a prey segment.2.2 ScopeThis bill first describes the over all in all cosmetic industry, the foodstuff sh are of Jurliques peel off dish out products and the growth trend. Then the macro and micro-environmental analysis are conducted before the detaile d description of the products category. Following the target divider, some recommendations allow for be made.2.3 MethodologyThis report is created based on the theories from the textbook and the secondary selective information from websites. In rack upition, graphs and tables are manipulationd to assist the specific analysis.2.4 Assumption and terminal pointDuring the research, some information piece of tail not be accessed, however, the information faeces be found from others as the positive website which is formal and perusable to do reference.3.0 rendering of the industry3.1 Market size and market shareAccording to IBIS man (2010), cosmetics and toiletries industry are based on a solid foundation, with a booming prospect. He in like manner forecasts that global cosmetic industry will embrace an inspiring growth at an aver get on with annual lay out of 3.2%, within the period to 2012-2013.Graph 1 Global cosmetic industry performance and forecast(Data source IBIS World 2010)As a key player in the native cosmetics and scramble lot industry, Australian-owned Jurlique Company is a well-deserved market leader. It manufactures and distri savees a range of skin care and aromatherapy products as well as herbal medicines.Through multi-channel distribution network, the family enters into 20 different countries, where almost 60 company-owned concept stores and 5000 or so Jurlique-branded retail outlets are established ( ordained Website, 2012). Plus, department stores, pharmacies and health food stores, as well as aroma-therapy clinics and witness salons are also the sales channel of the companys 75% products.The differentiation in products themselves and diversification in marketing channels both contribute to the companys profit margins, which are thought to be more or less 30%, and annual sales, which are estimated to exceed AU$ snow million (RAPS, 2011).3.2 Macro-environment3.2.1 Overall cosmetic consumption trendGraph2 Total market sale of Austr alian cosmetic industrySource Australia Bureau of StatisticsThe cosmetic and saucer industry has experienced a constant growth the self-coloured world, and Australia is not an exception (see above graph). The Australia cosmetics and toiletries market judge is in govern of US$1.5 billion, with imports products occupying about half of that (U.S commercial message Service). This suggests that the domestic cosmetic brands are facing relatively fierce competition from cosmetic brands abroad.In wrong of market share of cosmetic industry in Australia, the U.S is still maintaining about 30 percent market share (U.S Commercial Service). There are several reasons for this. The U.S is well known for its large proportion of investment in cosmetics research and development Owing to the Free Trade Agreement mingled with Australia and the United States, the U.S enjoys zero general import duty on cosmetics and toiletries exported to Australia.3.2.2 demographic factorThe cosmetics and toiletr ies industry in Australia is closely associated with the peoples paid increasing aid to personal way, both for women and men. The emergence of an aging tribe in Australia, along with a raised awareness of health and environmental issues, stimulated to a accredited extent the consciousness of the importance of products that cover a youthful appearance.For baby boomer generation which is experiencing life changes brought by aging, they film shown increasing interests in cosmetics and toiletries, not altogether to enhance their appearance but also for other reasons. A simple example is that they use foundation with treatment ingredients to protect their skin against harmful UV rays, and to swear out a variety of skin problems.3.2.3 Cultural changesAs the consumer attitude piecemeal changes, people are more in favor of the natural and proficient products in cosmetic market. Australia consumers are not exception. They respected green-added cosmetics, namely, they are more and more in pursuit of natural, pollution-free cosmetics with no chemicals added. Consequently, the products of chemical-free will gain competitive advantages in Australian cosmetic market to meet the consumers psychological needs for green, organic skin care products.3.3 Micro-environment3.3.1 OrganizationJurlique is a Sydney-based cosmetic company, shoot a line its skin care products, all of which are made in the most natural way. Funded in 1985 by chemist and also a doctor-Jurgen Klein, the beauty company was characterized by farm system, which makes the fact possible that all ingredients are cultivated and mental processed in the Adelaide Hills, and then distributed in Australia and abroad (Pola Orbis, 2011). The companys mission is to generate sustainability and create mutual benefit surrounded by people and nature, with its slogan Purest Skin Care Products on Earth with with(predicate) Nature, Science and Innovation.Jurlique, with its headquarters in Mount Barker in the Adel aide foothills, has planted good names for its natural and chemical free products in Australia. On November 30, 2011, Jurlique supranational announces acquisition by POLA Orbis, which is the fourth leading cosmetic company in Japan and has been developing its business model near the cosmetics industry with a recurring theme of beauty and health since its found in 1929. This acquisition makes Jurlique brand well positioned along with a soused presence and compelling momentum in key strategic markets, with a focus on Asia, the Americas and the home market Australia.Table 1 Changes in Jurlique shares held by POLA as a result of the AcquisitionSource POLAs Share Purchase Agreement3.3.2 CustomersCustomers of Jurlique are mainly feminine who compensation a certain(a) attention to their skin condition and are unbidden to buy skin care products at a reasonable price. In addition, customers of Jurlique need to be aware of the importance of natural ingredient for their skin. As spa gr adually gains popularity, Jurliques target consumer will be expand to whoever enjoys a natural and genial spa.3.3.3 PublicsRising concern can be noted by Australian consumers of any cosmetic product regarding health and safety. Greater attention is also being given to natural products in cosmetics. Innovative beauty salon products that incorporate premium and organic ingredients are given warm welcome. This can explain that sales of Jurlique products using natural ingredients are showing steady growth.3.3.4 CompetitionsDominated by industrial players kindred Luxus, P&G and Unilever in Australian cosmetic and toiletry industry, the main high-end competitive brands in the country include well-established world-famous brands such as Lancome, Estee Lauder, Clinique, Shiseido, Christian Dior, Giorgio Armani, Bobbi Brown and Clarins. Middle end brands contain Revlon, Max Factor, LOreal and Olay (U.S. Commercial Service). In addition, newer brands from Japan and Korea are very popular am ong Australian vernal girls such as DHC, Fancl, HABA, Mioggi, Lanegie, Skin Food.4.0 ProductsJurlique products can be classified into sextet categories by the companysofficial website.Table2 Jurlique product line (from Official Website)Product lineProducts detailed by categorySkin care linecleansers, deep cleansing, refreshing, recovering, renewing, moisturizing, nurturing, special care, eye and lip care, tools and accessories Body carehand care, body lotion, body oils, shower gelsHair careshampoo, tomentum conditionersBaby carehypo-allergenic and pH balanced baby care products substantive oilscomprises pure essential oils, essential oil blends, and carrier oils Seasonal offerscomprises seasonal worker sets of products containing specific blendsWithin all these excellent natural products, Herbal convalescence Gel needs to be mentioned more. Belonging to skin care category, it is a light gel concentrate for day and night, which contains natural antioxidants and is suitable for al l skin conditions, including oily and problem skin. It works deeply to strengthen and amend hydration, which can help maintain ideal skin moisture balance.4.1 collar levels of the products4.1.1 Core levelCore level of a product represents the basal consumption benefit consumers can get from the product. Namely, it is the function or strength of the product. For skin care products made by Jurlique, they can not only meet the very basic requirements of target audience for better their skin conditionwith its natural ingredients, but they also can realize the process in a sustainable manner.4.1.2 Actual levelApart from the natural and high-quality characteristics, Jurlique products also have a mature packaging chain, which contains three sets of processes primary packaging, secondary packaging and third packaging (Jurlique International, 2011). All products produced are jam-packed into tertiary packaging for shipment from production to logistics, and from logistics to distributors o r direct to consumers. The tertiary packaging utilized is common throughout the supply chain where possible. fitting like the packaging, labeling considerations will continue to express the green concept. For example, the use of relevant recyclable symbols such as the green dot and inclusion of the natural identification will serve as an important tool in marketing strategy.4.1.3 Augmented levelCustomers who buy Jurlique products can enjoy comfortable service from the company. Jurlique has its mature online service and various distribution channels. Products sold through every channel will be delivered timely. In addition, anyone who is interested in this brand can sign up for emails, and become a Jurlique insider. The insiders can get the professional advice in terms of skin care and also free gifts from the company.5.0 Target segment5.1 Demographic segmentationThe studyity of target customers Jurlique are females, specifically Generation X and Baby Boomers who are feeling for b eauty products which can help reduce wrinkles, better skin raunchy and contain natural or pure ingredients (Phosphagenics Newsletter, 2009). In Australia, Women between age 25 and 39 staying workplace have the strongest secure power. They arevalue and quality conscious, prepared to pay a little more for a prestige product that works. For those female seeking natural and quality products, Jurlique is doubtlessly a perfect choice whose claims match product performance.5.2 Behavioral segmentationDifferent people seek different benefits from Jurlique products, and according to the product itself and the behavioural habits of Australian consumer, the market can be segmented into 1. Single brand dedication it is of difficulty to break the previous loyalty for a certain brand, however, it this group have faith in Jurlique, the loyalty will wear long. 2. Multiple brands loyalty this group is willing to try new brands, but the loyalty can not be assured. 3. No brand loyalty this group te nds to be price sensitive or efficiency sensitive.5.3 geographical segmentationIn geographical version, the whole Australian market can be segmented into several divisions.The five biggest cities in Australia Sydney, Melbourne, Brisbane, Perth and Adelaide should be the study target markets which all have advantages of large amount of working female and strong purchase power.Cities with more than a hundred thousand populations in New South Wales, Queensland, Victoria and Tasmania etc will be the second largest target markets for Jurlique.The remaining cities with less population but relatively big purchase power should also be considered.5.4 PsychographicBased on peoples life style and value, the market can be segmentedpsychologically. The research concerning peoples life style should be based on AOI 1. Activities this refers to where and when people use their time on skin care. 2. Interests how much attention would people pay to the change of skin condition. 3. Opinion this refer s to what people figure of the brand.6.0 Key needsThe mainstream trend in Australian cosmetic and toiletry industry is that consumers are willing to pay the higher price for those technologically advanced products because they perceive the ingredients to be expensive, uniquely manufactured based on intensive research and develop. Therefore, the innovative initiative of Jurlique based on its science lab R&D is in need.In addition, market for color cosmetics, pilus care products and beauty salon based products unsaturated to a certain degree. This is mainly for the reason that those products are not the mainstream business scope for the major competitors from the U.S and France. Consequently, Jurlique could stretch its product line or emphasis the manufacture and market capture of those products.7.0 Recommendations1. Adjust the shift of distributional channels in AustraliaThe retail of cosmetics and toiletries in Australia has experienced a remarkable change in youthful years. Sup ermarkets are beginning to play a major role in selling cosmetics and toiletries, replacing traditional retailers and pharmacies (Market Overview, 2010). Major supermarkets such as Coles, Safeway and Woolworths have become the sites where 45 percent of cosmetic products are sold in Australia. Pharmacies and cosmetic retailers are showing more and more presence in cosmetic market. Jurlique should take this change into account when it come to adjusting marketing strategy.2. master technologic certification shows its increasing importanceIt should be realized that natural or organic ingredients are no more than distinctive selling points which add value to the products. Consumers today tend to expect assurance through product certification, especially for new or unfamiliar products, just as Jurlique for Australian consumer. Therefore, it is highly recommended that Jurlique obtain professional certification from authorized certifiers to enhance product credibility.8.0 ReferencesIBIS Wo rld (2010). Cosmetic and Toiletry Retailing in Australia, Melbourne Arna Richardson, Exporter Guild, Australian, Organic Market, P11(ix), April 2011Jurlique official website. Retrieved from http//www.jurlique.com.au/U.S Commercial Service. 2010, Retrieved from http//www.trade.gov/cs/RAPS (2011). Beauty environmental scan. http//175.107.146.153/rapstcco/wp-content/uploads/2011/12/Beauty-Industry-Environmental-Scan-2011.pdfPhosphagenics Newsletter. (2009). Retrieved from http//www.docstoc.com/docs/45622966/PHOSPHAGENICS-concealerAsia-Pacific Cosmetics and Toiletries Market Overview. 2010Pola Orbis (2011). POLA ORBIS HOLDINGS enters into a Share Purchase Agreement to acquire all outstanding shares of Jurlique International Pty LtdR.2011.New Zealand Trade and Enterprise (2011). Export guide Organics and green market in Australia.Jurlique International (2011). Australian packaging covenant action plan. Retrieved fromhttp//www.packagingcovenant.org.au/documents/ agitate/Jurlique%20Interna tional%20Pty%20Ltd%20AP_10_15.pdf