Client: Organic Formulations: Organic Formulations is a quality Personal Care Range formulated using Organic Ingredients, proudly manufactured
Question:
Client: Organic Formulations: Organic Formulations is a quality Personal Care Range formulated using Organic Ingredients, proudly manufactured here in Australia by Martin & Pleasance. 100% Australian Made and Owned using 100% recycled packaging, you can trust that you are doing the best for your health and for the environment. Organic Formulations contains all natural and certified organic ingredients that naturally cleanse and nourish your body. With over 150 years of commitment to Natural Health in Australia, Martin and Pleasance has recognised the importance of extending its philosophy of Integrity, Innovation and Quality. We are a company that is 100% committed to natural and sustainable health and lifestyle brands that positively impacts people's lives.
Caring for the environment is just as important to us as caring for your health and we pride ourselves on ensuring we conscious of our environmental footprint and how that will affect the beautiful country we live in. Choosing products from our Martin and Pleasance portfolio you have the guarantee that it is Australian made, developed and owned. Your health and our environment are our top priorities, and Martin & Pleasance is committed to providing premium products, which combine traditional and scientific knowledge.
Competitors:
Sukin(Competitor 1): Sukin is an Australian natural skincare brand offering a wide range of organic and natural products. They cater to the same target market and emphasize sustainable and eco-friendly practices in their product offerings.
The Jojoba Company(Competitor 2): This company specializes in skincare products with a focus on the use of jojoba oil, which is a natural and sustainable ingredient. They target eco-conscious consumers in Australia and New Zealand who seek organic alternatives
Chosen Target Market:
Eco-Conscious Millennials (Ages 30-39): They place a significant emphasis on sustainability, wellness, certified organic products, and plant-based options. This segment is digitally savvy and engages with brands through online platforms and social media.
For Organic Formulations, the primary target market will be eco-conscious Millennial women aged 30-39. This segment represents a promising and aligned audience for Organic Formulations, given that they are more likely to seek information from the internet(Kokoi, I., 2011) making them more likely to see Organic formulation's social media marketing, and they are more influenced to packaging and colour scheme making them more receptive to organic formulations aesthetic compared to older women(Kokoi, I., 2011). This along with more than half of women believing skincare with natural ingredients is more effective and 25% are willing to pay more for skincare with organic ingredients as well(Kokoi, I., 2011), makes this demographic the most suitable and attractive within the target segment for organic formulations to pursue.
Geographic: Australia, New Zealand population current segmentation: Australia, New Zealand aged 30-54
serviceable target market: Australia & New Zealand aged 30-54
demographics: age range: 30-54, gender: female, income: middle to high income
proposed target markets: natural beauty enthusiasts, eco-conscious millennials, health conscious
Psychographic: values sustainability, eco-conscious lifestyle, health conscious
5 Key Critical Success Factors
The critical success factors (CSF) are an indicator of strategic necessities and strategic strengths that players in the organic skin care and beauty industry should strive for to participate in that industry and become successful. The table below shows the five critical success factors (CSF) alongside the rationale behind each selected critical success factors (CSF) for the industry, independent from the client's context at this point of the report.
Element | Description |
Consumer-Centric Approach |
|
Effective Collaborations and Partnerships |
|
Digital and Omnichannel Presence |
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Innovation and Sustainability Focus |
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Market Research and Adaptability |
|
Overall, success in the organic skincare and beauty industry hinges on a combination of strategic necessities and strategic strengths.
Strategic Necessities encompass foundational prerequisites for industry participation, including a Consumer-Centric Approach that involves understanding and catering to evolving consumer preferences. Effective Collaborations and Partnerships with suppliers, distributors, and marketing allies are essential for sourcing quality materials, expanding market reach, and promoting products efficiently. Maintaining a strong Digital and Omnichannel Presence is non-negotiable as consumers increasingly favor online channels for skincare and beauty products.
On the other hand, Strategic Strengths empower companies to excel and outperform competitors. Prioritizing Innovation and Sustainability Focus enables differentiation, attracting eco-conscious consumers and enhancing market reputation. Proficiency in Market Research and Adaptability allows swift responses to changing consumer trends, identification of emerging opportunities, and compliance with industry regulations.
To succeed in the organic skincare and beauty industry, companies must embrace both these Strategic Necessities and Strategic Strengths, positioning themselves effectively in a dynamic and competitive market landscape.
How does your Organic Formulations compare against their top 2 competitors(Skin, and The Jojoba Company), on the 5 key success factors?
To analyse this, please Develop a Competitive Benchmarking matrix of your client against 2 very different competitors. For each key success factor, please explain why you have given the ratings in the matrix for your client and the Competitors. In the benchmark matrix use a scale of 0 to 5 for the range of importance to customer for each critical success factor with 0 being not important and 5. being very important
Furthermore, use the benchmarking matrix to calculate the numbers to compare organic formulations to the two competitors. Formula: importance to customer number x actual performance by company.
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey