The Director of the Asia Division has just tasked YOU with determining the best

Question

The Director of the Asia Division has just tasked YOU with determining the best line of cosmetic products to be in the initial launch a year from now, the best location for sustainable and organic ingredients, as well as the identification of the facility for production. For the potential product line; Which products (i.e. lipstick, foundation, eyeliner, etc.) would be best for the initial launch based on market analysis Provide the potential percentage of net profit of the above products based on industry average for each product Success of other cosmetic companies with providing these products that are sustainable and organic Once a potential product line has been identified you will now need to identify the best location to source the organic materials for your ingredients. research where current cosmetic companies are sourcing the materialsand provide explanation as to why this location would be the best source for the ingredients. should deliver a one paragraph summary for the results of each of the two actions.

Explanation / Answer

Let us consider that Asia division is a company that has created a brand concept in cosmetic line and now we are looking out for launching another project.

Mission
To establish Asia division as an important brand that represents cosmetic industry. We will accomplish this using high quality manufacturing and research, a creative marketing program, and a comprehensive distribution network using both brick and mortar retail outlets, internet presence, and a consumer catalogue.

By utilizing this multi-channel approach we will be able to reach the niche market for quality personal care products rapidly and efficiently. It will allow us to develop Asia division as the brand for quality skin and body care products within our target market.

Products
Skin and body care products will be developed and produced at our contract facilities in location X & Y. Production will be managed through our contract manufacturer .

Our pricing strategy is to position our products with a shelf price that is in the mid to lower quadrant of high-quality products and brands. We have accomplished this by making careful market comparisons and adjusting our packaging size.

We believe our ability to create future product opportunities and growth will only be limited by our imagination and our ability to attract talented people who understand the concept of branding.

The Market
Asia division will occupy a unique market position. No other brand offers a specialty line that includes skin care & cosmetics. However, within each category significant brands do exist. Quality and price vary widely within each group. Asia division will be positioned as a quality brand. The U.S. cosmetics market has seen large annual growth rates over the past decade.

In the skin care and cosmetics category the competition can be divided into three groups: Commercial--i.e. MAC, Origins, Philosophy, Erno Laslo and Shesheido; Clinical--i.e. Kiehl's, Clinique, Clarins and Dr. Hauscha; Spa--private label brands associated with spas.

The Customer
Because Asia division is a combined retail (direct to end user) and wholesale (to the end user through a reseller) strategy our target customer must be broken into two distinct groups, the end user and the reseller.

Our targeted end user is between the ages of 24 and 65. They are female urban professionals with at least some college. This consumer has an active lifestyle. They are concerned about social and environmental issues. Mind and body wellness are important to them. They belong to a health club; take yoga, pilate's or tai chi lessons. The effects of aging and the maintenance of a youthful appearance are a part of their life.

There are a number of new demand trends that have impacted the market and created greater opportunities. These trends include a returning to age old, time proven, natural remedies; more consumers that are looking for more holistic and healing benefits from her skin care products, and today's consumer being more informed and more inquisitive about the benefits of her personal care products.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.