The Director of the Asia Division has just tasked the GoTo Consulting group with

Question

The Director of the Asia Division has just tasked the GoTo Consulting group 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; the group leader has asked each member to identify the following: 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 by each group member, you will now need to identify the best location to source the organic materials for your ingredients. The group leader has asked everyone to research where current cosmetic companies are sourcing the materialsand provide explanation as to why this location would be the best source for the ingredients. Each group member shall deliver a one paragraph summary for the results of each of the two actions.

Explanation / Answer

among all the products, all we prefers to production of Lipstic only. there is less competition in lipstic market, and very few players are there for this segment. the working women people group is increasing around the globe and they are in a position to spend huge amounts on personal and cosmotic care items. when the demand is increasing, it definitely help us to capture the market and we can stable in the market. The major producers of lipstic in the market are as follows:

The major market player in this segment is Revlon, if we focus on the market, we can easily grab the market share.

And the global producers, many of these producers are looking for majority of inputs from China only. there are many players and suppliers for organic and non-organic items in China. Through personal interaction, we can have a deal with the suppliers and all kinds of material also can be supplied by one supplier.

If we go with eyeliner, it is also having demand in the market and very few players like lipstic, in the market. But comparative with lipstic, the limitation of eyeliner, we can produce in only one color, i.e. black. Hence the potential market and the concentration may be limited in nature. we can not produce customized and variety of products in this segment. the few suppliers for this are existed in china only, and we can deal with them by negotiations.

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