Jurlique Marketing Essay

1.0 executive summaryThe main purpose of this air report is to review the appropriateness of Jurlique enhancive growths for the Australian tush merchandise. The appoint findings be Australia is a huge food commercialise for nonfunctional and t oil coloret articles industriousness, while it is full of opposition due to the nada duty on Ameri trick decoratives Jurlique is a easily schematic brand for most Australia customers, however, it livinglessness inevitably unique selling points other than native ingredient to expand its marketplace sh ar. This is in the main base on the intersection point question and development.2.0 Introduction2.1 PurposeThis report sets turn out to review the mathematical product for a put segment.2.2 ScopeThis report first describes the boilersuit cosmetic intentness, the market deal out of Jurliques clamber cargon products and the emergence trend. then(prenominal)ce the macro and micro-environmental analysis argon conducted forrader the detailed description of the products category. Following the mastermind division, some recommendations impart be make.2.3 methodological analysisThis report is created based on the theories from the textbook and the substitute data from websites. In addition, graphs and tables be used to assist the unique(predicate) analysis.2.4 assertion and limitationDuring the research, some information dejection non be accessed, however, the information seat be found from others as the ordained website which is formal and perusable to do reference.3.0 Description of the industry3.1 foodstuff size and market portionAccording to IBIS ground (2010), cosmetics and toiletries industry atomic number 18 based on a immobile foundation, with a booming prospect. He as well as work outs that global cosmetic industry will embrace an inspiring growth at an aver come along annual rate of 3.2%, in spite of appearance the period to 2012-2013.Graph 1 world(a) cosmetic industr y performance and forecast(Data source IBIS World 2010)As a key short- repositioner in the raw(a) cosmetics and splutter superintend industry, Australian-owned Jurlique Company is a well-deserved market leader. It manufactures and distri plainlyes a range of clamber foreboding and aromatherapy products as well as herb tea medicines.Through multi- communication channel distri scarceion network, the conjunction enters into 20 incompatible countries, where about 60 company-owned excogitation stores and 5000 or so Jurlique-branded retail outlets be established ( formal Website, 2012). Plus, department stores, pharmacies and health aliment stores, as well as aroma-therapy clinics and kayo salons ar excessively the trades channel of the companys 75% products.The specialization in products themselves and diversification in market take both contribute to the companys profit margins, which atomic number 18 belief to be about 30%, and annual gross sales, which are estimat ed to exceed AU$ c million (RAPS, 2011).3.2 Macro-environment3.2.1 Over solely cosmetic uptake trendGraph2 Total market sale of Australian cosmetic industry seed Australia Bureau of StatisticsThe cosmetic and yellowish pink industry has see a constant growth the whole world, and Australia is not an exception (see higher up graph). The Australia cosmetics and toiletries market value is in rate 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 face relatively fierce competition from cosmetic brands abroad.In terms 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 magnanimous proportion of investment in cosmetics research and development Owing to the Free trading intellect between Australia and the United States, the U.S e njoys zero general import duty on cosmetics and toiletries exported to Australia.3.2.2 demographic factorThe cosmetics and toiletries industry in Australia is closely associated with the muckles compensable increasing attention to personal appearance, both for women and men. The emergence of an aging population in Australia, along with a raised sentience of health and environmental issues, stimulated to a certain extent the consciousness of the wideness of products that prolong a youthful appearance.For flub boomer generation which is experiencing life changes brought by aging, they nourish shown increasing interests in cosmetics and toiletries, not only to enhance their appearance but too for other reasons. A unprejudiced ex amperele is that they use foundation with intervention ingredients to protect their beat against harmful UV rays, and to help a variety of bark problems.3.2.3 Cultural changesAs the consumer attitude gradually changes, people are more in favor of th e innate(p) and safe products in cosmetic market. Australia consumers are not exception. They view green-added cosmetics, namely, they are increasingly in spare-time activity of immanent, pollution-free cosmetics with no chemicals added. Consequently, the products of chemical-free will gain matched advantages in Australian cosmetic market to pit the consumers psychological necessarily for green, primitive skin cathexis products.3.3 Micro-environment3.3.1 constitutionJurlique is a Sydney-based cosmetic company, boasting its skin care products, all of which are made in the most inseparable way. Funded in 1985 by chemist and also a doctor-Jurgen Klein, the beauty company was characterized by enhance system, which makes the fact possible that all ingredients are cultivated and processed in the Adelaide Hills, and then distributed in Australia and abroad (Pola Orbis, 2011). The companys mission is to generate sustainability and create reciprocal benefit between people and n ature, with its guideword Purest Skin Care Products on earthly preserve through and through Nature, Science and Innovation.Jurlique, with its home in Mount Barker in the Adelaide foothills, has planted good names for its inbred and chemical free products in Australia. On November 30, 2011, Jurlique external announces acquisition by POLA Orbis, which is the fourthly leading cosmetic company in Japan and has been developing its business ideal around the cosmetics industry with a pass off theme of beauty and health since its insertion in 1929. This acquisition makes Jurlique brand well positioned along with a strong front man 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 female who pay a certain attention to their skin educate and are voluntary t o buy skin care products at a logical price. In addition, customers of Jurlique need to be sensitive of the importance of natural ingredient for their skin. As spa gradually gains alldayity, Jurliques purpose consumer will be expanded to whoever enjoys a natural and pleasant spa.3.3.3 PublicsRising concern gage be noted by Australian consumers of any cosmetic product regarding health and safety. Greater attention is also being disposed to natural products in cosmetics. Innovative beauty salon products that desegregate premium and organic ingredients are given warm welcome. This green goddess explain that sales of Jurlique products using natural ingredients are show steady growth.3.3.4 CompetitionsDominated by industrial players like Luxus, P&G and Unilever in Australian cosmetic and toiletry industry, the main high-end competitive brands in the surface area include well-established world-famous brands such as Lancome, Estee Lauder, Clinique, Shiseido, Christian Dior, Giorgio Armani, Bobbi Brown and Clarins. Middle end brands check out Revlon, Max Factor, LOreal and Olay (U.S. Commercial Service). In addition, newer brands from Japan and Korea are very popular among Australian young girls such as DHC, Fancl, HABA, Mioggi, Lanegie, Skin Food.4.0 ProductsJurlique products sight be classified advertisement into six categories by the companysofficial website.Table2 Jurlique product telephone wire (from Official Website)Product lineProducts detailed by categorySkin care linecleansers, deep cleansing, refreshing, recovering, renewing, moisturizing, nurturing, special care, eye and mouthpiece care, instrumental roles and accessories Body carehand care, luggage compartment lotion, body oils, shower gelsHair careshampoo, hair conditioners gratify carehypo-allergenic and pH balanced baby care productsessential oilscomprises pure essential oils, essential oil blends, and carrier oils Seasonal offerscomprises seasonal sets of products containing speci fic blendsWithin all these excellent natural products, Herbal Recovery Gel call for to be mentioned more. Belonging to skin care category, it is a light gel tighten for day and night, which contains natural antioxidants and is suitable for all skin conditions, including oily and problem skin. It whole kit and caboodle deeply to strengthen and restore hydration, which tolerate help maintain ideal skin moisture balance.4.1 Three figures of the products4.1.1 Core take aimCore level of a product represents the basic consumption benefit consumers can get from the product. Namely, it is the function or readiness of the product. For skin care products made by Jurlique, they can not only meet the very basic requirements of target listening for better their skin condition with its natural ingredients, but they also can insure the process in a sustainable manner.4.1.2 Actual levelApart from the natural and high- theatrical role characteristics, Jurlique products also have a rig ht forwarding chain, which contains three sets of processes primary packaging, secondary packaging and tertiary packaging (Jurlique International, 2011). all(prenominal) products produced are packed into tertiary packaging for shipment from production to logistics, and from logistics to distributors or direct to consumers. The tertiary packaging utilized is plebeian throughout the supply chain where possible. average like the packaging, labeling considerations will continue to transport the green concept. For example, the use of relevant reusable symbols such as the green transfer and inclusion of the material 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 versatile 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 begin 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 majority of target customers Jurlique are females, specifically Generation X and Baby Boomers who are looking for beauty products which can help reduce wrinkles, better skin dark and contain natural or pure ingredients (Phosphagenics Newsletter, 2009). In Australia, Women between age 25 and 39 staying workplace have the strongest corrupt index number. They are value and character conscious, prepared to pay a petty more for a prestige product that works. For those female seeking natural and quality products, Jurlique is undoubtedly a perfect cream whose claims match product performance.5.2 Behavioral segmentationDifferent people seek different benefits from Jurlique products, and according to the product itself and the behavioral habits of Australian consumer, the market can b e divide into 1. Single brand allegiance it is of worry to break the previous loyalty for a certain brand, however, it this group have credit in Jurlique, the loyalty will go 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 tends to be price sensitive or cogency sensitive.5.3 Geographic segmentationIn geographic version, the whole Australian market can be segmented into several divisions.The v biggest cities in Australia Sydney, Melbourne, Brisbane, Perth and Adelaide should be the major target markets which all have advantages of large summate of working female and strong purchase power.Cities with more than a hundred curtilage populations in New South Wales, Queensland, capital of Seychelles 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 PsychographicB ased on peoples life movement and value, the market can be segmented psychologically. 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. stamp this refers to what people think 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 laboratory R&D is in need.In addition, market for color cosmetics, hair 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 competit ors from the U.S and France. Consequently, Jurlique could stretch its product line or emphasis the manufacture and market restrain of those products.7.0 Recommendations1. Adjust the shift of distributional channels in AustraliaThe retailing of cosmetics and toiletries in Australia has experienced a remarkable change in recent years. Supermarkets are beginning to play a major role in selling cosmetics and toiletries, replacing traditional retailers and pharmacies (Market Overview, 2010). study 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 key technologic deposition shows its increasing importanceIt should be realized that natural or organic ingredients are no more than typical selling points which add val ue to the products. Consumers forthwith 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 World (2010). Cosmetic and Toiletry Retailing in Australia, Melbourne Arna Richardson, tradeer 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 P urchase 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 concordat action plan. Retrieved fromhttp//www.packagingcovenant.org.au/documents/File/Jurlique%20International%20Pty%20Ltd%20AP_10_15.pdf