Jurlique Marketing Essay

1.0 administrator summaryThe main purpose of this business brood is to review the appropriateness of Jurlique nonfunctional increases for the Australian butt end grocery. The secernate findings argon Australia is a huge commercialise for cosmetic and toiletry industry, while it is full of ambition due to the nothing duty on Ameri basis cosmetics Jurlique is a well established spot for close to Australia customers, however, it still claims unique selling points early(a) than inherent gene to expand its food market place sh atomic number 18. This is to a greater extent often than non base on the harvest-home research and development.2.0 universe2.1 PurposeThis report sets out to review the harvest-feast for a mastermind segment.2.2 ScopeThis report original describes the over all cosmetic industry, the market share of Jurliques bark sustainment crossings and the growth trend. Then the big and micro-environmental analysis are conducted before the tiny ex position of the products category. Following the shoot for segmentation, some(prenominal) recommendations ordain be made.2.3 MethodologyThis report is weed base on the theories from the textbook and the secondary data from websites. In addition, graphs and tables are utilize to assist the specific analysis.2.4 Assumption and limitationDuring the research, some breeding hobo not be accessed, however, the information can be found from opposites as the functionary website which is formal and perusable to do reference.3.0 Description of the industry3.1 commercialise size and market shareAccording to IBIS gentlemans gentleman (2010), cosmetics and toiletries industry are based on a solid derriere, with a booming prospect. He a alike foretastes that global cosmetic industry testament squeeze an inspiring growth at an average yearly rate 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 p layer in the congenital cosmetics and fell accusation industry, Australian-owned Jurlique political party is a well-deserved market leader. It assemblys and distributes a range of beat bang and aromatherapy products as well as herb tea medicines.Through multi-channel scattering network, the high society enters into 20 distinguishable countries, where about 60 company-owned concept stores and 5000 or so Jurlique- grimeed retail outlets are established (Official Website, 2012). Plus, department stores, pharmacies and wellness food stores, as well as aroma-therapy clinics and violator salons are in addition the sales channel of the companys 75% products.The differentiation in products themselves and variegation in marketing channels both commit to the companys profit margins, which are mentation to be about 30%, and annual sales, which are estimated to exceed AU$100 million (RAPS, 2011).3.2 Macro-environment3.2.1 overall cosmetic inhalation trendGraph2 Total market sal e of Australian cosmetic industry root system Australia Bureau of StatisticsThe cosmetic and beauty industry has go through and through a constant growth the whole world, and Australia is not an exception (see above graph). The Australia cosmetics and toiletries market entertain is in order 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 foothold 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(prenominal) reasons for this. The U.S is well known for its large proportion of enthronisation in cosmetics research and development Owing to the forego Trade Agreement in the midst of 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 toiletries industry in Australia is closely associated with the bulks knuckle undering increasing attention to ain appearance, both for women and men. The emergence of an aging population in Australia, on with a raised awareness of health and environmental issues, stimulated to a received limit the consciousness of the importance of products that prolong a juvenile appearance.For baby boomer generation which is experiencing life changes brought by aging, they adopt shown increasing interests in cosmetics and toiletries, not unaccompanied to enhance their appearance but in addition for other reasons. A simple example is that they use foundation with treatment ingredients to protect their skin against harmful UV rays, and to divine service a variety of skin problems.3.2.3 heathenish changesAs the consumer attitude gradually changes, batch are more in favor of the natural and proficient products in cosmetic market. Australia consum ers are not exception. They see green-added cosmetics, namely, they are increasingly 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 mental needs for green, entire skin tutelage products.3.3 Micro-environment3.3.1 formationJurlique is a Sydney-based cosmetic company, boasting its skin care products, all of which are made in the or so natural way. Funded in 1985 by chemist and similarly a doctor-Jurgen Klein, the beauty company was characterized by make system, which makes the fact possible that all ingredients are civil 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 mutual benefit between people and nature, with its slogan Purest Skin Care Products on Earth finished Nature, Science and Innovation.Jurlique, with its headquarters in come on Barker in the Adelaide foothills, has planted good label for its natural and chemical free products in Australia. On November 30, 2011, Jurlique internationalist announces acquisition by POLA Orbis, which is the fourth star(p) cosmetic company in Japan and has been growing its business model around the cosmetics industry with a recurring theme of beauty and health since its launching in 1929. This acquisition makes Jurlique brand well positioned along with a beardown(prenominal) presence and compelling pulsation in key strategic markets, with a tenseness on Asia, the Americas and the home market Australia.Table 1 Changes in Jurlique shares held by POLA as a yield of the AcquisitionSource POLAs look at buy Agreement3.3.2 CustomersCustomers of Jurlique are mainly female who tolerate a certain attention to their skin fit and are will to buy skin care products at a reasonable price. In addition, customers of Jurlique need to be aware of th e importance of natural ingredient for their skin. As spa gradually gains popularity, Jurliques target consumer will be expanded to whoever enjoys a natural and satisfied 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. ripe beauty salon products that incorporate premium and organic ingredients are given warm welcome. This can let off 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 soil include well-established world-famous brands such as Lancome, Estee Lauder, Clinique, Shiseido, Christian Dior, Giorgio Armani, Bobbi embrown and Clarins. Middle end brands correspond Revlon, Max Factor, LOreal and Olay (U.S. Commercial Service). In add ition, newer brands from Japan and Korea are really popular among Australian young girls such as DHC, Fancl, HABA, Mioggi, Lanegie, Skin Food.4.0 ProductsJurlique products can be classified into sixer categories by the companysofficial website.Table2 Jurlique product job (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 personate carehand care, body lotion, body oils, ware gelsHair careshampoo, hair conditioners screw up carehypo-allergenic and pH balanced baby care products necessity oilscomprises pure essential oils, essential oil blends, and letter carrier oils Seasonal offerscomprises seasonal sets of products containing specific blendsWithin all these excellent natural products, Herbal Reco really gelatin needs to be mentioned more. Belonging to skin care category, it is a light gel concentrate for twent y-four hour period and night, which contains natural antioxidants and is suitable for all skin conditions, including fulsome and problem skin. It works deeply to strengthen and desex hydration, which can help maintain ideal skin moisture balance.4.1 Three levels of the products4.1.1 burden levelCore level of a product represents the basic consumption benefit consumers can get from the product. Namely, it is the function or efficiency 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 contrive a mature encase chain, which contains terzetto sets of processes primary encase, secondary packaging and tertiary packaging (Jurlique International, 2011). All products produced are packed into t ertiary packaging for shipment from production to logistics, and from logistics to distributors or direct to consumers. The tertiary packaging utilized is common throughout the cut chain where possible.Just like the packaging, labeling considerations will advance to express the green concept. For example, the use of relevant useful symbols such as the green dot and inclusion of the material identification will serve as an important tool in marketing strategy.4.1.3 augment levelCustomers who buy Jurlique products can enjoy comfortable service from the company. Jurlique has its mature online service and various distribution channels. Products exchange through every channel will be delivered timely. In addition, anyone who is interested in this brand can sign up for emails, and effect a Jurlique insider. The insiders can get the professional advice in footing of skin care and also free gifts from the company.5.0 posterior segment5.1 Demographic segmentationThe majority of targ et 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 bribe power. They arevalue and quality conscious, ready to pay a little more for a prestige product that works. For those female seeking natural and quality products, Jurlique is undoubtedly a perfect survival whose claims match product performance.5.2 Behavioral segmentation various people seek different benefits from Jurlique products, and according to the product itself and the behavioral habits of Australian consumer, the market can be segmented into 1. Single brand trueness it is of problem to break the previous consignment for a certain brand, however, it this collection have faith in Jurlique, the loyalty will last 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 untoughened or efficiency sensitive.5.3 Geographic 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 major target markets which all have advantages of large amount of working female and strong purchase power.Cities with more than a hundred kibibyte populations in New South Wales, Queensland, Victoria and Tasmania etc will be the second largest target markets for Jurlique.The remaining cities with little 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 refers to what people speak up 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 progress products because they perceive the ingredients to be expensive, uniquely manufactured based on intensive research and develop. Therefore, the innovative gap 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 competitors from the U.S and France. Consequently, Jurlique could stretchiness 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 ing of cosmetics and toiletries in Australia has experienced a remarkable change in upstart years. Supermarkets are beginning to play a major role in selling cosmetics and toiletries, replacing tralatitious 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 suck in this change into account when it come to adjusting marketing strategy.2. professional 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 with(predicate) products, just as Jurlique for Australian consumer. Therefore, it is highly recomm ended that Jurlique arrest professional certification from authorized certifiers to enhance product credibility.8.0 ReferencesIBIS World (2010). Cosmetic and Toiletry Retailing in Australia, Melbourne Arna Richardson, merchandiseer 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). cup of tea 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 nifty shares of Jurlique International Pty LtdR.2011.New Zealand Trade and Enterprise (2011). Export guide Organics and green market in Australia.Jurlique Internation al (2011). Australian packaging covenant action plan. Retrieved fromhttp//www.packagingcovenant.org.au/documents/ agitate/Jurlique%20International%20Pty%20Ltd%20AP_10_15.pdf