Contemporary Global Marketing - Essay Example

Executive Summary 2. Introduction 2 Company background Jurlique explorer biodynamic beauty by creating superior products with ingredients from their own farms. Jurlique skin care products are the result of their effort to build a community connected to authenticity and to an optional approach to beauty, which is created a rewarding environment that deliver sustainable growth. Jurlique was founded by a chemist and a horticulturist. Jurgen Klein and his wife Ulrike knew, long before there was global buzz about the benefits of organics and going green, that creating sustainability within a farm system would create common benefit for all those involved. From Jurlique's farm to your skin, the biodynamic practices that used on their farms help create the beauty on your skin. The biodynamic blends that are applied with extreme care and precision to Jurlique's soil and plants lead to greater effectiveness in all of Jurlique skin care products. Jurlique's soil is fertile and their farms are based on a natural cycle of renewal to help keep your skin replenished and alive. Since 1985, Jurlique's biodynamic farming methods have been rooted in their belief in the relationship between health, beauty, the earth and all living things. Jurlique strived to create products that sustain both of restoring and maintaining healthy skin. 2.2 Situation Jurlique innovation Jurlique's mission is to be the global leader and innovator in biodynamic and organic skin care. Today each harvest is still tended with the same care and detailed focus that began on a farm in South Australia over twenty years ago. Jurlique continues to lead the industry and strives to development of high-performance skin care. As Jurlique’s company continue to lead the industry, the company strives to produce the most effective skin care while meeting the changing of the customer. 3. Issue and Problem 4. Analysis 4.1 Environment Analysis The environment analysis of a business corporation can be done on the basis of the strategic tool PESTEL. The PESTEL stands for the acronym for political, economic, social, technological, environmental and legal which are the factors upon which the firm’s external environment would be analyzed. The country chosen for the analysis is United Kingdom where the company focuses to export huge volumes of its natural products. Political Factors The government of United Kingdom is found to render holistic support for the growth of trade of Jurlique skin care products and beauty spas owing to the cause that the products increase the consciousness of protecting the natural environment. This fact helps the business corporation to gain large amount of support from the government to carry out its expansion drives in competition to another key player Body Shop (Ammenheuser, 2011). Economic Factors It is found that owing to the reasonable price standards of Jurlique skin care products it is highly appreciated by the economy of Australia. The Australian economy truly appreciates the long bonding relationship that it has framed with the reasonably priced and high quality products of the cosmetic company. Thus more number of stores and beauty clinics are coming up in the region for its high social acceptance (Jurlique, 2011). Social Factors Jurlique skin care products earn a high amount of social acceptance for being able to satisfy the necessities of different demographic profiles pertaining to income and age levels. It is found that the herbal cosmetic company tends to produce different products for different age groups of people belonging to either gender and also for kids. Further the company to catch increasing consumer consciousness endeavors to produce large number of variants at different price ranges. Still the company to get a larger space in the consumer market need to gain a more favorable social image so as to enhance its brand value in regards to its competitors (Naturisimo, 2011). Technological Factors Jurlique skin care products fully depend on herbal technology for the preparation of different skin care body lotions and other cosmetics. The use of herbal technology helps to produce products which are not only safe to the skin but also help to augment the quality of the commodities produced. Moreover the use of herbal ingredients helps to sustain the product features for a long time (Dames, 1999, p.73). Environmental Factors The skin care products produced by Jurlique skin care for depending totally on herbal ingredients helps to create lot of environmental consciousness among the people of Australia. Use of herbal ingredients in such a sporadic manner helps to protect the nature by producing less of effluents and other harmful chemicals (Dames, 1999, p.73). Legal Factors In regards to the legal aspects the cosmetic company Jurlique tends to produce such information to the public that is supported by the legislations like the Data Protection Act passed during 1998 and the regulations pertaining to making public private information through the electronic mode. Further the company was required to get registered under the name of Jurlique UK Ltd and is required to comply with the data furnishing acts passed in the region (Jurlique-a, 2011). 4.2 SWOT analyses SWOT analysis helps in the analysis of the internal potential and weaknesses of the company in the light of external opportunities and threats. The use of the SWOT Analysis helps to analyze the parameters of strengths, weakness, opportunity and threat of the herbal cosmetic company. Through the use of SWOT Analysis the company would be able to augment its potentials to grab the emerging opportunities and would also earn the potential to minimize its internal weaknesses to counter the external threats. Strengths The main strength of the company is its technological competence which unlike its competitors shows increased dependence on natural resources which are highly available. This fact also helps the company to gain a lot of support from the government of United Kingdom which helps to produce a large number of products to gain a huge consumer space. Further the company resorts to rendering large amount of innovations in the production activities which helps it to gain increased space in the global markets (Ammenheuser, 2011). Weakness The main weakness that this company suffers from is the high price ranges of the different products produced. Though the company management state that the products produced are of reasonable price standards yet a survey reveals that such products are mainly procured by women groups of affluent families. This potential weakness acts as the main obstacle in the path of its brand proliferation in United Kingdom to reach common households (Dames, 1999, p.73). Opportunity The cosmetic company is found to gain large amount of opportunities to spread its network and branches to various regions outside Australia. It is understood that owing to the rise in considerable demand for natural and herbal products that the company has been able to reach to different regions like United Kingdom, United States and also in around other 16 countries. Moreover increase in the consciousness among the people to maintain good skin through the creation of spas where herbal treatment is encouraged that the company became able to create a global brand name for the different categories of products produced. Thus in United Kingdom the company has been able to render a huge assortment of such natural products across different demographic profiles (Naturisimo, 2011). Threats The major threat which the natural cosmetic companies like Jurlique Cosmetic Company face in regards to the region of United Kingdom is losing its own brand identity in the light of several mergers and acquisition activities. It is found that investors from the European region are pouring in large amounts for gaining control over natural cosmetic companies in the region through mergers and acquisitions. Jurlique is found to have been acquired by JH Partners which promises of enhancing its brand name. Thus the natural cosmetics companies in order to go for market expansion drives are found to sacrifice their originality and act under the umbrella of other European firms in the same business (Organic Monitor, 2007). 4.3 “4P” analysis Product The product is the end result of a process, a good, idea, method, information, object, or service. Product is the things that answer the consumer needs and the benefit. Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer (P.Tailor 7/00). There are the three levels of product. The core product is the first or basically of product, which is the core benefit your product offers. For example, Consumer who purchases a camera are expected for not just a camera, they are purchase for the benefit of it. Second, the actual product is the benefits and features to ensure that their product offers a differential advantage from their competitors. The third is the augmented product, additional non-tangible benefits can you offer. For example, after sales service, warranties, and delivery. The Jurlique skincare product is the unique one of the natural goods to renew your skin. Product feature is an organic herbs flower combined with potent, naturally-derived ingredients. The companies are looking for the valuable and healthy skin, which is non-chemical ingredient of the consumer and protection of the environment by a package recycle. Price Price is the one important thing that the company has to analyze and decide before the product launch in to the market. The price of product also can show the position of marketing that the company located. For example, the high price of product can show the premium or loyalty of their product, however it’s depend on the quality of the product, which is the consumer can compare the benefit and value to the other products. Pricing a product too high or too low could affect the company organization and also could show the target market of the marketing. For the Jurlique product, the price is tend to be high but compare with the quality of product and the method of manufacturing are can show the valuable and benefits that the consumer received. Moreover, Jurlique’s company is the brand loyalty in the high position of the marketing. Place The location is how to bring the goods into the hands of customers. The distribution of goods is very important to choose the method of distribution, the company is selling too many place, it’s doesn’t mean the selling as possible always well. Because it depends on, what is your product, the target market and other important things is, the company should be carefully and consider about the cost of distribution. The company also has to choose the place that suitable of the company’s product or level of product. For example, The products are different the level of marketing, so some of the product could locate in the general place or supermarket but some of the high-level product should consider to locate at the luxury place or in the department store at the same level of categories. Jurlique is the one of product in the high-position level, so the product should be locate in the city and in the category of cosmetic or healthy skin within the department store or the luxury place. Promotion Promotions are the activities to awareness products and tell to the consumer notice in the company’s product. The company has to persuade and attract the consumer to interesting in their products. The promotion can take many ways to mass into the public. For example, advertising in television, broacher, poster or newspaper and another method as sale promotion, direct and online marketing. The internet is also widely in the world in now a day, however the company has consider about the locate website to direct to the consumer. Jurlique’s company has their own website to direct to the consumer and a registration for the private consumer and keep in touch by inform a new innovation or new product to the consumer who had registration in their website, which is a good way to persuade the consumer interesting in product and also the company can count the number of consumer by the registration. 5. Strategy analyses Exporting is a very necessary and popular way in the global marketing strategy it has many advantages for the firm. There are some models for entering foreign markets such as indirect exporting, direct, exporting, licensing, franchising, manufacturing-based entry and relationship-based entry. How to choose the best way depends on the company’s situation. JURLIQUE as a listed company and it is pure cosmetics manufacturing the world's most famous companies. Direct export is the best way to establish foreign subsidiaries that develop and manage the overseas markets. 5.1 Entry strategies Overseas marketing subsidiaries and overseas offices similar functions, the difference is a subsidiary as an independent local company established, but also in legal and tax on all their financial independence, indicating that companies have more deeply involved in international marketing activities. Entry strategies including target market selection, choosing the mode of entry and exporting. A market entry strategy is the planned method of delivering goods or services to a target market and distributing them there. When they are importing or exporting services, it refers to establishing and managing contracts in a foreign country (Fletcher and Brown, 2008). Developed a market entry strategy involves a thorough analysis of potential competitors and possible customers. Some of the relevant factors are important in the decision to enter into the feasibility of a particular market, including trade barriers, culture, prices, competition. Basically, there's two ways to conduct export business: indirect export and direct export. Back to JURLIQUE Company select the direct export is inevitable, but also necessary because JURLIQUE skin care products, they flaunt the natural, beautiful, healthy, and they have DAY SPA. When direct exporting as an entry strategy for JURLIQUE Company, it means dealing through Subsidiary outlets DAY SPA. Direct export of the enterprise the benefits. First, it can more quickly grasp the foreign market trends, which will help enterprises to improve products, improve product on the international market adaptability and competitiveness. Second, the accumulation of international marketing experience and help establish the reputation in the international market, which will help develop the international market. Third, Increase the flow of business products and ability to control prices. Australia has a very good environment, the Government attaches great importance to environmental protection, there are many pollution-free area. JURLIQUE south of Adelaide in South Australia selected a non-polluting land, producing the most natural and healthy skin care products. Now, JURLIQUE has been extended to the next mountain range in South Australia Adelaide area and the Mylor area of Ngeringa two farms. With the traditional European knowledge of South Australia unpolluted environment, JURLIQUE to produce the "most pure skin care products." To ensure high quality skin care products made ??of, JURLIQUE plant materials used are grown in pollution free environment, no use of chemical fertilizers, pesticides, herbicides, JURLIQUE pure organic farming, from breeding to harvesting the whole process is the use of human action, picking flowers and plant material after air dry. In order to product quality JURLIQUE All products are produced in Australia, planting material in Australia costs although this will increase a lot, but for the company in the international market and the minds of consumers to leave a good image. It has also been recognized and praised the international market. At the same time in the local DAY SPA staff to cultivate a professional skin care beauty the best service to consumers 5.2 Market strategies Whether to compete globally is a strategic decision (strategic intent) that will fundamentally affect the firm, including its operations and its management. Typically, there are many issues behind a company’s decision to begin to compete in foreign markets (David, 2001). In the marketing process, JURLIQUE biggest competitive advantage is their use of organic farming and bio-dynamic methods of plant cultivation, plant material used in all natural ingredients, do not use any petrochemical components, chemical pigment or fragrance, completely biodegradable. JURLIQUE to full health, environmental protection, production technology, natural product positioning, with the "world's most pure skin care products' outstanding product characteristics, adopt different marketing strategies to achieve corporate marketing objectives. At the same time as the world's favorite celebrities, like Julia Robert, Nicole Kidman, Pierce Brosnan, Michelle Pfieffer, Liv Tyler, etc. JURLIQUE to major consumer product marketing focus groups, and gradually expand its international market share. JURLIQUE products used in plant ingredients, all with live local farming (Biodynamic Farming) cultivation, the planting process in order to avoid all processed manually by the environment and plant damage. 1. Do not use chemical fertilizers 2. Land agents start composting method (Compost) make the soil more fertile 3, according to the laws governing the operation Morning sun and the moon to plant trees (Lunar Calendar) 4. From the sowing to harvest the entire plant process are manpower to carry out 5 the interval plant (Companion Planting) 6. Crop Rotation. Meanwhile, JURLIQUE in the world has more than 20 concept stores. The concept of environmental protection is the most competitive JURLIQUE and advertising. Recommendation Conclusion References Ammenheuser, M. (2006). Australia’s Jurlique Brings Tony Spa-Stores To U.S. Malls. Retrieved on July 29, 2011 from : http://www.icsc.org/srch/sct/sct0506/retail_australia_jurlique.php. Jurlique. (2011). Best Sellers. Retrieved on July 29, 2011 from: http://www.jurlique.com.au/ Dames, J. (1999). The little black book. Wakefield Press. Jurlique-a. (2011). Privacy Policy. Retrieved on July 30, 2011 from: http://www.jurlique.co.uk/privacy-policy/ Naturisimo. (2011). Jurlique. Retrieved on July 30, 2011 from: http://www.naturisimo.com/index.cfm?nme=jurlique Organic Monitor. (2007). Europe: Investors Targeting Natural Cosmetics Market. Retrieved on July 30, 2011 from: http://www.organicmonitor.com/r0702.htm Read More