Make up store case

INDICE
THE CURRENT SITUATION 2
The environment 2
The industry 3
The Firm 6
The marketing strategy 6
RECORD PROBLEMS 10
ALTERNATIVE COURSES OF ACTION 11
CHOSEN ALTERNATIVE AND IMPLEMENTATION DETAILS 12
REFERENCES 13

THE CURRENT SITUATION
The environment
The market for Make-up in Mexico it’s not a new one anymore and has increased between 2002-2007 more than ever, growing at an average annualrate of 5.0%.
The last analysis was at 2007 and the most successful brand was Jafra Cosmetics International, the second one was Avon Products, Inc. and the third one Mary Kay Inc.
These brands offers 4 kinds of make-up and the ones that most people ask for are the eye make-up, face make-up, lip make-up and nail make-up.

More than ever, Mexicans now have a wider amount of products available fortheir daily beauty and personal hygiene needs. The number of brands and products available in the market have tripled in the 2005-2007 period reflecting a deepened consumer segmentation practice and intense competition in the Make-Up industry.

The Mexican market its actually a very attractive market, in some cities where is the capital and where are the typical Mexican women that always try to fitin a society where the cosmetics play an specific roll, where the girls have to get cosmetics to try to look a little bit better and glam when they go out for fun.

In this country almost the 90% of the women have tried make-up at least for once in their life even for a wedding or for a special day, doesn’t matter the social class or economic income.

The Make-Up industry in Mexico faces achallenge now a days with the products and the piracy of them, as well as parallel trading, which impacts sales of lots of cosmetics, skin care products and fragrances. Lack of consumer education and unfavorable economic conditions is boosting it up the demand for these products. In October 2007 the Mexican police confiscated an estimated 170 tons of perfume that had been illegally got into the country.Even though government efforts to reduce piracy are evident, or at least that is what they want to us to think, the issue is that the consumer even they have the capital, they all prefer to save some money and get some piracy or do it in the black market, in a dirty way always; Mexico have a lack of education even in this.

Some of the opportunities could be that for example, the industry hasgrowth potential which can be exploited by the company even in this days critical economic situation. Creating new lines of products that satisfy raising trends or a niche of the market. Appealing new users such as males. Diversifying the offer of the products, selling to not only final users but also to providers.
These will, at the same time, recommend the brand since they might be considered asopinion leaders, like for example beauty salons, and at last sponsoring a fashion event, showing off the make-up products in a runway.

Also there are some threats, first of all the actual crisis and readjustment of family incomes in our country could hit the luxury , and products that are not really necessary as the cosmetics, the import costs would go up and the final price too so Make-Up it’sgoing to be more expensive, and the most important thread is that people is getting every day more aware about the damage of skin that the cosmetics could do, mixed with the chemicals it has and the sun light , so the tendency is that women are trying to get just natural products and leave the typical Make-Up in the past, so every cosmetic brand has to readapt to this.


The industry

Make UpStore is part of cosmetics industry. Gabriela Kalifa had successfully brought the family-run Make Up Store franchise in Monterrey, Mexico.

“The cosmetics industry is booming, with global sales reaching $253 billion in 2005”, according to Euromonitor International. By all indications, the industry will continue to expand. The future growth forecast currently stands at 3.7% annually, and global...