A study finds that there are 88% of Australian women spending in online cosmetics and beauty (Powertail.com.au). Being an online retailer in the Australian cosmetics industry has many advantages. It is convenient for buyers to shop and access to a wider variety of many product lines at the same time. Meanwhile, it is time-saving and also money-saving for the customers rather than buying cosmetics at the local stores. However, due to the increasing numbers of online stores and online retailers, customers are faced with many choices. A recent research says that more than $40 billion is blown on cosmetic products globally each year (Livescience, 2012). We believe that the consequences resulting from the brands’ controlling image. It means there are many brands disregarding the customer demand to shop across a range of different brands in a single website. Moreover, several Australia’s online market including eBay offer huge variety of brands but not so specific description about the product. Women then tend to buy wrong shade of makeup or products that are not suitable to their skin types and complexions. Therefore, we keep wasting money and time. This is the main disadvantage of buying cosmetics online. Australian shoppers are asking for a better level of service. In response, we offer a brand new online service called Mybeautybag.com. With only $10 per month to subscribe to our online website, our client will receive 4 to 5 samples and full-size beauty products from various well-known brands that we believe are suitable for customer’s skin types. Video tutorials, products information and beauty contest are regularly updated on the website. Shoppers are confident to select our service because they can save lots of time and money as well.
Marketing is very important since it is to attract and retain customers. The next part of the report will outline our marketing strategies- the marketing mix 7P of service. They are products, people, price, physical evidence, place, promotion and process.
When designing our service product for maximum consumer retention, we prioritize continued value over time and high quality of products. As we mentioned before, the demand for cosmetics products that can flatter one’s personality and physical figure is great. Every month, we select 4 to 5 products varying from makeup range to skin care range including hair care and nail care products. In attempt to provide the cheapest possibly price we can offer, our products are selected trial deluxe samples that can be used up to 10 times by an appropriate use and at least one full size product in every monthly bag. By offering sample size products, we attempt to keep the price low intended for all the women having limited budget before they commit to buy actual full size product. By that way, money can be saved. The report found that 20 percent of samples tested at beauty counters can cause rashes, acne or even infection since they can contain viruses and bacteria (Dailyglow, 2012). Therefore, we believe sealed trial-size samples can be attractive. Users only have to pay very low subscribing fee at $10 per month, they have more opportunities to try, test and learn about different products while being sure that the products provided have been carefully selected according to the customers’ preferences. The study shows that more multitasking and greater value products are becoming famous and handy such as a foundation that doubles as a moisturiser (Marketingweek, 2012). We consider this trend as a priority when it comes to pick our monthly products. Another element to consider is customers’ preferences, they have the power to control what they really need and want. For instance, women who have oily skin will have different preferences to women who...