Australian Gold Brand Analysis
Landscape and Brand Analysis: Australian Gold
Background
Australian Gold is one of the fastest-growing sun care brands in the United States.2 Owned by New Sunshine LLC it was founded in central Indiana 26 years ago.3 Australian Gold is “sold in more than 50 countries [worldwide and] is recognized by its mascot “Sydney” a koala bear riding the waves on a golden brown surfboard”.5 The company’s headquarters is located in Indiana but they also have a “research and development lab and a manufacturing facility in Tempe, Arizona” as well as a distribution center in Tampa, Florida.3
SWOT Analysis
Strengths
* Global brand * Sold in more than 50 countries worldwide5 * Recognizable mascot, “Sydney” the koala5 * Brand history, created 26 years ago3
Weaknesses
* Product diversion through unwanted channels * High prices compared to other brands
Opportunities
* Tanning industry is growing, potential for more sales * Expanding into new countries
Threats
* Competitors- over 100 other sun care brands on the market5 * “Sun scare” epidemic * Government regulations on tanning * Poor economy- tanning is a luxury * Tanning lotion is not viewed as a necessity by all tanning bed users
Targeting
Australian Gold’s target market is those who tan indoors. This market segment is both large and profitable. In 2010 the indoor tanning industry’s revenue was about $2.6 billion.7 In fact, more than 1 million people tan indoors in the United States every day and about 28 million tan indoors yearly.7
According to a study performed by Wolff Systems, a major commercial tanning bed manufacturer, 25% of tanners are men.11 However, one tanning salon reported that they “account for 40 percent of revenues, suggesting that on average, men who use tanning salons do so more frequently than women”.11 Additionally, the average age of indoor tanners has increased from college age to age 32.11 The American Academy of Dermatology reports: “nearly 70
Background
Australian Gold is one of the fastest-growing sun care brands in the United States.2 Owned by New Sunshine LLC it was founded in central Indiana 26 years ago.3 Australian Gold is “sold in more than 50 countries [worldwide and] is recognized by its mascot “Sydney” a koala bear riding the waves on a golden brown surfboard”.5 The company’s headquarters is located in Indiana but they also have a “research and development lab and a manufacturing facility in Tempe, Arizona” as well as a distribution center in Tampa, Florida.3
SWOT Analysis
Strengths
* Global brand * Sold in more than 50 countries worldwide5 * Recognizable mascot, “Sydney” the koala5 * Brand history, created 26 years ago3
Weaknesses
* Product diversion through unwanted channels * High prices compared to other brands
Opportunities
* Tanning industry is growing, potential for more sales * Expanding into new countries
Threats
* Competitors- over 100 other sun care brands on the market5 * “Sun scare” epidemic * Government regulations on tanning * Poor economy- tanning is a luxury * Tanning lotion is not viewed as a necessity by all tanning bed users
Targeting
Australian Gold’s target market is those who tan indoors. This market segment is both large and profitable. In 2010 the indoor tanning industry’s revenue was about $2.6 billion.7 In fact, more than 1 million people tan indoors in the United States every day and about 28 million tan indoors yearly.7
According to a study performed by Wolff Systems, a major commercial tanning bed manufacturer, 25% of tanners are men.11 However, one tanning salon reported that they “account for 40 percent of revenues, suggesting that on average, men who use tanning salons do so more frequently than women”.11 Additionally, the average age of indoor tanners has increased from college age to age 32.11 The American Academy of Dermatology reports: “nearly 70
Cited: 3. “Australian Gold Reveals Support for Donald Trump.” Entertainment Close- Up (2011) ProQuest 5. Chernev, Alexander. "Case study: Australian Gold."FT.com. (2011): n. page. Web 8. "New Sunshine Promotes Tanning In New Ways." Smart Tan. (2011): Web. 10 Jun 10. "Product Diversion Faq 's." New Sunshine LLC. New Sunshine LLC, 2013. Web. 9 June 2013.