Study area: Europe
1°) Hugo Boss Analysis
In 1837, there was first a partnership between William Procter and James Gamble, in 1937 P&G celebrates its 100th anniversary. Sales are up to 230 million dollars. In 1954, P&G jumped into the cosmetics and perfumes world with the acquisition of Noxell and its products : Cover Girl, Noxzema and Clarion. In 1993, the sells are up to 30 billion dollars and for the first time more than half of the turnover is realized by international activities. In 2005, P&G buys Gillette.
Hugo Boss is created in 1923 in Germany and buys by P&G in 1994 in the beauty section.
In 2005/2006, the turnover is 68,2 billion dollars, the net income is 6,92 billion dollars, the investments are 2,67 billion dollars, and the budget research is about 2 billion dollars .
P&G sells over severals brand such as Pringles, Swifer, Febreze, Dash for the house, snacks and Cafés division, Pampers, Vicks, Kandoo for the Health and care of the family division . The biggest brands of the beauty division are Always, Wella, Head and Shoulders, Lacoste and Hugo Boss.
Sales of P&G
|Sector |Beauty |House |Gillette |Health |Baby and family |Snacks, drinks | |Sells of this sector| | | | | | | |(in billion USD) |21,13 |17,15 |6,42 |7,85 |11,97 |11,97 |
-Long term hydratation
-Uv filter ( high protection), protect from the environment -Let the skin breaths
-Refresh the skin, and efficient after shaving
Price of the product : 27,60 euros
The product has a great design :
- You can take it easily
- The diffusion of the product is optimal
- It’is adapted to the lifestyle of the men
- And the locked system is innovant
Perception of the product
Maslow’s hierarchy of needs
According to the Maslow’s hierarchy of needs, the consumers of Hugo Boss Skin want to belong to a specific tribe: the Hugo Boss tribe. The product is perceived as a product who fill the needs of love/belonging, esteem and self actualization. When a man uses Hugo Boss skins or wants to use it, he knows that this product will affect his life in a positive way. This is possible because through the last years the social and cultural environment has evaluated. First of all due to the relaxation of moral standards, the man also has to be handsome and not only the woman. Then because of the social pressure, there is an esthete obligation in the world of work. Moreover we can also say that there is an increase of the numbers of single people, who reveals the need to look good. To finish we can say there is an emancipation of the homosexuals and metrosexuals . As a conclusion, we would say that Hugo Boss skin as a good image in the consumers ‘ mind
6 competitors are divided the market realizing about 94 % of sales in value There is an oligopolistique tendency
These competitors are situated in a niche market, there are all expensive products that you cannot find in drugstores. They are not competiting on the same segment as Nivea for instance because Nivea is less expensive with a packaging less attractive.
• An expanding market
• A 34% increasing in 2006
• The market of men beauty is up to : 3 billion USD with 700 million for health care.
• Beauty cream represent 28,1% of the market shares in 2005.
Market size in million dollars
Swot analysis of the market
|STRENGHT |WEAKNESS |...