Landscape and Brand Analysis: Australian Gold
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
* Global brand
* Sold in more than 50 countries worldwide5
* Recognizable mascot, “Sydney” the koala5
* Brand history, created 26 years ago3
* Product diversion through unwanted channels
* High prices compared to other brands
* Tanning industry is growing, potential for more sales
* Expanding into new countries
* 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 percent of tanning salon patrons are Caucasian girls and women, primarily aged 16 to 29 years”.7
From these statistics we can deduce that Australian Gold’s target market is both men and women but specifically women aged 16 to 29 because they account for 70% of salon patrons. The company is also aware of the importance of targeting their male consumers because they may account for up to 40% of revenues. Consumer Needs
Consumer needs for tanning lotion are fairly straightforward. Consumers use tanning lotion to increase melanin production so that they may tan faster, obtain darker color and keep their tan longer. Melanin is the pigment that skin produces when it is exposed to UV rays, and what causes you to get tan. Using tanning lotion allows the consumer to tan up to 60% faster.12 According to Australian Gold’s Facebook page the “indoor tanning products are the staple to a healthy looking beautiful tan. The formulations are based on our heritage of offering quality tanning products that not only provide superior, dark color but also help protect the skin from the effects of UV light. All formulas are filled with advanced antioxidant vitamin-therapy and dark tanning omega oils. The results: dark, long-lasting, golden tans and nourished, healthy-looking skin!”1 Value Proposition
New Sunshine LLC owns Australian Gold, Swedish Beauty, Designer Skin and California Tan, four tanning lotion companies sold exclusively through tanning salons. Australian Gold’s major competitors are Performance Brands, Tanovations and Supre Tan. Australian Gold has positioned itself as an upscale brand because it is only sold in tanning salons due to the company’s constant battle against product diversion. New Sunshine defines product diversion as “the sale of any product(s) outside of the intended channels of professional distribution”.10 By monitoring and taking actions to prevent and stop product diversion Australian Gold is able to keep the brand valuable due to the principal of...
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.
8. "New Sunshine Promotes Tanning In New Ways." Smart Tan. (2011): Web.
10. "Product Diversion Faq 's." New Sunshine LLC. New Sunshine LLC, 2013. Web.
9 June 2013.
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