Loreal Swot

Good Essays
Topics: Cosmetics
6. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

• Percentage penetration of fragrances and some cosmetics, particularly lipstick, is high.

• Many women use more than one fragrance.

• There is a high brand loyalty but a willingness to try new products.

• The leading competitors are huge multinationals with the necessary resources to spend on research, development and advertising.

• Either from vanity or insecurity, many consumers readily succumb to marketing hype.

• Older women retain a pride in their appearance, and men and younger children are also more interested in fashion, cosmetics and fragrances than in the past, thus expanding the potential market.

• The UK has a growing population and an ageing one that tends to have the resources to spend on expensive products.

• The wearing of premium fragrances and cosmetics, particularly those bearing the names of international fashion houses, has an indulgent feel and, like other luxury consumer goods, part of their attraction lies in high prices and exclusivity.

• Profit margins, particularly on the ingredients of fine fragrances, are high.

• Products are indisputably glamorous and can be packaged, displayed, advertised and marketed in such a way to exploit this.

• Products are available in many outlets; the choice is extensive and the price range is also wide.

WEAKNESSES

• Competition is fierce in both manufacturing and retailing in both the premium and mass markets.

• Sales are seasonal to a great extent, as they tend to be centred on Christmas, Valentine's Day and Mother's Day.

• Considerable investment is necessary to bring new products to the market and to maintain their high profile.

• The failure rate of new cosmetic products and fragrances is high in such a competitive market.

• The safety and efficacy of products is constantly under scrutiny, and cosmetics and

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