Topics: Department store, Brand, Skin Pages: 7 (1523 words) Published: May 26, 2014

Situation analysis
Background information of Heigh’s Chocolate

Executive summary

Situation analysis
Revenues from cosmetic industry are always rewarding. The beauty and health market in Malaysia is growing rapidly. According to trade sources, the cosmetic and toiletries industry recorded retail sales of $857 million in 2006, while sales volume is forecast to hit $1.1 billion by 2010. Skincare products attributed more than 20% of this. Malaysian consumers prefer to use imported skincare products as they associate them with higher quality as oppose to local products. As the local cosmetic industry is still less productive, imported products will continue to be high demand especially for the middle and high-income earners. The cosmetic industry is in a state of flux. Traditional brands such as L’Oreal, Revlon and, L'Oreal, Lancôme are no longer able to satisfy with just the appearance benefits. Consumers are looking for more holistic and natural ingredients used in their skin care products. With the increment of working women and their self-awareness of appearances, the cosmetics industry in Malaysia is growing rapidly at an annual rate of 13%. The Australian brand, Jojoba Company offers skincare products that are unique and effective. Malaysia is the potential market to be explored outside of Australia. The SWOT analysis (Table 1) shows the summary of the company, market, competitor and environment, to understand and improve the overall brand name. Strength


A unique skin care range with 100% natural and organic Australian jojoba as the hero ingredient. It has a variety of products to offer, focus on anti-aging and skin health. The packaging of Jojoba’s products is sophisticated, suitable for its target market. Products are free from chemical preservatives and synthetic ingredients. Price and volume: The major stores are still within the Australia regions. Brand power: The Jojoba Company still can’t match the competitor’s full advertising. It has not yet achieved the national brand name. Did not fill the gap of well-informed launched of new products.


Expansion of cosmetic industry into semi-urban Asian countries. Re-branding strategy to drive more consumer (Beauty retail stores) Restructuring initiatives for organizational effectiveness. Better promotion through TV advertisement.

Market leaders that dominate the cosmetic industry
Growing competition in emerging market
Dependence on third party supplier.
The unstable economy (people reduces their expenses)
Table 1: SWOT analysis
Aim: To expand the global market of Jojoba Company in Asia countries. Objectives: 1. To earn profit and enable to compete with International and Asian cosmetic brands in Malaysia. 2. To make Jojoba Company a world-renowned brand name from Australia. Place of promotion

Malaysia will be the country of promotion. There are large numbers of competitors in Malaysia. The stores will be based in larger cities where consumers are readily available to purchase Jojoba Company’s skin care products. The increasing standard of living among Malaysians has also increased the level of sophistication and demand of the consumers. Cleansing with soap and water are things of the past today Malaysians of urban areas demand quality and safe products. Skincare is expected to continue having the biggest market share (about 26 %) of the total cosmetic market share over the next few years. The increasing air-conditioned offices in humid country like Malaysia cause a drying effect on the skin. Retail stores in shopping centres or beauty stores within the urban offices areas will drive more consumer savvy Malaysians to take an active interest in enhanced skincare. Target Customers

Jojoba Company targets end users of age 21-65. Today’s female consumers live a hectic lifestyle. They have to portray as students, career women, girlfriend, housewife, mother and...
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