Yankee

Topics: Candle, Candles, Barriers to entry Pages: 9 (2065 words) Published: June 23, 2013
Running Head: Yankee Candle

Yankee Candle Steep Analysis
BUS520.90 – Competitive Intelligence
Paula Alford

Key STEEP Variables of the Medical Suppliers Industry|
Social| Technological| Ecological| Economic| Political/Legal| 90% of candle consumers are women. | Companies are increasing product lines with electric scent warmers, car jars hanging scents for cars| Products are in maturity life cycle phase, being in the market for over 20 years| Candle industry is 2.1 billion dollars a year industry| No government regulation on paraffin wax, although the petroleum in it causes toxins.| Consumers place the household location of their candle burning use as follows: living room (42%), followed by the kitchen (18%) and the bedroom (13%)| Custom engraving candle process online for many companies | Companies are catering to the new attitudes of consumers by offering eco friendly candles | The industry itself grows at about 10% per year| US Consumer Product Safety Commission prohibits use of lead wicks | 7 or 8 out of 10 U.S. households burn candles| Companies are creating aromatherapy spa lines in alignment with customers hectic lifestyles| Majority of candles in the industry are made with petroleum which is an environmental concern | Candles can range in price from approximately 50 cents for a votive candle to around $75 for a large column candle, and some specialty candles as much as $200| | 9 out of 10 candle consumers say they make a room feel cozy or comfortable| Companies are creating custom process online, offering a personalized experience for customers| | | |

Summary of Analysis
The candle industry has sales of over $2 billion dollars a year, which makes it an attractive entity for budding entrepreneurs looking to enter the market. New companies that are entering the industry understand that they must create products that cater to customer’s lifestyles. Recently, consumers have become more health conscious, which has made eco friendly candles more popular. As the candle industry continues to grow, companies will find ways to keep consumers engaged and build their loyalty in this competitive market.

Sociological Variables
As in most genres where consumers spend money, women dominate as the consumer for the candle industry. The candle industry consumer is ninety- percent women. Seven out of ten households use candles to create décor, but mostly to enhance their mood. Consumers are looking to do more than make their homes good. They are looking to create an experience through the products they purchase. Technological Variables

Technology has forced many businesses to create upgrades in the way consumers experience their products. Candle companies understands that technology is moving fast and consumers expect more from their products and services. They have created ways for their consumers to have an interactive and engaging experience with their products. Consumers can go to the companies websites and personalize their buying experience in several ways. By offering these customized services, candle companies allow their consumer to have access into having input into the products that they purchase. In today’s market, customers are used to having more of what they want in an intimate and personal manner. Candle companies are aligning themselves with the technology that has become important in our society.

Economic Variables
The candle industry has seen some declines in consumer purchases, but still remains a 2 billion dollar a year industry. The candle industry, like many industries that offer products and services, have also been hit by the economic downturn. Nonetheless, the candle industry grows by 10% every year (Mathisen, 2011). Candle manufacturers are finding innovative ways to increase brand and product awareness, which directly impacts sales. Within various companies, the price points of candles reach low to upper class consumers,...

Cited: Kinney, J. (2013). Yankee candle company to be sold, according to reuters report. Retrieved from
http://www.masslive.com/businessnews/index.ssf/2013/03/yankee_candle_to_be_sold_according_to_re.html
Mathisen, D. (2011). Statistics inspire many candle lovers to start a business of their own. Retrieved from
http://www.examiner.com/article/statistics-inspire-many-candle-lovers-to-start-a-business-of-their-own
Trujillo, V. (2009). Yankee candle situation analysis. Retrieved from:
http://cargocollective.com/victoriatrujillo/YANKEE-CANDLE-SITUATION-ANALYSIS
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