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Company Introduction, Market Segmentation and Product Positioning

Autor:   •  November 9, 2015  •  Research Paper  •  1,442 Words (6 Pages)  •  540 Views

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Company Background

Mission Statement

To supply customers with affordable, healthy, innovative, quality cosmetic products that allows them to feel and look confident.

Background:

Anjee McHardy, a makeup artist and Ivan Whipper, a chemist, started the Glow Cosmetics Company in 2003 to offer innovative, quality, safe and affordable cosmetics products. Anjee and Ivan met in a college marketing class where they had to work on a project together. The project was to create a marketing plan for a product they invented. The two came up with what would become their signature product of Glo Cosmetics, Shield a sunscreen of thirty that repels beach sand. Now that the company’s signature product is in the middle of its lifespan, the executives want to develop additional products that will broaden their market share.

Currently, the company offers a waterproof skincare and waterproof makeup line that has been successful in the marketplace, but they would like to encroach upon their competitors by developing a product that will make any makeup waterproof.

Going Global

A successful entry into a foreign market is both and art and a science. It involves more than just finding real estate and developing relationships with local affiliate. A company must figure out what products they will offer that fits the needs and wants of the consumers they wish to serve. Glo Cosmetics selected Brazil for its entry into the global market. When Brazil won the bid to host the 2016 Olympic Games, the executives of Glo began to look more carefully at this developing nation. According to the Forbes Magazine article, Developing Countries Offer Retailers Something They Can't Find Elsewhere: Growth, “Developing markets hold significant

potential for retail growth” (Moriarty, Ben-Shabat, 2012). According to the article,

Retail is exploding in developing markets and those markets have become the driving forces fueling global growth in retail sales and space. Over the 10-year history of A. T. Kearney’s Global Retail Development Index (GRDI), an annual research project designed to help global retailers prioritize which countries to enter, the population of developing markets increased 11%, while retail sales per capita has almost doubled, retail space has more than tripled and Internet access grew by nearly 500%. (For Brazil Beauty is Serious, 2012, para, 1).

Additionally, Glo Executives were looking at Brazil because of the average amount that Brazilian’s spend on cosmetics. According to Hana Ben-Shabat, a partner at A.T. Kearney, a consulting firm that advises retailers on overseas expansion. “Brazilian consumers spend an average of $240 a year on beauty products, matching the consumption

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