Corporation «BellaCosmetics» created in December 2002 is a commercial organization, one of the main activities is the development and sale of goods for beauty and health. Greatest fame and popularity gained following the development of the company: cosmetics, "bio-cocktails" and oxygen cosmetics, which includes a unique transdermal oxygen carrier - AquaTem (trademark). «BellaCosmetics» is an open joint stock company. In a short time the company has become a unique multi-level enterprise, which includes a major research center, a large independent production, powerful service and training centers. Laboratory and mobile marketing service direct their activities, knowledge and efforts to improve product quality, development of new markets.
At the head of the company's three shareholders are: the president, vice president and project manager. In 2016 the corporation «BellaCosmetics» awarded a certificate as "the most dynamically developing companies in the direct sales sector."
Main activities:
Scientific and technical base;
Production;
Sales of goods for beauty and health.
There are components, which displays the highest level of scientific and technical base of the corporation:
Raw materials: the Corporation relies on the internal market of raw materials - a unique emulsion AquaTem. In addition, the composition of cosmetic products includes more than 160 names of ingredients that are procured from leading manufacturers in the world. Important is the fact that the corporation enters into long-term contracts for the supply of raw materials;
Equipment: the whole process of manufacturing products was transferred to the high-tech evoke SET (vacuum Homogenizer);
Hi-tech: Company set a cooperation with several international pharmaceutical laboratories to develop raw technologies.
The corporation has a production plant for the production and the scale of production space and the full launch of the power plant is one of four of the largest cosmetic companies in the state. «BellaCosmetics» is the first cosmetic line made up of introducing drugs molecular and cellular cosmetology. Production is carried out in the following areas: oxygen cosmetics, skin care face, body, hair, etc. (more than 75 items);
Care products Oral;
Perfumery class "suite";
Nutraceuticals "taste of life";
Decorative cosmetics;
Accessories.
In the production of qualified technical and busy working staff with the required level of knowledge and high professional skills. The level of profitability of production of about 5%. The company has production and use more than 70 thousand. High level of service provided through:
IT and marketing and advertising department;
Sales Department;
Service Department
Availability of its Web site and online store.
These are several channels to promote the products. «BellaCosmetics» sells its products through distributors, using direct sales method. This makes it possible to establish personal contact advisers with their clients and the organization of meetings at your convenience for their time and in a convenient location to learn more about the high-quality products.
Goods (products) of the company « BellaCosmetics » is a cosmetic product. A key element of the commodity organization is the quality policy. Absolutely all the products are certified and produced in conditions equivalent to a pharmaceutical standard. The results of testing, the company entered into the state register of enterprises producing environmentally friendly and safe products. Produced cosmetics have its world counterparts, but the quality of the components included in its composition, is superior to similar products (Andergassen, 2016).
For a more detailed examination of the goods provided by the company «BellaCosmetics» will hold a three-level analysis of the product, in which the distinguished nature of the goods, the actual goods and the additional goods. Company «BellaCosmetics» produces high quality liquid goods, which customers buy and use every day. It helps people to be sure to achieve success, strive for harmony, to be refined and romantic, dynamic and compelling. The product range includes 11 lines: for dry and normal skin, for young and combination skin, "anti-acne", "anti-age", to combat cellulite, body care, skin around the eyes, a series of spa bath and soul, for oral care, children's series and cosmetics.
«BellaCosmetics» holds a patent on the application of AquaTem. For each item to create an individual package, such that it would be easy to distinguish one product from another. Each product has detailed instruction of how to use it properly. Modern packaging design, high technology, quality and continuous improvement of production makes the goods more attractive in the eyes of the buyer with respect to the competitors’ analogs. Trademark «BellaCosmetics», as a producer, has already established itself at its best, and so it can serve as an additional competitive advantage in the struggle for the buyer. In addition to the main product, the company provides a range of additional services, which were later justified.
When trading cosmetics sales success depends on the good name of the producer and consumer confidence. The use of high-tech equipment for the production of high-quality products, raw material base of the world's leading manufacturers etc. are the factors that allowed in a short time to create the most acceptable for the price, but not as effective as the most famous world brands a new collection «BellaCosmetics».
Product life cycle is the entire cycle of the goods find on the market - from its appearance to the withdrawal from the market. The marketing research aim is to maximize the residence time of the product on the market for all those stages when the goods are profitable for the organization. In general, the life cycle of goods on the market, includes a series of four stages of development: 1) introduction (occurrence of goods on the market); 2) sales growth; 3) saturation of the market; 4) decline (product withdrawal from the market) (Orbach & Fruchter, 2013). Each stage is characterized by its sales volumes.
In relation to the company «BellaCosmetics», it can be concluded that, judging by the increase in sales volume of cosmetics and profit, is now the goods are at the initial stage of the second stage of their life cycle. For a sustainable position in the market the company «BellaCosmetics» it is necessary to have a portfolio of products balanced in such a way that there are products with different stages of their life cycle (Orbach & Fruchter, 2013). Because today the sale of oxygen cosmetics brings «BellaCosmetics» the company's profit and has a positive dynamics of growth, we can say that now there is a process of conquest and expansion of the company «BellaCosmetics» market share. According to the matrix "product / market", the process of expansion of the market corresponds to the strategy of "expanding the market." Chance of oxygen cosmetics sales in emerging markets is estimated at an average level of risk and, therefore, is of the greatest interest of the producer in the medium term. In the future, only this kind will be considered in the course of this work
The basic principle of pricing is the cost method, in which on the basis of calculations (according to the established norms) calculate the net cost of the products, after which the resulting cost of accrued a certain margin (profit margin). In addition to production costs, another important factor influencing the pricing of products, is the tax policy of the government. At the initial stage - the acquisition of the necessary components for the manufacture of products and in the production process used by the basic pricing principle (Orbach & Fruchter, 2013). Then after receipt of an order for a company to purchase any product from the customer's products come to the company representative, avoiding a lot of intermediaries as product moves directly to the supplier, which significantly reduces costs. Sales then collect the goods from the supplier and delivers it to the consumer (Orbach & Fruchter, 2013). Thus, the use of the method of direct selling allows you to minimize the number of intermediaries, which favorably affects the pricing.
Today, there are several ways to promote goods from producer to consumer in the world: retail sale of a type of sale, which involves a complex system of organization of the chain resellers, warehouses, depots, stores - with each of the participants in the chain lays its profit in the value of the goods. The direct sales method of moving goods from the producer to the consumer involves personal contact with the customer and has the following advantages:
opportunity detection requirements client;
bringing before buyer full information;
individual approach.
Company «BellaCosmetics» promotes its products through distributors, using the method of direct sales. This makes it possible to establish personal contact with the consultants, their customers and the organization of meetings at a convenient time for them, and in a convenient location to learn more about the high-quality products.
The company takes care of all of the development and improvement of products and packaging, expanding the range of products, timely delivery and storage of goods. The company also provides the development of manuals, catalogs, conducting training, workshops, extracurricular activities business, publishing the necessary reference and promotional products.
A real analysis of the market applies only to products of the company «BellaCosmetics» which comes to the domestic and the external (foreign) markets, is to identify those markets the most attractive segments, favorable for «BellaCosmetics».
Based on consumer properties of goods - perfumery and cosmetic products are not essential commodities. The main consumers of these products in the market are individual citizens, to a lesser extent private beauty salon and trading firms. Relations with the organizations of consumers in the domestic and foreign markets are built on a long-term contract (contract) basis, with the widely used discounts, allowances system for inmates to purchase and sale contracts.
The study of consumer behavior on the market is carried out on the basis of targeted marketing positions. In this approach to the market segmentation refers to the process of breaking the aggregate of all consumers in the individual homogeneous groups, are equally responsive to consumer properties of the goods offered.
Since the main consumers of cosmetics and its attendant products are women of all ages, it is more convenient for market segmentation is to use a combined method, which includes two variable parameters, geographic and behavioral. As a strategy of market segmentation choose a differentiated marketing strategy that allows you to work on multiple market segments (Andergassen, 2016).
When positioning the product in the domestic and foreign markets need to use the distinctive quality of the products, namely the uniqueness and exclusivity, which is achieved by the introduction of their own new promising technologies based on modern high-tech equipment.
The purpose of this market research is to study the world and domestic markets perfumery and cosmetic products in order to determine:
The size and nature of the market;
Geographical location of potential users;
The share of the main competitors' products in the total volume of sales;
Trends in the external environment affecting its structure;
Differences in sales volumes in the various segments (Andergassen, 2016).
The main problem of the company «BellaCosmetics »is to increase the volume sales and increase its market share. Yet the company strives to:
Develop its cosmetic products production and sales in
Own distribution network;
Develop trade with foreign partners;
Use the results of research activities, carried out for the benefit of cosmetic products to increase quality and appeal to potential customers.
The external environmental factors have a "universal" impact on the company «BellaCosmetics», as an organization, and its near-competitive environment.
1) social.
A low level of incomes of the population as a whole and of the Nizhny Novgorod Region in particular, not a favorable factor;
Creation of new jobs, as a favorable factor.
2) technological.
Introduction (use) of advanced technologies on the basis of modern computer systems for research and development of new products. This factor has a positive effect on the organization, allowing it to increase its effectiveness and appeal among consumers (Ebrahimipour, Maleki Shoja, & Li, 2016).
3) economic.
The unstable economic situation in the country is also reflected in the state corporation «BellaCosmetics». There is the impact of a number of adverse factors:
Unfavorable monetary policy;
Constantly changing the tax policy of the state;
Drop in the exchange rate of the ruble against the world's currencies.
4) environmental.
Environmental situation also has its influence on the activity of «BellaCosmetics», referring to the impact of these adverse factors:
Rise in price all energy sources and lack of energy saving technology, threat global environmental disasters;
The lack of development of our country to dispose of household system waste, as a result of environmental pollution (Ebrahimipour, Maleki Shoja, & Li, 2016).
5) the impact of the key figures.
Depending on personal relations between people of the Presidential Administration, as well as deputies of the State Duma, to the activities of «BellaCosmetics», this influence can carry both positive and negative. In general, it has a complex effect on the climate of business activity and the general state of affairs in the industry (Ebrahimipour, Maleki Shoja, & Li, 2016).
Analysis of the competitive environment was conducted according to the degree of influence (dependence) Income «BellaCosmetics» 1) customers; 2) suppliers; 3) competitors. Also, there are three components of the competition: 1) direct competition; 2) the pressure of substitute products; 3) the threat posed by potential competitors.
direct competition is not very high: currently analogues «BellaCosmetics» Company's products (oxygen cosmetics) on the market almost none;
the pressure of substitute products available: raw material for cosmetics are produced unique emulsion AquaTem and exclusive supplements. These ingredients are designed using a unique technology and unique in the world it is not. The lack of substitute products is a positive factor;
the threat posed by potential competitors is rather low.
The possibility of the threat of potential competitors in the perfumery and cosmetic market, should be considered based on the development prospects of the cosmetic industry. While the information available there is no organization that could produce oxygen cosmetics on the level of the company «BellaCosmetics».
Nowadays, all production of perfumes and cosmetics in the world is concentrated in the hands of a few large companies that control about 70% of world production of cosmetics and 80% of all trade in these products. In the new millennium, women are unlikely to recover from cosmetic fever, so the forecast in the market environment is very optimistic and favorable for the development of production at the company «BellaCosmetics».
References
Andergassen, R. (2016). Managerial compensation, product market competition and fraud. International Review Of Economics & Finance, 45, 1-15. http://dx.doi.org/10.1016/j.iref.2016.04.010
Ebrahimipour, V., Maleki Shoja, B., & Li, S. (2016). Supplier selection considering product structure and product life cycle cost. Int J Qual & Reliability Mgmt, 33(5), 654-675. http://dx.doi.org/10.1108/ijqrm-05-2015-0069
Orbach, Y. & Fruchter, G. (2013). Predicting product life cycle patterns. Marketing Letters,25(1), 37-52. http://dx.doi.org/10.1007/s11002-013-9239-0
