swot analysis

5.1 Macro Environment

Like other businesses, cosmetics companies are also affected by the various macro environment factors. Some factors, such as the economy will slowly affect every business. Tyro brand also deal with the inflation, unemployment rates and tax rates on daily basis. It is hard to maintain your position in today's world due to the large numbers of competitors, changes in interest rates, changes in cultural tastes, weather changes and change in government laws and policies. To deal with them positively is very difficult as today's world is the world of innovations.so if you are not properly dealing with macro environment factors they become threat for you. Tyro brand sustain their position as they consider and identify possible opportunities and threats that will impact on their position. The macro environment is analyzed using the DESTEP model. This analyses the opportunities and threats for the cosmetics business in Asian market. (Kapoor & Si, 2014).

5.1.1 Demographic

Urbanization

This is the basic trend that leads to more jobs in the industry due to evolving market of cosmetics in the current market. Cosmetics are used by individuals of all races and ethnicities, but urban consumers are increasing day by day because they are more interested in buying the most popular and expensive cosmetic items and they willing to spend more on the cosmetics brand. Tyro brand also target the urban areas and successfully selling their products in affordable prices. People of urban areas knows the subconsciously use of make up as they know these products can enhance their beauty. Tyro brand has done the research and come to the conclusion that wearing or putting make up can not only give you confidence but also make you smarter, happier, feel positive and even psychologically the person feels that using cosmetics make them attractive. The urban consumers are becoming groomed as the time is passing and world is getting into more fashionholic practices. Tyro brand is the most famous and easy to buy for urban people as their strategy for urban consumers is appealing and they know how to attract people from their whitening beauty products. This selling does not only help the company to prosper or customers to maintain a lifestyle but it has benefits for the society to have the increased job opportunities due to marketing of these newly introduced Dutch cosmetic products.

5.1.2 Economic

The economic condition of Chinese market is depreciating day by day due to low inflation rates. The overall economic condition portrays that the idea of enhanced cosmetic market. A cosmetic company under the brand name tyro with its whitening skincare products has great influence on the Chinese people, as talking about the Chinese economic condition, the product is very suitable according to the price aspects, and hence the product is affordable for everyone. (Kapoor & Si, 2014).

Now a day, as the economic recession is affected highly each and every sector.it is very hard to build and develop trust as it is a powerful prospect if you have trust in business world. It is very important that if you’re bringing any beauty related product your customers, employees, shareholders the man on the street and even media can help you to advertise and do positive marketing for you. A beauty brand of tyro has a special space and importance in Chinese markets because they have already develop and create trust by giving the good quality of products in reasonable cost and by focusing on the demands of the customers with the goal of creating profitability for their company as well. Tyro company always give importance to their stakeholders and listen that what they want you to make and bring up in the market. They know that their focus is on their customers always. If a customer trust them, they have a value amongst all other skincare and beauty products because when you build a trust in the market a customer always ready to pay for it. (Pajarinen, 2015).

5.1.3 Social Cultural

Culture is a system of beliefs and values that depicts the norms of the country. Using cosmetics is the modern trend in the current era as everyone wants to look beautiful and presentable. Chinese culture is the one that promotes latest fashion designing and lifestyle of the people. People are more conscious about their looks and presentation. The dressing, cosmetic sense is enhanced by the makeup industry of China. Many celebrities are endorsing the make-up products in Advertisements that generate the interest of the public. Celebrity presence attracts the public towards their product. (Kapoor & Si, 2014).

5.1.4 Technologically

With the vast dynamic changes a company must know that today's world is of technology so that a brand tyro, they use technology for the marketing and advertising of products as well as other concerns no like healthcare benefits of using their products. Tyro brand focuses on technological strengths more for better products of cosmetic. . (Jamróz, 2013)

They always focus on the printing machinery that the bottles, jars etc. are of unique and attractive designs with their printing prospects that can attract customers. Hoardings should be technological based to give more enhancements to the products. According to changing of world technology also needs to be upgraded. Tyro brand has made advanced changes in their production procedures and packaging side as well.by buying modern technological machinery they made the products more efficiently and better for their customers. They also use technology to increase its productivity effectively. This brand can always know that at what time they have to use technological methods to boost up their products growth. They always focus on the service of their modern machines and tools so that there is no hurdle in anything; they are well aware to how and where technological skills should be used. . (Jamróz, 2013)

5.1.5 Ecologically

Tyro brand has done a great research on demographics of Chinese markets because people of different ages, sex ,race, location, occupations have differently use the skin care beauty products, it seems like everyone has its own priority of using cosmetics. Tyro is successful in Chinese markets because they follow the online advertisements for the consumer based on demographic information. There are so many demographic factors specially like occupations, marital status and family background which affects the behavior of consumers towards the usage of cosmetics and skincare products as in Chines countries people spend on cosmetics related to whitening products.so tyro brand specially focused and introduced the whitening beauty products due to the demand of their Chinese customers need. Considering all demographic factors tyro brand usually used to research that how well their products are selling, who likes them and in what areas they are most popular and widely used. (Taniguchi & Sako, 2007)

Estimating the buying power of consumers related to all demographic groups is the priority of Tyro brand. Segmenting a population by using demographics allows companies to determine the size of a potential market. (Kapoor & Si, 2014).

The use of demographic factors helps tyro brand to determine whether their products are being used by the targeted customers for whom they designed the product and they are quite successful in it. Today tyro brand with their whitening beauty products in Chinese markets focus on demographics as they know it is most important in marketing obviously to increase the sales of company. By understanding consumer’s needs, any business can increase marketing efforts to target those customers who are their brand loyal. (Nashihin & Harahap, 2014). Tyro always gives affordable prices and brings their wide ranges for their loyal customers, so they can avail the products and use them. Tyro demographic segmentation is segmenting markets by age, gender, income, ethics, background and family Life style and background. Tyro has a wide variety of whitening cosmetics for everyday use, theatre, models, actors, men and women. Tyro is famous for bringing high quality skincare products but they are affordable for an average earning person. As the demographics are changed, every company can take notice that now what are the best policies to further work on? As with demographic changes GDP must be affected through different channels and it leads to higher tax rates and heavy duties to be paid. Tyro focused on demographics analysis and well-aware of the changes and needs their Chinese market needs. (Kapoor & Si, 2014).

5.1.6 Political

The effect that any government policy and other political concerns have on something is far extensive. Any brand before and after coming to any new market must study the political conditions of the countries. Many brands have a keen eye on regulatory shifts that could be a sustainable political impact for their products betterment. Tyro also does study on Chinese markets by considering broad environment components that can any how become a big issue if not worked on properly. Specially political and cultural environment of Asian environment of Asian countries because they know Asian people are more concern with their beauty as well as skin care products. (Blasko, Loughren, Ekong & Hufton, 2015).

Tyro brand focus very well on all internal and external political facts that influence the organization. Tyro remain scanning the political conditions because the political environment of a country affect the economic conditions as well as the performance and progress of an organization, and had a great influence on the taxes and government spendings.it also hits the social political factors that includes the living style of people, their wealth, their buying and selling power, education system, population etc. (Blasko, Loughren, Ekong & Hufton, 2015).

Tyro being a successful brand in cosmetics always focus that the political conditions of the country is stable , government policies are in their favor , foreign trade policies are beneficial for them, labor/consumer protection laws and other trade restrictions are suitable for them then they come to that market for a better scope. Focusing on the political factors affecting the company before and after are the corruption level of any market, how tariff rates are moving up and down and how to adjust them, what does anti-trust law settlements along with the employment law conditions and freedom of media

Tyro tracks the political environment. Change in political factors that can affect their business internally and externally. The political stability can always become strength and can appeal the local markets as well as other markets. (Taniguchi & Sako, 2007)

5.1.7 Legal

Like other issues Tyro brand has overcome to many legal issues as a company when coming to some new market like tyro brand came to Chinese market can face legal problems as considered to the main problem of a company.it included related to law situations, sometimes the problems arising during the audit sessions, many times a company can also face fraud that is by external and sometimes also by internal sources. Before launching or coming to any new market every one do some homework. Tyro brand has done researches and perform all the legal tasks before coming towards Chinese markets. Hence they become a successful brand with their beauty and skincare products. (Blasko, Loughren, Ekong & Hufton, 2015).

5.2 Mesco Environment

The mesco environment of China is mapped based on the ABCD model. This section describes the Customer, branch of industry, competition and distribution analysis. The opportunities and threats for Special Cosmetics will arise from the results of the mesco environment. The ABCD model incorporates information from field research. (Blasko, Loughren, Ekong & Hufton, 2015).

5.2.1 Customer Analysis

Customers are the general public that is attracted towards the make-up industry. Customers are categorized in the gender and society wise. Rich customers are the target market that is willing to buy expensive make up products. Right customers are attracted to get the most benefit of this analysis. Customer’s preference and tastes are considered to make the market more compatible. (Nashihin & Harahap, 2014).

5.2.2 Industry Analysis

5.2.2.1 Market Size

Before launching any product it is important to consider its market size, which is the number of individuals in a particular market that are potential buyer or seller of a product or service usually in a year. it refers to the maximum total number of sales or customers your business can see. it is important to know the market size of a product before launching it since it helps you to identify if it's a worthwhile investment or not. (Blasko, Loughren, Ekong & Hufton, 2015).

Often market potential is used as another term for market size. Calculating market size is considered as most difficult task for an entrepreneur, without proper knowledge of the market size one could not have possible business plans, therefore it should be taken seriously when approaching potential investors, basically market size is distributed in two groups addressable market that refers to refers to the maximum size of the opportunity for a particular product. Additionally, available market is describes as the number of people who are both willing and capable of buying a particular product. for better marketing strategy and product expansion there should be proper understanding of available market and competition within this market, this will lead to maintain firm position of the company in the market. It is necessary to have a correct estimate of market size to maximize the chances of business success. (Rothe, Fautz, Gerber, Neumann, Rettinger, Schuh & Gronewold, 2011)

Similarly it is necessary for our company to consider the market size of our skin care product. The skin care report provides the market size for the global market. Skin care products are used to improve and maintain the appearance of human skin. The Increasing demand for natural, herbal, and organic products is the reason for rapid boost in the market over the forecast period, as these products have no side effects. . (Jamróz, 2013)

Rising concerns regarding skin problems are also raising the demand of such natural products which is working as a fuel to the market growth. Along with this ant aging products are also in demand, thus the global skin care products market size is projected to reach USD 183.03 billion by 2025. people from urban regions are tend to be increasing consumers of most skin care product because of Rising awareness about both skin problems and its available treatment push consumers to start using skin care products quite early, thus supporting the market growth. although price of the product remains an important factor in increase or decrease in market size and consumer decision but there has been a noticeable increase in the demand for finest products that offer higher quality, especially for the product that provide moisturizer and anti-aging properties. Therefore rapid expansion of market size is seen in past few years especially due to the products that are multifunctional and are used by and under expert supervision have grown in popularity over the past few years. (Blasko, Loughren, Ekong & Hufton, 2015).

5.2.2.2 Product Life Cycle

In marketing product life cycle is an important concept, it describes different stages of a product, from the beginning that is the idea of a product to be launched finally to the end of the product. However some product continues to grow and others rise and fall depending on the market demand. (Jamróz, 2013)

The management of the industry uses this concept as an important factor in making decision about the product marketing, which includes proper timing of when to increase advertisements, when to reduce prices, expands its production or bring some changes in its packaging. The product life cycle has four stages: introduction, growth, maturity, and decline. These stages react the way a product is marketed. New products have to be explained while old ones need to be refreshed by changing packaging or introducing some innovations. Each stage defines its own characteristic which is necessary in maintaining a product in the market. Behind these major stages of a product lifecycle there are some basic sub-stages of each product to be managed. (Davis, 2013).

A survey was conducted about ultimate skin whitening products in different salons and drugstores, in which products value and its demand was reviewed. Especially in China, the demand of skin whitening products is raising rapidly in both genders, because of its market trending it was not hard to launch a whitening product due to its increasing demand, but there were certain issues about its clinical verification. (Blasko, Loughren, Ekong & Hufton, 2015).

Like other products, the cycle of our skin whitening product started with some research and developments. Although use of skin whitening products in China are very common among women as well as men, in order to make it innovative, high in quality and different from other whitening products, it was a challenge for the company to launch a product which would survive in a competitive market. In skin whitening products consumers always want something new with good quality along with seasonal constraint. Reviewing the market trend and customers need along with packaging, the first step of launching our ultimate skin whitening product was completed. (Kapoor & Si, 2014).

Further product formulation starts, with the help of recent research the formulation of the product takes place in which the formation is analyzed about its Concentration, allergens, chemical reactions, along with its costs analysis to match the requirements of the product in the market. (Davis, 2013).

After this formulation stage raw material are sent to different packaging suppliers to compare the product with others. List of substance like allergens, size and color is finalized, next quality and cost of the product are analyzed, after the approval of the raw material used in the product the formula is confirmed and sample is prepared. In this stage by adding certain additional features, we assure that the quality of the product is up to the mark. (Pajarinen, 2015).

When these important stages are accomplished we further need to focus on the packaging of the product, as it is the first thing a buyer sees and read about the product. For our ultimate skin whitening product this step of packaging have to be effective and detailed, including text written on it, colors, graphic, everything’s is chosen carefully according to the outer packaging and marketing requirements. Having so many similar products in the market it was decided to emphasize more on product differentiation in order to beat the competitors, also the packaging is made effective to deal with distribution of product in a market with similar products. (Purba, 2017)

In order to be launched safely certain requirements are fulfilled, ensuring that the product is safe to use and obey with regulations, several test are made to ensure the safety by checking the quality and verifying the chemical content in the product. Our compliance team gathers all the documentation and product information that would be helpful in its commercialization. (Kapoor & Si, 2014).

When all of the above stages are approved then comes the turn to check whether the product is up to the requirements. The final product is reviewed to ensure its agreement with the initial marketing brief, if the sample is declared passed then its time when the product is ready to be launched in the market, it means the product is finally commercialized. (Jamróz, 2013)

Throughout this complex procedure of launching our ultimate skin whitening product, our team work and communication skills have helped us achieve the required result on time. (Jamróz, 2013)

5.2.2.3 Market Trends

Over a period of time there is certain change in trends of a product , trending inn simple words is described as change over a period of time, market trend refers to changes and developments in buying and selling of a product in the market. It could easily be verified by knowing the direction of movement of financial market over time. (Davis, 2013).

In actual this change or movement is dependent on the psychology of a market which can either develop or end the market. Anything that alters the market your company is dealing in is said to be market trend. For a company to stay competitive one has to keep well know how about the market trend to meet the consumers need. Continuous analysis of market trend enables the industry to look at its position in the market i.e., the position of the industry when it was started, its growth over a period and where it is expected to go. It is important to identify the market trend of a product before investing to decide whether it’s profitable or not. (Taniguchi & Sako, 2007)

Each trend will affect your organization in different ways so it is important to look after the trend s that are relevant, and see how they can affect your business. interest and needs of consumers is considered at first place when analyzing a market trend, one have to keep an eye on what current market trends are going on to stay informed about consumers’ needs and interest if this process of market trend analysis is not done accurately the industry would be left behind as consumers will move on to other products that meet their requirement. (Jamróz, 2013)

The market trend of the ultimate skin whitening product is rising higher and higher, especially in China white skin has always considered as a beauty trend, which is expected to rise further and stay in trend in future also. According to global industry analyst latest report, it will continue to boost the global market in next five years. The growing desire of lighter skin among men and women is continuously increasing the market trend of different products. Because of increasing consumer consciousness regarding their physical appearance skin lightening lotions and creams have become the fastest selling product in the market, probably there is no market left in China where these whitening products have not reached. (Jamróz, 2013)

Due to this rising market trend of whitening products, many new investors have started investment, and expanding their business in term of product differentiation, quality and pricing. Various strategic developments are made which would boost up the market trend of whitening products. This analysis of skin whitening product indicates significant growth as large number of consumers are willing to spend on skin whitening products. However there are certain limitations that this market tends to face due to lack of documented evidence related to the clinical value of skin lightening products. But this does not have much effect on the market trend. According to the report, the global skin lightening products market is expected to reach a valuation of over US$ 24 Bn by the end of 2027, growing at a CAGR of 6.1% during the forecast period. (Hoover, 2017).

5.2.3 Competitive Analysis

Tyro brand of Dutch beauty Cosmetics Company has many cosmetics specially focused on whitening beauty along with healthcare. For their success they always focus on demographics, economic situations, legal aspects etc. (Pajarinen, 2015).

5.2.3.1 Direct Competitors

There are various competitors in the market for Special Cosmetics like Blippo Kawaii Shop, Etude House, Korean products and many more. The strategies should be devised by taking into account the strategies of these competitors that are the strongest market players.

5.2.3.2 Indirect Competitors

The Korean industry is the indirect competitor that takes the whole industry of make-up and promotes different skin care products along with fashion and lifestyle. (Davis, 2013).

5.2.4 Distribution Analysis

Distribution is the platform that suggests how to market the products and their marketing is done to attract more number of customers. Current Distribution Channel of Competitors is the target that is to be achieved by the company in order to have the prominent place in the market. The distribution possibilities are mapped by having a look in the policies of the other market leaders. The best distribution channel is the placement on outlets or opening of the make-up brands in the main location of the city or the town in which the promotion is to be done. The distribution process is designed to have the maximum sales from these products and attain the increased market level. (Davis, 2013).

References

Kapoor, M., & Si, S. (2014). Strategic analysis of cosmeceuticals with special reference to antiaging creams. Int J Bus Manage Invent, 3, 44-52.

Rothe, H., Fautz, R., Gerber, E., Neumann, L., Rettinger, K., Schuh, W., & Gronewold, C. (2011). Special aspects of cosmetic spray safety evaluations: Principles on inhalation risk assessment. Toxicology Letters, 205(2), 97-104.

Davis, K. (2013). Reshaping the female body: The dilemma of cosmetic surgery. Routledge.

Taniguchi, T., & Sako, T. (2007). U.S. Patent Application No. 29/238,091.

Blasko, T. N., Loughren, E. M., Ekong, S., & Hufton, G. C. (2015). U.S. Patent Application No. 29/385,294.

Purba, D. A. (2017). Persuasive strategies in woman cosmetics advertisement of skin whitening product on television commercial. LINGUISTICA, 6(4).

Jamróz, M. H. (2013). Vibrational energy distribution analysis (VEDA): scopes and limitations. Spectrochimica Acta Part A: Molecular and Biomolecular Spectroscopy, 114, 220-230.

Hoover, E. (2017). Using regression analyis and a simulation model to deveop probability of achieving a market share goal (Doctoral dissertation, Kansas State University).

Pajarinen, K. (2015). Customers and competitors in a new service generation process.

Nashihin, M., & Harahap, L. (2014). The Analyis of the Efficiency of BPR-S: Production Function Approach Vs Financial Ratios Approach. Procedia-Social and Behavioral Sciences, 115, 188-197.