BBPM2103 OUM Marketing Management May 2023

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 17

BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS

MAY 2023

BBPM2103

MARKETING MANAGEMENT I

MATRICULATION NO : 970529106508001
IDENTITY CARD NO. :
TELEPHONE NO. :
E-MAIL :
LEARNING CENTRE : Shah Alam Learning Center
Table of Contents
1.0 Introduction: Business Definition............................................................................................................. 3
1.1 Elianto........................................................................................................................................................ 3
1.2 IN2IT...........................................................................................................................................................4

2.0 Market Environment Analysis.................................................................................................................. 5

2.1 Elianto................................................................................................................................................... 5
2.1.1 Strengths.................................................................................................................................................5
2.1.2 Weakness................................................................................................................................................ 6
2.1.3 Opportunities...........................................................................................................................................6
2.1.4 Threats.................................................................................................................................................... 6

2.2 IN2IT....................................................................................................................................................... 7
2.2.1 Strengths.................................................................................................................................................7
2.2.2 Weakness................................................................................................................................................ 7
2.2.3 Opportunities...........................................................................................................................................7
2.2.4 Threats.................................................................................................................................................... 8

3.0 Business Portfolio Analysis...................................................................................................................... 9


3.1.1 BCG Matrix for Elianto and IN2IT.............................................................................................................9
3.1.2 Stars...................................................................................................................................................... 10
3.1.3 Question Marks (or Problem Child)........................................................................................................10
3.1.4 Cash Cows..............................................................................................................................................10
3.1.5 Dogs...................................................................................................................................................... 11

4.0 Conclusion............................................................................................................................................ 12

5.0 Online Class Participation (OCP)............................................................................................................ 13

6.0 Reference.............................................................................................................................................. 16
1.0 Introduction: Business Definition

1.1 Elianto
Malaysia is the birthplace of Elianto, a cosmetics manufacturer. Since its founding in 2005,
the business has become well-known for its reasonably priced, environmentally conscious
cosmetics. The Italian term for sunflower is Elianto, and the business takes its name and
inspiration from that flower's remarkable beauty and practicality. Elianto is positioned as a
masstige beauty brand because of its extensive selection of reasonably priced high-quality
cosmetics. All items are 100% imported from Switzerland, Italy, South Korea, Taiwan, and
Germany and use botanical extracts.

"We aimed for an innovative, lighthearted, and risk-taking makeup style. We honour variety
and uniqueness when we release a line like Elianto Durian Musang King. "Makeup has no
limits; it allows women to express themselves,"- explains Teo Ai Siong, CEO and owner of
Elianto Make-Up.

The company's (a) vision is to be a prominent affordable cosmetic brand that combines the
essence of nature with the most recent beauty trends, inspiring self-assurance and individual
expression.
Furthermore, their (b) mission aligns with their vision to provide an extensive selection of
reasonably priced, nature-inspired cosmetics that are suitable for all skin types, with a
commitment to sustainability.

The following are some of Elianto's competitive advantages that set it apart from the market:
(c) Nature-Inspired Formulations: Elianto's formulations are inspired by nature, and the
company markets its cosmetics to people concerned about the environment. Elianto aims to
meet the rising demand for all-natural cosmetics by creating products that help the skin look
and feel better. (d) Affordable Pricing: The brand markets itself as an inexpensive cosmetics
alternative, broadening its potential customer base. Elianto aims to appeal to frugal shoppers
by providing products at low prices without sacrificing quality.(e) Product Range: Elianto's
extensive array of products is designed to meet the demands of consumers with a wide
variety of skin types and cosmetic concerns. Elianto offers a wide range of skincare,
cosmetics, and beauty accessory products to cater to its diverse customer base.
1.2 IN2IT
Established in the Malaysian market by AP Cosmetics Corporation Sdn Bhd [555118-U] in
2000, IN2IT is a cosmetics brand owned by Asia Pacific Cosmetics Corporation (APCC).
Waterproof, long-lasting, fragrance-free, and packed with vitamin E and other natural skin
moisturizers, IN2IT cosmetics are known for their exceptional quality. Despite its exceptional
quality, it is surprisingly cheap. Ingredients and technology in IN2IT goods are sourced from
Japan and Europe. All of their products are produced following the strictest global safety
regulations.

The company's (a) vision is to become an industry leader in the cosmetics industry by
providing consumers with high-quality, reasonably priced makeup that allows them to
highlight their individual beauty and sense of style.
Moreover, their (b) mission is to make a variety of fashionable and reasonably priced
cosmetics so that people may try out new styles and express themselves more fully through
their appearance.

IN2IT differentiates itself through the following competitive advantages. (c)Affordable


Price: IN2IT is advertised as a cost-effective cosmetic brand aiming to provide quality
makeup products to a larger customer base. IN2IT aims to offer quality cosmetics at an
affordable price point, providing value for money to its customers. The company's strategy is
to cater to individuals looking for affordable pricing without compromising the quality of the
products. (b) Products that are Both On-Trend and Versatile: This cosmetics line aims to
please fashion-forward shoppers by stocking various products that may be used to create a
wide range of looks. The report states that IN2IT is up-to-date with the latest beauty trends
and ensures that its product range aligns with the current preferences of its target market. (c)
Diverse Range: offers various cosmetic products, such as foundations, eyeshadows, lip
products, and others. This diverse range of products caters to different makeup preferences
and requirements. The brand aims to provide customers with a wide range of products,
enabling them to achieve their desired makeup looks.
2.0 Market Environment Analysis

The SWOT analysis is a strategic planning tool that enables businesses to evaluate their
internal strengths and weaknesses, along with external opportunities and threats. The
statement explains that a structured approach is used to evaluate a company's current state
and environment, which helps make better decisions and develop strategies.

The two primary classifications of factors in the analysis are internal and external. Internal
factors refer to the controllable aspects of an organization. The internal resources,
capabilities, and performance of a company are related factors. The internal factors of a
company can be categorized into two groups: strengths and weaknesses. External factors
refer to elements beyond an organization's direct control and are shaped by the wider
business environment. The term "opportunities and threats" refers to the external factors in
the market or industry in which a company operates.

Businesses can gain a comprehensive understanding of their situation by examining both


internal and external factors. This analysis allows them to identify areas of strength to utilize,
weaknesses to improve, opportunities to pursue, and threats to mitigate. This analysis aims to
provide a basis for creating strategies and informed decision-making that can enhance
performance and attain business objectives.

2.1 Elianto

2.1.1 Strengths
Elianto, a cosmetics brand, has a distinct advantage over its competitors by focusing on
nature-inspired formulations. By utilizing natural ingredients in their products, Elianto
caters to a growing consumer base that values eco-friendliness and sustainability in their
beauty regimen. This emphasis on natural ingredients sets Elianto apart from other brands in
the cosmetics industry and has helped them establish a loyal customer base.
On top of this, the brand offers an extensive selection of cosmetics, including skincare,
makeup, and beauty accessories. This comprehensive range ensures that customers can find
everything they need to enhance their beauty and achieve their desired look. With Elianto,
customers can rest assured that they will have access to various high-quality products that
cater to their unique beauty needs.
2.1.2 Weakness
Elianto may need to improve its global presence compared to other global cosmetic brands.
Despite its success in Malaysia, Elianto's international reach may not be as extensive as some
of its competitors. This could potentially impact the brand's ability to expand its customer
base and increase its market share in other regions. Therefore, it may be necessary for Elianto
to explore strategies to enhance its global presence and increase its brand awareness in other
countries.

2.1.3 Opportunities
The beauty industry is experiencing a shift in consumer preferences towards natural and eco-
friendly products. This trend presents a lucrative opportunity for companies like Elianto to
expand their customer base and cater to this market segment. As consumers become more
aware of the impact of their purchasing decisions on the environment, they seek sustainable
products that have a minimal negative impact on the planet. Elianto can capitalize on this
trend by offering natural and sustainable beauty products that meet the demands of this
growing market. By doing so, the company can attract new customers and increase its
market share in the beauty industry.

2.1.4 Threats
The competition in the cosmetic industry is intense, and companies must be innovative and
strategic to stay ahead. The high level of competition is driven by the demand for
cosmetic products, which is constantly increasing, and the desire of companies to capture a
larger market share. Elianto is confronted with competition from both local and international
players. This threat poses a significant risk to the company's market share and profitability.
The competition is intense, and Elianto must be proactive in its approach to maintain its
position in the market. The company must focus on developing innovative products,
improving its marketing strategies, and enhancing its customer service to stay ahead of the
competition.
2.2 IN2IT

2.2.1 Strengths
IN2IT's emphasis on offering reasonably priced cosmetics has enabled the company to gain
a competitive edge in attracting customers sensitive to pricing and expanding its customer
base. The affordability of IN2IT's products is a key factor differentiating it from its
competitors. By providing affordable cosmetics, the company has appealed to a wider range
of consumers looking for quality products at reasonable prices. This strategy has proven
effective in helping IN2IT establish itself as a leader in the cosmetics industry.

This brand's ability to offer a wide variety of makeup products that are both trendy and
versatile has allowed them to stay relevant in the industry and cater to the evolving
preferences of its target market. The importance of offering a trendy and versatile product
range cannot be overstated. With the beauty industry constantly evolving, brands must keep
up with the latest trends and offer products that align with the current fashion. Doing so can
attract a larger customer base and stay ahead of their competitors. Moreover, versatility is
equally important when it comes to makeup products. Today's Customers are looking for
products that can serve multiple purposes and be used in different ways.

2.2.2 Weakness
One of the potential weaknesses that IN2IT may face is related to brand recognition.
Establishing strong brand recognition and awareness could be a challenging task, especially
in markets where there are already well-established brands that dominate consumer
mindshare. This could pose a significant hurdle for IN2IT to overcome, as it may need help to
differentiate itself from its competitors and attract new customers. Therefore, IN2IT must
develop a comprehensive branding strategy that effectively communicates its unique value
proposition and resonates with its target audience. By doing so, IN2IT can increase its brand
recognition and awareness, leading to increased market share and profitability.

2.2.3 Opportunities
The cosmetics industry is witnessing a surge in demand for affordable products as
consumers increasingly prioritise value for money and budget-friendly options. This
trend presents a significant opportunity for companies like IN2IT, which can leverage their
affordability factor to attract more customers. By offering cost-effective cosmetics, IN2IT
can tap into this growing demand and expand its customer base.

2.2.4 Threats
The beauty industry is dynamic and ever-changing, with consumer preferences and trends
shifting rapidly. Keeping up with these changes is essential for businesses operating in this
sector, as failing to do so can result in lost market share and decreased profitability. This is
especially true for IN2IT, which must remain competitive and meet market demands to
succeed. To achieve this, IN2IT must adopt a proactive approach to monitoring and adapting
to changing customer preferences. By doing so, the company can ensure that it remains
relevant and responsive to its customers' needs while maintaining a competitive edge in the
marketplace. Therefore, IN2IT must prioritize continuous monitoring and adaptation in order.
3.0 Business Portfolio Analysis

3.1.1 BCG Matrix for Elianto and IN2IT

These products are market leaders These products are being questioned
and produce a high ROI. They use - they can become Stars or become a
HIG

a lot of cash to become leaders. drain, turning into Dogs.


H

ORGANIC SKINCARE
Market Growth Rate (Cash Usage)

BEAUTY PRODUCTS LINE

BASIC/SYNTHETIC BEAUTY
PRODUCTS

These generate cash and have a These products are draining cash
high market share and don’t and have low market share. You
require constant investment. will divert away from these ones.

BASIC NAIL CARE/NAIL POLISH


MAKEUP LINE PRODUCTS
LOW

HIGH Market Share (Cash Generation) LOW

Figure 1.1 BCG Matrix

IN2IT

ELIANTO
3.1.2 Stars
IN2IT's basic beauty products, such as foundation, for instance, has gained a reputation for
being one of the best in the market thanks to their ability to provide excellent coverage and
long-lasting wear. Similarly, Elianto's natural skincare-infused makeup products have
become increasingly popular. In today's highly competitive business environment, both
companies constantly seek ways to maintain their growth and market leadership. The strategy
they have adopted is to invest in and promote their products through multiple channels with
keeping in mind the current trends such as 3 rd party platforms such as Shopee, Lazada,
Guardian, Watson, etc. This approach helps capitalize on the potential for further success and
ensures that both manufacturers remain at the forefront of their industry. This enabled them
to maintain their growth and market leadership while capitalizing on the potential for further
success.

3.1.3 Question Marks (or Problem Child)


The skincare line of both Elianto and IN2IT can be classified as Question Marks. This means
they have a low market share but operate in high-growth markets. Elianto's skincare line has
recently entered the skincare market and is still trying to establish itself by providing multiple
discounts for consumers if they purchase in bulk or during the festivity season. As for IN2IT,
there is a hike in Korean skincare from consumers all around the world nowadays for their
formulation of naturally derived skincare. IN2IT, a brand established in Malaysia still uses
synthetic items in their skincare which draws them back from making their skincare line a
high-shared market product. Both companies focused on targeted marketing, product
differentiation, and allocating resources to increase market penetration. They identified and
targeted specific customer segments, and companies to tailor their marketing efforts to meet
their target audience's unique needs and preferences. This helped to increase customer
engagement, build brand loyalty, and ultimately drive sales.

3.1.4 Cash Cows


The basic makeup products of Elianto and IN2IT such as their eyeshadow palettes and single
eyeshadows are prime examples of Cash Cows. These products have a high market share but
operate in markets experiencing low growth. As such, they are expected to generate little
revenue growth in the future. The reason being there are more unique eyeshadow palettes that
are being offered by other brands such as Huda Beauty, Tarte, Fenty Beauty, etc. In today's
competitive business landscape, it is imperative for companies to not only maintain their
market positions but also explore new avenues for growth. In this regard, both companies
should focus on leveraging their strong customer bases to drive sustained growth. They
should also consider diversifying their product offerings or exploring alternative areas to
innovate and stay ahead of the competition. By adopting these strategies, both companies can
ensure long-term success and profitability.

3.1.5 Dogs
The nail care/nail polish line of Elianto and IN2IT share some common traits. Specifically,
both brands operate in markets that are already saturated and have low growth potential.
Additionally, they have a relatively low market share compared to their competitors such
O.P.I, Born Pretty, Essie, Olive & June, etc. Given the current circumstances, both
companies should reevaluate the feasibility of their respective product lines and explore
alternative strategies. Not all product lines may show promising results or contribute
significantly to the company's growth. In such cases, the company may need to consider
discontinuing these lines. This could be due to various reasons, such as declining sales, high
production costs, or low profitability. The company can focus its resources on more
profitable products and reduce operational costs by discontinuing these lines.
4.0 Conclusion

For cosmetics companies like Elianto and IN2IT, SWOT analysis and the BCG Matrix are
crucial tools for understanding business performance, market position, and strategic planning.

First, a company's internal and external opportunities and threats can be analyzed using the
SWOT framework. Elianto and IN2IT can evaluate their competitive advantages, such their
distinctive product formulas, reputable brand names, and efficient supply chain, by doing a
SWOT analysis. They can acquire an edge in the cosmetics market by focusing on what they
do well and expanding on that. In addition, they can address areas for improvement after
realizing they have disadvantages, such as limited distribution channels or outdated
technology.

The SWOT analysis is also helpful in spotting potential advantages and dangers in the wider
environment. This data will help Elianto and IN2IT spot shifting market dynamics, consumer
tastes, and untapped markets. They can pursue strategic expansion strategies by capitalizing
on trends like the uptick in interest in organic and all-natural beauty products and the opening
of new markets abroad. Furthermore, they can proactively build contingency plans and alter
their strategy in light of prospective challenges like severe competition or changing rules.

Elianto and IN2IT can use the BCG Matrix to better understand the strengths and
opportunities of their various product lines. They may direct funding where it will have the
greatest impact, boost the rise of their stars, and protect the cash flow of their cash cows.
Strategic choices about whether to continue investing can be made. By studying canines,
businesses may see whether goods need updating or eliminated altogether.

In conclusion, based on the analysis that has been conducted with the SWOT and BCG
methods. I believe the best manufacturer would be Elianto the reason being, they have
adapted to the current trend of using organic things in cosmetic products. And to retain their
consumers they have strategically introduced a Membership & Loyalty program in which
consumers can collect points and redeem them as cash vouchers. On top of it, they have
marketed their products to 3rd party E-commerce platforms such as Hermo, to sell globally
and provide easy access to consumers from all around the world.
5.0 Online Class Participation (OCP)
6.0 Reference

 Gupta, S. (2021, January 19). Portfolio Analysis - 7 Methods And Techniques For
Product Position. 𝗍һ ᥱ k ᥱᥱ⍴І𝗍sіm⍴ᥣᥱ. https://www.thekeepitsimple.com/portfolio-
analysis/
 Elianto Case Study. (n.d.). prezi.com. https://prezi.com/noiivknihr51/elianto-case-study/
 Elianto. (n.d.). Elianto. https://www.eliantocosmetics.com/
 About Us. (n.d.). About Us. https://in2it.com.my/about_us
 IN2IT Trademark of Asia Pacific Cosmetics Corporation Limited - Registration Number
5760475 - Serial Number 87775072 :: Justia Trademarks. (n.d.). IN2IT Trademark of
Asia Pacific Cosmetics Corporation Limited - Registration Number 5760475 - Serial
Number 87775072 :: Justia Trademarks. http://trademarks.justia.com/877/75/in2it-
87775072.html
 in2it — Articles — Project Vanity. (2019, August 26). Project Vanity.
http://www.projectvanity.com/projectvanity/tag/in2it
 How SWOT Analysis Can Help Grow Your Business. (2023, February 21). Business News
Daily. https://www.businessnewsdaily.com/4245-swot-analysis.html

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy