Smirnoff Ice Vs. Bacardi Breezer

Résumé du document

The male cosmetic market might seem inconsequential to many, but it is a developing market and whether a man uses cosmetics or dislikes it, the social evolution in men's behavior offers good opportunities. From a historical point of view, the first brand to enter the cosmetic market for men was Biotherm in 1988. At that time cosmetics manufacturers and distributors did not believe in this sector, but the developing demand of men for a seductive or attractive image, or for social recognition lead them to develop specific lines for them. Some players of this market think that this increasing demand originates in a shift in the social behavior of men, while others believe that brand's marketing strategies lead men to buy those products. While either point of view maybe right, it is indisputable that this market has become in reality a constant and viable business opportunity, and companies may expect good perspectives from it, on a long-term basis. We will study what is the best strategy for Clarins to adopt in order to become a leader in the French and European market in this context of economic growth and accelerated competition.

Extraits

[...] This strategy explains the difference in proportion between those two years. It also reveals that new launches and promotions have a real impact on the company's turnover. The following graph shows the repartition of the turnover between Clarins' three activities, Skin care, Make-up and Perfume. During the fiscal year 2004, the beauty division (make-up plus skin care) recorded revenues of 590.5 millions an increase of over fiscal 2003. In 2005 the turnover was 589.9 millions, it staid at the same level. [...]

[...] The cosmetics division is Clarins' largest unit. The company also has a perfumes division that produces fragrances such as Thierry Mugler and Azzaro. Its skin care division is the largest in Europe in terms of sales. Internationally the company has subsidiaries throughout the US, Europe, Middle East and Asia. Clarins sells its product through a distribution network of luxury perfumeries and department stores. It enables the group to combine service and dialogue with its customers through its beauty therapists and ambassadors. [...]

[...] The North American market is now a unique market of about 400 millions of consumers which represents $ 6.7 trillion market. The European Union counts 25 members since April 2004, it represents a free trade zone of approximately 450 millions consumers with diverse cultures, languages and economic strength. The last free trade zone is the MERCOSUR. It s composed of Argentina, Paraguay, Uruguay, Bolivia, Brazil and Chile. It is a trillion dollars market composed of 200 millions consumers. In this global context, cosmetic in Europe beneficiate of consumer flow generated from tourism. [...]

[...] The inventory turned at a pace of 6.43 times this year against 6.85 in 2004. It took four more days for Clarins to get paid in 2005 compared to 2004. A collection period of more than 100 days is very high, but it can be explained by the cut off date of the fiscal year, which is December 31st. This is the highest season in volume, and the deliveries were done, but not the payments. In terms of ability to meet its future obligation, the group Clarins is still in a good situation. [...]

[...] Men will probably go less and less to sales point and buy cosmetics on the Internet. This channel allow men to get the information they want, and it also respond to the need of discretion that can block men from buying cosmetics. Internet allows a customized offer and interaction. Sellers usually attract potential e-clients by proposing products that are supposed to be related to their needs. ClarinsMen has already an Internet website dedicated for men, but it doesn't offer the possibility to order on line. [...]