Introduction
Market analysis is a prerequisite for any company or business that considers entering into a new market segment. Market analysis can reveal the market share, market trends, segmentation of services and products, market size, market growth, just to mention but a few. The analysis is important because it gives a business insight into what the market is like. Therefore, any business that is interested in exploiting a new market segment should consider doing a market analysis of the new market segment first. Executive shaving Company which is based in Yorkshire has been dealing with male grooming products of different brands. It has continually done well for itself over the years, shown by the high rate of turnover it exhibits. (Philip, 2001) The management of the company came up with a proposal of the Company exploring new market segments. It was decided that the Company should exploit traditional male and non-traditional Gay/female grooming markets to further increase its profits. As a result of the decision made, a market analysis of this market has to be done for the company to have first-hand information of what this market is like.
Market Analysis
A market analysis of the traditional male and non-traditional gay/female grooming markets has to be done to gather information on:
- Emerging market opportunities in traditional male grooming products
- Emerging market opportunities in non-traditional gay/female grooming products
- Accurate analysis of the market size
- Segmentation of the market
- The overall growth of the market by studying demographic trends
The market analysis needs to provide information on competition that Executive shaving company is likely to encounter, Forecasts reports of how this market is bound to change, and also provide strategic analysis of factors that would likely have an impact on the market. (Philip, 2001)
The grooming industry mainly comprises establishments managed to participate in retailing perfumes, toiletries, cosmetics, and other grooming products. The industry is so concentrated that it calls for a new entrant to seek other market segments. Toiletries and cosmetics manufactures are responsible for producing these products which are then sold to businesses. Some of the companies found in this industry include: E com Ventures Inc. and Estee Lauder Inc. These are the main competitors that Executive shaving Company should be well be prepared for before venturing into the market. The traditional male mainly considers shaving as the only grooming service he can obtain from any grooming store/shop. Therefore he will tend to spend more on razors and aftershave. On the other hand, the nontraditional gay/female uses a variety of products in their everyday grooming. These include cosmetics, perfumes, creams, deodorants, and other beauty products (Allen, 1981).
According to research carried out last year, it was established that many people were spending a lot of time in front of a mirror making sure that their grooming was in order. With the emerging group of gay people in society, a lot of attention should be paid to their grooming habits to meet their needs. Styling and coloring of hair were depicted by both gay people and women according to the research. There is a gap in the grooming industry that has not been fully exploited and Executive Shaving Company wants to take advantage of this. The grooming industry is bound to grow at a good pace in the next five years. Due to the revolution in grooming, the gay people in the society can influence the men’s grooming market as a whole (David, 1994).
Market analysis of the traditional male and non-traditional gay/female grooming markets has revealed that social factors have played a role in increasing the demand for grooming products in these markets. Many advertising agencies sell products using models. Therefore, many people are attracted to the models’ appearance and are inclined to buy the grooming products being sold to them. Market research of the grooming industry shows that grooming products are bought at varying percentages with products for skincare carrying more percentage of 35%. Hair products carry a percentage of 28% and the other make-up products carry a percentage of 29%. Perfumes are not frequently bought and it carries a percentage of 8%. (Surfchick, 2005) This can be illustrated graphically for clarity.
Competition in the industry has necessitated the establishment of industrialization and internationalization in the market. Customers of the market are mainly people involved in white-collar jobs. These people can afford grooming products and services that will be offered by the Executive Shaving Company. Loyal customers of this market are mainly non-traditional males and females. However, market research reveals that there is an increase in usage of grooming products by the other groups as well. The U.S government lowered tariffs on cosmetic products and this has influenced the establishment of many cosmetic industries in the country. Colour cosmetics have especially flourished in the market. (David, 1994)
The non-traditional gay/female grooming market is expanding at a capacity of 20%. The traditional male grooming market is rapidly declining due to the changing values and perceptions of grooming in society. With the expansion of the economy in many countries, it is hoped that the spending power of people on the products that will be provided by the Executive shaving company will grow. The market trend has been established and it shows that the demand for grooming products and services is on the increase. Market growth for grooming products has been projected to be at 3% annually from 1998 to 2010. Therefore, it would be very advisable for Executive Shaving Company to take advantage of the forecast. Image has been considered to be everything by many people. Questionnaires conducted by a marketing firm revealed that employers put so much on the image than anything else. People tend to be judged by their appearances. There is no other opportunity for making a first impression. (Kate, 1995)
This is one of the most important reasons why the market has been projected to grow at a steady rate for the next five years. (Media group PLC, 2007). This can be illustrated graphically as follows:
According to a press release made in the February of this year by the United Arab Emirates, The grooming industry is poised for expansion based on worldwide statistics. Last year, men were established to have spent $ 16 billion on grooming products. The press release predicted the global sales of male grooming products and services to reach 67% by next year which translates to $ 19.5 billion. Ms. Heather Nix believes that the only explanation for this trend is the fact that more men have started taking care of their appearances and the men in the United Arab Emirates are not an exception. Popular icons in the media have made much skincare and cosmetic products to be universally accepted. Both men and women in the quest of improving their appearances invest so much in grooming products (the United Arab Emirates, 2007).
The United Arab Emirates as the region has a great passion for movies and sports. As a result, many get a chance of seeing well-known personalities such as David Beckham who is considered to be stylish and good-looking. Since many men consider him as their role model, many go for razors, stylish creams, and other products which they believe will make them more like Beckham. Ms. Nix believes that this could have played a role in the increase in sales of grooming products in the region. Personal care has been tied up with masculinity and feminists in today’s society and that is why grooming products are getting wide acceptance in the market (the United Arab Emirates, 2007).
Traditionally, men were more prone to using grooming products that were limited to facial shaving. At times, the facial shaving creams had bad effects on the skin. Men today spend so much time taking care of their skin by investing in moisturizing creams that are meant to keep the skin in perfect condition. This calls for Executive Shaving Company to cater more for the non-traditional male because the traditional male is gradually becoming extinct. Most men today use hair products in the form of creams and gels as compared to the traditional man who paid minimal attention to his hair. Men want hair products with different fragrances from that of women. Executive Shaving Company should concentrate on producing grooming products that will target non-traditional males, and females/gay (the United Arab Emirates, 2007).
The grooming market is geographically spread to cover a wide area. There are very many grooming stores in the world with varied brands of products. Executive Shaving Company is faced with competition both locally and internationally. There is already a big player in the industry which the company has to watch for. International markets in the industry are very big because grooming has become a global subject. With the U.S economy growing steadily, it is hoped that the company will be able to exploit the market in the country before considering other international markets. The lifecycle of the industry is quite clear. It has been established that the market will continually grow at a steady pace due to the changes experienced in society (Kate, 1995).
There has been a lot of controversy on the use of some grooming products such as deodorants, perfumes, and creams. Some critics of the products have pointed out that the use of some deodorants may cause cancer. They argue it out by reasoning that some chemicals incorporated into deodorants may lead to uncontrollable cell division resulting in tumor formation which can be cancerous. The usage of some facial creams has also been associated with premature aging (Kay, 2005). Executive Shaving Company will not be able to do anything about this since this issue is out of the control of the company. However, the company needs to incorporate unique services in its daily operations that will give it a competitive edge over similar companies in the industry.
Conclusion
Grooming markets for non-traditional females/gays and males are continually growing due to the changes in society. The traditional male is becoming extinct in society and this market is rapidly declining. Owing to the great pressure that many people undergo to improve their appearances, the grooming market has gained momentum (Allen, 1981). Not only does this market target women as it was in the past, but it now targets men and gay people in society. Despite the criticism that has been poured on the usage of specific cosmetics and grooming products, the market is poised for further expansion (Philip, 2001).
References
- Allen, M. (1981): Selling Dreams: Inside the Beauty Business. New York
- De Castelbajac & Kate (1995): The Face of the Century. 100 Years of Makeup and Style. Rizzoli; New York
- Kay, G. (2005): Dying to Be Beautiful. The Fight for safe cosmetics; Ohio State University Press. Columbus.
- Media group PLC (2007): Grooming industry market forecast.
- Scranton & Philip (2001): Beauty and Business. Commerce, Gender, and Culture in Modern America; Routledge New York
- Surfchick (2005): Cosmetic market Analysis.
- Curtis, Tony &David G. (1994): Introduction to Perfumery. Ellis Horwood. New York. London
- United Arab Emirates (2007): Sales of male grooming and personal care products across the UAE and the region are experiencing unprecedented levels of growth, with the figures for 2004-2005 showing an increase of 28 per cent. Press release;