Napoleon Perdis: Marketing Plan Report

A marketing plan is an essential part of any business and it can be done for the product, service, product line, etc. It is usually a detailed report which consists of the steps to be taken to achieve the objectives or targets of the business. This aspect is equally important for an existing company and a start-up company. In this research work, the marketing plan has been done through a series of steps. They are:

• Mission and purpose/objectives
• Situational analysis
• Internal environmental analysis
• External environmental analysis
• Target market segmentation/customer analysis
• Competitor analysis
• Conclusion with recommendations.

The marketing plan usually calls for a situation in which the marketing personnel should be aware of the business in detail, past marketing plan, market condition and they should set goals for future improvement. Only a strategic marketing plan can lead the company to success. A strategic marketing plan should always be a focused strategy and a differentiated strategy. The situation analysis includes company analysis, customer analysis, and competitor analysis. The internal and external environmental analysis of the company can be done through SWOT analysis and the macro-environmental analysis can be done through conducting PEST analysis. The company must be clear in taking up a particular marketing plan strategy and must discuss the marketing mix too, which consists of 4P’s – Product, Price, Place, and Promotion. And most essentially, the marketing personnel should set goals, both short-term and long-term, for their business.

In this research work, situation analysis has been conducted on the cosmetic industry. The marketing plan of NAPOLEON PERDIS, a manufacturer of cosmetics and natural skincare products has been analyzed.

Products used for beautifying, promoting attractiveness, and cleansing are called cosmetics. Several categories under the cosmetic industry include altering the appearance, beautifying, coloring, conditioning, protecting skin, nails, eyes, lips, teeth, etc. Modern cosmetics include skincare preparations, foundation, face powder and rouge, eye makeup, shampoo, hair curling or straightening, dyeing, bleaching, nail polishing, lipstick usages, etc. Several international brands available are Loreal, Revlon, Garnier, Almay, Neutrogena, Nivea, Unilever group, Maybelline, ponds, etc. Napoleon Perdis is one such company in the cosmetic industry.

“The cosmetics industry is a multinational, multi-billion-dollar industry. Of the major firms, the oldest and the largest is L’Oréal, which was founded by Eugene Schueller in 1909 as the French Harmless Hair Colouring Company.” (Cosmetics, n.d., The cosmetics industry today, para.1)

Napoleon Perdis

Napoleon Perdis was started in 1995 by Napoleon. This company has 59 corporate states across Australia and has a sale of its products in about 800 locations. The founder of the company also started ‘Napoleon Perdis Makeup Academy’ for providing education in the make-up and cosmetic industry. “Napoleon’s philosophy is focused on female empowerment and individuality taking a cross-generational, multi-ethnic approach to beauty.” (Napoleon, 2008, para.2). With the partnership of his brother, Emanuel Perdis, and his wife Soula-Marie, Napoleon Perdis started his company at the very initial outset. The company has four stores set up in U.S. Napoleon Perdis is the current makeup sponsor for the Mercedes Benz fashion festival. The company provides tools for bringing a perfect look and enhancing the beauty of women. Napoleon Perdis, who is the founder of the company “has made his mark around the globe with inspirational and customized capsule collections of products that empower women.” (Napoleon, 2008, para.2).

Napoleon Perdis has a wide variety of products for protecting the face, eyes, lips, body, nails, and also brushes, tools & accessories, gift packs, the divine Marchesa, etc. Australia’s top model Mellissa George campaigned for a new product called Napoleon DeVine Goddess in 2007, which was one of the top news in Australia.

The products for the face line include facing Marshmallow Foam Makeup Remover, Voila oil control, light patrol Luminizer Palette, Autopilot Duet makeup remover, etc. The foundation line includes a Camera finish, bronzing brush gift pack, foundation stick, light-diffusing, minimum make-up, China Doll foundation, Translucent loose powder, Boudoir Mist spray foundation, etc. The concealer line consists of Pro palette concealer, China doll concealer, patrol – concealer it, etc. Products for cheeks include Cheek to chic blush Duo, Mosaic powder & puff, Barley blushing, etc. Also, Napoleon Perdis produces cleansers, lotions, etc. The products for beautifying the eyes include Long black Mascara and many types of mascaras, Colour discs, Ultra pearl, loose dust, Cake eyeliner, sealer, eye patrol, eyebrow pencil, and eye pencil. Lip products of Napoleon include Devine Goddess lipstick, Luminous lip veils, Lip service, Lip patrol, Lip pencil, lip gloss, love bite lip plump, gloss patrol Sydney, etc. Body products consist of Gardenia glam bodypack, mosaic powder, and puff, after sun body oil, smooth over body scrub, pomegranate bodypack, French lemon bodypack, etc. The brushes provided by Napoleon Perdis are bronzing brush, leather brush roll, foundation brushes, lip brushes, cheek brushes, etc. The tools and accessories category involve Lash Curler, Lash patrol faux lashes, silver makeup case, etc. “From Napoleon Perdis is The Divine Marchesa, a scene-stealing collection inspired by one of history’s great originals, the Marchesa Luisa Casati.” (The divine Marchesa, 2008, para.1).

Strengths and weaknesses of Napoleon Perdis

Perdis, before establishing, made thousands of makeovers in real women and Napoleon Perdis always concentrated on changing the plain to polished, which turned to be his successful marketing strategy. The company believes in quality and value. Napoleon is a man of energy and always believes in hardworking. These marketing principles helped the company to become successful not only in the local market but also in the global market. The high prices of the products seem to be a weakness for the company. Even though the company encounters several costs during the production, people feel the price to be very high.

The major marketing strategy used by Napoleon Perdis is the promotion of their products through famous or top faces of the world. They introduce a new product into the market through top models. Usually, for the promotion of skincare, they utilize famous movie stars or pop singers and for promoting their body care products, they make use of the top sports stars. For example, while marketing their products, they mainly concentrate on

• Preparation for the launch
• Determine the external environment
• Experimenting or testing the product
• Providing the supportive products together with the new product etc.

Currently, “Napoleon Perdis has created this fashionable kit featuring catwalk-worthy products” for the Mercedes Benz Fashion Festival. (Runway range: get your Ltd Ed, n.d.). Hence, by analyzing the need and market condition, Napoleon Perdis introduce a new product into the market.

In the overall cosmetic industry, the market rate of hair care products is the largest one with high market coverage, then comes the deodorants and body products. In this concern, the Napoleon Perdis Company has a low coverage for hair products and this may lead to less overall market coverage too. Even though Napoleon Perdis has good coverage for the deodorants and perfume sector, the lack of hair products may affect their overall market presence. Napoleon Perdis should also concentrate on men grooming products also, as this sector also covers a major portion of the overall cosmetic market.

External environmental analysis includes the study of various external factors like economic environment, political environment, legal system, cultural environment, religious environment, and competitive environment…etc. The study of the external environment has a very important role in designing and modifying the marketing plan of a company. The analyses of various external factors of the cosmetic industry in Australia are described below.

1. Economic environment:

The analysis of the economic environment is very important. It contributes much to the success of a marketing plan of an organization. Economic analysis includes the analysis of the position of the economy concerning development, growth rate, Gross Domestic Product, Gross National Product, inflation rate, and investment opportunities. The interest rate in Australia is showing an increasing tendency which is an unfavorable factor for business organizations. (Johnston, 2008)

Whatever be the nature of the business, fluctuations in the interest rate will have an impact on the operations of the organization. The Australian economy is one of the economies of the world which survived the present financial crisis in a somewhat better way. The recession did not cause much impact on the Australian economy. The economy is open for business and investment. This means that the foreign companies can also invest in the country; hence Napoleon Perdis has to make necessary modifications in its strategies. If a country has a liberalized policy about foreign investment, it can attract many foreign investors. At this juncture, if domestic companies like Perdis do not make changes in their strategy, it may cause them to lose their present business.

2. Political environment:

The political system is another important factor to be considered. This includes Government Acts and Regulations, consistency of the political system and the government, the attitude of the government towards the business, export and import policies of the Government…etc. In Australia, the political system is very stable and the government supports business organizations to make innovations and new investments. (Australian economy in leading position, 2009).

3. Legal system:

The legal system existing in a country has a significant influence on the businesses like cosmetics. In Australia there exists a good legal system that supports the cosmetics business. The legal system in Australia is based on British Law. The high court of Australia is the topmost legal authority in the country. (Doing business in Australia, 2008).

4. Cultural environment:

The cultural and social environment of the place of business operation is to be analyzed deeply for formulating an efficient marketing plan. This includes language, education system, literacy rate, different food habits, different social systems prevailing in that particular place. A friendly culture exists in Australia. Australia is one of the countries in the world where exists a good personal relationship like respecting others, high amount of honesty…etc. According to the various cultures, the personal view about the cosmetic industry also varies. So, the target market should be identified thoroughly.

Almost all cadres of the society avail themselves the service of cosmetic and personal care industry for their benefits and beautifying their look. In the present condition, even people having a low-income avail this option. The care that the company gives to the customers is the most valuable asset for them. The company has a list of loyal customers with them. As there are no serious religious rebellions against the cosmetic industry in the country, people are ready to accept it widely. In Australia, the cosmetic industry is warmly welcomed by the people.

Napoleon Perdis has a current operational issue caused due to the expansion and increased number of customers in the market. Due to this problem, the company couldn’t predict the customer demands and it lead to high inventory heights. The company focussed highly on product quality and failed to track the inventory efficiently. Due to this issue, they also suffered from administrative problems. This played to be a serious issue for the company. “Napoleon Perdis, Australia’s leading makeup artist, and international cosmetics company will start implementing Infor ERP System21 and Demand Planning for demand and distribution planning.” (Infor helps Napoleon Perdis cosmetics grow, 2009). Through the implementation of this system, the company could overcome the operational issues due to the intensive growth. This system will help the company to make wise purchasing decisions and will maintain the administrative issues also through its integrated process management system. This new system will in turn help the company to plan the business processes accurately.

The other three major players of the cosmetic industry in Australia are EMU Spirit (oil products and natural skincare), Hillside Herbal Products, and Janssen Cosmeceuticals.

1) EMU spirit:

It is one of the biggest oil products companies in the world which makes oil only from natural ingredients. EMU spirit was established in Australia in the year 1993. “In 2002 we were the first to successfully list EMU Oil on the Australian Register of Therapeutic Goods (ARTG) as an active ingredient for the treatment of a range of inflammatory conditions.” (Why Emu spirit, 2008, para.3).

A lot of products of this company are available in the market, like products for skincare, hair, pain relief, etc in which preservatives are not used. These products aim at making human skin more beautiful. They are also used for various skin allergies. One of the main benefits of these products is that they are even suitable for sensitive skin.

“Our philosophy is to provide information and real choices to encourage people to take an active role in the decisions they make about their health and well being.” (About our natural therapies products, 2008, para.1)

Products

There are wide varieties of products manufactured by this company which includes “pure EMU oil, lotions and moisturizer soap, soap, bath oil, shampoo, conditioner, massage oil, pet shampoo, EMU eggs, etc.” (Emu oil skincare and health products, 2009, para.2).

The various products produced by EMU spirit are ‘Day Creme Refresh and Renew 400g Bulk Size, Advanced Hand and Body Crème 250 ml, bath pack, gift pack, moisturizing soap 115 g, night cream, EMU oils, Oil of EMU Omega 3,6,9 Capsules – 120 Capsules, once a year beauty pack, pamper pack, skin food pack, advanced hand, and body lotion’ etc. All these products are very effective and pure.

The competitive advantage of EMU spirit

Most of the oils produced overseas are extracted from genetically inferior ex-zoo stock and outdated technologies are used to preserve them, which is harmful to human health. Such oil refine ring process can lead to the formation of toxic substances and are not suited for the present era. “Emu Spirit’s cosmetics on the other hand contain the following: Day crème – 22% Emu oil; Night crème – 26% Emu oil; Advanced Body Crème – 15% Emu oil.” (Why Emu spirit, 2008, Quality, 1).

2) Hillside Herbal Products:

‘Hillside Herbal Products’ is a small company situated in southern Tasmania, Australia. Premium quality products made of natural ingredients are produced by this company. These products are highly customer-specific. For about 40 years, this company has been serving clients. The clients feel healthy, comfortable, and refreshed by the usage of all-natural, herbal products. The product contents are very simple and natural. Every simple man can understand what the contents are and there is no need for a chemical engineer to understand these ingredients. The products are fresh too. The products produced by the company are so eco-friendly that they do not leave behind any organic waste.

Hillside Herbal Products has a mission of helping its clients to have a healthy, vital, and invigorated feeling through their natural products.

The company has a wide range of cosmetic products such as oils, lotions, ointments, cleansers, soaps, etc. The featured products of Hillside Herbal Products are organic skincare, massage oils, skin care oils, organic hair care, infused oils, herbal ointments, essential oil blends, natural soaps, solid perfumes, etc.

Organic skincare products mainly include the products, such as wild herbal skin cleansers, wild herbal body lotion, and wild herbal moisturizers. The organic massage oils include organic aphrodisiac massage oils, organic baby massage oils, organic relax massage oil, organic sports massage oil, etc. The hair care products include wild gentle hair shampoo, wild henna hair shampoo, wild herbal hair shampoo, wild herbs, and lavender shampoo, tea tree shampoo(SLS free), wild herbs and honey conditioner, wild herbs, and lavender conditioner, wild tea tree conditioner(SLS Free), etc. The herbal ointments include, organic baby balm, organic calendula ointment, organic comfrey ointment, organic easy breathe ointment, organic foot balm, organic tea tree ointment, etc. The infused oils consist of organic calendula infused oil (heating oil), organic chamomile infused oil (heating oil), organic lavender-infused oil, organic St. John’s wort infused oil, etc. The oil blends include Aphrodisiac essential oil blend, Christmas essential oil blend, easy breathe essential oil blend, meditation essential oil blend, native Australian essential oil blend, prosperity essential oil blend, relaxing essential oil blend, etc. The solid perfumes include ‘Tasmanian Lavender Solid Perfume, Creme de Parfum – Etoile d’Or, Creme de Parfum – Reve du Printemps’ etc. The natural soaps include ‘Wild Orange Blossom Liquid Soap, Natural Almond & Oats Soap, Natural Eucalyptus Soap, Natural Lavender Soap, Natural Rosepetal Soap, Natural Tea Tree Soap, Natural Unscented Soap, Tea Tree Shower Gel SLS Free’ etc.

The two major suppliers for Hillside Herbal Products are Shaanxi Sciphar Biotechnology Co. Ltd and Dorwest Herbals.

Marketing Strategy

‘Money back guarantee’ is the major marketing strategy adopted by Hillside Herbal Products. They make their products with a lot of care. But if any customer is dissatisfied with the product of Hillside Herbal, the company either replaces it or refunds the money back to the customers. Either of the ways, the customer has to choose.

3) Janssen Cosmeceuticals:

Janssen Cosmeceutical is introduced by Janssen Cosmeceuticals Australia Private Limited which manufactures many facial and body treatment products. (Welcome, n.d.) It has many branches in different parts of the world. It produces mainly cosmetics, beauty, and skincare products. “With the help and knowledge of renowned cosmetic formulator, Dr. Roland Sacher, Janssen Cosmeceuticals has created the ultimate goods for all your skincare needs.“ (Janssen cosmeceutical care, 2009, Science, para.1). All products of this company are safe and effective. The daily use of these products gives the skin a healthier and glowing appearance. These products have huge demand in the market because they are very effective in repairing damaged skin and preserving healthy skin. These products are natural and contain several vitamins needed for healthy skin.

The various products produced by Janssen Cosmeceutical are ultime secrets, sensitive secrets, mixed secrets, pure secrets, white secrets, supreme secrets, sun secrets, opus est, skin restore system, photogenic, face manager kits, skin excel, etc.

As Janssen Cosmeceuticals is newly introduced in Australia, it has a wide variety of business opportunities. There is a great chance for increasing business locations and extending them to other countries too. This will, in turn, help in increasing the profits of the company. There is also a huge chance for delighting the customers and getting customer satisfaction, which is the most essential aspect needed for a company’s growth.

The cosmetic industry in Australia has always been encouraged by the people and the market. Comparatively, Napoleon Perdis Cosmetic Company has a high market share and is a market leader for many years. Even though the competitors of the company like Hillside Herbal Products, Janssen Cosmeceuticals, and Emu Spirit also have a quite developed market share and market presence, it is low compared to Napoleon Perdis. The marketing strategy of the cosmetic industry is on the whole the same. Differentiated products constitute their uniqueness more than their marketing strategy. Differentiated product lines also help for their uniqueness in the market. The current situation in Napoleon Perdis is analyzed and solutions are provided too. Hence, the market analysis of the cosmetic industry reveals the importance of differentiated products and services as an important aspect of marketing strategy which leads to success in the market.

Reference List

1. About our natural therapies products. (2008). EMU Spirit.
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3. Australian economy in leading position. (2009). Living in Australia.
4. Cosmetics: The cosmetics industry today. (n.d.). Indiacom. Com. Web.
5. Doing business in Australia. (2008). Grant Thornton.
6. Emu oil skin care and health products. (2009). Emu Store: Emu Oil Skin Care & Health Products Delivered Worldwide.
7. Infor helps Napoleon Perdis cosmetics grow. (2009). Logistics.
8. Janssen cosmeceuticle care: Science. (2009). SkinCareRx. Web.
9. Johnston, T. (2008). Interest rates in Australia are raised to a 12- year high. The New York Times. Web.
10. Napoleon. (2008). Makeup as self- expression. Napoleon Perdis. Web.
11. Runway range: get your your Ltd Ed. (n.d.). Makeup kit.
12. The divine marchesa: A dramatic new makeup collection. (2008). Napoleon Perdis.
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14. Why Emu spirit. (2008). EMU Spirit.
15. Why Emu spirit: Quality. (2008). EMU Spirit.