Murad is a renowned producer and seller of a variety of skin care products with a distribution network covering various markets around the world. The production portfolio of the company includes treatments, moisturizers, eye-care, masks, supplements, and toners. The products offered by Murad are clinically proven. Moreover, the company offers spa and related healthcare services. The company operates in the beauty industry. The beauty industry is expected to experience significant growth by 2022. Retail stores including exclusive brand outlets, supermarkets and specialty stores among several others provide major distribution channels for the products in the industry. Moreover, online channels are gaining significant popularity among consumers. This paper will focus on the features of the market domain in Murad skin care products as well as the factors contributing to its development.
The market domain is characterized by growth and the use of natural ingredients in the beauty products. The trend has been influence by the consumers’ demand for natural products. The use of herbal cosmetics is considered an effective way of minimizing the chances of any possible side effects of the products. The manufacturing firms in the market domain are focusing on developing new products as well as innovating on the use of a variety of ingredients in the skin care products. The manufacturers are therefore adopting different strategies aimed at sustaining and maintaining a favorable market position. Product launch, expansion, acquisition and agreement are some of the most prominent strategies employed by the market players. Segmentation is practiced widely in the market domain in Murad skin care products. Retail and online sales are conducted by players in the industry.
Delegate your assignment to our experts and they will do the rest.
The skin care products are considered the most technically advance and they come in diverse categories. The skins care products manufactured undergo many dermatological tests before they are released to the market for final use. The rising demand for herbal skin care products has prompted the players in the market domain to launch new herbal products to meet the needs of the consumers. Today’s consumers are well connected and informed and they strive to use products that are less harmful to the skin. Therefore, the consumers are concerned about the chemical composition of the skin care products (Glenn, 2008). The considerable shift in consumer preference towards chemical free products has seen manufacturers focusing more on providing more organic skin care products in order to keep pace with the emerging market trend.
Therefore, the players in the market domain currently market products devoid of chemicals as herbal products in order to meet the consumer preferences better. As such, there is a significantly lower consumption of products containing Phthalates, parabens and aluminum salts. Therefore, there is a growing need in the market to offer sustainable products that meet the demands of the consumers. Moreover, the market is driven by innovation and quality. As such, new product development and provision of a variety of products is considered a competitive strategy in the market.
It is important to point out that the market segment for skin care products is growing significantly. In particular, anti-ageing products have become the most popular segment due to the increasing consumer demand for products that improve their appearance and make them look youthful. Effective sales channel are important components of success in the market domain in Murad.
There are several notable companies that have dissolved in the market. One such company is the American Laser Skin Care which went under due to increased competition and the rising costs of raw materials. The competition posed by emerging firms made the company to operate in losses until it shut down its operations without warning. The cost of raw materials especially in the wave of herbal products made it difficult for the company to sustain the business.
There are several factors that influence the development of the market. Technology, culture, government regulations, globalization, economic factors and competition have significant influence on the market. The factors can either be inhibiting or enabling in the market depending on how they impact the market as well as the players in the market.
Technology plays a significant role in the development of the market domain. As such, innovation and quality improvement are the main features that define the growth of the market. Technology has influenced the development of effective sales channels that serve to enhance customer satisfaction. The companies are able to market their products mainly through e-commerce websites. Currently, online sales channels have exhibited high growth due to the upsurge of several e-commerce websites. As such, digital revolution has played a pivotal role in driving skin care products demand in the market (Shen & Bissel, 2013). The online sales and marketing channels have enabled several manufacturers to reach out to mass markets as well as foster healthy relationships with the customers. Social media has been utilized by many companies because they facilitate access to a wider market for their skin care products. Moreover, the social media channels assist significantly in generating awareness related to the products as well as attracting potential customers. Therefore, social media has the potential to heighten the demand for the skin care products over the forecast period. Technological advancements have also facilitated innovation in the packaging and design of the skin care products. The packaging manufacturers are able to offer creative technology and a variety of innovative options to serve the market effectively.
Culture is another important factor that influences the market domain in Murad Skin Care Products. The diversity of cultures within the market indicate that manufacturers have to be more creative in the creation of the skin care products so as to appeal to a wide range of consumers in the market (Hunt et al., 2011). Therefore, culture impacts the production of skin care products significantly because each culture has a different need from the other. The companies dealing in skin care products should therefore carry out objective research in order to explore the various cultural acceptances as well as the needs of a wide range of consumers. Moreover, the lifestyles of consumers are constantly evolving in the market. As such, the companies have to develop products that are long lasting and easy to use. The changing demands of life make the consumers to have a limited time to accomplish various tasks in their daily lives. The products should also have accompanying health benefits that will draw the attention of the consumers. Most importantly, the consumers demand products that blend with their demanding lifestyle. Majority of the target market of the skin care products are women ranging from teenagers to senior citizens. This is because women are more concerned with their physical appearance than men. Therefore, the companies in the market should craft messages that appeal to women in order to win their loyalty. The social trends within the market should be identified by the marketers of the companies in the market so that the appropriate promotional and informational campaigns can be developed. Moreover, the companies need to appeal to target groups that tend to be trendsetters in the market.
Government regulations also affect the developments in the market significantly. The Food and Drugs Act and the Cosmetic Regulations outline the safety requirements that cosmetics sold in the market should meet. Therefore, the companies strive to meet the minimum requirements as stipulated by laws and regulations. For instance, the departmental officials in Canada conduct inspections to ensure that the skin products sold in the market do not contain ingredients in quantities above the acceptable concentration. By doing so, the government tries to safeguard the people from the undesirable possible side effects of the chemicals used. Additionally, Health Canada scientists conduct regular monitoring of the international scientific studies and research regarding the risks posed by the chemicals used in the cosmetics. The governments also carry out awareness campaigns aimed at creating awareness among the public regarding the risks posed by particular chemicals used in cosmetics. The company marketers, therefore, need to be constantly knowledgeable about the new developments in the market regarding the government actions that impact the business.
The Food and Drug Administration (FDA) restricts the use of some chemicals normally used by companies in the manufacture of skin care products such as mercury compounds, methylene chloride and chloroform. Therefore, the skin care products manufactured should use alternative chemicals that have no negative effects on people (Glenn, 2008). As such, many companies are resorting to use of organic ingredients in the manufacture of skin care products. Moreover, the products are required to be produced under sanitary conditions under FDA. FDA gave directions regarding the labeling requirements that ensure that manufacturers list the ingredients used in the manufacture of the skin care products. Therefore, the marketers have to be aware of the legal aspects surrounding the promotion of the products that they bring to the market.
Globalization is another factor that has significantly affected the market domain. The growth of the global beauty market is attributed to the waves of globalization. Therefore, the global economy defined the growth of the skin care products in the market. Global beauty products manufacturers in the western countries crossed borders and established operations in foreign countries hence driving rapid increase in trade flows that facilitated the development of infrastructure of the global economy. The current advancements in technology have made the world a global village where businesses can access virtual markets through the internet. The growth of online skin care products retail shops have revolutionized the marketing strategies of the companies in the market. Online marketing campaigns are carried out by companies to attract global customers. The skin care products have therefore dominated the global beauty market. There are many regional factors that drive the globalization of skin care products across the globe. The rising living standards as well as increased personal income in developing countries have enabled consumers to spend large amounts of money on personal care. Additionally, increased international travel and increased mobility has facilitated globalization in the skin care products market. Moreover, the increased media influence in the beauty industry has shifted attention of consumers to beauty products. For instance, the consumers are influenced heavily by what they watch in television and the internet. As such, the demand skincare products so as to resemble their favorite stars. Such a trend has driven the demand for skin care products in the market.
There are several economic factors that influence the developments in the market domain such as increase in consumer incomes and inflation. The increase in consumer incomes increases the demand for the beauty products hence facilitating growth in the market. However, the inflation in the economy increases the cost of raw materials used in the manufacture of the skin care products. Therefore, inflation plays an inhibiting role in the market. Increased cost of raw materials raises the price of the products hence reducing the demand. Decreased demand leads to low sales and low profit which hinders the growth of companies in the market.
Competitions from small firms that incur low overheads pose stiff competition to large firms whose products are relatively expensive. Moreover, there is also stiff competition from other large firms. As much as competition facilitates production of quality products, they may limit the growth of individual companies in the market.
Counterfeiting is a major concern in the market because it is playing an inhibiting role. The challenge of counterfeiting has affected the demand for premium skin care products hence hindering the growth of the companies. Therefore, the companies spend time and money to fight counterfeiting instead of focusing in the improvement and development of new products. As such, the companies spend more money in developing intelligent packaging aimed at fighting counterfeits. Additionally, the companies are developing unique authentication technologies that help them to counter the impact of counterfeiting. The cost of fighting counterfeits raises the price of the skin care products hence decreasing their demand among consumers. High prices decrease the sales significantly. Another restricting factor is developing effective relationships with local distributors and retailers. Some of the distributors and retailers fail to meet the requirements of the companies.
In conclusion, the market domain in Murad Skin Care Products is experiencing steady growth due to the effect of globalization and technology. The needs and preferences of the consumers in the market are constantly evolving and the companies in the market need to deliver innovative and successful packaging concepts that appeal to the consumers. Additionally, the company marketers should pay attention to the needs and wants of the consumers in order to facilitate development of new and innovative products that meet consumer expectations.
References
Glenn, E. N. (2008). Yearning for lightness: Transnational circuits in the marketing and consumption of skin lighteners. Gender & society , 22 (3), 281-302.
Hunt, K. A., Fate, J., & Dodds, B. (2011). Cultural and social influences on the perception of beauty: A case analysis of the cosmetics industry. Journal of Business Case Studies , 7 (1), 1.
Shen, B., & Bissell, K. (2013). Social media, social me: A content analysis of beauty companies’ use of facebook in marketing and branding. Journal of Promotion Management , 19 (5), 629-651.
