1 CHAPTER 1 SCOPE OF THE STUDY 1.1 INTRODUCTION ...

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for daily, year-round use to shield against environmental elements. Current trends, suchas the dominance of suntan/sunscreen products are being experienced. A tan is stillconsidered attractive and desirable in the US, thus the desire to be healthy and cancerfreeconflicts with the desire to appear attractive. One segment that has benefited fromthis dichotomy is that of sunless tanners, which have soared in popularity asformulations and application methods have improved (Business Wire, 2006).Beyond 2008, however, continued growth is more uncertain in the US sun care market.Awareness of the dangers of the sun is said to continue to rise. The category willcontinue to face questions over the efficacy and safety of its products, and proposedchanges in labeling regulations from the FDA remain unresolved (Business Wire, 2008)Trends and insights into the United Sates Ethnic Cosmetics and toiletries Retailchannel:Supermarkets or hypermarkets are said to be the leading retail outlets for US cosmeticsand toiletries. This trend has been attributed to the growing power of Wal-MartSupercenters, which have been expanding across the US. Parapharmacies ordrugstores are reported as the second leading retail channel for cosmetics andtoiletries. These stores gained value share of cosmetics and toiletries in 2008, asretailers such as CVS and Walgreens upgraded their beauty departments and addedmore exclusive and private label brands (Euromonitor International, 2009).Mass merchandisers were said to have continued to lose value share in 2008, as Wal-Mart Stores converted many of its Wal-Mart discount stores into Wal-Mart Supercenters(Euromonitor International, 2009). Cosmetics design (2005) states that 90 percent ofsales of black hair care in the US are through channels other than supermarkets anddrugstores.The lack of Ethnic cosmetic and toiletry ranges in retail outlets is said to representgrowth potential for stores targeting this market niche correctly. The Free Library Two28
(2000) asserts that Ethnic women no longer live in cities, but rather now live in thesuburbs and are thus looking for Ethnic specific cosmetics and toiletries, and are unableto find them. This indicates that there is definite demand for Ethnic cosmetics andtoiletries in the urban areas, however retailers currently are not penetrating the marketand thus missing out on substantial business.According to Joyner (2007) blacks and Hispanics account for more than 20 percent ofthe US population. Furthermore, analysis of major drug and mass chains show thatbetween 43 percent and 74 percent of their stores deserve some kind of Ethniccosmetic representation. This is often because major chains have designated a portionof their stores as their Ethnic set, which are often in lower-income, high Ethnicconcentration areas, and have taken the steps to merchandise those stores accordingly.By doing so, Retailers are said to be neglecting their affluent Ethnic consumers. Thereare plenty of neighbourhoods which have clusters of affluent Asian, Hispanic and blackconsumers who are not able to find the products that they need in the normal storewhich they go to in their neighbourhood.One example of a retail business which does realise the potential in the Ethniccosmetics and toiletries market is the Real Cosmetics brand. This brand is seekingcapital for franchise stores featuring the expanded line, potentially using a similar retailconcept as The Body Shop. Although Thambirajah of real cosmetics plans to introducethe Thevi line to retail stores in 2009, she is relying on a grassroots marketing campaignto build a following first. Her goal is to partner with retailers who understand the Ethnicmarket (Mason, 2008:11).A trend in the way in which retailers run their businesses in the US is also developing.Joyner (2007) asserts:"The days of running a business simply by reviewing shares and trends are over.So are the days of analysing a category by filing out template-based categoryreviews. Those tactics have served their purpose, but not anymore."29
Page 1 and 2: CHAPTER 1SCOPE OF THE STUDY1.1 INTR
Page 3 and 4: 1.3 RESEARCH OBJECTIVESThe primary
Page 5 and 6: ) Qualitative Research“Qualitativ
Page 7 and 8: The respondents to be chosen need t
Page 9 and 10: • Living Standards Measure: It di
Page 11 and 12: 2.2 INDUSTRY ANALYSIS2.2.1 Ethnic c
Page 13 and 14: grow in the forecast period. Men’
Page 15 and 16: cleans conditions and detangles whi
Page 17 and 18: In the general market, products are
Page 19 and 20: “all natural” claims by special
Page 21 and 22: As a segment, this market sector ha
Page 23 and 24: launching new Ethnic facial product
Page 25 and 26: h) Skin Care products current and f
Page 27: organic market, but are also breaki
Page 31 and 32: experience time and time again. Pre
Page 33 and 34: the government. The emerging black
Page 35 and 36: Deodorant body sprays are particula
Page 37 and 38: Euromonitor International One (2007
Page 39 and 40: way, making it difficult to compete
Page 41 and 42: and 2.14). As South African men bec
Page 43 and 44: sales through those outlets is expe
Page 45 and 46: Producers of mainstream skin care b
Page 47 and 48: k) Sun Care Products current and fu
Page 49 and 50: Trends and insights into South Afri
Page 51 and 52: 2007:38). This expansion of distrib
Page 53 and 54: CHAPTER 3STRATEGY FOR BUSINESS GROW
Page 55 and 56: d) Improved SynergyImproved linkage
Page 57 and 58: The market penetration strategy is
Page 59 and 60: ) Gaining competitors' customers (P
Page 61 and 62: power saw and a lady in a clown sui
Page 63 and 64: Hoskisson and Hitt (2009:183) expla
Page 65 and 66: Vertical integration is also claime
Page 67 and 68: ) InternationalisationAnsoff (1965)
Page 69 and 70: are described as non-equity based a
Page 71 and 72: Another common reason for operating
Page 73 and 74: In recent years however, companies
Page 75 and 76: isk than simply attempting to incre
Page 77 and 78: Further advantages of diversificati
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efficiency. Quantity discounts thro
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CHAPTER 4FRANCHISING AS A GROWTH ST
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Franchising is a commercial relatio
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usually grants further licenses wit
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Miranda (2009) further explains tha
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The franchisee is said to carry a h
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e) Competitiveness achieved through
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franchise, and pay royalties on tim
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of the franchise is what breeds pos
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4.6 CONCLUSIONIn this chapter franc
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onset, which factors may cause cert
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5.3.1 ValidityIn its purest sense,
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Speciality Top End, Ethnic Cosmetic
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5.4.2 Ethical AspectsWritten inform
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Section three, deals with benchmark
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Currently Mr Munroe is still occupy
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) Are current retailers situated in
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e) Because of this move, is their s
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concludes however that that there a
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(2009) states that SA retailers are
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Carter and Carter (2009) proclaim t
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6.3.5 Product RangingSection Five o
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According to The Free Library (2009
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The literature review reveals that
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BabyCarter and Carter (2009) explai
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(2009) also feels that such a niche
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Munroe (2009) also suggests mini LC
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) Do you see an interest from the f
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e) What services are the above reta
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h) Could current top end retailers
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Page 141 and 142:
A goal of Market Penetration Strate
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store to aid in the purchaser’s d
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Carter and Carter (2009) assert tha
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Page 149 and 150:
The literature review reveals that
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The Ethnic cosmetic and toiletry ma
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• Differentiation from competitor
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In terms of focus shown to the Ethn
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and brand reassurance, their desire
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c) Store design and layoutThe layou
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f) Promotional ActivitiesThe majori
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From the conclusions drawn, it was
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Available from:http://perfumesmelli
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Cosmetics Design. 2005. Black hairc
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Fortune Manning Lawyers. 2008. Freq
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LaPolt, E. K. 1997. Ethical dilemma
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Pearce, L . 2009. How to Take Your
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Stilwell, J. 2007. Strategies for B
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APPENDIX AQUESTIONNAIRE1. INDUSTRY
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4. GAINING MARKET SHARE AS A NEW EN
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c) How would you suggest a retail s
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f) Are current SA retailers who sto
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10. FUTURE OF THE ETHNIC COSMETICS
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10.Vetiver, woody notes (men and wo
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Table 2.9: forecast sales (in Milli
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Table 2.17: Forecast sales (in Mill
Page 193 and 194:
Table 2.22: Forecast sales of Depil
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