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

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2.3 CONCLUSIONIn this chapter, the author used the available literature relating to the Ethnic cosmeticand Toiletry Industry of the United States and South Africa, to portray the current andfuture trends and opportunities that exist in the South African Ethnic Cosmetic andToiletry Industry.The United States of America, according to Mintel (2007), is the Country in which themajority of activity within the Ethnic cosmetic and skincare market is occurring. For thisreason, the researcher uses the US market activities, as a benchmark to compareSouth Africa against. By doing so, new market and product growth opportunities areidentified for the South African market. Important current and future product/markettrends are also explained in detail for both the SA and US markets, with current andfuture forecast growth statistics provided.The following chapter will discuss various generic business growth strategies availableto organisations seeking expansion. Through the identification and research of thesestrategies, the author aim’s to find a strategy, capable of being used by an organisationto further their business reach into the South African Ethnic cosmetic and toiletryindustry.52
<strong>CHAPTER</strong> 3STRATEGY FOR BUSINESS GROWTH3.1 <strong>INTRODUCTION</strong>In this chapter the author explores the literature available on Generic Growth Strategiesfor organisations in relation to the Ansoff matrix. The author’s endeavour through thisexploration is to identify all possible growth options for an organisation currentlyoperating an Ethnic cosmetic and toiletry distribution centre, but wanting to expand theircurrent operations through forward integration into South Africa’s Ethnic Cosmetic andToiletry Consumer Retail Market.Ansoff (1957) developed a framework known as the Ansoff’s Model, to help company’sidentify possible growth opportunities which could be found by combining existing andnew products and/or services, and existing and new markets. The options are thenpresented in a matrix to reveal four distinct strategic alternatives (Ansoff, 1957).Thomas (2009) defines Growth strategies as a strategy involving significant increase inperformance objectives by an organisation (usually sales or market share) beyond pastlevels of performance. The reason for organisations pursuing one or more type ofgrowth strategies is due to the view held by many investors and executives that "biggeris better”. Growth in sales is often used as a measure of performance. Even if profitsremain stable or decline, an increase in sales satisfies many people. The assumption isoften made that if sales increase, profits will eventually follow (Thomas, 2009).Growth is also said to improve the effectiveness of the organisation. The advantageswhich larger companies have over smaller firms which operate in more limited marketsinclude the following:53
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 and 28: organic market, but are also breaki
Page 29 and 30: (2000) asserts that Ethnic women no
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: 2007:38). This expansion of distrib
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
Page 79 and 80: efficiency. Quantity discounts thro
Page 81 and 82: CHAPTER 4FRANCHISING AS A GROWTH ST
Page 83 and 84: Franchising is a commercial relatio
Page 85 and 86: usually grants further licenses wit
Page 87 and 88: Miranda (2009) further explains tha
Page 89 and 90: The franchisee is said to carry a h
Page 91 and 92: e) Competitiveness achieved through
Page 93 and 94: franchise, and pay royalties on tim
Page 95 and 96: of the franchise is what breeds pos
Page 97 and 98: 4.6 CONCLUSIONIn this chapter franc
Page 99 and 100: onset, which factors may cause cert
Page 101 and 102: 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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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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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
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Table 2.22: Forecast sales of Depil
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