Alfin: Marketing and Aesthetic Industry

 Alfin: Advertising Cosmetic Industry Essay

Case summary

Alfin Fragrance Inc. was a ALL OF US based importer and marketing expert of high end French perfumes and cosmetics. The company was going to introduce an industry breakthrough product – Glycel, which was served like an anti aging crème. The item would be demonstrated and sold at the best department and Glycel was likely to provide Alfin Fragrance a fortune as a sales of $ 35 million was expected in 1987. The industry experts speculated that Alfin Perfume needs several external loans to support its growth. But Alfin were required to make its financing decision – whether or not the company is going for external debt or perhaps it will issue equity.

Concerns Statement:

In cases like this, we are going to examine the following concerns which are relevant to the case: • How Alfin Fragrance Incorporation. would financial its growth if it released the very anticipated anti-aging cosmetic wonder – Glycel. Should Alfin go for personal debt or it will issue fresh equity capital to fund the growth? • How Alfin Fragrance Inc. would control its difficult working capital? • Trademark and licensing infringements were very common in the industry. Was there virtually any possibility that Alfin might face any kind of legal suit? • The marketing campaign of Alfin Aroma was extremely traditional and their focus was only niche market. Was a classic marketing effort enough intended for Alfin to sustain on the market?

Macroeconomic and Market overview in UNITED STATES in 1985:

Overall economic system and the marketplace was not and so stable in 1985 although economy and market speculators view that the depression from the economy as well as the market could turned to a growing one in 1986 because of the changing pattern among the American customers. Many sectors observed economic downturn because clients were reluctant to buy non-durable. Though this happened in 1985, some industry experts estimated the fact that cosmetic industry would convert in 1986 due to possibilities of presenting industry breakthrough products like Glycel while others cosmetic companies. Another observation toward good future developments of plastic industry is a Baby boomers (who were created during the Post-World War II) were maturing then and so they showed all their interest in skincare and antiaging products. The subsequent graph reveals the share price adjustments during Summer 1984 – December 85. During that period we can talk about some unconventional trend in December 85 where both the cosmetic industry and aggregate stock index roar as a result of positive requirement among the shareholders and internet marketers toward the cosmetic industry. Some good information like introducing fresh anti aging gel and protection from the sun crème had been available after that. [pic]

Aesthetic Industry overview of USA in 1985:

The cosmetic industry of UNITED STATES has the next characteristics: • Market Size: The plastic and toiletries industries were huge and consisted of in least one hundred and fifty companies. • Market Progress Rate: Sales of all toiletries and beauty companies had been growing in a average price of 2% to 3% per year. • Average profitability of the sector was $13. 3 , 000, 000. • Brand loyalty and product expansion ignited the competition of the industry. • Companies relied greatly on advertising for providing their item. • There is a tendency among the list of companies inside the cosmetic and toiletries industry to copy other's product. Therefore trademark intrusion suits were common in the market. • A lot of the companies in the industry were marketed their product in department stores, lower price shops or perhaps in drug stores.

Examination of Porter's Five Elements Model:

Right here, we are going to evaluate the cosmetic and toiletries industry by simply analyzing the elements of Porter's five factors model listed below: Rivalry among the competing organizations:

The rivalry between the companies of plastic and toiletries industry is very high as a result of following factors: • Large number of competitors since more that 150 businesses were...

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