Marketing Analytical Report for Sunscreen

This report is going to analyze the evaluate condition of Sunscreen cream

industry market environment and how all these environments affect sunscreen
products and its competitor under the microenvironments
Introduction
Sunlight is an important element of our life, is very good for the health, but it is
also the largest skin natural enemies. The ultraviolet (UV) rays in sunlight can
cause skin to become dry and dull, accelerate the formation of spots even skin
cancer.
In order to succeed against the harmful UV rays, the first step is to enhance the
resistance of our skin.

PESTEL Analysis
There are many factors in the macro-environment that will affect the transactional
decisions of the average consumer.

 Political factors:
- These refer to government policy suchlike Trade Descriptions Ordinance
& Consumer Goods Safety Ordinance.
- While considering the political situation of Hong Kong, Organic &
Branded products will be given priority to considered.
Economic factors:
- Continuously rising in Consumer Price Indices (CPIs) may affect the
expenditure weights and usage rate in consumable goods.
- The declination index of Consumer Sentiment (ICS) also express the
changing of consumption pattern in the nearly future.

Social factors:
- In recent years, many different organizations providing free cancer
information to the public suchlike Hong Kong Cancer Fund, and the
growing in awareness of skin cancer motivated the consumption in
sunscreen products.

 Technological factors:
- Launched a multifunctional in sunscreen products also can meet the
different needs of consumers.
- Higher SPF, offers broad-spectrum UVA & UVB protection,
waterproof become conditions of competition.
- the market player should focus to the technological change, suchlike
product formula, stability, durability and packaging to excite consumer
desire to buy.
For example: UV-proof standards, moisturizing standards, ingredients
Thats will have increased consumer preferences for the products.
Environmental factors
- Since the ozone depletion, strong UV radiation will be increased of
skin cancer and damaged to the human health.
- Uncertain weather pattern caused by global warming, higher
temperatures, UV-rays enhanced to bring about skin disease occur.
- The number of new cases continue to grow year, people to be
conscious of sun protection sense.
Sunscreen products is becoming necessary, probably and important in
the world & people should wear sunscreen every day.
Legal factors:
- The competition law in Hong Kong is the Competition Ordinance (Cap
619) (Ordinance), the Competition Ordinance is designed to lay out
competition and prohibit anti-competitive practices.
- Under threat of this law, it may direct effect price fixing or share
markets in sunscreen industry.

Competitive Description
According to website Ur Cosme online survey, at the previous six months,
top three of the most popular sunscreen brands are Kanebo, Sofina & Kiehls.
Consumer may consider the following points by which comparison of Kanebo,
Sofina & Kiehls. These points are included in the following table:

Products Packing
Price structure
Place (Location)

Kanebo
Allie Extra UV Gel
(Mineral Moist Neo)
SPF50 PA++++
90g
HKD $ 260.00
Drug store

Positioning

Social class

Products Line

Sofina
Sofina Beaute UV
Cut Emulsion
SPF50 PA++++
32ml
HKD $ 198.00
Department store
Retail sales
Social class

Kiehls
Super Fluid UV
Defense SPF 50
SPF50 PA+++
30ml
HKD $ 325.00
Retail sales only
Social class

Kiehls

Strengths:
- Kiehls guarantees the quality of its products, they provide return
policy for ineffective products within 28 days which can increase
consumer confidence.
- Normally their products are unisex which can reduce the
production cost.
- They have a bright image on their uniform Doctor Robe are
reminiscent of medical scientist; Consumer will have a relieved
and professional feeling.
- A symbolic bone which can be found in every Kiehls stores it
serve as a reminder of Kiehl's tradition in medicine and keep fresh
in consumers memory.
- It takes around 30-40% of its customers are males which is
relatively high compared to its competitors.
- Kiehls recommend consumer try before you buy, they will give
out 3 complimentary sample with every consumer, this action will
direct raise the probability of
purchase.
- Kiehls Gives Monetary assistance provide a positive social
conscience.

Weakness:
- Kiehls advocate using natural ingredients will bring out a higher
cost of investments in research and development.
- A brand from USA, the product formula may not suitable for
Asian.
- Higher cost in great number of free-gifts sending to pre-purchase
or post-purchase consumer.
- High price inflation
- High price to targeting market

Sofina

Kanebo

Strengths
- Personalized advises build long-term relation of confidence
- Web page clearly explained the using method of their product
which provide a better understanding to consumer about daily
skincare routine procedure.
- Mass advertising among TV programed.
- Many purchase locations (Sogo, Aeon, Log-on. etc.)
- Cooperation with Facebook helps to growth their business.
Weakness:
- Unrecognizable packaging design
- Limited market size of the targeting segment
- High advertising cost because they takes non-stop promotional
activities.
- High competitive market among Hong Kong in Japanese
skincare brand choice.
- Brand focus on cosmetic promotion and there are few up-to-date
activities on sunscreen product.
- Products launched only for female it will decrease the sales
volume.
Strengths:
- Eco-friendly packaging reduces environmental pollution
- Can be washed off by facial cleanser and body soap which is
more convenient to consumer.
- Working with beauty blogger (e.g. Beauty-talk) like sponsored
posts, reviews, giveaway which is effective to increase the
appearance.
- A member of Kao Corporation which could provide more
resources for development.
Weakness:
- Low Advertising impact retention of consumer mind.
- Fewer purchase locations, consumer is not easy to buy their
products.
- Low product momentum to attracts new purchaser.
- Sole product formula difficult to fulfill consumer needs.
- High investments in research and development as Kanebo has
been a science-based company.
- Low media spends may cause the brand weak.

Conclusion
At the end of the day, the gloomy economic outlook has significantly affected
the consumer sentiment due to the consumer income cannot catch up with the
inflation rate.
The Census and Statistics Department published the total value of total retail

sales in the first quarter drop 11.4%, at the same time the value of total retail
sales in April 2016, estimated down 7.5% from the same month of last year.
In order to confront with the economic environment, we recommend the market
player could introduce more advanced technology to fulfill the consumer wants
which is limitless.
Besides, even skincare products listed the ingredient labels, but consumers may
not understand the contents of related components.
We suggest the market player takes a clear definition of such products, if the
products claim to have medical effects, it should inclusions to Drug regulatory,
which may increase the consumer sentiment.

Reference:
http://web.sofina.com/hk/beaute/index.html
(Sofina official web site)
http://www.beautytalk.com.hk/kanebo-allie-water-based-gel/
(ALLIE , 18/6/2011)
https://www.facebook.com/sofina.hk
(Sofina Facebook home page)
http://www.kanebo.com/
(Kanebo official web site)
http://www.kiehls.com.hk/
(Kiehls official web site)
http://www.weather.gov.hk/contentc.htm
(The Hong Kong Observatory official web site)
http://www.censtatd.gov.hk/hkstat/sub/so60.jsp
(Census and Statistics Department (C&SD), Latest Statistics)
http://www.customs.gov.hk/en/consumer_protection/goods_safety/index.html
(Custom and Excise Department, Consumer Goods Safety Ordinance)
https://www.compcomm.hk/en/legislation_guidance/legislation/legislation/com
p_ordinance_cap619.html
(The Competition Commission, The Competition Ordinance)
http://www.cancer-fund.org/en/skin-cancer-treatment.html
(Hong Kong Cancer Fund, Skin cancer)
http://www.tradingeconomics.com/hong-kong/consumer-confidence
(The Nielsen Global Survey of Consumer Confidence)