Essay on Finance: Marketing and Organic Cosmetics

Submitted By Simone-Gordon
Words: 3916
Pages: 16
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Task 2
Review of the Literature and readings related to research topic
The rise in consumer awareness for natural and organic products, an increased inclination of new product testing and rising disposable incomes have largely contributed to an overwhelming increase in the organic beauty products and cosmetics. However, this does not fully justify as to 1) why the consumers buy organic cosmetics, 2) where do they buy and 3) how they come to the decision to test, buy and continue to buy these products. Perhaps an answer can be found by raising several questions: a) How much is the market for organic cosmetics? b) Where is this market? c )Is it increasing in numbers or decreasing in numbers? d) Do the rising inflation, current depressed economic situation and rapid levels of technological enhancement has an effect on the growth and development of this market for organic cosmetics? e) What lies behind the motivation to buy these products? f) How are the attitudes and behaviour changing towards organic cosmetics?
An investigation in to the size of the organic cosmetics market, does not give a clear picture though broad individual countries trends are available (see, Hennessey 2007, Armstrong 2009) and very limited published data for this industry sector.
Mathew Hennessey (2007) in the article “Organic Cosmetics Break Out” raises a very vital issue by asking, “Is the makeup counter poised to go green? May be. What's certain is the global cosmetics industry is enjoying an unprecedented boom and the organic market is the next frontier. ” Hennessey wrote this in July 2007 when the Hain Celestial Group, a leading natural and organic products company, launched the first skincare line made from ethically sourced cocoa butter. “Although Shoppers already know the company for its Earth's Best organic baby food and Soy Dream products, but its Queen Helene® Naturals skin crèmes were the first-ever cosmetics to bear the Fair Trade Certified™ logo. (Hennessey 2007)
A more realistic picture is captured by Deidre McNulty who writing in her article “Natural personal care- will the growth continue?” states, “Whilst many markets are under pressure during the global recession, the natural/organic cosmetics sector is continuing to buck the trend. Researchers Kline recorded growth of 15.8% for the US and European natural/organic markets in 2008, which are currently valued at $5bn. The picture for natural/organics is different in Europe due to the strong pharmacy/drug chain and department store tradition. The natural/organic category is expected to outgrow the total beauty market, reaching $7bn by 2013, according to Kline. The US is a less mature market than Europe with lower penetration, so is expected to grow at the faster rate of 8.2% {4.6% for Europe}.” (McNulty, 2009)
Though the market is increasing and growing, the exact buying behaviour, the nature and background or buyers, where do they buy and how do they buy needs to be studied further and this is exactly the focus of this study.

Task 3
A) Carry out your primary and secondary research and provide data description for qualitative and quantitative data.
B) Data Analysis
About 100 persons were contacted in the London Borough of Newham as a convenience sample selected on random sample basis and were interviewed with the help of an interview guide. The guide was prepared in advance on the basis of methodology decided and the guide was first tested with three persons. There were no significant changes required and the same guiding questions were asked from the other respondents. Some difficulties were experienced in locating the respondents and it took a long time to make 50 persons agree to answer the questions. The average time taken by the respondents was 40 minutes.
The following is the analysis of the data gathered by interviews. It was interesting to observe that the information from the focus groups very significantly matched with the data from the interviews.
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