Current Marketing Situation
Glossier is a beauty company founded in October 2014, by Emily Weiss, a dedicated beauty enthusiast and blogger. When the Glossier beauty line was first introduced, it started with 4 products but has expanded to 59 products over the years. Glossier is also known to be one of the first makeup brands to be “born out of social media,” with its minimalist, aesthetic packaging, and the support from many social media stars, and investors (FastCompany). In the most recent year, Glossier hit the $100 million revenue mark with a total of $82 million in fundings as well (Mandell). As a next step to grow their business, Glossier had also expanded their services internationally, although avoiding countries that require animal testing to stay true to their brand excellence.
Trends in beauty have varied from year to year but skincare and minimalism were not a part of any of these trends until recently. As the demand for skincare grows and minimalism continues to be one of the top trends, the demand for Glossier continues to grow as well since it focuses on both. Moreover, as social media had now become a big part of people day-to-day lives, Glossier focuses on the online business platform “where the customer is,” with 1.5 million views on the website each month (Weiss).
Market Description
The skincare market consists of many different types of products from the basic cleansers, moisturizers, and face cream to jelly cleansers, exfoliators, face scrubs, face mask, serums and detoxifiers. Although lip balm does not fall into the “skin care” category, Glossier’s Balm Dotcom lip balm is a multipurpose lip balm that would fall into the skin care category. Lip balm is timeless self-care product that is both a need and a want for customers. The main thing customers look for in a lip balm is hydration. Other things a customer may look for in a lip balm are packaging, smell, color, price and brand. Some customers may also look for “all natural” ingredients or avoid specific ingredients or animal cruelty-free products especially since as the demand for natural products today rise.
Glossier’s Balm Dotcom market consists of customers who prefer quality over price. For the price of $18, its lip balm not only offers multipurpose qualities, but it also possess qualities that customers may look for such as smell, color, brand, natural ingredients and is cruelty-free. Glossier has established strong relationships with its customers with the help of social media which offers direct communication to consumers.
Product Review
Glossier’s Balm Dotcom is a lip balm that possess all of the following qualities
- Soothing
- Moisturizing
- Conditioning
- Long-lasting
- Hypoallergenic
- Paraben free
- Cruelty free
- Organic
- Includes antioxidants
- Nourish, repair dry, chafed skin
- Tint, sheen, shimmer or colorless
- 6 different flavors (Cherry, Mint, Coconut, Rose, Birthday Cake or original)
SWOT
Glossier’s Balm Dotcom had several strengths all of which can be utilized to increase sales and customer satisfactions. However, there are also some weaknesses, the major ones being price and availability in stores.
Strengths Weaknesses
- Established brand
- Multipurpose qualities
- Natural ingredients
- Cruelty & Paraben free product
- Attractive, minimalist packaging
- Established social media presence
- International presence
Weaknesses
- More expensive than regular lip balm
- Not as convenient as lip balm stick
- Not available in stores
- Pop up stores only in 3 states
- Lightly colored
Opportunities
- Higher demand for natural ingredients
- Increase in quality over price customers
- Increase in online businesses
Threats
- Competitors with more affordable prices
- More convenient stick lip balms
Strengths
Glossier Balm Dotcom can rely on its strengths:
- Established brand: Glossier is an high-end established brands among not only ordinary people but also model, celebrities and beauty blogger.
- Multipurpose qualities: Unlike most lip balms, Glossier’s Balm Dotcom offers more than one uses for its lip balm, from cuticles to rough patches.
- Natural ingredients: As natural, and organic products are in high demand today, Glossier’s Balm Dotcom is one that has natural, organic ingredients.
- Attractive, minimalist packaging: Glossier’s minimalist packaging not only attracts the eye but is also perfect for an aesthetic Instagram picture.
- Established social media and international presence: With the promotion help from Instagram stars and direct communication with its customers, Glossier has established a prominent social media platform.
Weakness
- Cost: Glossier is an high-end established brands which makes it much more expensive than ordinary drug store lip balm and some people might question if it is worth its price.
- Less Convenient: Glossier’s Balm Dotcom is a cream in a tube, instead of ordinary stick lip balm which makes it less convenient.
- Not available in stores: Glossier is mostly an online business with very few pop-up stores. For people that don’t shop online, this is a problem.
Opportunities
- Higher demand for natural ingredients: As more people look for organic, natural products, Glossier becomes a great option due to its qualifying ingredients.
- Increase in quality over price customers: Glossier’s Balm Dotcom is a product with many qualities that is worth its price so for customers who focus on quality rather than price, Glossier is a great option.
- Increase in online businesses: As online businesses become more popular, there have been store businesses that went out of businesses as a result. However, Glossier do not have to worry about the change from in-store shopping to online shopping.
Threats
- Competitors with more affordable prices: There are threats to customers going for cheaper drug store brand lip balms rather than high-end pricier Glossier lip balm.
- More convenient stick lip balms: Glossier’s Balm Dotcom is a cream, which means that people who prefer stick lip balm have lower chances of trying Glossier’s Balm Dotcom.
Objectives and Issues
Glossier has set important, attainable objectives for its first and second year of business.
First-Year Objectives
During the first year, Glossier aims to first promote brand awareness among its future customers. Not only that, establishing a strong social media presence and building great customer relationships are important as well. Glossier also plans to promote its slogan, and highlight the difference between Glossier and other beauty lines.
Second-Year Objectives
During its second year, Glossier will release new beauty products and offer a wider range of skin care products. These new beauty products and skin care products will be new and unique, separating it from other brands. Glossier also hopes to expand its customer base by its second year.
Issues
The main issue Glossier would face is the higher percentage of people that consider price a liability when purchasing products compared to people who prefer quality over price. Glossier is a high-end beauty line that is worth every penny spent on its high-quality products. The main problem would be enabling people to see its worth, and convincing them that Glossier’s quality of product makes the price worth it.
Market Research
To maintain its strong online social media presence and direct communication with customers, Glossier will keep up with trends to make advertising, promotions and products relevant to current trends. Glossier will also research customers’ needs and wants and create products to meet these demands. Not only that, Glossier will also continue to focus on relationships with customers and build a strong customer base.
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