Topics: Olive oil, Organic certification, Organic food Pages: 8 (2082 words) Published: January 12, 2014


Olive SkinCare Company is an Australian owned organic skincare brand which encompasses a range of organic certified goods by the Australian Certified Organic organisation (Olive Skincare, 2013). Its unique market proposition is based on pure organic olive oil, a unique soap making process, its organic status and the benefits this product has on things such as eczema and psoriasis (Com Luv, 2011). Marketing Position (S.W.O.T)- Developed in accordance with STRENGTHS

Already established Australian business.
Very little knowledge or experience in overseas markets when it comes to making the product or distributing it under the OOSC brand or with a third party. Chance to learn about a new market, cultures and label laws. Opportunity to establish relations with existing complementary brands. Potential market threats like big or long term players e.g. L’Oreal who already have a well established brand and higher buyer power. Unique value proposition with natural olive oil.

Unique value proposition does not appeal to all markets, the product is based on one value element of olive oil only. Opportunity to explore local and national ingredients. Could expand into new organic areas with relations of that country.

Existing market entrants from obtaining olive oil or similar products to market the same end consumer to. Organic accreditation for the olive oil and certain products. Organic accreditation will differ by country, new accreditation required. In Australia AOC changes have stopped the release of several organic certified skincare. Look at international organic accreditation, establish new worldwide partners for ingredients and explore avenues for the existing batch to be ruled organic internationally. Local resident feedback, Australian consumer perceptions on how in one country one is perceived as organic, other not so. Could be challenged by others in market. Great benefits of the product e.g. psoriasis and eczema sufferers. The product only has local testing. The product needs to be careful of any claims particularly in international markets. Opportunity to enter into new arrangements for testing without animals on a local basis, and to certify certain claims internationally. Existing entrants trying to market the same benefits or become competitive via pricing methods e.g. exclusivity or predatory pricing. Production is done locally by Olive SkinCare for quality assurance. The production if imported will be subject to tax. Mass production may not be available, limited capital resources. Look at new partnerships to manufacture product in that country or look at ways to increase welfare. May lose accreditation if not careful in ensuring standards are met and comply with organic agency terms and conditions. Has a strong online presence including e-comerce and Facebook. Online presence limited by language barrier.

May explore new areas e.g. retail connections internationally. Local brands and community who are well established.

In this report the three countries which will be explored include China, Indonesia and South Africa. China
China has a total population of more than 1.3 billion people (DFAT,2013), and an income level regarded as “upper to middle class’(Doing Business, 2013) , the opportunities for entry should be considered.

In the skincare industry, China has experienced robust market growth with expectations for the market to grow a further 10% in five years. This growth stimulated by rising disposable incomes, pressure on personal appearance and leading influence of celebrities in the industry. (Euro Monitor, 2013). The market often does not accept western ideals, but many of those in China often believe western products such as exported olive oil, bring greater benefits. China does not have a main cosmetic brand of its own, with 17% of the market share owned by L’Oreal and other...

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