Alticor Competition
Now Viewing Alticor's competition in: Cosmetics, Beauty Supply, and Perfume Stores
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who is the company’s typical customer? - Typical customers include women 25 to 55, salon professionals, and salons. Demographics differ depending on product segment.
What are the company’s most effective marketing and promotional vehicles? - Vehicles include instore flyers and displays; newspaper, print, and TV advertising; and direct mail.
What kind of marketing support does the company receive from manufacturers? - Manufacturer-provided samples, testers, and gifts with purchase promotions are especially helpful with more expensive goods.
How does the company develop customer loyalty? - Word-of-mouth is important to develop a customer base. Some beauty stores have loyalty programs encouraging volume purchases.
How does the company evaluate customer service? - Customer service can be particularly important for stores specializing in high-end beauty products. Experienced sales associates recommend products to match a customer’s physical characteristics, such as hair color or skin type.
What role does the Internet play in the company’s marketing plan? - Companies may have Internet sites listing store information and offering products for retail sale. Store websites may offer special discounts for online or instore purchases.
What types of programs does the company have for salon professionals? - Beauty stores may provide special discounts for salon professionals.
What is the average customer sale? - The average customer sale ranges between $15 and $50 for stores without salons and exceeds $25 in stores with salons, according to Beauty Store magazine.
Competitive Landscape
Demographics, consumer spending, and fashion trends drive demand. The profitability of individual stores depends on the ability to generate store traffic and effective merchandising. Large companies can offer a wide selection of products, and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by selling specialty products, providing superior customer service, or serving a local market. The industry is labor-intensive: average annual revenue per worker is about $85,000.
Full Industry Overview For Cosmetics, Beauty Supply, and Perfume Stores
Business Challenges
CRITICAL ISSUES
Competition from Alternative Retailers - Beauty stores face a wide range of competitors across all price segments, including department stores, mass merchandisers, TV shopping networks, and Internet retailers. Department stores are the top channel for beauty products, driven by dominance in the prestige market. By stocking a wide range of products, mass merchandisers benefit from heavy customer traffic. Both TV shopping networks and Internet retailers have had strong growth in beauty products sales.
Dependence on Consumer Spending - Sales of beauty products, particularly high-end, are susceptible to decreased consumer spending. Consumers consider many beauty products luxuries, and segments of the industry are vulnerable to economic downturns. Consumers may reduce discretionary purchases and may switch to less expensive beauty products during tough economic times.
Industries Where Alticor Competes
- Consumer Products Manufacturers
- Personal Care Products
- Cleaning Products
- Agriculture
- Leisure
- Retail
