Strategic Group Mapping: Beauty Retailers

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Products sold in a retailer that reaches a wide geographic scope would have to specify the products sold to the needs of the consumers in that geographic region. Retailers may face government and environmental regulations on products that differ from country to country. Especially with the beauty industry regulations on what goes into products and how they are produced vary between the set standards. A starving market for natural products that are offered at lower prices could flourish because there wouldn’t be as many regulations on formulas because ingredients would be naturally grown. Consumers are pushing away from traditional products and wanting to know what they are using on their bodies but natural lines can be hard to access and high in price.

The best place to be, based on the mapping of the companies I chose is right in the middle where Target and Ulta are positioned. Ulta in particular offers a wide range of beauty and health products available in one location. The company has created a unique niche within the industry providing consumers with an experience, combining drugstore staples sold under the Walgreens Boots Alliance and luxury brands offered at department stores like Nordstrom. In this market position they are in the median for price point as well as geographic scope meaning price wouldn’t be a barrier for attracting new customers because they offer products from both sides of the spectrum, and their geographic scope has much room to expand.

I think the position of drugstores allow them to prosper because they offer products at low price points while reaching a wide geographic range of people. Drugstores in the beauty industry apply to the masses through their partnerships with hundreds of brands that offer products that satisfy every consumer’s basic needs. Based on my map I would interpret that high-end strategic groups would experience more struggles because their stores feature luxury brands that cater to a much higher priced market. Department beauty retailers could also struggle because they tend to be sparser in storefronts, but with the new age of online shopping consumers can find an outlet for purchasing their products easily. I think the level of competition within sectors accounts for why parts of the map are better than others. I think it would be ideal to position a company within the median price and scope sector because as a company your service reaches more consumer categories.

References

Bluemercury - Macy’s, Inc. (n.d.). Retrieved September 27, 2017, from

https://www.macysinc.com/bluemercury/

Company Information, Facts & Figures. (n.d.). Retrieved September 27, 2017, from

https://cvshealth.com/about/facts-and-company-information

Our stores. (n.d.). Retrieved September 27, 2017, from

http://www.boots-uk.com/about-boots-uk/about-boots/our-stores/

About Us. (n.d.). Retrieved September 27, 2017, from https://www.sephora.com/about-us

About Nordstrom. (n.d.). Retrieved September 27, 2017, from

http://shop.nordstrom.com/c/about-us

About us. (n.d.). Retrieved September 27, 2017, from

http://www.walgreensbootsalliance.com/about/