Kummin cosmetics

Kummin cosmetics

Executive summary

Kummin Inc is a beauty and cosmetic company. It only recently started by its co-founders Candis and Amble and was named after an Indian dance. Its headquarters are located in New York although it has several branches across the country. The company deals with all things beauty, including skincare, haircare, toiletries, makeup, perfume and deodorants. The market for these products is mostly female clients. Kummin uses unique natural ingredients to make its products stand out from the rest. The company’s main attraction is the makeup kit and mascara foundation improvements. The products from Kummin are all health approved, have been tested and show outstanding results even on dry skin. The companies mission statement declares the organizations’ primary goal. To make women feel beautiful and confident in their skin. Some of the products get specially designed for black skin individuals. New designs in lipstick and foundation got developed to cater to black skin women. This act is not to say that men are left out. The company also produces several male-oriented goods, including lotion and deodorant. Exceptionally gifted in diversity, the organization relies on its team of experts to develop and market the brand. It has social media presence in all popular sites and a website of its own. At the company website, customers are encouraged to purchase things online by offering handsome discounts.

Overview

Kummin is a beauty and cosmetics company whose central office is in New York. The organization works to improve the lives of women by making them more confident through beauty. As a young organization, Kummin is still struggling with problems common to new companies. Marketing in a big priority and brand awareness building get intensely practised. The market is full of opportunity, as the target population is vast. Competition is stiff, but Kummin has some unique ingredients that allow then to stand out. Excellent financial and human resource management has allowed the organization to withstand trying times in the past. The success of the organization so far can be accredited to its splendid human resource team, good organization culture and quality products. It is a known fact that quality sells itself, and if customers enjoy using your products, they will return with a friend. Kummin products have shown excellent results with all who have tried them and have been called lifesavers by people with oily or dry skin. This paper will discuss the company’s situational analysis, segmentation, target market, budgeting and evaluation measures.

Situational analysis

Cultural and historical context

The brand name Kummin originates from an Indian dance kummi, mainly performed by women. The dance gets performed during significant festivals such as weddings, childbirth, and when a girl attains puberty. The co-founders of the company are especially fond of Indian culture and include some Indian portions in their products. The organization got built on a culture of love, equality and loyalty. The premises of the office got decorated with art from across the globe, including mostly Indian and Chinese artefacts. Employees are encouraged to keep fit and free from stress by attending the company gym and yoga sessions. Working hours are punctuated with scheduled meditation hours to allow workers to relax and imagine. The company logo is the image of a woman performing the Kummi dance. Cosmetics and beauty products have always been on high demand in the U.S. as time progresses the demand increases, and new products get invented now and then.

Industry analysis

The beauty and cosmetic industry are one of the largest and most profitable ventures in the U.S. many commodities fall under this sector all working to improve the image of the user. The United States was named the most valuable beauty and cosmetic care market in the world in 2018. Commercially, the industry is estimated to have generated 89.5 billion dollars in revenue that year alone. The figures are growing, and to this day, the industry got called somewhere between 400 and 600 billion U.S dollars (Sahota, 2014). With such huge numbers, the industry is responsible for many jobs in the market. The number of cosmetic and beauty stores increases by 4% each year, consequently rising employment by 13-16% annually. The U.S dollar works to the advantage of the industry as is quite valuable overseas. This fact makes it difficult for other countries to export their products to the U.S.A.

Market analysis

Beauty and the cosmetic industry seems to be ever-growing and increasing in both demand and value. The period between 2018 and 2020 has seen an increase of more than 50% of the industry’s worth. This business is truly a worthwhile venture for the entrepreneurs at Kummin. The industry has some giants of the market, some of which have been standing for decades. The most effective means of marketing beauty products have proven to be social media. With the growing mobile phone addiction, companies can’t find a better spot to fish for customers. Celebrities also come in handy when marketing skincare products and each brand has at least one famous ambassador (Akhoundi, 2013). Price wars often occur in this market where goods are closely related. The race to differentiation pushes organizations to adopt crafty strategies to entice consumers. Most of the cosmetic products get manufactured in different companies then sold to the brands.

Competitive analysis

Such a profitable venture is bound to have intense competition. The beauty and cosmetic industry are one of bitter rivalry among participating companies. Since the products are quite similar, organizations try to instil personality into their brands targeting particular class and emotions. Advertisements run in social media, television, billboards, and all media to keep the customer aware of the brands. In the U.S Kummin is facing stiff competition from the industries giants. They include Revlon, CoverGirl, Oriflame, and L’Oreal. All these are well-known brands with market territories, but Kummin has the secret ingredient that makes it stand out. Diversifying to meet all skin colour requirements also provides extra advantage for Kummin.

Segmentation

The cosmetics industry gets segmented into different categories according to consumer characteristics. The products get specially designed for people of different ages, social class, skin colour and gender.

Age – youthful and elderly skin is different and requires different approaches for good results. Some products are specially made for older individuals to allow them to overcome wrinkles and look younger.

Social class – when it comes to making up, it is considered an accessory. Many brands differentiate their products to cater to low-income customers. The rich may spend on the more luxurious packages as they want to stand out and be respected (Dodds, 2011).

Skin colour – beauty mostly resides on the skin, especially for women. Many brands have products for white skin but not so many dark skin products. Kummin’s advantage is in dealing with multiple skin colours.

Gender – cosmetic products are segmented for girls and boys. Deodorant and perfumes, as well as soap and lotions all, come with gender specifications.

Target market

The target market for cosmetic products includes practically the entire population. Each person is a potential customer as everyone wants to look good. Modern culture values appearances so much, social media overflows with images of people looking their best. The youth who make up a large part of the population is more targeted as they grow with brands they trust. Kummin aims to attain a market share among teenagers and retain their loyalty throughout the rest of their lives. Social media advertising and awareness creation is the way to go.  The brand also participates in free sampling and community interaction programs to gain more customers.

Objectives

The objective of Kummin company is quite straight forward. The company aims to improve people’s lives by enhancing their appearances. On the business side, building brand awareness is a priority. The organization has invested in advertising to draw in and retain customers. The aim is to ensure the brand name lingers in the consumer’s mind until they buy the products. Maximizing sales is also an objective that relies on the raising of brand awareness.

Budgeting method

To run a business successfully is essential to do proper budgeting. Financial mismanagement can lead to considerable confusion causes loses and exposes the company to fraud. Kummin utilizes the activity-based budgeting method to manage its commercial strategy. This method works by first identifying the required projects and their monetary value. Funds then get allocated to each project according to their estimated cost. This method is useful as it prevents overspending or wastage.

Strategy and execution

The strategy for Kummin is to raise brand awareness which will, in turn, increase sales. When sales are good, profit will also do well. Social media advertising will be intensive, covering all popular platforms. Several celebrities have got invited to help in the campaign including, Beyoncé, Rihana and Halle berry.  Free sampling and discounts will get used to attract buyers as they get a chance to try out the products.

Execution

Raising brand awareness is the main priority as the company is still young. Intensive advertising will get done on social media platforms across the internet. With the aid of celebrities who have millions of followers online, the brand will be well known soon. Online buyers will be encouraged to share information about the product on the company pages. Consumer feedback is highly valued at Kummin and will allow better goods and services to come from the company.

Evaluation

The performance of the company will get measured through sales statistics. If sales increase significantly, then the plan is a good one and should continue. However, if there are no changes or sales go down the company will have to review the strategy. The number of followers on social media accounts and feedback will also get used to assess the progress of the company.

References

Nezakati, H., Yen, C. P., & Akhoundi, M. (2013). Antecedents impact on brand loyalty in the cosmetics industry. Journal of Applied Sciences, 13(1), 126-132.

Hunt, K. A., Fate, J., & Dodds, B. (2011). Cultural and social influences on the perception of beauty: A case analysis of the cosmetics industry. Journal of Business Case Studies (JBCS), 7(1).

Sahota, A. (Ed.). (2014). Sustainability: how the cosmetics industry is greening up. West Sussex, UK: Wiley.