Cosmetic Industry and Argan
Oil
Burnet and Fiume (2011), in an article titled the Final
Report: Plant Derived Fatty Acid Oils Used in Cosmetics discusses the
safety and use of plant based oils in cosmetics. According to Burnet and Fiume
these oils, which are derived from vegetable and fruit plants, are composed of
mono-, di-, and, primarily, triglycerides, free fatty acids and other minor
components, including natural antioxidants and fat-soluble vitamins. The
percentage of chemical constituents and nutritional content of individual oil
types is dependent on region where the oil plant is grown, individual
cultivars, and plant genetics. Oils used in cosmetics are likely produced in
the same manner as those used in the food industry. Oils may be expressed
through mechanical or solvent extraction. The oils may undergo further
refining, such as neutralizing, bleaching, and deodorizing, to remove pigments,
odors, unsaponifiable materials, and other undesirables. The report concludes
that Argan oil, is one of 146 types of derived from edible vegetable oils,
which is safe to use in cosmetic.
Cosmetic Market
Analysis
Ferrer, Hidalgo, Kaps and Kougoulis in a 2012 article called
Market Analysis. Revision of European Echolable Criteria for Soaps,
Shampoos and Hair Conditioners, state the European cosmetics industry
sector, represents one-third of the global cosmetics market. Germany has the
largest market in Europe, followed by France, UK,Italy and Spain. The EU
cosmetic market is expected to grow with 4.4 per year for the next decade. With
more than 4000 companies operating in EU, employing approximately 1.7 million
people. The EU cosmetic market is dominated by big multinationals companies.
P&G is the leader in this market, followed by L'Oreal and
Colgate-Palmolive in the third place.The biggest problem that the sector
suffers, is saturation of the market, with slow growth expected in the next
years.
As
a summary, the cosmetic European market is considered as one of the biggest
market in the world, and presents a big opportunity for all companies in the
sector. Even, the high competition, known in this sector, especially, by big
brands. It still a big opportunity for a new product such as our product
Pure Argan Oil, to succeed in this market.
The last point in this literature review is a feasibility
marketing plan study for a product named as Gillette Men's shave gel with Argan
oil. This product is somehow, similar to our product and a marketing plan will
be very helpful in our feasibility study.
Country Analysis &
Marketing Plan
The work of Blank, Hancock, Levin, Romanowsky, Somers and Walsh
(2010) discusses the analysis of the Moroccan market to determine if Gillette
men's shave gel with Argan oil, is viable and profitable for Gillette brand.
The Authors started the study with an analysis for the country in the
economical level as well as the political one. They confirmed the new place
that Morocco start playing in North Africa as well as South of Europe, as one
of the big economical actors in the region. With the huge reforms presented by
the new Moroccan king in all kind of sectors. In the second part of this study,
the authors did a marketing plan.
According to Blank et al (2010) the Mission statement is
providing high quality product with cheaper price. Also theSWOT analysis shows
that the Gillette brand is already exist in the market, so this is a strength
point for the product. Also, the high cost of the product will make the price
higher than other similar products and this will be one of the weaknesses. In
addition, there are no shaving gel with Argan oil in the market, which present
an opportunity for the product. However, most customers tend to look for simple
product, and cheaper ones, this will be a threat for the product.
The market analysis and marketing mix, show that the Moroccan
market is a promising market for such product as this product, and Moroccan
tend to spend a lot of money in grooming and cosmetic products. Furthermore,
according to the authors «Gillette is currently distributed at a number of
locations, from small trade store, to large ones. With the value- add of Argan
oil, it would be most beneficial to initially introduce this product in venues
that support the concept of being high class, successful, and
modern.»(Blank et al, 2010).
| 
