Kora Organics: Marketing Strategies, Products & Positioning - An Essay.

Background of Kora Organics and its target market

The report consists of the description of a company along with the marketing strategy it conducts in the target market. The company is based on Australia and it belongs to the cosmetics industry. Kora organics is the company that is headquartered in Melbourne and the company provides services in certified organic and natural skin care products in Australia. The study will provide a brief description of environment of business of the company along with its organizational background, marketing strategies etc. The company is targeting the Australian consumers along with value proposition and the target market. Women of Australia are the primary target customers of Kora organics. Each Kora organic products are marketed in an attractive way for increasing the share of market for the organisation as well as maximise the profit within the organisation.

Kora Organics is an Australian cosmetics brand that is focused on selling into organic cosmetics products which enriches your spirit as well as skin. Usually high quality and integrated products are sold by the Kora organics. Each company products are manufactured with natural ingredient as well as highly certified organic ingredients that will help in making the skin soft, supple and hydrated (Wu and Lee 2016). The products are strictly adhered to the Ecocert’s strict standards, which are free from Paraben, sulphate, synthetic colours, glycols, etc. The company is selling its products across different parts of Australia. The products include various types of creams, cleansers, body wash, hand cream, lip balm, masks, etc. The macro environment of the business is almost in favour of the business except the suppliers’ relations and the threats from the rival brands. The internal business environment will be focused on increased brand awareness of the wide array of products of the companies (Piercy 2014).

The current marketing strategies of Kora organics is focused on its ingredients of the products. Nowadays people are more likely tend towards the different organic products being it food or different types of cosmetics. It has popularity among the Australian women; Products of Kora Organics are popular among the other products as they are effective and are based on the skin types of women. The availability of the products of Kora Organics is at the retail stores and departmental stores of David Jones Limited as well as luxury retail stores of Net a Porter (Baker 2014). Kora organics’ marketing strategy has the product mix, which is smaller than any other major cosmetics brand of Australia. However, Kora organics’ strategies in marketing are usually focused on the general niche image of the consumer products. Further the brand image of the organisation is also very important for increasing the revenue of the firm along with increased profitability of the company (Solomon 2014). The brand image in the organic products is an added advantage to the marketing strategy adopted by Kora Organics Australia that will increase the reinforcement of Kora organics’ image among the customer target minds.  

Company – Kora organics being founded in 2009 is one of the recognized organizations offering high quality skincare products to its consumers. Although the company is bale to gain much recognition over the last years, the SWOT analysis of the company can help in getting an insight into the future prospects and sustenance of the organization.

Product portfolio and ingredients

Strength Wide recognition across the Australian market More than 400 stores (?opaciuk, A. and ?oboda 2013) The organization has been able to gain huge recognition via awards such as Prix de Marie Claire Beauty Award for Best Body Product	Weakness Dependence on the Australian market for sales Average Product Quality Huge competition
Opportunity The company can expand beyond Australia Creating more Collaborative & participative community focused activities will help the company in building brand image	Threats Increased rivalry from competitors like Divine, The Jojoba Company, Sukin and others Changing tastes and preferences of consumers

     

Customers:

The KORA Organics intends to offer skin care products to the consumers who are more concerned about having a healthy, glowing skin, rather than merely opting for the face whitening products. The organic juices and oils used in the KORA Organics products make each one of the products a natural one. Hence, the consumer base that the company targets consists of women, belonging to the age group between 18 to 65 years, and to the high and upper middle class. The consumers base is expected to be educated enough to appreciate the deference between artificial, chemical-based beauty products and health, natural and organic products.Collaborators: KORA Organics as mentioned above intends to offer healthy alternatives to the normal beauty products available in the market. Hence, in order to create the organic and 100% natural products to the consumers, the company collaborates with a team of researchers and consultants in microbiology, aromatherapy and organic chemistry who specialise in organic and natural formulations. These teams help the company research on and identify the key ingredients that possess the natural healing and protective powers.Competitors- KORA Organics is not free from completion, and it does encounter serious competition from some of the rival brands. The major competitors of the company are The Jojoba Company, A’Kin, The Beauty Chef and Jurlique. Each of the companies offer natural, healthy skincare solutions to the consumers and hence provides strong competition to the consumers.

Context:

Skin care is projected to grow at a CAGR of 5% at constant 2016 prices in the Australian market, and hence it is expected that the skincare industry will remain a dynamic product category.

Target Market-

The target market of the company consists of the Australian female consumers, who belong to the upper ad upper middle class, and relying on the use of natural and organic long term health benefit products. Since the products are natural products made of organic oils and juices, it is not possible for reduction of product price. The product price range is moderately high, and hence the target audience of the company does not consist of middle class consumers. The target consumer base consists of the consumers who maintain a health conscious lifestyle, and are also educated enough to appreciate the difference between artificial, chemical-based make up products and the natural and organic products.

The founder of Kora Organics Miranda Kerr uses a holistic approach to the product formulation, which is essentially designed through enriching the skin as well as providing nourishment to the mind and body. Kora organic products also claim to be the product of highest quality and integrity. Pricing of the Kora Organic products are usually value based pricing in terms of the organic products (Chun 2016). The products of Kora Organics are known for healthier products that will help in skin replenishment along with products unique ingredients. Kora organics also tries development of maintaining strong communication along with the customers for providing reinforcement to the brand image of the organisation through increasing sales (Osterwalder et al. 2014). Further, the company is also renowned for providing value towards the customers for creating a value based business strategy along with the organizational objectives focusing to the customers. It will also summarize the reason of buying the products of Kora Organics to the Australian consumers (Grönroos and Gummerus 2014).

Marketing strategies and positioning

Kora organic’s positioning statement is usually based on the target market of the organisation. Primarily the target of Kora organics includes women consumers between the age group of 20 to 30 years of age (Lim, Chae and Jeon 2014). Apart from that, there are many products of Kora Organics that are used by the women and girls irrespective of all age groups. The positioning statement of Kora Organics will be based on the competitor analysis of the cosmetics brand (Payne and Frow 2014). As the company is based on the category of niche segments and organic based hence it will be unique. The positioning statement for Kora organics’ will be “Healthy skin is beautiful skin.”

Marketing Mix

Product: KORA Organics is known for offering a diverse range of beauty products to its consumers. The organization offers a wide variety of skin care products to its consumers, such as Cream Cleanser, Foaming Cleanser, Blemish Gel, Hydrating Mask and Enhanced Body Lotion. The company is known for offering a diverse types of skincare products such as defoliator, lip balm, sin care lotion, purifying masks, body wash gel and body oil. Regardless of the product type, each of the products offered are natural and 100% organic, and this adds to the unique selling proposition of the company (Huang, R. and Sarigöllü 2014).

Price: The product price has been deliberately kept higher, since the products offered by the company are natural and ski-friendly, and do not employ the use of any form of chemical in it. The organic range of skincare products is also associated with the eminent model Miranda Kerr, and hence considering the brand value, the company keeps its product range pricey. This adds to create value for the organization only. However, the company offers the products at a comparatively lower price while selling its products online.

Promotion: KORA Organics is known for promoting its products through multiple channels, such as traditional media as well as digital media. The organization has a strong and prominent online presence, whereby its products are promoted via the social networking sites such as Facebook, Twitter and Instagram (Babin and Zikmund 2015). The company adopts impressive online marketing strategies whereby it offers its products at discounted rates to its consumers. Website of Kora organics as well as Net-a-porter luxury e retailer helps in promotion the products of the company.

Place: The organization promotes its products across the world, although its domestic market in Australia is the most powerful of all. The company sells via offline physical stores as well as online media channels. The company also at the same time sells its products via online channels as well.

Price, promotion, and place

Conclusion And Recommendations

It can be concluded that the cosmetics industry in Australia has high competition, as there are many companies that are competing with each other in order gain a larger market share along with the acquisition of more customers towards the brand. The study discusses a detailed description of the different types of strategies adopted by the company in the marketplace. The company can utilize its unique brand message in order to acquire more customers towards it. The marketing mix, target market analysis, value proposition, positioning statement, Kora organics’ 5Cs are usually discussed for development of marketing strategy of the company that is being formulated is enriched and id aligned to the marketing goals as well as to the organizational goals.

It is recommended that the company must increase its distribution channel and increase the promotions in terms of both digital media promotion and traditional media promotion. Eventually, it will increase the acquisition of customers in order to increase the brand equity as well as the consumer decision-making process. The different types of strategies that will be responsible for different value proposition exhibition that are mentioned above in the study (Coursaris and Van Osch 2016).

References

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