Small Cosmetics Brands Make Over the Beauty Market by Targeting Millennials

Small cosmetic brands are taking a new approach to their marketing strategy that seems to be rapidly increasing their growth in the market by more than 20%. They are focusing on attracting millennials by promoting their products through influencers and social media. Their products are designed to attract this very specific niche because they know that millennial buyers are the ones who buy the most skincare products these days. Their products are often organic and personalized, and their branding is simple and modern. They also rely on online sales even though some have opened one or two physical stores. 

This strategy has been successful because these companies have shown how they understand their markets and customers despite being new and having less money to invest than bigger brands. In fact, global brands are even losing share because they are being replaced for the new "indie" brands. However, this big change is not only happening in the skincare industry, but also in the makeup industry, which had been led by giant corporations in the past and now is losing customers to smaller companies that are growing faster than them. As a result, big companies decided to keep their leadership in the market by buying stakes in small brands. 

The article describes the cases of three successful indie brands, True Botanicals, Glossier and The Ordinary, which now share their stakes with Unilever and Estee Lauder respectively. The decision of their owners of letting big companies acquire part of their stakes have brought negative and positive consequences. On one hand, some customers feel that they might stop using their natural ingredients and start using harmful chemicals that are known to be used by bigger brands. However, both the owner and representatives from Unilever have expressed that they plan on maintaining the brand's core value. On the other hand, the owners of small brands think that their corporate expertise is what they need to keep growing. 

To conclude, this article is very much related to the content that we have learned in the Principles of Marketing class. We can see how the indie brand really studied their market and develop a product based on the understanding that they got about their client’s needs, interests, and likes. Their marketing strategy was also created according to their target market, and that is how they got to attract so many customers in a short period of time. Also, their products successfully passed the Market Introduction phase of the Product Life Cycle and are now entering the Market Growth phase. On the other hand, the big brands are trying to acquire these indie brands under their “umbrella” so they can still be the leaders.

Link to article: https://www.wsj.com/articles/small-cosmetics-brands-make-over-the-beauty-market-by-targeting-millennials-11556296365

Written by: Adriana Chacon

“Gas Prices Creep Toward $3 a Gallon”

“Gas Prices Creep Toward $3 a Gallon” by Dan Molinski was published on April 1 of 2019 at 1:51 p.m. on The Wall Street Journal. The piece goes into detail on how American drivers are currently paying an average of $2.71 a gallon, which is 28 cents higher than what it was in March, and about 50 cents higher than what it was in January, which is concerning. In May, the price is projected to come up to about $2.98, which is the priciest that gasoline has been in the nation since October of 2014. It defines how gasoline prices do tend to climb at this time of year as companies are attempting to produce more expensive, summer-grade fuel, reflecting their increase in prices for resources and supplies in what they are asking from their clients. Something that has also impacted the issue is the concern surrounding the issue in Venezuela, considering how American sanctions against the nation have eliminated crude oil shipments from Venezuela into the United States. The International Maritime Organization 2020 is also going to impact the prices of gasoline towards the end of the year, as analysts say that they are going to have changes in marine sulfur regulations that are directly going to impact the prices of gasoline in a way that makes them much higher for consumers. This piece is able to show how the markets of sulfur are directly related to the markets of gasoline and diesel, and that changes in one are immediately and absolutely going to spark reactions in the others that are connected with one another. It is also able to show how sometimes, when people perceive market changes as being negative because the prices for their commodities are going up, with gasoline being a main example, that it is actually more positive than they might think because of how advancements and changes are being made. It also shows how the market for oil is going to be experiencing some fluctuations, and that this is something that the public has to be prepared for, especially those who are working directly in the oil or petroleum markets or are somehow invested with companies who are directly related to them. 

https://www.wsj.com/articles/gasoline-prices-creep-toward-3-a-gallon-11554120002?mod=searchresults&page=17&pos=2

“U.S. Retail Sales Fell 0.2% in February”

“U.S. Retail Sales Fell 0.2% in February” in The Wall Street Journal was published by Harriet Torry at 1:12 p.m. on April 1 of 2019. The article talks about how there has been some hesitation among consumers in February, as the rates of retail sales have decreased quite a bit in comparison to where they were before. It demonstrates how retail sales were revised as being higher in January, which is something that makes this phenomenon a bit difficult to understand. However, the article talks about how this is not something that is bringing up too much concern, as there have been analysts and economists working with one another to understand whether this is something that is going to continue and worsen or stall and stop. They attribute these changes in spending to the timing of tax returns, claiming that this is temporary and that the nation is not going to suffer from this as much as they might believe. It also states that this is something relatively difficult to read, considering that they are unsure if this has directly to do with the conditions of the market or if it has directly to do with consumers’ attitudes towards the products that are available to them at the moment. It states that data on retail sales can be somewhat volatile when it is gathered on a monthly basis, and that it is not as easy to interpret it as it might be for sectors such as housing and healthcare. However, this does provide a concern in the marketing sphere as a whole because of how it is difficult to read how one’s spending patterns in retail might be attributed to their attitudes towards the market, but because of how this is so difficult to measure, it is something that would be almost impossible to generate based on how individual surveys and interviews would need to be conducted to figure out these attitudes. As a result, there need to be new ways through which this retail data can be interpreted in order to understand its overall impact on the market, focusing on how this reflects the way that people see the market in its current position and situation, as well as how this reflects how willing they might be to continue investing or becoming involved with it in the first place. 

https://www.wsj.com/articles/retail-sales-dropped-0-2-in-february-11554121937?mod=searchresults&page=17&pos=3

“Tech, Media & Telecom Roundup: Market Talk”

“Tech, Media & Telecom Roundup: Market Talk” was published in The Wall Street Journal on April 3 of 2019 at 5:32 p.m. in order to talk about some of the biggest topics on the table relating to the market at the moment. It begins by discussing how a return to sustainable profitability for Advanced Micro Devices is something that is going to help the stock value of the company, and that they are going to be able to demonstrate EPS power of a higher value than what it is now within the next few years. It then discusses the prevalence of how much people upgrade their iPhones by taking into consideration how many people worldwide use their iPhones and how many people switch to rival smartphones, looking at how this is something that has only contributed to the growth of the company as much as it has to the value of their shares. The Justice Department attempted to block AT&T’s Time Warner purchase in order to avoid a complete acquisition of a vertical merger, as well as attempting to block political interference, but that this is something that has proven to be challenging. In addition, more firms are trying to add roles that are focused on inclusion in their workplace, especially in the market, allowing for a more diverse workforce to feel more comfortable within their place of work. Each and every one of these discussions is tied to the previous one before it, demonstrating how these are all components of the market that are interrelated with one another, and how a shift in the sale or rate of upgrades of iPhones, for example, could come to impact the price of shares of a company that has a slight relation to Apple in some way. In covering the various events and discussions that are taking place throughout the short span of time leading up to the publication of this article, the site is able to talk about some of the most important additions or changes that the marketing sphere in the United States is experiencing at this point in time, as well as presenting these issues to the public in a way that will provide them with the information that they need in order to decide how they want to proceed with the market on their own. 

https://www.wsj.com/articles/tech-media-telecom-roundup-market-talk-11554327169?mod=searchresults&page=1&pos=8

“How Much GDP Is Facebook Worth?”

“How Much GDP Is Facebook Worth?” by Mike Bird was published on April 3, 2019, on The Wall Street Journal at 10:04 a.m. The piece talks about how Facebook is one of the most-used social media platforms in the world, with a poll asking individuals how much they would need to be paid in order to give up Facebook for a month averaging out to about $42.17. However, it comes to the conclusion, at the hands and brains of economists including MIT’s Erik Brynjolfsson, that social media is something that has and will continue to boost American economic growth between rates of 0.05 and 0.11 percentage points yearly. This is a statistic that is gathered under GDP-B, which is something that allows for companies and economists to understand the measure of output that takes into consideration the fact that these services are free, and are influenced by other things. The overall conclusion of the article is that the benefit that consumers would derive from Facebook would amount to billions of dollars a year of gross domestic product, which is something that could be poured into research and development of new social media platforms that would permit for the emergence of similar or new ideas. This piece provides a deeper understanding into the value of some of these large companies in a way that many people do not even consider, seeing as how people just use these platforms without often thinking about how much the application they are using is making in that very moment, or how much they could be making under certain circumstances. As a result of this, it is important to understand how these companies and organizations are able to gain such a reputation and stature in society today that they could literally contribute to the GDP if they were to allocate the revenue they are making towards it and pour it into fueling social changes and adjustments. The contribution that these companies make to today’s market are immense, permitting for people to understand that they have a much larger influence on the way that economic activity plays out than they ever might have considered before. 

https://www.wsj.com/articles/how-much-gdp-is-facebook-worth-11554300250?mod=searchresults&page=1&pos=10

“Young Americans Faring Less Well in Credit Markets, New York Fed Report Finds”

“Young Americans Faring Less Well in Credit Markets, New York Fed Report Finds” was written by Michael S. Derby, published in the Wall Street Journal on 4:38 p.m. of April 2, 2019. It talks about how debt among those who are older and have higher credit scores, as well as those who live in wealthier households, which is something that is ‘leaving behind’ younger generations. They are often brought down by massive student debt and are not given the opportunities to build their credit with professional banks, as there are many who do not want to accept the business of college students and young adults until they have at least had a few years with a serious bank on their own. In addition to this, they are not given the chance to borrow money to pay off the debt that they accumulate, meaning that they are burdened even more as they are not given a way out of the problem they find themselves in. The article cites the fact that student loans are now at 10.7% of household debt, and auto loans are 9.3%, meaning that this is something that has been observed as rising exponentially over the past few years, which is very concerning. This impacts the marketing industry in that those who are looking to get involved in the marketing industry by either investing or attempting to work with a business or getting financially involved in any sense are highly limited if they are within these generations, as they have little to nothing to contribute. Also, this is concerning in that it damages the economy and can prove to be a serious problem when they are inundated in debt, rising the overall household debt in the nation to a point that it might not be able to come back from. This makes it harder for Americans to begin their lives, purchasing a home or taking out a loan or putting a down payment on a car, as they just do not have the funds to do so and are not given the chance to prove that they should be given this support. Because of this, this is a very serious problem that the nation has to address before more and more Americans are put in an uncomfortable position in which they cannot financially support themselves. 

https://www.wsj.com/articles/young-americans-faring-less-well-in-credit-markets-new-york-fed-report-finds-11554237538?mod=searchresults&page=2&pos=11

“Trump Has a Plan to Stop Fake Goods”

“Trump Has a Plan to Stop Fake Goods” was published on April 2 of 2019 in The Wall Street Journal by Peter Navarro, talking about how one of the biggest concerns that Trump has raised in his past few discussions is that of fake goods making a massive profit off of the American people without them even knowing it. It looks at how there have been various investigations targeted against certain companies and led by certain government institutions, such as the Customs and Border Protection, in which it has become rather obvious that the majority of the express-mail packages that were arriving from the Eastern part of the world were containing counterfeit objects, with one of the most concerning being pharmaceuticals. Among these were counterfeit prescriptions, one of the most common being fentanyl, which can be highly dangerous, considering that if it is a controlled substance made improperly, could seriously damage the health of the nation. Trump highlighted upon how these kinds of transactions can lower the nation’s trust in certain companies, and how most of the time, they are not even aware that they are purchasing counterfeit goods, and that they consume and use these products on a daily basis without even realizing it. The problem with this in relation to marketing is that these companies are manipulating the public and pushing them to believe that the products they are using are safe, when in reality, they are putting them in danger in more ways than one. This is something that is highly concerning, and could put people on edge or could put them in harm’s way, and could also decrease their trust in the government and business as a whole. Companies and corporations could suffer, and this could take a toll on the economy of the nation if the public feels that they cannot purchase goods from large-scale producers and distributors such as eBay and Amazon without knowing if they are purchasing something real or not. It is important for these companies to instill stricter regulations and inspections when it comes to these goods, as it has to do with the health of the people they are selling to.

https://www.wsj.com/articles/trump-has-a-plan-to-stop-fake-goods-11554246679?mod=searchresults&page=1&pos=11

"Cancer-Drug Giant Roche Loses Edge as Rivals Grow"

Roche has dominated the cancer drug market since 2002. Roche has dominated the cancer drug market since 2002. 

Over the recent past, Swiss drug manufacturer, Roche has witnessed increased competition from emerging companies in the pharmaceutical industry. Notably, its top-selling products such as cancer treatment that has been dominant since 2002 are projected to be out-competed by smaller emerging companies as well as mergers and acquisitions in the industry, for instance, Celgene Co. and Bristol Myers Squibb. Notably, studies show that the changing marketing models in the company promote lower-cost copies that are likely to cut billions of annual revenue from drugs such as Avastin, Herceptin, and Rituxan by 2022. Therefore, the company is shifting to a reliance on non-oncology drugs through one of the heads, Bill Anderson, reiterated that the company had not stopped cancer research. However, the report indicates that Roche's marketing communication in the discovery, development, and delivery of new cancer drugs face stiff competition from rivals such as AstraZeneca PLC, Pfizer Inc., and GlaxoSmithKline. Statistics from IQVIA indicate that from 2007 to 2017, cancer treatment clinical trials increased with more than 60% among pharmaceuticals. According to healthcare investor, Brad Loncar, Roche is losing leadership in cancer treatment with recent defeats coming from companies such as Merck & Co. that have shorter histories. Markedly, the business is failing due to the company’s strategy to conduct fewer more targeted cancer clinical trials that were defeated by Merck on the ground of what the rival invested in the project.

Clearly, Roche has issues in the marketing strategy and entry. The pharmaceuticals field has become a marathon where only the best marketing strategies will survive since even emerging companies are conducting clinical trials and drug manufacture. Markedly, reimbursement and market access have been major challenges for Roche in this intense competition. The company’s failure forms the basis for a strategic analysis of its market and marketing strategies in the modern shifting pharmaceutical industry. For other companies in this industry, the study will help in market structuring and overview, exploring best long and short-term marketing trends, and global market networking and forecasting to gain competitive advantage.

https://www.wsj.com/articles/cancer-drug-giant-roche-loses-edge-as-rivals-grow-11556449201

How a Mirror Can Help People Who Hate Their Bodies

How a Mirror Can Help People Who Hate Their Bodies

Talking with a therapist in front of a mirror can help patients work through their emotions and gain new perspective

Studies have shown that a mirror can help people who are unhappy about their bodies. Mirrors allow them to feel better about themselves. An article published information stating that “mirror exposure therapy is effective for treating people with eating disorders and a negative attitude towards their body.”

Mirror exposure is designed to decrease distress because it allows sufferers to confront things that are causing their negative feelings. Some therapies involve participants to observe themselves in a mirror and then describe their bodies with nonjudgmental language. Other therapies involve participants to stand in front of a mirror and describe their emotions while they are observing themselves and their bodies.

The article mentions that people should not try to treat themselves with mirror exposure therapy. This can allow therapy clinics to target people who are unhappy with their bodies and promote this new type of therapy, which acts as their service. I find it interesting because psychology disorders are very difficult to diagnose as well as treat because everyone is different, and they can be experiencing things in very different ways than other people. Everyone thinks differently and does things differently. That is why this mirror exposure therapy is not recommended to be done by oneself. For this therapy, it is important to have guidance from a professional who can stop negative talk about oneself and redirect thinking. It is important in the healthcare field to continuously seek new treatments because everyone is different, and a treatment may work for one person but maybe not another person. It is also good to give patients a variety of treatment options for them to decide which one they feel most comfortable with that will allow them to receive the amount of help they need. Experts should even ask each person who wants to participate a certain set of questions to determine if he/she is eligible for this type of treatment.

By Suzanne Oliver

April 29, 2019 10:00 p.m. ET

https://www.wsj.com/articles/how-a-mirror-can-help-people-who-hate-their-bodies-11556589601

"How Modell’s Narrowly Escaped the Retail Apocalypse"

Mitch Modell, the CEO of sporting goods retailer Modell’s Sporting Goods, at his office in New York. PHOTO: ANGELA OWENS/THE WALL STREET JOURNAL

Recently, Modell’s Sporting Goods faced a scare from its suppliers when they suspected the company was running bankrupt after hiring a bankruptcy-consulting firm, BRG. The CEO, Mr. Modell reported that the athlete apparel retailer lost vendor confidence with distribution falling from 18,000 daily shipments to 7,000. Most suppliers and their financiers expressed their fear that Modell’s was falling like other sporting chains such as Sport Chalet, Bob’s Stores, Eastern Mountain Sports, and other stores that filed bankruptcy. The recent scenes involved extensive input into sales and marketing where the CEO employed different platforms including personal communication to assure his suppliers that the store was stable. In fact, Mr. Modell reported that he had to present current financial records and ended BRG’s assignment to end the anxiety. With the inconsistent performance of the business, its vendors have important questions that the sporting goods store can address fully through the proposed marketing strategy of pop-up stores to expand beyond New Jersey, New York, and Philadelphia.

Communication has emerged had an important element of marketing. When firms make certain unclear decisions such as Modell’s hiring of a firm well known for dealing with bankruptcy, the management has significant marketing roles. This post highlighted communication and business customer value as marketing elements of stakeholder engagement. Kotler and Armstrong (2010) identified brand conversations and experiences in managing information. Notably, while the customers are the most important assets, handling suppliers can prove challenging when businesses make communication mistakes. The case of Modell’s scare from suppliers and their financiers provided the basis to explore the role of personal selling and ‘over communication.' The management will need to engage in extensive marketing to normalize business operations and resolve the insolvency threat. The firm has planned to open pop-up stores and smaller formats as part of its new market strategy to appeal to suppliers and property owners. Marketing principles will play an important role in Modell's marketing diversification, which makes this post essential for current and future marketing analysis during business dilemmas.

https://www.wsj.com/articles/how-modells-narrowly-escaped-the-retail-apocalypse-11556456400

"Marriott to Take on Airbnb in Booming Home-Rental Market"

This home in Lisbon is included in Marriott’s European pilot program. PHOTO: MARRIOTT

Marriott International hotel group is set to expand its rental services and products to compete with the home rental companies such as Airbnb whose presence in the accommodation industry is threatening hotels. In the US, the world biggest hotel operator plans to expand its market to capture the expanding tourism industry. Markedly Airbnb and other home-rental companies have continued to acquire hotel businesses to gain a competitive advantage over the traditional hospitality sector. Therefore, with increasing competition, Marriott has planned to venture into the home-sharing business and integrate current products and services. However, it is predicted that the company will attract new competition as well as meet safety management challenges. Due to such possible impediments, Marriott is collaborating a rental management company, Hostmaker, from London and US property management firms to establish home sharing services in London, Rome, Paris, and Lisbon.

According to Marriott's management, their successful pilot program established that combining a typical hotel with rental services will accommodate different customer needs in the hospitality industry. Markedly, some other global hospitality brands such as Hyatt and Accor in Paris have collaborated with rental management companies to introduce home rental services and products. However, due to increased competition from Airbnb, Accor reported a negative performance in 2018. In fact, Airbnb is set to collaborate with over 400,000 companies in its plan on corporate traveler project, Lyric, a $160 million start-up to completely dictate the apartment-rental business.

The quest for market power and competitive advantage has prompted different businesses to pursue different marketing strategies. Marriott’s entry into the home-rental business is essential in this marketing analysis as it provided a new platform to compete through different strategies. This article covers important marketing aspects such as E-marketing trends stressing product as critically influential in business operations (Strauss & Frost, 2008). In efforts to remain the leader of home-rental services, Airbnb has utilized a blend of marketing elements including pricing, promotional activities, products and services, and business alliances. Therefore, the post is relevant in our study because it explores elements of service marketing where technology, people, and strategy will be core in Marriott's success. Its pilot program to understand consumers, service products, and the market is integral, as the competition with Airbnb will define the future of hotels in the rental services.

https://www.wsj.com/articles/marriott-to-take-on-airbnb-in-booming-home-rental-market-11556535600?mod=searchresults&page=1&pos=1

Amazon's Profit More Than Double on 17% Rise in Sales

    Amazon's Profit More Than Double on 17% Rise in Sales 

       E-commerce company's quarterly revenue growth is lowest in nearly four years

An Amazon fulfillment center in Orlando, Fla. PHOTO: PAUL HENNESSY/NURPHOTO/ZUMA PRESS

Analysis by Kevin Nguyen

by Yoree Koh

https://www.wsj.com/articles/amazons-profit-more-than-doubles-on-17-rise-in-sales-11556224159?mod=searchresults&page=1&pos=1

One of the biggest companies in e-commerce is Amazon. Amazon has many loyal customers and it shows as their profits reached $3.5 billion in quarterly profits. Amazon's profits are going to keep increasing because they are making investments within the company to improve the consumer experience. Amazon has estimated that their profits are going to increase in the second quarter because they are hoping to invest $800 million to make one-day free shipping the standard Prime members, instead of two days. For years Amazon has been putting every dollar made back into its business, and because of this Amazon has now entered a new era of more steady income that is consistently growing. Amazon is at the point where they rarely have to do anything and their profits will take off and in the higher profit margins. Amazon's profits reached record numbers last year as its newer businesses like its advertising and cloud computing businesses began to take off, this helped to counterbalance the lower margins of its established retail businesses. Amazon's current quarter has estimated revenue between $59.5 billion and $63.5 billion which was a 13% to a 20% growth from last year. Many have projected Amazon's revenue to be on average of $62.4 billion. Amazon predicts that they will earn $2.6 billion and $3.6 billion in operating income for the second quarter. 

This article relates to marketing because Amazon is trying to cut costs to gain revenue, but at the same time they want to spend more money to create a better experience for their prime members. It amazes me how much money Amazon is willing to put down to receive a higher return on investment. I think Amazon's marketing strategy is brilliant! Amazon knows that pleasing their 100 plus million prime members will give them another reason to stay and keep their membership active. By putting at least $800 million down, Amazon is creating a pathway for billions and billions of dollars to be made. I chose this article because I am a prime member myself and the fact that Amazon is considering getting rid of two day free shipping is a blessing. If I need something as soon as possible, I don't have to wait two days for it anymore. I can finally get it in a day! I really love that Amazon is putting customer satisfaction first so they can retain their member's loyalty, it has definitely worked. 

“U.S. and Chinese Manufacturing Stabilize, While Europe Lags Behind”

The article “U.S. and Chinese Manufacturing Stabilize, While Europe Lags Behind” was published in The Wall Street Journal by Paul Kiernan & Paul Hannon on April 1, 2019, at 7:19 p.m. The article talks about how the United States and Chinese factory sectors have been able to stabilize within he past few weeks, which is something that brought about a large rally among U.S. stocks when investors had prepared for something much worse. It then discusses the positive effect that this has had on investors, treasury bonds, and the inverted yield curve that were all projected to suffer much more than they are at the moment. The previous manufacturing industry in February in the United States was at 54.2, rising to 55.3 the next month, giving hope that it will only continue to do the same as this index works on how manufacturing supply managers view their companies as expanding or contracting. The numbers above 50 are positive, considering that they have to do with expansion, and the index for managers in China has been promising, as it has been able to hit 50.5 in March from an increase from February at 49.2. However, this was not something that was experienced in Europe, as they felt the opposite effect, with their rate in March at 47.5 having decreased from that in February at 49.3. The article talks about how authorities have tried to stimulate activity by cutting taxes and lifting spending, as these are things that were done in China in order to change the rates, and were seen as effective. The piece does a great job at demonstrating how these changes in the manufacturing industry are directly related to marketing in that those who are invested in these nations in any way whatsoever are bound to feel the changes that they are experiencing, whether they be positive or negative. In addition to this, those who are working directly with the issue in Europe have to be able to take inspiration from the other nations such as China, referenced in the piece, in order to repair this problem and make the same progress that they have been able to make over the past few months in experiencing this expansion.

https://www.wsj.com/articles/factory-slowdown-adds-to-gloom-over-global-economy-11554123173?mod=searchresults&page=15&pos=8