Ulta Beauty, Inc. Company Analysis
Description of the Organization
Ulta Beauty, Inc. is a US-based beauty retailer that started in the year 1990 as a partnership between Richard E. George and Terry Hanson (ULTA – Ulta Beauty Inc Shareholders – CNNMoney.com, 2020). It went public in 2007 when it became the holding company for the Ulta Beauty group of companies. It is now owned and managed by a team of directors, most of whom are the chief shareholders. It deals in cosmetics, fragrance, skin and hair care products as well as salon services. It is a B2C organization since it sells its products and services directly to the public. The organization has more than 20,000 beauty products from more than 500 beauty brands (Ulta Beauty – Company Information – Company Overview, 2019). It also has its own label. As a B2C organization, the company has stood the best player in the US beauty industry, operating more than 1200 stores in close to 50 states as of June 2019 (Yahoo finance, 2020). The adoption of digital marketing has also widened the market through the company’s website, ulta.com. It has its headquarters in Bolingbrook, Illinois.
Industry Analysis
Our organization operates in large US beauty and salon industry. The market entails beauty products such as cosmetics, fragrance, hair, and skincare, as well as styling tools. The US beauty industry is worth $134 billion, with $81 billion going to beauty products and $53 billion going to salon services (ULTA – Ulta Beauty Inc Shareholders – CNNMoney.com, 2020). The industry is expanding both nationally and regionally. This calls for a strategic marketing plan that will maintain our competitiveness. Competitors in products include specialty stores, departmental stores, mass merchandisers, and the e-commerce business. On the side of the services, we face competition from both chains and independent salons. Don't use plagiarised sources.Get your custom essay just from $11/page
According to the United States Securities And Exchange Commission (2017), the markets for beauty products and salon services in the US are highly competitive with few barriers to entry. We compete against a diverse group of retailers, both small and large, including regional and national departmental stores, specialty retailers, drug stores, mass merchandisers, high-end and discount salon chains, locally owned beauty retailers and salons, e-commerce businesses, catalog retailers and direct response television, including television home shopping retailers and infomercials. We believe the principal bases upon which we compete are the breadth of merchandise, our value proposition, the quality of our guests’ shopping experience, and the convenience of our stores as one-stop destinations for beauty products and salon services. Many of our competitors are, and many of our potential competitors may be, larger and have greater financial, marketing and other resources and therefore, may be able to adapt to changes in customer requirements more quickly, devote greater resources to the marketing and sale of their products, generate greater national brand recognition or adopt more aggressive pricing policies than we can, hence substituting our products. As a result, we may lose market share, which could have a material adverse effect on our business, financial condition, profitability, and cash flows.
Generally, the industry is threatened by both local and international economic situations, especially the capital market (United States Securities And Exchange Commission, 2017). The continued volatility and disruption to the capital and credit markets have had a significant, adverse impact on global economic conditions, resulting in recessionary pressures and declines in consumer confidence and economic growth. However, there is a greater window of opportunity in the e-commerce direction. Investing in online marketing and large-scale e-commerce would automatically globalize the industry.
Products and Service Analysis
As far as the products are concerned, our company sells makeup products, which include foundation, concealer, face powder, color correcting, blush, face primer, contouring, bronzer, highlighter, setting spray, conditioners, shampoos, hair styling products, and tools and perfumes. We also offer makeup brushes and other tools, as well as makeup bags and cases. On the side of services, we offer hairdressing, makeup and skin services, manicure, and pedicure. The products are customized and need-driven hence improving customer satisfaction.
In terms of pricing, our company does not necessarily charge low prices. However, it boasts on other bonus-driven strategies such as the loyalty program that helps to maintain existing customers (United States Securities And Exchange Commission, 2017). The price can be said to be average with other organizations, but the quality of goods and services does the magic. As a result of the value for money approach, the organization has been able to stand a competitive position (Yahoo finance, 2020).
References
ULTA – Ulta Beauty Inc Shareholders – CNNMoney.com. (2020). Retrieved 10 February 2020, from https://money.cnn.com/quote/shareholders/shareholders.html?symb=ULTA&subView=institutional
Ulta Beauty – Company Information – Company Overview. (2019). Retrieved 10 February 2020, from http://ir.ultabeauty.com/company-information/company-overview/default.aspx
United States Securities And Exchange Commission (2017), Ultra Beauty, Inc. Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended January 28, 2017. Retrieved from http://s21.q4cdn.com/115747644/files/doc_financials/quarterly/2016/q4/UltaBeauty_10K_20170328.pdf
Yahoo finance. (2020). Retrieved 10 February 2020, from https://finance.yahoo.com/quote/ULTA/profile/