The biggest strength of this company is the uniqueness of the product. Indeed, even if the company has a wide range of direct competitors (Skinny Dip, Fairy Secrets, Element Tree) is 2 in 1 candle is still an uncommon product. The uniqueness of the product can attract the curiosity of prospect customers and therefore stay ahead of their competitors. The beauty market is a growing market despite the high concentration of companies. Indeed, according to Kline "sales of the hand and body lotions category have grown at a CARR of 1. 4% from $1. 9 million in 2006 to $2. 1 million in 2012".
Additionally to that body lotion is a very used product, as a Minute research had shown 81% of beauty product consumers use body lotion and 89% use 89%. Moreover the men beauty product market is still booming and there are some market shares left. Indeed, according to a Minute marketing study, 7% of American males use anti-aging products and 59% of American men think that 59% care product can boost their self-confidence. The market of personal care product for men has increased, it represented 4% of the sales in 2007 and now it increased up to 12% in 2012 to reach 3 billion dollars.
Furthermore candles market is also a prosperous market, 7 out of 10 households own a candle and 90% of buyers are women, so a combined product is logical and can be successful. The organic ingredients, the "natural" designed packaging and the features of this candle, is also a strength, as shown in the Minute research "nearly one-third"6 of the consumers are seeking all organic products. Plus, these past few years articles pointed the harmful effect of candles especially because of their non-natural features. But this product is safe because organic but also because it does not damage the skin or burn it.
However concretes advantages are seen as important, thereby 61%7 of users are interested in extra moisture and 30%8 in anti-aging qualities, yet Creative Energy's candles are nourishing to the skin that last all day long, and have some anti-aging components. Everything in the product is studied to relax the owners of the candle. By targeting upper-end consumers, Creative Energy enters a promising market, a Intel's study has shown in 2007 that "luxury' candles' success rises year after year: the "segment rose from $132 million in sales in 2004 to hit $772 million"9 in 2006.
By creating a sense of luxury, the company also creates this privilege atmosphere with their candles that can be appealing to the customers. More than a good product, Energy Creative is also a promising company. The Coos understood that to succeed in this competitive field they should create a relationship with the customer in order to have a loyal clientele. On their website we can notice that all their products reviews are positive. Moreover, they are used to consumer shows in different markets throughout the United States so they were able to create a relationship.
This loyal legislation with their buyers can help them to escape from what a Minute study says: "No loyalty in lotion". They also have found a good balance between choice of products and overwhelming product line. Plus, the Coos know the market; they started the company in 2008 and have learned from their mistakes and their swot analysis by outcome those are relations that can be useful in the future. Creative Energy is well implanted in the continental United States and it has still a lot of opportunity to take and to build.
In addition, the founders have great and innovative ideas that will help them o distinguish themselves from their competitors. The producing price is very low thus it permits the company to have a reasonable gross margin, indeed it their margins are between 54 and 65%. However even if their gross margin is important, the retail price is still affordable, they start at 8$ for the small tin and the biggest candle's price is 24$. The product is easily marketable on the Internet, plus, using the social medias and new technology can help them to be known nationally or even internationally.
The creation of a website is a indispensable nowadays and Creative Energy is not an exception to the rule. The design and the components of this website help the visitors to relate to her story and to her. Consequently, the company creates more than a professional relationship with the customer. The solidity of the glass helps shipping the product wherever they need to. Last but not least, the Coos have already met a celebrity that helped them to promote the product and make it known. Therefore there is an opportunity of celebrity endorsement for this product.
PPTP Bullet Points
Uniqueness of the Product: 2 in 1 product can attract the curiosity of potential customers Female market huge ND male personal care products market is booming Creative Energy built a solid relationship with their partners Customers Suppliers Retailers Important gross margin Between 54 and 65% depending on the product ML citing sources: Kline Group, "hand and body lotion use", clinkering. Com, 2012. Web. September 2013. Minute, "Body Care Report 2012", minute. Com, 2012. Web. September 2013. Minute « Beauty and personal care product launches targeted to men increase by 70%over the past six years», minute. Com, 2013. Web.