Fenty beauty is a cosmetic line that was launched in September 2017 in partnership with one of the top ranking internet retailers in America called Sephora. Founded by celebrity singer Rihanna, the company was created with a significant vision to include all women from everywhere in the world in to the world of beauty. Rihanna recognized that there was a considerable gap in the beauty and makeup industry in regards to the different shades of foundations. For this reason, she intended to create skin foundations that applied to all skin types and create universal shades (Ismail, 2018). After observing the top beauty companies, Rihanna discovered that the industry lacked beauty products that could cater to women regardless of their skin type or tone. She was therefore inspired to start Fenty Beauty.
Fenty Beauty has a significant market opportunity. Many brands founded by celebrities will always place the superstar at the center of the brand image and advertising. However, Fenty beauty emphasized its focus on advertising on women of all colors. This strategy creates an excellent market for the cosmetic line because it caters for a large section of women. The fact that the product line offers its cosmetic products in all colors and skin tones, it means that women all over the world regardless of their color will opt for Fenty Beauty products. This strategy ensures that the company has a large market globally (Ismail, 2018). Fenty Beauty is already experimenting with foreign markets and sell in over 17 countries worldwide. The company uses social media, social influencers, and bloggers as part of its global marketing strategy and this ensures that it establishes a large market.
· A strong brand name associated with a celebrity
· Unique products in all shades
· Attractive packaging
· Strong marketing strategies
· Animal-friendly and anti-cruelty products
· Only available in 17 countries
· Costly products
· Brand mimicking and similarity
· Use of other celebrities for marketing
· Products launch at big international events
· International expansion
· Consumer changing tastes
· Stiff competition
· Celebrity Scandals
· Substitute products
Fenty Beauty enjoys many strengths. First of all, the brand advocates for unity in diversity as a result of including products for all women regardless of color, race, and or religion. The Company also advocates for animal rights and supports anti-cruelty campaigns. This move is excellent for the company because it will help garner support for people who subscribe to the same beliefs.
The weaknesses, however, would be the lack of the company’s presence in many other places. The company only operates in 17 countries worldwide, and therefore it misses out on large market spaces (Ismail, 2018). Additionally, the prices for the goods are very high, and this may be challenging for customers who earn low incomes. Also, many companies specialize in cosmetics, and they have been there longer than Fenty Beauty has. This situation may be a challenge for the company.
In terms of opportunities, the company has the opportunity to expand internationally to other countries. Because of Rihanna’s influence, the company has a chance to use other celebrities for marketing initiatives (Ismail, 2018). Rihanna can also use opportunities during the launch of big events to advertise the company and its products.
The company faces threats such as stiff competition with other existing brands because they have been in the market and people are already familiar with them (Ismail, 2018). Similarly, if Rihanna being a celebrity gets in to a scandal, it will get highly publicized, and this may affect the brand’s image (Ismail, 2018). Lastly, the ever-changing needs of the consumer may require a lot of work, creativity, and innovation to ensure that the company keeps meeting with customer demands.
Porter’s Five Competitive Forces Model
In applying the Porter’s Five Competitive Forces Model to Fenty Beauty, the company has a low threat for new entrant because there is a high entry barrier for establishing a cosmetics line that offers brands in all shades. Since there are other cosmetic brands such as Huda Beauty that offers similar products, there is a moderate threat of substitute. There is also a high rivalry among already existing competitors such as Iman Beauty, Huda Beauty, and Ulta Beauty (Ismail, 2018). These companies offer high competition to Fenty Beauty. The bargaining power of famous brands is high because Fenty beauty sells its products at very high prices and therefore other brands can stand a competitive advantage by lowering their costs (Ismail, 2018). Since Fenty Beauty offers discounts and customer loyalty promotions, as well as a wide variety of product shades, the bargaining power of the customer is low because the demand for the products from Fenty is high.
Ismail, A. (2018). International Marketing Strategies in the Celebrity Cosmetics Industry: A Dual Case Study: Huda Beauty and Fenty Beauty.