Viewed through a similar lens, the global competitive landscape presents a different picture; 40% of the market is controlled by five main players. They are L’Oreal, Proctor & Gamble, Estee Lauder, Avon, and Shiseido. These major players gained their significant market share mainly through strategic acquisitions. Angie recognizes that competing with such companies as L’Oreal and Proctor & Gamble will not be easy, but she believes she will be able to enter the U.S. market successfully – at least on a small scale at the beginning.
FORGING AHEAD: YOYO LIP GLOSS’ COMPETITIVE ADVANTAGE In 2004, Angie incorporated a company called Peppermints Salon, Inc. Peppermints Salon is engaged primarily in manufacturing and distributing cosmetics to wholesalers, retailers, and direct to consumers. This company owns and operates YOYO Lip Gloss.
The unique design behind YOYO Lip Gloss gives Angie a competitive advantage since no other lip gloss currently provides this product’s ease of use. Initially, lip gloss served as a purely functional product. In recent years, however, the product has undergone aesthetic transformations, expanding it into the category of a fashion accessory. Sellers became aware of new consumer requirements for lip gloss and met these demands by changing the traditional shape of the tube and encasements, using obnoxious colors and wild flavors, and adding shine and glitter for appeal. However, current lip gloss sellers have not quite introduced a lip gloss that combines the aesthetic uniqueness along with fashion oriented characteristics that allow ease of use and accessibility. YOYO Lip Gloss does just that; it serves as a fashionable retractable lip gloss that sits at the hip for easy access. The string extends three-and-a-half feet and retracts back to the hip (See Exhibit A - What is YOYO Lip Gloss?).
Targeting the female teen market, Angie decided the initial launch of her product will include five different reels and lip gloss colors each with a yummy, high sparkle flavor (See Exhibit B – Colors and Flavors). The different combinations are:
Raisin’ the Roof Red Pistle Packing Pink Benjamins Buttaluv Brown