Weleda case study

Weleda since 1921

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Table of contents

1. Executive summary
2. Situation Analysis
3. Marketing Objectives
4. Marketing evolution (2018-2021)
5. Financial Plan

1. Executive summary

Weleda is a company that produces Organic cosmetics. Founded in 1921 by Rudolf Steiner Weleda produce Cosmetics without mineral oil, silicone, preservatives, dyes or synthetic fragrances.

The Weleda Group is present in more than 50 countries and on all continents. Its headquarters are located in Switzerland, in Arlesheim, near Basel. It has nearly 1900 employees, including nearly 400 in France.

The 3 production sites for the Group are Germany, France, and Switzerland. The approximately 370 different plant species used by Weleda come from all over the world. Their mission is to produce cosmetics in respect with nature this is why all their packages are recyclable.

Since 1921 the industry of organic cosmetics has exploded and Weleda faces a large number of competitors. New companies have entered the market but main group and cosmetics leader has started to sell Organic cosmetics. To face this competitions Weleda will need to modernize the brand image by increasing their impact on social media, to open their market to a new generation and augment their economic growth in Europe.

1. situation analysis

The market for green products is booming all over the world in a variety of industries, from food to fashion to cosmetics and else. (Marie-Cécile Cervellon , 2011)

The global market for organic cosmetics across the globe is projected to grow at a CAGR of over 13% during 2016-2021.( Global Organic Cosmetics Market Forecast & Opportunities, 2021) which creates interesting opportunities for firms internationally (Tyburski, Zakovska- Biermans, 2003).

By doing a SWOT analysis we will be able to understand the weakness of Weleda and acknowledge the opportunity of the industry.

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Figure 1 : source eurostat

Weleda is the pioneer of organic cosmetic, however, since 1921 this industry has expanded considerably. And over the years many competitors have appeared.

Many large companies have created a raw of organic cosmetics products which represent competitors. « larger firms may concentrate on the mass Market or on products requiring costly technical or Marketing Support. These may be areas in which large firms have some comparative advantages. » (Shaw and Sutton, 1976).

To understand competition of Weleda we distinguished two types of competitors. Direct, independent companies with the same criteria as Weleda and indirect competitors, large multinational companies that dispose of more means than Weleda.

• Direct competitors.

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• Indirect competitors

Leaders of the cosmetics industry such as Loréal, Yves Rocher, Sephora as started their Raw of organic product. They sell their product in a way more efficient capacity, as they have more customer, stores, retailer etc… However, they do not target the same customer than Weleda. This is why they represent indirect competitors.

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1. Marketing Mix

Weleda faces a large number of competitors today. In this marketing plan, we will see how Weleda can face this competition by modernizing her brand image and impose its pioneer image in the market.

This is why First of all Weleda need to increase their presence in Social Media. Social media marketing which uses social networks, to enable information diffusion and relationship building (Cheung & Lee, 2010)

Main competitors of Weleda have more impact on Social Media, this enhances young customer to buy their product. Companies that have been created recently have more abilities to use this resource.

1. Price

Organic products are mainly more expensive than noun-organic products. However, Weleda products have a superior quality than most of their competitors. Even if their products are more expansive than their competitors Weleda strategy prefer quality. If at equilibrium some would be consumers were not served, the high-quality firm could raise its price, provided it reduces simultaneously, in due proportion, its sales so that a low quality firm continues not to mimic it. (Nada Ben Elhadj, 2017)

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