SWOT PROFILE OF Bellezza

SWOT analysis
SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separates it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat) (Marketing Strategy, 1998). The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats.

Internal Analysis
The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as: 1) Company culture, image. 2) Organizational structure. 3) Key staff. 4) Access to natural resources. 5) Position on the experience curve.
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SWOT PROFILE OF Bellezza

6) Operational efficiency, capacity. 7) Brand awareness. 8) Market share. 9) Financial resources. 10) Exclusive contracts. Patents and trade secrets The SWOT analysis summarizes the internal factors of the firm as a list of strengths and weaknesses.

External Analysis
An opportunity is the chance to introduce a new product or service that can generate superior returns. Opportunities can arise when changes occur in the external environment. Many of these changes can be perceived as threats to the market position of existing products and may necessitate change in product specifications or the development of new products in order for the firm to remain competitive. Changes in the external environment may be related to: 1) Customers. 2) Competitors. 3) Market trends. 4) Suppliers. 5) Partners. 6) Social changes. 7) New technology. 8) Economic / Political environment. The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats.

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SWOT PROFILE OF Bellezza

BENEFITS OF SWOT ANALYSIS
A SWOT Analysis is conducted by the company so that it is able to position itself to take advantage of particular opportunities in the environment and to avoid or minimize environmental threats. In doing so, the organization attempts to emphasize its strengths and moderate the impact of weaknesses. The analysis is also useful for uncovering strengths that have not been fully utilized and in identifying weaknesses that can be corrected. Matching information about the environment with the organization's capabilities enables management to formulate realistic strategies for attaining its goals.

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SWOT PROFILE OF Bellezza

SWOT PROFILE OF Bellezza

STRENGTHS
1. Strong Market Research (door to door sampling is done once a year inurbane and rural areas). 2. Many variants (Almond Oil, Orchid Extracts, Milk Cream, Fruit Extracts, Saffron, Sandalwood Oil, and Honey to name a few). 3. Strong sales and distribution network backed by HLL. 4. Strong brand image. 5. Positioning focuses on the attractive beauty segment. 6. Dynamically continuous innovation of the product and brand rejuvenation new variants ( Aromatic Glow and Chocolate Seduction and Bellezza. White Spa bodies wash). And innovative promotions (22 carat gold coin promotion Chance Hai). 7. Perceived to have high value for money (strong brand promotion but relatively lower price which is a winning combination in the popular segment). 8. Though it is in popular segment, it is having mass appeal/market presence across all segments (15% of the soap market captured by Bellezza (Sales /volume). 9. Unique advantage of having access to resources and assets of HLL.
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SWOT PROFILE OF Bellezza WEAKNESSES

1. Bellezza is mainly positioned as beauty soap targeted towards women, hence it lacks unisex appeal. 2. Usage rate/ wear rate is high and is generally mushy and soggy. 3. Some variants like the sunscreen, International variant did not do well in the market. 4. Certain advertisements like the recent one with Sadia Imam resulted in controversial interpretations of the message of the advertisement and lead to some loss of focus (of message of the advertisements). 5. Stock out problems - replenishment time is high in semi-urban/rural areas.

OPPORTUNITIES
1. Soap industry growing by 4% in India. 2. Beauty segments Compounded Annual Growth Rate (CAGR) is very high. An indication of this is that Fair and Lovelys segment is increasing at a fast rate - Bellezza must reinforce its presence in the beauty segment. 3. More promotions like price-off and samples. 4. Retentive strategy required as the soap segment is in the mature stage of its product life cycle. 5. Line extension probably with more variants catering to the beauty segment like natural, herbal soap etc. 6. Liquid body wash is currently in the growth stage Bellezza should come out with more variants in this segment.

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SWOT PROFILE OF Bellezza THREATS

1. New entrants/local competitors/MNCs would increase the competition (Camay, P&G). 2. High internal competition Pears also catering the beauty segment (also from HLL stable). 3. Excessive dependence on beauty segment makes Bellezza vulnerable to changing customer tastes. 4. Technological change makes the existing products obsolete Bellezza should focus on technological innovations like Body Wash.

References:
http://www.google.com.pk/ http://www.scribd.com

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