Sally Beauty SWOT Analysis, USP & Competitors

Posted in FMCG, Total Reads: 1036
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SWOT Analysis of Sally Beauty with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Sally Beauty

Parent Company

Sally Beauty Holdings, Inc.

Category

Professional beauty supplies

Sector

FMCG

Tagline/ Slogan

Distinctly You

USP

Leaders of the beauty supply industry with 50 years of experience

STP

Segment

Salons, beauty professionals and consumers

Target Group

Big salons and professionals

Positioning

Distributor of professional beauty supplies

SWOT Analysis

Strengths

1. Sally Beauty is the largest professional beauty products distributor in the US 
2. It has presence across multiple channels like retail, wholesale, e-commerce
3. High customer royalty and conversion of single user into dedicated customers by providing differentiated customer value proposition 
4. It offers competitive pricing, convenient store location and broad selection of professional beauty products

5. Offers a loyalty program for discounts on products to its members

6. Sally has nurtured its growth through inorganic growth strategy by acquiring over 40 companies in the last 10 years

Weaknesses

1. Sally beauty is dependent on a few manufacturers for significant portion of the products it sells

2. The company has to maintain high stock levels which could be problematic in case of change in customer trend

3. Unpredictable and high fluctuation in store sales

Opportunities

1. Global investments to expand its international footprint, currently it serves only North and South America and Europe 
2. Invest into e-commerce to and gain a foothold in the online shopping market for beauty products

3. Marketing on social media will help it gain a greater foothold, and increasing customer loyalty

Threats

1. Very low barriers to entry has led to a number of new players entering into this segment

2. Product diversion could lead to reduction in exclusivity of the company’s brands and may have an adverse impact on the company's revenues
3. Rising labor costs could impact margins and increase the operational costs too

Competition

Competitors

1. L'Oreal S.A.
2. Wal-Mart Stores, Inc.
3. Ulta Salon, Cosmetics & Fragrance, Inc.



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