Sally Beauty SWOT Analysis

Published in FMCG category by MBA Skool Team

Here is a detailed SWOT analysis of Sally Beauty covering strengths, weaknesses, opportunities and threats.

Sally Beauty 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

Above are the strengths in the SWOT Analysis of Sally Beauty. The strengths of Sally Beauty looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Sally Beauty 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

These were the weaknesses in the Sally Beauty SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Sally Beauty 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

Above we covered the opportunities in Sally Beauty SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Sally Beauty 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

The threats in the SWOT Analysis of Sally Beauty are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Sally Beauty SWOT analysis.

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About Sally Beauty

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Sally Beauty Overview
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

Sally Beauty STP
Segmentation

Salons, beauty professionals and consumers

Target Market

Big salons and professionals

Positioning

Distributor of professional beauty supplies


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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