Wella SWOT Analysis, Competitors & USP

Wella SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Wella, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Wella to benchmark its business & performance as compared to the competitors, and make strategic improvements. Wella is one of the leading brands in the FMCG sector.

The article below lists the Wella SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Wella SWOT Analysis:

SWOT Analysis of Wella

For Wella, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Wella Strengths

The strengths of Wella looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Wella :

1. Strong product development program which enables it to maintain a healthy pipeline of products
2. Strong distribution network with presence in stable and mature markets as well as growing, dynamic markets
3. Innovative, introduced Koleston – the first cream haircolor in the world
4. Support of P&G –benefits from P&G’s extensive distribution network and marketing strengths

Wella Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Wella SWOT Analysis:

1. Weak financial performance
2. Usage of chemicals in various hair care products which are taken to be harmful by some customers in the category(for all brands of hair color)
3.High service costs involved

Wella Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Wella SWOT Analysis:

1. High growth potential for male grooming products
2. Growth in emerging markets
3.Introduction of new products in its various categories

4. Extending the brand portfolio and at the same time focusing on the segment of higher priced international prestige fragrances

Wella Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Wella are as mentioned:

1. Growing demand for private label cosmetics and hair care products
2.Consumer protection issues regarding use of chemicals in various cosmetic products
3.Aggresive competitors and price wars

Wella Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 4 competitors of Wella:

1. L’Oreal
2. Schwarzkopf
3. Unilever
4. Garnier

Hence this concludes the Wella SWOT analysis.

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About Wella

Wella Overview
Parent Company	Procter and Gamble
Category	Personal Care brands- Cosmetics
Sector	FMCG
Tagline/ Slogan	Trends by Wella
USP	One of the largest hair care companies in the world
Wella STP
Segmentation	Higher priced segment of the personal care market
Target Group	Women and men seeking products for hair care and personal care
Positioning	Sets new trends with its innovative products

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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