Published by MBA Skool Team, Last Updated: February 27, 2021
PESTLE Analysis of Garnier analyses the brand on its business tactics. Garnier PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Garnier, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
Let us start the Garnier PESTLE Analysis:
The political factors in the Garnier PESTLE Analysis can be explained as follows:
A brand like Garnier which is present globally could be affected by the political environments of various countries and hence while planning its strategies it must take into consideration the dynamic factors. Not only the political condition of the country add present should be considered but also the political stability in the recent years could affect the company’s operations. The form of government and the ruling party’s interest could also affect the businesses’ growth aspects. A thorough analysis on the political situation would also help the company to predict the possible problems that it could face due to the politics. Garnier being a mass market cosmetics brand of a French cosmetics company, the relation of other countries with France would also affect its business in other nations. The level of corruption and acceptance of other nations brands in a nation may also affect its operations. For example, a country that encourages its citizens to buy national products and abandon international brands may be a cause of concern for the company and it may require to adopt to marketing strategies in order to establish themselves.
Below are the economic factors in the PESTLE Analysis of Garnier:
Operating in the FMCG industry economic factors like inflation rates, interest rates, foreign exchange rates and attitude towards savings may impact a consumer buying pattern.
In an economy where the inflation rates are high, the value of money might be reducing and people may be able to purchase less goods in the money available. In a situation like this people may prioritize to spend on their basic needs. Hence these factors can affect the consumers ability to spend on the products that are offered by Garnier. Another factor that can determine the costs of the company are the Labour market conditions. if the labor is available at cheaper rates then the cost of goods reduces and thereby garner can gain more profit. The financial market position of the brand also impacted sales as people may be talking about this brand when its shareholders are happy i.e., when the share prices are going up. Hence economic factors would play a major role in determining the future prospects of a company.
Following are the social factors impacting Garnier PESTLE Analysis:
The culture in a nation and the spending patterns and behavior of people are social factors that affect the sales of Garnier. Whether or not the culture of the society is positive towards the products that your brand is offering depicts whether the company would be able to sustain in the market or not. The class distribution and the age group of people present in the society has a lot to do with the marketing strategies that the company needs to follow to attract maximum consumers. The company also needs to be fully aware of the health standards needed to be maintained and educational background of its potential customers in order to pitch to them the products in the best possible manner. The acceptance of online shopping in the society must also be analyzed and any measures should be taken to promote the brand online as well as offline for different set of consumers.
The technological factors in the PESTLE Analysis of Garnier are mentioned below:
Like mentioned above the acceptance of online shopping would also give rise to the need of online marketing and hence the products must be marketed on social media using various techniques and also encouraging collaborations. This is because influencer marketing has a great future that would in turn boost up the growth prospects of the company. Technology has been changing at an ever-increasing pace and adapting to the newest technologies maybe very advantageous for companies as they would reduce costs thereby increasing profits in the long run.
The product range that Garnier offers might also need modifications or innovations due to arising of new technologies and hence the company should invest in research and development to sustain in the industry.
Following are the legal factors in the Garnier PESTLE Analysis:
Legal factors like copyrights, patents, data protection and intellectual property law are some legal factors that could influence the form of business from one nation to another. Antitrust laws applicable on the industry must be studied properly so as to operate accordingly and avoid any legal actions towards the company. As a part of the FMCG industry Garnier must also keep in mind environmental laws while disposing the wastes on product expiry. Two other laws that could have a great impact on the company’s operations are employee protection law and consumer protection law. The employee protection law ensures that the employees of the company work in a safe workplace and do not go through any discrimination. It also ensures that they receive what they deserve in the form of wages or additional incentives. The consumer protection laws are for the consumers to feel safe about the products that they are using and it allows them to take action against the firm if the product harms them in any manner. Hence the legal factors associated to a country must be taken care of by the company.
In the Garnier PESTLE Analysis, the environmental elements affecting its business are as below:
The products that Garnier sells comes in small plastic packaging in most cases. This should be avoided as in when it is possible and recyclable or reusable modes of packaging should be used. The company should also use renewable sources of energies in its factories. Renewable sources of energy maybe expensive but various nations provide financial help to Inculcate such measures. This could be done in several ways like procuring solar plants, windmills or any other source of energy that would prevent resource depletion.
Such eco-friendly measures not only lead to lesser degradation of natural resources but also ensures lesser pollution. Different industries in different nations have set standards of environmental protection that are needed to be followed and company should aim to abide by the standards at any cost. Taking possible steps towards Environmental Protection leads to a positive brand image in the minds of its consumers which for the help the company to build its goodwill.
To conclude, the above Garnier PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
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