SWOT ANALYSIS

Strengths
• Without a doubt, CARE COSMETICS is one of the largest Beauty and
Cosmetics Company in PAKISTAN. CARE is completely focused on
Personal care & Beauty products, which is the reason for the
phenomenal success of the company in this sector.
• Fantastic product and brand portfolio
• Continuous R & D – When it concerns beauty and cosmetics, then
only pure manufacturing is not the way to go. You have to involve
cosmetology, dermatology, skin care, sun protection and various
sciences into it. The effect of a cream under hot and cold conditions
can be very different. Hence, there is research to ensure the safety of
their consumers and also to keep trying for new products.
• High quality of products – A brand image is established only after the
consumer purchases the brand and is happy with the quality of the
products and then repurchases the same brand again and again. For
example CARE honey lotion and heel cream.
• Strong integrated marketing communications – Each product in Care
cosmetics is known for its integrated marketing communications they
use several channels to convey the campaign messages to increase
effectiveness and covert strangers into customers.
• Widespread Distribution
• Social responsibility by not using harmful chemicals like mercury even
if their whitening cream sales are getting low.
Weaknesses
• Profit margins are lower – Higher investments in manufacturing,
quality insurance as well as the expenses of distribution means that
the profit margins of CARE are a bit lower as compared to
competitors. However, although this has been a weakness, the quality
of the products is best so this weakness has to be taken with a pinch
of salt.
• NO or less use of social media for promotion and advertising in
history of care cosmetics
Opportunities
• Market potential – The market potential of personal care and beauty items
is only going to increase.
• Product mix expansion – Expanding the product lines as well as introducing
new products in the product mix will result in the complete product mix
expansion. Some new products are to be introduced which includes
shampoo, conditioner, facewash, body wash and glycerin.
• Demand for cosmetics without mercury will increase their sales because
government is about to ban those chemical containing products.
• GST are imposed, small manufacturers cannot afford those taxes so there
will be less contract manufacturers.
• Trading shop like body shop is also starting soon.
Threats
• High competition, due to contract manufacturers and formula
creams.
• Cash crunch - Economy problems are always existing in one country
or another, as a result of which, cash inflow from that country stops.