Essay on Us Nail Polish Industry Analysis
Introduction and Background
The US nail polish industry has a total revenue of $1.1 billion and a profit of $118.4 million in 2012, with an annual growth of 2.3% in 2007-2012 and a projected annual growth of 3.3% from 2012-2017 (Panteva). The nail polish industry is able to survive the recession because they are sold at low prices, starting at a retail price of lower than $5 to $10 for professional grade nail polishes at drugstores (Panteva). Unlike other consumer goods, consumers are not as inclined to limit their purchase of nail polish, due to low prices.
Despite the recession that significantly the economy, the nail polish industry was almost unaffected and has shown a …show more content…
OPI Products is a nail polish manufacturer located in North Hollywood, California and was one of the first companies in the industry to limit sales to professional salons (Hoovers). OPI is associated with luxury and professional manicures and has a catalogue OPI manufactures premium quality nail polish that is strong and durable and is used in most nail salons. In addition, OPI has a variety of colors and product lines and the colors have fanciful names, such as Comet Loves Cupid or I’m Indi-a Mood for Love (Hoovers).
Marketing is a key success factor for the nail polish industry, which is highly competitive and saturated. Therefore, advertising and brand awareness is essential to maintain and gain market share. To gain awareness and sales, OPI came up with a plan to promote the brand through word of mouth. OPI partnered with SheSpeaks, which is the leading word of mouth marketing network to target female consumers. The marketing campaign involved 9,000 SheSpeaks members sampling OPI nail polish (Maffin). The word of mouth campaign generated approximately 800,000 conversations and 120,000 units were sold (Maffin). OPI also employs celebrity endorsement to boost brand awareness. OPI collaborates with celebrities and release a celebrity nail polish collection, such as collaborations with Mariah Carrey, Katy Perry and Justin Bieber. OPI celebrity collections are a success since consumers hold