This master thesis is focusing on the Danish company Matas and aims to present a proposal on how the company can solve the current challenges related to descending development and the lack of growth. The proposal is based on a combination of an external and an internal analysis which aims to cover the strategic situation of Matas. The analysis will contribute to identifying threats and possibilities from the surroundings as well as strengths and weaknesses of the company.
The thesis finds that Matas as well as the beauty and skin care industry in general is quite challenged by increasing online sale and heavy price competition. Moreover, it is found that the customers demand value for money and seek more sustainable and natural products. Furthermore, the analysis indentifies opportunities like increasing demand for convenience and sustainable products as well as an increasing demand for more personalized customer experiences, where new technological solutions might be helpful.
The analysis finds that the educated staff in the shops of Matas is a sustainable competitive advantage (SCA) for the company. Furthermore, Matas holds strong capabilities and competencies in distribution where the company is capable of reaching all the citizens through the 270 stores located in Denmark as well as a highly effective delivery service. Moreover, further strength of Matas are linked to the brand, product development skills, and the loyalty program with more than 1.4 million active users.
The analysis leads to three proposals on how to solve the challenges. First proposal includes that Matas can use technology to offer a better and more personalized customer experience. Another proposal is to decrease the number of physical stores, because of the increasing online sales and therefore a declining store profitability. Finally, Matas can develop a new product line as a response to the increasing demand for more sustainable and natural beauty and skin care products.
The thesis concludes that Matas should develop a new product line called Matas Grønne Striber as an extension of their current private label brand Matas Striber. The new product line is targeting those customers who decide to go elsewhere for more sustainable and natural products. The product line will be available to the customers in all distribution channels of Matas. Furthermore, the proposal will activate most of Matas' strong capabilities and competencies.
|Educations||MSc in Economics and Marketing, (Graduate Programme) Final Thesis|
|Number of pages||79|