UNIVERSITY OF LUZON

College of Accountancy
Dagupan City

I. Company Profile and Background

Nina Ellaine Dizon, founder and CEO of Colourette Cosmetics,

establish this home-grown local makeup brand on October 2015. Their

official slogan “Be it.” and mantra “Self-Acceptance. Self-Love. Self-

Empowerment.” led a community of “Boss Babes” that involves

advocating for women empowerment, acceptance, diversity, and breaking

the stereotypes when it comes to beauty standards. Their campaign

encourages women (including the LGBT Community) to express

themselves confidently by using their products without altering or

changing how the consumers look.

Colourette Cosmetics specializes in multi-function makeup that can

be used in different areas on the face such as eyes, cheeks, and lips. They

create great quality products with an affordable price, focusing on the

Modern Day Filipina. Colourette Cosmetics has various types of color

shades on their products particularly the shades which suit best for

Morena skin color. As a result of, a lot of social media influencers and

celebrities engaged on this brand and the campaign has been continuously

growing.

At present, a lot of businesses including Colourette Cosmetics, have

been going through income and operating losses because of the strike of

Covid19 disease. While the pandemic resulted in a lot of casualties, people

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 UNIVERSITY OF LUZON
College of Accountancy
Dagupan City

spend on beauty products regardless of economic uncertainty (A.

Eugenio, 2020) due to the “lipstick index” in the 2000s that showed not

even the economic downturn could stop purchasing beauty products.

Online marketplace and social media has become a huge impact to

Colourette Cosmetics in operating their business successfully whilst the

strike of Covid19 disease.

II. Statement of the Problem

This case analysis aims to determine the strategies of Colourette

Cosmetics including its strategies implemented towards the current

pandemic situation. Specifically, it aims to answer the following questions:

1. What are the strategies implemented by Colourette Cosmetics in

addressing the current pandemic situation?

2. What strategies led the company achieved organizational success?

III. Areas of Consideration

This case study used two kinds analytical business tool that will give a

clear understanding of the factors related to strategic management of

Colourette Cosmetics.

a. PESTLE Analysis

i. Political Factor

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UNIVERSITY OF LUZON
College of Accountancy
Dagupan City

 Wage legislation- minimum wage and

overtime

 FDA Cosmetic Product Notification

 Pricing regulations- regulatory mechanism for

Consumer Goods

ii. Economic Factor

 Demand of products

 Differential pricing according to different

locations

 Skill level of workforce in Personal Products

Industry

iii. Social Factor

 Brand loyalty

 Demographics and skill level of the

population

 Cultural shift among beauty consumers

iv. Technological Factor

 24 hour access of website and other online

shops

 Product innovation

 Technological impact on product offering

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 UNIVERSITY OF LUZON
College of Accountancy
Dagupan City

v. Legal Factor

 Data protection – privacy policy through Free

Privacy Policy

 Consumer protection law

 Anti-trust law in Personal Products Industry

vi. Environmental Factor

 Lighter and virtually risk- free product

packaging

 Air and water pollution regulations in Personal

Products Industry

 Recycling and waste management with the use

of paper bags instead of plastic bags

b. SWOT Analysis

i. Strength

 Improved product quality (long lasting and

non-drying formula)

 Strong market penetration and brand loyalty

 Social media presence

ii. Weaknesses

 Chemically induced ingredients

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 UNIVERSITY OF LUZON
College of Accountancy
Dagupan City

 Some products are not suitable for sensitive

skin

 Products are not plant-based

iii. Opportunities

 Consumer preference over local products

 Increase in demand of cosmetic products

 Increase in number of celebrities and social

media influencers endorsers

iv. Threats

 Intense competition from well-known

companies globally

 Increase in cost of raw materials

 Wide range of substitutes

IV. Analysis & Interpretation of Data

With the complexity of information available on the internet,

Colourette Cosmetics found new possibilities to sell their products on

global networks even in this time of pandemic. Social networking sites

have been proven to be perfect platforms for communications and this

brand manages to operate smoothly because of the main strategies that it

developed which are the use of Online Market Platforms, Social Network,

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 UNIVERSITY OF LUZON
College of Accountancy
Dagupan City

and Influencer Marketing. Since the implementation of General

Community Quarantine, Colourette Cosmetics implemented strict policies

and guidelines when purchasing their products on both online

marketplace and physical stores. The difficulty of purchasing cosmetic

products is not an easy tasks for consumers. As a result, Colourette

Cosmetics provided an Instagram filter that lets consumers to virtually

visualize the color or shades they want to purchase online. On the other

hand, physical stores of Colourette Cosmetics removed their testers,

requiring consumers to rely on images provided at the shop.

This 5 year company continues to increase their product line up

and its stream lining on production to make sure that there are steady

stocks of products. Expansion of retailers nationwide and warehouses are

also continuously developing. The main strategy that led Colourette

Cosmetics’ success was the products they offer which is made by Filipinas

for Filipinos that made a trademark on consumers. Their products suited

the Filipino Market and also it is starting to gain recognition from foreign

countries because of their widespread marketing strategies and of course,

their product quality.

V. Conclusion

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 UNIVERSITY OF LUZON
College of Accountancy
Dagupan City

VI. References

Caedo, T. (2018, August 3). “Colourette’s Founder Talks about Starting the

Local Beauty Brand”. Retrieved from

https://www.cosmo.ph/beauty/makeup/colourette-cosmetics-

business-a983-20180803

Frue, K. (2018, April 4). “PESTLE Analysis in Beauty Industry”. Retrieved

from https://pestleanalysis.com/pestle-analysis-in-beauty-

industry

Bhasin, H. (2018, December 9). “Swot Analysis of Maybelline”. Retrieved

from https://www.marketing91.com/swot-analysis-maybelline

Eugenio, A. (2020, September 13). “Why Does Lipstick Sell During Times of

Crisis?”. Retrieved from Why Does Lipstick Sell During Times of

Crisis? (reportr.world)

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UNIVERSITY OF LUZON
College of Accountancy
Dagupan City