Assignment 1 Case analysis - Tarte Cosmetics PDF

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Case analysis on organisation of choice. Tarte Cosmetics...

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Assignment 1: Case analysis TARTE COSMETICS

200919: Innovation and Professional Practice

Introduction

Innovation is to find new ways to do things, it involves changing processes, creating more effective products and expanding on existing ideas. The key to understanding innovation is identifying the difference between innovation and invention, as it's not focused around opening new markets but elaborating on established ones. “Social innovation is the process of developing and deploying effective solutions to challenging and often systemic social and environmental issues in support of social progress”(Stanford Business,2020). Tarte Cosmetics is a well-known organisation that recognises the importance of socially and environmentally responsible innovation; Tarte Cosmetics has been a cruelty-free brand for 20 years and focuses on vegan + eco-friendly makeup and skincare, their vision heavily involves sustainability, environmental awareness, ethical and accountable consumerism. Critical Analysis 'Companies achieve competitive advantage through acts of innovation’(Porter,1990), it is important for business to maintain ongoing innovation to stay relevant; being socially and environmentally responsible during this process enables business to do so. By addressing a social or environmental issue it attracts potential business from the targeted audience; increasing sales and profits directly ensures business stability. “Business sustainability is the practice of operating a business without impacting the environment negatively”(Maryville,2020) and environmentally aware business takes into account more than just profits but also the impact they have on the environment and society. Businesses that consider their environmental footprint are able to make business changes that prevent negative impact on the environment and help create a healthy planet, by doing so it “helps construct an environment in which the business can thrive (Maryville, 2020). Veganism is a popular lifestyle choice across the globe however this does extend outside an individual's diet and onto what products they may wear, what daily products they use or what companies they choose to shop with. Till this day mainly makeup brands are still using animal by-products and participating in animal testing for their products; with a limited amount of companies that carter to these needs, Tarte Cosemtics were able to overcome this social and environmental issue by ensuring their products are 100% cruelty free and have become one of the few cosmetics brands that offer vegan friendly beauty products. With a large population of people living a vegan lifestyle or prefer to use natural products, Tarte have been able to offer a solution to these masses and cater to their needs whilst being environmentally responsible. Many competing companies including well known brands like Maybelline,Nars and Estee Lauder are still using animals by products such as gelatin,lanolin,ambergris, tallow etc Tarte have effectively been able to replace the use of these with naturally derived ingredients. Following a beauty movement of ‘clean beauty’,

Tarte cosmetics have ethically sourced ingredients from across the world to replace the use of animal products and “bad stuff like parabens, phthalates, sodium lauryl sulfate, triclosan, & gluten”(Tarte,2020). The innovative solution includes the use of amazonian clay, acai berries, vitamin c, maracuja oil etc all which are considered ‘ high performance naturals’; which have sustainable sourced to fulfuil the company’s vision of “never have to compromise the quality of your makeup for the health & beauty of your skin” (Tarte,2020). Evaluation A common challenge faced by makeup enterprises within the industry is providing a full shade selection of face makeup that caters to all skin colours and skin types. Tarte has previously failed to ensure the launch of new products are inclusive of all so despite being environmentally responsible and providing an alternative for a certain customer base, they have failed another significant customer base's needs. The launch of Tarte’s most popular product ‘Tarte shape tape concealer and foundation’ was released with 15 shades and majority were favourable to lighter skin complexions. In 2018, the brand was criticised for being ‘white-washed’ (Bargona,2018), this was reflected through their lack of diversity on social media platforms and their product range; many beauty influences spoke out in backlash of this social issue. Competing enterprise ‘Fenty Beauty’ which was founded in 2017, prior to the release of the ‘Shape Tape’ launch from Tarte, was able to release a full 40 shade selection range for their first release regardless of performance concerns and profit return. After Fenty Beauty, being a new and unestablished brand was able to address this concern and provide a solution that attracted plenty of positive reviews, this set an expected standard for all companies within the industry. After the feedback regarding inclusivity and diversity being key social issues within the industry, Tarte addressed the concern and furthermore released the expected 40 shade selection. Whilst Tarte aims to reduce their environmental footprint, if they continue to invest the time and money to ensure they are catering to all individuals they can maintain business sustainability. Tarte Cosmetics scopes the globe for new and natural ingredients to incorporate within upcoming product releases, the Tarte team also participates in community work during the travels so if they take the time to communicate with potential customers to understand the importance of diversity within the company, they can review future releases with consideration to this.

Conclusion

Tarte contributes to many charity events and environmentally awareness campiagns that establishs them as a cruelty free and environmentally friendly brand, this strong image helps shape their positive brand image. The company prides themselves on their sustainable and innovative take on beauty and providing a healthy option for the customers and the planet, this different approach to the beauty world is what helps Tarte Cosmetics be a sustainable business. The positive response from their customer bases helps them grow as a business, to seek and provide more creative beauty products and continue their non-for-profit charity and environmentaly work to give back to the community and the planet.

Reference

about tarte. 2020. about tarte. [ONLINE] Available at: https://tartecosmetics.com/en_AU/explore/about-tarte/. [Accessed 12 October 2020]. Harvard Business Review. 2020. Why Sustainability Is Now the Key Driver of Innovation. [ONLINE] Available at: https://hbr.org/2009/09/why-sustainability-is-now-the-key-driver-ofinnovation. [Accessed 12 October 2020]. Insider. 2020. Tarte Cosmetics faces backlash after release of its new foundation - Insider. [ONLINE] Available at: https://www.insider.com/tarte-cosmetics-shape-tape-foundationrange-2018-1. [Accessed 10 October 2020]

One Green Planet. 2020. 10 Common Cosmetic Ingredients That Are Derived From Animal Products - One Green Planet . [ONLINE] Available at: https://www.onegreenplanet.org/animalsandnature/common-cosmetic-ingredients-derivedfrom-animal-products/. [Accessed 12 October 2020]. Maryville Online. 2020. Going Green: Benefits of Sustainability in Business | Maryville Online. [ONLINE] Available at: https://online.maryville.edu/blog/importance-of-environmentalawareness-when-running-a-business/. [Accessed 12 October 2020]. Stanford Graduate School of Business. 2020. Defining Social Innovation | Stanford Graduate School of Business. [ONLINE] Available at: https://www.gsb.stanford.edu/facultyresearch/centers-initiatives/csi/defining-social-innovation. [Accessed 11 October 2020]. Tidd, J & Bessant, J 2013, Managing innovation: integrating technological, market and organizational change, 5th edn, John Wiley & Sons Ltd, Chichester, West Essex. Tidd, J & Bessant, J 2015, Innovation and entrepreneurship, 3rd edn, John Wiley & Sons Ltd, Chichester, West Essex. What is innovation? | business.gov.au. 2020. What is innovation? | business.gov.au. [ONLINE] Available at: https://business.gov.au/change-and-growth/innovation/what-isinnovation. [Accessed 10 October 2020]....