Ulta Strengths And Weaknesses

Strengths

Ulta’s loyalty program plays as a major strength for the company. In its most recent 10K report, Ulta has “approximately 23 million active Ulta Beauty guests” on it’s Ultamate Rewards program that “represent more than 90% of our annual total net sales” (10K report). The loyalty program, along with Ulta’s Customer Relationship Management (CRM) system, creates a more personalized marketing strategy for the company. The loyalty and rewards program helps generate repeat business from customers.

The wide variety of products sold by Ulta represents another strength for the company. Ulta’s slogan is All Things Beauty, All in One Place. The company offers “more than 20,000 products from over 500 well-established and emerging beauty brands across all categories and price points” in order to “appeal to a wide range of customers including women of all ages, demographics and lifestyles” (Company Overview). In addition to the products sold, Ulta also offers beauty services including hair salon, skin treatments, and nail services. This variety attracts many customers who want to satisfy all of their beauty needs in one location.

Weaknesses A weakness faced by Ulta is that its

There is a growing trend of women, the primary demographic of Ulta and other companies in the beauty industry, taking a more minimalist approach to makeup use. Other trends are often brought about by beauty bloggers. According to Hoovers, “Trends and fads drive sales for many beauty products, and consumer preferences and fashion trends can be unpredictable. For example, a celebrity endorsement can create sudden demand for a particular product in a short period, but as the celebrity fades from the limelight, sales for associated products can diminish” (Hoovers Industry Challenges). If a company is not able to forecast demand trends, it could be caught behind the competition and lose valuable