MAKING CHINA BEAUTIFUL: SHISEIDO & THE CHINA MARKET
I. Problem The Shiseido company is weak in understanding the market needs and is looking to create a strategy that will both increase global market share and reap success in the high potential Chinese market.
II. Alternatives/Recommendations 1) Invest heavily in market research section in order to create market-driven products and services. a. Shiseido needs to consistently stay one step ahead when it comes to industry trends to establish itself as a unique brand as opposed to an imitator. The company is strong in the development of innovative, quality products, but needs to be able to attune their offerings to be able to better fit the market. b. Consumer tastes
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vi. Con: Overly segmented concentration draws away from putting resources towards corporate branding efforts. 4) Invest fully in expanding the Mens product lines, as the mens cosmetics industry has high growth potential. a. Pro: The global male skin-care market, reportedly worth $193 million in 2009, is growing at a substantial rate of about 16% annually. b. Con: It may prove to be difficult to reach this market. The POS and messaging should be different for men. Men are generally lacking in knowledge of cosmetic products and therefore need more service and instruction. i. One successful advertising venture was with one of Tokyo’s most popular young actors, Satoshi Tsumabuki, who was chosen to appear in TV commercials. 5) Distribute sub-brands in lower-priced channels like drug stores and discount stores. j. Pro: This strategy is in response to the trend in the U.S. and if proven successful for Shiseido can be used in the future when emerging countries experience changing preferences. Sephora boutiques have opened in JCPenney stores and L'Oreal's La Roche-Posay and Vichy brands have been sold at CVS, for example." k. Con: With lower price points, the company reaps lower profit margins, leaving fewer resources for R&D and other business ventures. l. Con: The brand has a high value for quality, and high-quality products cannot be