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Discuss the case of Cosmetics and solve the three questions.
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L/O/G/O
Cosmetics Cosmetics Giants Segment Giants Segment
the Global the Global Cosmetics Cosmetics
MarketMarket
Content
Background
Arnold’s Framework
BRIC Countries (Brazil , Russia, India, China) generated 54/81% of global cosmetics sales growth.
Women’s Preferences for Cosmetics and Beauty Care in
Different Countries.
Global Segmentation
Demographic-
Purchasing Power
Psychographic- Culture
Ethnic-Religion
Benefit-Climate
Culture~India~
• Beauty-expression of godliness
• Eyeliner, jeweled and dyed bindis, henna-stained hands and feet defined beauty for centuries
• Enter Bollywood: Fair complexion, big expressive eyes, long shinny hair
• Shimmer, gloss
Religion~Saudi Arabia~
• Women in Predominantly Muslim regions “cover up” for modesty
• Middle East, Parts of Africa
• The eyes have it-Dark kohl , mascara, eye shadows
Climate~ Russia ~
•Very cold temperatures in winter•Darker skin “ Tan” —associated with health and wealth• solariums and bronzers are popular
~Japan~•Hot and humid•Skin whitening•UV-protection•Compact foundation –longer lasting coverage
Purchasing power~China~
“Buying a Shiseido product is sometimes a status symbol” -Harumi Branch 2012
The Most
Beautiful Face in the
World? It’s Yours!
- Estée Lauder
Estée Lauder• Estée Lauder founded her company in 1946
armed an unshakeable belief: that every woman every woman can be beautiful.can be beautiful.
• This simple notion has literally changed the face of beauty business for past 60 years.
Estée Lauder’s Strategy for China. Premium brands vs. mass-market brand
• Estée Lauder formally entered China in 2003, but took 11 years for its 15 brands to mature and profit in Chinese market.
• Concentrated Global Marketing Strategy– In cosmetics, well used
this approach successfully to target the upscale, prestige segment of the market.
• Positioning - Quality and Price– high fashion/quality and high price to good value at a reasonable
price.
• Most of Chinese are price sensitive but they are willing to pay relatively expensive for quality product.
• Estée Lauder is not only providing high quality product, but also fulfills customer’s emotional satisfaction and socio economic status.
Estée Lauder’s Strategy for China. Premium brands vs. mass-market brand
$500 $500 million million
L/O/G/O
The best positioning strategy for Shiseido as it
expands in Asia. High touch? High tech? Both?
• Shiseido’s positioning in Asia-GCCP strategy
• High- tech products & High-touch products– Both products are
associated with high levels of customer involvement and by a shared “language” among users
High-touch Global Consumer Positioning
-Asian specific culture put more emphasis on skin care than color cosmetics, to confront dark spots and anti-wrinkles. Women think white skin is associated with wealth -Shiseido main focus is to develop whitening products, the products attracts Asian peoples’ personal preference, improve their self-image and represent wealth
- Build trust, brand image and attracts more Asians by using beauty experts to communicate with users, include their friends and families
High- Tech Global Consumer Positioning
-Shiseido has strong global brand image already and should keep doing research on their whitening products and anti-wrinkle products
- Use technologically complex formula into products’ R&D, apply to consumers’ specialized needs or interests
- Better to target younger generation through advertising on the internet, social media, apps and other technical advertise methods
Will L'oreal Succeed In Changing The Buying
Habits Of Brazilian Women?
Hofstede Model~Brazil~
High High UncertaintUncertaint
y y AvoidanceAvoidance
L’Oreal in Brazil
Shopping opinion- Sales person attending to them to sell their products by catalogue and receiving personal attention
Trying to tailor its makeup to Brazilian women.
SucceedSucceed in in
long termlong term
Equalize their consumption between hair and skin care products
Conclusion
The aging population in developed countries spend money to enhance their looks by getting anti-ageing products
•Demand will keep growing
•Cosmetics manufactures have to adjust and
differentiate their products
•Skin care has the biggest growth potential if
segmented properly
L/O/G/O
Thank You!
Bibliography• Christina, P. 2014. To L’Oreal, Brazil’s Women Need New Style of Shopping.
http://online.wsj.com/news/articles/SB10001424052748703951704576091920875276938• Geoffrey, Jones. 2011. “Globalization and Beauty, a Historical and Firm Perspective”.
EUROAMERICA 41(4): 885-916. • Keegan, Warren J, and Mark. C. Green. 2013. Global Marketing 7th edition. Harlow: Pearson
Education Limited. • Keisuke. 2012. Japanese Skin Care Obsession. http://www.ibukimagazine.com/japanese-
skincare-obsession/• Pable. L. R. 2013. Cosmetics around the World. http://prezi.com/d3me029smm-o/imm-
cosmetics/• Patricia, Pao. 2010. Why Shiseido beats western beauty marketers. Advertising Age.
http://adage.com/china/article/viewpoint/why-shiseido-beats-western-beauty-marketers-in-china/145645/
• Singer, Hatasha. 2012. At Estée Lauder, a Brand is Developed Just for China. http://www.nytimes.com/2012/09/25/business/estee-lauder-develops-a-brand-just-for-china.html
• Weber, Claire. 2014. Geography of Beauty. http://geography.about.com/od/culturalgeography/a/Geography-Of-Beauty.htm
• Zhang, Yuwei. 2013. To Estée Lauder, Growth prospects in China Look Beautiful. http: usa.chinadaily.com.cn/epaper/2013-05/20/content_16511627.htm