Making China Beautiful: Shiseido & the China Market Essay

1035 Words Jan 6th, 2011 5 Pages
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 are
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This channel allows for in-store sampling and sales consulting which significantly helps to build credibility and overall sales. iv. Con: This stratification strategy may take away from the exclusivity appeal of prestige products. The store may not be in a location where several different buyer markets are shopping. 3) Continue strengthening the Shiseido China business model. e. The Chinese Association of Fragrance, Flavor and Cosmetic Industry put 2008 total sales of cosmetics at $19 billion, with a steady average growth rate of 15% during the last five years which has and will sustain despite the global economic downturn. f. Shiseido should continue with a strong devotion and commitment to extensive hiring and training of qualified personnel throughout all business levels. g. Shiseido should carry on with building the brand image and fulfilling company values through engaging in social contribution activities in China and each region. h. Corporate should look to create strict standards for distribution negotiations through the training and strengthening of customer relationships management specifically in China and the rest of the Asian countries. v. Con: If this strategy isn’t executed correctly, the effort could…