http://blackrabbit2999.blogspot.com/2010/04/nus-mkt-1003-case-study-shiseido-in.html
Shiseido in China:
A case study analysis
1. What are the functions performed by the distribution channels in cosmetic products? How are some of these functions performed in Shiseido’s operation in China?
There are a variety of distribution channels used in the marketing of cosmetic products which include examples such as product counters set up in department stores and product distribution through shelf display in supermarkets. These intermediaries make selling more efficient by minimizing the number of contacts a company has to make by handling all the individual contacts with customers and providing a range of goods to customers at one location. All
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2. What are the advantages and disadvantages of selling cosmetic products through door-to-door selling, specialty stores, department store counters, and supermarket and hypermarket? How will the use of these channels vary with target market segments and brand strategies?
As stated in the case, the ban on door-to-door selling was lifted in 2005. Avon Products and Amway are taking advantage of this by using door-to-door selling as a method of marketing their products. The main advantage to using door-to-door selling in the sale of cosmetic products is that it is a cheap and cost effective method of getting products across to the customers. Companies do not incur the cost of setting up physical stores and hiring dedicated sales person when using door-to-door selling as the products are sold directly from the manufacturer to the customers via one level of sales representatives. Illustrating the success of this method of sales, Avon Products had already recruited 350,000 sales representatives by the end of 2006. We can assume that most of these sales representatives are being paid purely on a commission basis and Avon Products does not incur any other additional or fixed cost in employing these sales personnel thus making it a very cost effective method of selling products. This and the lack of intermediaries between the manufacturer and the customer mean that the
They are women with incomes of $25,000 or more a year that care about their appearance and spend money on beauty products. They tend to have curly or frizzy hair. They are women that tend to use beauty salons and keep up with fashion and fashion trends.
2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?
This report explores and considers the various factors which impacts lush cosmetic’s product in term of entering the market. There are methods which can be taken with this organisation, were researched; the main focus will be to:
This paper is intended to shine a light onto distribution channels, both direct and indirect, as well as, provide a better understanding of channel levels. It will also deal with the different channel organizations, including conventional, horizontal, vertical and multichannel marketing systems.
Being tasked with creating an evaluation of Dillard’s strengths, weaknesses, opportunities, and threats allowed for the development of a proposal that could help Dillard’s as a company. Unbeknownst to our group this information would be helpful in developing a proposal and portions would lead directly to our proposal. It will be discussed in the proposal analysis how our proposal is associated with the strengths, weaknesses, opportunities, and threats of Dillard’s and shed some light on how these areas of research led to the proposal of Dillard’s implementing beauty salons in their existing stores across the United States.
4. What are the pros and cons of the mail order marketing strategy? What are the pros and cons of alternative distribution methods?
As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.
The channel performance and coverage studies are the studies that help in determining the overall product strategy for the product, the price that the market will bear for the tanning salon, and the promotion that is appropriate in the light of competition (Page 172). This study is very beneficial because it will investigate every threats, opportunities, strength, and weaknesses around the area the tanning salon will be. This study should show buying patterns of consumers, potential competitive entrance, long-run cost pressure, new technologies, and all the
The sales composition is split into 37% from grocery stores, 20% from drug stores, 35% from mass merchants and 8% from miscellaneous sources. 70% of their total sales value is derived from 10% of their important customers. The company has foreseen valuable increase in their demand and is about to face some problems due to their traditional distribution network and their competitors. To focus these issues, they have decided to improvise on certain issues by collaboration with suppliers and customers which are discussed below.
In business, it is essential for management to understand the role and importance of marketing to his or her organization. Management utilizes marketing tools to satisfy the needs of customers, and to gain a better understanding of the product itself. The goal of this paper is to discuss and analyze the distribution practices of Land O Lakes butter. In review of the distribution practices, I will also attempt to show the importance of knowing and understanding the product you are marketing.
While the distribution of the product fits the target market, it also harmonizes well with the marketing mix. The place where the product is distributed is highly important (Perner, n.d.; Place, n.d., Ramsey, 2012). Products gain a
Estée Lauder’s distribution network consists of salons, specialty stores and high-end department stores. This is potentially limiting its reach to customers. A limited distribution strategy tends to increase dependency on specific channels which could be disastrous. For instance, Macy’s is Estée Lauder’s biggest client, accounting for nine percent of total sales and nearly forty percent of sales in the United States (Terlep, 2016). Macy’s is also aggressively closing stores.
Many of the products offered by Avon satisfied these needs. Therefore the grand strategy to introduce its products to retail department stores where baby boomers shopped appeared to be a successful solution for the growth of the companies ' revenue. By diversifying its distribution channel, Avon would prevail against its competitors like Mary Kaye and L 'Oreal in increasing its customer base.
Cosmetic industry is the most profitable business for the most of the manufacturers. It has not only grown in United States but also in various parts of the world such as France, Germany, Italy, India, Japan, etc. In this industry report, my aim is to collect the data about the cosmetic industry, and select the data that is suitable for my report. For this process I make use of the sampling technique. I had chosen Germany cosmetic industry for my study. This is a type of sampling in which instead of studying the whole data I had chosen a particular country for my study. Hence I can relate this report for the whole cosmetic market around the world.