Teaching Note
AMORE PACIFIC
Case Synopsis
AmorePacific, the leader in the Korean market for beauty products, was established in 1945 with a strong focus on researching and developing products based on Korean home remedies. The company 1959, listed its shares in the Korea Stock Exchange in 1973, and changed its name to AmorePacific Corporation in 1993.
Industry dynamics and pace of development at Amore Pacific accelerated greatly during the 1990s. Domestically, anticipated entry by multinationals forced major changes in corporate and business strategy with a rigorous refocus on cosmetics by the mid-1990s, slashing of affiliates and reduction of headcount.[At the business level, it repositioned itself and its brands
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Multinationals entering the market was relatively difficult due to the government division and depreciation of the dollar. This was magnified with the fact that the multinationals like L'oreal had to import their products due to a lack of investment in production infrastructure. This lead to a higher cost of goods sold mainly due to high tariff rates of 8%. Consequently leading to a high priced product to the consumer and this availability and distribution was restricted to high priced departmental store channels.
We can see that LG HHC was losing money, and was never very profitable in economic terms, after allowing for cost of capital. This was mainly due to limited access/scale of distribution; cosmetics was not the main business for LG HHC. On the other hand Amore Pacific enjoyed a strategic advantage over LG as all their efforts were centered around the cosmetics business and they had greater advantages to leverage and typically get trade and consumer on their side; thus share of specific market winning over total size of business.
AmorePacific had been earning healthy (20%-plus) operating margins on the Korean cosmetic
1. Question: Why does Gatto think that school is boring and childish? How does Gatto’s depiction of school compare with your own elementary and secondary school experience?
This beauty retail store SWOT Analysis includes several strengths and weakness that it has currently developed in its structure. However, there are a few opportunities that this company should take advantage to seize the moment and there are a few threats in which they should find new ways to overcome
To tackle the housing affordability, first of all, it is crucial to lift the supply of housing as it will release the pressure on the housing price. Nevertheless, the supply of housing is inelastic as it requires an adequate fund, time, approval from the Government. Besides, the housing system is heavily dependent on the private sector. Thus, the Government should provide initiatives for housing providers to shift the supply of houses in the market. Australia would follow the policies from other countries to tackle the housing affordability. However, it has to fit in the Australian context. These policies might work well in other places but it does not mean that it will be applicable in Australia. The Singapore Government has a public
The main issue of the P&G Korea case is centered around the question of market share. P&G and Unilever are the two major market shareholders in the Korean detergent industry holding 80-85% of the total market share. The remaining 15-20% of the market is held by low-priced local Korean brands. There are no new markets either company can tap for further market share since most Korean households already use laundry detergent, making the market saturated. Other than peripheral chemical changes claimed to be “improvements”, there are no major innovations to be explored for product development or diversification. Per Ansoff’s strategic opportunities matrix, P&G and Unilever are both focused on Market Penetration,
For Europe, in order to have a chance in European market which crowded with world well-known beauty care brands, SK-II need to be launched in unique distribution channel from other P&G
Estée Lauder has an extremely large presence as the global leader in prestige beauty with products being sold in more than 150 countries. This global success is attributed to their focus on cultural relevance, making sure that their products, signage, marketing etc. appeals to consumers in each local market.
By 1997, the Japanese cosmetics business had broken even. The Japanese team, after trials and learning from its
Statement: By based on research of Japanese market, P&G made clear targeting and positioning, and developed new products which fulfilled customers’ needs, built the effective distribution. As a result, P&G could establish differentiation advantages for the following. • Product: “Foaming massage cloth” , Elegant dispensing box “Foaming massage cloth” increase skin circulation through a massage while boosting skin clarity due to the microfibers’ ability to clean pores and trap dirt. • Price: Premium price • Place: Luxury and nice counter at department store • Promotion: Counseling by Beauty counselor, TV advertising, Beauty magazines
• Promotion: Counseling by beauty counselor, TV advertising, Beauty magazines P&G utilized and rebuilt its distribution channels of using trained personnel at beauty counters throughout Japan.
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My interest for the Attorney Advisor position with the United States Patent & Trademark Office (USPTO) arises from my longstanding commitment to constantly improve myself. I have always enjoyed legal research, writing, and the complexities of intellectual property. I have no doubt that my enthusiasm to research, my eagerness to learn, and my strong ability to communicate clearly, work efficiently, accurately, and quickly, will make me an invaluable asset to the USPTO. I believe these traits combined with my unique skillset, developed as a result of experiences working for the Arizona Diamondbacks of Major League Baseball (Diamondbacks), Nike Inc. (Nike), and the Arizona Attorney General’s Office, Liability Management Department (AG Office)
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AmorePacific had made inroads in the export market in the French market, began selling its first brand in 1988. But they had no successive distribution intermediaries and experienced failure. By then,
Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to