The Cosmetic Industry Of Thailand

Word-of-mouth is the major factor to help people make decisions on buying high-involvement products (Gu, Park, & Konana 2012, p. 182).

| * Introduction of new substitute products * More competitors trying to entry the market (saturation) * Increase of production costs * Maturity of the cosmetic industry * More importing regulations

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 report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges.

The cultures of those countries are also similar to the Thai culture and the slogan “products that are developed and formulated especially for Asian women” will also appeal to those women. When penetrating international markets Mistine will face the following difficulties:

Such a bold position requires a new approach to marketing.  The authors present a thesis of the Influence Mix, which introduces that there are three influences on consumer decision-making — the individual’s prior preferences, beliefs and experiences (P), other people and information services in the form of reviews and

There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line

There are also two types of social influences, normative and informative, that can affect a consumer’s purchase decision. A normative influence is the desire to conform to the expectations of another. An informative influence is to accept and trust information obtained as reality. (Bishop & Myers 1974). According to Lam & Meyers 1978, normative and informative influences are both relevant when purchasing a car as an individuals opinions can be influenced by group discussion. It is evident that normative social influences have a greater influence on groups as this is when an individual believes that conforming may have positive consequences and not conforming may have negative consequences. Whereas, informational social influences is often when we care about getting the right answer and trying to be rational. Both normative and informative influences affect the consumer purchase decision of purchasing a car.

Currently, the business has not ventured in the cosmetic market of London and Canada. Canada and London provide an opportunity for the company to expand its market through its international entry strategy of retailing and B2C framework. The SWOT analysis of the company shows a wide range of strengths and opportunities for the company’s future success such as market gap (London and Canada), Globalization, technology and good customer relation (BBB accreditation). The company demonstrates high capability of sustenance and survival through retailing, personal selling, E-commerce, E-marketing, Fashion Collaboration and other B2B platforms.

Young girls are more concerned about acnes and blackheads while mature women are looking for anti-aging and anti-wrinkle products. Genders do affect the choice of skin care products. In the past, skin care products only belong to the girls’ world. Nevertheless, in recent years, men are increasingly becoming more and more concerned about skin care. With a view to this latest trend, various brands have started developing men’s line. Income level directly affects the purchasing power of customers. Skin care products take up a wide range of price levels from far less than a hundred dollars to more than a thousand. Young girls who do not have any income cannot afford the expensive skin care products while mature women with higher purchasing power focus more on quality and effectiveness. Occupations also determine the need for skin care products. Models and artists generally have a higher consciousness on skin care than people with less exposure to the public.

Porter national diamond analysis Supporting Industries Superior in-store infrastructure Counseling counters Cosmetic R&D centre MDO, Max factor Strategy, Structure and Rivalry High number of domestic competitors with high innovation. Tough competition Presence of prestigious foreign brand Intense, established, well respected , high experience and famous competitors Limited competitors in high-cosmetic market which can lead to low innovation and learning improvement as well as an opportunity to easily reach a huge market for P&G

Because Japanese women had by far the highest use of beauty care products in the world, it was natural that the global beauty care category management started to regard Max Factor Japan as a potential source of innovation

After recognition of needs, the purchaser might search for the related information about the product and the alternatives which could able to fulfil the need before making direct decision on purchasing the product. Nevertheless, every customer has different preference in seeking information as it depends on the customers’ knowledge about the product. In the information acquisition process can be separated into two parts, which is internal search and external search (Jeddi, Atefi, Jalali, Poureisa & Haghi, 2013). The internal search is the customer obtains the information from experiences, it can be known as an experiential source for consumer. For the external search, it included personal source and commercial source. Personal source is the feedback of family, friends, peers, classmates, colleagues and exhibition towards the product (Mattila & Wirtz, 2002). In addition, the commercial source is information that find through the advertisement, salesperson, displaying and packaging of the product (Bradley, 1995). Consumer also seeks the information by using Internet (Bhatnagar & Ghose, 2004). Thus, a comprehensive marketing programme of company must be designed to provide the awareness for consumer to know that the product as

Rivalry is intense among the competition in the cosmetic and skin care industry. There are numerous existing cosmetic companies competing in the market. The giant corporations acquire numerous brand name products and compete for the same number of customers. The competition consists of companies such as, Procter & Gamble, L’Oreal, Unilever, Avon Products, Inc., Estee Lauder, in addition to competing with large retailers, who order mass

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