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Comparative Study Of Amore Pacific And Shiseido’s Marketing Mix In China And Implications To Chinese Cosmetic Industry

Posted on:2018-11-24Degree:MasterType:Thesis
Country:ChinaCandidate:L Y LiuFull Text:PDF
GTID:2359330542988143Subject:Foreign Linguistics and Applied Linguistics
Abstract/Summary:PDF Full Text Request
Currently,under the development of economy and society,people’s living standards have been improved.Therefore,great changes have taken place in public consumption under the influence of the development.Cosmetics begin to account for a great proportion in consumers’ life and become a daily life product for females.Due to China’s huge population,the growing urbanization and increasing consumption level,Chinese cosmetics market is considered to be the world’s most important and potential market.As the showing up of the international enterprises in the Chinese market,the competition in China is more and more fierce.Almost held by overseas brands,it is more obvious to the high-end market.To hold competitive power and win the market,international cosmetics enterprises increase their technology and investment.Under the blow of international brand competition,the development of Chinese cosmetics is getting more difficult,and even confronts the danger of being sifted out.However,Chinese cosmetics companies still have good international growth potential to hold a position in the international market by learning the successful experiences of foreign companies.People in Japan,South Korea and China share similar skin features.As the main cosmetics companies in their own countries,Shiseido and Amore have taken most of possession in the Chinese market by their marketing strategies.Therefore,the marketing strategies of these two groups are of great significance to Chinese enterprises.The largest Japanese cosmetics enterprise Shiseido once was the first comer in the Chinese market among the Japanese brands,but it has withdrawn many counters and suffered much loss due to deterioration of Sino-Japan relations and the enterprise’s own marketing problems in recent years.Opposite to Shiseido’s difficult situation,Amore Pacific Group has a rapid development in China thanks to its better marketing strategies.Therefore,the analysis of the marketing mix adopted by Amore Pacific Group and Shiseido Group has important meaning for Chinese cosmetics enterprises.To well represent in the market,enterprises are required to adopt suitable and various marketing strategies.The marketing strategy is the relevant measures that enterprises take to achieve their marketing objectives.If enterprises do not take the correct marketing strategies as the guidance,they may lose the market share and be defeated by other competitors.Marketing is made up of specific aspects,including selection of target markets and positioning of consumer groups,as well as marketing mix.Marketing mix involves the company’s products,prices,distribution channels and promotion,which is a significant section of the marketing strategies.When companies begin to implement marketing strategies,they have to research each part of the marketing mix.The marketing mix is a marketing tool including a variety of methods that enterprises adopt to realize their plans and purposes.The author studies the marketing mix by case study and comparative analysis.The thesis consists of eight chapters.The first chapter is the introduction,which is helpful for the comprehension of the following chapters by providing basic information.Specifically,it lists the background,significance and the purpose of the study.The second chapter states the literature review,which introduces the researches and ideas in marketing strategies at home and abroad.The third part introduces the theoretical framework,the marketing mix,which is also called 4Ps.It briefly introduces the marketing mix from four aspects,namely product,price,place and promotion.The fourth chapter makes a brief introduction about Amore and Shiseido’s profiles and current marketing conditions in China,including general information,such as development history and basic products.Secondly,it introduces marketing mix strategies adopted by the two groups,including the measures related to product,price,distribution channel and promotion.Then it concludes that Amore and Shiseido have a great share in the Chinese market,but Shiseido Group is currently affected by its poor marketing strategy and the deteriorating Sino-Japanese relations.The fifth chapter is about the comparative analysis of the marketing mix adopted by Amore Group and Shiseido Group in China.Similarities and differences of the two groups are explained in this part.The two groups have some similarities in brand,price,distribution channel and promotion.Both groups adopt the stand-alone branding strategy and competitor-based pricing strategy,and both of them adopt multiple distribution channels,such as counters,stores and e-commerce channels.In addition,the two groups attach great importance to public relations,and are heavily involved in social welfare activities.However,they also have differences in marketing.Shiseido adopts localization strategy,and develops specific brands for the Chinese market,such as AUPERS and urara.Though some adjustments are made in its brand innisfree,Amore does not develop specific brand for the Chinese market.In terms of distribution channels,Amore adopts exclusive distribution strategy,while Shiseido adopts selective distribution strategy.In addition,they also adopt different promotions in advertisement.Amore Group takes advantage of the popularity of Korean TV dramas and the star effects.The group makes a lot of advertisements in TV dramas and invites many spokespeople.Different from Amore,Shiseido mainly focuses on high-end products and mainly hires the country’s best-known celebrities,such as Sun Li.The sixth chapter is the development analysis of Chinese cosmetic brands,from which the author finds that Chinese cosmetics have a certain position in the international market.It points out that the number of Chinese cosmetic brands is large,and brands such as INOHERB,Pechoin can compete with other international brands.Then the author introduces the advantages and challenges Chinese cosmetic industry faces based on the marketing mix theory.Chinese cosmetics have advantages in brand positioning and management.Meanwhile the low prices can target the college students or women who just start their career.But it also finds that Chinese cosmetics also face challenges in strategies,such as stand-alone branding,packaging and localization,thus needs to be further improved.The seventh chapter gives suggestions to Chinese cosmetics enterprises from 4Ps.First of all,there is large number of Chinese cosmetic brands and many small brand products have a certain market share.Thus,the large enterprises such as Shanghai Jahwa can acquire those small brands and form specific series to target the certain consumer groups.Thus,it can occupy a bigger market share by stand-alone branding strategy.Secondly,the Chinese culture has been recognized by more and more countries in the world.China’s Peking Opera,paper-cutting and other cultural factors can be the selling point.While pandas become part of China’s diplomatic way,and Chinese pandas are loved by many countries.Thus,it is recommended that cosmetic firms add pandas’ image in the package and target markets of the United States,New Zealand and other countries that borrow pandas.This can attract many consumers in these markets.Learning localization of Shiseido Group is also recommended.It can establish special research institutes and develop specific brand in the target market,or learn from Amore Group to develop specific product of the existing brand.Chinese cosmetic brands have advantages in price,which is lower than the products in the same level,but it also forms the cheap-impression of Chinese products,which lends to the loss of high-end consumer groups.Therefore,the author suggests that Chinese cosmetics companies should not only focus on the low-end products but also the high-end products,which can improve the impression of Chinese cosmetic industry.The eighth chapter is the conclusion which puts forward the major findings of the research.First,the author finds that the two groups have many similarities and differences in product,price,place and promotion.Second,Chinese cosmetics enterprises are found not only face various challenges in global competition,but still have many advantages in several aspects.Therefore,if Chinese cosmetics enterprises can learn the advantages of other enterprises in marketing mix,they have the bright future to compete with enterprises like Amore and Shiseido Group.Moreover,the innovations and limitations are also put forward in the conclusion part.One of the innovations of this thesis is that it uses the comparative analysis to state similarities and differences between the two enterprises.Another innovation is the authenticity and reliability of data.However,owing to the limited time and energy and short of experience,the specific analysis of marketing strategies is not comprehensive enough,therefore,this thesis inevitably has some unsatisfactory or even inadequate parts.
Keywords/Search Tags:the marketing mix, Amore Pacific Group, Shiseido Group, cosmetic industry
PDF Full Text Request
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