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Shiseido Case Analysis

1150 words - 5 pages

Problem Statement What marketing strategy should Shiseido pursue that will appeal to the cultural, social, personal and psychological characteristics of American consumers and therefore increase the company's share in the US market? Target Market Adult American women belonging to the high-income earning class Areas for Consideration Strengths: Shiseido is the largest cosmetic manufacturers in Japan Shiseido already has a long history and a well-established image in Japan Weaknesses: The company holds only 1.3% share in the US market Shiseido lacks a well-known perfume brand, which most of American firms possess Opportunities: Americans are beginning to emphasize a return to basic values and a less stressful lifestyle that is in line with Shiseido's well-being approach Consumers are becoming more vigilant and value information much more than promotions Threats: Cultural, social, personal and psychological characteristics of Japanese consumers The presence pf already established American firms in the cosmetic market Alternatives Alternative I: Pursue the same marketing strategy in Japan The company would exactly use its 4Ps strategies in Japan to appeal to the American consumers. Thus the company would produce the same products and use the same brand of cosmetics and consequently price them a premium price. It would also try to distribute it through retailers and work out similar arrangements wherein the retailer is to sell only Shiseido cosmetics with the condition that Shiseido would repurchase all unsold cosmetics. Lastly the company would opt to use standardized promotions, thus only altering its advertisements for language differences.Alternative II: Develop a completely new marketing strategy for the American market In this strategy the company will still produce the same product but will make some modifications in the brand and packaging of the products. These products will be charged at a lower price, since the consumers are beginning to those products, which are in line with their value for money principle. These cosmetics would still be distributed through retailers, but the company needs to make do without the repurchase agreement with its retailers. Lastly the company would adapt its promotions to the American market by exhibiting and stressing the unique characteristics of its American market and how Shiseido can well serve this market.Alternative III: Adopting only certain aspects of its marketing mix to the American market Shiseido company would still use the same products and brand name for the cosmetics that it will market in the US. These products will still be priced as a premium as when it is sold in Japan. The company, however, would need to formulate a new arrangement with its distributors that will primarily be composed of retailers. Lastly, the company would adopt a promotions strategy that would relate to the culture, personality and lifestyle of the American women.Recommendation The company should adopt the third...

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