What is a good summary for Global Marketing (9th Edition) page 241 case analysis

Question

What is a good summary for Global Marketing (9th Edition) page 241 case analysis 7-2 title: Cosmetics Giants Segment the Global Cosmetics Market

a. How do women's preferences for cosmetics and beauty care vary from country to country?

b. Assess Estee Lauder's strategy for China. Does it make sense to focus on premium brands, or should the company launch a mass-markey brand?

c. What is the best positioning strategy for Shiseido as the company expands in Asia? High touch? High tech? Both?

d. Do you think L'Oreal will succeed in changing the buying habits of Brazilian women?

Explanation / Answer

A. Preferences for beauty products differ from country to country depending upon their lifestyles, climatic conditions, cultural environment, tastes and preferences, etc.

For Example- In India, most ladies have dusky complexion and are more influences towards white complexion. Hence, skin lightening creams like Fair and lovely is very famous in Indian. Also, summer seasons lead to more demand of sunscreens which is not in case of countries with more winter seasons.

Suppose, in case of Europe and US, most women’s are working, for their daily normal and light makeup they demand separate beauty products. In case of Japan. It has been seen that women’s prefer dry make up rather than liquid makeup because of humid climate.

B. Assess Estee Lauder's strategy of high price and luxury cosmetics takes it to the new heights in China. Company believes that mass market brand strategy is loosing its importance and a new trend of luxury cosmetics have started. Metropolitan countries like China where customers are price sensitive but at the same time customers are willing to pay high prices for quality products as they are very confident about their future and skills they possess. They want to look exceptional and find confidence in purchasing high cost cosmetics products.   

C. Shiseido Company looking to expand in emerging markets specially ASIA. The Japan’s Company is well known for its specialization in skin issues related to Asian women’s with also special products for Anti-Ageing problems. For expansion in ASIA, it have to focus on both high tech and high touch strategy because of heavy competition from other players. It have to focus on middle to upper age group women’s with ageing problem. Also, it can target the beauty conscious working ladies with different skin tones to advise them on how to choose beauty products matching their skin tones.

D. Brazil is one the major market for cosmetics products. Brazilian women’s spends very much on beauty products. L’Oreal is working hard to gain Brazilian market by working on store consultants. It believe that as market start develops, the direct selling will automatically loose its importance. Beauty consultants have specialized in their area providing important feedback giving positive results to l’Oreal in Brazilian market.

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