
Tuesday, 31 January 2012
Shu Uemura
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Table of Contents
1 Market........................................................................................................................... 3
1.1 Size of Market......................................................................................................... 3
1.2 Market Share........................................................................................................... 3
1.3 Market Position ....................................................................................................... 3
1.4 Breadth and Depth of Product Range ...................................................................... 4
1.5 Company‟s Principal Products ................................................................................ 5
1.6 Positioning of Product ............................................................................................. 6
1.7 Product Life Cycle Stage ......................................................................................... 6
2 Competitors .................................................................................................................... 7
2.1 Number of Direct/Indirect Competitors ................................................................... 7
2.1.1 Direct Competitors ........................................................................................... 7
Illustration 2.1: Shu Uemura‟s Cleansing Beauty Oil Premium A/O Advanced Formula .... 7
2.1.2 Indirect Competitors ...................................................................................... 10
2.2 Size of competitors ............................................................................................... 10
2.3 Positioning ............................................................................................................ 12
2.3.1 Cost positioning ............................................................................................. 13
2.3.2 Comparison of Product Positioning ................................................................ 16
Table 2.5: Product Positioning .................................................................................... 16
3 Identification of Target Market(s) ................................................................................. 17
3.1 Primary Target Market of Shu Uemura & Competitors.......................................... 17
Table 3.1: Classifications of Target Market ................................................................. 17
3.2 Potential Market Segment ..................................................................................... 20
4 External Influences ....................................................................................................... 21
4.1 Culture and Subculture .......................................................................................... 21
4.2 Demographics ....................................................................................................... 22
4.3 Group influence .................................................................................................... 23
5 Internal Influences ........................................................................................................ 24
5.1 Needs and Motives ................................................................................................ 24
5.2 Perception ............................................................................................................. 24
5.2.1 Exposure ........................................................................................................ 25
5.2.2 Attention ........................................................................................................ 25
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5.2.3 Interpretation ................................................................................................. 26
5.3 Learning................................................................................................................ 26
5.4 Lifestyle ................................................................................................................ 27
6 Consumer Decision Making Processes ......................................................................... 28
6.1 Types & Amount of Information Search................................................................ 28
6.1.1 Level of Involvement ..................................................................................... 29
6.1.2 Level of Decision Making .............................................................................. 29
6.2 Evaluation of Brand .............................................................................................. 30
6.2.1 Criteria in Evaluating of Purchase Decision ................................................... 30
6.2.2 Decision Rules ............................................................................................... 31
6.3 Shopping Behaviour .............................................................................................. 32
6.3.1 Consumer Characteristics ............................................................................... 32
6.3.2 Retail Advertising .......................................................................................... 32
6.3.3 Outlet Location .............................................................................................. 32
6.3.4 In-store and Pricing Influence ........................................................................ 33
6.4 Postpurchase Behaviour ........................................................................................ 33
6.5 Disposal ................................................................................................................ 33
6.6 Loyalty ................................................................................................................. 34
7 Marketing Strategy ....................................................................................................... 35
7.1 Comparison of 4Ps (Product, Price, Promotion and Place) between Shu Uemura and Bobbi Brown ................................................................................................................... 35
8 Evaluation and Recommendations ................................................................................ 40
8.1 Evaluation ............................................................................................................. 40
8.1.1 Advertisement ................................................................................................ 40
8.1.2 Colour and Background ................................................................................. 40
8.1.3 Format and Information Quantity ................................................................... 41
8.2 Recommendations ................................................................................................. 41
8.2.1 Product Positioning ........................................................................................ 41
8.2.2 Marketing Mix ............................................................................................... 41
9 Conclusion ................................................................................................................... 43
10 References.................................................................................................................... 44
11 Appendix ..................................................................................................................... 49
MKTG 1052 Buyer Behaviour
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1 Market
1.1 Size of Market
As of 2009, the size of the Asian-Pacific skin care market accounting for over 39% of the global market (Datamonitor 2009).
1.2 Market Share
L‟Oreal, which distributes Shu Uemura under its luxury products division, holds 15.4% of the Singapore‟s skincare and cosmetic market in 2009 (L‟Oreal 2010).
1.3 Market Position
Diagram 1: Perceptual Mapping
The market position for Shu Uemura and its competitors is demarcated by brand awareness and brand image. Brand awareness relates to brand recall and recognition performance by consumers while brand image refers to the set of associations linked to the brand that consumers hold in memory (Keillor 2007). Shu Uemura has relatively high brand awareness due to its brand extension which allowed it to achieve worldwide recognition. It is also perceived to have a strong brand image where it ensures quality and performance thus justifying it as a premium brand.
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1.4 Breadth and Depth of Product Range
According to Bentancourt (2006), breadth of product range is the number of product lines or categories that a brand carries and depth is identified as the number of varieties within a product line or category. Shu Uemura carries a variety of products which ranges from skincare, to make up and make up accessories (Shu Uemura 2010). The list of products that Shu Uemura Singapore carries under each category is provided in Table 1.1.
Table 1.1: Breadth of Shu Uemura‟s Products
Skin Care
Make Up
Make Up Accessories
Facial care products
Face products
Eyes products
Lips products
Eyelash products
Brushes products
Under each product line, Shu Uemura carries a variety of products as listed in Table 1.2.
Table 1.2: Depth of Shu Uemura‟s Products
Skin Care
Facial care products
Cleanser/Makeup remover
Lotion
Moisturizing
Age Prevention
Anti-aging
Oil Control
Facial Mist
Mask/Exfoliator
Make Up
Face products
Base
Concealers
Foundations
Powders
Blush
Eyes products
Brows
Eye Liners
Eye Shadows
Mascara
Lips products
Lipstick
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Lip Gloss
Lip Pencils
Make Up Accessories
Eyelash products
Natural Lashes
Accent Lashes
Fantasy Lashes
Brushes products
Cheek Brushes
Concealer Brushes
Eye Brushes
Powder Brushes
1.5 Company’s Principal Products
The principal products of Shu Uemura are its facial care products as shown in Table 1.3.
Table 1.3: Principal Products
Features and Benefits
Facial Cleanser/Makeup remover
Consist of products for both men and women
Caters for different skin types – e.g. normal, sensitive and oily skin
Protect skin‟s delicate balance
Moisturizing
Comes in different forms – e.g. lotion, cream, mask and gel
Caters for different skin types – e.g. normal, sensitive and oily skin
Improving skin-moisturizing ability and locking-in moisture for 24 hours
Anti-aging
Consist of products for both men and women
Comes in different forms – e.g. lotion, essence, cream and mask
Formulated with asian phyto ingredients that bring about highly efficient anti-aging effects for beautiful and youthful looking skin.
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1.6 Positioning of Product
From its packaging and advertisements, it is evident that Shu Uemura is trying to position Cleansing Beauty Oil Premium A/O Advanced Formula (SUCBO-AF) as a high performance balancing cleansing oil product.
1.7 Product Life Cycle Stage
Figure 1.1: Product Life Cycle Stage
Source: Sahaf, MA 2008, Strategic Marketing: Making decisions for strategic advantage, Prentice-Hall, India.
SUCBO-AF is considered to be currently at the early growth phase, as indicated in Figure 1.1, seeking to build a product preference so as to gain more market shares. This is evident in the expansion of its distribution channels to include departmental stores, specialized stores, travel outlets and the engagement of intense newspaper and magazine advertisements to reach a broader audience.
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2 Competitors
2.1 Number of Direct/Indirect Competitors
2.1.1 Direct Competitors
Shu Uemura (Illustration 2.1) has a significant number of direct and indirect competitors with its main direct competitor such as Bobbi Brown and Fancl (Illustration 2.2 & 2.3). Although the products adopt different positioning, both competitors share substantial similarities with Shu Uemura as shown in Table 2.1 and 2.2.
Illustration 2.1: Shu Uemura‟s Cleansing Beauty Oil Premium A/O Advanced Formula
Source: Shu Uemura 2010, Cleansing Beauty Oil Premium A/O Advanced Formula, Shu Uemura, United States of America, viewed 23 August 2010, <http://www.shuuemura-usa.com/_us/_en/skincare/cleanser-makeup-remover/cleansing-beauty-oil-premium-ao-advanced.htm>.
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Illustration 2.2: Bobbi Brown Cleansing Oil
Source: Bobbi Brown 2010, Cleansing Oil, Bobbi Brown, New York, viewed 23 August 2010, <http://www.bobbibrowncosmetics.com/templates/products/mpp/index.tmpl?CATEGORY_ID=CATEGORY22773 />.
Table 2.1: Similarities between Shu Uemura and Bobbi Brown
Both products are two-in-one cleanser and makeup remover.
Both products use natural ingredients; Shu Uemura uses green tea extract, depsea water and gingko leaf extract while Bobbi Brown uses ginger root extract, olive and jojoba oils.
The steps of using the both product are exactly the same, both cleansing oils remove all traces of makeup and cleanse the skin.
In terms of after-effect, both products will leave the skin soft, moisturized and calm.
Both products use simple and colourful transparent packaging.
In addition, Shu Uemura and Bobbi Brown not only offer skin care products, they also offer make-up products, tools and services.
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Illustration 2.3: Fancl‟s Mild Cleansing Oil
Source: Fancl Asia Pte Ltd 2010, Mild Cleansing Oil, Fancl Asia Pte Ltd, Japan, viewed 23 August 2010, <http://www.fancl.com.sg/product_detail.asp?p_id=1>.
Table 2.2: Similarities between Shu Uemura and Fancl
Both products are two-in-one; cleanser and makeup remover.
Both products use green tea as its natural ingredients but in different forms. Shu Uemura uses green tea‟s extract while Fancl uses green tea‟s catechin oil.
The steps of using both products are relatively similar. However, Shu Uemura has an additional step as compared to Fancl, which is to add a few drops of lukewarm water to emulsify.
In terms of after-effect, both products bring about radiance and improvement of the skin quality.
Both brands offer skin care and make-up products and they are originated from Japan.
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2.1.2 Indirect Competitors
Shu Uemura‟s indirect competitors are shown in Table 2.2. These products target different segments and they differ in cost positioning.
Table 2.2: Indirect Competitors
Cleanser
Etude House
Baking Powder Cleansing Milk
The Body Shop
Cucumber Cleansing Milk
Clinique
Acne Solutions Cleansing Foam
Dermalogica
Dermal Clay Cleanser
Makeup Remover
L'Oreal
Gentle Eye Make-Up Remover
Beaute de Kose Makeup Remover For Eye Lip
Lancome
Bi-Facil Double Action Eye Makeup Remover
Chanel
Precision -Gentle Makeup Cleansing Milk for Face and Eye
2.2 Size of competitors
From Table 2.3, it is evident that L'Oréal, which carries Shu Uemura, is the leading brand in the skin care industry in Singapore with a 15.4% market share in 2009. In the same year, Estée Lauder Cosmetics Pte Ltd, which carries Bobbi Brown has a market share of 11.2%.
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On the other hand, Fancl has steadily grown its market share to 1.9% in 2009 since its entrance in 2000 (Euromonitor International 2010).
Table 2.3: Market Shares
Skin Care Company Shares by Retail Value 2005-2009
% Retail Value rsp
2005
2006
2007
2008
2009
L'Oréal (S) Pte Ltd
13.2
13.7
14.2
14.7
15.4
Procter & Gamble (S) Pte Ltd
11.9
12.0
12.1
12.6
12.8
Estée Lauder Cosmetics Pte Ltd
11.3
11.7
11.8
11.7
11.2
Shiseido (S) Co Pte Ltd
6.9
6.9
6.9
6.8
6.7
Beiersdorf (S) Pte Ltd
4.7
5.4
5.7
5.8
5.9
Clarins Pte Ltd
4.7
4.8
5.1
5.2
5.5
Kosé Singapore Pte Ltd
4.5
4.5
4.4
4.4
4.4
Johnson & Johnson Pte Ltd
3.3
3.8
3.8
3.8
3.8
LD Waxson (S) Pte Ltd
2.0
2.4
2.5
2.8
3.3
Body Shop (S) Pte Ltd, The
2.8
2.8
2.9
3.0
3.0
Kao (S) Pte Ltd
2.0
2.0
2.0
2.0
2.1
Fancl Asia (Pte) Ltd
1.8
1.7
1.6
1.9
1.9
Nu Skin Enterprises Singapore Pte Ltd
2.9
1.9
2.1
2.2
1.8
Unilever Singapore Pte Ltd
2.2
2.2
2.0
1.7
1.5
Chanel (S) Pte Ltd
1.3
1.2
1.3
1.4
1.5
Amway (S) Pte Ltd
1.1
1.1
1.1
1.2
1.3
Laneige Singapore Pte Ltd
0.7
0.8
0.9
1.0
1.2
Elizabeth Arden (S) Pte Ltd
1.3
1.2
1.2
1.2
1.0
Christian Dior Singapore Pte Ltd
0.8
0.9
1.0
0.9
1.0
Kanebo Cosmetics Inc
1.1
1.0
1.0
1.0
0.9
Simple Health & Beauty Group
-
-
-
-
0.8
USANA Health Sciences Singapore Pte Ltd
1.9
2.0
1.5
1.0
0.6
Unza Co Pte Ltd
0.7
0.6
0.6
0.6
0.5
Herbalife International Singapore Pte Ltd
0.5
0.5
0.5
0.5
0.5
Mandom Corp (S) Pte Ltd
0.4
0.4
0.3
0.3
0.3
Reckitt Benckiser (S) Pte Ltd
-
-
0.3
0.3
0.3
Lion Corp (S) Pte Ltd
0.2
0.2
0.3
0.3
0.3
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Skin Care Company Shares by Retail Value 2005-2009
% Retail Value rsp
2005
2006
2007
2008
2009
Rohto Pharmaceutical Co Ltd
0.3
0.3
0.2
0.2
0.2
Pharmacare Laboratories Pty Ltd
-
0.3
0.2
0.2
0.2
Sebapharma GmbH & Co
0.2
0.2
0.2
0.2
0.2
Ego Pharmaceuticals Pty Ltd
0.2
0.2
0.2
0.1
0.1
Galderma (S) Pte Ltd
0.1
0.1
0.1
0.1
0.1
Mentholatum Co Inc, The
0.1
0.1
0.1
0.1
0.1
Derma Tech Lab Pte Ltd
0.1
0.1
0.1
0.1
0.1
Accantia Health & Beauty Ltd
0.8
0.8
0.9
0.9
-
Hisamitsu Pharmaceutical Co Inc
0.4
0.4
0.4
0.2
-
Boots Co (Far East) Pte Ltd, The
0.3
0.3
-
-
-
Pfizer Pte Ltd
0.3
-
-
-
-
Kanebo Ltd
-
-
-
-
-
GlaxoSmithKline Singapore Pte Ltd
-
-
-
-
-
Private Label
0.9
0.8
0.8
0.9
0.9
Others
12.2
10.6
9.7
8.6
8.7
Total
100.0
100.0
100.0
100.0
100.0
Source: Euromonitor International 2010, Skin Care Singapore, Chicago, viewed 25 August 2010, <http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/Portal/DocumentView.aspx>.
2.3 Positioning
Porter‟s Generic Strategy is used to classify the positioning of Shu Uemura and its competitors, Bobbi Brown and Fancl. Figure 2.1 shows three generic strategies that an organization can undertake to attain competitive advantage: cost leadership, differentiation, and focus.
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Figure 2.1: Porter‟s Generic Strategy Model
Source: Social Media Marketing 2008, Applying the Marketing, United Kingdom, viewed 3 September 2010, <http://www.socialmediamarketinguk.com/2008/11>.
2.3.1 Cost positioning
In terms of cost positioning, SUCBO-AF, Bobbi Brown and Fancl position itself as a high cost product similarly. However, at a price of S$68 for a 150ml bottle, SUCBO-AF is the most expensive product among its competitors. Figure 2.2 shows the detailed illustration of Shu Uemura competitors‟ prices in the same volume at 150ml while Table 2.4 summarizes the positioning of the firms and their products.
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Figure 2.2: Prices of Cleansing Oil
Sources: Prices are taken from stores such as Robinson, Isetan and Watsons.
$0
$10
$20
$30
$40
$50
$60
$70
$80
L'Oreal
Estée Lauder
Fancl
Etude House
L'Oreal
Estée Lauder
Derma Tech Lab
L'Oreal
Kose
L'Oreal
Chanel
Chanel Precision -Gentle Makeup Cleansing Milk for Face and Eye
Lancome Bi-Facil Double Action Eye Makeup Remover
Beaute de Kose Makeup Remover For Eye Lip
L'Oreal Gentle Eye Make-Up Remover
Dermalogica Dermal Clay Cleanser
Clinique Acne Solutions Cleansing Foam
The Body Shop Cucumber Cleansing Milk
Etude House Baking Powder Cleansing Milk
Fancl Mild Cleansing Oil
Bobbi Brown Cleansing Oil
Shu Uemura Cleansing Beauty Oil Premium A/O Advanced Formula
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Table 2.4: Positioning of Firms and Products
High Cost Positioning
Low Cost Positioning
L’Oreal
Shu Uemura‟s Cleansing Beauty Oil Premium A/O Advanced Formula
Lancome Bi-Facil Double Action Eye Makeup Remover
The Body Shop Cucumber Cleansing Milk
L'Oreal Gentle Eye Make-Up Remover
Estée Lauder
Bobbi Brown Cleansing Oil
Clinique Acne Solutions Cleansing Foam
-
Fancl
Fancl Mild Cleansing Oil
-
Etude House
-
Etude House Baking Powder Cleansing Milk
Derma Tech
Dermalogica Dermal Clay Cleanser
-
Kose
Beaute de Kose Makeup Remover For Eye Lip
-
Chanel
Chanel Precision Gentle Makeup Cleansing Milk for Face and Eye
-
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2.3.2 Comparison of Product Positioning
Table 2.5: Product Positioning
Shu Uemura
Fancl
Bobbi Brown
Cost
Highest cost comparatively
High cost
High cost
Focus Segment
Particular Segment only
Particular Segment only
Particular Segment only
Age group: 25-40
Age group: 20-30
Age group: 25-40
Product Differentiation
Yes
(due to the variety in cleansing oil)
No
No
Positioning of Brands
A combination of Differentiation and Focus
Focus
Focus
From the information above, Shu Uemura is positioned as using a combination of Differentiation and Focus Strategies whereas Bobbi Brown and Fancl uses the Focus Generic Strategy (Table 2.5).
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3 Identification of Target Market(s)
3.1 Primary Target Market of Shu Uemura & Competitors
Table 3.1 will elaborate on the market segmentation of Shu Uemura and its competitors, Bobbi Brown and Fancl based on the demographics, psychographic and behavioural of the targeted consumers.
Table 3.1: Classifications of Target Market
Main Brand
Competitor 1
Competitor 2
Shu Uemura
Fancl
Bobbi Brown
Demographic
Target group: working women between 25 to 40 years of age
Ability to afford the prestige pricing of S$68 per 150ml Japan (Shu Uemura 2010).
Its primary target market includes the female under class (teenagers) and working class of age group from 20 to 30.
Markets its cleansing oils in magazines such as CLEO, Her World and SimplyHer which caters to the teenagers and working class (Fancl 2010).
Pricing of S$41.25 per 150ml of cleansing oils, it is much more affordable than Shu Uemura and thus able to accommodate to those with lower purchasing power (Fancl 2010).
Its target group consists of the female working class, between ages of 25 and 40.
Also looks after the mature ladies. This can be seen in its effort to engage models of older ages to be featured in their advertisements (Bwgreyscale 2010).
At a price of S$37.50 per 150ml of Bobbi Brown‟s cleansing oil
Much more affordable product as compared to Shu Uemura (Bobbi Brown 2010).
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Psychographic
Working class perceived to have a set of human characteristics that is associated with a brand, which is also known as brand personality.
“Sophisticated” dimension of brand personality
Wants to be regarded as upper class and charming (Quester et al. 2007).
Shu Uemura associated its brand with such image by selling high end products with premium pricings and places itself only in top shopping centres such as ION and TANGS (Shu Uemura 2010).
“Excitement” dimension of brand personality as they are
Imaginative and spirited in the sense that they came up with the Fancl Washing Powder which worked hand in hand with the cleansing oil to lift up dirt and impurities more effectively (Fancl 2010).
“Sophistication” dimension
Brand is often referred to as upper class and charming.
Location falls in the premium district area like Orchard and VivoCity which caters to the working class, similar to Shu Uemura (Bobbi Brown 2010).
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Behavioural
Heavy user group of cleansing oil as their job usually requires them to put on makeup on a daily basis.
Prefer an effective and reliable cleansing product.
Shu Uemura handle such behavioural components by ensuring that their cleansing oil is reliable in removing make-up and impurities in a single step while protecting the skin‟s delicate balance (Shu Uemura 2010).
Female teenagers whom may be working part time and the female working class are heavy users of cleansing products as they are required to apply make- up very regularly.
Look for benefits in the cleansing oil such as easy removal of make-up and simple rinsing without a trace of oiliness.
Fancl‟s cleansing oil is able to attain such benefits with ingredients such as Meadow Foam Oil which can help to dissolve keratin plugs (Fancl 2010).
Heavy user of cleansing oils as they are required to apply make up for at least five days a week.
A product of high quality which can effectively remove all traces of makeup and at the same time maintaining the skin‟s natural moisture level is important.
Bobbi Brown look to these needs by including olive and jojoba oils and ginger root extract to calm the skin and leaving it soft and supple (Bobbi Brown 2010).
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3.2 Potential Market Segment
Illustration 3.1: Limited Edition Moyoco Anno Cleansing Oil
Source: Shu Uemura 2010, Lmited Edition Moyoco Anno Cleansing Oils, Shu Uemura, USA, viewed 23 Aug 2010, <http://www.shuuemura-usa.com/_us/_en/skincare/limited-edition-moyoco-anno-cleansing-oils.aspx>.
We would recommend SUCBO-AF to younger female working class of ages from 18 to 24 since there is an increasing trend of applying make-up within this group. Females in this group who likes to read magazines for entertainment are easily influenced by magazines such as CLEO which teaches them how to apply and remove makeup. This recommended target group would appreciate maximized benefits of the product since they are paying a fairly high price for it in consideration of their salaries. Shu Uemura‟s limited edition Moyoco Anno cleansing oil also features anime pictures on the bottles which can be seen as an effort to attract females in this age group.
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4 External Influences
4.1 Culture and Subculture
According to the research done by Datamonitor (2009) to examine consumer attitudes and behaviours in Asia Pacific, it was found that consciousness about appearance is more prevalent in society today, emphasizing the self-oriented values of people. This is known as a visual culture.
Trends
Implications
The high prevalence of appearance body shape anxiety is at the core of „appearance-based wellbeing‟ (or lack of it).
Appearance concerns impact of consumers‟ emotional and physical wellbeing so looking good has arguably never been more important.
A more holistic pursuit of beauty through more diverse appearance management tactics is occurring among Asian beauty shoppers.
Health, wellbeing and beauty are becoming inextricably linked in consumers‟ minds.
Adopting structured and sustained beauty regimes.
Consumers globally attach considerable importance on their oral, skin and hair health respectively which drives spending and the adopting of beauty regimes.
The polarization of beauty ideals/ attitudes reflects the conflict between natural beauty and more 'manufactured appearances‟.
Manufacturers are retailers must adopt diverse product portfolios in order to meet the polarized beauty ideals among global consumers.
Source: Datamonitor 2009, Profiting From Consumer Mega-Trends in Asia Pacific: Health, Datamonitor, viewed 3 September 2010, <http://www.datamonitor.com/store/Product/toc.aspx?productId=DMCM4705>.
The above trends indicate that people desire to project a more confident and favourable image, thus investing more in beauty and skincare products. SUCBO-AF, being a high performance product in which the formula invented, totally differs from any other skincare
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products and hence provides a cutting edge in protecting the skin‟s balance as well as appealing especially to the group of working adults whose age range from 25 to 40 years old. This female working class is both socially and economically independent. They are also more knowledgeable about products as they are familiar with marketing campaigns, and they tend to share their opinions on the product with their friends and colleagues.
4.2 Demographics
With an intended target market of Generation X and Y for SUCBO-AF, the Generation X consumers tend to be more pragmatic and conscious of the product‟s quality while the Generation Y consumers have more spending power and are more receptive towards new products and formulas (Osono 2008).
Next, with regards to gender influence, it is obvious that the majority of SUCBO-AF‟s consumers are females because to begin with, it is a product catered initially to females and secondly, female consumers will tend to spend without any worry on the constant pursue of beauty since cleansing oil is a critical mean of enhancing beauty.
Socioeconomic factors include education, income, type of occupation, place of residence, and could also refer to heritage and religion (NCREL 2009). SUCBO-AF is relatively expensive and consumers need to have high earning power in order to be able to afford the product. Since the working class is more affluent as compared to the unemployed, they are a more likely group to purchase the product.
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4.3 Group influence
Reference group refers to the group that has the ability to influence a person‟s behaviour and attitude (Kendall 2009). The three types of reference group influences include informational, normative, and identification. The type of influence of the product, identified by our group are informational and identification.
According to Quester et al. (2007), informational influence occurs when consumers view the behaviours and opinions of reference group members as useful information. For SUCBO-AF, the reference group that provides the informational influence are the makeup artists, such as celebrity makeup artist, Andy Lee, who recommended SUCBO-AF to the public. Through word-of-mouth, consumers will be highly influenced by these artists.
Consumers may be influenced when they use the perceived group norms and values to serve as a guide for their own attitudes (Quester et al. 2007). This is known as identification influence. Consumers will prefer using the same product if there are an increasing number of friends using it. This will trigger the need of belongingness, which will be elaborated more in section 5.1 of the report.
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5 Internal Influences
5.1 Needs and Motives
Shu Uemura, having positioned itself as a high performance product in the consumer market, has the ability to motivate and induce people into buying its product. With the new green tea cleansing oil introduced, the needs and motives of the targeted consumers can be met. This can be explained using the Maslow‟s hierarchy of needs.
According to Nevid (2008), motivation is concerned with the behaviours of an individual; the factors that affect his or her actions and direction. Using the Maslow‟s hierarchy of needs theory, it can be explained that consumers are trying to satisfy two needs in the hierarchy; belongingness and esteem. McShane and Travaglione (2007) stated that belongingness needs include love, friendship as well as interaction and group acceptance, while esteem needs include self-esteem, status and prestige. In this context, consumers will want to use the cleansing oil to protect their skin while removing make up so that their complexion stays in good condition and would not feel inferior when socialising with others. Next, the esteem needs are satisfied as Shu Umeura is a distinctive brand name in the cosmetic industry. Thus using its products would associate the consumers with the brand and the prestige that it brings along. Furthermore, consumers also gain self-esteem when their skin looks good.
5.2 Perception
Perception is the process whereby consumers receive and store information through a series of interlinked activities (Quester et al. 2007). This process involves three steps: exposure, attention and interpretation.
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5.2.1 Exposure
Exposure occurs when one of the consumer‟s five senses comes into contact with the stimulus (Sharma 2006). This process is important as it is the main form of communication between marketers and consumers. Shu Uemura currently promotes its cleansing oil through newspapers and magazines (Illustration 5.1). These advertising channels have help Shu Uemura gain higher exposure to the consumers.
Illustration 5.1: Shu Uemura advertisement on newspaper (left) and magazine (right)
5.2.2 Attention
Attention occurs when the stimulus catches the consumer‟s interest. A good marketing message would induce the consumers to find out more information about the product (Quester et al. 2007). To grab the attention of consumers, advertisements for Shu Uemura‟s cleansing oils appears in attractive colours and packaging (Illustration 5.1). As for SUCBO-AF, it comes in an attractive green colour that is soothing for the eyes (Illustration 5.2).
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Illustration 5.2: Brochure for SUCBO-AF
5.2.3 Interpretation
Interpretation refers to how an individual judge and value a stimuli. When a stimulus is complex and requires certain degree of interpretation, consumers rely more on their beliefs and behaviours to make sense (Tellis 2004). It involves only cognitive response.
Cognitive interpretation is a process whereby stimuli are placed in existing categories of meaning (Mowen & Minor 2001). When SUCBO-AF was first introduced, consumers would most likely compare it with other skin care products for evaluation. But with further marketing promotions, consumers will gain detailed knowledge and information about the product, thus they are able to differentiate it from other products.
5.3 Learning
The learning theory that is most applicable for this product would be operant conditioning. According to Quester et al. (2007, p. 269), operant conditioning refers to “the process of learning whereby the consumer‟s response to a stimulus is either reinforced by a reward or discouraged by a punishment”. The reward or punishment will be the feeling and the outcome that the consumers experienced after trying the cleansing oil. Shu Uemura uses the operant
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conditioning approach whereby they provide a complimentary 4-day trial samples at their counters. This allows new customers to experience the effect of the SUCBO-AF before making the purchase decision. Thus, if consumers realised the effectiveness of the cleansing oil and feels good about their clean and healthy skin, they will develop good feelings towards the product. This will in turn lead to consumers purchasing the product. Likewise, if consumers do not think that the cleansing oil is good enough, they will have negative feelings towards the product and not purchase it.
5.4 Lifestyle
Lifestyle refers to the way of living of individual or families. Botha, Strydom and Brink (2005) stated that lifestyle is used to discover how people spend their time, what they find interesting and how they view themselves and the world around them. As mentioned earlier, the target group of SUCBO-AF are females aged 25 – 40. This target segment comprises of mainly working adults who lead a busy life. They have to compromise both work and family responsibilities which may be challenging. Therefore, they may place different priorities on the benefits that the product can provide. They might have a greater preference for convenience of use rather than brand popularity due to busy lifestyle.
However, this does not mean that consumers who do not belong to this group are not suitable to use the product. For example, young adults between 18 to 24 years old (Generation Y) are spending more time and money on skincare products which offers opportunities to companies to develop and market new products. Compared to their predecessors, they are more self-conscious about how they look.
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6 Consumer Decision Making Processes
6.1 Types & Amount of Information Search
Consumers may have many queries regarding SUCBO-AF before they purchase the product. Some of the queries include the price of the cleansing oil, the suitability of the product, the ease and performance of the product and the differences in formula between the new and old Green Tea Cleansing Oil.
The types of information a consumer needs can be classified into two categories, internal and external information, as illustrated in Figure 6.1.
Figure 6.1: Types of information
Source: Perners, L 1999, Consumer Behaviour: The Psychology of Marketing, Consumer Psycholost, California, United States of America, viewed 14 September 2010, <http://www.consumerpsychologist.com/>.
As SUCBO-AF uses special advanced formula and ingredients instead of traditional ingredients used by its competitors, internal information search such as memory and personal experiences will not be adequate for consumers to make a purchase decision, especially when this newly formalised product is fresh in the market. Thus, consumers will be required to undertake external information searches such as enquiring more knowledge of the product
Advertisements, peoples’ opinions
Internet search, participating in forums, approaching sales personnel
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through forum discussions, listening to people‟s opinions, visiting Shu Uemura‟s website and approaching sales personnel for more in-depth and expertise information.
6.1.1 Level of Involvement
The general targeted consumers of SUCBO-AF are females born between the year 1970 and 1985, consisting of mostly Generation X and Y people. Generation X has been viewed as a generation marked by an independent spirit and that they are less likely to establish brand loyalty due to their sceptical and non-committal characteristics (Charters & Fountain 2006). On the other hand, Generation Y differs from that as they tend to be more fickle-minded and they are receptive to new things, such as technologies and products, and most importantly they are big spenders compared to the previous generations (Gronbach 2008).
Because the targeted consumers of SUCBO-AF spans between the ages 25- 40 years old, the level of involvement is relatively the same as this group of consumers are usually those in the workforce. Those who are employed will have lower purchase involvement than those who are unemployed as their income allows them to have higher disposable cash.
6.1.2 Level of Decision Making
According to Quester et al. (2007), the level of decision making is differentiated into three distinct categories namely habitual decision making, limited decision making and extended decision making. The three categories can be classified as low, medium and high level respectively (Reisinger 2009). The lowest level is known as the „routinised purchase behaviour‟ stage; where it results in repeat purchasing behaviour and it usually involves very low purchase involvement. As the level increases to the higher stages, the purchase involvement escalates gradually and eventually reaches a very high purchase involvement in
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the extended decision making stage. As such, the relative importance of external information search increases as consumers move towards the higher level.
With a high price level but yet low purchase involvement of SUCBO-AF‟s consumer, the level of decision making is analysed to be limited decision making.
6.2 Evaluation of Brand
SUCBO-AF belongs to the skincare and cosmetics division. The possible different brands that consumers will evaluate could be Bobbi Brown and Fancl products. SUCBO-AF is analysed to be in this segment‟s evoked set as the product was heavily advertised as an effective anti-ageing skincare which suits the consumers that are in their 30s to 40s. Furthermore, this product has a superb cleaning ability that removes long-lasting makeup which will please the younger consumers (Shu Uemura 2010). However, the evaluation of the brands differs from one another as there may be different importance on evaluative criteria.
6.2.1 Criteria in Evaluating of Purchase Decision
Under the skincare and cosmetics category, there are various criteria as listed in Table 6.1 showing how consumers evaluate the different brands.
Table 6.1: Attributes when evaluating skincare and cosmetics products
Suitability of product to skin conditions
Price
Design and packaging of the product
After effect of the product
Reputation of the brand
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These are common evaluating criteria but their relative importance varies among individuals. The decision rule adopted by consumers also affects the selected products eventually.
6.2.2 Decision Rules
Decision rules are strategies consumers used to choose among alternatives. According to Pligt (1996), there are five decision rules that consumers will use, either individually or in combination when making a decision. They are compensatory, conjunctive, disjunctive, lexicographic and elimination by aspects rules. We have identified that the elimination by aspects decision rule is used mainly by consumers in buying skincare and cosmetics products.
6.2.2.1 Elimination by Aspects Decision Rule
The elimination by aspects rule is usually described as a combination of the lexicographic and conjunctive rule whereby the most important attribute is selected and all other alternatives that fail to meet the criterion on this attribute are eliminated. The consumer will select the brand and product that performs best on his or her most critical personal attribute. Table 6.2 shows the elimination by aspects rule, done on SUCBO-AF and its main competitors.
Table 6.2: Elimination by Aspects Rule on SUCBO-AF and its competitors
Attributes
Rank
Cut-off Point
Shu Uemura
Bobbi Brown
Fancl
After effect of the product
1
4
5
2
4
Suitability of product to skin conditions
2
4
4
3
3
Reputation of the brand
3
4
4
3
4
Price
4
3
3
3
4
Design and packaging of the product
5
2
3
2
2
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6.3 Shopping Behaviour
There are several attributes that may affect consumers‟ shopping behaviour and retail outlet selection. These attributes are discussed as follows.
6.3.1 Consumer Characteristics
It is important to consider the social and psychological risks upon the purchase of the product as it reflects the consumer‟s characteristics such as the expertise, mood, lifestyle and personality. For example, by purchasing SUCBO-AF, it articulates exactly why they like or dislike the brand and it also signifies the consumer‟s status when they purchase SUCBO-AF as their facial cleanser.
6.3.2 Retail Advertising
Advertising methods, which will be elaborated in Table 7.1, can also increase the consumers‟ awareness and likelihood of purchase.
6.3.3 Outlet Location
In shopping for a product, the outlet location can be considered as the most important priority for consumers as they would normally shop for the needed essentials at their convenience. As SUCBO-AF is considered as a higher end product, it can only be found in major departmental stores such as Metro, Isetan, Tangs, Robinsons and Takashimaya. Besides that, consumers can also adopt contemporary purchasing methods such as going through third parties like eBay, blog shops or forums.
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6.3.4 In-store and Pricing Influence
One of the major factors that motivate consumers to purchase SUCBO-AF over the other brands is price reductions, such as in-store discounts, promotional packages and free gifts or samples upon purchase. As Shu Uemura‟s products are being sold only in departmental stores, the location of the brand in the departmental store is equally important as this would capture the consumers‟ attentions and increase the likelihood of purchase. Additionally, the sales personnel that is promoting SUCBO-AF needs to actively engage in the promotion tactics as this will significantly influence the consumers‟ purchasing behaviour.
6.4 Postpurchase Behaviour
The possibility of postpurchase dissonance happening to consumers will most likely be low as the level of purchase involvement is relatively low. Features of higher end skincare products are generally similar and thus consumers will not feel that they have given up attractive features of the unselected brands. Similarly, even though consumers are not able to get a refund if they are dissatisfied after using the product, they can easily switch to alternative products or brands. However, skincare products are considered as a form of necessity and it is often thought of as one of the few important products that people will feel attached to. Thus, if there is any dissonance towards the SUCBO-AF, it will reflect badly on the brand.
6.5 Disposal
The disposals of SUCBO-AF are generally through the waste or have the product‟s plastic container sent for recycling. Alternatively, consumers who did not use the product may return it to Shu Uemura‟s counter within 7 days for an exchange or they may also engage in consumer to consumer sales either through the internet or other platforms.
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6.6 Loyalty
The potential targeted population consist of both Generation X and Y. Both generations are considered to be adventurous in trying out new products, it simply implies that they do not have brand loyalty, as they will be constantly trying out new and better products that are recommended either by the media or by their peers. This discourages brand loyalty towards SUCBO-AF.
Shu Uemura was shaped on the founder‟s holistic philosophy that quality skincare is essential to the creation of beautiful faces and as such, the brand uses only the most innovative skincare formulas and technologies to reveal every woman‟s beauty (Shu Uemura 2010). The promise of quality and constant searching of new formulas for their products could contribute to consumers‟ brand loyalty towards SUCBO-AF.
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7 Marketing Strategy
7.1 Comparison of 4Ps (Product, Price, Promotion and Place) between Shu Uemura and Bobbi Brown
Table 7.1: Comparison of marketing strategies between Shu Uemura and Bobbi Brown
Shu Uemura Cleansing Oil
(Chosen)
Bobbi Brown Cleansing Oil
(Competitor)
Product
Role of a pioneer in cleansing oil
Known as effective, reliable and reputable.
Wide range of cleansing oil that caters various skin conditions
Cleansing oil removes both makeup and impurities in a single step, unlike those individual makeup removers or cleanser sold in the market.
Product is consistent with the brand‟s position as it is perceived to be a premium product with high performance formula.
Considered as an innovation as new ingredients are added into the previous formula.
Continuous innovative as it has a limited effect on existing consumption patterns; it is used the same way as before (Hoyer & Macinnis 2009).
Fulfilment of felt need could hinder rapid diffusion because not all ladies feel that there is a need for cleansing oil as there are other more
Well-known brand in the skin care industry.
2 in 1 formula that removes all makeup & cleanses skin.
Does not consider as an innovation as no improvement of product is made.
Marketing effort and fulfilment of felt need could impede rapid diffusion as Bobbi Brown did not market their cleansing oil well since they are more focus on their cosmetic products and there are other more affordable make-up removers in the market.
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affordable makeup removers in the market.
Price
$68.00 (150 ml)
Price is not an important evaluative criterion as it indicates their status.
Products have to be priced at a prestige level to indicate their status.
However, if the price of the product is reduced, target segment will increase their purchase as this product falls under the limited decision making process.
$37.50 (150 ml)
Price is an important evaluative criterion.
Price is not relevant as an indicator of status.
If the price of the product is reduced, target segment will increase their purchase as this product falls under the limited decision making process.
Promotion
Celebrity makeup artist, Andy Lee, recommended SUCBO-AF
Advertise on The Straits Times and Women‟s beauty magazines, such as Bazaar, (Appendix A) Cleo and Female
Complimentary brochures and 4-day trial samples were given out at their counters (Appendix B)
In-store display and posters of cleansing oil
Road shows at various locations
Bundled deals were available at the road shows
Purchase 3 bottles of Shu Uemura Cleansing oil (50ml)
Advertisements from Women‟s beauty magazines, such as Cleo and Female
As skincare products enhance appearances, the quality and reliability is the most important to the consumer.
Purchase 1 bottles of Bobbi Brown Cleansing oil (200ml) at $50 and receive $10 voucher
Complimentary brochures and 2-day trial samples were given out at their counters
In-store display and posters of cleansing oil
Hold road shows at various locations
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at $45 (Appendix C)
Purchase any cleansing oil (450ml) and receive a skincare lotion (20ml) and a mini gloss unlimited
As skincare products enhance appearances, quality and reliability is the most important to the consumer.
Place
Most of their stores are located at the premium district area, such as Orchard Road and Cityhall which is consistent with the lifestyle of the target segment.
Most of their stores are located at the premium district area, such as Orchard Road and Cityhall which is consistent with the lifestyle of the target segment.
Shu Uemura had made a wise choice by advertising on The Straits Times and Women‟s beauty magazines, such as Bazaar, Cleo and Female, as this is one of the strategies that account for the product‟s success. Based on the 2007/2008 Nielsen Media Index study, The Straits Times is the leading choice of English newspaper with a daily readership of 39% of the market share and it is read by most Singaporean (Euromonitor International 2010), thus it is a good way to reach out to their target audience. Working ladies will also refer to beauty magazines for latest fashion and skincare products; hence, having full-page SUCBO-AF advertisements on these magazines would be relatively effective in attracting the attention of the segmented group (Lake 2009). Since SUCBO-AF is at the growth stage, advertising and brand awareness are important factors of influence.
Besides, new customers got to know Shu Uemura by operant conditioning; bottles of samples were distributed at their counters. After trying the 4-day trial samples of cleansing oil, consumers will tend to make the purchase if they like it therefore, their buying behaviour is being „shaped‟ (Quester et. al. 2007). This strategy not only contributes to the product‟s
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success by gaining market awareness but also, getting new customers to try and purchase their products. This supports the high-performance positioning as Shu Uemura must have the confidence in their product in order to give the samples out. This promotion tactic is better than having a price reduction. As price reduction can erode the brand equity, decrease its perceived value and increase consumer price sensitivity, it can even adversely affect long-term loyalty of consumers who perceive product of higher price with better quality (Shah & D‟Souza 2009).
Shu Uemura‟s pricing strategy is based on the premium product pricing so as to attract status-conscious customers. Berends (2004) explained that the product‟s prestige image and premium price is taken into consideration as part of the value provided in premium products pricing. Therefore it establishes a premium status for the owners. For example, when consumer perceived Shu Uemura as prestigious, they would purchase the product to reflect their status. Furthermore, in order to be perceived as a premium product, Shu Uemura has priced their cleansing oil higher than their competitors.
Shu Uemura has adopted the value-based pricing in their pricing strategy, where it chooses a price base on how potential customers perceive the value of the product instead of the cost to produce it (Jones 2008). Being the pioneer in cleansing oil, Shu Uemura is recognized for its quality and reliability. Additionally, the SUCBO-AF is enhanced with green tea and specially selected gingko leaf extract which has strong anti-oxidant and micro circulation properties that helps to promote transparency and radiance of fatigued skin (Shu Uemura 2010). Since Bobbi Brown and Fancl cleansing oil are suitable for all skin types, they might not have the after-effects produced by SUCBO-AF. Hence, consumers are willing to pay a higher price for SUCBO-AF as they value these exclusive elements. Both pricing strategies have influenced
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the beliefs of the consumers and as a result their buying behaviour will be affected by their cognitive attitude.
Quester et al. (2007) stated that a stimulus must be placed within the person‟s immediate environment for an individual to be exposed to the stimulus. Thus, the numerous road shows which were being held to promote SUCBO-AF has also played a part in the success of the product since these road shows were located at the premium shopping district, where Singapore working class ladies shop for their skincare products, increasing their exposure to SUCBO-AF. Furthermore, to be consistent with their premium brand image and the lifestyle of Shu Uemura‟s target segment, most of their stores are located at the central district area. This includes Raffles Place, Orchard Road and Cityhall since most offices are located and the working women are usually concentrated in these areas.
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8 Evaluation and Recommendations
8.1 Evaluation
8.1.1 Advertisement
Both Shu Uemura and Bobbi Brown use the same advertising medium- Brochure. Their brochures are distributed over the counters and during road shows. The marketing campaigns of Shu Uemura are more effective in targeting the market segments as compared to Bobbi Brown. This will be explained in the following points.
8.1.2 Colour and Background
Taking a general approach, the colour green is being associated with the term „refreshing‟, which coincides with Shu Uemura‟s intention to portray this element in their product. This is congruent to the cognitive component in the tri-component attitude model which reflects consumer‟s belief and knowledge about an attitude object.
Similarly, Shu Uemura uses both green and white to reflect nature, this is to indicate natural products used by Shu Uemura to its consumer, whereas Bobbi Brown uses gold, black and white which signifies sophistication and prestige. Both brands are similar in using colours to entice buying behavior however, our group feels that Shu Uemura is more effective in contributing to the overall success of the product since there is an increased demand of skincare products with natural ingredients.
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8.1.3 Format and Information Quantity
The front cover of Shu Uemura‟s brochure is complex in terms of how the message is presented. However, its content is informative enough to allow consumers to make a more informed decision. This serves as a necessary source for skincare products as limited decision making is made, based on its high retail price but yet a low purchase involvement for its intended consumers.
Shu Uemura‟s brochure not only provides diagram illustration for usage, ingredients and numeric performance of its product but, it also promotes its other types of cleansing oil. On the other hand, Bobbi Brown‟s brochure cover reflects simplicity, straight-forwardness in the presentation of its message but it lacks the necessary information about the product.
8.2 Recommendations
8.2.1 Product Positioning
SUCBO-AF should continue to be positioned as a high performance balancing cleansing oil for the working class females. Nonetheless, Shu Uemura can consider the input of humour and motivational factors in the taglines of their advertisements as this will tend to influence the consumers‟ purchase decision and at the same time position itself towards a younger generation.
8.2.2 Marketing Mix
8.2.2.1 Product Enhancements
Other than featured anime picture on Shu Uemura cleansing oil bottles, Shu Uemura could enhance its product by redesign its packaging. Bottles containing 100ml of cleansing oil could be manufactured; for travelling purpose due to the restricted amount of liquids carried
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onboard. Alternatively, cleansing oil could be capsulated into pills form for convenience. Instruction manual could also be printed at the back of the bottle, for the ease of new consumers.
8.2.2.2 Improved Marketing Communications
As mention above, consumers can be influenced by reference group member. Thus Shu Uemura can make use of this group to further improve on its marketing communication by endorsement of not only celebrity makeup artists, but also celebrities to its cleansing oil as the source is highly believable or likeable (Kotler et al. 2005). This can be further improved by using television advertisement where Shu Uemura lacks.
8.2.2.3 Improved Purchase Experience
Shu Uemura can enhance their customers‟ purchase experience by implementing a skin diagnosis system in all their counters. With a skin specialist around, Shu Uemura will be able to deliver professional advice to their customers and furthermore, this will give the consumers an added knowledge about their own skin condition.
8.2.2.4 Identifying Potential New Customers
Besides targeting women between ages of 25-40, Shu Uemura can consider the male market that seems to be more image-conscious in the modern era (Appendix D). These male individuals have a strong concern on how they look and are likely to use the Shu Uemura cleansing oil as a cleanser to remove dirt and impurities from their faces. Using a product that enables them to have good skin can also boost their self esteem and satisfy one component of Maslow‟s hierarchy of needs (McShane and Travaglione 2007).
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8.2.2.5 Enhancing Customer Satisfaction
Customer satisfaction can be increased by ensuring that the product produced is always of high quality. Shu Uemura should establish a toll-free hotline to allow consumers to provide suggestions and feedbacks on how the product can be improved. Shorter response time in responding to website queries should also be encouraged. By improving on products and caters to different needs of the consumers, Shu Uemura establishes a relationship with customers which in turn, creates high customer loyalty.
9 Conclusion
Consumers today tend to purchase differently as compared to the past due to the changes in the values and perceptions throughout every new generation. Hence, the constant study of consumer behaviour will allow marketers to understand the purchasing patterns of consumers. In addition, the understanding in a particular product or brand‟s environmental, such as situational, internal and external, influences will enable marketers to develop effective marketing strategies towards the sustainability of a product in its market.
(4772 Words)
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10 References
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North Central Regional Educational Laboratory (NCREL) 2009, Socioeconomics Status, NCREL, viewed 10 September 2010, <http://www.ncrel.org/sdrs/areas/issues/students/earlycld/ea7lk5.htm>.
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Sharma, AK 2006, Consumer Behaviour, Global Vision Publishing House, New Delhi, India.
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Shu Uemura 2010, Cleansing Beauty Oil Premium A/O Advanced Formula: For Aging Concerns, Shu Uemura, United States of America, viewed 26 August 2010, <http://www.shuuemura-usa.com/_us/_en/skincare/cleanser-makeup-remover/cleansing-beauty-oil-premium-ao-advanced.htm>.
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11 Appendix
Appendix A- Advertisement on The Straits Times and Women‟s beauty magazines
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Appendix B- Complimentary 4-day trial sample
Cleo Magazine advertisement on Shu Uemura‟s 4-day trial sample
Shu Uemura‟s SUCBO-AF Sample and Brochure
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Appendix C- Purchase 3 bottles of Shu Uemura Cleansing oil (50ml) at $45
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Appendix D- Male grooming products emerge as an important sector in the cosmetics and fragrance industry
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