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Strategies on Cosmetic MarketingSchool: Grade: . Major: . Student Name: . Student ID: . Advisor: . Heilongjiang UniversityMay 10, 201512Abstract The modern sense of the marketing ideological originally started in the early 20th century,the change that marketing research converted traditional economics into management science marked the beginning of the marketing management era, 4Pss proposed by expert have laid the foundation theoretical framework for the management of marketing. The major issues which our marketing academia and business circles are facing with currently are that how can mature international marketing theory integrate with China market in transition. Business marketing strategy is the main activity of the modern business marketing and whether the strategies are scientific is directly related to the success or failure. Hence, to make the business marketing activities operate and to achieve the expected economic benefits, we must research, analyze and evaluate the business marketing strategies. With the continuous development of the society, the cosmetics industry has become a shining star. In this paper, I analyzed the present situation of Chinas cosmetic industrys competition and summarized the marketing strategies of foreign brand-name cosmetics. I studied that how can domestic small cosmetics stand out in a highly competitive market and expand the market share by focusing on branding and marketing strategy. This has a very important practical significance for improving our ability and level of analyzing and solving problems.Key wordscosmetics industry, products, brands, marketing, strategy 摘要现代意义的市场营销思想最初始于20世纪初,营销从传统的经济学转入管理学研究,标志营销管理时代的开始,4个P理论的提出奠定了管理营销的基础理论框架,如何将国际成熟的营销理论与方法和中国转型市场完成对接,是当前摆在我国营销学界和企业界面前的一个重大课题。企业市场营销战略,是现代企业市场营销的主要活动,战略和策略制定是否科学,直接关系到企业营销的成败。因此,要使企业营销活动正常进行,取得预期的经济效益,就必须研究、分析和评价企业的市场营销策略。 随着时代的不断发展,化妆品行业俨然成为一颗闪耀的巨星。本文深入分析我国化妆品行业的市场竞争现状,总结分析了国外名牌化妆品的营销策略,重点从品牌和营销策略出发,研究国内中小化妆品如何在竞争激烈的市场上脱颖而出,扩大市场份额。对于提高自己分析问题、解决问题的能力和水平,具有非常重大的实际应用意义。关键词化妆品行业,产品,品牌 ,营销 ,策略ContentsAbstractI摘要II1. Introduction22. Overview of Marketing Theory22.1 Traditional Marketing Theory22.2 4Ps Theory22.3 SWOT analysis23. 4Ps Theorys Application of Three Brands Marketing Strategies23.1 Product Strategies23.1.1 Product Strategies Applied in Avon23.1.2 Product Strategies Applied in Natural Republic23.1.3 Product Strategies Applied in Pehchaolin23.2 Price Strategies23.2.1 Price Strategies Applied in Avon23.2.2 Price Strategies Applied in Natural Republic23.2.3 Price Strategies Applied in Pehchaolin23.3 Place Strategies23.3.1 Place Strategies Applied in Avon23.3.2 Place Strategies Applied in Natural Republic23.3.3 Place Strategies Applied in Pehchaolin23.4 Promotion Strategies23.4.1 Promotion Strategies Applied in Avon23.4.2 Promotion Strategies Applied in Natural Republic23.4.3 Promotion Strategies Applied in Pehchaolin24 SWOT Analysiss Application of Three Brands Marketing Strategies24.1 Strength Analysis24.1.1 Strength Analysis of Avon24.1.2 Strength Analysis of Natural Republic24.1.3 Strength Analysis of Pehchaolin24.2 Weakness Analysis24.2.1 Weakness Analysis of Avon24.2.2 Weakness Analysis of Natural Republic24.2.3 Weakness Analysis of Pehchaolin24.3 Opportunity Analysis24.4 Threats Analysis2Conclusion2References2Acknowledgements2Strategies on Cosmetic Marketing1. IntroductionIn this paper, I used the Avon of United States, Natural Republic of South Korea and Pehchaolin of China as examples. Avons marketing strategies are the most persuasive as it is the world-famous brand of cosmetics. South Korea has advanced technologies of producing. Although Natural Republic is an emerging brand, it can quickly capture the market shows the advantage of its marketing strategies. Pehchaolin is a Chinese historic brand and it is constantly improving their marketing strategies in order to occupy more market share under the impact of the age.I referenced the 4Ps theory and SWOT analysis, through analyzing and comparing with the three companies marketing strategies to find out the advantages or areas for improvement and excellent marketing strategies that we can learn from.2. Overview of Marketing TheoryMarketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at-large. 2.1 Traditional Marketing Theory For marketing, western scholars have given hundreds of definitions, the following are more representative.In 1960, American Marketing Association (AMA) defined marketing for “marketing is a business way which guides the goods and services from producers to consumers or users”. E. J. McCarthy held that marketing is the business activity that guides the goods and services from the producers to the consumers or users in order to satisfy customers and achieve business goals. This definition is more advanced than the previous one by AMA because it has clearly pointed out the companys business goal is to meet customers needs and make profit. It can be seen from the above definition that with the development of the social economy and the deepening of human understanding, the connotation and denotation of the marketing have been greatly enriched and expanded. The process extended forward to a variety of activities in the field of production and pre-production and back to the consumers after the end of the sale. Its content expanded to market research, market segmentation, product development, pricing, select distribution channels, advertising, promotion, service, information feedback and other aspects.2.2 4Ps TheoryE. Jerome McCarthy, the professor of the University of Michigan, has attributed the elements of the companies marketing strategies to a combination of four basic strategies for the first time in his Basic Marketing in 1960. This was known as the 4Ps theory: product, price, place, promotion.4Pss proposed laid the foundation theoretical framework for the management of marketing and provided theoretical guidance and time methods for business marketing management.In 1967, Philip Kotler further confirmed the core position of 4Ps method in his best-selling book Marketing Management: Analysis, Planning and Control (the first edition). Hence, 4Ps is the starting and ending point and it is the basic business marketing tool, it has real and great guiding significance for Chinas enterprises. 2.3 SWOT analysis SWOT analysis is also known as situation analysis, it is a more objective and accurate way to analyze and study the realities of a unit which was introduced in the early 1980s by a management professor of University of San Francisco.The four letters of SWOT represent: strength, weakness, opportunity and threats. Overall, SWOT can be divided into two parts: the first part is SW which is mainly used to analyze the internal conditions; the second part is the OT which is mainly used to analyze the external conditions. Using this method we can find out the effective and commendable factors as well as the disadvantages that we should avoid. Discovering solution to solve problems and identify the future direction of development.3. 4Ps Theorys Application of Three Brands Marketing StrategiesAs the marketing guidelines, the better application of 4Ps is the key to the success of each brand. By investigation and research, this paper summarized how the three brands use 4Ps with their own realities effectively.3.1 Product Strategies Product means the goods-and-services combination the company offers to the target market. With the rapid development of science and technology, the demands of consumers have become more and more personalized and the deepening of market competition resulted in an amplification of connotation and denotation of the products. The most basic level of product is the core interest which offers basic utility and benefit of the product for consumers, this is also the benefits and services that consumers really want to buy. In the case where the core functions of products are substantially the same, the company who can faster, more and better meet the complex needs of the interests of consumers will be able to have the consumer, market share and gain advantages. The famous American management expert Levitt once said “The new competition is not the products that factories manufactured but the one who can give products with packaging, services, advertising, consulting, financing, delivery, or other things which customers mostly care about outside the factory.”3.1.1 Product Strategies Applied in Avon Through investigation, analysis and statistics, Avons products are classified as: skin care accounted for 35%, hair care accounted for 28%, beauty accounted for 24%, and 8% for perfume. This shows that skin care products are still the mainstream for consumers. Avon used rich types of brands to provide consumers with more choices and possibilities. In order to better reflect the famous brand which leads the fashion trend of beauty, Avon selected different product marketing strategies. Depending on the different colors and skin types of consumers, Avon recommended suitable products and beauty solutions to fully meet the different needs of consumers and attract to more buyers. The ultimate goal is to expand the consumption of various products. Avon is not only focus on promoting their mature products, but also dedicate to the introduction of new products. The most representative thing is that the development and launch of the new products is closely related to the season. This method greatly satisfies the needs of female who want to pursuit new things and distinctive.3.1.2 Product Strategies Applied in Natural Republic As we all know, South Korea is a big country of cosmetics, its manufacture and R & D (research and development) technologies are very mature. Natural Republic like a dark horse stood out in such a competitive market by its unique products. Natural Republic products are made from raw materials of natural green plants and it uses patented technologyMD WATER which is independently developed by the company itself. The products have no irritation and injury on the skin and comply with the standard of European organic skincare. All the products adhere to the concept of environmental protection and away from the pollution. Whats more, there is no chemical scent with the products. The products suit for any type of skin because it is from pure plant and this is also an important reason for its huge consumer group. Besides the basic skin care series, Natural Republic has also developed the make-up series to occupy a larger market share.3.1.3 Product Strategies Applied in PehchaolinPehchaolin is one of the few historical famous cosmetics manufacturers of China. The brand has a long history which gives it a brilliant performance and the highly reputation of quality. The company dedicated to creating high-quality and mild natural skin care products for consumers. The safety of skin care is the fundamental way for Eastern, thus Pehchaolin held the stimulating herbal skin care methods. In aspects of product technology, it used a unique technology called “ extraction from cold soaking” that can retains the greatest degree of completeness of herbal essences in order to distinguish it from other cosmetics products. It changed its image of cheap old products for consumers with the introduction of herbal essence series.The company followed up the victory of herbal essence series and introduced more products series. The design of each series has different effects for groups of people with different skin characteristics. 3.2 Price Strategies Price is the amount of money customers must pay to obtain the product. Each product has its competitors in this highly developed society and how to price their products has become an important issue for a brand. Commoditys price cant be immutable but should be adjusted in different seasons, months, and even the festival. The purchasing power of different consumer groups is the decisive factor in pricing.3.2.1 Price Strategies Applied in AvonThe products of Avon have different prices for high, medium and low-end products. Prices of generally facial cleanser, lipstick, etc. should have to make the mass consumer to accept, but the high-end products such as the perfume of little gold dress series must suit for consumers with better economic conditions. This method reflects the principle that wed better to set different prices according to different consumers.3.2.2 Price Strategies Applied in Natural Republic The prices of products for Natural Republic are based on the selection of raw materials. For example, products like aloe facial cleanser and aloe vera gel that belonging to the series of aloe moisturizing are relatively lower because aloe vera is a relatively common raw material of skin care. At the same time, it also prepared a series of Polynesia for high-end consumers. Polynesia series used the water from Polynesian lagoon and the native essential minerals in the lake. It can smooth wrinkles, bring precious nutrients for the skin to keep it youthful.3.2.3 Price Strategies Applied in Pehchaolin Firstly, China is a developing country, and the major group of consumers for Pehchaolin is oriental females who are more frugal. On the other hand, the companys traditional position is inexpensive. As I mentioned before, the purchasing power of different consumer groups is the decisive factor in pricing. All of these factors determine that its pricing cant be high.3.3 Place StrategiesPlace includes company activities that make the product available to target consumers. The famous marketing master Philip Kotler once said “market positioning is the soul of the entire marketing”. Indeed, all the successful brands have the same feature that to accurately convey the information of brand positioning to consumers. Market positioning is not the action for product itself but the creative thinking activities for existing products and potential consumers.3.3.1 Place Strategies Applied in Avon Avons success is mainly due to its diversified channels of marketing model such as beauty counters, specialty stores and online sales. To start with the counter sales, there are often unfavorable factors like high cost and slow payment for setting up counters in large shopping malls. However, the feature that large shopping malls have larger passenger flow volume is favorable for the spreading of brand. Secondly, the establishment of Avon store that can not only sell products but also offer beauty services has realized the depth distribution.3.3.2 Place Strategies Applied in Natural Republic Natural Republic listed in 2009 in South Korea expanded overseas markets in the same year. Creating such a good sales volume in less than a year shows that it has a wealth of distribution channels. Natural Republic has opened many stores in Dongdaemun, Myeongdong, Cheongdam-dong and Hongdae which are famous shopping centers in South Korea to expand brand awareness and increase sales. For overseas markets, it is very successful in the application of internet marketing and overseas purchasing and other advanced marketing tools.3.3.3 Place Strategies Applied in Pehchaolin The sales channels of Pehchaolin are mainly in the large shopping supermarkets because its price is relatively affordable which ranging from RMB 20 yuan to100 yuan for ordinary people. Marketing in such places can adapt to the needs of its major consumers and it can take a certain degree of a combination package, discounts and other means to catch the eyes of consumers. As online shopping has become a new fashion, it has also set up flagship stores on Taobao, JUMEI and other web sites in order to enhance the brands market sales.3.4 Promotion StrategiesPromotion means activities that communicate the merits of the product and persuade target customers to buy it. Promotion is a turning point and the key of commodity marketing and it is a way of informing potential buyers about the products. There are many ways for promoting such as advertising, personal selling, sales promotion, publicity and so on.3.4.1 Promotion Strategies Applied in Avon Avon made a lot effort in media campaigns, it teamed up with Hollywood, hired actress Reese Witherspoon, MTV star Lauren Conrad, Bond girl Gemma Atkins Dayton and the actor Patrick of the hit TV series Greys Anatomy to advertise their products. Avon invited the actress Zoe Saldana of the Avatar as the spokesperson for Eternal Magic perfume recently. For the price discount, Avon has also used many methods. Avons marketing program is based on month by launching a new product every month. It provides recommendation of several series and then gives discounts to part of the products. It also implements the system of integral and membership to establish old customers. Members can get a brochure of the monthly new product and have some preferential when buying products.3.4.2 Promotion Strategies Appl
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