Being the leading cosmetics company in Japan and one of the largest in the world, Shiseido requires strong marketing strategies to meet the needs of its consumers. To maintain its high status in the market, it depends on the tactics of marketing mix, its unique selling point, and its growth strategies. MARKETING MIX Promotion No matter how good a product is, it would never get noticed by consumers if there is no form of promotion. The most recent promotion in Singapore would be the Shiseido “Wrapped in Joy” promotion for the Christmas season.It gives away complimentary skincare products with every purchase of a Shiseido Christmas set.
This benefits the company as it can earn profits from the purchases and at the same time promote its products. Shiseido also promote their products through personal selling. During the launch of the Majolica Majorca brand in Singapore, there were around five sales assistants around to give makeovers and advice on the new products. This will draw in customers as they were allowed to test out the products first. In addition, Shiseido Singapore employed nine popular Singaporean bloggers to rave about their favourite Majolica Majorca products.
Occasionally, this makeup line in Watsons goes on a twenty percent discount which attract existing and new buyers. It also hired internationally known celebrity, Ayumi Hamasaki, to endorse some products to raise popularity. Pricing The prices of most Shiseido products are usually slightly higher than the average cosmetics prices, but there are still affordable to most buyers. It is appropriate as its target customers are women aged 25-35, who belong to the working class and can afford these products. To such buyers, products with higher prices are deemed to be more effective than those with lower prices.Especially since Shiseido is a major company in terms of size and age, and has a good reputation, the value of its products is naturally higher. However, within these years, the company has also released cosmetics lines with lower pricing to attract consumers of a younger age group and the cash-strapped consumers, such as ZA and Majolica Majorca. Occasionally, the company practices the Product Bundle Pricing by combining several products in the same package, for example the Shiseido “Wrapped in Joy” promotion.
These packages are cheaper than buying the products individually, thus attracts buyers.UNIQUE SELLING POINT (USP) The USP of Shiseido will be its age old history and the emphasis on the Japanese culture despite its goal for globalisation. People have trust and confidence in their products because it is established over a century ago, and has since built up its reputation. What really appeals to the foreign countries is the Japanese culture of the company. The packaging of the products may seem Westernized, but the company make use of popular Japanese models and celebrities for endorsement, which shows that although the company wants to globalise, it still maintains its local flavour.This appeals to both Western and Eastern countries. GROWTH STRATEGIES Diversification Since Shiseido stresses on globalisation, Diversification is a must to maintain its overseas market.
According to the Shiseido Tsubaki Shampoo case study, the haircare market in Japan is highly competitive, causing the shampoo market in Japan has been stagnant in the recent years. As a result, consumers purchase their haircare products based on brand names. Tsubaki then successfully broke into the shampoo market. The success of this product increased Shiseido’s market share and induced follow-ups from rivals.It is then launched into the neighbouring countries. Market development To maintain in its existing markets, Shiseido released new makeup line Maquillage to psyche up its consumers. This line targets on the working class women, who are the primary consumers of the company.
Proudia and Pied Nus were both launched in 1997 as base makeup lines and point makeup lines. In 2005, Shiseido launches Maquillage as an ultimate makeup line that combines the aspects of each line while pursuing “genuineness, high quality and mature beauty” that captures modern trends.References New Launch of Maquillage and UNO. Retrieved from http://www. shiseido. co. jp/releimg/1209-e.
pdf Shiseido Tsubaki Case Study. Retrieved from http://www. reportlinker. com/p0177529/Shiseido-Tsubaki-Case-Study-Breaking-into-the-luxury-hair-care-market-with-an-effective-marketing-strategy.
pdf Shiseido “Wrapped With Joy”. Retrieved from http://www. bling. my/content/promotionsample-shiseido-wrapped-joy Majolica Majorca launch in Singapore. Retrieved from http://rougedeluxe. blogspot. com/2008/10/majolica-majorca-launch-in-singapore.