...21, 2006 PANKAJ GHEMAWAT CARIN-ISABEL KNOOP DAVID KIRON AmorePacific: From Local to Global Beauty In 2005, Suh Kyung-Bae, President and CEO of South Korean cosmetics company AmorePacific, surveyed a map in his office in downtown Seoul: We have held off major multinational players, the L’Oréals and Estée Lauders, in Korea and are competing successfully with them around the world. We went to France, the Mecca of beauty products, and developed the #4 fragrance in that country, Lolita Lempicka. In China, our cosmetics line is sold in more than 100 department stores in 70 cities and business is finally growing. And we have opened a flagship spa in New York that is doing very well. For 2004, AmorePacific reported 3,300 employees and sales of 1,272 billion Korean Won (KRW), equivalent to US$1,111 million. Cosmetics and toiletries generated four-fifths of sales (and green tea and health care the rest), placing the company among the top 30 worldwide. AmorePacific held a share of more than 30% of the Korean market for cosmetics, versus 8% for its leading local competitor, LG Household and Health Care, and 4% for L’Oréal, the world’s largest beauty products company and the leading multinational competitor in Korea.1 But although AmorePacific’s share of the Korean market had reached record levels and its overall operating margins of 15%+ ranked among the highest in the sector, its sales fell by 5% from 2003 to 2004—and its operating income by 7%—mostly because of the...
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...AMOREPACIFIC I. ACTUAL ACTIVITY MAP AmorePacific- is the leading Korean cosmetics company, established in 1945. Since that time the company presents its unique value and bring the image of “ASIAN BEATY” to global customers. The activity plan was prepared based on the four main sustainable competitive advantages over their rivals. * Large and relevant portfolio * Value-adding innovation * Wide-distribution channel * Asian- beauty image To start the analysis we would like to mention that all these 4 competitive advantages is interrelated among each other. It means that Asian-beauty Image is highly dependent from value-adding innovation that company do in order to sustain and develop that image, the innovation plays a big role in large and relevant portfolio, as due to innovation the researchers established new products and targeted to different kind of customers and their tastes, moreover large, strong and relevant portfolio helps distribution channel to promote and sell the high-quality products. Asian Beauty Image: The activities such as High-quality products, Natural and Organic ingredients, Korean footprint and advertisements with famous artists contributed to the competitive advantage of Asian beauty image and are consistent and reinforces each other. Korea is very well known through the whole world due to the natural beauty of people, healthy skin, high-quality products and famous singers and actors. To secure quality and safe natural ingredients...
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...AY 2011 COMPARISON OF MARKETING STRATEGIES BETWEEN JAPANESE AND KOREAN COSMETICS COMPANIES IN THAILAND’S MARKET MATHAVEE REUNGSINPINYA Major in Business Administration GRADUATE SCHOOL OF COMMERCE WASEDA UNIVERSITY 35092351-8 C.E. PROF. GROSSBERG PROF. SUGIURA D.E. PROF. FUJITA Table of Contents CHAPTER 1. SECTION 1. SECTION 2. SECTION 3. SECTION 4. CHAPTER 2. SECTION 1. SECTION 2. SECTION 3. INTRODUCTION ................................................................................... 1 INTRODUCTION ............................................................................................ 1 OBJECTIVE OF THE STUDY........................................................................... 3 RESEARCH METHODOLOGY ......................................................................... 3 STRUCTURE OF PAPER ................................................................................. 4 INDUSTRY ANALYSIS .......................................................................... 5 THAILAND’S COSMETIC MARKET ................................................................. 5 JAPANESE COSMETICS IN THAILAND ........................................................... 8 KOREAN COSMETICS IN THAILAND ........................................................... 10 CHAPTER 3. MARKETING STRATEGIES OF MAJOR JAPANESE AND KOREAN COSMETIC COMPANIES ..............................................................................................14 SECTION 1. JAPANESE...
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...sold in pharmacies and hair salons meant for consumers looking for that mid-level quality of products. The very top of that pyramid is reserved strictly for the high-end products such as Lancome, Biotherm, Shu Uemura, and Kiehl’s. These products are sold in retail outlets, high-end department stores, and specialized boutiques. Each level of L’Oréal brand pyramid occupies a certain price area, which meets the needs of Chinese consumers from a price sensitivity perspective namely due to the wide income gaps in China. Now beyond price, L’Oréal products go through different tiers of sales channels including supermarkets, pharmacies, hair salons, department stores, and specialized boutiques. Even L’Oréal brands have their own unique ‘personality’ – L’Oréal Paris is a high-performance technology brand, Maybelline New York is fashion driven, and Garnier is often characterized as a natural brand. Diversity in products, branding, and sales distribution all contribute to L’Oréal’s success in cornering the beauty and cosmetic market in China today. Local Acquisitions As in many large corporations, acquisition plays a big role in L’Oréal’s strategy...
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...Brand Shares (by Umbrella Brand Name) Historic Retail Value RSP % breakdown Brand Company name (GBO) 2007 2008 2009 2010 2011 2012 Men's Shaving World Gillette Procter & Gamble Co, The 56.3 55.8 54.8 56.3 56.2 56.7 Schick - Wilkinson Sword Energizer Holdings Inc 10.1 10.2 10.7 10.7 10.7 10.6 Bic Sté Bic SA 3.7 3.8 3.9 4.0 4.1 4.2 Nivea Beiersdorf AG 3.3 3.4 3.4 3.3 3.3 3.3 Edge Energizer Holdings Inc - - 0.7 0.7 0.6 0.6 Palmolive Colgate-Palmolive Co 0.7 0.7 0.7 0.6 0.6 0.6 Bozzano Hypermarcas SA - 0.3 0.3 0.4 0.4 0.4 Super-Max SuperMax Corp 0.3 0.3 0.3 0.4 0.4 0.3 Lord Lord Precision Industries SAE 0.3 0.3 0.3 0.3 0.3 0.3 Arko Evyap Sabun Yag Gliserin San ve Tic AS 0.3 0.3 0.3 0.3 0.3 0.3 L'Oréal Paris L'Oréal Groupe 0.2 0.2 0.3 0.3 0.3 0.3 Natura Natura Cosméticos SA 0.2 0.2 0.2 0.3 0.3 0.3 Avon Avon Products Inc 0.4 0.5 0.5 0.4 0.3 0.3 Flying Eagle Procter & Gamble Co, The 0.2 0.3 0.3 0.3 0.3 0.3 O Boticário Botica Comercial Farmacêutica Ltda 0.1 0.1 0.1 0.2 0.2 0.3 Derby Tokai Corp 0.4 0.4 0.4 0.4 0.3 0.3 Barbasol Perio Inc 0.2 0.2 0.2 0.2 0.2 0.2 K4-TETRA Kai Corp 0.2 0.2 0.2 0.2 0.2 0.2 Perma Sharp Procter & Gamble Co, The 0.2 0.2 0.2 0.2 0.2 0.2 Williams Unilever Group - - - 0.3 0.2 0.2 Mennen L'Oréal Groupe 0.2 0.2 0.2 0.2 0.2 0.2 Oriflame Oriflame Cosmetics SA 0.3 0.3 0.3 0.2 0.2 0.2 Shiseido Shiseido Co Ltd 0.2 0.2 0.2 0.2 0.2 0.2 Yves Rocher Yves Rocher SA 0.2 0.2 0.2 0.2 0.2 0.2 Minora Procter & Gamble...
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...quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges to Korean Air in...
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