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    Case Study

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    Zakiah Abu Kasim
    Sasa's business model was less successful in China than Hong Kong for several reasons. [1] The Chinese domestic cosmetics market is highly competitive with over 3,500 companies, many offering cheaper local brands. [2] International brands face strong competition through mass retailers and specialty stores like Sephora. [3] To succeed in China, Sasa needs to strengthen its marketing strategy across the 4P's - developing own brands, locating stores in prime areas, offering a wide price range, and more aggressive promotion efforts. Proper management of human resources, brands, and inventory can also help increase profits by reducing operational costs.

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    Case Study

    Uploaded by

    Zakiah Abu Kasim
    513 views17 pages
    Sasa's business model was less successful in China than Hong Kong for several reasons. [1] The Chinese domestic cosmetics market is highly competitive with over 3,500 companies, many offering cheaper local brands. [2] International brands face strong competition through mass retailers and specialty stores like Sephora. [3] To succeed in China, Sasa needs to strengthen its marketing strategy across the 4P's - developing own brands, locating stores in prime areas, offering a wide price range, and more aggressive promotion efforts. Proper management of human resources, brands, and inventory can also help increase profits by reducing operational costs.

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    Sasa's business model was less successful in China than Hong Kong for several reasons. [1] The Chinese domestic cosmetics market is highly competitive with over 3,500 companies, many offering cheaper local brands. [2] International brands face strong competition through mass retailers and specialty stores like Sephora. [3] To succeed in China, Sasa needs to strengthen its marketing strategy across the 4P's - developing own brands, locating stores in prime areas, offering a wide price range, and more aggressive promotion efforts. Proper management of human resources, brands, and inventory can also help increase profits by reducing operational costs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    513 views17 pages

    Case Study

    Uploaded by

    Zakiah Abu Kasim
    Sasa's business model was less successful in China than Hong Kong for several reasons. [1] The Chinese domestic cosmetics market is highly competitive with over 3,500 companies, many offering cheaper local brands. [2] International brands face strong competition through mass retailers and specialty stores like Sephora. [3] To succeed in China, Sasa needs to strengthen its marketing strategy across the 4P's - developing own brands, locating stores in prime areas, offering a wide price range, and more aggressive promotion efforts. Proper management of human resources, brands, and inventory can also help increase profits by reducing operational costs.

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    Marketing Management

    Case Study

    SASA INTERNATIONAL HOLDINGS LTD

    Zakiah binti Abu Kasim (813085) Emma Haslydiana binti Hasman (812952) Fazilah binti Mustaffa (812953)

    Why do you think Sasas business model did not work as well in China as it did in Hong Kong?

    Domestic
    There are over 3,500 domestics cosmetics companies in China. Focused in increasing their marketing to retain market share against stiff competitor. Such local brands are cheaper than those offered by Sasa. In China, majority of consumers are still cost conscious.

    International These international brands are marketed through mass-market retailers, independent retailers or counters in department stores, supermarkets and hypermarkets. Competition from skin care companies such as Procter & Gambles Olay and Avon. Competition from specialty stores - Sephora

    What should Sasa do next if it wants to remain China?

    Marketing Strategies
    Sasa must create more sales to increase profit in order to cover its operating cost and taxes thus, survive in China. Sasa should take the opportunity of China large market in fragrance and cosmetic by emphasizing and strengthening marketing strategies on the 4Ps concepts as follows: 1. Product 2. Place or Distribution 3. Price 4. Promotion

    Product In terms of product Sasa should offers a comprehensive product range and brand which targeted at diversified customer base Also develops its own-brands. By developing own product Sasa can create and build customer loyalty towards their products. Choose product selections that tailored to Chinese and Asians skins and needs Also offers value-added services, such as free skin analysis, free make-up and beauty treatments to attract more customers.

    Place or Distribution Diversify the distribution network by creating more Sasa store, specialty store and beauty counters in various markets. Locate their stores at a prime location such as in major shopping mall, supermarkets and others strategic places. Offer trendy and comfortable shopping environment and experience whereby customers can shop and choose different products at ease Appoint local distributers for the wholesale business which can help to sharpen the market penetration Promote shopping via Sasa.com online portal where more customers can be reached worldwide
    8

    Price In terms of prices Sasa should make wider range of prices from low to expensive, to cater and entertain wider customer base. Diversification of pricing strategy also help to reduce the impact of economic environment At the same time competitive prices can be offered due to: Strong bargaining power with bulk purchase Long-term relationships with vendors

    Promotion It was mentioned in this article that Sasa did not make promotion as much as their competitor. Therefore an aggressive promotion and effort are very important to be recognised and remembered by the consumer. Promotions can be done including print advertisements, host public relation activities and publish an online advertisement. Create a Customer loyalty program that can keep customer to come back for more. Regular production promotions and give away free product samples is the easiest way to make consumer to try their product.

    The following factors need to be considered to increase profit s by reducing the operations cost and wise managed can contribute to profit for the company.

    1. Human Resource Management 2. Brand Management 3. Inventory Management

    Human Resources Management To create professional trained staff with good product knowledge, selling and management skills. Manpower development - Staff motivation strategies o Bonus system o Let staff understand corporate goals and ways to contribute o Enhance communications and caring culture company o Review remuneration on regular basis

    - Staff trainings

    o 150-hour training for new frontline staff o Management Trainee Program for up-andcoming leaders o Product, language, attitude, selling skills trainings o Leadership Management Skills training for shop supervisors Engaged mystery shoppers to part of monitoring system to find out business operation quality and staff performance

    Brand Management Since Sasa is not able to defeat local competitor with low prices, Sasa could go for product differentiation by creating more new exclusive product to be added to its portfolio. Exclusive products with exclusive brands and are sellable at higher price. Therefore more profit can be made from these products. By having its own brands or exclusive brands can build strong customer loyalty

    Inventory Management As an international company to have a good image and maintain quality in operation system is crucial. Investment in IT infrastructure and logistic systems required to enhance stock taking. Implementing Just-in-time system increase the business operation quality and helps to reduce cost.

    Conclusion Increase sales by enhance its product offering and strengthen its marketing strategies if wants to remains in China. Sasa should reposition its self as flagship and one-stop cosmetic speciality store. At the same time adopt different marketing strategies in different markets and further strengthen it online business and support . Therefore increasing of sales volume will lead to the increasing of company profit and the best way to overcome the taxes issue. If Sephora able to survives in China, why cant Sasa?

    Thank You

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