Bawang's Case Study

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|BaWang Case Study |September 24 | | |2010 | |Marketing Strategy & Planning 5610 |FANG Haoran Felix, 50912304 |

Content Page

Executive SummaryPage 02
Objective of StudyPage 02
Scope of StudyPage 02
Company BackgroundPage 03
Industry OverviewPage 03
Opportunities & ThreatsPage 04
BaWang’s ProductPage 04
Analysis of Product Line Strategy & ResultPage 05
Crisis Management of BaWangPage 09
Key Take-awayPage 011
Appendix Page 013
ReferencesPage 015

Executive Summary
BaWang is one of the most promising domestic brands in recent years. Being mainly a shampoo and hair care product manufacturer, BaWang not only survives in a fierce competition, but also prospers as a major player. Its success comes from various reasons. Implementing successful product line strategy is one crucial factor. BaWang, BaWang Men’s Series, Royal Wind, Herborn, Litao, etc., half of these brands have just been introduced to the market, already winning a sound market share now. The underlying implication is that BaWang’s core competence differentiates BaWang from its competitors, and BaWang successfully positions itself in consumers’ perception.

Crisis management is of great importance to modern organizations. BaWang’s case teaches other corporations a lesson that crisis management is not only about managing the crisis, but also about managing consumers’ feelings.

Objective of Study
This study is to research the product strategies of BaWang. Through this study we should be able to learn what BaWang’s product strategies are and how these strategies contribute to BaWang’s success. In addition, this study will also examine the recent crisis management of BaWang and to learn how an unsuccessful crisis management can affect a company.

Scope of Study
Product strategy consists of a wide spectrum of strategies, including individual product strategy, product line strategy, new product development strategy and product life cycle strategy. For this study, the focus will be on product line strategy of BaWang. Successful product strategies can prosper a company through a period of time, while unsuccessful crisis management can downgrade a company in a blink. This study will also look into the recent scandal and crisis management of BaWang.

Company Background
BaWang International Limited is a listed company at Hong Kong. Originated from the “Renowned Family of Traditional Chinese Herbs”, BaWang International is undertaking the responsibility of carrying forward the profound Chinese herbal traditional culture. It is dedicated to the herbal daily cosmetic with the combination of R&D, production and sale as the landmark enterprise of Chinese herbal home and personal care products industry.

Industry Overview
Since BaWang’s main revenue is from shampoo and hair care product, thus, this study will look into hair care industry. Shampoo and hair care product is the kind of commodity that consumers use every day. Since this market is at a mature stage of product life cycle, consumers understand their needs well and thereby vary greatly in their requirements for these products. From one perspective, there are over 4,000 brands[i] offering hair care products in mainland China, catering from ordinary hair care requirements to any specific demands; from another perspective, huge international players (See Exhibit 1), backed with strong financial resources, sophisticated marketing skills and deep understanding of consumers, dominates major...
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