Foreign Market Analysis
2014
615665-662152
[Foreign market analysis]
International Marketing Assignment The luxury cosmetics market
Table of contents
I/ Product & Geographic description of the market2
II/ Demand estimation3
III/ Business climate assessment – The Coface analysis5
IV/ Competition analysis5
V/ Harrel & Keifer’s matrix6
VI/ SLEPT factors applied on Chinese luxury cosmetic7
Social (and cultural) factors7
Legal factors8
Economic factors8
Political factors10
Technological factors10
VI/ Conclusion of the report11
Additional Information
IX/ Channels of Distribution within foreign markets12
X/ Promotion strategies13
Webography/References15
Product & Geographic description of the market
For this report the decision has been made to analyze the opportunities of exporting French luxury cosmetics, whereas the term luxury refers to a certain quality and sense. The product is created, but will also be manufactured, in France. This constitutes the core product and thus the reason for and benefit of the customers purchase. The customer won’t wear any cosmetic, but a French luxury cosmetic – it will make her feel special and desirable. This indicates the typical customer as a woman, and since the price of the products will be above average to confirm its luxury, she has an income above average, or a share of someone else’s income.
Cosmetics have reached the stage of maturity in the product lifecycle, the demand is continuously changing - demanding quality and innovation, putting pressure on the actors of the market (Romanowski, 2014). Considering the core aspect of the product and the stage of its life cycle there’s no obvious answer to the question of whether the product should be standardized or adapted. This question will be discussed further in the evaluation of our chosen market.
French luxury cosmetics are goods demanded in several regions of the world, but if there is one region truly involved, it is Asia. According to Marketing China,
615665-662152
[Foreign market analysis]
International Marketing Assignment The luxury cosmetics market
Table of contents
I/ Product & Geographic description of the market2
II/ Demand estimation3
III/ Business climate assessment – The Coface analysis5
IV/ Competition analysis5
V/ Harrel & Keifer’s matrix6
VI/ SLEPT factors applied on Chinese luxury cosmetic7
Social (and cultural) factors7
Legal factors8
Economic factors8
Political factors10
Technological factors10
VI/ Conclusion of the report11
Additional Information
IX/ Channels of Distribution within foreign markets12
X/ Promotion strategies13
Webography/References15
Product & Geographic description of the market
For this report the decision has been made to analyze the opportunities of exporting French luxury cosmetics, whereas the term luxury refers to a certain quality and sense. The product is created, but will also be manufactured, in France. This constitutes the core product and thus the reason for and benefit of the customers purchase. The customer won’t wear any cosmetic, but a French luxury cosmetic – it will make her feel special and desirable. This indicates the typical customer as a woman, and since the price of the products will be above average to confirm its luxury, she has an income above average, or a share of someone else’s income.
Cosmetics have reached the stage of maturity in the product lifecycle, the demand is continuously changing - demanding quality and innovation, putting pressure on the actors of the market (Romanowski, 2014). Considering the core aspect of the product and the stage of its life cycle there’s no obvious answer to the question of whether the product should be standardized or adapted. This question will be discussed further in the evaluation of our chosen market.
French luxury cosmetics are goods demanded in several regions of the world, but if there is one region truly involved, it is Asia. According to Marketing China,
References: Doole, I. & Lowe, R. (2008). International Marketing Strategy - analysis, development and implementation. London: Cengage Learning. China and Japan’s fragrance markets & culture