Sa Sa China Analysis

Topics: Hong Kong, Brand management, Perceptual mapping Pages: 8 (2344 words) Published: April 7, 2012
Introducing the Sa Sa International Holding Limited (China)
Sa Sa International Holding Limited, a Hong Kong leading cosmetics retailing group in Asia. Sa Sa has approximately 220 stores and retail counters across different regions in Asia. Together with it owns brand and other international brands; Sa Sa offered over 600 brands of skin care, and fragrance, make-up and hair care products. In 2005, in order to track the fast growing trend of China Cosmetic industry, Sa Sa International Holding Limited decided to enter China market with 2 new retail store opens in Shanghai. Up to now, Sa Sa China has launched 69 retail location across different areas in China. Market prospect: Chinese customers still prefers to purchase their cosmetic products in department store. This should be a major challenge for most of the Beauty specialist retailers.

Current situation
According to the interim financial report on 30th of September 2011, it has shown that Sa Sa is performing well in its core market “Hong Kong and Macau” area; however, Sa Sa has experienced a loss of HKD 19.75 million in 2011. The management team of SaSa claims that the recorded loss in 2011 is caused by expense increases in recruiting new staff members, logistics and new store establishment. Including the record of losses in 2011, Sa Sa China has experienced losses for 6 consecutive years. Exploratory research is conducted to understand the underlying problems of Sa Sa China - “Asia Pacific Equity Research by Elsa Yang from JP Morgan , and莎莎大陆遇阻:四大原因导致内地业务发展缓慢 by李欣 from华夏经纬网 . The poor performance of Sa Sa China is believed to be caused by several factors. Firstly, High import tax in China has been affecting the low price strategy that Sa Sa has well-practiced on. Secondly, the competitive cosmetic market in China has weakened the Sa Sa’s high products varieties strategy. Thirdly, the selling strategy of Sa Sa is lacking of supports from most of the major labeled brands. These problems might able to resolve by re-positioning the brand of Sa Sa International Holding Limited in China.

Value of this analysis: To provide Sa Sa China an evaluation of it current brand positioning and provide recommendation base on analysis of customers perception toward different attributes of Sa Sa (China) and its competitors; which could help and assist Sa Sa China to make correct decision on its future positioning strategies.

Management problem: How to increase sales and profitability of Sa Sa China? Marketing Research Problems: It is needed to determine the current position of Sa Sa China, in comparison to the other cosmetic retailer brand in China.

Objective of this analysis:
- To determine customers general preferences level of each individual brands - To determine customers perception on different attributes among each brands. - To find out the characteristic of different customers group (segments) - To determine the best suit segment for Sa Sa China to market with its re-positioning strategy

Questionnaire Design:
An online questionnaire is designed to collect information on how do people in cosmetic market (China) perceive the Sa Sa China Brand compared with its competitors.

Screeners: Screening question has set up to block out respondents that is neither Chinese citizen from Mainland nor it has shopped in Sa Sa (China) and its competitors. Screening questions are queried to test:

-Whether respondent are from mainland China
-Whether respondents have ever shop in Sa Sa China and its competitors

Preferences of brand: This section is designed to determine individual-level preference on each brand, respondents were asked to rate their preferences on each individual brand on a 9-point semantic differential scale.

Perception on different attributes of brands: This section is designed to determine individual perception on various attributes among different China Cosmetic retailer brands. Respondents will rate each attribute on a scale from 1 to 9...
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