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Skin Care

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  • November 2006
  • 1159 Words
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Introduction

For many people, vanity is as necessary as food and shelter. Vanity, when satisfied, gives some sort of self-assurance that a person would feel good about themselves in a very competitive world. In this case, vanity is measured through the physical appearance of the person. He/She has to present himself/herself as acceptable as possible based on other people's perception. In the Filipino culture, a "perfect" beauty would include a "flawlessly-white" skin.

Case Background

Mr. John Collado, the newly-hired Product Manager of Skin Care, Inc. was looking for the perfect gift for his daughter's graduation day. He and his wife were inside the SM Megamall for a possible choice of gift. He was captured by his observation of the people lining up to avail skincare services from another company that offers way cheaper prices than Skin Care, Inc. gives.

Back in his office, he concluded that Skin Care, Inc. was the number one clinic to go to for skin treatments. On the other hand, several competitors mushroomed from different places offering cheaper prices putting them on the second place for 2001. He is worried that with the aggressive entrance of the competitors, they will loose their current standing and market share.

He thought of three alternatives which might give clarity to his present problem. 1. Lower the prices compromising doctor fees and other services. 2. Focus on the higher end market and give priorities for liposuction, peeling and dermabrasion, etc. 3. Maintain current pricing and educate the public of their services through ads.

Company Background

Skin Care, Inc. is one of the three subsidiaries of ABC Group of Companies, a holding company: SKINCARE- skin and hair clinic, XYZ Miller- marketing arm of ABC group of companies for Skintel and Regroe products; SKINPHARMA- manufacturing arm of all products sold to Skincare and XYZ Miller.

Dr. Hinson Bineda started the company on 1973 as a private skin clinic in Tondo,...