Shanghai Jahwa, established as early as in 1898, is the largest domestically owned (joint held by shanghai Industrial Investment group and Shanghai Jahwa corporation) Chinese manufacturer of cosmetics and personal care products. In recent years, it has been part of a booming market with annual growth rates of more than 30 per cen. This spectacular growth rate has attracted and been fuelled by the entry of major multinationals, including major Pond¡¯s(Unilever), Procter & Gamble, Shiseido, Kao, and other minor players. The marketing challenge for Shanghai Jahwa is to carve out viable and profitable positions in the marketplace, in the face of competition from some of the most powerful global players in the industry, and target consumer¡¯s increasingly perceived confusion with Maxam¡¯s two similar flagship sub-brand¡ªMaxam Tremella Pearl Cream and Maxam Hand Cream. The situation illustrates in the case is actually a marketing (brand management) issues with respect to extending a once successful brand of Chinese personal care products named into the shower cream product category. Unilever, P&G already have established competitive high end products on the market under its well-known Luxury brand. In addition, other international players are entering in the market. Competition is heating up, and if the company cannot come up with branding strategy for dealing with the more and more confusing brand of Maxam, it could cost the company a sharp decrease or even being swept out in market. In sum, taking into account of market position, brand extension, pricing and competitive pressures, the company has to consider a repositioning strategy for Maxam brand. Though sale revenue increase, facing a even flat profit margin, the company also requires to improve its contribution ratio of brand products.
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