Executive SummaryThe purpose of this report is to provide a marketing plan for Natio’s facial masks to enter skincare market in Beijing, China. First, China has the fastest cosmetic and skincare industry in the world. Natio is one of the fastest growing beauty brands in Australia. SWOT analysis indicated that although Natio has some entry barriers to enter Chinese market such as testing facial masks on animal, Chinese industry’s trend overview and market growth provide an opportunity for natio to make profit in the future. Second, females and males aged 25 to 35 are chosen for our target market. This target group has high disposable income and their lifestyle and behaviour suggests that they require premium and high quality products. Naito will suitable for them because of its natural ingredients offers more radiant skin and are not harmful to their skin. According to conceptual map, Natio will position itself as a niche to gain competitive advantage. Third, marketing objectives will be changed over time. For short term, 30 percent brand awareness will be achieved. 5 to 8 percent profit margins and 5 percent market share will be achieved in medium and long run, respectively. Fourth, market strategies will be developed, including product & brand, service, price, distribution and promotional strategies. Joint venture will be used as entry mode to gain access to local knowledge effectively. Natio has to commit to deliver product quality and services to customers. Pricing strategy suggests to lower price of Natio’s facial masks in China. In this way, it enables Natio to attract more customers. Furthermore, implementation, control and monitoring plans are developed for Natio to implement the marketing strategies and adapt to the changing efficiently. Overall, this marketing plan will allow Natio’s facial masks to enter Chinese market successfully. It is essential that Natio must retain its position and commit to implement strategies to achieve its marketing objectives and deliver high quality product and services to maximise customer value. General IntroductionChina is considered to be one of the fastest growing emerging economies. China had a strong decadal growth rate of 10.5 percent between 2001 and 2010 (IMC 2013). Such a high economic growth rate has attracted many foreign investors. Moreover, China is the largest emerging cosmetic and skincare market in the world (FBIC 2012). Facial masks have the highest sales among other skincare and cosmetic products in China. This is why Natio’s lipstick and M.A.C. are not chosen to be the first product launched in China. Natio is Australian skincare and cosmetics products brand and offers varieties of product lines such as natural make-up, facial treatment, and skincare for men. Natio has been successfully operating in Australia. Natio is one of the fastest growing cosmetics and skincare brands in Australia (Michael Edwards 2008). Thus Natio has considered this prospect as a good opportunity for Natio to launch facial mask to China by setting up the first store in Beijing. The scope of this report is based on the study of the skincare industry and facial mask industry in China. 1.1 Situation Analysis1.1.1 Analysis of Skincare industry in ChinaIndustrial Players A number of major competitors includes both Asian and Western brands. L’Oreal, Shiseido, Herborist, Inoherb and Artistry are considered as Natio’s competitors in Chinese skincare market. Industry revenue, size and growth
The growth of skin care products is mainly driven by purchasing power of Chinese females. According to Ibisworld (2014), total revenue made by cosmetic industry in China is approximately US$ 17 billion at the annual rate of 9.9% since 2010. The skin care products hold about 45% of total cosmetic industry revenue in 2014. The demand of cosmetic and skin care...
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