Strategic Marketing - Case O F Sa Sa

Topics: Marketing, Customer relationship management, Strategic management Pages: 8 (3082 words) Published: September 12, 2010
Executive Summary
This paper discusses the strategic marketing of Sa Sa International Holdings Limited, a leading beauty retail and service group in Asia by analyzing its competitive advantages, marketing strategies, industry environment, major challenges and followed by some problem solvers. Sa Sa has four major competitive advantages. First, she can offer competitive prices for her long-term relationship with suppliers. Besides, excellent service with number of recognized winning awards accounts for another advantage. In addition, she has long-established network with 80 retail outlets in prime Asian countries and on-line presence. Also, she has well-established branding “beauty expert” in Hong Kong as well as in Mainland China. Among four of them, her relationship with suppliers and excellent service allow her to gain sustainable competitive advantage over major competitors. Throughout Porter’s Five Forces analysis (Porter, 1980) and SWOT analysis, the industry is still attractive with moderate competitive environment. However, the increasing rental fee and operating cost in major market Hong Kong is a big challenge to Sa Sa. In addition, brand switching is another challenge for her whereas low operation efficiency imposes worries on the organization. As for beauty industry in Sa Sa’s major market, Hong Kong is in the maturity stage in product life cycle, some of the current marketing strategies can synergize while others cannot. The width of her product mix is large but she should continue to build more exclusive brand and put efforts on add-valued services. In pricing, she manages to offer competitive prices with regular promotion offer. And, in promotion, she has TVC and thematic print advertising to support corporate image and two exclusive brands but promotion program to increase brand loyalty, like CRM is lacking currently. For the distribution, she is on the right track to have extensive distribution, like market expansion to China and Korea through on-line platform. Four major problem solvers are suggested based on SWOT matrix. First, CRM, customer relationship management is a way to increase customers’ brand loyalty and also can help prolonging customers’ life-time value in synergy with her beauty service. Then, it is essential to increase her operation efficiencies, so ERP system is suggested to enhance the operation system whilst six sigma project can be introduced to help enhancing operation processes. And, continuous market expansion in potential area, China is another way to lower the overall organization operating cost. Finally, Sa Sa’s global sourcing and purchasing team helps to find high quality products so as to give more competitive edge to the organization.

Sa Sa International Holding Limited, a leading cosmetic retailing and beauty services group in Asia, which was first set up in 1978 and listed on Hong Kong Stock Exchange in 1997 with US 337 million turnover in 05/06. Her scopes of business include retailing and wholesaling of over 400 brands with 83 stores in 5 Asian countries and so in e-commerce platform; brand management of over 50 major brands including both private-labels and sole-distributorship and also beauty services. Retailing and wholesaling business accounts for over 90% of the business, so the marketing analysis will focus on this core business. Throughout the discussion, first of all, Sa Sa’s competitive advantages will be discussed, followed by industry analysis and organization’s internal and external factors. Then, Sa Sa’s opportunity statements and challenges can be visualized. Afterwards, the marketing strategies followed by suggested problem solvers will also be covered. a.Sa Sa’s competitive advantages

Schendel (1994) stated that competitive advantage had become a central matter to understand and explain in terms of causality, which indicated that competitive advantage is the crux of one organization’s survival. Sa Sa has managed to have four...
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