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Marketing - Watsons

By Mario Shaw,2014-05-27 22:55
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A marketing search report about Watsons

Diploma of Business BSB50101A Marketing Principles

    Assignment of

    Marketing a Company

    Watsons

    Pinyin Name: Zhang Mengru

    English Name: Julia

    VU Student ID: 3813086

    Class Group: 2

    To: Feng Li

    stDate: 21 May 2010

Synopsis

    Watsons personal care shop (Watsons?) is the largest retail chain with health and beauty products in Asia. I write the report with research in details. In the report, I analysis the current situation of Watsons, its products, marketing and strategies.

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    Diploma of Business BSB50101A Marketing Principles

    Table of Contents

    Synopsis ....................................................................................................................................... I

    1.0 ......................................................................................................................... Introduction

     .......................................................................................................................................................... 1

    2.0 ..............................................................................................................................Marketing

     .......................................................................................................................................................... 2

    2.1 Marketing Management - Special Chain Business Mode ..... 2

    2.2 Marketing Strategy ................................................................. 3

    2.3 Orientation .............................................................................. 4

    2.3.1 Macro / External Environment ...................................... 4

    2.3.2 Micro / Internal Environment........................................ 5

    2.4 Marketing Information System .............................................. 7

    2.5 Marketing Research ................................................................ 7

    2.6 Target Market Strategy ........................................................... 9

    2.7 Positioning Strategies ............................................................ 10

    2.8 4P’s ......................................................................................... 10

    2.8.1 Product Strategy ........................................................... 11

    2.8.2 Pricing Strategy ............................................................ 12

    2.8.3 Placement Strategy ....................................................... 12

    2.8.4 Promotional Strategy .................................................... 12 3.0 ............................................................................................................................ Conclusion

     ........................................................................................................................................................ 13

    4.0 ............................................................................................................ Recommendations

     ........................................................................................................................................................ 13 5.0 ............................................................................................................................... Reference

     ........................................................................................................................................................ 14 6.0 ........................................................................................................................ Bibliography

     ........................................................................................................................................................ 14

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1.0 Introduction

    atsons Group (Hong Kong) limited Co. LTD (A.S. Watsons Group

    Company Ltd.), founded in 1828. It is Hutchison Whampoa’s

    W international retail stores and food production, business throughout 34 districts, total business than 8400retail stores with 98000

    employees. Watsons Group’s headquarter is in Hong Kong.

    Group operates over 8,800 retail stores running the gamut

    from health & beauty, luxury perfumeries & cosmetics to

    food, electronics, fine wine and airport retail arms. Also an established player in the beverage industry, ASW provides a full range of beverages from bottled water, fruit juices, soft drinks and tea products to the world's finest wine labels via its international wine wholesaler and distributor. Hutchison Whampoa Limited has five core businesses ports and related services, property and hotels retail energy, infrastructure, investments and others, and telecommunications in 54 countries.

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2.0 Marketing

    Marketing is involved in every purchase decision about finding the right people about allocating resources. (Marketing principle, 2004)

    2.1 Marketing Management - Special Chain Business

    Mode

    Watsons are carrying out modern business management philosophy system.

Chain management is a successful

    enterprise management mode. Food

    field of McDonald’s and KFC, retail

    field of Wal-Mart, Carrefour, hotel

    field of Shangri-La and Hilton are all

    excellent chain operation mode to

    expand. Chain operation mode is an

    excellent management one. Firstly,

     chain operation principle of unity

    Watsons Stores

    “seven” is the business turning into a

    holding the standard manual operation of business norms. This reduces the operation difficulty and improves the quality and efficiency of the management. Secondly, it can effectively arouse social resources and participate in the Watsons’ stores construction

    and purchase and product production structure. For example, Watsons cooperated beauty products and pharmaceutical field with Tongrentang is the typical way of using resources sharing. Third, concentration purchase and distribution of chain operation can both save cost and build brand price competitive advantage. Fourth, the self-built outlets of chain operation are far faster than other management mode. It can

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    effectively increase the size and expand its outlets. Fifth, the enterprise of chain operation can build the credit and bring the consumers unified service and image. It also can reduce consumers the cost of brand recognition.

    2.2 Marketing Strategy

    The type of management philosophy best describing Watsons is product orientation. The philosophy is that consumers will favor products that offer the most quality performance and innovative features. Therefore the organization should focus on continuous product improvement. (Marketing principle, 2004)

    Effective purchases, low-cost logistic and mighty terminal are three advantages of retails field. Face to ardent competition, Watsons bypassed the trap of price war, according to the years of marketing research and analysis of countries in Asia and hundreds of marketing experience, it works out that while nowadays Asia economic increases rapidly, and people request life quality higher and higher. Conventional marketing just keep stagnating for the step of consumers buying and their attention focus on the products. In condition of increasing mature product economic, consumers dont only buy products, but also ask for enjoying the interest of shopping and run after the invisible value of the products, such as brands and service. Finally reaching to the highest realm of consumption, namely by way of the approval of business culture causing the loyalty to brand.

Watsons personal care stores use “explore” to be the theme and put forward, health,

    good, fun, three idea, in order to help people who love life and emphasize quality to build the unity of external and internal beauty. In mainland, it is the first store of thought of personal care. The special and accurate marketing orientation makes people finding everything fresh and new.

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    Watsons have a huge healthy consultant team, includes full-time chemists and “healthy lifeful prolocutors”. Professional teams are all trained with professional train and provide for consumer healthy life consults and suggestions for free.

It is all clear that each store divided into different vending

    areas. Products classify clearly and put in order, it is

    convenient to be chosen by consumers. There are

    favorable activity manuals in the gate of the store.

    Consumers can firstly know of the best and cheapest

    products.

    2.3 Orientation

    As the current largest personal care product chain in Asia and one of the largest retailers of health & beauty products, Watsons has been steadily developing since 1989. Until 2010, the number of mainland outlets will reach to 1000. Watsons is beginning rapidly expanding in mainland. Meanwhile, Watsons’ own brand products

    increase from 550 to 700. According to the data of 2004 and 2005, Watsons mainland stores and sales are both increased 150%. Watsons makes convincing success in China. The reason is just winning in orientation.

    2.3.1 Macro / External Environment

    The macro environment deals with external forces, which cause changes in the marketing environment. These are the source of marketing opportunities and profits, but can also threaten future profits.

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    China personal care products and industries are gradually growing up in the past two decades, with the development of China's economy and the consumer of disposable income increasing, cosmetics and personal care products have become the daily life from luxury indispensable requisite. Cosmetics and personal care products sales scale by 1982 2 billion Yuan in 2002 to 460 million Yuan, the company has been receiving production license to 4,000 from twenty years ago, the product is simple, cold cream, development of coldfrost including shampoo, bath dew, protect hair vegetable, cream, frost, the hand cream, many differentiation category.

    It is worth of paying attention that although the Chinese cosmetics and personal care products industry market scale in the past two decades, increased twenty times, however, China's per capita annual consumption amount only 68 Yuan, still less developed countries, the average level of the development of industry is still very large space

    In the channels, in recent years, with the development and change of the retail business, personal care products sales channel distribution is of intense changes. The department stores and grocery store tradition is gradually to the booming of chain supermarkets and stores.

    Watson from entering China mainland market positioning in the "personal care products" retailers, avoid the market with Wal-Mart, Carrefour and other international retail giants on the positive conflict, all resources in personal care products that a huge potential for development of the market.

    2.3.2 Micro / Internal Environment

    Internal -- the consumer psychology positioning of success

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    An enterprise's success but need to "do the right thing" need "correct". Internal is the root cause of the development of things. Watson in mainland China has not put huge advertising and publicity of large-scale activities, it is down-to-earth, one step at a time.

First step: segment consumers, locking target customers

    In 1989 to 1997, this period, Watsons development were unsatisfied. After years of observation and analysis of market trends, Watson finally found in an increasingly competitive retail industry, how to target customers is vital importance.

    Watsons investigated that Asian women will spend much more time for shopping. They are willing to put large shopping time to find cheaper or better products. Watsons will eventually mainland China's main target market in 18-40 year-old female, especially the 18-35 fashionable women. Watson thinks this age of female consumers is the most challenging spirit. They like to use the best products, seeking new experience, fashion, willing to show themselves in front of your friends. They prefer to use money to bring great change, be willing to undertake all kinds of new attempt. But it is more concerned under 40 consumers, because some of the most women age more early has their own brands and way of life.

    Second step: accurate market positioning, meet the needs of target customers Watson "personal care experts" for the market orientation, to attract some, " health good, fun" three principles, through special products for customers, elegant shopping environment and professional information services to deliver better life philosophy, aims to assist love life, on the quality of people with external shape his inner unity of beauty.

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