毕马威案例分析大赛

Situation Analysis
Markets Analysis
Market Selection
Strategy
Forecast
natural beauty&care market by 2014 estimated by Kline Group
Cosmetics Industry Analysis
E. Strategy
Let’s welcome the Herborist’s chief marketing officer
◆Shanghai Jahwa company was founded back to 1889 and it's the largest domestic company for personal and household care products. ◆Established in1998, distinguished itself by using traditional Chinese herbal principles, targeted at high-end personal care with mid-high prices.
Natural cosmetic products are better
Organic cosmetics worth paying more 40% 33%
See it a nice cake and want Asia-Pacific 63% to have a share
globally 50%
FACTOR
Opportunity
Sephora has stores all over the world The increasing popularity of the Chinese culture The increasing desire for natural and organic products The cosmetics industry is still growing
market(US$billion)
※Customers desire for natural and organic products FACTOR increases but how to reach as many customers as Penetration possible with the limited budget is still a problem ability
POLITIC + S
+ SOCIETY
▲After China joined WTO, the trade went to liberalization and the tariff reduced ▲Labeling systems for natural products are improving ▲Asia lagged behind in labeling systems and the void was partially filled by European schemes
COMPANY ☆Which market is Herborist's first priority ?
Become an international brand with its adopt ☆What flagship store should Herborist main to gain strategy ◆Opened its first counter inGOAL Sephora's in Paris at the end of 2008 competitiveness? markets being overseas
◆Established Hong Kong Herbal Laboratory Co.Ltd in 2002 ◆By 2010, it has owned a network of some 800 exclusive stores across more than 80 cities in China.
The natural beauty and personal care industry is promising despite the economic downturn.
Case Overview Situation Analysisrategy Forecast
EXPANDED BY 12% IN 2010 France+ Germany+ UK
IDEA
Developed countries’ increase rate slowed but was offset by that of developing countries
Competitiveness
Western Europe
Sales in the European natural cosmetics market
Though the potential market in Europe might be considerably smaller than in Asia, Europe is enjoying a bigger share
※Highly fragmented with top 3 players occupying large market share FACTOR ※Fierce competition Competitiveness
Europe North American Latin American Asia 0 5 10 15 20
Outline
A. Case Overview • • B. Situation Analysis • Herborist’s Development PEST SWOT
C. Markets Analysis
• D. Market Selection • • F. Forecast& long term plan • BCG+4P Financial& Risk Forecast Long term plan Likert scale
Case Overview
Latin American, with double-digit growth rate, is a new market left to explore
Situation Analysis Markets Analysis Market Selection
Strategy
※Grow from US$356.14billion to US$487.74 billion from FACTOR 2003 to 2010 Potential value
AGREE
Let’s take a look at the natural cosmetics industry
24.4%
Matching ability
Case Overview Situation Analysis Markets Analysis Market Selection Strategy Forecast
120000
Market potential value
100000 80000 60000 40000
70%
16 14 12 10 8 6 4 2 0 2004年 2005年 2006年 2007年 Market year-on-year growth by retail value Asia-Pacific Latin America North America Western Europe
Market guiding power
Case Overview
+ ECONOMICS
FACTOR
Market guiding power
▲Increasing popularity in the natural and organic products TECHNOLOGY + ▲Increasing interest in Chinese culture ▲The consumers’ disloyalty to brands and pursuits of those fashions ▲The consumption is mostly emotional and beyond its physical benefit

Strength High standardized research center and product lines Experience gained from the success foray in Western market Good relationship with Sephora Placed great hope on by Shanghai Jahwa Distinguish itself via traditional Chinese herbal medicine
Weakness Lack advertising and popularity overseas Limited access to customers The shortage of core products The consumers abroad are less open to Chinese traditional herbal culture Lack experience of exploring the international markets Threat Well-known brands occupy most of the markets Economic crisis and declining purchasing power Barrier of entering new markets with limited resources and channels Competitors' quick and aggressive response