Develop suitable marketing mix for new product of SASA cosmetics

Executive Summary

In this section, it is necessary to develop the suitable marketing mix for the new product of SASA cosmetics retail group. It is better to explain the key characteristics of the new products of SASA, as it wants to expand the new product lines toward the target market. When develop the new product lines, the set of the new products need to have the suitable pricing policy in order to suit the market.

After the price settle down, it is important to consider different types of promotion tools to promote the new products to the publics. Moreover, it also will state out about the channels of distribution and the customer services will provide to the consumers.

For this overall marketing mix, it needs to identify the impact of the individual components for the new products. By the way, the environment factor and the consumer priorities can be the key factors that bring the impact on the marketing mix.

It is important to explain how the marketing mix can meet the dual objectives. It is including meet the want and needs of customer and match with the objective of SASA. Besides, individual component of the mix and assumption the contrary result are also need to have explanation. Lastly, suggestion and adjustment for SASA is also needed to open the new branch stores and have more development their own brand.

Introduction

SASA was first established in 1978 that started from the small retail cosmetics shop until nowadays, it turned to be the leader of the cosmetics retailing group in Asia. It becomes the listed company in Hong Kong in 1997. From the past until now, it already owned over 160 retail stores and counters in Asia that was sell more than 400 brands of skincare, fragrance, make up and hair care products, that including their own brands products.

Besides, as SASA is belongs to one of the largest sole agents in cosmetics in Hong Kong, its represents over 100 international beauty brands in Asia such as SKII, Maybelline etc. SASA always provides the “one stop cosmetics specialty store” in order to satisfy the consumers needs and wants. However, the demand of the customers continuous to increase when they want to find out the most efficiency way to purchase the most suitable products for themselves, therefore, SASA has provide the internet services for the customers to have the online shopping. The Cosmetics information of different brands will also post on the web sites for the customers to read in order to ensure all consumers can have the clear understanding on the products which they purchased.

Key Characteristics of the New Products

SASA is a leading specialist in cosmetics retail in Asia. Although it has sell over more than 400 brands of skincare, fragrance, make-up and hair care products that come from the exclusive international brands, it also produced its own-brands products that including the “for her” styles such as skincare, make up etc. It is the major trend for SASA own-brands.

SASA mainly focus on the Cosmetics retail when it always maintained the excellent sustainable relationship with its suppliers. Moreover, in its shop, all products are all come from the suppliers but lack of its own-brands.

Therefore, SASA has chosen to launch the new products lines that can match with the trend of the “less antiseptic” to protect the skin and the health of the consumers. It is because there are many cosmetics products is included different types of materials that will bring the bad effect to the consumers if they used for the long time. As a result, the new products will use the most natural material in order to provide the most safety cosmetics products to the consumers, the major products will be focus on the skincare, the make up products.

The major target segment is focus on women, especially the women who always use the cosmetics products. It is because these women usually want to discover the cosmetics products in good quality and price. By focusing on this segment, the new products lines of maintain less antiseptic would be attractive to those targeted consumers.

Pricing Policy

a. The pricing variables used

When there is new product to launch, the price of this product will set relative as the similar products. It is because, in the cosmetic market, there is also a number of the less antiseptic cosmetics product, when SASA established the new product; it will increase the competitive of the market. Therefore, when the new products are launched, different pricing policy can be used, for example, the seasonal discount or the promotion activities can have different price to attract the consumers.

b. Whether price is elastic or inelastic

The price of the new products will be inelastic as the price is fixed by SASA. There is not have any negotiation between the company and the consumers. No discount will be given out to the consumers, expect the VIP and the staffs' discount. It is because if the price of the new products is elastic, it will be unfair to different consumers when they purchase the same products in different price. Conflicts will be occurring easily. Moreover, when the new products first appeared in the target market, the consumers would be afraid to try the product because there are not enough feedback provides by different people and the effectiveness may be question from the consumers.

In order to build up the confidence on the new products among the consumers, promotion discount set by SASA will be give out to attract the consumers. With the cheaper price and the good reputation, the curiosities between consumers are created and they started to buy the products to try. Even there is promotion price though the new products, the price is fixed by SASA and without any discount to the consumers. The price must be inelastic towards the products. If the price becomes elastic it will affect the operation of the market as the price will as low as to attract the consumers.

c. The Demand for the product

The price of the new products is always setting by the trends of the society and the attractiveness of the products. Nowadays, the community concerned about the “less antiseptic” to protect the skin and the health of the consumers. Besides, with less harmful materials, it can also protect the environment. As a result, the consumers whose want to have the health skin will purchase these new products to see it is work or not. Not only these, it will also attract the fans of SASA as SASA is a famous brand over the world. With these needs of the market, the price should set at the range that similar with other types of products in order to keep the competitive between the other products. The price needs to set in the medium, not to high in order to meet the demands of different levels, such as the low and the middle level of consumers will occupy most of the market share of SASA.

Promotional tools

There are different promotional tools to use in order to attract the target consumers in the market. For example, as SASA is the large company, it can use itself reputation and the brand name as a promotion tools in order to attract the consumers. When the company has the good reputation, it can bring the good guarantee to the consumers and it is better than the consumer to purchase the cosmetic product in the small and low honor organizations.

Besides, when SASA wants to purchase the new product lines- “less antiseptic”, before the establishment, SASA can provide the sample to the consumers in order to observe the response of the market. If the response is okay, it will be more easily for SASA to produce the products.

In additions, SASA can promote its products through different media, such as TV programs, the newspapers, magazines or the large banners. The advertisements need to post in the conspicuous place in order to let the consumer know about the new products.

As SASA has the good reputation in Hong Kong, it can make use of some famous stars to promote the new products. It causes the celebrity effect to the public and increase the products attractiveness to the consumers.

Channels of distribution

As SASA has its own brand products in their shops, therefore, it can choose the direct distribution. Before the new products launch, for the existing product of SASA, it still use the direct distribution to purchase their products. SASA put its products in the corner in the shop for the consumers to choose. Some personal selling can also provide to the consumers when there is the sales in SASA. If the customers need some technical skills about different products, the sales clerk of SASA can provide the professional ideas to the customer, it is because they have the specialized and well-understand of the products.

By this existing distribution method, the products that produced by SASA can only found in SASA's shops. It becomes the limit sales and cannot find in other cosmetics shop. Therefore, for the new product lines, it still can use the existing distribution methods as the products are belongs to the own brand of SASA.

It will be the most suitable distribution method for SASA to purchase their new products. When the products only sell in SASA, it becomes the limited products. When the consumers want to buy it, they need to go to the branch of SASA to purchase their ideal products. It can ensure that the profits of the new products will not share with other providers.

Level of customer service

Personal Selling

It always can find in SASA stores or the counters. It is needed for the consumers when they have the problems on using the new products, The Sales in SASA can provide the most professional opinion to the customers. Besides, if the consumers have the difficulty on choosing the products for themselves, personal selling that provided from SASA is also needed. It is because the staffs will suggest the customer to choose the most suitable product for him or herself. For this personal selling, it can ensure most of the customers can own the appropriate products.

After sales service

It is also important for SASA provides the after sales service to the consumers; it is because the staffs need to answer the question bring by the consumer, as they do not know how to use the products. When the new products are developed, consumers may not have the fully understanding on the product, therefore, the staffs have the responsibility to help the consumers.

Warranties and guarantees

There is the warranties and guarantees for the new products, if the consumers have any problem after using the products, SASA will pay the full responsibility towards the customers. It is because SASA wants to ensure all products produce by SASA that including the new products could not harm the consumer health.

Refunds and/ or exchanges

By the way, SASA has provided the return products services (except non-returnable items) sold by SASA. However, the products should not purchase more than 7 days, receipt is needed for the new products (based on the delivery record). However, if the product was used, SASA need to have the discussion in order to consider about the refund or the exchanges.

The marketing Mix of the individual components

Different promotion activities can attract the public eye sight and their attention. As a result, it can make sure all people know there is the new products lines will be develop by SASA. For example, SASA will only put some advertisement on their stores or the counters to let the customers know about the information of the products.

As a result, only the customers walk in the SASA stores and counters can know about the detail information of the new products. If other consumers interested on this new product, it may be difficult for them to find out the information.

In order to make sure all consumers can received the information of the new products. SASA can put the advertisement on the large billboard or by the TV programs to increase the opportunity of appearance towards the new products.

Environmental factors

I would like to use five forces model to analyze that how they would affect marketing strategy of SASA.

First, the economics of Hong Kong will be better in the coming year. In the last year, the economics of Hong Kong is quite bad; the financial tsunami is made a big influence. It make people do not willing to shopping, therefore the business volume of SASA became bad. However, the economics of Hong Kong will be better in this year, so SASA have a good forecast.

Second, the social of Hong Kong have a new trend. People are more concern their health. SASA introduce the product that is not including chemical and it is organic. It can attract many people to try it.

Third, the technology also has the big influence of SASA. The technology becomes good and good. It is helpful for SASA to produce the organic product and new organic skin care product. It can improve the product to be the best provide for the customer to enjoy the skin care and healthy processes.

Fourth, for political, Hong Kong government was encourage people to shopping to rise up the consumer index of Hong Kong. It is helpful for increase the business volume of SASA.

Fifth, for culture, women would like to makeup to be more beauty. Let them to be more confident. It is helpful for the business volume of SASA.

Consumer priorities

There are some consumer priorities will affect the marketing mix of SASA.

First, the customer service of SASA is good. SASA have provide the professional training courses to their employees before they are working in the shop. It can make sure that staffs have enough knowledge to answer the question that asked from the customer and provide the professional information for them.

Second, the price sensitivity of SASA also provides the special discount for customer to make sure that they can buy the products with the lower price. When people think that they have to buy the skin care products, they would think about SASA.

Third, the customer expectation, most of people think that SASA just sell the skin care products. However, SASA also sell the healthy food product, for example, the general healthy products and the organic healthy products. It makes SASA become more diversification.

Fourth, the promotional appeal of the new products, SASA will make a lot of advertisements in different place. For example, TV program, magazine and internet. Different place can let different people have more understood of SASA. In addition, SASA also use the sparkling color to attract people's eyes. For example, pink.

Fifth, distribution methods, SASA have a variety of branch stores. SASA have more that 50 branch stores. It is very convenient for every people. They can find SASA easily and shopping every time and everywhere.

Marketing mix meet the dual objectives

I would like to use marketing mix to analyze that how it will meet the dual objectives of satisfying the target market and meet the strategic of SA SA and operational marketing objectives.

For place, SASA has more than 50 branch store in Hong Kong. It is very convenient for every customer. They can find SASA easily and shopping with convenient. The branch stores are dispersing at different place in Hong Kong. Also, SASa's vision is to maintain its position as the dominant cosmetics retailing group in Asia. There are so many people know SASA and willing to shop at SASA. It is match the vision of SA SA.

For price, SASA always provide the special discount for customer. For example, when the weather is cold and people's skin become very dry, SASA will have a special discount on different kind of body lotion and hand cream. It can satisfy the needs and wants of customer.

For promotion, in special festival, SASA will have a special promotion. For example, in Valentine's Day, SASA will have a special promotion to promote some product that is suitable for girl. It can let people can buy it for their girlfriend.

For product, SASA always introduce some new products for customer. SASA will insert some new products from overseas, for example, Japan and Korea. It can satisfy the fresh feel for customer.

Individual component of mix

Marketing mix process is useful for SASA. SASA use it to try their best to satisfy the needs and wants of customer.

For place, SASA use the questionnaire to collect the information from customer. the information that SASA want to get is which place that is the people want the branch store are set. When SASA know that which place is the customer want the branch store are set, they would considered to open a new branch store at there.

For price, SASA know that everyone will attract by the discount price and lower price. Therefore, SASA always provide the special price for customer. for example, when they do the promotion, the products will sell with a lower price. It is cheaper that the other shop. It attracts so many people to purchase it.

For promote, match with the special festival, SASA will hold the special promotion activity. It let customer to buy the relevant product and feel the detail mind of SASA. It can let customer have a good impression of SASA.

For product, SASA also uses the questionnaire to collect the information from customer. it is use to know that which product is the most attractive of customer. which product is customer want to buy the most. It is can let SASA know that how the import the right product for customer and to be more meet the wants and needs of customer.

Assumption

Assume that the research results. The target market has proved price sensitive. SASA is very sensitive of the price that provide for their target market. It is because they believe that the price is one of the main reasons that can attract customer to shop at SASA. In the last year, the economics of Hong Kong was bad, it make people are not willing to shop. It has a little bit influence for SASA. Nevertheless, SASA use the discount to attract customer. It makes the profit. If the results of the research is against the real situation. SASA have some methods to improve.

First, for the customer service. SASA have added up a new title in each shop. It is the cosmetologist. This cosmetologist can provide the most professional information for customer. For example, which type of makeup products and skin care products is most suitable for each customer. In addition, they would provide the professional healthy information customer. Let customer feel that they can shopping with a right concept and will not buy the wrong things, make sure the products is most suitable for themselves. It can make customer can feel the careful from SASA and make them feel warm.

Second, it is the price. SASA try to make the price to be lower and cheaper. Let customer can shopping with the lower price and willing to buy more things. In addition, SASA have set up the online shopping, it can let customer can shopping at home or office and do not need to go out. It can help them to save time and traffic cost. It is good for customer. In addition, it is good for SASA, too. SASA can save much human resource to service customer.

Adjustment

In my opinion, I think SASA can have a little bit change on their development strategy. I suggested that they could have more branch stores in mainland China. It is because the individual visitors from mainland China are love to shopping in Hong Kong's SASA. The reason is there are not too much SASA in their city and the price is more expensive than Hong Kong. Because of it, I suggest that SASA can open more new branch store to satisfy the mainland China customer.

Meanwhile, I suggest that SASA can have more development on their own brand “SASA”. In addition, have more improve on the quality. SASA have their own brand product, but it only have little makeup products. I think SASA can develop different type of products, for example, the skin care products and some healthy food.

Conclusion

As a conclusion, we have developed an effective marketing mix for a new product of SASA. We have identified the key characteristics of the new product and its significance to the target market. We have explain that why the new product will suitable for the segment and the likely response from the market.

We have the review the pricing policy for the new product; it is including the pricing variables used, whether price is elastic or inelastic and the demand for the new product at the price that we have set. We have used some promotional tools to promote the new products and show you how these will appeal to the market. We have outlined the channel of distribution that SASA will use and secede to use existing distribution methods and we have to develop the new method to promote to the target market.

There are some customer service that SASA will be needed in order to adequately service SASA's target market, it including the personal selling, after sales service, warranties and guarantees and refunds and exchange.

We have identified the environmental factors that will influence SASA's on the marketing mix. At the same time, we have analyze that customer service, price sensitivity, customer expectations, distribution methods and promotional appeal can be affect the marketing mix.

We have explained how the marketing mix to meet the dual objectives. It is including meet the want and needs of customer and match with the objective of SASA. By the way, we are analyzed that individual component of the mix and assumption the contrary result, how will SASA do.

Finally, we have provide some suggestion and adjustment for SASA on open the new branch stores and have more development their own brand.

Reference:

http://web1.sasa.com/corporate/eng/whoweare/coinfo/index.jsp

http://www.sasa.com.hk/SasaWeb/eng/sasa/home.jsp


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