Discuss about the Impact Of A Brand Equity On Consumer Purchase.
International marketing is the process of applying the marketing principles in the international market for the expansion of the business (Bai, and Chang, 2015). To better understand the process the organization Sodashi is being selected. The organization is the skincare brand of Australia and they are developing the international market for Singapore. The firm is making various types of the skin care products as per the need and demands of the consumers. The major products are Balancing face mist, Clay cleanser with Lavender and they also offer Samadara. The market share of Sodashi reveals that the products are being use in 20 countries and by 52 world’s most luxury spas (Professional Beauty, 2009). The firm is trying to achieve the trust and is trying to expand globally in rest of the countries so that products can reach a large number of the customers. Development of the brand image is one of the priority of the firm and they are engaged in deliver superior quality of the products to the customers as per their satisfaction level. The paper will provide the view of the marketing environment along with the competitor analysis of the firm. The paper also provides the view on the STPD of the firm in the market of Singapore along with the marketing strategies. Also, it will highlight the operating advantages that the company has by executing its business across different countries.
The objectives are:
Political factor: The country is having a low political risk and for that the country provides the suitable transformation to improve the business opportunities (De Mooij, 2015). The country allows the foreign market as well as their local market to grow and expand their business. These political factors will help Sodashi to enter the market of Singapore with their product to expand the business in the international market.
Economic factor: The economic condition of the country is the vibrant free-market economy. In the ASEAN countries, per capita income of Singapore is the highest and they are developing rapidly in the world market. It is the corruption-free environment that eventually supports the business sector to develop. The GDP of Singapore grew by 4.3 percent in the first quarter of 2018 as evaluated on 13th April 2018. The fertility rate of the country is 1.24 and the populations as evaluated in 2018 is 5,791,901 which provides desired platform for Sodashi to execute all its respective business processes (Mti.gov.sg, 2018). The country is also having the cheaper labor cost which allows Sodashi to expand their business in Singapore with greater opportunities (Tradingeconomics.com, 2018).
Social factor: The social factor of the country is like all the other eastern countries and they also follow the traditional family value. The literacy rate of the country is high which allow them to develop effective awareness regarding the development of the country (De Villa, Rajwani, and Lawton, 2015). They have effective command in English as well as Chinese which help them to attract international trade. All these factors of a social environment in the country allow the organization to establish their business in Singapore.
Technological factor: The country is having the most advanced use of technology in their various field and this is the primary reason for the change in lifestyle and activity (Hoffman, Munemo, and Watson, 2016). The Internet is the most efficient part of the country that helps to develop effective communication among the organizations within the country. Sodashi with the help of technology and other internet advancement have the suitable ability to capture the customers of Singapore (Facebook.com, 2018).
Legal factor: The legal, as well as the regulatory system of the country, is being a focus for the development of the industry as well as the economic condition of the country. Sodashi also required to maintain the legal law reading the international trading and also the law for trading within the country. This effectively allows the firm to maintain the suitable working function within the market.
Environmental factor: The environmental condition of the country is not suitable for the level of pollution is high within the urban areas. The country has lost their 30% of the mangrove area. Sodashi with their sustainable working environment can effectively get adjust to the country that would not create an issue in the environmental context of the firm.
Porter’s five forces
|
Porter’s five forces |
Features |
Power |
Market share |
Business strategy |
|
The threat of new entrance |
The cost for new entrance in the skincare and cosmetic products are huge. |
Low |
High |
Low |
|
Consumer bargaining power |
The price of the products is changed as well as new products are formed according to the need of the customers. |
High |
low |
High |
|
Suppliers bargaining power |
The industry is having a huge market player and also numerous suppliers of the products. |
Low |
low |
Low |
|
Threat of substitutes |
The level of competition is high in the skincare and cosmetic industry. |
High |
High |
High |
|
The barrier to market entrant and exist |
Due to high price some firm create market barriers while due to the development cost of the product some firm face the barrier to exit. |
Moderate |
High |
High |
The primary competitor of Sodashi is Nivea, L’Oreal Paris, Neutrogena, and Shiseido. The primary products of the competitors are the skincare and cosmetics items. The primary strategy of L’Oreal Paris is to make the innovative products which have the potential to attract customers. Nivea has the unique selling position for providing suitable skincare products to the consumers. Shiseido also has the quite effective position within the market that provide sun scream and other beauty products (Papadopoulos, and Heslop, 2014). Neutrogena also provides suitable product to the market which has the ability to attract various customers. In the cosmetic industry, the level of competition is high which makes it quite difficult for the firm to provide an effective working function on the field. The competitors are having the most effective field within the market that provides best skincare products to the customers (Samiee, Chabowski, and Hult, 2015). All the competitors of the firm are the branded company in the market which is generally recognized by all the customers which create huge competition level in the market.
|
Competitor Brand Name |
Market share |
|
L’Oreal Paris |
23% |
|
Nivea |
6% |
|
Neutrogena |
11% |
|
Shiseido |
3% |
SWOT Analysis
|
Strengths |
Weaknesses |
|
· Provide cent percent natural products · They have high distribution channel in the leading spa all over the world · Ingredients are disclosed on the label to the customers · Maintain strong relation with the spa industry and the consumers · Effective business strategy for the international market · Provide superior quality of products |
· Sodashi spa have limited outlets in the capital city of Australia · Brand recognition is low in Australia as well as Western Australia · The production capability is limited |
|
Opportunities |
Threats |
|
· Sodashi is becoming the leader in the natural spa along with the beauty products · Introduction to the international market · The growth of the firm through online marketing · Trends for using the natural as well as organization raw materials · Launch of new products within the international market |
· High level of competition · Selling the products via online to the consumers · Managing the requirement of the business partners |
The organization is having the suitable operational function within the international market and the country Singapore is also suitable for the firm. After the effective analysis of the business, it is clear that suitable market entry mode for the firm is Franchising (Skarmeas, Zeriti, and Baltas, 2016). This mode is contract based but far better than the licensing as in this mode the franchisor can effectively control the franchise. The franchise has to pay the fixed amount as well as the royalty that is based on the sale of the primary business. This business process is having low financial risk within the market and also the access to market potential is having the low cost. This market entry mode also helps the firm to avoid tariffs as well as restriction on the foreign investment. This is one of the best processes for the firm to achieve suitable view regarding the local market and also the primary organization has direct control over the business (Morschett, Schramm-Klein, and Zentes, 2015). In the franchising market entry, high level of trust within the organizations are essential. This process also helps in the speedy entry into the international market. It is suitable for Sodashi to maintain their business in Singapore and provide the best products to the market of Singapore.
The segmentation of skincare products within the market is done according to the demographic, geographic, psychographic as well as behavioral (Vos, and Bartels, 2018). The organization has segmented their market in the form of geographic where they introduce the business to Singapore in the international market. This is a skincare product brands and their demographic segmentation is basically the female of the country. They segment their market according to the age group of the female where they provide different product for the different age group. The organization also have segmented some of their products according to the lifestyle of the consumers (Smilansky, 2017). The cosmetic and skincare products are different for the professional and for the students. Segmentation is done to provide the most suitable and effective product within the market so that their customers are fully satisfied with the appropriate product. For skincare items, the proper segmentation and formation of the product are essential to capture the interest and loyalty of the consumer.
The primary target of the firm are the females and the males with the age group of 25 to 35 for providing effective spa treatment. They have further segmented their target within the age group of the female for better customer satisfaction and product delivery to the market (Akhtar, Siddiqi, Ashraf, and Latif, 2016). The organization has targeted the female of 18-25 years as the young group who needs the skincare products for a natural look and maintaining the natural glow of the skin. They have also targeted women above 35 years of age for their skin aging cream. The secondary target of the organization is the male and the kids. The organization provides suitable and effective product in the market that has the ability to grab the attention of the customers all over the world (Dawes, 2017). Sodashi is providing better cosmetic and skincare products to attract the customers mainly the females that provide an effective working function to the firm. The organization provides spa products and for that, they target popular spa within the market.
The organization Sodashi is having the effective position within the market but due to the huge competition level, they are also getting some of the crucial factors for the firm to maintain their products (Husain, Ghufran, and Chaubey, 2016). The brand image along of the firm within the market helps them to maintain a valuable position. The positioning strategy of the firm is suitable for developing effective competitive advantages in the country. The organization is rapidly growing within the market and for that, they have the effective and the suitable development for the firm to maintain their products and their effective working function within the market (Bourguet, Pêcher, Bardel, Navarro, and Mougin, 2016). The change in the lifestyle and change in trends of the customers helps in targeting their specific needs. With the new and developed products and also with the developed spa products in the field they are gradually developing the position of the top brand within the market. The organization has to compete with the big brands like the L’Oreal Paris, Nivea in the market which make their position in the development stage.
Differentiation allows the organization to provide unique products within the market that help to capture the customers. This helps the firm to improve their competitive advantages and also helps to increase the position of the firm in the market (Garmatjuk, and Parts, 2015). The organization Sodashi is having suitable differentiation in their products like they provide organic spa products to the market. The organization also provides the pure nourishment products for the beautiful skin. Another differentiation of the product is that they provide inconceivably gentle products but incredibly effective for skin. They also provide the purest skincare product range within the world which make their product innovation and provide them competitive advantages within the market (Assawavichairoj, and Taghian, 2017). The organization has most of the unique value position in the market which is gained with the effective differentiation of the field. Sodashi providers the most basic skincare treatment to the consumers that is effective and also suitable for the women along with the men all over the world.
Sodashi is the skincare and cosmetic brand that provide suitable and effective products to the market. The organization provides various kind of spa products to offer treatment for the consumers. Their product is inconceivably gentle and also it is incredibly effective on the skin of the consumer. Samadara is the powerful treatment for ageing that is provided to the customers on the various outlet of Sodashi spa (Liao, Lee, Lai, and Wang, 2018). The organization also provides the products that help the customers to tackle the cellulite in their body. They needs to have various products that rejuvenate the skin and provide nourishment to the skin. They also provide the product that is suitable for the sensitive as well as the reactive skin and this product generally available in the complete kit that is calm Skin Care Kit of Sodashi. The product strategy that is basically utilized by the firm is to develop the smooth and the effective along with the innovative skin care products (Frey, Ansar, and Wunsch?Vincent, 2015). Samadara is the innovative treatment that is provided to the people to fight with the anti-ageing problem and this is available in the different spa outlet of Sodashi. Their product as well as the packaging of the product is innovative and also effective for the market to capture the attention of the consumers. The organization is also having products for providing smooth lips and eyes to the customers all over the world. This organization is providing the best product within the market to develop with the help of innovative strategy.
Pricing strategy of the firm is essential to provide the cost and the value to the products as well as the treatment in the market. It is basically depends on the market demand as well as the cost for the making of the products (Bonetti, 2014). The pricing strategy used by the organization for their products are the economy pricing and they will adopt differentiations in the pricing strategies and will offer discounts to the customers too. It is effective for the firm to maintain their product in the most suitable and valuable ways. This also help the organization to develop effective customer’s loyalty in the marketplace. The organization provides various range of products within the market that starts from 50 dollar and the maximum price for the product that is being provided by the firm is almost 300 dollars. The pricing strategy clearly provides the facts that the beauty products that are providing by the firm is for the customer’s suitability in the market. They have numerous product range with various price and all are beneficial for the firm to maintain their activity in the field (Andaleeb, 2016). They have different price range for the spa treatment where the customers can get effective beauty products in their suitable price. They also provide different kind of skincare kit with the price range starting from 230 dollar. In this kind of kit there are various products that is effective for the kind of skin and beauty treatment. All the products within the market is being settles according to the need of the customers and also the pricing strategy of the firm.
This is the most effective and the valuable strategy for the skincare brand to spread the awareness of their products. The various promotional strategy that is generally utilized by the organization is the advertisement on television, the newspaper advertisement along with the online sales within the market and so on. The television advertisement allow the firm to spread their news to the vast area and this is also effective for attracting numerous customers in the market (Heinberg, Ozkaya, and Taube, 2016). Then the promotional campaign is also done by the organization where they introduce the products by the help of the celebrity within the market. The organization also provide suitable demo makeover facility to the customers to various departmental store. This allow them to deliver the effectiveness of their product to the customers and also this help to make their brand image within the market of Singapore. Another promotional strategy for the firm is the integrated marketing communication. This process allow them to communicate with the customers and make their strong position within the market. The fact is clear that the organization need to develop effective promotional strategy that helps them to maintain their working function within the field (Saric, 2014). Promotional strategy that is being used by the organization is effective for the Singapore market that allow to capture the consumers and make their strong position within the marketplace. Promoting the products allow them to share the information regarding the products to the consumers of Singapore in the most effective and the suitable way.
Sodashi is the Australian skincare brand and they are holding the effective position within the market. The organization has numerous and effective suppliers and the distribution channel for their products (Liu, and Atuahene-Gima, 2018). One of the most effective distribution channels that are being provided by the firm is online which allow them to provide suitable and variable operational function within the market. Sodashi provides their products within the market and for that, they are having a suitable working function in the country. It is clear that the firm is developing numerous products according to the need of the customers and all the products are distributed in an effective way by the firm for the betterment of the company. Due to the high level of competition in the skincare industry, it becomes essential for the firm to provide suitable and valuable distribution strategy within the field. This helps the firm to maintain their position in the market and this is effectively used for the market to provide the valuable products. The most innovative way to distribute the products of Sodashi is the spa service that is being provided by the firm. They have spa outlets in Australia and also they are planning to open the outlets in Singapore to maintain their distribution process within the market (Sodashi Skincare, 2018). The products of Sodashi is also available in the various departmental stores so that the customers have the easy access to the products. Also, the products are available on the official website of the company along with the other sites.
Conclusion
Sodashi one of the best skincare brands in Australia and they are planning for international marketing in Singapore. It can be concluded from the paper that the organization has numerous spa outlets that allow the firm to grab the attention of the customers and also provide the most suitable and effective products within the market. The organization has the potential to enter the market of Singapore with the franchising market entry mode that helps to enhance the business in the most effective way for the firm. They have huge competitors in the market but at the same time, the organization is having a suitable working function within the market. It can be evaluated from the paper that the organization provides the most effective and suitable working function within the market to develop their products and their value within the market.
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