Objectives And PESTLE Analysis Of Sodashi Skincare Brand In Hong Kong Market

Sodashi skincare brand objectives

Discuss about the Changing Nature Of Global Marketing.

The paper provides information on the objectives of the Sodashi skincare brand and along with this pestle analysis of the brand on entering the Hong Kong market are also discussed in this text. Furthermore, the paper also provides swot analysis, competitor analysis, marketing strategy and one mode of entry of this skincare brand in the Hong Kong market.

Sodashi is a skincare brand in Australia whose main objectives is to deliver the best skin care product that can fulfill the needs of the consumer. Apart from this, the company motive is to exploit the premium skincare products like body oil, face cream, and many other skin related products so that they can acquire superiority brands and fulfill the customer needs and desires by providing a good service to the consumer (Liu, and Atuahene-Gima, 2018). By providing good services the company want to achieve as one of the leading brands in Hong Kong. After becoming a leading brand of skincare their main aim is to impress as well as maintain a consistency within the customer services.

The pestle analysis of Hong Kong on the basis of the market environment towards the skincare brand Sodashi are as follows:

1. Economic environment: Hong Kong is considered as the third largest financial center in the nation so the country is financially strong in the business. Though in the previous years the international business quite slowdown due to some economic causes (Kraus et al., 2015). Due to this government take the serious step to control the losses and thus it can be seen that the company Sodashi can gain a huge profit on introducing their product in the Hong Kong market.
2. Social environment: The society of Hong Kong belongs to different cultures and for this, in their society, a discrimination between the genders is always present. The women are not given so much importance in the society (Jiang et al., 2015). As Sodashi is a skincare brand especially used by women so the improvement of the brand in the society creates some problem. Though modern environment is also present the presence of backward classes should affect the brand growth in the market (Madanoglu et al., 2017).
3. Legal environment: A simple tax system has been present in Hong Kong country and the tax rate is quite low than any other countries in the world (Jell-Ojobor, and Alon, 2017). This simple tax system is also applied to the international company. Though Sodashi Company wanted to start their business as an international brand and the tax rate of the skincare brand is quite low in this country which helps the company to run their business with a huge profit.
4. Political environment: Hong Kong is adopting two system in one country policy for the political factors. The political factor is strong in this country on the basis international market (Hadjikhan et al., 2016). As Sodashi is a skincare brand so the political factor helps the industry to grow their business in the market. Apart from this less corruption and the growing economic market also influences the brand to start their business in this country.
5. Technological environment: The use of internet through social media has increased the marketing strategy of a business and it also helps the company to spread their business worldwide (Jean et al., 2014). Due to this internet facility in Hong Kong helps the Sodashi skincare brand to promote their business in this internationally and also the presence of well-educated people in this country makes this company profitable in the market.

Forces Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Power
Bargaining powers of buyers	High
Threats of Substitutes	Medium
Bargaining power of suppliers	High
The threat of new entrance	Low
Intensive of Competitive Rivalry	High

There are many skincare brands present in Hong Kong of which the main competitors of this Sodashi brand in the international market are Procter & Gamble (P&G), L’Oreal, Shiseido, Unilever, and Amway. The marketing strategy of the Procter & Gamble (P&G) company is to maintain a high-quality product that can fulfill the needs of the customer (Oliveira et al., 2017). Along with this, they maintain a reasonable price of their product so that the consumer can afford their product. Although some product of this brand is quite similar to the other brand so, for this reason, they have appointed a professional marketing team that always keep updating their product and reduces the risks of the competitor regarding the products. Due to their innovative marketing strategy, they became a good competitor of the Sodashi Brand in the international market. Another competitor of the Sodashi brand is L’Oreal whose main business strategy is to make innovative products that can attract the people to buy their products (Yuen et al., 2016). The organization main strategy is to test the individual product so that no harmful activities will occur on using this product. Due to this innovative ideas, the product stands a good position in the Hong Kong market and become one of the leading brands there. Shiseido is also a competitor of this skincare brand which has targeted the wealthiest consumers and thus makes new products having a low potential risk and value of their product is quite low in the market (Bai, and Chang, 2015). This is the main actors that attract the consumer to purchase their product and hence it gains a huge market share in the business. The marketing strategy of the Unilever is quite different from the other products. They sell their product at a high price but of good quality and one of the strategies of the company is to offer combo packs which are lower than the product of the other brands. Apart from this they also sell their product in the wholesale market and this strategy makes the product as one of the leading brands in Hong Kong market industry. The last competitor of this Sodashi skin care brand in Hong Kong is Amway because they make a high-quality product and this product can be used by every age group (Hoffman et al., 2016). Since their prices are very high so the market share of this company will decrease to the present day.

Brand name	Market share
Procter & Gamble (P&G)	12.6%
L’Oreal	9.1%
Shiseido	3.6%
Unilever	3.3%
Amway	2.5%

Strength	Weakness
·         The company produces natural product thus having limited competition in the market ·         Present and distributed as leading brands throughout the world ·         Reputed and effective product as per the spa industry ·         Ingredient are fruitful for the skin and are well packaged ·         Business strategy of the company are well established ·         Having a good relationship with the skincare and spa industries in the market	·         The skincare company is not available in every places in the world ·         Low recognition of the brand between the business community, customers and social media ·         Production capability is limited for this company
Opportunities	Threats
·         Sodashi becomes the leading spa and beauty product brands ·         Rapid growth of the industry ·         Products are unique among the others ·         Business growth through online processes ·         Launching of new products ·         Appointing specialist for the business growth ·         Launching spa industry throughout the nation ·         Make partnership with other brands ·         The trend of using the natural and organic product should be maintained	·         The business grows quickly to fulfill demands ·         Manage the needs of the company partners located internationally ·         Selling the product online without experiencing it ·         Other competitive skincare companies that has achieved a leading position in the market

Competitor analysis of Sodashi skincare brand in Hong Kong market

There are various modes of entry to the international market but the most suitable entry modes of this Sodashi Company in Hong Kong market is franchising. Under this mode of entry, an independent company or organization named franchisee mainly operates all the function of the business of the Sodashi Company and the franchisor mainly control all the business. In this case, the franchisee has to pay a certain amount to the original company. Apart from this, the franchisee has to fulfill all the requirements of the franchisor (De Mooij, 2015). As Sodashi is a skincare company so the advantages of using this mode of entry in Hong Kong market are low risks in the financial matter and they will capture the market needs at a low cost. Apart from this on using this modes the company should avoid the foreign investment on the market and also gives a low tax rate than any other international company and the franchisee has a good control over the market that helps the Sodashi Company to makes their business profitable in the Hong Kong market (Zhang et al., 2015).

Segmentation is the process of driving the market as per the needs of the consumers. Thus segmentation is considered as the basic component of marketing strategy. As the Sodashi is a skincare brand so the market segmentation will be based on the demographic, psychographic and media segmentation. Demographic segmentation includes age, gender, income etc. so for this company, the main target will be on the women ranging in from teenager to elder ones. As the company produces the natural and organic product so it mainly attracts the women ranging in age from 20 to 45 years. In case of psychographic segmentation the market strategy of the company is to determine the lifestyle of the people and thus they mainly targeted the business women or the college going girls and influenced them to use their products (Baena, and Cerviño, 2015). The last marketing strategy is the media segmentation where the proper description of the product should be promoted so that the people should aware of this product and use it giving benefits to the company.

As Sodashi is a skincare brand so the target market of this company is quite critical. The skincare products formed by this company is mainly based on women so the primary target of the company is mainly the women those who have an age range in between 15 to 60 years (Andreu et al., 2017). As the brand launches organic and natural skincare product that does not affect the skin so it has attracted by a various consumer. Their main strategy is to give the best quality product that does not harm to the skin and thus the women ranging in age from 20 to 45 years are mainly attracted by the product of this brand. Apart from this the company secondary target is to attract the working women mainly and businesswomen as they have very fond of their skin and thus is helpful for the growth of the business.

Marketing strategy of Sodashi skincare brand in Hong Kong market

The brand positioning is the main factor for which the business can grow in the market and gain a huge profit.  For making the brand as one of the leading industry proper care should be given by the organization head to fulfill this category (Agarwal et al., 2018). As it is skincare brand so promotion of the brand by an actor or any other celebrity gives much help for the growth of the firm and hence the brand can attain a good position in the market. Apart from this using social media for the promotion of this skincare brand also gives a huge growth of the industry in the Hong Kong market. Along with that if the proper advertisement is given on the Sodashi brand in the whole Hong Kong city then it also makes the brand to hold a good position in the market.

The product only should be accepted by the consumer only when it gives much benefit than the other products. Due to this, the company should make a proper business strategy that can attract the consumer for purchasing their product rather than the other brand (Agarwal, and Wu, 2018). Though the product of this Sodashi brand is natural and made up of organic ingredients some faults is always present in their products. The quality of the product is not so much good then the product of other brand and thus the business gets affected by this. The skin type is different for different people but the product of this company produces one type of product for all these different skin care people and it causes a huge effect to the mind of the people and the consumer hesitates to buy their product (De Villa et al., 2015). Thus the company should make different products for the different group of people depending on the skin type and thus the business should gain a huge profit in the market.

The product produces by the organization will help to create an image of the firm in the consumer mind. The image will reflect the customer opinion and beliefs of the particular product. The marketing mix strategy of the brand will be such that they can properly understand the needs of the customer so that they can make the skincare product according to the customer choice. Apart from this, the product should be clinically tested so that no harmful effect will be caused by using this product. One of the marketing strategies of the company should be like that where all the products are divided according to the type of oils, soap, face care products etc. and this helps the consumer to search the product easily according to their needs and it also helps the growth of the company business in the Hong Kong market (Boso et al., 2018). All this innovative idea helps the company to make interest from the consumer on buying this product. Along with this the company another strategy to start a business in the international market is to group the type of product from lowest to highest size so thus it helps the customer for choosing the product easily from the market.  

Mode of entry of Sodashi skincare brand in Hong Kong market

Sodashi is one of the leading skincare brands in Australia. Since the business spreads in the international market of Hong Kong so the price strategy of the brand should changes so that the business can gain a huge profit from the market and also it helps the growth of the industry in the market. The product has earned a huge profit in the Australian market but the marketing strategy of the organization will be such that it attracts the people of buying their product apart from the other brand (Eteokleous et al., 2016). For this, they will sell the product at a wholesale rate at a low price so that they gain the interest of the consumer. Also, the product cost will be lower and are available in almost all the salon of Hong Kong market so when a customer visit there they are attracted by the product and ready to purchase it. Apart from this, the product should be available in cosmetics stores, online and also in the supermarket so that it can be available easily by the consumer (Bai et al., 2017). The other marketing strategy of the brand for selling their product in the international market is to sell the product at a low cost with a high quality. Thus the marketing strategy of the company based on pricing will mainly depend on the product demand and superior pricing.

Promotion of a brand is the main factor that attracts the people on the particular product band for this proper strategy should be maintained. For introducing the Sodashi skincare brand in the international market the company main strategy is to promote the brand in the whole countries of China and only Hong Kong. Due to such strategy, the customer gets to know about the brand and the services they are provided as well as they know about the products along with it uses. For making the brand as one of the leading brands in the market the organization has to promote the brand by making an advertisement about their products in the local newspaper so that the people should aware about the product. Another marketing strategy of the brand is to bring some models or actor or actress or fitness model for promoting the brand so that the business can grow in the market and the consumer should aware of this brand (Li et al., 2016). The best promotional strategy will be to hire one of the popular celebrities of Hong Kong as a brand ambassador for the popularity of the brand and it increases the growth of the firm.  The effective use of social media platform needs to be done as it generates a huge impact on a large number of users and thus television is one of the media used by the organization for promoting purposes. Apart from this, the company will arrange to campaign for the product so that the people should involve themselves and know about the product of this brand (Kolk, 2016). Moreover one of the promotional strategies of the brand will be such that it arranges events once in a month for the promotion of the brand.

On the basis of the distribution, the product should be available to the consumers worldwide. As Sodashi promotes their business in the international market so they have makes a proper distribution strategy for the growth of the business. One of the distribution strategies of the brand will be such that the products should be available in every departmental store, salon and also in cosmetic stores so that the product will be distributed which helps the brand to promote their business in the market (Shoham, 2017). The product will also distribute in the supermarket as well as the whole seller stores so that the business will grow more in the market and also in the country too. Moreover, to make the product famous in the market the distribution strategy of the organization should be that the brand should advertise in their product with the help of social media by making an online platform where the consumer can see the product and chose it as their needs. Along with this in the store proper trained advisors should be placed for assisting the consumer on any skin care related quarries. In this way, the brand should create a positive belief among the consumer which help the business growth of the firm.

Conclusion

The paper gives information on the Sodashi skincare brand and their main objectives of the organization in Hong Kong market. The pestle analysis of the brand concluded that they gain a huge profit of introducing this brand on the Hong Kong market. The competitor of the Sodashi brand is also specified along with their market growth and business strategy which makes the brand as one of the leading brands in the country. The swot analysis of the brand is discussed briefly here. Along with this four marketing strategy and modes of entry of the brand in Hong Kong are also discussed.

References

Agarwal, J. and Wu, T., (2018). The Changing Nature of Global Marketing: A New Perspective. In Emerging Issues in Global Marketing (pp. 3-11). Springer, Cham.

Agarwal, J., Vaschilko, T. and Loukoianova, E., (2018). A Thematic Exploration of the Changing Trends in Political Risk and Global Marketing Scholarship in the Last Three Decades (1986–2015): Implications and Future Research. In Emerging Issues in Global Marketing (pp. 15-59). Springer, Cham.

Andreu, R., Claver, E., and Quer, D., (2017). Foreign market entry mode choice of hotel companies: Determining factors. International Journal of Hospitality Management, 62, pp.111-119.

Baena, V. and Cerviño, J., (2015). New criteria to select foreign entry mode choice of global franchise chains into emerging markets. Procedia-Social and Behavioral Sciences, 175, pp.260-267.

Bai, H., McColl, J., and Moore, C., (2017). Luxury retailers’ entry and expansion strategies in China. International Journal of Retail & Distribution Management, 45(11), pp.1181-1199.

Bai, X. and Chang, J., (2015). Corporate social responsibility and firm performance: The mediating role of marketing competence and the moderating role of market environment. Asia Pacific Journal of Management, 32(2), pp.505-530.

Boso, N., Debrah, Y.A. and Amankwah-Amoah, J., (2018). International marketing strategies of emerging market firms: Nature, boundary conditions, antecedents, and outcomes. International Marketing Review, 35(2), pp.202-214.

De Mooij, M., (2015). Cross-cultural research in international marketing: clearing up some of the confusion. International Marketing Review, 32(6), pp.646-662.

De Villa, M.A., Rajwani, T. and Lawton, T., (2015). Market entry modes in a multipolar world: Untangling the moderating effect of the political environment. International Business Review, 24(3), pp.419-429.

Eteokleous, P.P., Leonidou, L.C. and Katsikeas, C.S., (2016). Corporate social responsibility in international marketing: review, assessment, and future research. International Marketing Review, 33(4), pp.580-624.

Hadjikhani, A., Lee, J.W. and Park, S., (2016). Corporate social responsibility as a marketing strategy in foreign markets: the case of Korean MNCs in the Chinese electronics market. International Marketing Review, 33(4), pp.530-554.

Hoffman, R.C., Munemo, J. and Watson, S., (2016). International franchise expansion: the role of institutions and transaction costs. Journal of International Management, 22(2), pp.101-114.

Jean, R.J., Sinkovics, R.R. and Hiebaum, T.P., (2014). The effects of supplier involvement and knowledge protection on product innovation in customer-supplier relationships: A study of global automotive suppliers in China. Journal of Product Innovation Management, 31(1), pp.98-113.

Jell-Ojobor, M. and Alon, I., (2017). 17. Determinants of master international franchising. Handbook of Research on Franchising, p.348.

Jiang, W., Hu, X., Ye, K. and Wong, J.K., (2015). Market structure of international construction professional services: Evidences from top design firms. Journal of management in engineering, 32(1), p.04015033.

Kolk, A., (2016). The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business, 51(1), pp.23-34.

Kraus, S., Ambos, T.C., Eggers, F. and Cesinger, B., (2015). Distance and perceptions of risk in internationalization decisions. Journal of Business Research, 68(7), pp.1501-1505.

Li, C.Z., Hong, J., Xue, F., Shen, G.Q., Xu, X. and Luo, L., (2016). SWOT analysis and Internet of Things-enabled platform for prefabrication housing production in Hong Kong. Habitat International, 57, pp.74-87.

Liu, W. and Atuahene-Gima, K., (2018). Enhancing product innovation performance in a dysfunctional competitive environment: The roles of competitive strategies and market-based assets. Industrial Marketing Management.

Madanoglu, M., Alon, I. and Shoham, A., (2017). Push and pull factors in international franchising. International Marketing Review, 34(1), pp.29-45.

Oliveira, J.S., Yazdani, N., Cadogan, J.W., Hodgkinson, I.R., Tsougkou, E., Story, V.M. and Boso, N., (2017). The empirical link between export entry mode diversity and export performance: A contingency-and institutional-based examination. Journal of Business Research.

Shoham, M.M.I.A.A., (2017). Push and pull factors in international franchising. International Marketing Review, 34(1), pp.29-45.

Yuen, T.W.W., Cheung, A.C.K. and Yuen, C.Y.M., (2016). A SWOT Analysis of Exporting Hong Kong’s Higher Education to Asian Markets. In Internationalization of Higher Education (pp. 101-124). Springer, Singapore.

Zhang, C.X., Decosta, P.L.E. and McKercher, B., (2015). Politics and tourism promotion: Hong Kong’s myth-making. Annals of Tourism Research, 54, pp.156-171.