Marketing strategy for herborist Essay Example

align="justify">In September 2008, the company successfully entered the cosmetics market in Paris and launched their skin care products at the Sphere flagship store on Avenue des champs Ulysses. The products quickly became a top 10 best seller within one month. Following this success, Herbalist entered the Holland market in October 2008 and created awareness of Chinese Yin Yang philosophy among European media. In 2009, Herbalist expanded into the Italian, Spanish, Polish, and Turkish markets with Seaport. This trend of international expansion continues as ambitious entrepreneurs aim to increase brand recognition worldwide. To support this growth, the marketing department must conduct market research and develop customized marketing plans for different countries. Customization in international marketing refers to adapting products to match local market conditions based on the needs and desires of target customers. (Estate, M. I Helsel, K. 007)

In that regard, customization is oriented towards the market rather than the product and has the goal of enhancing customer satisfaction by adjusting the company's products to meet Lola's requirements. The most effective marketing strategies are those that are straightforward and easily comprehensible as complexity in the plan will result in failure.

One of the main risks associated with the planning process is the failure of organizations to consistently monitor their performance against the implemented plan. It is uncommon for businesses to adhere strictly to their plans, often requiring frequent adjustments (Tim Jackson and David Shaw, 2009). Therefore, it is crucial for brand leaders to focus on acquiring cultural knowledge rather than feeling uneasy about researching traditional consumers.

To achieve success, cultural brands must align with the target market and establish a solid product identity. It is

also crucial for these brands to continually adapt to changes in popular culture. Ultimately, the marketplace determines whether a brand succeeds or fails. The primary research data for this case study was collected through a questionnaire survey involving 100 respondents from Malaysia (Ralph et al., 2009).

The survey aims to conduct in-depth market research on Herbalist's potential market in South East Asia, considering its existing customer base in China, France, Holland, the United States, and other western countries. The survey took place in November 2013 and lasted for one week using the website www.surveying.com for data collection. The results of the questionnaire, along with a brief analysis of the charts, are provided in the appendices.

The language issue was not a problem as the majority of Malaysians were able to understand and collect the background information of the respondents, as well as monitor their buying habits on cosmetics. Additionally, the survey aimed to determine their attitudes towards cosmetics that use traditional Chinese herbal medicine as ingredients. This research intends to suggest a potential market for Herbalist's future business expansion, using Malaysia as an example. It also serves as a reference for the marketing department to develop a specific marketing plan for the South East Asian market.

One example of Herbalist's marketing strategies in China is their high-end SPA center, established in September 2002. This center exclusively caters to PIP clients and members, aiming to increase brand loyalty and influence in the cosmetics market. The well-trained beauticians provide professional and innovative beauty care services, creating a luxurious image for the brand and enhancing its reputation. In addition to setting up cosmetics counters at department stores, this SPA center

is another avenue for promoting the brand.

The Herbalist company intends to grow its business by opening over 100 Spa centres in the next three to five years. The company is committed to its clients' well-being and considers the membership system as the best way to stay connected with targeted consumers. To establish a strong bond with consumers, Herbalist employs different approaches such as e-commerce websites, postage services, magazines, PIP parties, and bonus points gift redemption. These strategies are designed to keep consumers informed about the latest products and foster brand loyalty.

Additionally, Herbalist conducted a comprehensive analysis of the questionnaires administered through the CRM database to obtain customer feedback for future enhancements. Their exceptional CRM system was developed with a solid capital base and comprised of a highly detailed marketing department and expert brand managers. The marketing department is composed of four segments: product development, CRM, media communication, and brand departments.

The operating and marketing system of Herbalist in China differs from other countries due to its role as the main base for numerous product resources that require consistent availability. Additionally, last year in China, Borneo was appointed as the first chef designer for Herbalist, empowering them with decision-making authority regarding product interpretation, orientation, line design, and channel negotiation. In France, the marketing strategy of Herbalist involves a unique approach to cabinet display design in cosmetics department stores, where fragrances are given priority alongside skin care products, unlike in China.

Despite the abundance of beauty care products in the French market compared to China, Herbalist faces a significant challenge. To distinguish itself from competitors, the company made a substantial investment in cabinet displays and

recruited a team of trained French individuals as their sales team. This exclusive sales team regularly visits the Seaport to interact with clients directly, providing explanations about product functions and brand concepts. This strategy aims to bridge the gap with consumers and enhance customer engagement.
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The cultural differences between the East and West present both challenges and advantages for the company. However, these differences actually contribute to the uniqueness of the Herbalist brand compared to its competitors. The company's mission of promoting Chinese herbal medicine in Europe is not just about talk, but also about the effectiveness of its products and brand image.

Herbalist currently has over 200 beauty care products in their extensive product line to offer a diverse selection for the French market, catering to the needs of every consumer. Additionally, the Chinese herbal medicine laboratory and research center, which was funded with millions of Yuan, ensures a constant supply of resources to meet market demands. As for their pricing strategy, Herbalist established itself as a luxury cosmetics brand upon launching in France.

Seaport, the famous cosmetic chain store, has partnered with Herbalist as a platform to maintain the same selling price for their products as in Mainland China. This is done in order to position the brand as the most affordable luxury cosmetics brand in comparison to renowned international brands like Lance and Esteem Lauder, who have successfully established brand loyalty in the market. However, in the United States, Herbalist employs a different strategy to differentiate itself from its main competitors (Dennis Dock 2000).

To surpass its main competitors The Body Shop and Skills, who are also known for using organic ingredients

in their personal care products, Herbalist is pricing their products similarly to luxury skincare brands like Bothers and Clique. This is an effort to enhance their brand value. The SOOT Analysis of Herbalist is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats in a project or business venture.

The text discusses the process of identifying and specifying the objective of a business venture or project, as well as recognizing the favorable and unfavorable internal and external factors that can influence its achievement. It mentions strengths such as the establishment of Herbalist membership to maintain a strong connection with customers. Additionally, it highlights the goal of introducing the first premium brand of modern Chinese herbal medicine middle to high-end cosmetics into the European market. The text also emphasizes the importance of having a reasonable sales channel, such as exclusive stores and SPA shopping malls, to meet the various needs of consumers.

Strong Points: Effective improvement on customer communication and the most professional marketing management. Still undergoing youth period, gains powerful supports from Schwa's professional research and development team. Succeed in the expansion to European market by maintaining a close partnership with Seaport. Left a clear brand image to consumer: organic, healthy, natural
Weaknesses: Inadequate experience during the process of initialization. Consumers overseas seems unenthusiastic in accepting a new brand due to the shortage of brand awareness.

The cooperation with Seaport has its benefits, but being under their control as the only distributor in Europe has its limitations for the brand. However, there are opportunities for the brand in the European market under Seaport's leadership. One opportunity is

that there are not many foreign competitors in the cosmetics field who use Chinese herbal medicine as their selling point. Additionally, there is growing demand for cosmetics in the Asia Pacific and Latin America regions, and green and natural products are becoming popular in Europe. The success of the 2008 Olympic games in Beijing also attracted attention from Westerners to Chinese traditional elements. On the other hand, there are threats to consider, including tough competition from well-known international cosmetics brands such as Lana?¶me, Esteem Lauder, and Christian Dior. Furthermore, Seaport's control hinders certain brand innovations, and many European consumers tend to have brand loyalty to existing brands.

Challenging is the task of attracting foreigners' attention to herbal products due to the extended time required to prove their effectiveness. The sales decline caused by the global financial crisis has made price a significant factor for consumers. Moreover, Europeans hold a negative perception towards products labeled as "Made in China," which must be overcome for success in international markets. This case study aims to analyze Herbalist, a Chinese cosmetics brand's strengths and weaknesses, and propose an effective marketing strategy for expanding into other countries. Extensive research is necessary in other countries to successfully expand since internationalization is crucial for achieving a prominent position in the world market.

The importance of adapting to different countries and cultures should not be underestimated for Herbalist, a domestic personal care brand from China. The brand has a ten-year history and is known for its organic image. Despite being in its early stages, Herbalist has the potential to successfully compete with international cosmetics brands due to similarities and differences in cultures, political

issues, values, consumer behavior, consumer needs, weather, and common beliefs between China and other countries.

The research questionnaire for Herbalist was conducted among 100 local and Malaysian Chinese, revealing that 29.29% of respondents expressed interest in trying Chinese herbal medicine cosmetics. Additionally, 56% stated they would be willing to try it if a reputable herbal personal care brand was introduced in the future. Therefore, it is highly recommended that Herbalist establish a presence in Malaysia as the first step in entering the South East Asian market. Malaysia is an ideal market for Herbalist due to its diverse ethnic and cultural makeup.

In Malaysia, there are approximately 6,960,000 Malaysian Chinese who have inherited Chinese cultures from Mainland China and have a preference for traditional Chinese herbal medicine (Malaysia, 2013). Additionally, the local Malaysian population has their own inclination towards using medical herbs in their culinary arts, dedications, and personal care products like body soap and facial wash. Furthermore, Herbalists should target Thailand, Indonesia, and Singapore, which have the largest Chinese communities in the world, to initiate a new wave of Chinese herbal medicine in South East Asia.