A.S. Watson Marketing Case Analysis

A.S. Watson, Asia's leading health and personal care company, has 19 retail brands and over 8,400 retail stores in 34 markets and over 1,800 cities*** in Asia and Europe. Below is my case study about Watsons marketing, welcome to read it!

A.S. Watson Marketing Case Analysis:

I. A.S. Watson's Brand Introduction

(1) Basic Introduction

A.S. Watson is a brand of the Watson's Group, a subsidiary of Hutchison Whampoa Limited, which focuses on health and beauty. Founded in 1828, A.S. Watson Group (Hong Kong) Limited is the international retail and food manufacturing arm of Hutchison Whampoa, with a presence in 34 territories*** operating more than 8,400 retail stores and employing 98,000 people. The Group is involved in a wide range of commodities including healthcare products, beauty products, fragrances, cosmetics, food, beverages, electronics, wines and airport retail business. With over 1,000 stores and 30 million members in more than 200 cities in China, A.S. Watson is by far the largest health and beauty products retail chain in China.

II. Marketing Strategy

(I) Target Consumer Segments

In an increasingly homogenized and competitive retail industry, the only way to win in the market is to provide consumers with the right choice of products and a quality shopping experience. The first and foremost way to achieve this is to accurately target consumers. A.S. Watson's target consumers in mainland China are fashionable women between the ages of 18 and 35 with a monthly income of RMB 2,500 or more. This is because older women have long had their own fixed brands and lifestyles, which are difficult to change. This group of people under the age of 40, on the other hand, has a challenging spirit, pays more attention to individuality, and likes to experience high-quality and novelty products. At the same time, it is the fastest-growing income group among women, with strong spending power, but usually time-strapped, not too fond of shopping in hypermarkets or supermarkets, and in pursuit of a comfortable shopping environment. These consumer characteristics are very much in line with Watsons' product positioning.

III. The Innovation Process

(1) Winning with Stability

A.S. Watson, through years of in-depth research and study of the retail market in Mainland China, has summarized the most appropriate positioning and development strategy for brand development. A.S. Watson has long established a solid position as the largest health and beauty personal retailer in the Mainland, and has been closely monitoring market changes to capitalize on the timing and momentum. The development of a company is not measured by the speed of its growth, as everything develops in its own way, influenced by timing and a variety of factors. Over the years, A.S. Watson has always been keen to understand, study and analyze market trends.

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Watsons Marketing Case Analysis

I: the basic situation

1. Survey location: No. 4 Yanwu Road, Siming District, Fu Wanbang Commercial Plaza, Fu Wanbang, B1 floor (Watson's (Xiamen University store))

2. Area: business area of 270 square meters + 30 square meters of locker rooms, sundry

3. p> 3. Number of employees: 8 people

4. Treatment: secondary school interns: basic salary of 1150 (including 100 full-attendance award) + sales commission;

College interns: basic salary of 1200 (including 100 full-attendance award) + sales commission.

Bachelor's degree interns: basic salary 1250 (including 100 full-time award) + sales commission.

Formal graduation to join the company's staff: basic salary of 1300 (including 100 full-time award) + sales commission.

According to the company's requirements to implement the shift. Enjoy 8 days of paid annual leave and 6 days of paid sick leave throughout the year. Store allocation in accordance with the principle of proximity.

II . Xiamen University West Village Watsons competitive advantage:

1. Geographic advantage, Watsons is located in Xiamen University West Village, Xiamen University, there are more than 20,000 female cosmetic users and a very large number of male cosmetic users, has a very wide audience.

2. Brand advantage, Watson's popularity is much higher than other cosmetic stores outside the Xiamen University West Village, the attraction of customers is much higher than other stores.

3. Quality advantage, Watsons full range of guaranteed genuine.

4. Variety advantage: Watson's in addition to having the major brands of cosmetics business rights in addition to spontaneous research of more than 1500 kinds of cosmetics, in addition to Watson's wide range of business, in addition to cosmetics in the store, the same concurrently engaged in health care, food and so on a variety of commodities.

5. Marketing advantage, Watsons has a variety of brand promotional tools.

And so on

III. Watsons competitive disadvantages:

1. The price is relatively high compared to other cosmetic stores or supermarkets.

2. The quality of its own brand is difficult to guarantee, and lack of competitive advantage with other well-known brands.

Watson's Marketing Case Analysis

I. Watson's Overall Structure

First of all, the structure of Watson's products is 15% pharmaceuticals, 35% cosmetics and skincare products, 30% personal care products, and the remaining 20% are food, beauty products, and clothing and accessories. It is known as ? Personal Care Specialist? As the market entry point, low price as the trigger point, around the "health, beauty, happiness" three major concepts, to provide consumers with cost-effective products, elegant shopping atmosphere environment and professional information services to convey the concept of a positive and beautiful life, aims to help consumers who love life and pay attention to quality of life, shaping the unity of the inner beauty and outer beauty.

Second, A.S. Watson's positioning of Asian women

Compared to women in Europe and the United States, Asian women spend more time shopping and are more willing to invest a lot of time to find cheaper or more appropriate products. The average time spent in each store is 20 minutes in mainland China, compared to about 5 minutes in Europe, a difference that has led Watsons to target women aged 18-40 in mainland China, especially the fashionable 18-35 year olds. This is because women in the 18-35 age group like to use the best products and are willing to show themselves in front of their friends. They are more willing to use money to bring big changes for themselves and are willing to make various new attempts.

Third, Watson's cooperation strategy

By marrying large commercial real estate brands, Watson's local store opening strategy in China has gone from steady and calm to aggressive and explosive. on February 19, 2010, Watson made a major decision: it signed a strategic cooperation agreement with the two giants of China's commercial real estate industry, Dalian Wanda Group and COFCO Real Estate Investment Company Limited, respectively.

Moreover, A.S. Watson's acquisitions have given the company plenty of room to maneuver in terms of private brand creation and product development, channel accumulation, and so on. 2005 saw A.S. Watson's HK$5.5 billion acquisition of France's largest and longest-established perfume retailer, Marionnaud, and its subsequent acquisition of the St. Petersburg, Russia-based health and beauty chain, Spektr Group. Spektr Group, a health and beauty products chain based in St. Petersburg, Russia. Through a series of mergers and acquisitions, A.S. Watson has moved from Asia to Europe, quietly completing its globalization process.

Fourth, the uniqueness of Watson's

In addition to the introduction of a large number of upstream manufacturers of brands, the launch of its own brand Watson's is a major must-have. With ? Watsons? The standard and brand name of a large number of commodities, so that the price of goods can be reduced to attract price-sensitive consumers, through the private label, Watsons is always dealing directly with consumers, can be timely and accurate understanding of consumer demand for a variety of information on the commodity, but also timely analysis of various types of commodities to grasp the sales situation. In the process of implementing the private label strategy, new product development and design requirements are put forward by the retailer, which, compared with manufacturers, has the characteristics of a short product development cycle, production and sales are not easily disjointed, and so on, and reduces the risk while lowering the cost of product development. A.S. Watson is precisely through its own brand as a platform to combine low prices and differentiation, to achieve low prices on the basis of differentiation, to provide customers with a variety of rich high-quality, low-priced goods, with cost-effective also meet the needs of customers, so that customers to form a dual loyalty to the product and the enterprise, and to become a competitor is difficult to replicate the core competitiveness of the competitors, so that in the mainland China market to take the lead.