Words: 2748 Words Executive Summary Osim International Ltd has one of the most valuable healthy lifestyle brand in the global markets. The “uLove massage chair” is one of the product manufacturer by Osim Company. The company implements the adoption of marketing strategies that allows it to maximize sales and reach out to a wider target market. Shanghai is one of the most populous city in the world and in Hong Kong for its GDP per capita at purchasing power parity is the 6th highest globally (Wikipedia, 2010). Which means both of these countries has huge market and spending power to purchase the products. Customers follows a specific process when selecting, securing, purchasing, or using a product. They want to ensure that the purchased product has the ability to fulfil their needs. All of these points, Osim can meet the needs for majority of the populations. Introduction Osim is a famous international brand across the globe. It was established since 1980 in Singapore, and was founded by Mr. Ron Sim. Their company used the name of R Sim Trading. As he has a small start up capital, initially the company was concentrating on the marketing of household products. For example, like knife sharpeners, mobile clothes drying rods and knives. In 1987 he adopt the name Health Check & Care, the company mainly produces massage chairs, and it was a huge success despite the recession during that period of the economy. Mr. Ron Sim realized that the company needed a much more reputable name in its pursuit for international success. He decided to rename the company as OSIM, with the “O” to represent the world, and to combine with his surname “Sim” in 1994. With over 36 years of experience, Osim had become one of the global leader in branded healthy lifestyle products such as massage chairs, foot massagers, neck and shoulder massagers and slimming belt. PESTEL Analysis Political The analysis was discussed in the context of the climate of politics is detrimental to the business of OSIM in Hong Kong and China, the government is stable and thus the company has no reason to expand the basis of operation and increase the market base. Conflicts are no longer prevailing in these areas of operation hence there is high possibility of leaping good profits and returns. Environmental of the analysis The analysis of environment is necessary and enhances the understandings of their competitors as well as the needs and the requirements. The condition as there are prevailing in current weather changes is necessary to ensure that the demands was being identified as the opportunities as well. Social The social aspect of analysis is deemed to appear where the market is accepted according to the people norms. The culture of Chinese people permits consumption of particular products and services. Thus deviation from this creates a conflict of interest between the people and the marketers. There is a tradition that proposes that there should be a significant product base in the economy that is under consideration and this facilitates the circulation of wealth and distribution of resources appropriately. Technology The use of online advertising platforms that will create a wide awareness s for OSIM as well as cope with the current trends in the market. A website is suitable to enhance that there is all information available online pertaining to the product whenever the client requires. The use of digital media and other social media platforms where there are more and many customers who are interested in consumption of the product is necessary. Legal The legal stipulations in China are friendly as they promote consumption of local products and goods in the country. Thus it will promote in local trade. “Elias said the standards and guidelines are being formulate in such a way that they favor the current production and quality of the product”. (Alex, 2014, p.345). The extension of working hours and even prolonged time in terms of working. There is a detection of huge market opportunity whenever there is a prevailing need for constant health based brands. Marketing strategy that is adopted and ensures that there is monopoly power in practice is the key to success. The type of strategy will be penetration strategy that helps to promote the current product. “Anthony said Application of product –market matrix enhances the under stability of the development of marketing” (Godfrey, 2015, p.455). There is differentiation strategy and thus there is usage of different types of packaging and labelling techniques as opposed to the competitors. “Thomas said the innovative model of technology is necessary to provide a viable solution to the brand and also facilitate expansion” (Martin, 2012, P.134)”. There is a need to expand the product and also increase the internal economies of scale in order to capture the large market. The diversification strategy is where the company is engaged in other operations and businesses that will enhance the proper undertaking of wider market and thus facilitate competition that is fair. The product that are complimentary in nature can be identified and thus ensuring that the branding is conducted with respect to the strategies of expansion. The other important feature is the product development that entails undertaking of changes that will help cope with the problems in the industry due to intense competition. The modification process begins from this point and it is thus important to make possible development to eliminate boredom and depletion of the product from the market. “Peter said that Marketing plan for the locally based product known as OSIM (Sarah, 2013, p.344). The existing entity is in the market are able to familiarize with the new entry of the OSIM. Strength The strength of this product will be encompassed by building the customer trust which is very important because the customer is always right. Brand awareness entails changing the methodologies of advertising and thus adopting a more friendly approach that is good for the business. To occupy the numerous Uno or rather the number one status quo in Asia the product has to adopt the new styles of advertising. Printing and other sales increasing activities are important. Sales should first increase fort the product to beat other rivals in the market. Weakness and opportunity The alleviation of perception that the product belongs to the rich should be eliminated first in order to deal with the current issues emancipating. The luxury perception obtained by the middle class of whom they are the most customers in the entity is very vague. Medical benefits are important to make the product fit for consumption and this will enhance better living standards for the people. Placement is establishing new joints in other parts of the country and thus distribution channels that will create new opportunities and increase the market base. Lobbying is also an essential factor that can be used to place the product in the right market. Renovation of the product to meet the demand of the consumer and the needs as at the current taste and preferences. The diversification strategy is where the company is engaged in other operations and businesses that will enhance the proper undertaking of wider market and thus facilitate competition that is fair. The product that are complimentary in nature can be identified and thus ensuring that the branding is conducted with respect to the strategies of expansion. The other important feature is the product development that entails undertaking of changes that will help cope with the problems in the industry due to intense competition. The modification process begins from this point and it is thus important to make possible development to eliminate boredom and depletion of the product from the market. “Peter said that Marketing plan for the locally based product known as OSIM (Sarah, 2013, p.344). The existing entity is in the market are able to familiarize with the new entry of the OSIM. Placement is establishing new joints in other parts of the country and thus distribution channels that will create new opportunities and increase the market base. STDP Marketing plan for the locally based product known as OSIM and I have also detailed the procedures of marketing in application currently in Shanghai China and also Hong Kong. How the strategies implemented will help OSIM to survive the market with intense competition. The objective of the Product is to be in the leading market consumption and customer demand in China and Hong Kong. The stability to prevail in the market standing is being assessed. Segmentation, targeting, differentiation, positioning is known as the STDP. These are the factors that enhance the development of the market. There are several parts which are divided and allocated the economies to save which facilitate the marketing in our wide scope of the business. Targeting involves undertaking the activity of identifying the main interest in the market and thus obtaining the best clients in the market who will be able to cater for the product and give more returns as compared to the rest of the customers. Differentiation is the uniqueness of the product that prevails as a result of the originality and the incorporation of personal methods. The competitors or other companies dealing with the same product would have beaten the rival’s category thus reasoning the competition and emerging on the top position in the entire market. The product may be differentiated by use of labeling techniques and other packing materials as well as the wording to establish a new brand. Positioning is placing the company in the market where it will compete favorably without any difficulties. The positioning will entail a clear space for working and thus promote the trading activities in the region of operation. The position matters a lot as it enhances the capability to perform well. Development of Marketing Mix Strategy Product OSIM is a listed international limited company – It is using standardisation importing our product, the mainly produce and sells high quality healthy lifestyle products. The focus product are luxury massage chairs and various type of massager products. OSIM focused on four aspects of products, namely relax + relieve, tone + shape, check + measure and clean + purify, the product helps to maintain healthy lifestyle and allows consumers to relax. OSIM massage chair – combined pampering massage from head to toe, intelligent features to understand the needs of users and high quality product style with stylish design that accentuates elegance and luxury class, in order to satisfy the consumer’s needs and wants in quality life style. OSIM products are always welcome from the marketplace and high profitable in product life cycle, with maintained maturity level. Place OSIM have more than 34 retail outlets and online shopping platform, developing the product to Hong Kong and Shanghai where by the most populous and productive locations. OSIM marketing strategy is extensive point-of-sale networks and geographic coverage in the markets, with quality products must refer to better location provided, more convenient for customer to purchase the product and easier to connect with consumers. In these two destination are both busy cities, the population there are mainly stressful due to their busy schedules thus they will be motivated to buy massager products to relax during their free time at home. If the consumers finds it difficult to obtain the product they may turn to other alternative companies which benefits them through their convenient locations. However, each consumer has different needs in terms of time and place. In order to attract more customers, the product location should meet the customer’s requirements. The company can also provide delivery services to make it easier for customers. The decision of the location has to be taken into consideration through further research as it will be a long-term decision. This means that once it has been set up, it will be difficult to change the location. Price OSIM product’s selling price are around $2000 to $7800 per unit, product pricing strategy advantage will affect the profit margin and the quantity of sales received per unit. In order to achieve the selling price of the product, there are some method that can be used in which is cost-based pricing, targeting the medium to premium class consumers. Setting the price is determined by the objective of pricing – earning profit plus consumer satisfactions is the company goal. OSIM has a strategy in setting the price, based on cost-based pricing where the total cost of producing each unit to calculate the selling price. After that, the percentage of the profit added from the unit cost to be the selling price. Setting a price is not easy as there is a need for a strategy to set a product price. Not to set the product selling price too costly as it will be unaffordable for consumer. Though if the price were being set too low, the company will lose its profit and the consumer will have an impression that the product is cheap which cause them to lose their confidence in the product. When listing the price, discounts and allowances should be calculated in while setting the price. Promotion Promotion is one of the strategic to make consumer be aware of the product, it is also defined as communication between the product and consumer, the message of the product to consumer is through – television mass marketing media, radio advertising, Newspaper, magazine attachments with redemption and sponsorship. The objective of OSIM’s promotion is to increase their sales and popularity for the company. There are various promotion method, such as: Media advertising High attractive demonstration by artistes, combined with sound, movement, presentation and promoting good ideas. Low cost per exposure, large-scale distribution capabilities. Ensure messages were seen by the most relevant audiences. Newspapers Traditional advertising to attracting housewife and older generation audience. Larger geographic coverage. Combine with discount voucher is one of the most effective method. Magazine Appealing title to specific target groups. Titles are well respected and increase product prestige by association. Long lasting impression among readership. Sponsorship Sponsorship in event is the one of the most feasible and high repeat exposure. The brand name gain awareness and marketing coverage. Sales promotion in specific terms or periods to create the demand in sales. Combined with special discount or purchase with special gifts is a good method to attract consumer. Build the best public relationship with consumer through sponsorship with world cup, marathon event and/or Olympics is a good marketing communication and healthy publicity brand image. Design of implementation and control strategies Osim intend to enter the countries by themselves, as per their current reputations and image in Asia, it is safe to say that they are rather reputable in the market. Through further advertisements and marketing are to be done to reach out to more people in Shanghai and Hong Kong. Would strongly encourage Osim to engaged more reputable celebrities to represent their brand, in which it will leave an deep impression in people’s mind. Other than through advertising, they should come out with more wide variety of product and more innovative product in which their competitors do not have. Even through the design of their products to the functionality of their products, to be more futuristic and stylish for each season. To constantly upgrade in terms of technology, it will help customers to be more aware of Osim as well as gain great interest from the consumers. Osim can produce their products in China, in which then they can distribute their products to the various merchants to sell their products or through their own personal store. In which they can save in shipping cost as well as it will be easier to enter the market in China. As a communist country, they strongly support of their own local products that was being produced locally in their mainland. To enter the Hong Kong market, Osim can engage the different generation of top Hong Kong artistes, so as to get more personal with their customers. In which, it will attract the attention of potential customers from all age group. As well as advertisement to be communicate by their own widely spoken Cantonese language, so that it will be felt more personal to the consumers. Conclusion As per the above mentioned analysis from Political, Environmental, Social, Technology, Legal, Strength, Weakness, Opportunities, Threats, Segmentations, Targeting, Differentiation, Positioning, and the marketing mix strategy (Product, Price, Promotion, and Place), all these has helped to analyse and break down on what to improve on. As well as the implementations to enter into the China market and Hong Kong market. It will not be easy to penetrate in, but with the right strategies it will only allow Osim to be one of the top in the market. Reference (2017). Retrieved 14 April 2017, from http://www.bis.org/repofficepubl/arpresearch_fs_200803.01.pdf Peter, M. (2013). Marketing plan for the locally based product known as OSIM: England, Britain press. Thomas, H, (2014). The innovative model of technology is necessary to provide a viable solution to the brand and also facilitate expansion: Leicester, European press. Anthony, R. (2014). Application of product –market matrix enhances the under stability of the development of marketing: Australia, Gotham press. Elias, P. (2016). The standards and guidelines are formulates in such a way that they favor the current production and quality of the product: Berlin, Parana press. Osim International. (2017). En.wikipedia.org. Retrieved 3 September 2013, from https://en.wikipedia.org/wiki/Osim_International Economy of Hong Kong. (2017). En.wikipedia.org. Retrieved August 2010, from https://en.wikipedia.org/wiki/Economy_of_Hong_Kong osim. (n.d.). Retrieved from http://weareosim.wixsite.com/osim/marketing-mix About osim. (n.d.). Retrieved from https://www.ukessays.com/dissertation/examples/business/about-osim.ph