Study On The Channel Marketing Of M - Brand Skin Care

With the reform and the finance revolution of mainland China, the economy has a significant double-digit growth for in the past decades, people went from food and clothing based on their substance requirements phase evolved to the stage of pursuing quality life. According to Maslow’s theory, once people establish the food and clothing, basic physiological and safety needs are met, social needs, esteem needs and self-actualization needs will start generating. Skin care products make people feel younger, more beautiful, and perfectly meets Maslow’s theory of "social needs" and "respect demanding". Resulting the skin care market to begin and flourish.According to the China Flavors and Fragrances Cosmetics Industry Association statistics, in1980, the begining of the reform and finance revolution, China’s cosmetics industry production and sales were at350million RMB, by2007, it had reached120billion RMB,342times in1980. More than13billion RMB in2008, and14billion RMB in2009. In2006, in the history of the development of China’s cosmetics industry, production and sales exceeded100billion for the first time, ranked second in Asia, ranked eighth in the world. The15th China Beauty Industry Wealth Created Forum announced the skincare market exceeded200billion RMB in2011. Only behind the U.S. and Japan, become the third-largest cosmetics sales market in the world.China, as the largest single market in recent years in the world, has been a various international brands battleground. After30years of the reform and finance revolution, the skin care market went from monotonous deserted to flourishing. International brands with large groups behind have invested in the Chinese market thoroughly. With market segmentation trends, major department stores, shopping centers and malls have all been occupied by successful and established major brands. With brand awareness, capital, human resource and experience lacking and at disadvantage, it’s no easy task to stay competitive in the fierce China market.The M brand from Whistable, U.K., a140-year-old local mid-size enterprise, has focus on hair care and skin care products over the years. Although knowing the huge market and consuming (spending) power in the Greater China Region, due to the limited resources and restrictions of its own, the M brand has not been successful entered into the Asian market. In2010, the British M brand met with the author ran company,"Taiwan Guang He International Limited"("Taiwan Guang He") and decided to be strategic partners. With the right marketing strategy, the sales of Taiwan, the island only, in the first month was a100,000bottles success. With reasonable logic, the60times more of population of the mainland China market, which was right at the economic developing period, the purchasing power of consumers is higher and more vigorous than the island Taiwan. If the M brand products can successfully launch in the mainland, the potential for development will be even more impressive. And mainland Chinese and Taiwanese are the same race and use the same language, if the women in Taiwan accept and welcome the skin care products, the mainland women should also be open and willing to accept. With this idea in hand, the two sides have a strong desire to enter the mainland market.Now facing a major problem, as vast as the Mainland China territory is, if there is no substantial amount of money and personal network resources, by relying only the past successful experience in Taiwan, it would be extremely difficult to succeed. However, the author, whom studied in Fudan EMBA program, related theories with hands-on experience in the past, was able to practice with theory analysis systematically. Therefore, in this particular study, the author utilized Porter’s five forces, to analyze the positions with self and other participants, to understand their own comparative advantage, and to adopt appropriate strategies. The author went further by using its own position (potential entrants), took Porter’s five forces further and modified it, positioning (potential entrants) itself in the middle, a new vision analysis. Subsequently, Hill (2005) theoretical framework to understand transnational strategy should be adopted by the "Mainland Guang He", followed by Keegan&Green (2010) in his book of "Cross Market dependency" concept, planning and enter the mainland market, and develop the blueprint.Sales channel marketing strategy, the use of a SWOT analysis as to the operating status of the brand, summed up their own positioning and competitive strengths, weaknesses, opportunities and potential threats in its industry. STP strategic theory to discuss the most suitable marketing position of the M brand, and finally with the4Ps marketing strategies as a basis to begin and market its products in the Chinese market. A sum assessed, targeting TV shopping channels with online shopping supplemented strategy. Host by TV home shopping channels broadcasting sector to each provinces, along with online shopping network giant-"Taobao" as major partners.The author hopes that through this study, it would summarize and organize the work of the individual, also hope to become the reference and ideas of becoming agents of foreign products into the domestic market in the future.