Scribd
Upload
50 views

Shiseido Presentation

Shiseido, the world's oldest cosmetics company, faces stagnating sales and must modernize its business strategy to adapt to changing consumer preferences while promising investors higher growth. The company aims for an annual sales growth of 8% by 2020, increased R&D investment, and a strategic focus on global markets through a revamped brand portfolio and digital presence. Recommendations include enhancing marketing efforts towards younger demographics, optimizing investment decisions, and integrating digital resources to improve competitiveness.

Uploaded by

anh le
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
50 views

Shiseido Presentation

Shiseido, the world's oldest cosmetics company, faces stagnating sales and must modernize its business strategy to adapt to changing consumer preferences while promising investors higher growth. The company aims for an annual sales growth of 8% by 2020, increased R&D investment, and a strategic focus on global markets through a revamped brand portfolio and digital presence. Recommendations include enhancing marketing efforts towards younger demographics, optimizing investment decisions, and integrating digital resources to improve competitiveness.

Uploaded by

anh le
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

Case study of

Bianca Ysabel T. Lipana - 2391076


Kate McGuire - 2391093
Le Minh Anh - 2391079
Stacy Bertrand - 2391108
Manar Alkhtib - 2391155
COMPANY’S PROFILE
• World’s oldest cosmetics company
• Ranked 5th in Japan & 32nd in Asia
• Western pharmaceutical technology & Eastern sensibilities
• Japan and China are Shiseido’s 2 major market
• 45,000 employees & 53% of leaders are women
• Owning 42 brands across 5 categories
• Prestige brands
• Cosmetic brands
• Fragrances
• Personal care brands
• Professional brands
THE FIVE PILLARS

Japan Aesthetics

Technology & Science

Art & Design

Omotenashi

Human centric
TOP COMPETITORS
PROBLEM STATEMENT
Amid stagnating sales, Shiseido had failed to modernize and
keep up with changing consumer preferences, however they
promised investors higher growth and profits.

Shiseido now has to continue to adapt their business strategy


to take advantage of this momentum in order to ensure
longevity and growth.
CASE ANALYSIS
SHISEIDO’S PERFORMANCE

• 1 trillion yen in net sales (2017)


• Transitioned to a consumer-oriented approach for a broader global

market
• Ranked last in Digital IQ among 106 beauty brands (2015)
• Aiming to expand beyond East and Southeast Asia
• Recognizes the need for a robust online presence and a two-pronged

strategy to align with and accomplish global goals.


SHISEIDO’S STRATEGY
Vision 2020 - update to strategic plan

 Promise:

• Deliver sales growth of 8% per year (annual sales of ¥1.2 trillion by 2020)
• Maintaining an operating margin of over 10% (highly ambitious)
Increased investment in Research and Development

• Committed to increasing R&D expenditures from 1.8% to 3.0% by 2020

• Included funding a new ¥30-¥40 billion innovation center which was due to
open in 2018
SHISEIDO’S STRATEGY (cont.)

New brand portfolio strategy

• Shiseido's range of 42 different brands


 Harder to allocate capital effectively

compared to competitors
 They have adopted a new strategy that

allows them to differentially invest capital


across brands
SHISEIDO’S STRATEGY (cont.)

Expanding into global markets


• Shiseido has expanded into global markets through 4 centres of excellence
(COEs)
 Allows each international base to focus on specific products:

the centre for makeup and digital marketing


excellence in skincare (including reintroduction Bareminerals, Laura Mercier & AUPRES)
excel in fragrances
REINVESTING IN SHISEIDO’S PORTFOLIO OF
BRANDS

o North American
chemical-free o Specializes in upscale
o High-end beauty o Aims to establish a
cosmetics brand skincare & makeup for
brand known for global presence
the Chinese market
o high-quality makeup beyond its success
A significant market
& skincare products o in East Asia
for BareMinerals due Shifted from physical
to consumer o stores to online o
Aims to provide a Utilizes multinational
emphasis on platforms (e.g. Tmall,
more natural look, company resources
sustainability Taobao,…) resulted in
aligning with the and leverages a
boosted profits
o preferences of strong reputation
Difficulties in
makeup users o
balancing Pressure to enhance o Longevity hinges on
competitive prices o competitiveness, esp.
Potential threat from understanding and
with the potentially in response to trends
changing beauty adapting to diverse
higher costs of set by competitors
trends preferences globally
environmentally like L'Oreal
friendly processes
NEW MATRIXED ORGANIZATIONAL
STRUCTURE
• Shiseido revamped its structure to a flat matrix, reducing management

layers and broadening control.

Advantages Disadvantages
• Reduced costs • Fewer chances for
• More responsiveness to advancement.
customers • Overworked managers.
• Accountability • Loss of control.
• Faster decision making • Less management
• More employee expertise.
empowerment
SWOT ANALYSIS

Strengths Weaknesses
• Large global market share • Bloated brand portfolio
• Recently increased R & D • Still behind competitors when
capabilities marketing to new generations
• Strong growth in recent years • Underexposed in the international
market

Opportunities Threats
• Weak Yen  growth opportunities in • Weak Yen  possible downturn in
international markets. established domestic market.
• Increasing customer utilisation of • Underdeveloped online brand
the digital marketplace for identity.
purchasing beauty products.
PESTLE ANALYSIS

ECONOMIC SOCIOLOGICAL TECHOLOGICAL

• Factors such as changes in:


o Global exchange • Factors such as: • Factors such as:
rates o Cultural values o Technological
o Inflation o Diverse lifestyles changes and;
o Economic recessions o Social classes o Rise in e-commerce
o Psychographics and social media
Influence consumers'
purchasing capabilities Trends and changes in these Can leverage competitors
 may affect Shiseido’s factors can structurally instead of Shiseido if they
profitability locally and change Shiseido’s standing don’t adapt to these
internationally
EXAMPLE: Evident increase in EXAMPLE: Miss Shiseidos,
EXAMPLE: Yen’s current the middle class worldwide Sheseido’s beauty consultants
decline
SUGGESTIONS
Focusing on research and development

• Shiseido need to be able to invest in high-end biotechnology and

sustainability to fit into the global market.


• Suggestions on which areas to invest in are :
o Biotechnology
o Clean beauty
o Improved active ingredients (e.g. anti-ageing ingredients)
o Sustainability and eco-friendly packaging
o Organic and local ingredients
o Investment in adopting relationships with scientists and dermatologists
o Investment in AI technology for qualitative and quantitative research to adopt a customer-centric
approach (e.g. online questionnaires)
SUGGESTIONS
Marketing
• The brand must attempt to appeal to the younger demographic

 via social media and e-commerce platforms


• Suggestions to improve marketing:

o influencers and influencer events to promote the products

o online marketing ads especially on social media (TikTok, Instagram,…)

o improving and creating an authentic brand identity

o investing in customer incentives and online presence


SUGGESTIONS
Optimizing investment decision
• Invest in brands with high growth potential & large market share
o Middle/ high-end brands

• Focus on bringing the brand globally

Integrating digital & human resources


• Expand online sales & e-commerce platforms

• Integrate digital-human resources


o Use technology to support human-assisted selling

o Regular training to enhance employees’ digital skills


THANK YOU!

You might also like