Case Analysis

Shiseido: Intent on Being Number One

Course: MKT 301

Section: 2
Fall 09

Course Instructor: Suntu Kumar Ghosh

Submitted by:

Summary:
Shiseido is one of the Japans largest cosmetics manufacturer, they want to increase their market
share in U.S. where their current market share is only 1.3%. But to achieve that goal they have to
change their brand name because the current name Shiseido is unpronounceable and hard to
remember for Americans. Shiseido has a long history in Japan, they was able to create a network
of 25000 Japanese retailer by a deal that Shiseido will repurchase any unsold product. But in
U.S. they are facing difficulties in creating their image. To back their corporate slogan The
Science of Beauty and Well-being they focused on scientific approach by establishing
MGH/Harvard Cutaneous Biology research center and purchased a R&D facility in Yokohama.
That scientific focus transformed their packaging; promotional inserts and sales pitch which
made them different from western cosmetic manufacturers. In their Bio-performance Advanced
Super Revitalizer product they quoted that this product features Bio EPO and Bio-Hyaluronic
Acid two ingredients that will act as a protection against skin aging. In some cases Shiseido
counter Skin care consultants photograph the customer skin and show them how it can improve
their skin by using Shiseido products. Mrs. Nagashima of Shiseido has a plan of eliminating the
offering of free samples, besides that they will go for personal selling effort. Moreover Shiseido
emphasizes on customer responsiveness through its website based on that they improve their
products. Their negative thing is that all other manufacture is promoting age defying and young
looking product while they are boasting about growing old with style and sophistication. In
addition to that Shiseido lacks a perfume brand which could bridge them to male cosmetics.
Without having a perfume it will hard for Shiseido to capture American market because perfume
plays a great role here.

1. How do consumers cultural, Social, Personal and Psychological characteristics

affect their cosmetics shopping behavior?

Ans: Cultural, Social, Personal, Psychological these four types of characteristics affect one
consumer shopping behavior, it also goes with cosmetics shopping behavior.
Cultural Factors:
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class
When a woman goes to the market to buy cosmetics and find new cosmetics at first she will
think does it comply with her beliefs, values & attitudes, whether this goes with her culture or
not. Then she will think about her Age whether this cosmetics will match with her age, her
religious background is there any ingredient that is prohibited in her religion. Like some
company uses carmine in their dark lipsticks which is obtained from some scale insects and it is
prohibited in Islam. Besides that some manufacturers use carbamide in their lipstick,

mouthwashes, deodorants, which are made out of pigs urine. Social class is also a factor,
consumer will think about her class she represents and according to the class how it will be
accepted in her class and also her status.
Social Factors:
A consumers behavior is influenced by social factors, such as the (i) Groups (ii) Family (iii)
Roles and status
Then comes the Social factors where Reference groups will influence her, direct & normative
reference group means with which she has blood relations will influence more than indirect &
comparative reference group. Her Family will affect more than her household. In the matter of
roles she will take her decision as users perspective.
Personal Factors:
It includes
i) Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality
and self concept.

Personal factors will affect her first with her age and life-cycle; she will think does this cosmetic
match with her occupation and working environment. Buying is also shaped by the stage of the
family life cycle. Her economic condition will come into consideration when she will compare
the price of the cosmetics, deciding whether it is reasonable or not. Does these cosmetics match
with her lifestyle, is these cosmetics go by with her personality, is this going to reflect her
personality to the others.
Psychological Factors:
It includes these Factors.
i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes
Pre-conceived Perception toward a certain cosmetic can be a factor. Or learning can be a factor
where consumer Changes their buying behavior through experience arise for using certain
products. And belief is a descriptive thought that a person holds about something or tendencies
towards an object or idea, like if certain consumer is an activist of PETA (People For The Ethical
Treatment of Animals) she will choose that brand who does not support animal testing in
cosmetics.

2. Who is involved in a consumers decision to purchase cosmetics and what role does
each participant play?
Ans. Mainly, the buyer is involved in a consumers decision to purchase cosmetics; because they
are the person who makes the actual purchase.
There are five types of buying roles in the market. Such as a) Initiator
b) Influencer
c) Decider
d) Buyer

e) User
a) Initiator: - The person who first suggests the idea of buying the cosmetics. Shiseido
follow the scientific approach for suggesting customers to Skin Aging problem. After years of
intensive research in all aspects of skin science, Shiseido laboratories has achieved an
extraordinary advance in protection against the visible signs of aging.
b) Influencer: - Influencer is the person who is directly or indirectly influences the buying
decision of the particular brand of cosmetics. Reference group can play a vital role as an
influencer. In the case, influencer is those women who are familiar with the Shiseidos
customers approach where the skin care consults first determine the customers skin type in
some location by photographing and also to see the customer how age has robbed their skin of
its softness. After using Shiseidos products for several months, the customer returns to have her
skin re-photographed, so that she can see the improvement.
c) Decider: - Decider is the person who finally set up their mind to purchase that particular
brand cosmetic. Shiseido believes that beauty is more than skin-deep. So in its promotion it gives
a positive message to the customers that Shiseido creates products that make women feel
beautiful inside and look beautiful outside which really helps to set up customers mind to
Purchase Shiseidos products.

d) Buyer: - The person who makes the actual purchase. Generally they are the consumer
who used to buy that particular brand of cosmetics for intention to use. The buyers who are welleducated always seek information not only about the product but also about the Principles of the
companies from which they make their buying decision.
e) User: - They finally use the particular brand cosmetic. If the users are satisfied with the
particular brand cosmetics performance, then they will become the ultimate user of that
particular brand cosmetics for a long time. They also work as an influencer group of that
particular brand cosmetic. But if the users are not satisfied with the particular brand cosmetics
performance, then they will switch to the other brands cosmetic and also discourage others to use
or buy that particular brand cosmetic.

3. What types of buying decision behavior are involved in purchasing cosmetics?

Variety seeking behavior is involved in purchasing cosmetics; because there are significant
differences between brands in the market and the involvement of cosmetics is low that means
the price is low. Consumers in particularly female choose and buy cosmetics without any
evaluation of the brand and evaluating that brand as well as its cosmetics performance
during using period.
Changing and creating more variety of cosmetics with its standard quality is the way to
sustain in the market.

4. Describe the buying decision process for cosmetics.

Ans: One woman is going to join in an organization and the organization is a renowned
MNC. Before joining the organization she thought of being more attractive & good
looking as this is going to be her first job in a renowned MNC. So she thought of buying
cosmetics for make her looks more attractive, here the first step in buying decision
process is she understands her need, need for cosmetics. Her internal stimuli here are to
look attractive and the external stimuli are to present her to others. After this she thought
of buying cosmetics but there are lots of brands in the market and she gets confused
because of different view from different people, her family told her about Avon, some of
her friends told her about LOreal so she become confused and in this situation she
decide to search for information and then she started collecting information from
different sources. The sources are family, friends, relatives, she also search information in
internet, not only that she also ask the people who have already used the product and
have the experience. In the next step after collecting information she has to decide
between alternatives, and she finds out that other than Avon & LOreal there are also
other brands in the market then she found that Shiseido is another brand which can also
fulfill her demand, they have the skincare product & lipstick is very effective and they
have good quality. Marketers also recommend that this brand is also competing with the
other brands. Then she observes that there is not much difference between the prices of
this cosmetics brand so she decides to buy Shiseido. Then after evaluating all the brands
she decides to buy Shiseido and purchase the Shiseido brands skincare & Lipstick. After
purchasing the Shiseido brand she found out that there slogan is Products that make
women feel beautiful inside and look beautiful outside. After using their skincare and
lipstick she was very satisfied because her skin became very smooth, she doesnt find any
wrinkles after using the product and there lipstick is also very lasting.

5. What marketing recommendations would you make to Shiseido as it seeks to

increase its sales in the U.S. market?
Ans: Shiseido Japans largest cosmetics manufacturer wants to increase its sales in the U.S.
market and for increasing their sales they have to be careful & technical. The first thing they
have to consider is there name because there name is according to Japans culture and It is also
difficult to pronounce so they should consider a new name which is easy to pronounce &
remember, and also creates interest among people. Cultural difference is also a factor they should
eliminate the cultural differences for increasing the sales in U.S. market. For increasing sales
they also have to study the market what they want, so they have to made research from which
they can find out that what is the expectation of customers from them & what can they give more
to them which the cosmetics brand is not offering them. They can also target there group of
customers, if they want to target Upper class, then they have to focus more on information,
because the upper class customer seeks for more information, but as they want to increase their
sales in the U.S market they have to target all the groups in U.S. As they have just introduced
their product so according to the U.S culture they give away free samples, but they can follow
some different strategy like they can use the promotion style of Air promoting. As they want to
increase their sales in U.S market they have to increase their distribution centre and
manufacturers from which there product will spread all over the U.S. As they are new in the U.S
market and they are not familiar with the U.S market so they can think of merge with a renowned
U.S cosmetics brand, so that they will get the necessary promotion which they need & they will
get that from them. They can also increase their sales by targeting the minority group, where they
can produce the baby product like LOreal they have also launched the baby product by this they
can capture more of the market as the women purchase more cosmetics so they will more
attracted towards it as they can also buy products for their kids also. They can also increase their
sales by giving the name of the ingredients they are using as in the U.S there are lots of Animal
activist group and they are against the use of animal ingredients in cosmetics, by this Shiseido
can differentiate their product from others & also they can make it clear that they are not using
any toxic, petroleum, sls in their product & its safe to use Shiseido product. According to a
survey in U.S mainly younger girls use cosmetics & Shiseido is talking about getting older so

they can target both younger & older people through different slogans. Besides that they should
manufacture perfume, it will hard for Shiseido to capture American market because perfume
plays a great role here. Moreover it will help them to capture men cosmetics market.