Marketing OSIM Company Essay Example

Marketing OSIM Company Essay 1. Introduction The paper emphases on the nature of the marketing plan as whole. The author is doing the research on the of the international branded and premium that is OSIM Company product on the uDivine Application massage chair. In these assignments will share on OSIM marketing plan which involved analysis on competitor, developed understand on marketing and sales strategy. Understand on the main key player which has contributed a lot to OSIM Company as whole. 2. 0 Company Background Corporate Profile, Mission, Vision and Goals of OSIM OSIM International Ltd is well known as an global impetus leader in healthy and C. The founded of OSIM Company is Ron Sim in year 1980 in Singapore (OSIM Ltd. , 2010). Previously OSIM was under the name of R Sim Trading, an electrical and household appliance company (OSIM Ltd. , 2010). In year 1980 with a small start-up capital, the company have engages with promotion of household products such as knife sharpeners, knife and mobile clothes drying rods. However in year 1989, the company listed with the name called â€Å"Health Check and Care†, and then later on shifted their main focus to healthy lifestyle products. We will write a custom essay sample on Marketing OSIM Company specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Marketing OSIM Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Marketing OSIM Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Since then this had created great development for the company and manages to operate outlets in Indonesia and Malaysia (AsiaPulse News, 2002). 2. 1 Vision and Mission The company’s vision was to become the global leader in healthy life style products whereas their mission was to challenge the spirit of their clients. The goal of the company was to bring the healthy lifestyle to their consumers (Business Times-Malaysia, 2003 and New Straits Times, 2003). Inspiring Life† is the motto of the OSIM Company. Vision: The global leader in healthy lifestyle products Mission: Bringing healthy lifestyle to you. 2. 2 Company Locations and Facilities OSIM Company has 1196 Outlets in more than 222 cities across 30 countries in Asia, Oceania, Africa, the Middle East, Europe and North America. The Company operation is dividing into two segments that are distribution and retail (refer to appendix 1). The OSIM company headquarters is in Singapore. 1. Products and Services OSIM product is the most trusted brand. The company is known as International Safety Standards which are abide with worldwide health and safety regulations. All products are designed with safety and appropriate method to health. Furthermore, the companies have good quality performance because their entire product has been approved from clinic research, medical certifications and scientific studies. The health-care product have careful checked and studies scientifically by expertise. They have been awarded certification and recognition from independents bodies in terms of innovation and technology wise. OSIM Company receive award winning design from Japan, Europe and Asia. OSIM product was awarded the Largest Health Check and Care Equipment Retail Chain by the Malaysian Book of Records and Asia Pacific Honesty Enterprise Keris Award 2002. OSIM is known as ASIA No 1 Brand in healthy lifestyle equipment by a prestigious International Survey for international market research. Besides, OSIM has also been rated by AC Nielsen survey in 2005 as the Number One brand in seven attributes (High Quality Products, Advance Technology, Premium Brand, Innovative Design Features, Trustworthy Brand, Good Customer Service and Good Store Ambience). 3. 1 Products Description OSIM uDivine Application massage chair is the finest worlds best selling massage chair and phone innovates that lift up leveraging of power digital technology of smart phones and mobile technology. The uDivine application markets a benchmark of innovation and transformed it to an intelligent, multi-sensory enjoyment for the body, mind and soul. If the consumer purchased uDivine App massage chair, there is a personal massage advisor that renders its smart recommendations and useful information on optimising the uDivine App massage experience at home. It wills functional 24hours/7 days. The massages chair featured about 13 professionally crafted massage programs by Japanese Expert, Mr. Sato Tsuyoshi. The OSIM uDivine App massage chair deliver performance and quality in full-body massage, redefines an unrivalled Human-3D massage experience in utmost way and well-being. It also offers a suite of the most invigorating massage programs and manual massage techniques that are thoughtfully designed for a multi-sensory full-body massage experience with consumer favourite audio, audio and visual entertainment. (Refer to appendix 2) 3. 3 Supply and Demand Details Base on the quarter ended results for 30/9/2012 (Refer to appendix 3). OSIM Company is making sales of S$142 million compare to last year only at S$124 million. The company is making profitability growth in Quarter 3 2012. The companies have achieved profitability for 15 consecutive quarters. Quarter 3 revenue is S$142 million. The uDivine Application and various other products perform well. Profit before tax reached S$26 million +23% this is because increase in sales and better productivity gained. (Refer to appendix 3) 3. 4 Technology Needs OSIM uDivine Application massage chair is Human-3D massage chair with an intelligent massage system that build in precisely, realistic and human contour based, delivering the most humanized, pleasurable and effective full body massage. Consumer able to felt relieve after the all process. Add on item such as airbags, kneading discs and automatic body detection which make, the OSIM uDivine application delivers the pleasures of the most humanized and effective full-body massage. Latest technology achieved is OSIM Company works with Apple iPod touch, iPhone and iPad in making the OSIM uDivine App massage chair a latest benchmark for massage chair innovation with transforming it to an intelligent, multi-sensory enjoyment for the body, mind and soul. 4. 0 Market Analysis 4. 1. 1 Target market segment strategy. OSIM Company used market analysis segment strategy to target its market entirely to earning profit. The company targeted demographic, psychographics and geographic segmentation. Demographic parts are divides into several groups based on occupation, income, gender and age. UDivine Application suitable to all individual ages above 10 years until 60 years old. Base on Singapore statistic data shown 70% high employment rate from ages 25 until 66 years old is working. The company is targeting on mid range of consumer income which mean the availability to purchase the product with full settlement or monthly installement packages. Psychographics able to classified as social class or lifestyles of current population. Furthermore people nowadays are busy with their career life and travelling which have not time to stay fit and healthy. The company is targeting geographic segmentation in international markets which their businesses are expanding around Asia region and globally. 4. 1. 2 Market Needs. Market needs in the early 21st century change a lot compare it the 90’s. We tend to see a lot of people are busy with their own daily life in career or searching for money. Everyone is busy which have potential tendency to bygone their health which is very important target. Base on Singapore Statistic study in the 2011 shown that high trend of cause break down (refer to appendix 4). This mean nowadays people seldom precaution about their health. Therefore OSIM have created uDivine Application with good technology installed in it to suit these generation consumers. People can stay healthy and fit at the same enjoy their life. 4. 1. 3 Market trends Base on Singapore Statistic shown that the population trend is increased in Singapore. This show more people means more money and market trend is shoot up in the positive trait. The lifestyles of Singaporean consumer are changed a lot compared to previous years back. More consumers are well educated and have better employment. (Refer to appendix)This shows purchasing power is increased. In Singapore, consumer tends purchase uDivine Application for health and lifestyle purpose. The consumer is able to purchased uDivine Application due to their purchasing power is increase which uDivine Application is reasonable and affordable to own one. 4. 1. 4 Market Growth. Singapore Economic Singapore is the 17th wealthiest country in the world in terms of GDP per capita (US$326. 80) and adds on with a high literacy rate of 95. 4%. The gross national income is (US$61692) compare to year 2010 is only (US$60009). The vibrant enterprise and ecosystem which made Singapore known and attracted more than 7,000 multinational corporations (MNC), many of which have established regional or international headquarters here in Singapore. Base on Singapore Statistic on economic review for year 2012 (refer to appendix 5) show that consumer price index a positive trend for health care product in Singapore about 6% weighted. Therefore OSIM businesses in Singapore fluctuate much better when their introduces uDivine Application to the market. Beside introduces the uDivine Application to the market it also create job opportunities for people whom this will generate cash flow to Singapore Economic. 4. 2 Industry Analysis 4. 2. 1 Industry Participants/Key Players In all main businesses like OSIM Company is also support from important key players teams in business such as customer, government, supplies, public, employee and shareholder. All of the six main key players is shown the entire process for a company to achieved its goals. Furthermore without them the company will be doom. It is just like a life phases for a company. Everyone of them makes OSIM Company as what today. The customer or consumer bought or purchased the product and satisfied with it will give a positive trait such as feedback, suggestion and opinion. The more product consumer purchased the company will generate more revenue. Government also will imposed taxation on the product to generate cash flow back to the country and provide safetly environment. Supplies will build up internal relationship with company due to business transaction is exits. The public will be aware of the latest update on products from the company in respective of healthy lifestyle, employee and shareholder will gain benefit n returns such as bonus, share, promotion and others. 4. 2. 2 Main Competitors/Competitive Analysis Two major competitors which have similar post competition to OSIM a are Ogawa World Berhad (OGAWA) and Gintell. OGAWA is well known as Malaysian health and wellness retail store which started in 1996 and successfully a leading player in health and wellness equipments in Malaysia. It also a committed brand which involved in a healthier lifestyle. Gintell started in 1996 and expanded its business network with more than 60 outlets in just 12 years. However Gintell is known as one of the leading healthcare chain stores in Malaysia. Both of the companies gave OSIM much competition in the health and wellness section and currently affect OSIM market shares seriously. Nevertheless, OSIM still have positive trait on its side due to more of OSIM outlets store have penetrated more markets compare to both Ogawa and Gintell. Gintell have make partnership with Panasonic in development (R) strengths and technology advance. This gives opportunities tor GINTELL to produce more quality healthcare products through its retail network. The cooperation between Panasonic and Gintell gives OSIM a tough competition. Ogawa is focus to synergistic products that generate revenues in terms of target market, retail habit and demographics. Both Gintell and Ogawa price and promotion are more a less the same. OSIM product range may be priced a little a higherdue to its mark up cost compare to its competitors. OSIM products are well known for its brand and have better quality assurance to its consumer. The consumers also have better customer satisfaction over the products itself. To conclude OSIM should continue to make progress and understand the advantage of its strength may indeed seek to turn competitor review threats into its own opportunities strengths. 5. 0 Marketing Strategy Marketing strategy can influence both the internal and external environments. Internal environmental factors are concern about marketing mix (4’P), performance analysis and strategic constraints. External environmental factors are concern about customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. The main key feature of marketing strategy is to keep marketing in line with a company mission statement. Marketing program 5. 1 PRODUCT OSIM Company sells consumer product which gives their consumer a healthy lifestyle product. Types of health product that they sell are as the following: back massagers, blood pressure monitor, massage chair, eye massagers, foot massagers, head massagers, slim belts, and pedometer and water purifiers. uDivine Application are specialty products that help to maintain good health and give satisfaction in return. The company makes a better decision base on product attributes in stages of development a new product. The first part penetrated the quality level of generate ideas which meet the objective of the company or not. Secondly, concept testing is important which OSIM company need to know wether there is a sufficient market for any new launch product. In product development stage an extensive primary market research is making to finalized the consumer reaction on product. Next step is analysing cost or revenues gained. Apparently on production cost they will set a reasonable price of product to be sold. Therefore they will consider developing a prototype as an example. The entire product features such as the design; materials, quality and safety need to be considering also. 5. 2 Pricing Strategy OSIM Company by its own is highly brand which sells healthcare product in the market. OSIM stands by its own image, name, safety and quality. The products pricing of the OSIM Company will have impact on the quantity sell and profit margin received per unit. First step to set pricing is needed to liaise with the objectives of pricing. Gained or earning profit is the main figure objective set. OSIM Company has three type strategies in setting the price of the uDivine Application. First OSIM used cost-plus pricing which is the total cost of producing each unit of product is calculated. Then, percentage profit is calculated by adding the unit cost to arrive at the selling price. Secondly, skimming pricing is given to products which are innovative and highly technology product such as uDivine Application. The strategies plans for these kinds of products usually set at the affordable high price because it needs high cost to make the product and furthermore it design to create an up-market trend. Thirdly, another kind of pricing strategy which OSIM Company applies is competition-oriented pricing. The competition oriented pricing is another strategy which makeup the price for a uDivine Application product by comparison view with the competitor product such as OGAWA. Apparently listing price, varieties of discount and allowance will be include when setting a price uDivine Application. 5. 3 Promotion Strategy Promotion is another action step in business to make consumers aware about the product. Through this promotion, company can attract consumers to purchase the product. The main objective of OSIM Company promotion is to increase sales and popularity of the company brand. Types of promotion involved are advertising, personal selling, and sales promotions. Furthermore, OSIM Company normally advertises its products through online, brochure and conducts types of road show events. Do online advertising is cheaper comparing to others method. Consumers can surf on to the website of the company to find more about the company and it is free. Apparently, the brochures are only given to visitors who have visited the outlets or to road shows. Furthermore, these minimum cost types of promotion are helping the company to lower down the expenses. However, OSIM Company always used top international artiste as a model or celebrities to promote its product such as the new product uDivine Application massage chair. OSIM Company use artiste Andy Lau as endorser and Lin Chi Ling as a model for the Worlds first little massage sofa. Furthermore, this will help OSIM Company to get the target audience by immediately as a fan of the celebrity. Apparently, they target aim for popularity. By advertise them in order to get popular in the world. OSIM Company also makes global sponsorship for types of sport event like badminton. Therefore it can help to raise the company name and well known in around the globe. 5. 4 Distribution Patterns (Place) OSIM Company has chosen an appropriate place to sell its products. However in business without a good place to launch or promote OSIM Company product will make harder to be successful in target market even though the product have are reasonable price. OSIM Company has two kinds of distribution patterns which are retailing concept and distribution concept. The retail segment is always engaged with outlets and counters operated by elected shopping malls and a good departmental stores which is the products are sold in terms of directly to end user consumers. OSIM Global Retail concept for an example no matter at Changi International Airport in Singapore, Harrods in London, Times Square in Hong Kong all of the OSIM Global Retail Concept platform will projects a singular image that is firstly welcoming, attractive and inspiring. The company believe that the consumer is experiencing a journey from the first stage of attraction towards the product, keen delightful to discovery of the products, f inally next move the final stage of a purchase. The distributions segmenting are engaged with products solely distributed by the Company with the franchisees in overseas markets. The company subsidiaries are OSIM (China) Co. , Ltd, Nutri Active Pte Ltd, Victoria House Pte Ltd and VHE China Limited, OSIM (HK) Company Limited, OSIM International Trading (Shanghai) Co. , Ltd, OSIM (M) Sdn Bhd, OSIM (Taiwan) Co. , Ltd, Nutrition Focus (USA) Inc, Global Active Limited (GAL). (Will add in the Appendix on the company location around the globe) 5. 5  Marketing Program and Sales Strategy OSIM Company always prepared ahead a program plan to launch a new product such as uDivine Application the massages chair. Their will do marketing program to introduces the product to consumer such as do roadshow on uDivine Application at shopping malls, health exhibition campaign, charity show and many more. OSIM Company also does sponsorships games or show to get near to the consumer preference such as the â€Å"Badminton World Federation Games† (BWF World Super series games) in 2010. Beside that, OSIM Company use personal selling approach method towards consumer purchased uDivine Application. In personal selling there are several steps in such as deal with prospecting, whether is qualifying, pre-approach step , approach method, presentation such as public relation, handling objections whether yes or no answer, closing stage but lastly is the follow up method. Among all method, the crucial step is the follow up after the sale which the company sale personnel will contact the consumer after quarterly year to check whether is consumer is pleased with the product which their have purchased. Sales program also can be organized during festive season like Chinese New Year, Hari Raya, and Christmas and also on special occasion such as Mother Day and Father Day. During sale programme the company will allocate certain product with a production price within a certain period. All of these plans will generate more profit back to the company 6. 0 Web Plan and Summary OSIM has its own registered website ‘‘www. osim. com to market their product on Internet to let or inform more people known about OSIM company and its products. It has types of sites which is corporate web site holds the company profile, management level, investor, company location but the marketing site is marketing web site is designed to engage consumers with direct purchase of the product. It is crucial for a company to have its own website especially launch new products, offering new services and reaching consumer. The digital era nowadays has leaded many people to use internet to surf and search information. Consumer can access or surf in any website with few seconds. Apparently setting up a website could be costly but it is offset by reaching a large volume consumers and providing necessary information. 6. 1 Website Marketing Strategy OSIM website marketing strategy such as make use of the popular Facebook as a tool to promote the products and provide brief information and latest happenings in regard to their road shows. Job recruitment advertisements are found their website and it will save the companys cost expense in advertising such as the newspaper. Consumers can sign up for mailing list to receive any special offers, promotions and well-being tips from OSIM. Another marketing strategy involved is E-commerce which has the ability of businesses to trade with the world via websites. The good potential about E-commerce is businesses are able to market and create awareness on the products in a larger group of audience which operates now open 24 hours every day. 6. 2 Development Requirements There is also an ample room for improvement for the website. Sometime it is nice to have better colour or live picture to attract the consumer comes to the website because colour and picture deliver more messages compare to words. Their should encourages some online contest or quiz for consumer who is able to answer all correct have the change to used OSIM products for a certain time to get the experiments feeling of using it. 7. 0 Conclusion However in performed this reasearch on marketing plan for a premium (Branded) product such as uDivine Application in OSIM Company. We understand how crucial to have marketing plan to run the business in future. Therefore proper marketing and sales strategy in business is crucial to achieve the company goals to generate profit.