This paper discusses the strategic marketing of Sa Sa International Holdings Limited, a leading beauty retail and service group in Asia by analyzing its competitive advantages, marketing strategies, industry environment, major challenges and followed by some problem solvers.
Sa Sa has four major competitive advantages. First, she can offer competitive prices for her long-term relationship with suppliers. Besides, excellent service with number of recognized winning awards accounts for another advantage. In addition, she has long-established network with 80 retail outlets in prime Asian countries and on-line presence. Also, she has well-established branding “beauty expert” in Hong Kong as well as in Mainland China. Among four of them, her relationship with suppliers and excellent service allow her to gain sustainable competitive advantage over major competitors.
Throughout Porter’s Five Forces analysis (Porter, 1980) and SWOT analysis, the industry is still attractive with moderate competitive environment. However, the increasing rental fee and operating cost in major market Hong Kong is a big challenge to Sa Sa. In addition, brand switching is another challenge for her whereas low operation efficiency imposes worries on the organization.
As for beauty industry in Sa Sa’s major market, Hong Kong is in the maturity stage in product life cycle, some of the current marketing strategies can synergize while others cannot. The width of her product mix is large but she should continue to build more exclusive brand and put efforts on add-valued services. In pricing, she manages to offer competitive prices with regular promotion offer. And, in promotion, she has TVC and thematic print advertising to support corporate image and two exclusive brands but promotion program to increase brand loyalty, like CRM is lacking currently. For the distribution, she is on the right track to have extensive distribution, like market expansion to China and Korea through