Vichy

* 2.0 Situation analysis

Vichy is a brand of dermo-cosmetics, which features under L'Oreal's Active Cosmetics Division. Dermo-cosmetics are hypo-allergenic, clinically tested products available principally in pharmacies and generally sold with pharmaceutical advice. Vichy is between luxury and mass marketed brands, a position reinforced by the sale of its products through its concept store, which separates Vichy products from the luxury brands found in department stores and the mass market skincare products more widely distributed. The year 1998 saw Vichy's introduction of its products to China's mainland, where it began by launching education-focused marketing, with explanations on why certain types of products should be used. Though still dominated by state-owned chains, China's pharmacy industry is developing quickly as more commercially driven operations emerge, with some able to establish themselves across provincial lines.

2.1 Market Summary

Vichy sun care products by now possesses good information about the China market and knows a great deal about the common attributes of the most prized customers, the young adult and teenagers. This information will be a leverage to better understanding that will be served, what specifics there need to be, and how Vichy can better communicate with them.

Target Market

Primary Target: Urban teenagers and young adult people

* They are working adult and university student between 18-30 years-old.

* Their monthly personal income is ¥4,000 up

* They are involved with outdoor activities more than 4 days per week

Secondary Target: Foreigner who work and study in Beijing

* They are working e adult professionals between 24-30 years-old.

* They have experience of using the products of Vichy.

* Their monthly personal income is ¥6,000 and up.

2.1.1. Market Demographics

Vichy sun care products typical potential customers will consist of the following...