Skii

Repositioning map

High price – Specialist: SK-II

High price – Universalist: Estee Lauder, Lancome

Low price – Specialist: Dr.G

Low price – Universalist: the Body shop, Clinique

Implications:

1. SK-II’s current positioning is a specialist and high price brand, this gives it the advantage of expertise but is not profitable or expandable compared to other global brands like Estee Lauder and Lancome.

2. SK-II has got loyal customers because it specializes in skin care products. It should focus on customer relation management (CRM) and provide service and products according to each customer’s status.

3. Since SK-II generally focuses mid-age women, it would be an opportunity for it to expand their market to young age females.

4. SK-II should maintain the market share by doing what it is good at, like consulting and provide high quality products. It should not aim to compete for a higher position in the ‘High price and Universalist group’ because big companies own much more market share.

Recommendation

1. Broadening the market: SK-II at the time is used mostly mid-age women, it can try to promote the products to young females by advertising and revamping its outlets to favor young generation.

2. Applying database (CRM): SK-II can try to create profiles for each customer who purchases products of SK-II and use the profiles to create convenience for customers and maintain loyalty for company itself.

3. Developing new systems and processes: New system like consultation of skin and beauty SPA can attract plenty of new customers. SK-II can provide lectures on skin caring for customers who are interested; give daily caring tips on product packages and bags.

Porter’s generic strategies

SK-II is recommended to follow some of the Porter’s generic strategies. The company can be cost effective in some situations. Currently, it pursues focused differentiation strategies, but it can be integrated strategies because it has unique competitive advantages and...