Love, Health & Beauty Store (LOHBs), a company that deals with health, fitness, and beauty products, has been in the market for a very short period. The company has grown fast and opened several stores in Korea, Hong Kong, Singapore and Seoul.
Some of the competitors who have been in the market include Tiens, Olive Young, and Pandora. Even with stiff competition, LOHBs have managed to acquire a substantial market share. This research paper focuses on the management of LOHBs and the successful strategy to acquiring a niche in a competitive market.
Table of Contents
Abstract
1.0 Introduction
2.0 Strategic goal
3.0 SWOT Analysis
3.1 Strengths
3.2 Weaknesses
3.3 Opportunity
3.4 Threat
4.0 LOHBs customer behavior
5.0 Profits
6.0 Market position in Korea
6.1 Market position in the World
7.0 Conclusion
8.0 References
Abstract
Love, Health &and Beauty Store (LOHBs) a company that deals with health, fitness, and beauty products has been in the market for a very short period. The company has grown fast to and opened several stores in Korea, Hong Kong, Singapore, and Seoul. Some of the competitors who have been in the market include; Tiens, Olive Young, and Pandora. Even with stiff competition, LOHBs have managed to acquire a substantial market share. This research paper focuses on the management of LOHBs and the successful strategy to acquiring a niche in a competitive market.
1.0 Introduction
Love, Health & Beauty Store (LOHBs) is a venture that distributes health and beauty brands. The newly formed venture was established in Korea in November 2015. The LOHBs stores stocks products of mid-range value. In LOHBs store one can find amazing niche brands. The company has a continued success in its trade and is currently spreading to other locations and cities. As a venture that deals with health and beauty products LOHBs is fighting for a market space with other well established companies like Olive young and SSG Market. LOHB has placed its preferences on providing its clientele with a wide variety of products giving its clients a wide range of reasonable shopping choices. The company offers both beauty products and a wide range of vitamins, health, fitness, self-protection, travel, among numerous other to enable one stop shop experience. The mottos of the company states that true beauty comes from good health and fitness and differentiates itself as a dynamic brand in the market.
2.0 Strategic goal
In strategic planning every step to the process is important, nonetheless, developing corporate goals, objectives, and business goals aids in making the plan for development (Czinkota & Ronkainen, 2010). The marketing strategy for LOHBs has been to create and dominate the distribution of its products and create a brad in its department store. This strategy has successful started off. According to Ginty, Vaccarello and Leake (2012), there are numerous issues that have been raised in the manner by which the company has focus is development strategy. While it competitors have created a strong niche with a specific type of commodity, LOHBs is engaged in a variety of commodities. Any customer who needs to by cosmetics or any other kind of a beauty product would prefer visiting a shop where only beauty products are sold. Specializing in one type of commodity makes customer confidence on the availability of what they are looking for in the shop. Even with the multiplicity of good in the self, it will be had to create a spectacular brand that the company will solely associate itself with.
3.0 SWOT Analysis
LOHBs in involved in a competitive market where other more grounded companies have established themselves. With a great diversity and in a dynamic industry the company has formulated an aggressive approach to maintaining a competitive edge. This section analysis the SWOT analysis for LOHBs for the short time it has been in the market.
3.1 Strengths
LOHBs places itself in a market that has not been overcrowded by similar business. Its innovative approach to online sales and diversification has made the company to growth rapidly and develop a clientele base in Korea, Hong Kong, among other places. The issue of diversification with an aim of building a one stop shop for everyone who wants to buy beauty, fitness, and health products have helped to capture those customers who like make their purchases from one spot. The company has established itself as fashionable and fair to everybody in terms of the cost of products. The company targets the middle class and the youth, as such, it has stock affordable item to enable fast moving stock. Deployment of sales representatives and establishment of online sales has boosted the sale in the company. The main aim of the online marketing was to reach people from various region and deliver them good and a small cost and as a sales service.
3.2 Weaknesses
There are several places where LOHBs needs to improve in order to boosts its developmental strategy. Firstly, though the company has endeavored to brand its self and create loyalty among some customers, it still needs a lot of advertisements to measure up with some of its competitors. The company seem to be selling products that only favor some regions. Diversification to reach people outside Korea, Hong Kong, and Singapore would help in improving the company’s sales.
3.3 Opportunity
As a new establishment which has grown too fast and established itself in the market, LOHBs has great opportunity to grow to a reputable institution with a wide range of clients. Making a trademark out of its brand has help several who have interacted with the company to return for other services. The biggest opportunity that the company hold is having chosen a variety of interrelated products to sell and choosing the mid-class as the target market (Scott, 2007). Fair pricing has seen the company attract people who were previously dependent of goods from other establishment. Additionally, the company can extend it market to more area in the Asia and Europe because it has built some reputation in those area. It unique products have been widely accepted across many regions.
3.4 Threat
The major obstacle faced by LOHBs include competition from well established companies. As a new company, LOHBs must face giants in the trade, competing with Olive Young among other branded company will cost the company a lot in terms of advertisements and marketing planning. The already established competitors are leading the market with numerous branches such that anywhere LOHBs wants to open a branch its competitors have already established themselves in those areas.
4.0 LOHBs customer behavior
LOHBs has acquired brand love from many of its customer due to its emphasis on beauty and fitness in its sales. The approach from the brand to providing products that boost interior and exterior health, and beauty has been appreciated by its clientele. The company also provides products from outside Korea. These imports has boosted the customer reception and made the company to have a market niche in a place previously dominated by Olive Young products. Its fair prices are all inclusive and majority of the people who want to access the products get them at affordable prices. It is because of the price fairness that the reception of LOHBs products have been so positive among the users.
5.0 Profits
The LOHBs Company has been in the market for just one years and have acquired a big clientele base. This is a positive mark to a profit making company. What makes the company to grow so fast and increase its revenue it the provision of a wide range of commodities and a reasonable price. The company has enjoyed steady growth and expanded to other parts of the world due to its attractive branding and increase in profits. Through not much can be analyses before the annual statement is out, the quarterly statement has a mark of positive growth and increase in sales over the region. The founders of the company looks to increase revenue by opening more store in different regions the diversification of store look forward to getting more people into using LOHBs products.
6.0 Market position in Korea
Amid competition with other investor in its origin country LOHBs has established its brand due to its all-round supply of products. The people in the region have upheld the products which range from fitness products, health, and beauty products. The brand has acquired a cult response and obtain brand love from its initial customers due to it consistency. LOHBs provides an estimated 8000 variety of products from 600 brands. All the brands provided are categorized into food, lifestyle, health, and beauty products. They reflect the trend to emphasis on fitness and beauty.
6.1 Market position in the World
The company has its eye open for other markets in Singapore, Hong Kong, and parts of China (Genesis Group, 2016). These are regions where the companies have started to venture successful. With a positive trend in market, LOHBs’ projections to Europe among other regions will help to improve its brand and increase its sales. The fast growing company has been a success in its initial store and offered solution to customers who want a variety of products that were not readily available in the region. The targeted introduction to online marketing is an ambitious move that seeks to increase sales and offer door step services to customers who want to get their products at home. The initiative comes with opening of many physical stores where these products can be accessed regionally.
7.0 Conclusion
In conclusion, LOHBs has rapidly grown in Korea and gained stability in a market that has previously been dominated by other companies. Pandora of Seoul, Tiens and Olive Young has been in the market for a long time and have established their loyalty in the region. Nonetheless, this has not stopped the new entrant from settling in the dynamic market. Some of the advantages LOHBs has had over the competitor is provision of a variety of products. While Tiens specializes with health based products, Olive is more on beauty and fitness products. This has given LOHBs an opportunity to grow since it has a combination of the Tiens and Olive young products. The company expansion strategy also has made it easier for brand to be recognized quickly in the region.
8.0 References
Czinkota, M. R., & Ronkainen, I. A. (2010). International marketing. Mason, OH: South-Western Cengage Learning.
Genesis Group. (2016). Lohbs | genesis branding. Retrieved from http://genesisgroup.co.kr/branding/?cat=96
Ginty, M., Vaccarello, L., & Leake, W. (2012). Complete B2B online marketing. Hoboken, NJ: J. Wiley & Sons.
Retail notes from Hong Kong: Cosmoprof Asia 2015 | TRENDS. TRAVELS. AND BERLIN. (2015). Retrieved from https://trend-traveller.com/2015/11/21/retail-notes-from-hong-kong-show-report-cosmoprof-asia-2015/
Scott, D. M. (2007). The new rules of marketing and PR: How to use news releases, blogs, podcasting, viral marketing, & online media to reach buyers directly. Hoboken, NJ: John Wiley & Sons.
- Citar trabajo
- Jiim Waa (Autor), 2016, Marketing at the Love, Health and Beauty Store LOHBs, Múnich, GRIN Verlag, https://www.grin.com/document/346619
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