Business summary for HairCare Products in South Korea
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Scenario
Project Manager, Megan Smith, has asked your group to research and report on the opportunity to expand a product offering in a foreign country. Specifically, your group is tasked with researching and reporting on one of “HairCare Products” economy products, a shampoo called “Everyday Essence”.
Pressure has come from the CEO and Board of Directors of “HairCare Products” to increase the availability of a superior product to foreign countries at an economy price.
Your group is expected to assess the extent that “Everyday Essence” can meet the demand necessary for profitability in a chosen country or region over the next year and provide sound rationale behind your group’s final decision. To do this your group is expected to consider the consumer and business dynamics in the marketplace (competition, segments, social customs, class structures, politics, religion, family life, etc.) company limitations (business operations), and the factors influencing potential profit (i.e. shipping, distribution, taxes, etc.). Essentially, “HairCare Products” is open to new ideas, if they are backed up with sound rationale so feel free to think outside-the-box. All the information your group will need (excluding research and business report/presentation formatting) is provided on the following pages.
Company Information – HairCare Products
HairCare Products is a large sized manufacturer of a range of personal hygiene products, best known in the United States for shampoos, soaps, shower gels and men’ s shaving accessories. The launch of “ Everyday Essence” 30 years ago as HairCare Products first entrant into the shampoo market has solidified the organization’s footing with local, regional and eventual national success by achieving and maintaining the spot of #1 selling shampoo by volume and sales for the past 20 years. HairCare Products expanded their offerings to include over 20 different shampoos in every segment of the shampoo market as well as a range of other personal hygiene products.
The organizational culture of HairCare Products places a high value on maintaining tight financial control, as many members of the Board of Directors were first trained as accountants. Profits from HairCare Products best known brands are currently stagnating as competition in the United States has expanded dramatically over the past five years with both store brand and niche brands eating away at many loyal consumer segments for a variety of reasons. The opportunity to maintain growth has been identified in foreign countries by possibly bringing a #1 U.S. product to consumers in these uncharted countries.
Everyday Essence’s success to date has in part been due to the product’s image of having good quality ingredients at a price point that consumers find reasonable. Advertising has taken a factual approach to promoting the ‘ingredients’ compared to major competitors along with ‘price’ versus those competitors. Past marketing slogans included: “Everyday Essence – An Everyday Shampoo with ingredients to manage Everyday Hair at an Everyday Price” and “Everyday Essence – An Everyday Shampoo for those who want a superior product at an Everyday Price”. There has been little change in packaging and advertising over the past 30 years since the product’s launch.
Group Project Expectations
• Groups will select a city, region, or country (South Korea is my country)to expand Everyday Essence
• Groups will develop an informational and persuasive formal business report and presentation for the CEO and Board of Directors of HairCare Products
• Groups must decide whether or not their goal is to persuade the CEO and Board of Directors of HairCare Products to expand Everyday Essence into a foreign entity based upon their research findings.
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o Remember the CEO and Board of Directors of HairCare Products has requested this report on the potential expansion of Everyday Essence into a foreign city, region, or country. They are placing the responsibility on your group to determine through sound research and rationale a recommendation for their consideration. They are not looking for a group that just assumes that they want expansion and forms the report and presentation to support that goal. They need honest feedback and if expansion is not warranted that is okay, but provide the rationale and research supporting why.
• Your group is an internal group (not an outside consultant) that has been formed by the Project Manager, Megan Smith for this assignment.
• Your group is not centrally located, so each member is to be assigned a topic area to research using some of the questions provided in a subsequent page as a guide.
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o The Body of the Business Report (from Executive Summary to Conclusions and Recommendations) is expected to be at least 6 to 8 pages
o Additional Pages include:
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1 page Cover
1 page Memorandum
1 page Contents
1-3 pages References (use APA style)
6 pages (single spaced) 6 Sections to write about 1 page per section single spaced
South Korea is my country.
• Existing U.S. and Popular Brand Competition in the market
• Potential expansion interest or speculation for competitor products in the market
• Consumer desirables for existing markets: Low, Mid-Range, and High End products
• Consumer segments that Everyday Essence could capture
• Dynamics of consumer segments: Class Structure, Social Customs, Religion, Family Life, etc.
• Technology level and access of City, Region, or Country
