Miessence Full Business Plan

Miessence Organics: A Marketing Plan in Japan

Wing Yu Wong University of Wollongong, Australia October 2009

1. Executive Summary Miessence is an Australian organic skin care and cosmetics company that primarily trades in Australia and New Zealand. Presently, the company is seeking a business opportunity abroad for business expansion. Japan is considered to be the best alternative compare with European countries – France, Spain and Italy. The decision of selecting Japan is based on its advanced technological facilities, constructive government supports on foreign business, large market size, positive

consumer preferences on organic products and strong purchasing power that resulted in a great business environment. The report is conducted in three main stages which are starting with an observation of Japanese market by employing macro and micro situation analysis method, and then followed by SWOT analysis to identify major limitations, advantages and overall company situation in Japan, which allows Miessence to recognize its strengthen components and further investigate particular issues. The final stage has recommended several marketing strategies in order to enter into the market and advertise the brand successfully. There are three major finding in the report. Firstly, most Japanese females sense the obligation to impress others in order to “survive” in the society which creates a strong demand of investing in appearances. Secondly,

Japanese men cosmetics and skin care market became one of the strongest in world while they are very energetic in being stylish and good looking so as to attract women. Lastly, significant numbers of Japanese consumers have realised the harmful effects from traditional cosmetics ingredients, which pushed them to look for more pure and natural cosmetics and skin care products. More findings will be explored in the report.

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2. Introduction

2.1 Miessence

background Miessence is the 100% Australian owned Skin Care Company that developed by the “Organic and Natural Enterprise group” (ONE group). It was found by Ms. Narelle Chenery and established in 2003. Most people should be able to remember its simple slogan “Organic skin care products so pure you could eat them!” The company uses above 95% of natural and chemical-free ingredients to produce the series of skin care, hair care, essential oils, perfumes, cosmetics and baby products. With this wide range of product availability, customers can possibly find everything they need for their bodies. Miessence sources the raw materials from organic farmers globally, and then develops and manufactures its unique organic products in the factory which is located in Queensland. The company aims to create positive brand name by refusing to use misleading advertisements, unethical business secrets and harmful ingredients. All these elements facilitate the truthful and trustful business culture and benefit in attracting customers who desire the products from honest and ordinary company. Miessence is trading in Australia and New Zealand, as well as online sales services. Currently, Miessence is seeking an opportunity to expand the business abroad. Japan is considered to be the best choice compare with countries in Europe (France, Italy and Spain will be mainly focused in the analysis). The reasons of selecting Japan are discussed in the following section.

2.2 Choice of Japan

Japan is one of the largest cosmetics markets in the world. The Japanese Ministry of Economy (2009) indicated that Japanese market value in cosmetics industry has reached AU$12.5 billion in 2006, and it is expected to expand constantly and reach 12% sales growth by 2010. In term of customer behaviours, Japanese tend to concern on both skin care and cosmetics, whereas European tend to more interest in cosmetics (Farquharson, 2009). This traditionally tendency has made the larger skin care and cosmetics segment in Japan. Besides, during the global economic crisis, Japanese government is willing to ease the imported cosmetics

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standards to attract foreign investments, while Europe countries especially Germany and France had resisted the larger trade surpluses rearrangement (Council on Foreign Relations, 2009). As a result, it will be less costly to enter Japanese market with its larger potential customers and fewer legal restrictions. The key motivations of developing business in Japan are further analysed in the following sections based on the Macro and Micro environment.