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Company
[AMORE PACIFIC]
•   Cosmetics Manufacturers. Established in June 2006. (The predecessor : ㈜태평양)
•   Major projects – Manufacturing and wholesale of Cosmetics, Dairy products, Food Additives,
                  Pharmaceutical-Cosmetics raw materials
•   Philosophy – “To create beauty and health is contributing to mankind”
•   Vision – “For beauty and health of customers and a global provider of Total Care”


◈ Business Environment Analysis - Industry Analysis
- Characteristics and environment : Higher value added business, Easy market entry of new party
                             Large and stable,

- State of Industry : Consumption polarization, Expanding domestic market share of imported
                  brands
- Changes in the domestic market : Appearance of foreign company, Intensified competition
                             among domestic company
AMORE PACIFIC SWOT Analysis

Strengths                                         Weakness
S1. The high investment in R & D                  W1. High dependence in cosmetics
S2. Strong brand image
S3. high positioning in domestic                  W2. High dependence in material,
    market                                        ingredients affiliates
S4. Securing a variety of distribution channels
S5. Stable fiscal and external evaluation         W3. Expensive Treatment costs for
S6. High Overseas expansion and market            environmental
    share compared to third-party
S7. successful brand Globalization

Opportunities                                     Threats
O1. Government’s support                          T1. Foreign company's global
O2. Stability of the cosmetics industry                                   Marketing
O3. Korean Wave                                   T2. Change of the law, regulation
O4. Increased interest in male beauty             T3. Saturation of the domestic market
O5. Overseas opportunities
O7. Improve capital efficiency when
    switching to a holding company
AMORE PACIFIC – 4P’s MIX
Product

• Environment-friendly products
• Product differentiation
- Na-no technology
• Various Products
- stage of skin-care product
• Brand Name
- Using the recognition
               & Expansion by Brand
• Packaging & Size
- Experiential Marketing
-Portable, storage, samples Product
AMORE PACIFIC – 4P’s MIX
 Price

• Compared to the value               Competitive
  Competing products                  Advantage


 Promotion


Open distribution channels                   Selective distribution channels
(existing)                                   (Future)

• Expansion
- Ongoing basis path to market for expansion around the other country
AMORE PACIFIC – 4P’s MIX
    Promotion


• Basic Strategy
- High price product : prestige brand strategy
- Sales Promotion: Consumer Promotion , Direct Marketing
- Advertising media: Mainly print ads

•   Promotional strategies
-   emphasis on the quality of promotional materials
-   Sample : gentrified → the sample consist of stage & special case
-   Gifts : Gift shops only buy → future induction
•   Individuation: break to a unified in-store display drivers
■ BCG Matrix

           Food&
          beverage
           division


                       QUESTION
STAR    cosmetics
         division      MARK       ?
                    Health care
                     division
  Households
     item
   division



CASH COW               DOG

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Amore pacific

  • 1. Company [AMORE PACIFIC] • Cosmetics Manufacturers. Established in June 2006. (The predecessor : ㈜태평양) • Major projects – Manufacturing and wholesale of Cosmetics, Dairy products, Food Additives, Pharmaceutical-Cosmetics raw materials • Philosophy – “To create beauty and health is contributing to mankind” • Vision – “For beauty and health of customers and a global provider of Total Care” ◈ Business Environment Analysis - Industry Analysis - Characteristics and environment : Higher value added business, Easy market entry of new party Large and stable, - State of Industry : Consumption polarization, Expanding domestic market share of imported brands - Changes in the domestic market : Appearance of foreign company, Intensified competition among domestic company
  • 2. AMORE PACIFIC SWOT Analysis Strengths Weakness S1. The high investment in R & D W1. High dependence in cosmetics S2. Strong brand image S3. high positioning in domestic W2. High dependence in material, market ingredients affiliates S4. Securing a variety of distribution channels S5. Stable fiscal and external evaluation W3. Expensive Treatment costs for S6. High Overseas expansion and market environmental share compared to third-party S7. successful brand Globalization Opportunities Threats O1. Government’s support T1. Foreign company's global O2. Stability of the cosmetics industry Marketing O3. Korean Wave T2. Change of the law, regulation O4. Increased interest in male beauty T3. Saturation of the domestic market O5. Overseas opportunities O7. Improve capital efficiency when switching to a holding company
  • 3. AMORE PACIFIC – 4P’s MIX Product • Environment-friendly products • Product differentiation - Na-no technology • Various Products - stage of skin-care product • Brand Name - Using the recognition & Expansion by Brand • Packaging & Size - Experiential Marketing -Portable, storage, samples Product
  • 4. AMORE PACIFIC – 4P’s MIX Price • Compared to the value Competitive Competing products Advantage Promotion Open distribution channels Selective distribution channels (existing) (Future) • Expansion - Ongoing basis path to market for expansion around the other country
  • 5. AMORE PACIFIC – 4P’s MIX Promotion • Basic Strategy - High price product : prestige brand strategy - Sales Promotion: Consumer Promotion , Direct Marketing - Advertising media: Mainly print ads • Promotional strategies - emphasis on the quality of promotional materials - Sample : gentrified → the sample consist of stage & special case - Gifts : Gift shops only buy → future induction • Individuation: break to a unified in-store display drivers
  • 6. ■ BCG Matrix Food& beverage division QUESTION STAR cosmetics division MARK ? Health care division Households item division CASH COW DOG