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AMORE PACIFIC CASE

Dr Soma Arora

The
Transformation
Category
Initial position

Repositioning

Market Position

Large / established share


built in a protected market

Focusing only on skincare,


exiting other businesses

Marketing

Historic strength at
marketing [ mass media
advtsg since 1955, beauty
mag since 1958, pageant in
1976]

Adopted MNC style brand


pyramid , trimming the
number of brands offered

Product Mix

Strong new product pipeline


[ 3 new lines ready for
introduction ]

Successful launch of new


brands

Distribution

Broad coverage with historic


strength in door-to-door
sales

Built chain of speciality


stores, restructured
department stores to match
MNC single brand counters

Cost management

Good financial structure

Grew economies of scale

Home country advantage

In korea consumers have


unique preferences [ using
20 products per day ],

Refocused to sustain lead in


market with above avg
defense.

CAGE ANALYSIS

COUNTRY

CULTURAL

ADMINISTRATI
VE

GEOGRAPHIC

CHINA

Hallyu Korean
wave
Linguistics
similarities
Traditional
medicine
Religious and
moral
systems
rooted in
Buddhism,
Confucianism

The colonial
Very close
rule
only 510
Different
miles
political and
Strong infra
economic
supports ,
system but
linkages
generally
Historic
good relations
common land
border

China poorer
but rapidly
growing
GDP
percapita PPP
5,600$ vs
19200 $ for
Skorea.

USA

Very distant
cultures
Close
business and
military ties

Close security
cooperation
since Korean
war

Very far, 6906


miles

Richer and slow


growth USA ,
40100$

France

Very distant
culture
Very limited
connections

Limited
administrative
linkages

Very far , 5560


miles

Richer and slow


growth 28700$

CAGE ANALYSIS

ECONOMIC

RECOMMENDATIONS
ASIAN MARKET COVERAGE
PACE OF EXPANSION
LEARNING CURVE