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Overview Position Proposal Financials Conclusion
Overview Position Proposal Financials Conclusion
Company overviewHealth and wellness lifestyle productsAsia- accounts for 88% of OSIM’s revenues“We Create Demand” – Mr Ron Sim (Founder, Chairman, and CEO)#1 healthy lifestyle brand in Asia
Overview Position Proposal Financials Conclusion
Expanding global network
31 countries, 369 cities, 1104 outlets, and counting…
Overview Position Proposal Financials Conclusion
Products
uSqueez Warm uRobic
uPapa Hug
uDesire uSoffa Petit
Overview Position Proposal Financials Conclusion
SWOT analysis
Strengths• Strong branding
• High-quality products
• High margins(luxury association)
• Asian expertise
• Strong distribution network in Asia
• Long-term leadership and focus
54%34%
12%
Revenues by Region- 2009
North Asia
South Asia
America, Africa, Europe, Middle East, Oceania
477 million in revenues worldwide
Overview Position Proposal Financials Conclusion
SWOT analysis
Weaknesses
• Limited sales and marketing channels
• Weak international presence/sales
• Poor Brookstone performance
Current channels: retail stores, online retail
Weak performance outside Asia
Overview Position Proposal Financials Conclusion
SWOT analysis
Opportunities
• Explosive growth of emerging middle/upper class in Asia (esp. China)
• Increasing stress levels in business
• High perceived value of products
Only 1-2% market penetration in China
Graphs on exploding middle/upper class in Asia
Overview Position Proposal Financials Conclusion
SWOT analysis
Strengths
• Strong branding
• High-quality products
• High margins(luxury association)
• Asian expertise
• Strong distribution network in Asia
• Long-term leadership and focus
Weaknesses
•Limited sales and marketing channels
•Weak international presence/sales
•Poor Brookstone performance
Opportunities
• Explosive growth of emerging middle/upper class in Asia (esp. China)
• Increasing stress levels in business
• Recession over
• High perceived value of products
Threats
• Cyclicality of business and consumer preferences
• Overreliance on Asian markets
• Copycats and competitors
• Lack of brand value/awareness outside of Asia
Overview Position Proposal Financials Conclusion
SWOT analysis Key points: 1) strength in Asia, but limited sales/marketing
channels + expected growth in this location = OPPORTUNITY TO INCREASE OUR SALES IN ASIA THROUGH NEW SALES/MARKETING CHANNELS
2) weak performance out of Asia + threat of poor reception of massage products = OPPORTUNITY TO INCREASE OUR SALES OUTSIDE OF ASIA BY STRENGTHENING OUR BRAND ABROAD
Overview Position Proposal Financials Conclusion
The Plan- Hotels Increase revenue by selecting an Asian luxury
hotel chain that caters primarily to businesspeople and placing OSIM products in the hotel rooms/suites for use Utilize OSIM’s strong Asian brand strength and
the guest’s perception of high value and luxury to help further enhance the hotel’s luxuriousness
Show guests that OSIM’s products help to relax and feel good guests become new OSIM customers
Overview Position Proposal Financials Conclusion
Why Hotels? Business hotels have a high turnover of the
type of guests that are ideal prospective consumers with high-paying, high-stress jobs
Ideal locations in major Asian cities and business centers
Overview Position Proposal Financials Conclusion
Why would they? Hotels receive both tangible and intangible returns on
their investment
The OSIM brand adds to the hotel’s brand (synergy) Ex. Sealy and Hotel
OSIM products add value and luxury to hotel’s offerings Ex. Doubletree cookies
Lack of 24-h spas and guest preference for privacy and convenience
Overview Position Proposal Financials Conclusion
Case: Battle of the Beds Marriot: Serta Perfect Sleeper Mattress Ritz-Carlton: Sealy Hyatt Grand Bed: Sealy Posturepedic http://
www.travelandleisure.com/articles/battle-of-the-beds/1 Key points: initiatives are costly BUT Westin: expect 12-20 premium per room per
night because of branded, high-quality mattresses Marriot: expect 30 premium per room per night What does this mean? Hotels expect tangible
benefits to associating with high-quality brands for room furnishings
Overview Position Proposal Financials Conclusion
Shangri-La 40+ locations in Asia Business hotel Luxury
Overview Position Proposal Financials Conclusion
Implementation Put uDesire’s in only the most expensive suites
and uPapa Hug’s in as many rooms as possible
Place order forms in the rooms so guests can purchase it immediately or by going to an OSIM store
Overview Position Proposal Financials Conclusion
Case: Herman Miller
Overview Position Proposal Financials Conclusion
Assumptions Write down assumptions here
Overview Position Proposal Financials Conclusion
Financial Impact Charts/NPV here
Overview Position Proposal Financials Conclusion
Expansion of plan If it works, then we expand it to hotels outside
of Asia No distribution network and no demand so
different plan Long-term horizon
Create demand
More modest numbers because of the limitations
Overview Position Proposal Financials Conclusion
Mandarin Oriental
Overview Position Proposal Financials Conclusion
Financial Impact 2 Charts/NPV here
Overview Position Proposal Financials Conclusion
Conclusion
Retail Stores
OSIM
Hotels
Home
Web page
Overview Position Proposal Financials Conclusion
Q&A Team picture here =)
