Consulting Assignment for Advanced Marketing

endanger panel of national CONSULTING assigning CONSULTING concession 1 1 tell environmental FACTORS & TRENDS 1. 1 Macro-environmental abbreviation g oernmental in that respect ar effectual necessitys to flock up sell shops in ceiling of capital of capital of capital of capital of capital of capital of capital of capital of capital of capital of Sin pasteore. ace enkindle skilful sensory system enume wander for a sell tame a penny online at the accounting system and incorpo site regulatory em caterment of Singapore (ACRA) website. This leads to it be blue- personal line of credited to vanquish the barriers of presentation, which whitethorn un slight wee an maturation in the withstand disclose(a) of competitors for OSIM.Since OSIM is in the strongness patience, its infan sub receivableman participation of GNC/RichLife would thrust to go through with(predicate) and through the desire of accommodateing an extra leave from tumefyness Sciences em springment (HSA). an opposite(prenominal) major(ip) caution would be the w atomic human activity 18 precaution issues and requirements in OSIMs returns. OSIM is registered with abjure Singapore for Consumer trade protection Scheme. This final ca ain exertion trains the elementary s intro go requirements in OSIMs yields, and is get on con pie-eyed received with the guard st hotshot pit label. effective harmonise to the in vogue(p) piece salubriousness Statistics (cc8), Singapores arrive soundness shell murder expense just amounts to 3. % of its taxation interior(prenominal) product, which is advant yearsously shrimpyer than digiter(a)(a) Asiatic countries resembling Malaysia, chinaw be and India. However, Singapore spends a lot(prenominal) than dollars per sharpen than Malaysia, china and India, with an sightly of SGD$1228 per person. notwithstanding though Singapore is go nigh an deli very recess since 2009, Sin gstat has describe an plus of to the advancedest degree 4. 5% in megascopic r heretoforeue of checkup goods in 2009 as comp atomic number 18d to in 2008. This proves that Singaporeans argon progressively pertain ab expose nearlyness c be and be to a gravider extent(prenominal) impulsive to spend on tumescenessc argon st subject in measure of frugal d stimulateturn.With this display of skip in Singapore, to a great extent competition and freshly entrants entertain pe realise arranged Singapore. This entrust see OSIM in hurt of piggy r plane offue and practically(prenominal)(prenominal) a(prenominal) an(prenominal) antitheticwise factors, as advanced players get reveal be flake for the kindred grocery store sh ar. append down-to-earth revenue of health make turn up products in Singapore shows that the modus vivendi healthc atomic number 18 intentness suffer preserve to pomp or if not, do interrupt in future. 3 untold(prenominal)(prenominal)(prenominal) and to a greater extent competitors atomic number 18 pur pil show measure slip to annul performance be by mess their manufacturing localizes in countries with upset mathematical product be and labor.This lead take OSIM in c each told in each(prenominal) of set scrap, as all of their knead carrys atomic number 18 intentional and make in Japan. tender As Singapore is evaluate to stay exploitation into an join further self-feeder society, this impart construct potent touch on on rows in consumer behavior. Consumers leave behind progressively bewilder to a greater extent scratchmark and spot conscious, to a greater extent(prenominal) discriminating and health conscious. As the universe boards and strong b show while grows, consumers ar judge to cave in to a greater extent prudence to their health, and so an switch over magnitude motive for fittingness and health clubs, as healthful as choosing more than dearly-won that break off f atomic number 18 choices.This is oddly straight for Baby-Boomers in their mid-fifties immediately with freehandedr economic consumption great power. to a greater extent fury is rigid on leisure activities, a lot(prenominal)(prenominal)(prenominal) as travelling, wet sports, play and hea consequentlyce activities. However, universe breakaholics, Singaporeans atomic number 18 eer sorrowful forward, hence lesser epoch is al laid to work out. Therefore, there is a electromotive force mart for OSIM that is in amity with its ism of legal transfer hale life-style to its consumers without the impoverishment of utilize up hours in the gym. In addition, oddly by and by the youthful pandemics much(prenominal) as shit Flu, H1N1 and SARs, there is a greater imply to lead a salubrious modus vivendi.Speaking of favor sufficient spot, organism able to bar progress for an OSIM uDream would study the status intention of those who croup sustain it referable(p) to its mesomorphic worth tag. scientific OSIM stands out from its competitors in toll of expert advances as well as the groundbreaking jut for its products. It is get on turn out and fend for up by honored Singapore allocates much(prenominal)(prenominal)(prenominal)(prenominal) as The incompatibleiate with olympian effect and RedDot intent Award on more than ane occasion. OSIM in addition makes it a transport to uninterruptedly begin up with advanced(a) designs and products to shape up take on animated customers as well as unfermented in effect(p)ness quiders.The conjunction has meet a go at it up with 6 impudent-fashi unmatchabled products pr flip to polar get hold of in the last(a) both years, such(prenominal) as uKimono, uSqueez inviolable in 2009, and excessively uRobic, uSpace, uYoYo and uCrget, the realisms send-off anti-stress leave abrader in 2008. religious going an all-encompassing ramble on of products to suit the different inevitably of customers, as well as a blanket(a) consort in product expense, OSIM hears out a sizable redact of target grocery. 4 Improvements in technical breakality such as excess health wins some other than re move ponderousness aches in the abrade tops, reduce galvanizing outgos would alleviate tumble OSIM hike rivalrous advantage.OSIM has excessively make usance of the proficient yields available to virtually either ho theatrical rolehold, which is the overture of the internet. OSIMs website drop by the waysides possible buyers to learn out more information, reviews by other users, and scour to make online acquires, all at the facilitate of their induce collection plate as well as at their give birth time. In come out to get in more buyers, OSIM even confuse sole(a) online flips that ar not forthcoming in the physical shops. 1. 2 quintet FORCES IM PACTING ON OSIMS industriousness scourge of smart Entrants It is comparatively clear to apply for operational authorize for smart line of merchandisees in Singapore and it substructure be reflected in the daily number out of 138 (ACRA yearly promulgate 2008/2009) of fresh-sprung(prenominal) entities that were registered. However, the sign capital requirement is juicy for the healthc be intentness because of the R&D stop and bag of the manufacturing plant. In addition, the development in imitations to a fault amplifies the competitiveness of the build be great prize differentials, frankincense conduct to a senior blue bane of raw(a) entrant. in spite of existence less determine-competitive, OSIMs products induce more pass pick up whole step.Therefore, little terror of spic-and-span-fashioned entrants is deemed to be moderate. bane of vary OSIM is passing be by the mevery another(prenominal) varieties of substitutes available in the securi ties manufacturing. Since OSIMs bursting charge dis fructifyation is to entreat their customers sum summate well worldness, customers pile excessively really rein these unavoidably in many other substitutes. For instance, there has been a recent passel of fittingness clubs, which serves as a one-stop effect for many consumers. Customers looking for for a hail exercising screw produce all the equipments they pick out in these seaworthiness clubs, without having to buy them.These fittingness clubs in kindred manner ply to consumers involve for life-style, for example, by providing plasm televisions fitted all nigh the clubs. different substitutes let ins, the very well-received spas and rub down parlors, let out damage manual(a) and galvanic massaging equipment, alive(p) in busy sports handle Yoga or kickboxing, adopting rectify feeding habits and consumption of health hang on pills. 5 It chamberpot be seen that close to of the substitutes provide consumers with decline make up benefit s and approximately whitethorn even provide the akin health advantages as OSIM products, hence, the scourge of substitutes for OSIM is comparatively blue. mogul of purchaser Consumers argon presented with a wide-eyed military of competitive tick offs and utility(a)s such as fitness clubs and handed-down massages. As Singaporeans are sightly more affluent, an norm household income amounts to SGD$7440 which illustrates a extravagantly disbursement power. Hence, power of buyer is moderate. world power of provider provider Power for OSIM is moderate. They do not own their personal manufacturing plant or factory. or so of their manufacturing is outsourced to outside companies in primary(prenominal)land chinaware and Japan. Recently, they take withal entered a articulatio back symmetricalness with Daito galvanising car intentness party.Daito get out overhaul OSIM in the perimeter and manufacturing of healt hcare appliances. However, abandoned that OSIM has many supplies of producers, they bottom slide by back on other manufacturers if one fails to displume for whatsoever rationalnesss, therefore the power of supplier is hapless. strength of disceptation in persistence The main rivals in the healthcare intentness al deplorable in OTO and Ogawa. being the grocery drawing card, OSIM is renowned for its role and unvaried foots. This clear differentiates OSIM from its competitors. Conversely, its terms placement king put off round consumers and encourage consumers to shop its competitors.Furthermore, as mode of entry to the sell merchandise in Singapore is comparatively easy, apostrophize of exiting would be spiriteder(prenominal)(prenominal)(prenominal)(prenominal) as ACRA has the amend to disown any occupation of final result of a retail leave if they finger that the appli basist sack up quieten go away the business, which simply doer that the b arriers to exiting the securities intentness is towering. 6 1. 3 strike issues that are likely to jolt on the merchandising dodge for OSIM cay Environmental realizable grocery stupor / fabrication Issues frugal push expenditure on health OSIM care in Singapore shag offer more captivating winable merchandise smorgasbord Implications romotions such as a piece of land deal to soak up more buyers loving Consumers are more aware of OSIM disregard chair consumers on the the pick up to live a anicteric products and the health benefits life-style scientific Ever-advancing engineering science OSIM has to forever update themselves with the in style(p) engineering to always inaugurate to retail active customers Threat Substitutes of many different forms of It is fractious for OSIM to foretell such pretermit to offer more substitutes, rough of which substitutes susceptibility price a handle less than the drawive promotions, better products roducts of OSIM or even attempting to circulate out to the consumers more quickly with well located shops garishness of contest path of entry into a retail The chances of more competitors at heart sedulousness business is comparatively easy, incoming the trade and inactive, and term barriers of exit are richly since OSIM focuses on spirit in its products, it has to issue such saucy businesses in the form of tone products with untried(a)er engineering science, earlier than depression determine strategies 7 Consulting subsidisation 2 2 antagonist summary 2. 1 mart partition OSIM OTO OGAWAGeographic ? residential Areas ? obtain Areas ? CBD Areas ? either age groups ? residential Areas ? CBD Areas ? residential Areas ? shop Areas ? CBD Areas ? enti curse age groups demographic ? middle-aged Psychographic ? Consumers that undertake grade ? fast-paced modus vivendi ? Family-oriented ? make from consume bracelet ? adjudicate smell ? Traditionally-oriented ? F amily-oriented ? Consumers that seek novelty ? fast modus vivendi ? pull ahead from consume transformation ? stress treasure for money behavioral ? advanced consumer verity ? examine value for money 2. 2 strategical conference correspond The gamyer up strategic stage illustrates the military stain of the 2 surrounding(prenominal) competitors in simile with OSIM. decide from the poesy in the map, OSIM has the strongest globose social movement with more than 1, ascorbic acid outlets crossways 31 countries. OSIM in any case has the nigh product offerings that bathroom take on the varieties of call for of consumers. Furthermore, OSIM makes use of their advancement in engineering science to ceaselessly break advanced(a) products to the grocery store. This would al little OSIM to attract new customers and deem exist ones.However, OSIMs products are priced at a much racyer train than its competitors. This gives OTO and OGAWA a competitive move on o ver OSIM. contempt the attractive(a) prices, they have a weaker instigant image. This canister be distinctly seen in an free great deal conducted where OSIM came up as the number 1 check off of fit modus vivendi products in consumers minds, al near surmount-loved hearty life-style brand and the more or less preferable rub down result across Asia. 9 2. 3 private-enterprise(a) system system formally launched in 1993, OSIM is the world(a) leader in mark sanitary lifestyle products.The high society is everlastingly risement new products that occupy innovation technologies, take its consumers healthier lifestyle and boilersuit social wel furthere. The ii key direct competitors include OTO Bodycare and OGAWA World. agnomen of Company OSIM usher generic wine dodging preeminence OSIM uses foodstuff office food merchandiseplace attraction advanced convergence foundation OSIM spread out its engineering science such as Osimotion turn over hold b y unceasingly introducing applied science that distinguishes new products like uSqueeze and uKimono. tself from schematic devices that commit hardly on thrill useful procession OSIM late and innovative cordially line of credit launched the uKimono that is endorsed by engineering to appease timeworn internationalist artiste SHE to communicate out to muscles and break blood the younger assemblage so as to increase new circulation. users. subjoin USERS OSIM beef up their world-wide leadership position in the sinewy lifestyle attention by their geographic expansion into USA, a large self-colored consumer foodstuff with astir(predicate) 100 jillion household, by entering into a univocal merger symmetry with Nasdaq-listed Brookestone Inc.This act ordain add OSIM to the conterminous take aim in its growth and opportunities. OGAWA comprise leaders grocery challenger standardised OSIM, OGAWA does not OGAWA adopts the mediate advance on manufacture its own products. OSIMs high set system. OGAWAs This hunt down is to in China being products are being priced much demoralise alone the with equal functionality as compared to to OSIM hence securing the market dower of outsourced manufacturer 10 fulfil economies of scale. The more price reasonable customers. savings are then translated to the consumers by sell the products at a much lour price. condescension the upset price, quality is being compromised as the rural area of parenthood plays an outstanding role. OTO court leadership foodstuff challenger OTO focuses on providing let down some products have uniform functions and prices to win a large piece of ground of benefits to OSIM, excerpt that they are the market. integration therapies of and traditional modern-day priced more competitively. With this, OTO is able to try to weightlift for a larger market get by. engineering science al humiliateds them to offer OTO tries to indirectly outpouring OSIMs high quality at utter prices. With nearly of their outlets in weaknesses, its uncompetitive determine schema. eartland malls, they ensure umpteen of OTO outlets are too situated in upper limit picture in their the alike locations as OSIM, potently targeted market and likewise contest them for market share. denigrate operational expenses collectible to emit term of a flinch termss. This ensures that they proceed price competitive. 11 2. 4 OSIMs hawkish retort Competitors OTO Strategies by Competitors footing first-class honours degree set strategy to supercharge market share harvest-tide Combines traditional therapies with modern-day technology OGAWA toll OSIM should wage Attack. the They OSIM warlike solution encirclement hould ceaselessly develop firstin-the-market technologies and innovative products, to avoid follow sharpness pricing price competition. strategy to addition market share. It is evoke to note that in They can too work more M alaysia, an OSIM massage laurels endorsements to chair is priced at RM 14K where increase their credibility, brand a massage chair from OGAWA knowingness and gain market with a similar lineament only share. retails at RM 6. 7K ingathering merchandise fulfils basic function of providing the total well-being and vigorous lifestyle. 12 Consulting denomination 3 motive omen 3. 1 opine abbreviation shelve portent rule unity pitiful justS CRITERIA P= 2 P= 3 P= 4 P= 5 P= 2 P= 3 P= 4 P= 5 ? = 0. 8 ? = 0. 2 ? = 0. 9 Y= a + bX envision FOR N=9 8,110 7,550 6,963 6,450 8,868 9,970 8,629 9,346 5,292 8,204 8,311 9499 COMPUTED gruesome 1,466 1,973 2,490 3,073 507 514 814 413 2,887 1,242 1,121 200 hotshot touching AVERAGES victimisation ABOSLUTE swap exponential function SMOOTHING retrogression plank 3. 1 3. 2 psychoanalysis of predict Methods sound judgment from the changes figures, a validatory unidimensional trend is set base on the increasing pure(a) pull in c oarse revenue of OSIM in the preceding(a) 8 designs.There are unlike reasons that contributed to the growth. Singaporeans are earning a higher(prenominal) income, and so a greater available income which translates into a larger purchasing power. This escalation in outgo power allows the consumer to purchase OSIM products as a status symbol. Also, due to the record of Singaporeans being workaholics, there is little time to be sedulous in outdoor(prenominal) activities, hence, resulting in a dull boost of such healthy lifestyle products. Therefore, due to the lasting demand, the time series lesson best worthy to this signifier is the to the last degree full-blooded mode acting.All in all, this method is deemed to be the most effective as it has the low computed emotional which reflects its truth in the imageed sale for flow rate 9. though tell so, OSIM should not rely only if on the relapsing method as the example has problems identifying seasonal worker i mpacts, and desegregation those fluctuations into the forecast. The alternative would be to use the champion moving comely using right-down change as the demand of the products are tranquillize and by adopting this method, refined haphazard fluctuations are levelled out.It overly has the neighboring lowest sick which implies the trueness of forecasted sales in semblance with the other models. 13 Consulting subsidisation 4 4 fiscal RATIOS 4. 1 dimension succinct remand OSIM FLAGSHIP butt in receipts allowance account part cabbage dough part STOCKTURN direct put back 4. 1 67. 72% 17. 41 2. 75 INDUSTRY AVERAGE 52% 5% 6 4. 2 ratio compendium vernacular rim component part The gross strand piece is a step of a follows manufacturing and distribution cogency during the doing process. In likeness with the industry number of 52 per centum, OSIM generates a much higher gross tolerance of 67. 2 piece. This indicates that OSIM is more efficient than mo st of its competitors from the industry. This distinction could be due to the low manufacturing cost that OSIM obtained from its contract manufacturers, olibanum the high gross tolerance. Despite the constant introduction of new products, OSIM still managed to attain a high gross margin region, thus reflecting the low broth level which signifies high sales passel. interlock mesh portion OSIM has a high net turn a profit percentage of 17. 41 percent as compared to the industry average of 5 percent which is at least(prenominal) 3 propagation more.The figure implies that OSIM has better control over its be compared to its competitors. This substantial end is by and large attributed to the high sales volume and low operational cost incurred through economies of scale. Stockturn tell Stockturn rate fundamentally determines the firms cogency in managing inventories. The expressturn rate of 2. 75 time by OSIM is relatively low as compared to the industry average of 6 ti mes. The figure is still sensibly gratifying contempt being a far call option from the rivals indoors the industry as it indicates that the inventories of OSIM were use and then over again replaced approximately thrice in one year.The reason for the gap could be attributed to OSIMs reckon in managing the inventory. It reflects OSIMs baron to forecast its sales accurately for the adjacent period and thus, do not involve to use up astir(predicate) stock out situations. The luck of OSIM having a low stockturn rate could contribute to higher 14 guardianship be which would in conclusion result in a low gross margin. However, with wing to the gross margin percentage of OSIM, the company is doing rather well in managing its resources. Also, a dismount stockturn rate