Shanghai is the largest Jahwa domestically-owned Chinese manufacturer of cosmetics and personal care products. In recent years, it was part of a booming market with growth rates of 35% per year. The spectacular growth has picked up and has been fueled by the entry of large multinational companies, including Unilever, Procter & Gamble, Shiseido, Kao, and others. The marketing challenge for Shanghai Jahwa is to carve out viable and defensible positions on the market given the competition here … Read more »

Shanghai is the largest Jahwa domestically-owned Chinese manufacturer of cosmetics and personal care products. In recent years, it was part of a booming market with growth rates of 35% per year. The spectacular growth has picked up and has been fueled by the entry of large multinational companies, including Unilever, Procter & Gamble, Shiseido, Kao, and others. The marketing challenge for Shanghai Jahwa is to carve out viable and defensible positions on the market in the face of competition from some of the most powerful global player in the industry. This case illustrates management issues in the context of a successful brand of cream. The two main flagship products, the Maxam Tremella Pearl Cream and Maxam Hand Cream, have developed in very different directions. The Tremella Pearl Cream is still popular in rural areas and is considered a mainstay of the rural cosmetic use. The Maxam Hand Cream, on the other hand, is primarily an urban brand. Need of urban women soften their hands after they have been exposed to the cold and detergents met However, in urban areas, the brand loses its attractiveness as foreign competitors roll out their international brands and products. The challenge is to renew the Maxam brand without the loyal customers of Tremella Pearl Cream.
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from
Niraj Dawar,
Peter Yuan
Source: Ivey Publishing
18 pages.
Publication Date: Dec 16, 1998. Prod #: 98A026-PDF-ENG
Shanghai Jahwa: The HBR case solution Maxam Brand

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