Anxious for their children to earn respect, parents in the newly rich segment aspire to
7-9. Assess the prospects for success for the Lincoln Motor Company’s entry in the China
The more target market research Lincoln does in China, the more successful they will be.
Case 7-2: Cosmetics Giants Segment the Global Cosmetics Market
Overview: The world’s best-known cosmetics companies are setting their sights on a lucrative
new market segment: the emerging middle classes in countries such as Brazil, Russia, India, and
China. Market research is critical to understanding women’s preferences in different parts of the
world. In China, for example, L’Oreal and its competitors have an opportunity to educate
women about cosmetics, which were banned prior to 1982.
7-10. How do women’s preferences for cosmetics and beauty care vary from country to country?
In China for example, Chinese women apply products in the morning and the
evening and Chinese consumers are price sensitive. In India, millions must live on $ 2
7-11. Assess Estee Lauder’s strategy for China. Does it make sense to focus on premium brands,
or should the company launch a mass-market brand?
Estee Lauder’s strategy is that their products are aspirational. Based on their market
research and psychological research, they feel that Chinese consumers would be willing
7-12. What is the best positioning strategy for Shiseido as the company expands in Asia? High
touch? High tech? Both?
Shiseido has a corporate advantage because they understand the needs and
requirements of the Asian skin – their positioning strategy is or should be one of
7-13. Do you think L’Oréal will succeed in changing the buying habits of Brazilian women?
Traditionally, Brazilians have bought their cosmetics from sales representatives who go