OSIM Market Expansion Plan in Japan

This assignment analyzes OSIM's potential for expansion into the Japanese market. It utilizes PESTL and SWOT analyses to evaluate political, economic, social, technological, legal factors and OSIM's internal strengths, weaknesses, opportunities, and threats. The plan identifies the target audience as upper-middle class consumers and acknowledges local competitors like Osaki and Inada while highlighting OSIM's technological advantages.

Running head: MARKETING PLAN FOR OSIM IN JAPAN
Marketing plan for OSIM in Japan
Name of the Student
Name of the University
Author note

1MARKETING PLAN FOR OSIM IN JAPAN
Executive Summary:
OSIM is one of the fastest growing and well established massage chair producer of
Singapore. The brand is now willing to expand their in foreign markets like Japan and thus a
formal market analysis has been done here. Through the analysis, it has been found that there
is lot of scope for the OSIM to expand its business Japanese market.

2MARKETING PLAN FOR OSIM IN JAPAN
Table of Contents
Introduction:...............................................................................................................................3
Analysis:.....................................................................................................................................3
PESTL analysis:.....................................................................................................................3
SWOT analysis:.....................................................................................................................4
Market analysis:.....................................................................................................................5
Conclusion:................................................................................................................................5
Reference:..................................................................................................................................6

3MARKETING PLAN FOR OSIM IN JAPAN
Introduction:
Japan in one of the fastest growing economies in Asia and people of this country are
highly health conscious (Czarniecka‐Skubina & Nowak, 2014). The chosen industry for this
assignment is OSIM, which is one of the leading health and lifestyle brand in Asia. This
report will use PESTL and SWOT analysis to perform the market analysis of OSIM and it
will try to find out the scope of expanding the business of the brand in Japanese market.
Analysis:
PESTL analysis:
Figure 1: PESTL analysis
Source: (Created by Author)
Political factor – Japan has constitutional monarchy and it presently it has a strong
political balance throughout its various provinces (Katz, 2015). Japan being a signatory of
ASEAN and G8 group, it always provide equal platform to every organization to grow. Thus,
entering into the Japanese market will not be hard for OSIM.
Political
Economical
SocialTechnological
Legal

4MARKETING PLAN FOR OSIM IN JAPAN
Economic – Japan is the fifth largest economy of the world, and it has only 5% of
unemployment rate (Tachibanaki, 2016). Tertiary and secondary sector of Japan produce
most of the job that helps to maintain stable financial condition of the citizens. Thus, if OSIM
enters the Japanese market it can have better profit.
Social – According to the World Bank Data, population of Japan is almost 126+
millions and the population of this country is open to incorporate anything new ( Lutz, Butz
& Samir, 2017). Thus, in this case Japan is a good option for OSIM to expand.
Technological – Japan is the technological hub of Asia and it has advanced
telecommunication. The Japanese population always favors hi-Tech gadgets and products,
which is expected to offer advantage to OSIM.
Legal – Japan has well established Corporate and Labor laws, which are quiet similar
with the law system of Singapore (Ahmadjian, 2014). OSIM being a company from
Singapore will always adapt with the Japanese economy easily.
SWOT analysis:
Strength Weakness Opportunity Threat
-- Strong brand image
-- Large market share
-- Strong brand
portfolio
-- Good customer
loyalty
-- Partially expensive
products
-- Small number of
buyers
-- Expanding more
-- Product
diversification
-- Enhancing supply
chain
-- Competition with
regional brands
-- Rise in labor cost
--Shift in demand
Figure 2: SWOT analysis
Source: (Created by Author)

5MARKETING PLAN FOR OSIM IN JAPAN
SWOT analysis of OSIM shows that, the brand has great scope to expand its business
in Japan because it has strong brand image as well as large market share in the domestic
economy. Though there are few local brands like Inada and Osaki, who produce substitute
products, but it will certainly give rise to the technology upfront of the OSIM (Ueda,
Takenaka, & Nishino, 2017). Moreover, it is important for OSIM to expand its business in
the foreign market too, if it wants to survive.
Market analysis:
Target audience – Cost of products from OSIM is bit higher thus it would be ideal
for the brand to select the Japanese of upper middle class for better sells figures.
Competitors – Local massage chair producers like, Osaki and Inada are present the
Japanese market. However, looking into the features and technological upfront of the OSIM
it is easy to say that the brand can create their own market in Japan.
Entry Barriers – Japan being a signatory nation of ASEAN and G8 group gives free
entry opportunity to every company; however, communication may arise as a big issue. Most
of the people in Japan prefer to talk in their native language and only 5% people can speak
English (Smith, 2015).
Conclusion:
Owing to the trustworthy service and plenty of experience, OSIM is acknowledged as
the best producer of lifestyle products in Singapore. The above analysis found that expansion
is the key to the growth of OSIM and Japanese market is potent enough to absorb the
products from the brand. Though the products from the brand is on higher side but the ever
growing Japanese market will always give a scope to the OSIM to grow and enlarge their
profit.

6MARKETING PLAN FOR OSIM IN JAPAN
Reference:
Ahmadjian, C. L. (2014). Corporate Governance and Business systems in Asia. The Oxford
Handbook of Asian Business Systems, 332.
Czarniecka‐Skubina, E., & Nowak, D. (2014). Japanese cuisine in Poland: attitudes and
behaviour among Polish consumers. International Journal of Consumer
Studies, 38(1), 62-68.
Katz, R. (2015). Japan, the system that soured. Routledge.
Lutz, W., Butz, W. P., & Samir, K. E. (Eds.). (2017). World Population & Human Capital in
the Twenty-First Century: An Overview. Oxford University Press.
Smith, L. E. (2015). English as an international language: No room for linguistic
chauvinism. Journal of English as a Lingua Franca, 4(1), 165.
Tachibanaki, T. (2016). Public Policies and the Japanese Economy: Savings, Investments,
Unemployment, Inequality. Springer.
Ueda, K., Takenaka, T., & Nishino, N. (2017). Service as Artifact: Reconsideration of Value
Cocreation. In Serviceology for Smart Service System (pp. 307-316). Springer Japan.