Situation Analysis of Watson: Competitor Analysis, Internal Analysis and Marketing Budget

The report covers the situation analysis of Watson, including competitor analysis, internal analysis, and marketing budget. It discusses the competitors of Watson, such as SAI cosmetics and super red, and their services. The report also covers the strengths, weaknesses, opportunities, and threats of Watson. The marketing budget of Watson is also analyzed in detail.

INTERNATIONAL MARKETING
Watson

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Executive Summary
The below report talks about Watson, which is one of the largest health and beauty care
company of Australia. It operates in many sectors from retail stores to retail brands. It has
occupied a large area in the geographical area and have also analysed the market by all the
internal and external factors. This helped Watson to increase their business activities by
understanding the competitor’s activities. This report covers the detail situation analysis of
Watson; that consists of a detailed market analysis. Additionally, consumer behaviour
analysis is carried out with the competitor analysis. The competitors that are considered here
are SAI cosmetics and super red. These competitors also offered services similarly to Watson
but with different quality. In this report the internet analysis of the company is carried out so
that weakness and threats could be found so that improvement could be done. The market
segmentation along with marketing mix is carried out. The plans to control the expansion is
also discussed.
Additionally, it can be stated that this report consists a detail study about Watson and its
competitors. The internal analysis of the company is carried out. Apart, from that marketing
budget of the company is carried out so that profit margins could be enhanced. Watson is a
member of A.S. Watson group that is owned by CK Hutchison holdings. It has founded in
1828 by A.S. Watson group (Watson, Dunn & Fraser-Kirk, 2018). It has headquarters in
Hong Kong but serve in many areas like china, Taiwan, Thailand, turkey and many more.
The opportunity captured by Watson in today’s time is that it focuses on personalised makeup
options as customers are willing to pay high prices. Thus, this report deals with a complete
understanding of Watson.

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Table of Contents
Introduction................................................................................................................................2
Competitor analysis....................................................................................................................2
SAI cosmetic..........................................................................................................................3
Super Red...............................................................................................................................3
Internal analysis.........................................................................................................................4
Marketing budget.......................................................................................................................4
References..................................................................................................................................7

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Introduction
Watson is a personal care store and is one of the largest health care stores in Asia. It
has diversified its store in health care and beauty care chain. It operates in various stores in
HK, Macau, China, Singapore, Thailand, Malaysia and other countries. It is a wholesale
distributor with its headquarters in Cambridge. It sells the products includes grocery, dairy,
institutional food, concession, frozen food and equipment. It has expanded to around 13,000
stores globally by operating international retail brands (Watson, Dunn & Fraser-Kirk, 2018).
It is one of the largest retail expertise and it brings out healthy solutions for consumers. In
this report, competitor’s analysis along with its internal analysis is carried out. It helps in
knowing that there are other competitors in Myanmar lie SIA cosmetic and super red who
have captured the audience. The marketing budget was also analysed that helps in
understanding the overall expenditure a company does to make to market place.
Competitor analysis
The competitors in cosmetic and beauty industry are increasing rapidly. The other
competitors are offering same services but at lower price. Thus, competitors of Watson are
focusing on capture audience (Khan, Colon-Acevedo, Mettu, DeLorenzi & Woodward,
2017). In Myanmar, there are various other local brands who are offering similar products
that Watson is offering. Thus, the presence of local and other stores in Myanmar makes it
difficult of Watson to enter in the market and maintains its brand image. The two main
competitors that are discussed here in this report are SAI cosmetics and super red. It was
found that Watson makeup products contain mixture of chemicals that have alleged many
customers. Thus, it is recommended to serve highly certificate and tested products so that
loyalty of customers is maintained. Thus, Watson charges premium amount for its products
and services.
SAI cosmetic
It stands foe sexy and intelligent liquid lip cream that has been used by every lady in
Myanmar. It has beaten Watson as it can be used by any lady and can be used with a type of
lip shade. It is one of the competitors of Watson as its products are widely used by women. It
has wide range of products that be used in any kind of occasion from meeting to night parties
to causal meals (Khan, Colon-Acevedo, Mettu, DeLorenzi & Woodward, 2017). It is a

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competitors or Watson as it products promises to last longer and have higher intensity as
compared to other brands (Eldridge, 2017). It always comes up with new innovative ideas
that help in maintaining loyalty and interest among customers. But comparing SIA cosmetics
with Watson it was found that they have expanded their service only in the cosmetic.
Whereas, Watson has diversified services like it brings up health and wellness services along
with personal care and fragrance (Eldridge, 2017). But on the other hand, Watson offers
various promotions and offers so that they can capture larger audience as compared to other
brands.
Super Red
Super Red is other competitor of Watson that has reflected all the dedication and enthusiasm
in the market of Myanmar. It has captured millions of fans by offering ultimate products that
reflect the passion and overall personality of Ni. It has somewhere beaten the market of
Watson as they try to capture audience by inspiring them to use their line of makeup (Shin &
Lee, 2016). They have made a market place in Myanmar by gaining significant trust and
loyally among customers. This was possible by the quality of products they deliver to their
customers. It is difficult for Watson to capture the brand position in Myanmar as super Red is
a brand that is working in cosmetic space of Myanmar since decades. The products of super
red are certified by GMP, ISO 9001. But the benefit Watson offer to customers is much more,
as it not only deal with cosmetic but has widespread in many different sectors. The company
face the competition from brands like SIA cosmetics or super red in Myanmar. These
companies have captured audience by offering promotion and special discounts on their
products. Thus, it would be very difficult for Watson to replace them (Valikhani & Goodarzi,
2017).
Guardian
It is a tough competitor of Watson as even guardian have diversified their services in
different sector like it offers services in medical and cosmetic department. It has specialised
its products in pharmaceutical products by controlling the entire manufacturing department. If
guardian store opens up in Myanmar it will act as a competitor for Watson as they serve their
products similar to Watson but at lower price (Kern, Gaede, Meadowcroft & Watson, 2016).
They have gained the market interest by offering innovative products and services. They
make sure that brand quality is met by helping customers to build loyalty (Geniole, Bird,
Ruddick & Carré, 2017). The business could enhance due to the trust and loyalty offered by
customers. It was a competitor for Watson due to its quality and the time in which products

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were delivered to the customers. The services offered to customers were way better than
Watson as well as prices were better as compared to Watson (Kern, Gaede, Meadowcroft &
Watson, 2016). Thus, Watson can replace guardian from the market if services are offered at
nominal price as compared to other competitors.
Internal analysis
 Strengths- For any industry to grow in Myanmar there are various strengths like it
offers strong commitment, availability of low cost labour has also allowed Watson to
make lager profits. Watson’s personal care has remarkable strength. The major
strength is that it offers wide range of products to the customers because Myanmar
has higher tourism potential. It also offers online service that adds up flexibility for
the costumers as it is very convenience for them. Apart from that, it offers rewards to
the customers so that they could enhance their sale. The presence of Watson in wide
geographical area offers it abundant resources to complete the activity (Watson, Dunn
& Fraser-Kirk, 2018). Due to increasing revenue margins it has many chain stores in
different countries.
 Weaknesses- One of the major weakness faced by Watson is that it focuses on every
small detail that may sometime loss the sight of objective. In Myanmar Watson faces
barriers due to weak macroeconomic management and lack of market mechanisms. In
the age of e-commerce the website of Watson is weak and has less optimized photos
and navigation buttons. Thus, due to has poor presence on social media websites as
compared to its competitors make it weak(Watson, Dunn & Fraser-Kirk, 2018). In
Myanmar they have inadequate infrastructure, particularly in trans-port, electricity
access, and telecommunication.
 Opportunities- Watson experience opportunities in Myanmar due to its strategic
location, renewable energy and huge sectors for investment. There are various
opportunities of Watson that have helped business to capitalize their returns. Some of
the opportunities are shift in consumer behaviour as people have now expected the
use of makeups trends(Watson & Mansour, 2017) . The use of cosmetic and personal
care products have increased. This is the reason demand of products is increasing
which it turn increases the per capital income of the company (Bradley, Griffiths,
Sherratt, Bell & Watson, 2015) .

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 Threats- Myanmar has high risk because of economic changes and there are various
internal conflicts that affect the overall productivity. Threat is one of the factors that
affect the environmental condition of the company. The major threat that is faced by
the company in Myanmar is due to its competitors who are offering the same products
and services(Bradley, Griffiths, Sherratt, Bell & Watson, 2015) . The economic
recession is the other threat, in this change in fashion trends adversely affects the
business and can cause loss to the organisation. Thus, it is required to have a detail
understanding about the service on which company is spending. Watson has also
experienced negative publicity due to any bad experience (Tusiimire, et. al, 2015).
Thus, these negative criticism leads to loss of customers.
Marketing budget
Watson
activities
Mon
th
1 2 3 4 5 6 7 8 9 10 11 12 Tota
l
(US
D)
Market
Research
Primary
Research
1200
0
800
0
20,0
00
Secondary
Research
1000
0
400
0
14,0
00
Marketing
Communica
tion
Brand
Activations
3000 200
0
200
0
300
0
160
0
120
0
120
0
120
0
120
0
120
0
120
0
120
0
20,0
00

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Internet
Marketing
3000 300
0
300
0
300
0
300
0
300
0
200
0
200
0
200
0
200
0
200
0
200
0
30,0
00
Content
Partnership
500 500 500 200 200 200 200 200 200 200 200 200 3,30
0
Total (USD) 2850
0
175
00
550
0
620
0
480
0
440
0
340
0
340
0
340
0
340
0
340
0
340
0
87,3
00
The major expense company faces is in internet marketing that is, approx $3000 is spent in
first six months of the year which was future reduced to $2000 each until the end of the year.
Apart from that, to gain audience a lot of money was spent in brand activation. It was started
with $3000 in first month that was reduced to $2000 and future 1600-1200 until December.
Brand activations help the company to be recognized by the customers and also increased the
overall interest in Watson. The other budget was used in content partnership so that
marketing could be made strong. Before starting with marketing communication, company
has spent huge amount of money in primary and secondary research(Tusiimire, et. al, 2015) .

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References
Bradley, E. J., Griffiths, C. E., Sherratt, M. J., Bell, M., & Watson, R. E. (2015). Over-the-
counter anti-ageing topical agents and their ability to protect and repair photoaged
skin. Maturitas, 80(3), 265-272.
Eldridge, J. M. (2017). The analysis of surfactants in cosmetics. In Surfactants in Cosmetics,
Second Edition, (pp. 103-124). Routledge.
Geniole, S. N., Bird, B. M., Ruddick, E. L., & Carré, J. M. (2017). Effects of competition
outcome on testosterone concentrations in humans: an updated meta-
analysis. Hormones and behavior, 92, 37-50.
Kern, F., Gaede, J., Meadowcroft, J., & Watson, J. (2016). The political economy of carbon
capture and storage: An analysis of two demonstration projects. Technological
Forecasting and Social Change, 102, 250-260.
Khan, T. T., Colon-Acevedo, B., Mettu, P., DeLorenzi, C., & Woodward, J. A. (2017). An
anatomical analysis of the supratrochlear artery: considerations in facial filler
injections and preventing vision loss. Aesthetic surgery journal, 37(2), 203-208.
Shin, K. O., & Lee, Y. M. (2016). Simultaneous analysis of mono-, di-, and tri-ethanolamine
in cosmetic products using liquid chromatography coupled tandem mass
spectrometry. Archives of pharmacal research, 39(1), 66-72.
Tusiimire, J., Wallace, J., Dufton, M., Parkinson, J., Clements, C. J., Young, L., ... & Watson,
D. G. (2015). An LCMS method for the assay of melittin in cosmetic formulations
containing bee venom. Analytical and bioanalytical chemistry, 407(13), 3627-3635.
Tusiimire, J., Wallace, J., Dufton, M., Parkinson, J., Clements, C. J., Young, L., ... & Watson,
D. G. (2015). An LCMS method for the assay of melittin in cosmetic formulations
containing bee venom. Analytical and bioanalytical chemistry, 407(13), 3627-3635.
Valikhani, A., & Goodarzi, M. A. (2017). Contingencies of self-worth and psychological
distress in Iranian patients seeking cosmetic surgery: Integrative self-knowledge as
mediator. Aesthetic plastic surgery, 41(4), 955-963.

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Watson, J. J., & Mansour, M. A. (2017). Cosmetic sclerotherapy. Journal of Vascular
Surgery: Venous and Lymphatic Disorders, 5(3), 437-445.
Watson, L., Dunn, D., & Fraser-Kirk, G. (2018). Indolent Rib Osteomyelitis Following
Breast Implant Reconstruction: An Unusual Case and Review of the
Literature. Aesthetic plastic surgery, 42(2), 447-450.