OSIM uMagic: Consumer Behaviour and Targeted Market Analysis

This report delves into the consumer behavior surrounding OSIM Company's uMagic product within the Singaporean market. It highlights the importance of understanding consumer behavior for business survival and the development of effective marketing strategies. The analysis includes a situational assessment using SWOT and PESTLE frameworks to understand the market dynamics in Singapore. The report identifies and segments the target market, focusing on 'comfort seekers,' and explores the consumer decision-making process, considering factors like psychological, social, cultural, personal, and economic influences. Ultimately, the report provides recommendations for adopting successful marketing strategies to enhance OSIM's competitive position in the market, emphasizing customer satisfaction and strategic market coverage.

Running Head: Consumer Behaviour for OSIM Company’s product
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OSIM
Consumer Behavior
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Executive Summary:
The purpose of this study is to find out the behaviour of consumer towards OSIM
Company’s product OSIM uMagic in the country of Singapore. It is very much important for
business, as because of this, it can easily survive in the marketplace. Therefore, companies
also make marketing strategy to serve this purpose.
Consumer Behaviour is the study of how a consumer comes to a decision for buying a
product by satisfying their needs and wants effectively. OSIM Company provides healthy
lifestyle products; product range is uInfinity Luxe, uInfinity, and uMagic and its product are
now at the maturity stage of the lifecycle. It has majorly two competitors in the market place
that is OGAWA and OTO Company.
PESTEL and SWOT Analysis is done to know about the market of Singapore. It is
important to select the target market for the product selected by the company to make correct
segmentation based on the similar characteristics of the population selected for this purpose.
In this, the target decision-making process is explained to show how consumer goes through
the decision of purchasing a product. Factors influencing consumer behaviour are such as
psychological, social, cultural, personal and economic. In the end, the recommendation is
given for adopting the marketing strategy to make more successful the company in the market
as compared to its competitors.

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Contents
Executive Summary:..................................................................................................................1
Introduction:...............................................................................................................................3
Situational Analysis:..................................................................................................................3
Influences of Targeted Consumers:...........................................................................................6
Target Market Decision Making Process:..................................................................................8
Recommendations for Marketing Strategy:...............................................................................9
Conclusion:..............................................................................................................................11

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Introduction:
OSIM Company name is derived from its founder’s name Mr Ron Sin. It offers
consumer products in the market. It tends to focus on the well-being of the customers, by
helping them to feel and to look good. It is a well-established brand launched in the year
1980. Firstly, it is known for providing electric and household items like a knife, mobile rods
for drying the clothes. It was set up with having the vision to give an amazing and healthy
lifestyle to consumers and its mission is to become a global leader in the industry (BRAND
OSIM, 2018). It is Asia’s number one company.
It takes care of advice, service, warranty, maintenance, and trade-in for the customers.
It markets distributes and sells its product successfully in North Asia, South Asia as well as
also at international level (Osim International facts, 2019). It makes products such as massage
chairs, neck & shoulder massagers, foot rollers and fitness equipment. It is involved in
wholesaler, retailer and distribution businesses. It also does manufacturing and selling of
luxury tea in the market. It gets the title of International Safety Standards because of health
and safety conditions maintained properly in the company. Its products are made from good
quality as it meets the quality standards benchmark (Inspiring Life, 2018).
Its brand is created by name” OSIM” in which “O” letter means the global and
remaining word is derived from the founder’s name. Its marketing strategy is linked with
creating a point-of-sales network and has geographical coverage in the market. Its outlets run
by the company and its subsidiaries mainly located in the countries Singapore, Hong Kong,
Malaysia, and Taiwan and also open various franchises in the market. It came into limelight
because of its massage chairs becoming famous in South-East Asia and China particularly. Its
product sold at more than 500 stores. Its founder becomes the 19th richest person in Singapore
when he becomes the CEO of the company. Here, the discussion is on consumer behaviour
and market analysis of the OSIM Company (Company Overview of Osim International Ltd.,
2019).
Situational Analysis:
SWOT Analysis: -

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It stands for strengths, weakness, opportunities, and threats, for evaluating the
competitive position of the company and used for planning strategically. It checks both
factors whether that is internal or external to a company and for evaluating the current and
future potential of an organization (SWOT Analysis: Discover New Opportunities, Manage
and Eliminate Risks, 2019).
Strengths
 Provides many products for maintaining a healthy lifestyle
 It is a popular and experienced brand
 It focuses on customer satisfaction
 It has a good range of network for selling in 30 countries
Weakness:
 Its products are expensive so it is not able to reachable to every class of people.
 Coverage of markets is low, as in case of competitors
Opportunities:
 Market share to be increased to cover the markets
 Development of low-cost goods so that lower segment can be attracted towards its
products and making goods reachable to each and every person
 Merger with gyms
 People are becoming health conscious as most companies provide harmful products
which lead to giving impact on health
Threats:
 Various alternatives exist in the market which may substitute its products in the future
 Competitors may reduce their market share
 Buying power of consumers increased
Pestle Analysis:
It is a form of analysis which is used to analyse the macro-environmental factors
impact on the organization. It stands for political, economic, social, technological,
environmental and legal factors which give impact on business operations.

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Source: (Scanning the Environment: PESTEL Analysis, 2016)
Political:
Political risk is low in Singapore. It is a democratic country, in which people are
allowed freely to choose their leaders. It enjoys political stability. Now, PAP party that is
People’s Action Party is running in the country which uses centralization of authority for
taking decisions. Therefore, business chances are increased and by this, the quality of life of
people in Singapore has improved.
It can be said that political factors are favourable for the company as global relations
is high and the government is stable which, put efforts for increasing the population in the
country. This, in turn, expands the market for the company through which sales can be
increased.
Economic:
Singapore’s economy is free- market economy and its GDP increased regularly. It
provides a competitive environment for doing business, but this labour cost is more.
It benefits the company as it is free from the evils of corruption and supports the
business. It is a tourist spot by which sales of the company increased.
Social:

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Singapore adopts different culture and traditions. Literacy level is high in the country
because of this; people learn various languages such as Chinese and English which in turn
helps in increasing trade for businesses.
It is suitable for the company as people do work without taking care of heath so, it can
provide health care products to them.
Technological:
By this factor, the country is moving towards advancement by adopting IT. It lowers
the cost of conducting business and also by this company is benefitted as it is easier to get
feedback from customers and to booking online.
Environmental:
Its environment is good for the business point of view, but it has a scarcity of water
resources. Water is very much essential for providing OSIM company’s products so it has to
bear the huge cost because of this, profit declines (PESTLE Analysis of Singapore, 2019).
Legal:
In Singapore, various laws are applicable to businesses. It impacts the business of the
company as it hires labour from outside but it has to hire local people as per the legality
principle. It is not suitable for the company as locals charge high rates as compared to others.
Influences of Targeted Consumers:
Potential target market chosen is of people who are working in Singapore and the
company’s product is OSIM uMagic. Working population is classified into two groups
mainly one is of comfort seekers means people who do purchase by seeking the comfort-
level and other one is opportunists’ means who purchase during the promotion of product, it
is done to identify correct market for the company (The segmentation,targeting and
positioning model, 2018).
Difference between opportunist and comfort seekers: Based on the age group, an
opportunist is 25-60 whereas in comfort- seekers are 30-60. Based on buying decision,
opportunist needed incentives for doing purchase while comfort seekers focus on high
product performance. Based on behaviour, the opportunist is concerned about the price

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charged by the company while comfort- seekers do not give importance to price but give
preference to comfort level.
So, target market segment selected is comfort-seekers for the company’s product,
based on the above discussion held. It is selected because they put more value to comfort and
not to price, and they select product only when after conducting proper research. When they
satisfied with the quality then becomes loyal to the company’s product (Sethna & Blythe,
2016).
Influencers of the target market are:
External Influence:
A. Culture: Singapore’s people follow and believe in cultures. Country’s GDP is growing
plus the income of society is also increasing due to this growth rate. People work for
longer hours in their jobs because of this they prefer lifestyle products which relieve
their mind and body to be active, so they adopt these kinds of products easily. They
see reviews of the product and conducts research before buying so not to buy an
unsuccessful product (Buil, Martinez, & Chernatony, 2013).
B. Demographics: Here, people put efforts in order to avoid risk in the products. They
become ready to buy when convinced enough about the information gathered. It is
required by people because they live in a hectic lifestyle. So, it is suitable to target
market.
C. Group Influences: It is done when purchaser seeks an opinion from family and friends
before purchasing any product and decision is taken on the basis of suggestions of
them. It is taken to get the best decision, regarding the similar type of products
available in the market. Therefore, decision-makers play an important role in selecting
the product, especially for the luxurious product, as they are expensive. It is the
important influencer of consumer behaviour, as buyer obtains information from
trusted ones (Nayeem, 2012).
Internal Influence:
A. Need, Motives and Desires: OSIM uMagic is a product which is mainly targeted on
luxury customers. It is come into esteem needs but attained only when basic, safety,
belongingness needs are satisfied well. It is a type of prestige symbol which is

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maintained for having a good status level in the society. It gives support to society by
offering massage chairs by which they relax, moreover, targeted on family members
and friends. Thus, it also comes in the category of psychological needs (Arenas-
Gaitan, Sanz- Altamira, & Rammirez- Correa, 2019)
B. Exposure: It is done by advertising successfully in various platforms such as in Social
Media and Television to attract the audience towards the product. It highlights
features of the product and to gather more information about the product, by removing
the perceptions of people towards the company’s product.
C. Interpretation: It is done by highlighting the functions of the product and tells how to
use the product so that, it can be easily purchased by consumers (Rani, 2014).
D. Attention: It gets attention by endorsing celebrities for the advertisement purpose.
E. Learning: Customers does learning for information about the product, in order to
select the product. They tend to find reasons for doing purchase, in order to purchase
the right product which satisfies their needs and wants successfully (Lantos, 2015)
F. Lifestyle: It is suitable for a person who enjoys the comfort of living and it is also
being given to family members for taking care of them.
Target Market Decision Making Process:
A. Need Recognition: It is the first and foremost step of the process; it is done for
identifying the needs of consumers who are selected in order to satisfy them. It takes
an important part in the decision making the process as, buying decision mainly
supported this. OSIM product satisfies the esteem needs of the consumer so; the
consumer has to satisfy the previous level needs related to basic, safety and friendship
before achieving this need. It is difficult to identify the needs of people as people have
a different type of needs (Maslow's Hierarchy of Needs, 2018).
B. Searching of Information: It is the second stage of the process, it is done after the
need is recognized of targeted customers. It is done by evaluating the positive and
negative aspects of the product. It is done because it is costly so searching of
information is relevant for taking a decision. In this, information is obtained from
various sources such as going to retailers for information gathering, take the
assistance of family & friends and from advertisement given by the company
(Marketing & Buyer Behaviour- the Decision-Making Process, 2018).

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C. Evaluation of alternatives: It is done to choose the best option out of various
alternatives available in the market. Major competitors of company OSIM are
OGAWA and OTO. In OSIM uMagic there are 7 levels, in OGAWA Smart Delight
Plus there are 5 levels, in OTO EL.VI Surf Chair there are 2 levels of massage is
done. Place where products are sold at OTIM is online and retail stores with no
distributors, OGAWA is at retail stores, OTO is at retail stores but with intermediaries
(Oto Elvi Massage Chair, 2014). Rating is done on the basis of different parameters.
Such as on performance, OSIM at 18, OGAWA at 16 and OTO at 12 points. On the
basis of price, OSIM at 12, OGAWA at 10 and OTO at 15 points, rated on the basis of
low price. Based on the warranty given, OSIM at 10, OGAWA at 15 and OTO at 5
points. Size of products in the companies is OSIM at 3, OGAWA at 3 and OTO at 5
points (OGAWA Smart Delight Plus, 2019).
D. Store selection and purchase decision: It is done to selecting a decision for purchase
made by the consumer; it is done after evaluating products of competitors in the
market. The consumer must give focus on, selecting the brand first then after, on
outlet because it is important to choose such a brand which is famous in the market
because trust is established in the market favourably and also attracts customers.
Though, its products are also selling online but, most buyers purchase from retailers
as to know more about the product before purchasing the product.
E. Post-Purchase Behaviour: In this analysis, various factors to be kept in mind to see
whether the decision-making process is made successfully or not after purchasing of
the product by the consumer. It is done because satisfied consumer became the asset
of the company as they repeat sales and become loyal to the company’s products. It is
a necessity to run these types of activities because it is a costly product and it is with a
motive to solve problems of consumers so to make further purchases in the brand.
The company runs product disposal facilities, in which exchange facility is
there, in this old massage chair is replaced with the new one by giving a discount for
purchasing a new one and also the old chair is moved by the company without
purchasing but with charging some amount for moving (Raghavan, 2010).
Its product is basically for those who purchase a product for giving someone
so, it will satisfy both the one who receives a gift and who gives a gift to another
person in order to become loyal. It also launches a membership card, for the regular
customers (Hamper, 2014)

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Recommendations for Marketing Strategy:
4 P’s of Marketing are the product, price, place, promotion, in order to understand the
marketing approach followed in the company. (The Marketing Mix, 2019).
a. Product: In magic, the technology used is of a new type that is V-grip which is not
adopted by other companies easily. In Smart Delight Plus, it adds therapy with the
massage, to give experience to customers, which are not adopted by generally in
companies.
b. Price: For both the companies, comfort level matters irrespective of the fact what is its
price. Opportunist and Comfort seekers look in a different way about the price of the
product because of their different level of thoughts.
c. Place: OSIM Company offers its products in both places whether in retail or in at
online but OGAWA Company provides its products to customers in retail stores only.
d. Promotion: For doing promotion of product both companies use television and social
media. But, it is expensive for companies because of using celebrities for conducting
advertisements (Understanding the Marketing Mix Concepts- 4 Ps, 2019).
Thus, marketing of the brand is done well as it becomes successful, in achieving its
mission to develop a habit of a healthy lifestyle in people. It has been done through the use of
innovative technology and by promoting its products in the market (Cheung & Lee, 2012).
Analysis of Marketing Strategy:
i. Perception: In perception, various things are included such as exposure, attention,
and interpretation. Exposure of more people has been seen in the advertisement of
OSIM as compared to its competitor OGAWA. It gains the attention of the target
market chosen (Singh, Pangarkar, & Heracleous, Business Strategy in Asia: A
Casebook, 2014)
ii. Psychological: It is done by highlighting the solutions of the problem, with the
using of this product like body ache problem is removed.
So, in short, it captures the attention of the target market because its advertisement
gathers more attention as compared to its rival company OGAWA (Kuswanto, 2019). It has
to pay a huge cost for the advertisement which is not good, but it can be successful in the
long-run. As, advertising benefit is seen after a long time so it is not considered as a cost but,

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as an investment in which return comes generally in the form of sales (Haider & Shakib,
2017).
Recommendations:
A. It earns a competitive advantage in the market due to their advertising efforts; by
these people buy products. In their new marketing strategy, endorsing two popular
celebrities for the advertisement purpose and increase their target market by putting
efforts on youth who work in Singapore to make them relax from the hectic schedule
running in their working environment (Singh & Delios, Strategy for Sucess in
Asia:Mastering Business in Asia, 2012).
B. It can also promote its products to Facebook so to capture the attention of more
consumers. It has been done to increase the level of communication as, people spent
more time in such sites so, and it becomes necessary for doing promotion.
C. It gives benefit to those consumers who are likely to be the purchase of a product, by
offering a trial of product freely to know how it works and from what purpose it is
helpful to them (Maslow, 2019).
D. It does customization in the product according to the needs of consumers.
E. It has to put efforts, to make the price of goods reasonable so that lower segment can
also purchase it.
F. It also finds new customers in a way as it is done by its competitors.
Conclusion:
To sum, it can be concluded that consumer behaviour is a necessity for knowing the
consumers well in order to present goods in a way that is wanted by them in order to satisfy
their needs and wants successfully. OSIM Company’s target market is identified and then out
of this, segmentation is done to cater market successfully. Its product uMagic, uses V-grip
technology to increase the comfort level of people in massage chairs and this type of
technology is not adopted by its competitors so, it will give benefit to the company. For the
promotion of this product, advertisement is done to attract the consumers in the market, but it
is a costly affair for the company. Therefore, a recommendation is given for improving the
marketing strategy of the business and also by the adoption of this profit of the company will
increase.

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