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Problem Identification: Shanghai Jahwa Corporation needed to decide if they should enter or not into the shower cream market in China where they would probably end up clashing with entrenched competitors (multinationals). Also, if they decided to enter this market, they needed to make a decision about the brand name behind this new product (Would it be a product extension of one of its best performing brands (Liushen) or a new brand?).

Alternatives

Enter the shower cream market with the Liushen Brand
+ Personal care market was growing at a 35% rate average between 1985 & 1990 and it was expected to grow from RMB 6 millions to RMB 30 Millions by year 2000.
+ As economic theories sustain, China’s GDP growth could let us infer that the population is improving its personal income. This would mean that the consumers will tend to be more sophisticated and that they would have more disposable money available to buy other products (including personal care products).
+ Extensive......

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Approximate Word Count: 926
Approximate Pages: 4 (250 words per double-spaced page)

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