Case Analysis Of Quoe Sai

When marketing their brand Yue Sai should keep in mind that China is not one single unified market, but is actually divided into many individual sub markets. The tastes of people are different according to the regions they live in. Yue Sai must acknowledge these regional differences in order to cater to all the markets. The more remote, smaller regions that have less access to beauty brands could be a huge potential market for Yue Sai to capitalize on. The second and third tier cities are growing at a faster rate than the overall growth in China and are predicted to continue this positive growth in the future (Koehler, 2013).

This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges.

L’Oreal, the French cosmetic giant has become one of the leading players in the salon products sector in India. It marks its presence with a portfolio of 15 brands that grew over the span of nearly two decades in the Indian market, having an annual growth rate of 30 percent with a market share of 10 percent in the urban area. These different brands were launched in order to cover various product categories. “The mass consumer brands L’Oreal Paris, Garnier and Maybelline New York; luxury brands Yves Saint Laurent, Kiehl’s, Ralph Lauren, Giorgio Armani, Diesel and Lancôme; professional brands L’Oréal Professionnel, Matrix, Kérastase and Kéraskin Esthetics and pharmacy brands Vichy and La

For sales from 2001 to 2002, we are projecting a 13% increase because we want to base the same revenue growth as the previous fiscal year. It will take some time for the company to do better like

-Good news is that the sales growth doesn’t need to be enormous (4-6%) to make profit. Indeed the profits of 1999 and 2001 were lower because of restructuring costs (1999) and exceptional costs (2001). This means that the company looked well managed.

They expect to see increased profits from our market shift efforts by the end of Year 2. Over the next three years they expect lower profits and make inroads into this tough market. We estimate that they will be able to reduce marginal costs and increase overall profitability by Year 3 or Year 4 as we grow and take advantages of economies of scale

Another item to correct is the Production costs and expenses, currently running at 50% of the revenue. The management has expressed concerns with outdated packaging equipment and the use of the more expensive second and third shift to catch up with production. An investment here would probably turn profitable in the context of healthy sale numbers.

Since the year 2005, the average growth rate has been -3.15% over the past four years. Based on the financial data sheet, I do not believe that the company will be able to reach a 10% sales goal and 2009.

Revenues are projected to increase by 6% in year two, 5% in year three, and 4% in years four and five. (sec. 8.2) Barriers to this projected growth may include but are not limited to: cost mismanagement, failures in marketing strategy, and failure to meet sales projections. Collection of cash following sales is immediate. Credit receipts are typically collected in a weekly batch.

In terms of firm objectives, the sale volume is expected to increase when launching Ego Skin Cream in China because dry skin is very common in China. The research conducted with 1800 Chinese women from 5 cities showed that dry skin is a very common complaint which can be found in 30.8% of the Chinese women (Li et al., 2005). This research further discovered that two factors are related to dry skin. One is the climate; there are more dry skin cases in northern Chinese

This is the forecast for the next five years. As you can see the financial operating income is only 10% for your 2007 compared to the income in 2011. Therefore there is a 10% rise as per Wagner’s report. Jackson also expressed her concerns with the $2,000 retail price point and pushed Vyas to clearly identify the risks associated with the plan. After further consideration, the team developed a risk assessment and response matrix, which they included in the business plan. Therefore in case the product fails a third time there could be a drop in operating income.

The company’s customer focus in the groups of people who out of work, as they are high spending power, so they more willing to buy cosmetics and spending more money in cosmetics. Moreover, ageing population in Hong Kong is an opportunities for the enterprise selling the beauty and skincare products because the customers want the youth appearance, so they willing to buy the beauty and skincare products. In addition, Hong Kong people more concern their health, since their Health-related awareness is increasing. According to Sun Life Asia Health Index 2015, it found that 59% of Hong Kong people who thought healthy was very important to them (Sun Life Hong Kong, 2015). Currently, Bonjour have selling the health supplement products, since they think healthy more important to them, so they notice more in health

Loyal customers provide repeat business and less likely to shop around for a better deal (John & Shiang, 2001). Building customer loyalty is helping companies to sustain their business volume and profitability. Reichheld and Sasser (1990) stated that profit can be increased 125% by just retained 5% of its customers. It is due to reduced from marketing costs, reduced operational costs and increased sales. Loyal customers will also help to promote a company's brand. The value proposition of Sin Yoon Loong is Customer Intimacy, which provides service to get closer to the customer in order to strengthen customer loyalty (Yim, Tse & Chan,

In terms of promotion and advertising, L’Oreal should change the “star product” approach and instead focus on the whole product line or perhaps a set of products for a given target segment. In this way, L’Oreal can inform its customers on its products which should also help them in choosing the right product for themselves. L’Oreal should also focus on building the brand Plenitude since this is something that customers are not aware of. They

According to recent study, the sales for men’s skincare products have a significant increased in year 2016. Men havebecome one of the biggest segment or driver in the skincare industry around the world. Men are starting to care and aware of their appearance as they are getting more knowledgeable and get educated about the importance of take care and protection of their skin. A lot of retailer or store in the market begins to bring in and market men’s skincare products due to the rise of demand. Skincare products for men are