Recommendations of Lorã©Al In China Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Analysis

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Recommendations of Lorã©Al In China Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of various alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any reduction in its regional incomes and any degeneration of its market position. The company might pursue alternative 1 which would allow the business to focus on prospective international markets rather than the regional markets but as the company is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Lorã©Al In China Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Analysis Stores

The business has a long term market position in United States which can not be created quickly in the brand-new markets. The choice would help the company to expand in international markets along with the elimination of concerns raised in its regional markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Increase in profits from worldwide markets.
• Elimination of problems connected to variety.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Lorã©Al In China Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through producing a proper company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a serious threat to the marketplace share of business. The competitors are shifting towards click and Recommendations of Lorã©Al In China Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Analysis shops with Space presenting Piperline. This shift towards online markets might lower the revenues for business. In this situation the company could consider presenting Click and Recommendations of Lorã©Al In China Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Help shops. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand Uniqueness
• Elimination of the great shop experience.
• Danger of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the company could consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of revenues of the company. The advantages and disadvantages associated with Alternative 3 are offered listed below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Expedition of new global markets.
• Boost in profits from global markets.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to gain market share.



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