Porter's 5 Forces analysis of Lorã©Al In China: Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Analysis

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Porter's 5 Forces analysis of Lorã©Al In China: Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Study Help

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Lorã©Al In China: Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Solution could be conducted to develop numerous techniques utilizing the strengths of the business to get opportunities, get rid of weak points and to lower the risks. It could also be used to assess that how specific weak points resist certain opportunities and increase the hazards. The methods prepared using the Porter's 5 Forces analysis of Lorã©Al In China: Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Analysis are offered as follows;
• Utilization of strong worldwide brand position and funds in broadening towards possible markets.
• Distinct brand name experience might help out the business to better position itself in new markets.
• Resistance in expansion in the prospective international markets encouraging variety.
• High prices restricts the growth in numerous Asian and African countries with low per capita income.
• Strong brand name acknowledgment, non-traditional ways of marketing and the special brand experience might be made use of to minimize the danger from possible consumers.
• Strict appearance policies might led to the customer shift towards Victoria with high social responsibility.
• Minimal target markets could resulted in a decrease in the overall market share of the company.
These strategies might assist the company to improvise its market position and be at the leading position in the market.

Financial Analysis


Financial analysis for Porter's 5 Forces analysis of Lorã©Al In China: Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Analysis might be performed to evaluate the availability of financial resources to the company that could be utilized in growth towards international markets. The financial position of the company might be assessed by using the information given up the case Exhibition 1. The ratios that might be thought about in financial efficiency analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the company has a reasonable financial performance with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net profit margin does not appears to be prospective and the company must put efforts in increasing its profits along with decreasing its operational costs to increase its revenue margins.

Porter's 5 Forces analysis of Lorã©Al In China: Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Help

Segmentation

The segmentation analysis includes the analysis of numerous service sections of the company in domestic and the international, markets. The majority of the company's Traditional shops are located in US consisting of above 500 shops in almost each of the state of United States. However, the business has also an international existence in 8 various countries with its highest number of shops located in UK i.e. 21. The companyhas a total of 54 stores in global markets that is most likely the 10% of its stores in the United States. It suggests that bulk of the profits of the business originated from the local markets. The business is thinking about to broaden its shops into 7 more European and Asian countries. A chart showing the presence of the company in numerous international markets is given up the Appendix 2.

Targeting


The business targets its clothes brand name to the young, high and good-looking teenagers and kids that are thought about to be cool. This targeting policy is responsible for different differences in the business connected to its rivals. For instance, the company employs good looking men and women for its stores and follows a rigorous appearance policy to maintain destination of attractive people towards its shops and supply a distinct brand experience.

Positioning


The company has placed its brand name as a high-end brand name targeting only a particular market sector. The business with its non-traditional methods of marketing through designs and agents posters its brand name image as a high-end clothes brand name targeted to the cool and attractive personalities in society. Although, this market position brings in different elite people towards the brand but it hurts the business's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Lorã©Al In China: Marketing Strategies For Turning Around Chinese Luxury Cosmetic Brand Yue Sai Case Solution faces a lot of competitors in the market with the existence of numerous number of rivals in the market. Gap is also considered to be a prospective rival in regional as well as in worldwide; markets as the business is thinking about to shift in the worldwide markets.



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