Yue Sai

1108 Words3 Pages

Question 1
a) Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
b) Three issues that may arise from differences in Western and Eastern marketing are: cultural, aesthetics, and media platforms. Culturally, Eastern views on cosmeti...

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... large retail cities for prestige of having a store in the area, such as downtown Manhattan.
d) In accordance with positioning Yue Sai for the modern Chinese woman, Yue Sai should promote its cosmetics lines on the various social media sites, for example Weibo. Promoting on Weibo would give better exposure to young women who represent the average consumer of cosmetics. Also, it would be in the best interest of Yue Sai to continue its recent partnership with Du Juan. Du Juan representing the face of the new Yue Sai embodies the positioning strategy targeting the modern Chinese woman. Yue Sai should also promote the Vital Essential line as well as incorporating more traditional Chinese medicine into their campaign. The Vital essential line seems to be the only bright spot in Yue Sai’s repertoire and holds the possibility in helping Yue Sai become more profitable.

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