This report examines the company Ghislaine which is currently undergoing a crucial problem regarding its liquidity, thereby calling for the implementation of new strategies to address this issue. Also discussed are the marketing and distribution strategies of Ghislaine perfumes. We are uncertain whether or not the company should stick to its current policy - selling products in exclusive outlets - or to sell products via other stores. The question that has to be analyzed is: Is the company's current policy profitable? This report will analyze the advantages and disadvantages of this policy.
On one hand, the exclusive outlet sale strategy can be perceived as very efficient from the communications point of view as it imparts a luxury and exclusive image to our products. This is due to the rarity of our perfumes, which are only sold in our Ghislaine stores. This policy has influenced the reputation and permits us to charge prices up to 25% higher than our competitors. The communications manager opines that any change to our policy would ruin this image and damage our market. This policy has been retained in the US market (our biggest market). Understandably, the management is wary of altering this strategy which has so far been beneficial to the company.
Tags: Business strategy of Ghislaine,Luxury brand strategy
[...] The second problem is that we have only one shop in big cities and no one in some famous one. In this way, we loose profits. Indeed there are much lower than in perfumeries selling a selection of different makes. Moreover our Lawyer has said that this policy of supplying only our own perfumeries was simply unlawful in many markets. It also went against all the principles of free trade. To conclude, our President has decided to change this policy even if he preferred the present one. [...]
[...] Repurchase=rachat Debate What do you think about the market of luxury perfumes? Are you for or against the policy to sell only our products in our shops? Why? Do you think that selling our luxury products in classic perfumeries would damage their prestige image? General conclusion We can say that a policy change is necessary in order to improve our cash, because with the present one, we loose profits. Indeed we have only one shop in each big cities all over the world and none in some famous cities like Santa Barbara, San Diego in the USA. [...]
[...] Guillaume: That is also not negligible and will permit to improve cash. Mehmet: For me, it is essential to apply changes. Indeed, the present policy of supplying only our own perfumeries is simply unlawful in many markets. It goes against all the principles of free trade. As yet, nobody has taken us to court, but this could happen. This is so a big risk to continue this policy. It would be much safer to reverse this policy completely. Xav: Everybody has expressed his opinion. [...]
[...] We can begin with you, Guillaume. Guillaume: I think that we must change this policy. It is a catastrophe, because we only increase sales if we add products to the range and increases turnover, but not profits. I have studied the German market and I have concluded that all our exclusive perfumeries should be allowed to sell any make of upmarket perfume. Moreover any perfumery anywhere should be allowed to sell the complete Ghislaine range. Amélie: I don't agree with. [...]
[...] (Which cities? Why these cities? ) Group 3 You are in a meeting to discuss about new mean of distribution of the Ghislaine perfumes. Many persons are for the distribution in big quantity of the luxury Ghislaine products and the other persons are against. Imagine the scene. Supermarkets Rarity Hairdressing salons Prestige image Beauty parlours Group 4 You are in a meeting to discuss about the repurchase by Ghislaine of a perfumery, which sell only products made in big quantity. [...]
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