YueSai Marketing Plan
YueSaiwasacquired by Coty, a cosmetic firm that is based in New York and isthe largest fragrance producer in the world. In 1998, YueSai wasrightly positioned as China’s No. 1 luxury cosmetic brand. However,the company focused their attention on their brand, Lancaster anddrew more attention on distribution rather than the brand and thisconsequently lead to lost sales. YueSai was later acquired by Lorealin 2004 in a bid to establish a Chinese brand along its portfolio ofbrands.Loreal seemed to have got its branding strategy for YueSaiwrong again. AsLoreal was pushing YueSai as a foreign brand to theChinese market and this did not turn out well as Chinese hadexperienced a renaissance and there was a quest for more domesticproducts.
Iwould recommend a value based positioning such as the one adopted byAupres, a Shiseido brand that was launched in 1994. The Chinesemarket has proved to be dynamic and the constant push for YueSaibrand as luxury product will not be successful regardless of the typeof media utilized. In my opinion, YueSai should stay true its image,that is a Chinese cosmetic company with a strength in makeup and afew skincare products. The Chinese market has experienced a rebirthand the Chinese people are more conscious of the type of productsthey purchase. There seems to be a strong incline towards traditionalbased Chinese products as opposed to foreign based products tailoredfor the Chinese market.
Thereare some pros and cons with the lifestyle position when compared tothe concrete position. The pros include the fact that Loreal, will beable to charge a premium price for its lifestyle image and therefore,this should translate to more revenue and profits. A lifestyleposition would mean that there would be more publicity and awarenessfor the product as more money will be pumped into marketing theproduct through all possible avenues. On the other hand, the consinclude the fact that the Chinese market and has changed over theyears and that an aggressive marketing campaign should not translateto more revenues and profits. In addition, the lifestyle positioningplaces the product as a foreign based cosmetic product which is notappealing to a rebirthed Chinese population.
Sincethe proposed positioning for YueSai should be one that is based onvalue. The target market should be ordinary Chinese men and women whohave yet to adapt the use of makeup and skin care products. Forinstance, there is an untapped market of male adults who more open toskin care products. In addition, YueSai should also go for youngadults between the ages of 20 and 30 years who are also more willingto try new products.
YueSaishould be an independent product and should forfeit their associationwith the Loreal brand. This is because Loreal seems to be morefocused on selling mass units of YueSai products without properlyunderstanding the demands of the Chinese market. YueSai shouldcompletely dissociate with Loreal and build up their new brand infavor of the traditional Chinese market.
Citingfrom our proposed positioning strategy, YueSai should demonstratevalue to the Chinese consumers and therefore its price should beindicative of value, so that the Chinese feel they have acquired whatthey paid for. YueSai should focus on promoting its products throughsocial media such as Weibo in order to appeal to a young generationof consumers who spent most of time on the internet. In addition,more than half a billion people have access to the internet and it isrelatively cheaper than mass media. They need to focus on thefoundations of strong makeup presence and a few skin care productsfocused on the young male market. Finally, the store should have itsown departmental stores and also other stores to cater for the tier 1and tier 2 markets. The company should have relations with the storesowners so that its value products can be properly placed on storesshelves.