Lancôme Marketing Plan Essay

I. Executive summary: Lancà ´me is preparing to launch a new anti-aging cream concluding the perfect result of 10 years exploring in lab and be recommended as â€Å"A miracle elixir exists†, the Absolue L’Extrait, in Vietnam cosmetic market. Our product offers a competitively unique combination of the latest advanced technology in dermal stem cells and great beauty effects after testing and launching in other countries. We are targeting specific segments in the consumer and taking advantages of opportunities indicated by the huge demand for beauty in such a dynamic economic. The primary marketing objective is to achieve first-year Vietnam sales of 10,000 units. The primary financial objectives are to achieve first-year sales revenues of $3.5 million and break even early in the second year. II. Current market situation: Lancà ´me is founded in 1935 by Armand Petitjean in France. From the beginning till now, Lancà ´me has brought beauty for women in 160 countries worldwide through 28.000 retailers and stores all over the world. After gaining a large amount of market shares in European market and become a market leader, Lancà ´me turns the target into Asia, and Vietnam in special. Penetrating in Vietnam in 2006 through the only retailer channel- Parkson, Lancà ´me has gained a certain amount of market share and has occupied a strong position in the eye of the upper- class. However, we also have to compete with some strong brand names in cosmetic about pricing and gaining customer’s loyalty such as Clinique which is the pioneer in dermatologist-developed cosmetic brand. Exploring that most of Vietnamese women (about 75%) care much more about skincare than makeup, the newest product which is in the expansion of the premium ABSOLUE line – Lancà ´me’s Absolue L’extrait, will be about to launch into Vietnam market and possess a strong advantage to differentiate from other competitors. 1. Market description: Method: Concentrated marketing Absolue L’Extrait is a new- launched and luxury product, therefore concentrated marketing help the company gain a strong market position. Table 1: Segment Needs and Corresponding Features/Benefits of L’Extrait Cream Target Market| Customer need| Corresponding feature/ benefit| Upper- class women| A cream can slow down and push back the aging process.A therapy can bring them back to the confident and youth like they were before.| Rose stem cells extracted from the Lancà ´me Rose are claimed to be capable of â€Å"stimulating human dermal stem cells†. The formula will also contain Proxylane, a proprietary anti-aging active ingredient of L’Orà ©al.| 2. Product Review: Absolue L’extrait is the latest anti-aging cream of Lancà ´me as well as the first product to feature a high concentration of a kind of native cells-rose stem cell. Rose stem cells is said to be extracted from the Lancà ´me Rose- a species specifically created for Lancà ´me in 1973 and resisting various environmental aggressions (cold, insects†¦). It is claimed to be capable of â€Å"stimulating human dermal stem cells†. Each 50 ml jar of formula is claimed to contain â€Å"2 million rose stem cells†. Apart from the rose stem cells, the formula will also contain Proxylane, a proprietary anti-aging active ingredient of L’Orà ©al. The jar is sold with a massage tool – the â€Å"massage petal applicator† – developed with the Lancà ´me Institute. It is claimed to alternate hot and cold effects for stimulating the skin to invigorate it, activating microcirculation and promoting a better penetration of the formula’s active i ngredients. As a global anti-aging formula, it is claimed to have a significant efficiency on the â€Å"seven major signs of aging† said by Lancà ´me to be: – Forehead wrinkles – Frown lines – Crows’ feet – Under-eye wrinkles – Nasolabial fold – Wrinkles around the mouth – Facial slackening *The testing and trial process: The formula has been tested on 42 women, half of them having sensitive skin. Results were observed after 11 weeks. This is quite unusual, since most of skincare products are tested on a 4 week basis. This is a trick to obtain better results to claim – the longer you use a product, the better are the results. Since its creation, Absolue has always extended the limits of science and creativity to incarnate a quintessential and aristocratic femininity; one that is full of grace, sophistication and elegance. More than luxury, this is an inspiring philosophy for the most demanding women in the world. 3. Competitive Review: Recently, because Vietnam’s economic has a great development and living standard is gradually increasing, the needs to be beauty and health caring are rising rapidly. Because of the working pressure and environment pollution, women nowadays have wrinkle faster and faster. With these reasons, the anti-aging cosmetic market is really potential. Key competitors include the following: * Cle De Peau: A Japanese brand which was only established for the last 30 years. + Product: having knowledge about the Neuro Skin Theory: â€Å"Skin has a brain of its own† and the discovery of the leukemia network of the skin, it can be said that Cle De Peau anti-aging products are the most effective and best-seller anti-aging product in Vietnam at the moment. + Strong: ââ€"  Potential to be the most understanding Vietnamese’s skin (a Asia brand) ââ€"  A clean operation history ââ€"  High customer loyalty ââ€"  Advanced technology + Weakness: ââ€"  The most expensive product ââ€"  Small distribution channel * Està ©e Lauder: This America brand entered Vietnam only for 7 years (since summer 2005) but it already has a stable position in the cosmetic market with a convenient distribution channel (2 stores in Hanoi and other 4 in Ho Chi Minh City). + Product: applied the exclusive DNA technology, the anti-aging serial of Està ©e Lauder have a superior position which gains over 70 global awards and over 20 global certificates. + Strong: ââ€"  Està ©e Lauder is a company with bright and long history which creates a trustful strong famous global brand. ââ€"  The advantage of continuously improving technology ââ€"  Reputation products ââ€"  Convenient store in beauty places ââ€"  Wonderful employees and services + Weakness: ââ€"  Scandal of models representing as the face of Està ©e Lauder (Carolyn Murphy, etc.) ââ€"  Be doubted of using child-labors ââ€"  The CEO is doubted of poor executive ability which leads to the impaired of this brand. * Clinique: A brand developed by dermatologists of Està ©e Lauder Company but unlike Està ©e Lauder, Clinique already appeared in Vietnam from 2001 and having a larger distribution channel (9 official stores in the 3 biggest cities of Vietnam: Hanoi, Haiphong, Ho Chi Minh City) + Product: Clinique products can be suitable for every skin’s kind with its natural origins cosmetics. + Strong: ââ€"  Reputation brand in over 130 countries ââ€"  Developed by dermatologists ââ€"  Being a professional in online business, which even has a tracking and advising system for customers ââ€"  All products have been Allergy Tested and 100% Fragrance Free. ââ€"  The first one who approached Vietnamese customers ââ€"  Reasonable price ââ€"  Large distribution channel + Weakness: ââ€"  Average skin care product quality * Kanebo: Officially appeared in Vietnam in 2003 through Exclusive Distributors – Trade Co., Ltd. L & K. This Japanese brand already has 9 official showrooms in Vietnam (2 in Hanoi, 1 in Haiphong and other 3 in Ho Chi Minh City). + Product: According to Kanebo theory of the structure of skin, the â€Å"Adhesive Technology† is the way to have an excellence skin. + Strong: ââ€"  Over 110 years history brand which already presented in 51 countries. ââ€"  Finding out â€Å"Rhodomyrtus Tomentosa† essences which have oxidation activity that help rebuild DNA ââ€"  Large distribution channel + Weakness: ââ€"  Accounts scandal ââ€"  Still be a quite small brand in global market * â€Å"Hang xach tay†: Not really a specific brand, â€Å"Hang xach tay† is a new trend in commodity trading in Vietnam nowadays. â€Å"Hang xach tay† operations base on the products which flight attendants or pilots or even shop owners’ acquaintances brought back after each time they went abroad. + Product: Diversified brand names, products, origins and quality. In Hanoi, â€Å"Hang xach tay† has a venue at the â€Å"Aviation Street† (Nguyá »â€¦n SÆ ¡n St.) + Strong: ââ€"  Having stores in every cities and provinces of Vietnam ââ€"  Having many online retailers ââ€"  Lower price than official distributors of brands because the shop owners do not have to pay the tariffs and other non-tariff fees. + Weakness: ââ€"  Unclear origin (can be fake) ââ€"  A large amount of â€Å"Hang xach tay† is almost out-of-date or old fashion products. Despite this strong competition, Lancà ´me can carve out a definite image and gain recognition among the targeted segments. Lancà ´me’s Absolue L’Extrait is considered as a magical product which is produced by the most advanced and unique technology in the world nowadays. It is a breakthrough after 10 years searching and developing from Lancà ´me, a famous reputation brand. Thus, Lancà ´me’s Absolue L’Extrait will have an absolute competitive advantage among other products. The most potential competitor of Lancà ´me’s Absolue L’Extrait in Vietnamese anti-aging market is Cle De Peau. However, Cle De Peau’s La Cream U still has some weak side such as it is the most expensive cosmetic product in Vietnam market. Moreover, unlike Lancà ´me’s Absolue L’Extrait, even you have already used La Cream U for night care, you still need other lotion for day care for the best result. In short, Lancà ´me’s Absolue L’Extrait has the newest advance technology in cosmetic industry, more suitable price and gives better result. 4. Channel and Logistics Review: Because Lancà ´me has entered Vietnam for 6 years, the distribution channel is still quite small. 5. Retailer stores: Lancà ´me has been opened 6 stores (in which four stores in HCM city and two stores in Hanoi) at Parkson (the retail arm of The Lion Group): + Parkson Saigon Tourist Plaza – 35Bis-45, Là ª Thà ¡nh Tà ´ng St., Bá º ¿n Nghà ©, District 1, HCMC. + Parkson Hung Vuong Plaza – 126 Hung Vuong St., District 5, HCMC. + Parkson Paragon – 3 Nguyá »â€¦n LÆ °Ã† ¡ng Bá º ±ng St., Tà ¢n Phà º, District 7, HCMC. + Parkson Flemington – 184 Là ª Ä Ã¡ º ¡i Hà  nh St. , District 11, HCMC. + Parkson Viet Tower – 198 Tà ¢y SÆ ¡n St., Trung Liá »â€¡t, Ä Ã¡ »â€˜ng Ä a District, Hanoi. + Parkson Landmark – 72- Keangnam Tower, E6, Cá º §u Giá º ¥y new urban areas, Má »â€¦ Trà ¬, Tá » « Lià ªm, Hanoi III. Strengths, Weaknesses, Opportunities and Threat Analysis 1. Strengths: 2.1. Exclusive biotechnology process: Lancà ´me has now succeeded in cultivating stem cells from this rose, which can be multiplied infinitely by a biotechnological procedure called Fermogenesis, which provides each stem cell with a gentle growth environment, which preserves its own metabolic rate and all its regenerative potential. 2.2. Unique and precious components: The key component is a new active ingredient – Lancà ´me Rose stem cells – obtained through an exclusive biotechnological process. These rose cells are claimed to be capable of stimulating human dermal stem cells, which are found in the deepest layers of the skin, and play an essential role in the renewal of the fundamental layers of the dermis. In addition, the anti-ageing formula is delivered within a pearly pink cream-elixir, which changes its texture on application to melt into the skin. It is scented with notes of rose, bergamot, pink peppercorns, jasmine, freesia, woods and musk. 2.3. Extra â€Å"message petal† applicator: In addition to a superior anti-aging cream, there is a message petal applicator to motivate its benefits. Specially designed for a dual ritual, it features a black warm side to pick up and apply the elixir, and a golden cord side for smoothing and massaging the product in to skin. 2.4. Good distribution channels: From the successes in the first store in Ho Chi Minh City, up to now, Lancà ´me has been opened 6 stores (four stores in HCM city and two stores in Ha Noi) and have intended to open new store in Hai Phong. The market share in 2009 increased 3 times than 2 years ago. Lancà ´me store are located on well-known shopping centers such as Parkson, which are highly attractive and convenient for knowing and buying product. This factor is one of the most important factors that have assisted them to maintain their high market share in premium cosmetic market. 2. Weakness: 3.5. Small-scale targeted segment: Target only on Adults but not for Youngsters. Like some other products, Lancà ´me’s Absolue L’Extrait has target segment only of adults who have high standard not for youngsters who are the majority of Vietnam population 3.6. Pricing: The product is charged with the higher price in comparison with others in the same product line of our competitors. It is a result of unique and valued features of the product. 3. Opportunities: 4.7. Open market: The economy of Vietnam is growing rapidly and living standard of Vietnamese is improved very much. As a result, Vietnamese women will care more about their health as well as their beauty. They will spend more for skin-care products. It is an open market for Lancà ´me to develop their luxurious products. 4.8. Increasing targeted customers: The targeted customer of Lancà ´me is the upper class. As a result of development in economy and globalization, there are more and more the rich, who are willing to pay much for luxurious line of product, in Vietnam. 4.9. The development of distribution channel: * Parkson, the main distribution channel of Lancà ´me in Vietnam, is developing and becoming more and more popular here. It once succeeded in helping Lancà ´me increase their market share in some Asian countries, especially in China, where has some similarities in economy and society with Vietnam. * The development of the Internet makes it easier for customers to access to Lancà ´me’s website and find information about products. They also can buy products they want through the Internet conveniently and fast. 4. Threats: 5.10. Increasing competitors: More corporations with famous brands are entering Vietnam market with high-quality cosmetics that offer some but not all of benefits provided by Lancà ´me. Some of them have lower price in comparison with Lancà ´me’s Absolue L’Extrait. Beside these official competitive companies, the product also has to cope with another kind of competitor called â€Å"hang xach tay†, which provides cosmetic products from abroad with cheaper price and is very popular in Vietnam nowadays. 5.11. Effects of global economic crisis on Vietnam economy: The crisis on global economy has certain impacts on Vietnam. One of them is effects on people’s spending habit. Due to pressure on difficulties in economy, customers will buy fewer goods and they only buy necessary goods. As a result, luxury goods like Absolue L’extrait will not attract many people, even the rich. That will be a resistance to Lancà ´me’s revenue. IV. Market-Product Focus: This section describes the three- year marketing and product objectives for Lancà ´me’s Absolue L’Extrait Cream. It includes a description of our target markets and our product differentiation strategies. 1. Marketing and Product Objectives * Non-financial Objectives * Launch product by July 2012 – with distribution primarily in Parkson department. * Gain a 10% market share among existing anti- aging products. * Sell a minimum of 10,000 units in the first year, with at least 25% increase in sales in the next 2 consecutive years. * Financial Objectives * Generate at least $3.5 million in revenue during the first year. *Increase profit growth by at least 10% per year for the next 3 years. 2. Target Market For our product, we focus on targeting the end users, as these consumers make the decision to purchase. Our target market is professional women over the age of 30. These women are concerned with the signs of aging and trust Lancà ´me, as they believe Lancà ´me is devoted to quality skincare products. These professionals earn upper income and live in urban areas. They are buyers of fashionable clothing, premium products and shop in upscale department stores. 3. Product differentiation Product differentiation is the significant other half of product positioning: the two must work together to achieve success. Many manufacturers offer creams that are designed to reduce the sign of aging around the face. Thus, it is detrimental to the success of a product that it carries addition benefits and features that make it more attractive to the consumers than the industry alternatives. Absolue L’Extrait differentiates its self from its competitors through the advantages listed below: * Unique formula with our most powerful regenerating ingredient, Lancà ´me Rose Native Cells. * Well-research through 10 years. * Strong brand equity. * Easy to obtain through upscale department stores where our target customers usually go shopping. * Backing from strong parent company, L’Oreal Companies, Inc. V. Marketing Strategy: 1. Product Strategy: Our product strategy for Lancà ´me’s Absolue L’Extrait Cream is â€Å"Product differentiation†. Products designed by our competitors to reduce the signs of aging have over and over proved to be ineffective. With Lancà ´me’s Absolue L’Extrait Cream, we will change this notion. Women can experience Lancà ´me’s revolutionary skincare innovation and our most powerful regenerating ingredient, Lancà ´me Rose Native Cells. As described in the earlier Product Preview section, our star ingredient, Rose Stem Cells, is claimed to be capable of â€Å"stimulating human dermal stem cells†. The natural regenerating potential of plant stem cells and the self-renewal of the skin’s own dermal skin cells provide a double boost deep in the skin’s makeup, resulting in a smoother, more radiant and more youthful appearance. 2. Pricing Strategy: â€Å"Lancà ´me’s Absolue L’Extrait Cream is considered the most advanced product; it brings efficiency proportional to its value†, according to Youcef Nabi, president of Lancà ´me company. The suggested retail price for this product will be $385, the price that is slightly higher than our major competitors. The perceived benefits of our product are high with respect to the price, therefore Lancà ´me is taking on a value- pricing strategy. Figure 1 Price/Value Map for the Lancà ´me’s Absolue L’Extrait Cream As shown in Figure 1, our product is in the Fair Value Zone at the Premium point. We can use this value-pricing strategy based on certain conditions. First, the superior quality of our product and our brand, Lancà ´me, will support the higher price that our loyal customers will trust and buy this product. Second, our target customer, upper-class women, will care about the value rather than the cost of the product they purchase. Finally, competitors cannot be able to enter the market because of our unique formula in the cream, therefore they cannot undercut our price. By using this strategy, we believe we will be able to gain a considerable amount of market share. 3. Distribution Strategy: L’oreal Vietnam company is the main distributor of Lancà ´me in Vietnam. Our channel strategy is to use exclusive distribution, which enhances Lancà ´me’s image and allows higher markup. We focus on marketing the cream through our chain of Lancà ´me stores in Parkson department stores. Parkson has eight modern and successful department stores, 4 in Ho Chi Minh City, 2 in Hanoi, which are big cities of Vietnam with large proportion of high income people. Moreover, it is obvious that most of Vietnamese citizens perceive Parkson as a special location for shopping luxury, expensive and high quality goods, creating advantage for Lancà ´me to build strong brand in Vietnam and reach our target customers – upper class women.On the other hand, it is unfortunate that our company has not yet established Vietnamese official Lancà ´me website so we can’t serve customers direct purchase. 4. Marketing Communication Strategy: Our company will follow the concept of integrated marketing communications-blending the promotion tools into a coordinated promotion mix. 5.1. Advertising: Instead of using means like television or radio, we choose Magazine and LCD advertising as the main media vehicles. Regarding using magazine, the objective of our company is to take advantage of well-known, expensive magazines about beauty, whose readers are women aged average 27 years old. According to the recent research we have collected, the company decide to market through 3 famous magazines- Elle, Her World and Heritage Fashion: + Elle: a worldwide magazine of French origin with 140,000 readers over 20,000 publications in Vietnam. The age of reader is above 27, which is suitable for the company’s strategy. In this magazine, we will place our full-page advertisement about L’extrait cream in the fourth cover in order to take readers’ attention efficiently. + Her world: monthly special issues by Sun Media company who bought the rights transferred from Singapore Her World magazine .It is becoming more and more famous thanks to Vietnam’s Next Top Model contest. Our company will contract with Sun Media representative to launch our lasted product –Absolue L’extrait cream in the same position as we have in Elle magazine. + Heritage fashion: In-flight magazine for Vietnam Airlines .The purpose of ours in marketing in this kind of magazine is to reach female customers in domestic flight of Vietnam Airlines. To avoid missing key customers who don’t have time to read magazines as Elle and Her World, Heritage Fashion is an ideal choice to introduce to them our new product when they spend time to relax during their flights. *Months of publication: February, April, June, August, October, December. In addition, we plan to use LCD advertising in our marketing strategy. The video of product will appear on LCD screens of Parkson department stores, which are placed in elevators or the halls. The customers will passively access to our product without purpose. This method is more effective than Television advertising. 5.2. Direct Marketing: +Website: along with working with Elle in marketing in magazine, we also like to put banners about the product at the corner of the main website of Elle: http://www.elle.vn/ and Parkson: http://parkson.com.vn, which will lead the customers directly to our company Facebook page providing detailed product‘s information. Absolue L’extrait‘s features and price will be updated in Parkson website as well. Furthermore, the company will put the news of Absolue L’extrait in the front page in our Website so that our loyal, potential and first- time customers can easily approach to the product. +Online Social networks: Facebook is the best choice for online marketing in Vietnam because most of Vietnamese internet users have one or more Facebook account while Twitter seems to be ignored here for some reasons. Therefore, our company will place the introduction of Absolue L’extrait as special event on Facebook page and update as well as answer the questions about this product. 5.3. Sales Promotion: +Displays and demonstration: We will send each of our retail stores large color advertisement to display in the stores as well as small brochures explaining our product and its feature in Vietnamese. The display needs to emphasize that Absolue L’extrait cream is the most innovative and luxury product of Lancà ´me. +Sample: Another method is that samples will be available to consumers, this is a great way to â€Å"try before you buy†. Sampling develops a loyal consumer because the customer will only return to purchase the product if she genuinely liked it. Our company will give limited number of samples to customers who purchased over 3 million Vietnam dong. The sample will begin to be handed to consumer 1 month before the introduction of the product. 5.4. Personal selling: The company will provide salespeople about detailed information of the product such as superior features and advantages to give the useful advice to customers. Besides, since Lancà ´me entered Vietnam market in 2006, the brand has had substantial amount of loyal customers who have strong belief in our product. Lancà ´me salespeople are also well trained to build and maintain close relationship with those ones. These sale consultants will contact with the potential customers about the presence of the latest product- Absolue L’extrait anti- aging cream . Their interpersonal communication skills help them to deliver a clear, concise and consistent message to your prospects about the product and give the reasons why they should purchase it, basing on the salespeople’s understanding about them. Counter salespeople need to gather customer information and follow up with the each customer 3 days after the samples are given to insure effectiveness otherwise its money down the drain. 5. Marketing Organization: Marketing organization will reveal the overall outlook about how the marketing campaign operates and how it gains success. Ms. Sonia Chiu, the chief marketing officer at Asian Region, is in charge of planning and designing a general marketing strategies and handing it over to the subordinators within the supervision. * Marketing development and project manager, one of the sub-division of marketing organization, will work in collaboration with the advertising agency with whom they develop the advertising material for the launch (3 main magazines: Her world, Heritage fashion, Elle). This division also work with the packaging design agency, press relations and internal communications staff. * Regional manager are responsible for the sales targets set by the Group, pursue the sales promotion and need to have the capacity to analysis your results so as to allow you to imagine and to conceive corrective operational strategies when required. * Store marketing manager investigate any and every alternative distribution network opportunity (street merchants, Internet, etc.) and work on negotiations, for example about the promotional campaigns delivered through distributing brand stores. * Distributing manager is one subordinator who carries out the logistics and distribution of new- launched product through the only retailer channel – Parkson. This division will take action under the leading of store manager. VI. Action Programs: The company decide to launch Absolue L’extrait in July 4th, 2012. Following are summaries of the action programs we will implement in six next months since this June 4th, 2012 to achieve our stated objectives. June. Pre-launch action month: From June 4th, 2012. The campaign will officially begin in all 6 Lancà ´me stores in Parkson’s malls. The Vietnam L’oreal company will send representatives to each one to help decorating with the image of Absolue L’extrait appearing in the stores. The leaflets are going to be placed in cash desk. These actions are to be implemented early in order to attract the customers ‘curiosity. We also want to initiate the method â€Å"try before you buy† to our customers, therefore, the samples will be sent to V.I.P and customers with above 3 million product bill until the end of June. Counter salespeople need to gather customer information and follow up with the each customer 3 days after the sample was given to insure effectiveness. Moreover, our training staff will work with sales personnel at 6 shops to explain superior features as well as advantages of the cream. On Facebook, we will set July 4th as important event and provide the product’s information. We plan to write an article introducing new anti-aging cream of Lancà ´me -Absolue L’extrait and publish it on double page spread of Elle, Her World and Heritage Fashion with detailed information.Every LCD screens in each Parkson department stores will run video of Absolue L’extrait. July. Launch month: The program of handing samples need to be ended.The product will be put at an eye catching position in the stores and the Absolue L’extrait banner must be placed in front of each shop in order to attract customers passing by. The salespeople will begin to contact to their loyal customers through phone, e-mail or a close conversation. They will try to remind consumers entering store about the appearance of the product. Advertisement will be put in the fourth cover in Elle and Her World magazine. On the main page of Elle’s website, the product’s banner will appear once people access and lead them to our Facebook page. August. The company will register to do marketing in Heritage Fashion magazine with the same position as in those 2 magazines to target business women who usually get flights and V.I.P of Vietnam Airline that usually receive this magazine. September. In this month, because the Heritage Fashion will not be published, we will continue with August strategy. The comments of customers after using Absolue L’extrait will be posted on the Facebook. October. Salespeople continue to ensure the efficiency of the product by contacting with their customers. Advertisement on magazines still goes on following to the schedule and with publication of Heritage Fashion in this month. November. Advertisement campaign will continue as September. The results of customer satisfaction surveys and feedbacks will be analyzed carefully. We will begin to collect the reply from the customers and readers of 3 magazines about the campaign to get improvement for the next marketing activities. VII. Budget ( in one year from 7/2012 to 7/2013 ) By setting objective aimed at unit sale per year is 10,000, total first year sales revenue for Lancà ´me in Vietnam is projected at $3.5 million, with a selling price of $350 per unit (without VAT), and variable cost of $300 per unit (the cost included importing tax ). The first year profit are anticipated approximately $237,400. Break-even calculation indicates that Lancà ´me’s Absolue L’Extrait Cream will become profitable after the sale volume exceeds 5,252 units in this year. The break even analysis of Lancà ´me’s Absolue L’Extrait Cream assumes that revenue in this year is $3.5 million, variable cost per unit is $300, and the estimated fixed costs is $262,600. Based on these assumptions, the break-even sale volume is: $262,600à ·$350-$300=5,252 units Breakeven sales: 5,252 Ãâ€"$350 =$1,838,200 Note : †¢ Total Fix cost = $262,600 +Cost for rent and freight cost: $35,000 +Advertising: $90,200 +Direct Marketing: $42,000 +Sale promotion: $61,800 +Personal selling: $33,600 †¢ Variable cost: $300 per unit (included import tax) †¢ Selling Price: $350 per unit (not included VAT) VIII. Controls Through this marketing plan, our corporate goals have been projected and our methods for achieving these goals have been defined. To guarantee success, the company needs to re-evaluate the progress towards these goals in each quarter to determine if our marketing plan is working properly and profitably. If it appears that we are not meeting our goals each quarter, we will need to analyze our marketing plan and make adjustments. Source Background information and market data adapted from: http://stylist.vn/tin-tuc-lam-dep/lancome-sap-sua-ra-mat-dong-kem-duong-ky-dieu.html http://www.phunuonline.com.vn/thoitrang-lamdep/2009/Pages/Lancome-ky-niem-3-nam-hien-dien-tai-Viet-Nam.aspx http://www2.lancome.com/_en/_ww/index.aspx http://www.parkson.com.vn/vi/taxonomy/term/20 http://duhoc.dantri.com.vn/c23/s156-62983/estee-lauder-muon-chinh-phuc-viet-nam.htm http://www.esteelauder.com.vn/?q=website_admin%2Fevents&menu=316|339| http://www.ytuong.com.vn/?module=detail&pid=3&id=253 http://www.lantabrand.com/cat3news3023.html http://www.clinique.vn/?q=website_admin%2Fnode%2F14%2F&menu=133

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Personal and Managerial Effectiveness - Assignment Example Without which, an organization may not sustain or prosper effectively in this age of competitiveness among other rival players. This is because; interaction or communication with diverse individual or employees within an organization is the mother of creativity or innovation. It might prove effective for the organization in enhancing its profit margin and reputation in the market among other rival players. As a result, the image and uniqueness of the organization might also get enhanced thereby amplifying its level of sustainability in long run. Therefore, it might be depicted that interaction with the workforces of diverse culture, creed and beliefs is extremely essential to present innovative products and services to satisfy changing needs. This report mainly highlights the importance and definition of diversity along with its negative effects within a work place. Other than this, it also describes the essentialities of a diverse workforce within an organization as well as resoluti on of the issues of the diversity in an effective way so as to make it an opportunity for further improvements. Discussion What is diversity? Diversity is recognised as the procedure of acknowledging, accepting, evaluating, and analysing the differences of the viewpoints of the individual of varied age-groups, creed, ethnicity, gender, mental capability, race, spiritual practice and many other specifications. Other than this, it is also described as the process to understand and respect the ideas and suggestions of each and every individual within an organization thereby amplifying its uniqueness among all. Therefore, diverse workforces might prove effective in enhancing the productivity and profitability of the organization in long run among other rival players. So, keeping the concept of unity in mind, the challenges of diversity is fading slowly and gradually from the corporate organizations in the entire globe. Essentialities to manage diverse workforces In today’s era, d iversity is the root-cause of success of maximum extent of the organization operating in different segments. However, it might be possible only if it may be managed effectively and continuously. Only then, varied types of talents and capabilities of the employees working within an organization might be explored resulting in amplification of the productivity and efficiency in the market among others. Along with this, it might also prove effective in presenting varied types of inventive products so as to cope up with the challenges of the changing situation. As a result, it might also help the organization to improve its distinctiveness and reputation in the entire market among other rival players. Therefore, it might be depicted that diverse workforce or multicultural workforce helps in enhancing the performance and image of the individual as well as the organization in the society or market among others. Challenges Faced By 21st Century Organizations due to Diverse Workforces In ord er to retain the level of sustainability and competitiveness in the market for long run, the management of most of the organizations are devoting their maximum time and concentration to sort out diversity issues such as discrimination, negative attitudes, behaviours, conflicts, complaints, equal opportunities for females, organizational restructuring and many others. The prime cause behind it is to enhance their level of

Strategic management Final EXAM Essay Example | Topics and Well Written Essays - 3750 words

Strategic management Final EXAM - Essay Example Strategic management can operate at corporate level or business level. A definition of strategic management at corporate level is: "the pattern of major objectives, purposes or goals and essential policies or plans for achieving those goals, stated in such a ways as to define what business the company is in or is to be in and the kind of company it is or is to be."1 One must also take into account the culture and leadership of the organisation, both of which influence corporate strategic management. For example, after the return of Steve Jobs to Apple Computers Inc a top-level decision was taken to making a major shift away from heavy investment in Research and Development (R&D) of innovative and premium-priced computers, and have invested more heavily in the highly competitive consumer electronics sector. At the business or unit level of operation, strategic management is more concerned with competition, adding value and recruiting and retaining clients. Returning to the example of Apple Computers Inc, since 2001 it has been developing products such as the iPod believing that it could add high-value, user-friendly software in a way that a pure electronics business could not. Business level strategic management has been defined as: "the match between [the organisation's] internal capabilities and its external relationships. It describes how it responds to its suppliers, its customers, its competitors and the social and economic environment within which it operates."2 This view argues that strategic management boils down to having a clear sense of the organisation's objectives and identifying how these will be achieved. However there is no universal agreement on which level the subject should be studied at: corporate or business. Therefore it is important to bear in mind that such gurus as Michael Porter tend to focus on business level strategic management. There is also another school of thought which argues against this prescriptive viewpoint. This alternative and less well-documented emergent view points out that given the impossibility of planning for an uncertain future, identifying a single strategy is a waste of time. Instead organisations should focus on finding market opportunities, experimenting and developing their competitive advantage over-time.3 The three key elements of strategic management are resources, the external environment and the organisation's capacity to add-value to its core activity. An organisation's resources include its personnel and their respective skillsets, its investment and capital. These items are important for the organisation to create and sustain competitive advantage. It could be argued that Apple Computer Inc's recent success in setting the latest standard in MP3 players was built upon the fact that it had a major brand and R&D capabilities from its niche computer business and an excellent own-brand distribution network already in place. In short Apple Computer Inc optimized existing resources. The environment refers to economic and political situation the organization finds itself in, its competitors, customers and suppliers, and increasingly to 'green' issues as concerns regarding global warming and exploitation of low-wage workers become more wide-spread. For example, IBM lost much of its initial dominance of the personal computer market when it failed

Guest lecturer reports Essay Example | Topics and Well Written Essays - 750 words - 3

Guest lecturer reports - Essay Example This is achieved through applying the imaginations on the knowledge available. Sustainable development (SD) is one which meets the prevailing needs of the society without compromising the ability of the future generations for the purposes of their sustainability. It can be conceptualized both as an objective and a process. As an objective it advocates for the maintenance of environmental integrity, ensuring social equity and aiming for economic efficiency. However, as a process it explains the integration of environment, society and economy in a model. The environment provides material for the economy and also gives grounds for disposal. The raw materials are converted to goods and services to be consumed by the society, which takes back the wastes to the economy for recycling (Bogliotti, & Spangenberg, 2006). The society also gets free goods and services directly from environment. The environmental integrity is self reliable system that mainly evaluates that economy arose from the n eeds of the society to specialize in what it could produce. At this time, the ecosystem service was sustainable to society mainly because the subjects were small in number. Economy grows rapidly and outdoes the ecosystem service such that almost all societal needs are sustained by the economy. For instance finite resources like oil are being exhausted and the renewable resources used up quickly more than they are replenished. Ensuring social equity entails fulfilling the needs of all men and women, development of communities and respect for diversity. The invention of trade and later currency led to the economic explosion. Economic explosion is defined by accumulation of capital which funded major mega-projects. Thus a sustainable economy can be viewed as one which uses renewable resources as quickly as they are replenished, returns wastes to the environment at accepted limits, recycles finite resources and is resilient to changes within particular sectors. However, the environmenta lists have different opinion from the political view whose concern is on the need for further economic growth to combat global poverty, environmental problems and climatic change (Ayong Le Kama, 2001). See the diagram below; SD as a process may be analyzed in a model, as illustrated in the example of the UK SD strategy of 2009. It aimed at social progress, environmental protection, efficient use of natural resources and stable economic growth and employment. The four-legged table model explains how this quality of life was prioritized. First vision is creation oriented where a bare land resources is utilized by building structures. Decision making is the next aspect and is given a social approach. This actor-approach advocates bringing possible ideas and fostering integration of ideas and mindsets. It is an important point noted and lesson learnt that the SD is to balance and amalgamate economics, social science and environmental science. Technical experts and stakeholders should en sure vision is sound and fair. Recognition of context e.g. from a worldly view to a specific locality is equally important as considering the world trends in relation to the state of the planet, technology, people’s values and behaviors and the new legislations and regulations. When environmental problems such as global warming and climate change are considered, humans are found to cause this thus their behavior to be

American Involvment in World War I Essay Example for Free

American Involvment in World War I Essay This investigation assesses American involvement in World War I before military intervention, and how this led to military intervention. In order to assess these causes, one must examine America’s involvement in the war before combat, the events that launched America’s military intervention in the war, American sentiments about the war before military intervention, and Woodrow Wilson’s actions before the war. Two sources used in the essay, America’s Great War: World War One and the American Experience by Robert H.   Ziegler and Woodrow Wilson’s speech to congress on April 2nd, 1917 are evaluated for their origins, values, purposes and limitations. The investigation does not asses the pre-war situations of any countries but the United States, and does not asses American military involvement during the First World War Summary Of Evidence Prior to 1917, America was already deeply involved in the First World War, though they did not have troops fighting in the trenches overseas. First, American involvement in the war was purely as a producer and creditor to the Allied Powers. The war, while catastrophic for the countries involved in its atrophied trench battles, provided America with an astronomical boost to its economy, from 2 billion dollars in exported materials in 1913 to nearly 6 billion dollars in exports in 1916. This economic boom was mainly brought on by Britain’s dependency on American foodstuffs and manufactured goods.. The economic ties between America and Britain tightened with public subscription loans. By 1917, Britain had borrowed 2. 7 billion dollars from American creditors. Historian Paul Koistinen wrote â€Å"Without American supplies, Britain could not continue the war; without American financing of almost 10$ million a day †¦ Britain would exhaust its reserves of gold and securities by March 1917. Its dependence was total. Cutting back procurement . . . would produce disaster in England† Originally, America did nothing but reap the reward of â€Å"neutrality†. When Americas turned their eyes to the stage of war in Europe, they were truly terrified. One Chicago newspaper joked â€Å"A hearty vote of thanks to Columbus for having discovered America†. This sentiment was echoed by many American citizens, who showed pride in President Woodrow Wilson’s decision to declare America a neutral state in the war. Americans thoughts on the war lied in their bloodlines, as a majority of Americans were descendants from either Allied or Central Powers nations. Most Americans, early in the war at least, didn’t understand the war or why it was being fought, and were glad that America wasn’t involved. However, these robust Anti-Involvement sentiments began to fade after May 7 1915, the day of the Lusitania crisis. German U-Boats torpedoed and sunk a passenger liner in British waters, killing nearly 1,200 civilians, including 128 American citizens. The murder of these innocents set off the first widespread pro war feelings in Americans. This outrage was justified, but was also heightened by yellow journalism that demonized Germans as barbarians and deranged killers. President Woodrow Wilson, taking note of this event and the outrage it caused, warned the Germans that any further violation of American rights would result in â€Å"Strict Accountability† for these actions. This, as well as the bloody war dragging on in Europe, brought up the question of military preparedness in the United States. By 1916, pro-preparedness sentiment was widespread, as 135,000 supporters of expanding the military marched on New York City’s 5th Avenue, for 12 hours. In Chicago, 130,000 telephone operators moved in the shape of an American flag, goose-stepping down State Street. In the election of 1916, Woodrow Wilson ran against Charles E. Hughes, who was backed by Theodore Roosevelt, former president and staunch Allied Powers supporter, as well as an advocate for military preparedness. Woodrow Wilson won the election by only about 600,000 popular votes. However, these sentiments were met with an equally strong anti-militarism force, saying that in a chaotic world, America must be a beacon and resist entrance into war, and resist building an enormous military. Strong anti-militaristic sentiments began to fade when British intelligence officers intercepted a telegram sent from Foreign Secretary of the German Empire Arthur Zimmermann to the German ambassador of Mexico, Heinrich von Eckardt. This infamous proposal, known as the Zimmermann note, proposed that Mexico wage war against the United States. Throughout America’s neutrality in World War 1, President Wilson had acted as a mediator, but with tension building to a terminal level and with the Zimmermann note, Wilson was forced to ask congress to bolster America’s military forces on April 2nd 1917. Later in the same year, America sent its first military forces oversees Evaluation Of Sources Robert H Zieger: America’s Great War: World War One and the American Experience Origins- (2000) Zieger is a respected labor historian Purpose- Provides an in-depth look at American involvement in the war. Value- The economic statistics and quotations from various primary and secondary sources allow the reader to evaluate the validity of the claims Zieger makes. Limitations- does not provide any new opinions or claims Woodrow Wilson, April 2nd 1917 to congress to persuade congress to bring the United States Origin- German hostile actions towards the United States Purpose- Persuade congress to declare war on Germany and the Central Powers Value- clearly outlined Wilson’s reason’s for entering war Limitations- doesn’t explain the underlying causes of military intervention or pressure from big business to declare war for entry  Analysis America’s involvement in World War One began with producing vital weapons and foodstuffs for the Allied Powers, as well as economically supporting the Allied nation’s governments. Throughout the war, the German Empire repeatedly acted belligerently towards the neutral United States, sinking passenger lines, killing Amer ican civilians. Tension with Germany also rose after the proposal to Mexico asking the Mexican army to wage war on the United States. These belligerent German acts, however, would not have held as much effect as they did if American political opinions had not been shifted by the German actions, the economic pressure of close ties to the Allied nations, or social pressure brought along by shifting political attitudes. These all contributed to tensions growing regarding American military involvement I World War One President Woodrow Wilson was a stalwart proponent of American neutrality in the First World War for the almost all of the war, but the American political climate at the time forced his hand.. He was able to win this election because most voters at the time had pro-neutrality sentiments. However, Wilson took into account his slim margin of victory, and the Republican’s yearning for a prepared military. These yearnings were brought on mainly by the Lusitania sinking. A major proponent for intervention, the previously mentioned Theodore Roosevelt, denounced these acts of the German Empire as acts of piracy. Roosevelt’s popularity made these statements extremely well heard. This shift in public opinion helped force President Wilson’s hand. America’s involvement in World War One before it entry in combat was extremely vital, producing millions of dollars’ worth of material for Britain and France, as well as financing the war through small loans. This dependency was built by J. P Morgan, who traded nearly 3 billion dollars’ worth of goods with the allied powers. By 1917, America had invested 2. 7 billion dollars in Britain alone. Historian Paul Koistinen’s quote regarding British dependency on American trade shows how deeply entrenched America was with the war’s affairs pre involvement. These statistics show that the allied powers were completely dependent on American economic support American corporations had an immense amount of wealth in the war, and if they Allied powers lost the war, all of their investments would be worth nothing, because the countries that had been responsible for repaying these debts would no longer exist. The war was taking a detrimental toll on the populations of the warring nations, and the war was almost completely atrophied. It was only a matter of time before one side lost, and it was essential to American business that it was the Allied Powers. Had the allied powers lost to the central powers, American financers would have lost 2. 7 billion dollars as a whole, 2. 7 billion dollars that were needed to give to American business, 2. 7 billion dollars that banks needed to stay in business. Throughout pre-involvement America, as early as the dawn of the war, so called â€Å"hyphenated Americans†, had opinions on what side of the war to support, dependent on their country of origin. German-Americans, the largest ethnic group at the time , supported what they thought of as their motherland, Germany, therefore supported the Central Powers. The second largest ethnic group, Irish-Americans, saw Great Britain as an oppressor, therefore were also supporters of the central powers. However, most Americans at the time were still pro-neutrality. A Chicago newspaper, expressing thanks to Columbus, wrote an article on the blessing of the Atlantic Ocean. This was a popular sentiment at the time, and many Americans were proud of Wilson’s decision to be neutral. After the sinking of American ocean liner Lusitania the support of neutrality began to fade. Before the Lusitania disaster, however, 92 ships had been sunken by aggressive German action. None of these attacks had gained as much publicity, partially due to the fact that the previous sinking’s hadn’t been as destructive. But this was also due to the fact that the Lusitania sinking was grabbed onto by yellow journalists. â€Å"The blood of these murdered victims cries for vengeance. If that cry is unheard, the people of the United States will always bear upon them the stigma of the greatest humiliation ever put upon a nation. Writes a reporter from the Toronto Telegram. President Wilson demanded that German U-Boats stop sinking civilian liners, and if they continued to do so, they would be met with military retaliation. This didn’t stop Germans from sinking boats, and Wilson’s failure to take action against them infuriated Americans. Observing the protests in American cities at the time, one can judge that huge masses of people were strongly in favo r of interventionism. Conclusion The process of the American military joining the Allied Powers seemed inevitable from the start of the war, but still took hostile action and over reaction to spark military involvement. America’s pre-war economic ties to Europe and America’s reliance on trade with these nations during the war made America’s involvement with these nations too deep to let them lose the war, therefore forcing combat. Woodrow Wilson’s strong stance on neutrality couldn’t stand up to the enormous pressure he faced from the people of the United States.