Business Plan - Luxury Perfumes
- Role plays
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
[...] our marketing manager and financial controller, perfumeries selling any make of upmarket perfumes should be allowed to stock the complete Ghislaine range. The second problem is that we have only one outlet each in big cities. In this way, we lose profits. Moreover, our Lawyer has stated that this policy of supplying only our own perfumeries was simply unlawful in many markets, and counters principles of free trade. To conclude, the company CEO has decided to change this policy even if he preferred the present one. [...]
[...] This exclusive policy has made our reputation. Ghislaine is known for its quality and prestige that permits us to charge prices up to 25% higher than our competitors. Julien: Ok, but with this policy, we have only one store in big cities. In this way, we do not make enough profits. Choices are more in perfumeries selling different brands. If we want to increase our sales, it is also necessary to bring about changes in the policy. Amelie: No, we shouldn't change the policy. [...]