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Luxury Cosmetics Maker Weighs the Benefits of Selling Items on TV

Summarize

Eve Pearl is cosmetic boutique that is named after its owner, Eve Pearl, an Emmy-winning TV makeup artist.

Ms. Pearl is weighing her options to sell her products on Shop NBC, a Home Shopping Network.

Face problems: Weak supply chain, slow walk-in traffic, ….

State the problem The challenge with sales growth slower than desired. The bottom line was not shining as brightly as the

five Emmys on display in the boutique. Walk-in traffic at the boutique remained slow. selling on a home-shopping channel. Profit margins would drop sharply, and cash flow

might turn even uglier.

SWOT analysis

>>STRENGTHS Having the marketing style that most competitors

cannot imitate. Her products contain special nutrients that can care

one’s skin. The products can be seen efficiently by people from

all over the world.

SWOT analysis

>>WEAKNESSES Her skills of planning and controlling company

resources are weak. Inappropriate trafficking branches. The cooperation with Shop NBC causes the negative

outcome.

SWOT analysis

>>Opportunities The image of home-shopping networks now has

dramatically changed. More humanized and more efficient to promote her

products. Giving her boutique location a lot of publicity.

SWOT analysis

>>Threats A risk of endangering the equity of her brand. Still keeping high-end products is threatening. Her products have been similar to the other beauty

companies’ currently.

Problem: Because home shopping networks, profit margins would drop sharply, and cash flow might turn even uglier.

Option1>> Create a diffusion line product, a step-down line extension of an existing high-end brand. Problem: Walk-in traffic at the boutique remained

slow.Option2>> Advertising by Shop NBC. Problem: The products are similar to the other

beauty companies’.Option3>> Shift the target to the new customers.

OPTIONS & THE PROS AND CONS

Recommendation

We pick the 2th option, as our recommended solution. Since online sales are convenient, widespread use, strong integrity, and so on, there are a lot of people enjoy shopping and marketing online. Although online sales haven’t been mature currently, with the rapidly increasing in the number of Internet users and online sales, online sales are expected to be one of retail sales methods in the future.

Thanks for listening.