Princessa Beauty Products Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Analysis

Alternatives

Promoting Products with Free Gifts

Offering Products with a certain reduction will lead the customer towards a situation where they will make doubtful suggestions about the product’s quality or related to its demand in the market. It would be highly effective if the product were offered with a certain attractive gift. This promotional scheme would provide a sense of getting more of the purchase price of only one product.

Use of E-Marketing

To increase company’s sales, electronic marketing will also provide robust sales for the company. Princessa will follow Amazon and eBay to promote their products globally. The company will also use social media website such as Facebook and Twitter to market their products and to expand their market internationally.

Licensing Of Franchise

The company can also go for another alternative of licensing their franchise to the private owner so that the income generated from this partnership will make the company’s financial performance strong which in turn will make the company able to spend more on its staff’s training and development. Due to this training the staff will present Princessa’s products more effectively to its customer when they visit their stores.

Licensing would be a safer option for Princessa to become financially stable because this allows the company to use its brand name, complete product line with its pure quality and handling procedures without incurring any cost by its own.

Investment onthe Distribution Network

The company should take a loan from a bank and upgrade its distribution channel by increasing its number of outlets within Canada and other nearby cities. Initially the Loan will increase Princessa’s cost of borrowing in the liability side of the balance sheet and it will also increase expenses in the income statement, but eventually it will contribute positively in the company’s cash flow and will show an increase in its financing activities and capital investment.

Analysis of alternatives

Alternative one promotion of products with gift hampers:

Pros

It will be beneficial for the company to promote its product with a certain small gift which gives the customer a sense of achievement that will bring them towards the store frequently.

Cons

It has been suggested that the company should offer its products with a little gift attached to it. However, at the time of implementation it would be so unpredictable that whether the buyer would buy the product even without a free product attached to it or not. This situation will lead Princessa beauty products into the uncertainty that with a piece of incentive they might gather a pool of customer who got attracted to their store but it will not guarantee the company about its customer loyalty.

Alternative two suggests that Princessa beauty retail stores should go for E-Marketing technique:

Pros

Marketing through electronic media will make the process to appear globally everywhere, where they want to capture their niche market of black American community. It's also a costly move for the company to make their beauty products reachable to its entire market share.

Cons

Currently, the company is not only in a position to run a separate social media campaign for their products promotion because of the resource available to them is certainly not enough to cater this whole marketing campaign. The owner of the company is not in a position to allocate reasonable time for their electronic social appearance of Princessa beauty products.

It's also a point of concern that whether the company will show their retail setup through a complete website or through a particular page built on some social sites like twitter and Facebook because it requires a lot of time and human intellect which the company currently does not possess.

Alternatives to establish strong financial position

Alternative three of Licensing ofFrenchie provides the company with an option to make its finances well-built and strong.

Pros

The company can outsource all of its operations of sales and enjoy licensing fees from the buyer of the franchise, and the annual ratio of profit partnership will contribute to the company’s financial health. This ratio will be distributed monthly as well as on an annual basis.

Cons

If the company would go for this option, then it has to give its brand name, the complete range of product line and the trademark of its retail store in the hands of the private owner. It will make the company’s reputation at stake related to the management of the customer and the products.................................

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