Marketing Yue Sai; Assessing Potential Marketing

Yue Sai, owned by L'Oreal, has not been performing as well as expected. Part of the issue may be related to the way that the brand has been managed and the current positioning, which maybe argued as ambiguous, there have been different approaches to marketing, and while L'Oreal have made investments in supporting the brand, they appear to have been unable to differentiate the brand sufficiently to increase sales. While it may be tempting to argue that brand should be repositioned again, given the history and the changes that have already been seen, it possible this would create consumer confusion, with memory and current messages creating a conflict and detracting from the brand. Branding can also take time to establish, especially when the message is the change or alter previous values (Kotler and Keller, 2011). Taking this into consideration it may be suggested that the current branding is supported and built upon, using similar messages, with aligned values, but with a higher level of targeting and improved differentiation.

To appreciate how the shift in brand strategy may be implemented one first has to appreciate the current problems. When the brand was first founded in 1992 by Madam Yue-Sai Kan, it was clearly positioned, supported by clear positioning, in which the brand benefited from gaining a first mover advantage; being the first Chinese premium brand of make-up designed specifically for Asian skin (Yang, 2013). Supported by a best selling book by the founder the brand became successful (Yang, 2013). However, when sold to Coty that firm focuses on distribution and not marketing; the differentiation was lost. By the time L'Oreal purchased the brand, the environment was different; many more, well differentiated brands were competition in the market, and Yue-Sui was an older brand, associated with the older generation, so found it difficult to gain market share (Yang, 2013).

However, the environment in China is also one where there is also recognition and affection for history and tradition; Yue Sai was the first Chinese make up, and this is something that those who were using it in the 1990's may still be aware of. The current message; with Yue Sai being a brand for confident modern Chinese women may be built upon, at the same time the newer image as well as the traditional aspects are incorporated. The brand may be adapted so there are two variants; in line with the French sounding name, it is suggested that the brand has Madam Yue Sai and Mademoiselle Yue Sai, one for the older women and one for the younger generation. Thus may help to build on tradition that was built by Yue Sai. There is also no reason why many older women may not be attracted to a brand for confident women; as the women that started wearing make up in the 1990's age they will need a brand they trust, this can be that brand, and it is likely to appeal with the current message; this target market may be differentiated with the word Madam at the with the brand name. The products in the range of which target the younger generation may be differentiated within the 'Mademoiselle' in the brand name, which implies a younger audience. The brand message remaining the same, increasing the level of differentiation and building on existing traditions of the brand's original foundations, but bringing it up-to-date, so there is both nostalgia and modernity combined. This is also facilitate a further brand extension targeting men, under the variation Monsieur Yue Sai, or shortened to YS.

If this approach is not preferred, an alternative positioning is required, then positioning the brand to appeal to the older market may be viable. While the average age of the consumer purchasing make-up in China is much younger than the average age of the European consumer, this may be changing as the consumers who first brought the make-up in the 1990s mature. This may make the previous generation a potentially viable target market. An alternate market would be to shift away from the current differentiation, and embrace further the concept of natural ingredients and Chinese remedies, the brand already has a number of lines that incorporate this approach, and extending the brand in this direction would allow for a positioning of the brand is more aligned with traditional Chinese medicine. Adopting this type strategy may also facilitate distribution through the traditional Chinese medicine shops, and increase the distribution channels that are available.

A final potential strategy may be a brand extension, which may also support a...

These need to be considered in the way that the positioning of Yue Sai is supported. The first consideration may be the view that is taken regarding use of make-up, with many Chinese women seeing it as unnecessary, superficial and potentially harmful for the skin; this means that Chinese consumers do not face the same level of social pressure to utilize make up to change or improve their appearance. This increases the level of discretion which may be utilized by potential consumers, and may also be seen as a constraint on the market. Therefore, marketing messages need to be adapted in order to increase the appeal and enhance the benefits associated with make-up use in terms of psychographic and internal feelings rather than associations with external perceptions.
The second main difference in terms of cultural aspects of the make a market can be seen in the way the distribution takes place, and the different tiers of department stores in which make up is often sold. The tier 1 department stores are only in the largest metropolitan cities, such as Beijing, with premium brands utilizing tier 1 and tier 2 department stores only. This distribution channel can be seen as potentially constraining, as it limits the size of the target market to those who are visiting those department stores. This can be particularly dramatic when a brand is not gaining is for market share, as the limited floor space it is available, especially where it is not released from a major department store, is limited, and shops will place the brands they believe will have the greatest level of sales in the most prominent positions. This latter aspect is not radically different in West, but the way in which access to alternative solution channels is gained is more limited.

The lack of make-up history in the traditions of China have also been seen to increase the level of openness that Chinese consumers have towards make up, where there are fewer preconceptions and stereotypes applied by consumers to their purchase choices. This open-mindedness means that older brands and traditions are not necessarily seen in the same way as the West, where they are generally perceived as negative. A trend which demonstrates this is the revival an increased interest in traditional Chinese medicine. This may be seen as offering opportunities for companies, to break out of old stereotype seen in the West, develop new messages and attract new customers more easily switching has a greater possibility in a marketplace where consumers have an open mind. The general level of open-mindedness is also a factor which has led to a much higher level of sales to the male skincare market.

The suggestions made in part a build on these differences, the current marketing which is based on the idea of confidence already appeals to internal emotions of the individual, and the way in which it may help to increase confidence. This is also supported with the images provided. By utilizing the current messages, and dividing the brand into two variants, one for the older market one for the younger market, there is an increased level of targeting, which is likely to be acceptable to market where there is an open-minded approach. The aspect of confidence, beauty and modernity can then be combined with a degree of nostalgia for the traditions of the past, especially for the variant is the brand targeting the older market, whereas the younger market may appreciate the heritage of the brand, but benefit from the younger marketing, seeing themselves as a younger generation, separated not by 20 years, but by possibly less than a decade.

A problem that still remains is the limited distribution and access to the distribution channels, especially when the brand has been in decline. The reinvigoration of the brand with the existing messages may help to benefit a more positive view of the brand by the shops to sell the product. However, it may also be argued that to help overcome some of the preconceptions and gain more tension, the provision of further branding support, such as point-of-sale material, may be beneficial.

Question 2

Part A

The product aspect of the marketing mix requires consideration; there may be some benefits associating Yue…