T HE F IFTH G ROUP * 陳尹宣 洪嘉琳 林秀薇 張志圓 *

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, …. 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 >>S TRENGTHS  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 >>W EAKNESSES  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.