The Chinese market prefers premium products, especially when it comes to beauty and skin care. After its acquisition by the New York-based firm Coty, Yue Sai lost its relevance in the Chinese market. Due to this Yue Sai was acquired by L’Oréal, which gave the Chinese brand an opportunity to do well again. However, this was not the case the brand had lost its appeal and was now associated with older consumers, it was also unclear to its position within L’Oréal. To restore its position in the Chinese market Yue Sai needs to come up with a foolproof marketing plan. A proper marketing plan is essential to the achievement of the organization's long and short term goals (Uncles, 345).
Rebranding and repositioning involve the renewal of a brand perception in the minds of potential and previous customers. To recover the brand image of Yue-Sai, the marketing manager must reposition the products as well as the company. Yue-Sai should position its self as a leading producer of skin care products suitable for Chinese skin. Instead of positioning the Yue-Sai products as luxury items the marketing team should position it as an affordable brand that offers the best quality care for Chinese skin. While lifestyle brands tend to be more expensive, they earn more revenue they tend to lose their popularity very fast (Uncles, 346). They are also associated with an individual cluster of people such being of the older generation. On the other hand, using functional qualities of a product has a more lasting effect on the consumer’s mind. The brand will target young people, especially young women with the promise to maintain their skin well into their old age. By focusing on young women, it will inspire loyalty even as they grow old.
Yue-Sai should remain to be associated with the L’Oréal brand. The brand offers a strong identity for Yue Sai, which will come in handy when the brand decides to go public. Also, the inclination of Chinese people to use multinational brands will attract more customers (Uncles, 350). Being a successful brand L’Oréal will provide a good reputation on which Yue Sai can rebuild itself. However, Yue Sai should ensure that there are policies in place that will ensure it does not get overshadowed by the larger more renowned brand. A good reputation will also provide a clientele base for Yue Sai rather than having to generate its client base.
The company will use competitive pricing strategy to sell their products. It will also give discounts to customers who buy more than one product from the brand. It will use social media to advertise and promote its brand and its product because its target market is more inclined to shop and use social media. It will also use television and billboard campaigns to promote the product and reach a broad audience (Uncles, 352). The central message of the promotion campaign will be that the products are quality and appropriate for women of all ages. Yue-Sai will also repackage and rebrand its product to attract new customers as well to reestablish itself in the market. It will distribute its product through renowned shops that carry other cosmetic products. It will also sell its product through stores that carry L’Oréal products.
The target of this repositioning is to enable Yue Sai to rebrand itself in the market as a leading Chinese cosmetics product. Using the above market plan Yue Sai will regain its position as a leading cosmetic producer in China. The marketer should also come up with an evaluation strategy to gauge how effective the plan is in achieving its goals (Uncles, 348). Evaluation will determine whether the plan should be adjusted or changed entirely to ensure success.
Work cited
Uncles, M. "From Marketing Knowledge To marketing Principles". Marketing Theory 2.4 (2002): 345-353. Web.
