Opportunities
There are many opportunities for Mistine going forward. First, there is the potential of expanding into neighboring countries and regions that have significantly higher per capita incomes compared to Thailand. Singapore, the Middle East, China all have higher per capita incomes than Thailand. There is also the potential to expand into Laos, Cambodia and Vietnam. All of these expansion strategies would require the company to become much more adept at managing the 200% turnover they have however. The opportunity to use contract manufacturing to drive even greater new product development velocity is also a possibility; Mistine could double their run rate using contract manufacturers in their regions. Third, the company could also create a greater online presence and tailor it to their unique market requirements.
Threats
The threat of being overtaken by a global competitor, supply chain shortages, massive turnover greater than 200% and a tightening economy that slows spending on cosmetic and personal care items are all significant risks for Mistine. In addition to all of these, there is the risk of not being able to capture the next generation of consumers as well as they have for the mainstream market. Initial efforts have been somewhat successful, yet not exceptional in performance.
Problem Statement
How to keep Mistine relevant and in step with the next generation of cosmetics purchaser globally.
2. Create a specific series of product groups or divisions by region, with the Chinese, Indian, Russian and Brazilian ones being the highest priority. These four nations have the highest economic growth today and are often called the BRIC economies.
3. Develop a framework that encapsulates both marketing and financial data to define which products need to be heavily invested in by region of the world and which can be abandoned. Start focusing on product line trimming in unprofitable segments, and high investment levels in the emerging growth areas. This is comparable to a portfolio-based approach to product line management.
Strategic Recommendation
The best option is three, which is create a framework which will ensure Mistine stays focused on emerging growth markets while also being able to track profitability by product line. This is necessary as the company has over 6,000 products and they need to be managed to profitability much more precisely for Mistine to control costs.
Marketing Implementation
Define and execute a product line strategy that is aimed at the next generation of cosmetics purchasers, and support it through intensive use of social media and customized websites. Use Facebook and YouTube heavily to promote the most youthful brands.
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