Princessa Beauty Products 5 Harvard Case Study Solution

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Princessa Beauty Products 5 Case Study Solution & Analysis


Historically, the company's core consumers consist of the Original Equipment Manufacturers (OEMs), which utilized to sell Princessa Beauty Products 5 Case Study Analysis products withtheir own brand name. Its customer circle consists of Original Devices Manufacturers (OEMs), who used to offer Org items with their own brand name. He repositioned Company as a worldwide brand name and informed his divisional managers to comprehend marketing and its significance.

Issue Statement

Enterprise's transition from an item based to a marketing company is not going as smoothly as planned.Overcoming the hesitation of divisional managers to incorporate marketing effectively is still a major difficulty. Producing a constant brand identity across the whole world and utilizing marketing techniques that best fits the regional culture is no easy job.
Executive Summary
Situational Analysis

Princessa Beauty Products 5 Case Study Analysis efforts for building its brand throughout the world was begun after introducing the "brand-new management effort" by Chairman Lee in 1993. The objective was to change Enterprise from a low-cost OEM to a high value-added item service provider. To make the vision of Corp a reality, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Org can change from a low end to a luxury product service provider. He knew that improvement can only be done through positioning Corp as a business using high-end products and this could just be done through high level of marketing.

In spite of having a clear vision about how to build Organization brand name, with a prospective assistance of its executives, Yun faced several marketing difficulties in early years of its efforts.

One of the marketing difficulties for Yun was the understandings of executives about the worth of marketing. They considered marketing and selling as exact same tools and thought that quality products do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous organisation practices, and the present marketing requirement was too much high, the gap was too broader and to fill this gap with incorrect perceptions about marketing was rather tough for Yun.

As specified above, marketing focus was very low in previous practices, therefore there were no correct marketing budgets for each of the product on the portfolio. There was no marketing planning provided for the existing items. Together with it the product range of the business was increasing with the ripening of new item concepts by the R&D sector of Corporation. Yun had an obstacle to carry out marketing planning and to produce marketing budget plans for existing as well as for brand-new items from the very beginning, and this would take a big time.

A substantial shift would be needed in present marketing expenditures to develop the Princessa Beauty Products 5 Case Study Analysis brand name. This would result in increased marketing expenditures for Enterprise and might disturb the administration regarding increased expenses, as they were reluctant to marketing expenses previously and an abrupt big shiftwould make them disturb. This could lead to decreasing executive support for worldwide marketing. In this scenario, Yun deals with an obstacle for validating increased marketing expenses by showing the long term value of huge marketing expenditures.

Internal Analysis
SWOT Analysis

Princessa Beauty Products 5 Case Study Analysis strengths lie in its huge item portfolio. Venture has biggest number of patents in the market with overall number of 15499 patents given in US( USP).

Another strength of Princessa Beauty Products 5 Case Study Solution is its capability to develop innovative items at a continuous rate. It major proves for the development and item developing of Company is that the company has received many awards for its innovation and product style.

Unlike Apple and other competitors, Corporation is focused on producing devices which can be quickly incorporated with any kind of open source Operating System (OS) and software application. This offers Company an edge over Apple devices.
Porter's 5 Forces Analysis
Corp's ability to produce luxury items at low cost of production is also among the major strength of Org as it enables the business to capture more market by providing quality products with cost control.


Enterprise's weak points are concealed in the business's reliance on outsourcing software application for its devices due to business's failure in establishing software, unlike Sony. Princessa Beauty Products 5 Case Study Help likewise has low profit margins as compare to Apple due to substantial distinction in the costs of Apple and Venture with a much lesser distinction in quality.


Opportunities for Princessa Beauty Products 5 Case Study Help lie in the growing Smart device market and the business's efficiency in the market. Corporation presently runs in about 80 countries and the company has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia.


The dynamic market environment of innovation industry present a severe danger on Corporation's survival and force the company to spend much of its incomes share on R&D in order to survive in the long run. The marketplace saturation in developed nations i.e. saturation of mobile business is likewise a big risk for the company's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Org provides quality items and has a rather abundant portfolio which caters to various sectors. LCD and mobile phones are the most significant products of Enterprise, whereas DRAM is also not far behind in comparison of them.

• Laptops.
• Mobile phones.
• Air conditioner.
• Computer.
• Disk drives.
• Washing machines.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.


Princessa Beauty Products 5 Case Study Analysis uses both market competitive and market skimming pricing methods for its variety of products. In competitive pricing it adjusts the rate according to the competitors in order to acquire advantage, whereas, it uses market skimming strategy where the item has an added worth and by offering a few products it can reach break-even.


It has one of the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon etc. All its products are prompt provided to the selling location/ delivered to the consumers directly in case of online order.

Vrio Analysis
It utilizes both offline & online channels of promotion to market their products. Paid item ads, social promotion and digital advertisements are uses to develop awareness about Corp products.

Worth Chain Analysis.

It's an analytical framework for determining company activities that include worth or competitive benefit for the business.

Incoming Logistics.

For its inbound logistics it owns numerous logistics firms as it subsidiaries. It looks after its suppliers and develops a harmonious relationship with them and even decreased their payment cycles to boost this relationship further which includes value to their chain network.


Venture's core competency is its mass producing it produces 90% of its items in-house. Divided into three different divisions its operations are namely IT & Mobile Communications, Device Solutions and Customer Electronic Devices. It is maintaining operation hubs worldwide to further add worth to its worth chain network.

Outbound Logistics.

Its outgoing logistics system performance is one of the primary reasons Princessa Beauty Products 5 Case Study Solution has the ability to take on Apple. Business's own Electronic Logitec system plays a major role in the outgoing logistics operations. It even performs the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Company.

Marketing and Sales.

Bring in target customer attention towards the product is done through marketing and sales to interact with them the worth and competitive benefit the item uses. Princessa Beauty Products 5 Case Study Solution marketing budget is constantly on the rise given that they began their rearranging worldwide and will continue to do so as they are constantly looking to expand and invest in high prospective development markets. The spending plan is spent on occasions, print and media ads, public relations and so on.

Corporation Service. Corp put their consumers on top and continually make every effort to deliver unmatchable client service standards. As after sales service is ending up being incredibly crucial to keep clients happy and engaged, they even conduct studies through 3rd parties to discover their customer's feedback and execute it in the positive method to lower or if possible totally remove their customer concerns. By adding a direct support line to contact them 24 hours they have actually further increased the included value of Princessa Beauty Products 5 Case Study Solution service.


Princessa Beauty Products 5 Case Study Analysis has actually diversified market segmentation, based upon its provision of large range of products to a great deal of consumers. Org target customer segments can be divided into 3 classifications i.e. Princessa Beauty Products 5 Case Study Solution IT and Mobile Communications, Venture Customer Electronics and Org Device solutions.


Princessa Beauty Products 5 Case Study Analysis geographical segmentation is based upon 2 criteria i.e. region and density. Corp serves about 80 countries worldwide with its products offered to Urban along with Backwoods of the country. The Org is likewise growing its international existence and the company's versatility in locating its plants encourages international expansion of Corporation.


The demographic division of Princessa Beauty Products 5 Case Study Solution is based upon gender, age, life-cycle stage and occupation. Company produces products that can be used by both females and males. The target customers for Business IT and mobile communication items have an age series of 18-65 with majority at a young or freshly wed life cycle phase. They are primarily experts, employees and trainees. Apart from it, Company Consumer Electronics are targeted to a customer sector with an age series of 25-65. They are mainly workers and experts. Nevertheless Princessa Beauty Products 5 Case Study Solution Device Solutions are targeted at students, staff members and professionals with an age series of 25-65.


The psychographic segmentation of Princessa Beauty Products 5 Case Study Solution s based upon the social class and the lifestyle of the consumer. Corp target consumers on the basis of social class are generally upper middle, middle and working class consumers, as Organization sell products like cellular phone very little less expensive i.e. Motorola in addition to very little pricey i.e. Apple. It provides quality products to middle level consumers at a somewhat high price than others targeting the very same segment.


Princessa Beauty Products 5 Case Study Solution majority target customers have distinct behavioural characteristics. They are attracted towards Organization due to the fact that of its moderate costs with a degree of quality.

Quantitative analysis.

Sales of Business has actually increased astonishingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. It has actually also decreased its financial obligation from 15 billion $ to 4.6 billion $. Digital media is the largest selling classification of Venture with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales. Earnings/ sales are increasing however net earnings is not increasing appropriately due to the fact that of the high overhead cost. New expansions and employing's were the primary reason of the boost in the overhead expenses, with china presently not offering any profit to Corp, but there is so much potential in the current market with 75 % yet to be checked out.

Qualitative analysis.

Yes, this decision is based on the mission of Kim to target the more youthful audience and develop an international brand name picture of the company. Whereas, the core strength of the company is presently producing but long gone are those days when excellent products were selling themselves. In the existing age marketing is very essential and companies can not prosper without it. Kim has already started to enhance the marketing activities of Enterprise and very soon it will become one of its core strength like producing if not better.



Corp operates designs, makes and offer a vast portfolio of consumer electronic devices. It operates in a very competitive environment and has actually successfully placed itself as the maker of quality items. So, the response is yes.


As, said earlier that Princessa Beauty Products 5 Case Study Solution runs in an extremely competitive environment, which means all the companies have comparable products. The response for rarity is no.


Due to the nature of the industry, it is really easy for rivals to comprehend the functionality of the items and easily make their own designs. Yes, Company is only behind IBM in registering new patents every year, however the benefit is very short term in this market.


Chairman Lee has completely turn-around Business, from going practically bankrupt throughout the Asian monetary crisis of 1997 to the top 25 company in the world. Certainly yes there appertains organization in the business and the results promote themselves.

External Environmental Analysis

PESTLE Analysis


Being a multinational brand name spread almost in every nation worldwide, majority of the environments like U.S.A., Europe, China etc., are extremely conductive for its operations. It faces some political pressures in less developed nations where law and order scenario is not good. Latin American, African and some Asian nations fall in this classification, where political instability do have an impact on Princessa Beauty Products 5 Case Study Solution operations.


Purchasing power of customers is important for companies like Enterprise to be successful and grow. Emerging markets like India, middle-eastern countries etc. supply development chances, whereas, due to recession even the customers of industrialized countries suffer severely. It is very important for the business to keep an eye on the continuous economic situation of the nation prior to going into the market.


International companies have to deal with different social and cultural issues during its operations in a foreign country. Org has likewise dealt with many concerns however have actually adopted to the local environments of most of the nations exceptionally well. It has tailored its products, practices, policies and so on accordingly in order to be successful.


With a yearly expense of 2.4 billion dollars in Research study & Development, and with constant ingenious product launches, Princessa Beauty Products 5 Case Study Solution is one of the leading innovative companies of the world. With a clear objective to be ahead of the rest when it concerns technological developments, Company has actually risen to the no 25 of the leading successful companies of the world.


Each country has their own laws and policies, being a multinational business Company have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. It has to study or hire a regional law professional before starting its operations in a particular country.


With the increasing awareness amongst consumers about the ethical & ecological offenses of business, Enterprise needs to guarantee that it follows all the safety guidelines. Environmental damages, ethical misbehaviors are not acceptable and in some nations the consequences can be really extreme. On the other hand it has to do some Corporate Social Duty practices to show the residents that it appreciates their environment and people.

Porter's 5 Forces

Hazard of Replacement

Risk of replacement for Enterprise's each product category is rather significant. Aspects for high danger of alternative for Princessa Beauty Products 5 Case Study Solution Mobile phone consist of the existence of high number of suppliers and Market saturation in industrialized countries, which make the expense of changing for consumers nearly absolutely no. Along with it, Organization printing options items are threatened by the increasing destination of clients towards cloud storage.

Rivalry Among Existing Firms:

The rivaly among Organization and its close rivals is intense. The major factor behind this is the technique of market saturation in numerous number of item classifications, forcing Organization to introduce more ingenious functions in existing items and brand-new ingenious products to preserve its growth. The significant competitors for Princessa Beauty Products 5 Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Enterprise Sustainability Report, 2016) Provider's bargaining power for Enterprise is low as Org runs economies of scale and its orders are of prospective size and worth. Due to incapability of Princessa Beauty Products 5 Case Study Solution to develop its own software application, it has to outsource its software application development to Google, which becomes a potential supplier of software application for Venture, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Negotiating power of purchasers for numerous number of item classifications of Corp is extreme. One of the element causing the intense bargaining power is the accessibility of large number of rivals in nearly each product classification i.e. rivals of Org Smart device, with a very little distinction. The high schedule of providers of Smart devices with minimum distinction, make the changing expense for purchasers practically no, hence increasing the bargaining power of buyers. Market saturation in most of the item categories also make the bargaining power of purchasers more extreme in for Princessa Beauty Products 5 Case Study Analysis. In spite of igh bargaining power Organization is quite capable of selling its items at a higher rate than much of its rivals, due to luxury quality product and a fair brand name image.

Risk of New Entrants:

Threat of brand-new entrants for Enterprise is quite low. Among the major aspect for low threat of brand-new entrants is the high competitors in the market. The requirement of huge amount of capital to go into in the marketplace is also one of the possible barrier to entry. Along with it, requirement of substantial knowledge and research and advancement expenditures for survival in the market also make new entrants unwilling to go into in the marketplace. Market saturation is likewise one of the barrier of entry in innovation industry. High bargaining power of suppliers force the gamers in the industry to charge as low costs as possible and this can only be attained by production efficiency. New companies, in bulk cases, lack the production effectiveness, thus increasing the risks for entryway in the technology industry.

Competitive Analysis

Business's high product diversity supplies it differentiation from its competitors. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single product classification with Sony focusing on consumer electronic devices, Nokia on cell phones and Intel on chips, Princessa Beauty Products 5 Case Study Solution had a huge R&D spending on all of its product categories which allow the company to earn possible earnings from sales of nearly all of its products.

The company ranks initially in 4 product classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave ovens, in terms of global market share, among 8 different product categories. Org was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Enterprise revenues from chips was less than Intel however its earnings from chips was growing quicker than Intel and has actually grown close to the earnings levels of Intel, as given in the case Exhibition 2.

Along with the chips Enterprise mobile market was also flourishing at a high rate than its competitors i.e. Motorola and Nokia. Corporation's mobile phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with zero sales growth. The major reson behind Venture's high growth despite of greater costs than Nokia and Motorola was the business's high-end quality cell phones.

Corp was also reaping the benefits from increasing market share of high-end LCDs as given in case Display 3. The major factor, making the company allow to get the opportunity is its mass production at low expense. Sony was the biggest rival for Princessa Beauty Products 5 Case Study Analysis in LCD market, nevertheless, it had also begun joint endeavor with Company in 2003 for LCD making, lessening the competition for Corporation.

Porter's Competitive Strategy

Low Expense Leadership technique of porter is completely implemented by Org the way they accomplish economies of scale by enhancing their core proficiencies of production. They constantly bring something new and ingenious whether it's a service or a product.


Alternative Solution 1

The Chief Marketing Officer (CMO) of Princessa Beauty Products 5 Case Study Help would produce a brand-new brand image by targeting the more youthful generation of the specific country. As, particularly cellphones of Business are popular amongst the younger market.


1. It is the best strategy to build Consumer Lifetime Worth (CLV) by creating a long-term relationship with clients. Develop commitment through delivering value and reap the benefits for long-term, as research has showed it is much cheaper to keep current clients than to bring in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger individuals and which in turn will bring in brand-new consumers for my items.


1. Old consumers who were associated with Corporation prior to might not like this brand-new image the business is attempting to represent.
2 It will sustain further costs to reposition some products and it may not even bring success as the trends alter really rapidly amongst the younger market.

Alternative option 2.

It would be done by arranging training workshops throughout which value of marketing will be taught and numbers will be provided. Marketing environment must be developed internally first as real marketing begins inside the corporation.


1. Its pro will be that all the marketing technique supporters will come out and also the opposite ones.


2. Its con can produce a really unhealthy environment in the workplace, as individuals often resist modification due to the fact that they fear it.

Determine the very best option

Very first option is the best as it clearly has more pros because as soon as a Customer Lifetime Worth is constructed the company will make money from it till that client lives and has buying power too. Plus, our target clients are the younger generation which are bound to live longer than the existing old age individuals. Corp's primary goal is to create commitment amongst its consumers and make them repurchase it from them and even purchase their different items.

Execution Strategy

• Targeting more youthful generation through social marketing, producing a relate to them like Pepsi do with music. And set the expectations sensible and attainable.
• A group consisting of best marketing and sales professionals need to be assemble, and both views must be considered prior to protecting the resources required to implement the plan.
• Thorough interaction of the strategy ought to be done as it is really crucial for everyone to be on the same page to make it work.
• Jobs and timelines should be build and communicated appropriately to each individual accountable.
• The manager should utilize a control panel which reveals the development of all the jobs which have been done or about to be done and by whom.
• The supervisor must keep an eye on and keep a continuous check on the private and general efficiency.
• Everybody should be willing to adjust midway since any new trend or policy might can be found in due to which all the things already planned need to be changed. It's better to have contingency plans currently prepared.
• At the end of the campaign the manager should communicate the outcomes and if effective ought to celebrate with the team.

Budget plan

This modification the spending plan allocation of many supervisors and various nations were unhappy and argued but the analysis done by the program was accurate and showed figures like North America and Russia growth possible warranted a 35% allocation while they were getting 45%. It truly assisted to relatively distribute the resources and capture more clients by spending more on ads on the high development potential areas of the world.

Princessa Beauty Products 5 Case Study Solution is a top 25 business in the world now and prepares to get ahead of Sony who sits currently at no. 20. Its consistent financial investment in R&D and innovative practices have moved them to new heights but for them its' just the start and they want to be amongst the top 3 brand names on the planet. They totally turnaround from almost going bankrupt during the Asian Financial Crisis to a world prominent brand, understood for quality and development. Their value chain and their core proficiency their manufacturing capability, along-with global brand name image building have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts need to be directed towards more youthful market amid the internal arguments about marketing and should develop Customer Lifetime Value as it will not only provide advantages now but will continue to reap it till the client life time. As the expense of retaining the client is more affordable than bring in a brand-new one.