Luxor Cosmetic makeup products Case Luxor Cosmetics is in a difficult scenario in which adjustments need to be produced. There some items that need immediate attention. Per an evaluation of the balance trends, their particular inventory only increases yearly, for example: Lipstick’s inventory maximize is about 20% per year, Fingernail Polish maximize is about 20% per year, progressing out for $11 , 000, 000 in 2009 -2010.
Their Creams products on hand remains regular, since the cream’s market is a completely different idea, it does not follow a trend in innovation and changes so often as the other goods. The surplus in inventory can be described as big disadvantage since, previous year’s products may not be in fashion this year besides the cost of safe-keeping. For all these kinds of reasons all their cash flow is much less in comparison with previous years causing that Luxor Cosmetics retains increasing their particular bank loans, creating more personal debt, making it harder to pay out because 2011.
A few of the strategies I really believe that may help improve Luxor Makeup shrinking marketplace are: For example , improving all their marketing strategies, by being more aggressive in their cream’s campaign, concentrating on the different prospective customers and not constraining to the older ones simply, but to incorporate women coming from 20 years older. They also is going to take advantage of the simple fact that in accordance to market analysis, during the last ten years nail shine sales is definitely significantly greater that lipstick.
Considering this info Luxor Makeup can increase their sales simply by promoting new colors that change with the season, there is also a large variety of tones, textures, colours and other trendy characteristics which can be promoted. Additional important improvements or approaches that should be regarded as by Luxor Cosmetics should be to try to get reduce the old merchandise by creating an online discount web page, by which last year’s products can be sold at a lesser price focusing on different costumers with different requirements and earnings.
This way their inventory could decrease and their cash flow would increase. Also they should foundation their production in outlook analysis of demand, that way, they wouldn’t have so much inventory remaining from previous seasons. Being a conclusion I could say that Luxor Cosmetics can be on time to make the necessary becomes bring their business back to life. Innovation is the word that needs to be included in every single new product every advertizing advertising campaign, they should develop new lines and new items, maybe possibly different product packaging to impress consumers.
