Calculations: DIVISIONS | REVENUES(MILLIONS) | %REVENUES | PROFIT/LOSS(MILLIONS) | %PROFIT | SKIN CARE | 3227.1 | 41% | 341.1 | 71& | MAKEUP | 2978.2 | 38% | 147.3 | 31% | FRAGRANCES | 1136.9 | 15% | (14) LOSS | -3% | HAIR CARE | 390.575 | 5% | 11.5 | 2% | OTHER | 55.4 | 1% | (6.3) | -1% |
. Backward, Forward or Horizontal Integration. Market Penetration. Market Development. Product DevelopmentSKIN CARE DIVISION (STARS II) | . Market Penetration. Market Development. Product Development. DivestitureMAKEUP DIVISION (QUESTION MARKS I) | . Product Development. Diversification. Retrenchment. DivestitureFRAGRANCE DIVISION (CASH COWS III) | . Retrenchment. Divestiture. LiquidationHAIR CARE DIVISION (DOGS IV) | |
Recommendations:
. Rely on the global brand awareness and build it further by endorsing celebrities from the local markets.
. Have tie-ups with beauty salons, clinics etc to push their brands.
. Using market research, find the brands that have been doing poorly and makes strategies to either improve it or close its operations. Having an idle brand will add on as a burden to the company.
. Do not have too many brands for the same product category since it will lead to cannibalization.
. Innovation is the key. Identify new customer needs like anti aging products and bring in products that suit the customers better.
. Focus more on