Trend Analysis and Recommendations for Amorepacific
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Memorandum
To: Partners and Senior Consultants of Naib-Zoob Consulting
From:
Date:
RE: Achieving Amorepacific’s growth objective by adding a product line in the U.S. and expanding to Brazil
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Since 2008, the economic downturn has slowed down the pace of the development in the cosmetic industry. Amorepacific Corporation, a Korean based cosmetics manufacturer, also earned much lower revenue than expected. I analyzed the changes in industrial trend and developed two recommendations for the company to facilitate its growth strategy in the recession. My recommendations are: 1. Adding a new product line in the U.S. 2. Expanding to Brazil.
Vision of AmorePacific Corporation
According to the company’s 2010 annual report, the growth strategy called “The Vision 2015” indicates that the company’s vision is to become one of the world’s top ten cosmetics companies (20). Considering the on-going impact of the economic recession, this goal is not easy to achieve. I analyzed industrial trends to find effective ways to meet the objective.
Trend Analysis & Recommendations
Based on my analysis, I developed two recommendations to achieve the growth objective of Amorepacific Corporation in the world-wide economic recession.
1. Adding a Product Line in the U. S.
Amorepacific Corp. uses country-specific strategies. In the United States, the company raises its image by focusing on the prestige brand lines such as Sulwhasoo and Amorepacific. However, the strategy is not sufficient to support the company’s growth objective because of the increased price sensitivity in the U.S. In my opinion, the company should introduce a new product line that is more affordable.
Price
____________________________________________________________________________________
-------------------------------------------------
Memorandum
To: Partners and Senior Consultants of Naib-Zoob Consulting
From:
Date:
RE: Achieving Amorepacific’s growth objective by adding a product line in the U.S. and expanding to Brazil
______________________________________________________________________________
Since 2008, the economic downturn has slowed down the pace of the development in the cosmetic industry. Amorepacific Corporation, a Korean based cosmetics manufacturer, also earned much lower revenue than expected. I analyzed the changes in industrial trend and developed two recommendations for the company to facilitate its growth strategy in the recession. My recommendations are: 1. Adding a new product line in the U.S. 2. Expanding to Brazil.
Vision of AmorePacific Corporation
According to the company’s 2010 annual report, the growth strategy called “The Vision 2015” indicates that the company’s vision is to become one of the world’s top ten cosmetics companies (20). Considering the on-going impact of the economic recession, this goal is not easy to achieve. I analyzed industrial trends to find effective ways to meet the objective.
Trend Analysis & Recommendations
Based on my analysis, I developed two recommendations to achieve the growth objective of Amorepacific Corporation in the world-wide economic recession.
1. Adding a Product Line in the U. S.
Amorepacific Corp. uses country-specific strategies. In the United States, the company raises its image by focusing on the prestige brand lines such as Sulwhasoo and Amorepacific. However, the strategy is not sufficient to support the company’s growth objective because of the increased price sensitivity in the U.S. In my opinion, the company should introduce a new product line that is more affordable.
Price
Cited: Ann Zimmerman. "Frontiers Of Frugality --- Shoppers Unable To Trade Back Up." Wall Street Journal 4 Oct. 2011, Eastern edition: ABI/INFORM Global, ProQuest. Web. 1 Oct. 2011. Amorepacific Coporation. 2010 Amorepacific Sustainablity Report. New York, NY: Amorepacific Corporation, 2010. Web. 1 Oct. 2011. “Beauty Beyond and Crisis – The Year in Review and Growth Concepts for the Future.” Euromonitor International, May 2011. Passport. Web. 1. Oct. 2011. “Beauty Beyond the Crisis –The Year in Review and Growth Concepts for the Future.” Euromonitor International, May 2011. Passport. Web. 1.Oct. 2011 “Brazil: Key Player in Global Beauty and Personal Care Growth.” Euromonitor International, Feb 2010. Passport. Web. 1. Oct. 2011. “Global Cosmetics and Toiletries: industry prospects for 2009 and beyond.” Euromonitor International, Aug 2009. Passport. Web. 1. Oct. 2011. Nicola Panteva. “Cosmetic & Beauty Products Manufacturing in the U.S.” IBISWorld Industry Report 32562, Aug 2011. Web. 1. Oct. 2011. "U.S. Demand for Cosmeceuticals to Reach $8.5 Billion." Global Cosmetic Industry 179.8 (2011): 30. Business Source Complete. EBSCO. Web. 1 Oct. 2011. World Bank. World Development Indicators 2010. Washington, WC: World Bank Group, 2010. Web 1 Oct. 2011