Luxor Cosmetics

 Luxor Makeup Essay

Luxor Cosmetics Case

Luxor Makeup is in a difficult situation in which changes need to be made. Presently there a few items which need quick attention. Every an evaluation of the account balance tendencies, their products on hand only boosts every year, for example: Lipstick's inventory increase is all about 20% annually; Nail Polish increase is around 20% each year, leveling out at $11 million in 2009 -2010. Their Creams inventory remains constant, since the cream's market is a completely different concept, it does not adhere to trend in innovation and changes so frequently as the other products. The surplus in inventory is a big downside since; previous year's items may not be any way you like this year in addition to the cost of storage area. For all these reasons their particular cash flow is much less in comparison with previous years creating that Luxor Cosmetics will keep increasing their particular bank loans, creating more debt, making it harder to pay out as 2011. A number of the strategies I believe that may help increase Luxor Makeup shrinking industry are: For instance , improving their marketing strategies, when you are more intense in their cream's campaign, focusing on the different potential clients and not restricting to the older ones just, but to incorporate women from 20 years outdated. They also should take advantage of the fact that in accordance to market analysis, during the last ten years nail enhance sales is usually significantly much larger that lip stick. Considering these details Luxor Cosmetic makeup products can increase their sales by promoting new colors that change together with the season, we have a large variety of hues, textures, colours and other trendy characteristics which can be promoted. Additional important improvements or tactics that should be deemed by Luxor Cosmetics is to try to get gone the old items by creating an online lower price web page, by which last year's products can be sold at a lower price concentrating on different consumers with different demands and incomes. This way their inventory would decrease and their cash flow will...