SARBEC COSMETICS (C): NEW LONG-TERM STRATEGY FOR ITALY

This is the third of a three-case series (510-039-1 to 510-041-1). French SME Sarbec Cosmetics decided in 2002 to establish a subsidiary in Italy. Despite increasing demand and new business prospec ...

Author(s):

Véronique Boulocher

EDHEC Business School

Borislav Nikolaev

EDHEC Business School

This is the third of a three-case series (510-039-1 to 510-041-1). French SME Sarbec Cosmetics decided in 2002 to establish a subsidiary in Italy. Despite increasing demand and new business prospects, Sarbec had to struggle for profits. These difficulties could emerge from: the enormous retail costs; the insufficient demand for Sarbec's products; aggressive competition; and weak communication. Facing the danger of retreat from Italy, Sarbec Cosmetics had decided to conceive a markedly different marketing strategy in order to land some much needed profits. In the process management had to consider: the value of its own brands against the prospects of private label business; new distribution opportunities / retail partnerships; new ways of developing cheap and efficient communication; and danger from closely positioned competitors.

Type: Case Study
Date: le 01/02/2010

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