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EB 2006 Business Report

1. Introduction Coraline Cosmetics, one of the world’s largest direct sellers in global cosmetics, fragrances and toiletries industry, has enjoyed this reputation since mid-1980s. However, with the rapid development in this industry, the way of consumer behavior and the consumer’s preference have changed dramatically, which leads to the fact that fewer women bought products sold door-to door and few teenagers and young women wanted to buy our products. What naturally comes is that only modest revenue and earnings growth have been achieved in a ten year’s time with annual sales growth of less that 1.5%. Now the company is in a very crucial point to make some big strategic changes.

2. Discussion
2.1 Branding Strategy A basic decision in marketing products is branding, in which an organization uses a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of other companies. In order to maintain the brand loyalty and win more consumers, a new brand strategy has to be carried out. We have to develop positive brand awareness and an association of the brand in consumer’s mind with a product class. Besides, we must inject new brand meaning in the minds of consumers, a functional dimension as well as a imagery-related dimension. As to the brand Coraline Cosmetics established over the past years, generally, it’s a brand with so many years and it won the trust from the consumers all over the world. It enjoys the reputation as the largest direct seller over the world. And the product they sell is trustworthy. However, the products they sell have little change over the years and now the biggest problem face is that the door-to-door sale has lost its fame to women nowadays. And because of the limited and constant product lines, the products have