Luxor Cosmetics

Luxor Cosmetics Case Luxor Cosmetics is in a difficult situation in which neuters unavoidableness to be made. There a few items that need immediate attention. Per an evaluation of the account balance trends, their line of descent only increases every course of instruction, for example Lipsticks inventory increase is about 20% per year Nail Polish increase is about 20% per year, leveling out at $11 one million million in 2009 -2010.Their Creams inventory remains constant, since the creams grocery store is a totally different concept, it does non follow a trend in innovation and changes so often as the other products. The profusion in inventory is a big disadvantage since last years products may not be in style this year in addition to the cost of storage. For all these reasons their bills full stop is less in comparison with previous years causing that Luxor Cosmetics keeps increasing their bank loans, creating more debt, reservation it harder to pay out as 2011.Some of the strategies I believe that may help improve Luxor Cosmetics shrinking market are For example, improving their marketing strategies, by being more aggressive in their creams campaign, targeting the different potential customers and not limiting to the older ones only, but to include women from 20 years old. They too should take advantage of the fact that according to market research, during the last decade nail polish sales is significantly larger that lipstick.Considering this information Luxor Cosmetics can increase their sales by promoting sassy colors that change with the season, there is a large variety of shades, textures, colors and other trendy characteristics that can be promoted. another(prenominal) important changes or strategies that should be considered by Luxor Cosmetics is to try to get rid of the old merchandise by creating an online discount web page, in which last years products can be sold at a lower price targeting different costumers with different needs and incomes.This way their inventory would decrease and their cash flow would increase. Also they should base their production in forecast analysis of demand, this way, they wouldnt have so much inventory left from previous seasons. As a conclusion I can vocalise that Luxor Cosmetics is on time to make the necessary changes to bring their business back to life. Innovation is the word that should be included in every new product and every advertizing campaign, they should develop new lines and new products, maybe even different packaging to impress their customers.