Almusbah Group Management

In general, the retail marketplace is positively related with the region in the economy from the local country. The Saudi citizens eat perfumes more than average compared in the individuals of different countries. This can be due to cultural and religious reasons. Because the weather is hot most on the year it became the norm that folks wear different fragrances. The religious aspect of perfume consumption happens mainly because Friday is regarded a day wherever Muslims gather in mosques for about an hour and do their afternoon prayers. During such times, it is advised that men and women come clean with nice clothes and smell good.

As the population of Saudi Arabia grows it's expected that the consumption of perfumes will also grow. From statistics I discovered over a official web site on the Saudi Embassy in Washington D.C, the population of the nation is growing at an annual rate of 3%, and 60% from the population is under 18 many years old. These a couple of figures clearly offer the capacity of the market. The local market is growing, and as the average age gets to the twenties the consumption of perfume will also grow.

B). There are numerous leading brand names in the high price fragrance market. From France you'll find brands for instance Chanel, Cartier, Christian Dior, Elizabeth Arden, Estee Lauder and quite a few others.

In order to ideally monitor inventory levels of the wholesale division, an right purchasing system that actively involves sales force input on merchandise ought to be established. Also needed would be various levels of planning that begins with sales and ends at the managerial level. This sort of planning would make the different levels on the division share responsibility and accountability for new goods introduced towards the market. It would also tie the sales force to specific targets with respect to quantities sold.

B). Entrants: Inside the branded fragrance industry barriers to entry are low. Anybody that has the know how and also the capital can enter the industry and be a competitor. For the mass marketplace segment, entering the marketplace requires large investment (warehouses, personal computer systems, distribution channels, and sales force). These investments make exiting barriers high.

Almusbah sales in 2001 are nonetheless higher than its second biggest competitor MS by 12 %, but inventory turnover of Almusbah is 1.37 times less than MS. Almusbah average age of inventory in days is 376 compared with 156 days for MS. This insufficiency of inventory management for Almusbah compared with MS had a direct effect on a 4% difference in web profit.

In mass market perfumes (low price perfumes) there are numerous modest manufacturers that follow the 3 primary industry leaders. These three leaders are Beautimatic, European Perfume Works LLC, and Cindy Shahed. Each of these manufactures tries being a low cost leader.

The promoting strategy that I am proposing for Almusbah branded perfumes consist of the followings:

A loose reordering system can be responsible for ones high inventory levels from the wholesale division. I am going to create a reordering procedure that monitors inventory levels and reorders products and solutions at the correct time in calculated quantities. The technique is simple.

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