Question 1a) Based on the information provided in the L'Oreal case, Yue Sai has struggled to grow and capture additional sales in China's high-end cosmetics industry. In the past, L'Oreal has attempted to position Yue Sai in several ways that can be considered detrimental to the company's image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which wishes to "deliver on Yue Sai's long-standing brand promise that 'No one knows Chinese skin better than Yue Sai,'" offers the highest probability of success for the company capitalizing on countless new trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a high-end cosmetics line. Unlike other high-end cosmetics, Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women. Yue Sai saw some success and hope in the new Vital Essential line that used traditional Chinese medicine and, therefore, led to higher than average repeat purchases. Continuing to focus the strategy on traditional Chinese medicine should bring significant benefits to Yue Sai. Another suggested strategy would be to completely reposition Yue Sai, however this is not recommended. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately did not provide a clear path strategy. Repositioning would show uncertainty in the company, lowering the value of the brand in the eyes of the consumer. b) Three problems that can arise from the differences in Western and Eastern marketing are: cultural, aesthetic and media platforms. Culturally, Eastern views on cosmetics...... middle of paper...... large retail cities for the prestige of having a store in the area, such as downtown Manhattan.d) In accordance with the positioning Yue Sai for the modern Chinese woman Yue Sai should promote her cosmetic lines on various social media, for example Weibo. Promotion on Weibo would give better exposure to young women who represent the average cosmetics consumer. Furthermore, it would be in Yue Sai's best interest to continue his recent partnership with Du Juan. Du Juan, who represents the face of the new Yue Sai, embodies the positioning strategy aimed at the modern Chinese woman. Yue Sai should also promote the Vital Essential line and incorporate more traditional Chinese medicine into its campaign. The Vital Essential line appears to be the only bright spot in Yue Sai's repertoire and has the potential to help Yue Sai become more profitable.