a. What were the reasons for Sa Sa’s early success? Why did customers like it?

What were the key

operational success factors?
a. Low Costs - The organization had the option to give huge limits to the clients.
The greater part of its product were equal imports, which on normal created a
gross edge of 15%-20%. The equilibrium of its stock was obtained from approved
specialists which was more costly however it conveyed a higher gross edge of
30%-40%.
b. Broad item choice - Item range differs from 600 worldwide brands and 90 house
brands. Extensive variety of in-house brands will drove SASA's future substitute
the business sectors.
c. Convenient retail stores All the retail locations are strategically placed and they
even had the choice to get the item from different stores assuming any SKU is
unavailable at a specific stores.
d. Hong Kong's great economy with a rich populace of 7.2 million individuals and a
for every capita pay of more than $25,000
e. Absence of dealer boundaries, straightforward guidelines, deeply grounded law
and order and opportunity of capital development

b. A number of changes have occurred since Sa Sa became successful. Some were the
natural consequences of expansion and some were the result of management decisions.
Identify five or six of these changes and say whether each is a positive or negative
change. For those that you consider negative, suggest a correction. (In this question, leave
aside issues raised by the strategic decisions summarized in Figure A)

Good

At the point when contest duplicated their recipe for progress, they began growing the business
in an upward direction into conveying more in-house brands. It gave more command over it
supplies and it likewise empowered the organization to catch the alluring benefits that would
have been generally procured by the wholesalers or merchants. In-house brands had and normal
edge of more PROFITS at 60%. They included private mark brands as well as included brands
for the organization had restrictive appropriation privileges.

They steadily decreased this to 22,000 from 35,000 SKU levels as they had understood that 20%
of the brands were creating 80% of the deals volume. This assisted them with finding success
and work on their general edges. The design of the store was great in that they had the option to
upsell the more expensive merchandise to clients while they were at the counter. This
additionally forestalled shop lifting as superior restorative were gotten in counter shows. They
likewise leased space to brands who favored their own space which assisted them with acquiring
benefits simply by giving space.
 Bad

Expanded media inclusion and public recording of the organization uncovered the organization's
equation for progress which was then utilized by imitators to flood the market. New rivalry for
imports from different beauty care products increased limits which caused an absence of supply.
The aggregate purchasing force of these retailers likewise constrained approved wholesalers to
agree with the solicitation which implied that the organization couldn't give limits to the clients.
This implied that they lost deal. They ought to have anticipated that their mystery will be
uncovered once they became well known so they ought to have considered Plan B to recuperate
quickly from this.

The choice to grow its activities in retail networks like Singapore, Malaysia and Taiwan they
needed to close a portion of its retail outlets which hurt the organization picture. They might
have trusted that the Asian monetary emergency will pass and might be later on extended their
business to different domains. They might have set aside huge time and cash as they in the end
needed to reevaluate a portion of its leases to loss of brand picture.

Sasa's evaluating system was to offer incentive for cash, which implied it lost to contender were
purchasing lower estimated items on the lookout and consequently were more effective on the
lookout. They ought to have had more lower evaluated items in their reach as they were losing
client to rivalry.

c. Review the market research data contained in the text and the exhibits. Suppose you are
an executive with the market research firm that performed the study. What are the most
important three insights Sa Sa management should understand from the data?

Comfort searchers are the people who look for accommodation while doing the shopping. It very
well may be house-spouses, temporary specialists and so on who would rather not burn through
that much time doing shopping. The have lower pay levels as contrasted and the other two
gatherings. The main thing a buyer needs is numerous outlets and helpful store areas. Sa scored
decidedly in these boundaries yet there generally notoriety is negative. In any case, what Sa
misses is most minimal costs where contest is again miles ahead. So they need to deal with the
most reduced costs point.

The primary thing that these shoppers need are items that are stylish. They additionally require
expansive brand decisions. Sasa brand scores adversely on both these boundaries when
contrasted and Bonjour. Subsequently it necessities to zero in on additional popular items in its
item list/portfolio to acquire interest of the clients. This will expand deals and assist them with
scoring great on relative execution KPI. Dropping down the line we can see that the clients need
a constant limited time offers and least cost too. However, in this boundary likewise SASA brand
 is scoring adversely when contrasted and Bonjour brand.Going against the norm, the classes
wherein the client inclination is the least i.e they have less importance for the client as far as
picking, Sasa brand is in front of the opposition.

Primary focal point of the client is on stylish items. They likewise need assortment of the items
which are estimated lower notwithstanding consistent advancements with the goal that they can
routinely purchase from the store. However, SaSa is absent on the center boundaries here and the
opposition is solid and winning here. A better technique taking care of these boundaries will
assist them with pivoting the table and win more clients subsequently expanding their deals
impressively.

d. Consider the strategic initiatives summarized in Figure A. In introducing the matrix, the
case says, “To capitalize on Sa Sa’s brand equity, customer base, operational efficiency,
and management expertise…”. For each of these four factors (brand equity, customer
base, operational efficiency, management expertise) say whether you believe it will or
will not enhance the prospects of success for the initiative. As a board member of Sa Sa
do you approve the initiatives?

SASA Cosmetics

To further develop brand value they sent off mass Chinese wellbeing food market for the sake of
Yuerong Excellence Preserver with a selling cost of $45. To make it work they ought to enlist
somebody who has worked in this kind of business with the goal that plan of action is awesome
and they can acquire quick clients. As these clubs will take special care of mass business sectors
it tends to be additionally used to sell its mass items in these Spa's which will build deals and
edges.

La Collins

Brand value can be worked on additional in European market as it's a Swiss brand. With the
kickoff of three stores in 2000 and 2001 client base of the organization has expanded by 20%
and presently contributing 7% of it's yearly turnover. A few individuals from La Collin can be
made heads of Sa brand generally as they can help change their forthcoming and get them to how
to function in the top of the line market locally to win additional clients from rivalry.

Philips Wain

With 58% of Philips Wagon Worldwide they have dealt with 9 wellbeing and excellence clubs
and more than 20,000 individuals however out Asia. It will help in building the brand in
additional Asian nations. With the underlying client base of 20,000 individuals, it tends to be
additionally expanded by joint advancement and dedication programs. Proficiency will be
expanded as items can be sold in these excellence clubs focusing on various costs of clients. This
will assist with expanding the likely advantages to the organization