Business Memo: Perfume Mania Holdings Inc. WSJ.com

Business Memo: Perfume Mania Holdings Inc. WSJ.com

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  • Italics are errors pointed out by my marketing professor.
  • Not a bad start but room for improvement.
  • Most notably. I didn't give a marketing recommendation. 
  • My marketing recommendation would be to use an affiliate social media marketing method. Build one on one relationships. Free samples and continuity memberships for fragrance categories. Marketing 75% online.
  • APA Style format for citations at the end.
  • Next marketing business memo will be near perfect.

 

 

Memo

To: Management Staff

Date: September 9, 2017

From: Daniyel Bingham

Subject: Perfume Mania’s Options After Bankruptcy Protection

The purpose of this memo is to recommend an exit strategy for Perfume Mania Holdings Inc., once the company has completed the bankruptcy process. (short source?)

Background Good info

The company is currently $119 million dollars in debt and has plans to close 64 of 226 store locations. This is in addition to the 100+ stores that have already closed since 2015, with leases continuing to inflate annually. Perfume Mania Holdings Inc. plans to restructure the company around the retail locations that are bringing in the most revenue.

Key Findings

Rent and leases for mall locations will continue to inflate, even though mall traffic will continue to decline. Online shopping will continue to grow as more and more shoppers use their phones to make online purchases. Changing trends within the fragrance and beauty category creates (needs to agree with trends) market no longer visits physical retail locations for items that do not require the customer to try on clothes.

Alternatives?

Recommendations

It is recommended that Perfume Mania Holding Inc. continue to close all 226 stores while operating exclusively a sole distributor of fragrances and beauty products. The current business model of conducting business in mall retail locations has been the largest contributing factor towards the company’s bankruptcy. Within the next 5 years, the revenue of the better performing stores will decline as customers will continue to shop online.

Employees in sales and customer service positions (But this isn’t markting!) can be offered remote online customer service and sales positions, that allow them to earn income as a commissioned affiliate. This will eliminate the overhead expenses of operating physical retail locations, while retaining a percentage of employees that have proven customer service or sales skills.

If you have any questions or comments, please contact me at Daniyel@mbnymedia.com

Daniyel Bingham

(Rizzo, 2017)  Not APA style