case solution of Happy Christmas company

3. Situated in YIWU the export hub in china
Products are directly related to the charismas.
YIWU have market share of 55% of exports in the
world.
Happy Christmas Company was founded 10
years ago

5. BRAZIL
CHINA ARGENTINA
PESTLE
COLOMBIA VENEZUELA

6. POLITICAL
ENVIRONMENTAL
ECONOMICAL
FACTORS
PESTLE
LEGAL FACTORS SOCIAL FACTORS
TECHNOLOGICAL
FACTORS

9. Relatively
stable
industry.
Favorable
Market Chinese
knowledge. consumer
behavior.
Favorable
location Yiwu.
Highly
Strong export specialized
history. manufacturing
techniques.

10. QUALITY ISSUES.
REDUCTION IN HUMAN CAPITAL.
DISTURBED BRAND IMAGE/ DAMAGED REPUTATION.
SEASONAL BUSINESS.

11. Product diversification.
Market diversification.
Mergers, joint ventures & piggy
backing.
Targeting other foreign festivals.
Large domestic consumer
market.
Co-branding

14. RELATIVE MARKET SHARE
HIGH LOW
MARKET GROWTH RATE HIGH
BAUBBLES,
LOW CHRISTMAS
TREES

16. HAPPY CHARISMAS COMPANY IS CURRENTLY
FOCUSING
USA EUROPE RUSSIA

17. POTENTIAL FOREIGN
MARKETS
South American
New Zealand Australia
countries
Brazil
Argentina
Venezuela
Colombia

18. Dominant religion of
REASON TO SELECT THESE
Christianity
Other main reason is Triad
COUNTRIES Same buying behaviors
Mature, profitable and stable at Free trade agreement of the
the same time Asia Pacific (FTAAP)
Different free trade agreements
Asia Pacific Economic
between China and South
Cooperation (APEC)
American countries
China South America
(Economic Forum)

19. Market Penetration
Product
Development
Market
Development
Diversification

20. EXISTING PRODUCTS NEW PRODUCTS
EXISTING MARKETS
RED ENVELOPE,
BAUBBLES, CHRISTMAS EASTERN BUNNIES,
TREES HALLOWEEN MASK
NEW MARKETS
BAUBBLES, CHRISTMAS EASTERN
TREES BUNNIES,HALLOWEEN MASK

21. Eastern Bunnies
Halloween
masks
Chinese Red
Envelope

22. CURRENTLY
USA EUROPE RUSSIA
FUTURE
SOUTH AMERICA CHINA USA EUROPE RUSSIA
Brazil
Argentina
Venezuela
Colombia

23. Carl Star International Group (HK) Ltd (Sea and Air)
Sea bay International Freight Forwarding Ltd (Sea)
FedEx International Shipping Ltd (Sea and Air)
Providing low per unit rates as well additional value added features.

25. Fired its 300
employees
Need to have
specialized and Higher wages of
experienced labors
people. ISSUES
REGARDING
HUMAN
RESOURCE
Rising or
appreciating
Low profits
tendency of
Chinese Yuan

26. From
China
Large
human
capital
HIRING OF
STAFF
Aware of
their
market
Buying Culture
behavior

28. Skilled Labour will be having
“Contracts” with Happy Charismas
Company and they will be considered
as the permanent employees of the
company.(Engineers, Supervisors and
Managers)
Unskilled Labor will be having
“Daily Wage Rates” and they will
be considered as temporary
employees of the company (labor
force).

29. Apprenticeship
Job rotation
Job instruction training
Informal learning
On the job training

32. LOANS FROM
DIFFERENT
SOURCES

34. 2011 2012
(Projected)
SALES 12,880,833 18033166
GROSS PROFIT 4,327,327 6,913,608
PROFIT AFTER 4,179 1,273,736
TAX
EARNING PER 0.010 2.19
SHARE
TOTAL ASSETS 25,663,254 33,802,074
TOTAL 25,663,254 33,802,074
LIABILITIES /
OWNER
EQUITY

35. Ratio 2012 2011
(Projected)
GROSS PROFIT MARGIN 38.34% 33.60%
PROFIT/LOSS MARGIN 7.06% 0.03%
RETURN ON COMMON EQUITY 23.09% 0.11%

37. PRODUCT
Charismas Halloween Eastern Chinese red
Baubles
trees masks bunnies envelope
PRICE
Different pricing strategy
PLACE
China South America
PROMOTION
Different strategy

38. Words of
mouth
Using the
E-commerce
lucky red
Follow-up
Advertising
with client
Direct
Sales pitches
marketing
Events

39. Words of E-commerce
mouth

43. CONCLUSIONS

44. Enhance the quality of their products
Company should focus on business to business (B2B) in South America
Company needs to focus on Uppsala model
Company needs to focus on their Human Resource
Company should be targeting other festivals
It’s time to change; company should change their name
Company should focus on direct marketing in china and indirect
promotional strategies for South America.
In the coming future, the company should focus on USA and Europe

46. THANK YOU