What role has e-commerce played in kiehls strategy so far

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Reference no: EM133609926

Assignment:

1. According to the case writers, Kiehl's had a 15% annual sales growth goal. This translates to doubling of sales over the next five years (from the time the case was written). What are the primary challenges Kiehl's faces as it seeks to attain this growth while maintaining profits (as a % of ales) near 20%?

2. Hamilton sees Kiehl's as the jewel of the crown in her Luxe portfolio and retail partners really want it. None of the other seven luxury brands in the Luxe portfolio have their own free-standing stores and as a result they rely on these retail partners for sales. How does that impact your thinking about the channel strategy for Kiehl's?

3. What role has e-commerce played in the Kiehl's strategy so far? What role would you recommend it play over the next five years as Kiehl's pursues its goals?

4. What would the optimal channel structure for Keihl's look like in five years? Aside from e-commerce, how many Kiehl's Free stading Stores (FS) and independent retailer "doors" do you foresee? What roles do they play? Kiehl's sales are generated as follows: 48% FSS, 42% Retail Partners (RP) and 10% e-commerce (case p. 2). What should this look like in five years?

Please explain each question. This is the Kiehl's Since 1851 case.

Reference no: EM133609926

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