The Contribution of Margin Approach to Income Essay

In the contemporary business environment, the development of effective marketing strategy is closely intertwined with effective accounting. In this regard, it is possible to the Lovely Scent Perfume Company’s case, which reveals a number of challenges F. Fragnrance, the CEO of the company, had to deal with. In actuality, the company faces a number of problems and has to optimize its organizational performance fast. Moreover, the company needs to overcome negative effects of the consistent deterioration of its marketing performance and to regain its customers. In such a situation, the company needs to elaborate a solution that can help the company to minimize negative effects of the crisis and to recover as fast as possible.
First of all, it is important to place emphasis on the fact that, among the suggested solutions, there is no ideal one. In this regard, it is possible to recommend F. Fragrance to undertake several steps to improve the marketing performance of the company and to improve its financial performance. To put it more precisely, one of the major goals of the company at the moment is cutting its costs substantially. In this regard, it is possible to cut costs through the improvement of the production process and introduction of changes, which can help the company to save on the production. For instance, the decrease of the size of standard bottles by 10% ill wallow the company to save on each bottle. Even though this step may decrease sale rates of the company but still it can help the company to save costs.
At the same time, the company should attract customers to increase its sale rates. At this point, the decrease of the price of items by 20% may be a good decision, especially if it is applied in a combination with the decrease of the bottle size by 10%. On the one hand, the decrease of the price will attract customers, whereas on the other hand, this will explain customers the reason for reducing the size of the bottle. In such a way, the company will optimize its organizational performance because it will save costs and increase sale rates. In fact, the increase in sale rates will cover the potential loss after the reduction of the bottle size. As a result, the company will improve its position in the market and will be able to regain its financial position. In addition, the aforementioned strategy will help the company to balance its marketing performance and financial performance.
Thus, it is obvious that the company needs significant changes and the most efficient way to complete the change successfully and help the company to recover is to cut costs through the reduction of the bottle size and to increase sale rates through offering customers substantial discounts and decrease the price of an item by 20%. The combination of these two steps will be effective and bring positive outcomes.