The Eu Yan Sang Company Marketing Essay

One of the strategies used by the Eu Yan Sang Company was place strategy. Distribution channel defined as the system of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user.

Eu Yan Sang uses the direct channel where the goods are transported directly to the consumers. They use the e-commerce strategy. Eu yan Sang sells their goods online where customer can purchase their product directly from their website. Their website has a clear picture and the details of all their products. This can enable customer to save a lot of time as they don’t have to go to the retail shops to purchase them. In addition, customer can directly provide their feedbacks if they aren’t satisfied with the products. The e-commerce strategy also allows Eu Yan Sang to reach out to a larger market segment where they can increase their sales. Besides that, customers can know about the latest discount offered by Adidas thus enabling them to purchase at the lowest price.

The channel that Eu Yan Sang uses to market their products is the retailer channel. From the producer, their goods reach the consumer via the retailers.

Diagram 1.0: The distribution of goods from the producer to the consumer

First of all, Eu Yan Sang Holdings first shop opened in Gopeng, Perak, named Yan Sang in the years 1879. Weng Li Sdn Bhd is the manufacturing arm of Eu Yan Sang Holdings office in Malaysia. Their manufacturing activities are carried out in two of their Good Manufacturing Practice certified factories located in Hong Kong and Malaysia.

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Eu Yan Sang Holdings turning the business into retail network in the year 1990. As of 30 September 2012, Eu Yan Sang Holdings also own 305 retail outlets in a foreign country and located in Australia, China, Hong Kong, Macau, Singapore and our country. In additional, 93 retail outlets and located in the major cities of Malaysia such as Johor, Kuala Lumpur, Melaka, Negeri Sembilan, Pahang, Perak, Pulau Penang, Sabah, Sarawak and Selangor, while Selangor has most retail outlets. In additional, their products are available in thousands of pharmacies, supermarkets, hospitals, health clubs, medical halls and spas worldwide.

Nowadays is high technological era, most people shopping at home, buy products online. Eu Yan Sang able to chase footstep of high era, they opened stores to customers. Nowadays customers can buy their products at home. In additional, they provide free delivery to certain areas only apply to the purchases more than RM200 in a single receipt.

Finally, Eu Yan Sang will store its final goods in a warehouse before being distributed to sale dealership or export to foreign countries. (Please refer to appendix) The company normally will use railroads, containers or motor carriers to transport their products.

Promotion Strategy

Eu Yan Sang is very clear about what are the objectives that they need to achieve and their mission in order to promote their products in Malaysia and increase the sales quarterly. Eu Yan Sang wants to let Essence to hold the market share and in order to fulfil this mission, various marketing strategies are being implemented.

Another strategies use by the Eu Yan Sang Company was promotion strategies, these strategies used by the Eu Yan Sang Company had successful to introduce Essence into the market. Advertising, public relations, personal selling, sales promotion and sponsorships are their promotional strategies. With this, Essence aims to attract more consumers and increase its demand besides holding more market share and earning more profits.

They use Advertising to inform or remind public their products and let the public know the details about the products. Advertising defined as the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. One of the advertising media used by the company is advertise on TV. A great deal of information is published about their product. Besides that , other advertising media used by the company is newspaper.

The second strategy is public relations. It means the methods and activities employed to establish and promote a favourable relationship with the public. For instance, Eu Yan Sang Company is not only earns profits, it also doing some philanthropic act, one of them is provides Eu Yan Sang TCM Sponsorship Award lets needy students to apply. The Eu Yan Sang TCM Scholarship Award is open for application for students who are undergraduates enrolled in the double degree program in Biomedical Sciences and TCM at Nanyang Technological University, Singapore. Besides that, Eu Yan Sang started their flagship charity drive in Malaysia for the “One Year One School” project in the year 2005. The charity supports the building and refurbishing of Chinese primary schools (Eu Yan Sang, 2012). ( Please refer to appendix) Besides that, Eu Yan Sang Company contribute $12,000 to help Japan’s earthquake and tsunami mishaps through Mercy Relief in Singapore (Eu Yan Sang, 2012)

Moreover, the third strategy is personal selling. The definition of personal selling is face-to-face selling in which a seller attempts to persuade a buyer to make a purchase. Personal presentation by the firm can build a good relationship with customers.

The fourth is sales promotion. Sales promotion is defined as the activities or techniques intended to stimulate immediate demand among customers for a product or service. Eu Yan Sang Company also has uses, free voucher, free gift, cash discount premium rebate to sell Essence. For example, Eu yan Sang’s 133th anniversary had a cash discount up to 50%. Besides that, the free gifts which come with their products are bowl, glass and Philips 2-H washable battery shaver. (Please refer to appendix)

Last but not least, the strategy is sponsorship. Sponsorship is another way to promote their products and attract public. For example, they supported the Pudu Community Art Project to identify and promote the uniqueness and cultural values of the Pudu community through various outreach programmes (Eu Yan Sang, 2012). Besides that Eu Yan Sang sponsored a Chinese movie “Great Day”. (Please refer to appendix)