CASE_STUDY_FINALS.docx.pdf

INTERNATIONAL BUSINESS AND TRADE
CASE STUDY: ASIAN YUPPIES-HAVING IT ALL
Young, urban professionals (Yuppies) in Asian markets appear to have found the right combination for
“having it all.” Due to high housing costs, most young people continue to live with their parents after
starting work and even after getting married. Income from their high-paying professional jobs is
therefore available to spend on a wide range of expensive, upscale consumer items such as cars, clothes,
consumer electronics, and club memberships. Prestigious European brand-name apparel is the most
sought after, such as Ungaro, Hugo Boss, Ermenegildo Zegna and Gianni Versace.
In the Sunrise Department Store of Taipei (Taiwan) Timberland deck shoes sell for $172; Ralph Lauren
shorts for $90; Allen Edmonds shoes for $306; and Giorgio Armani sports jacket for $1,280. Dickson
Concepts of Hong Kong concentrates on luxury brand name products such as Bulgari and Hermes
watches, Guy Laroche and Charles Jourdan clothing and accessories, and a variety of Ralph Lauren/Polo
products. Sales have grown 50 percent each year for the last five years. Tang’s of Singapore takes
upscale shopping one step further by targeting a subgroup of Yuppies which it calls NOPEs-not
outwardly prosperous or educated consumers- whose goal is to create an understated, discreet image of
wealth and success.
Not all Asian Yuppies are able to spend extravagantly even though they want to project an upscale
image. Seagrams launched a whiskey in Seoul South Korea called “Secret.” It sold for $9 a bottle and
achieved a 5 percent share of the total whiskey market, against the big-name brands of Chivas Regal and
Johnnie Walker Black Label, which usually sell for about $100 a bottle. Also in South Korea, Hyundai
introduced the flamboyant, brightly-colored Scoupe sports car for $10,000, aimed at those Yuppies who
cannot yet afford a BWM.
Surprisingly, Asian big-spenders may not be considered wealthy by Western standards. As an illustration,
average annual income in 1995 for a 32-year old banker ranged from $12,000 in Bangkok, Thailand, to
$18,000 in Taipei, $31,000 in Seoul, $32,000 in Singapore and $35,000 in Hong Kong. Nevertheless,
Yuppies’ incomes have been rising in these markets by 15-20 percent annually in recent years. Other
factors that promote big spending are relatively low taxes, fringe benefits such as company cars, and
housing allowances, and big end-of-year bonuses. This relatively high level of disposable income
becomes even more significant when one remembers that there are about a million people in their 20s
and 30s in professional, managerial, or technical jobs in the four markets of Singapore, Hong Kong,
Taipei, and Seoul. In addition, single, young, college-educated women in Japan are rapidly gaining a
worldwide reputation as conspicuous consumers.
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CASE ANALYSIS (SIMPLIFIED FORMAT):
I. What is the Problem?:
Due to the high cost of housing, most young adults continue to live with their parents even after
they have started working or even after getting married. The problem is that young people who
work in urban settings and are professionals in Asian markets have discovered the formula for
"having it all." They are able to buy a wide range of pricey and upscale consumer items, such as
membership fees, apparel, gadgets, and automobiles, thanks to the high salaries they make in
their professional employment.
II. What are the Objectives that you want to achieve?
Analyzing the factors that influence Asian Yuppies' purchasing power and identifying strategies
for companies to enhance their sales are the goals of this case study.
Long Term: (beyond one year)
• In the long run, it is intended that this case study will provide insights into this market
segment's consumer behavior, enabling businesses to better target their goods and services to
Asian Yuppies' needs and wants.
Short Term: (within one year)
• In the short term, the focus is on developing strategies for businesses to reach this market and
understanding the purchasing power of Asian Yuppies.
III. SWOT ANALYSIS: Identify different factors.
Watch the video: https://www.youtube.com/watch?v=JXXHqM6RzZQ
Strengths-(controllable/positive/inside)
1. Because housing is so expensive, most young adults stay with their parents after starting
their careers or even after getting married. Consequently, there is more money available that
may use to buy more things.
2. The most sought-after clothing items are manufactured by prestigious European brands, such
as Ungaro, Hugo Boss, Ermenegildo Zegna, and Gianni Versace.
3. Young urban professionals in Asian marketplaces have discovered the perfect combination
for "having it all," and they are capitalizing on the opportunity.
Weaknesses-(Controllable/negative/inside)
1. Not all Asian Yuppies can afford to buy expensive things even though they have high-paying
professional jobs.

2. Some Asian Yuppies who spend a lot of money might not meet the standards of riches in
Western countries.
3. The comparatively high level of discretionary income might become even more noteworthy
when it is considered that there are roughly one million persons in their 20s and 30s employed
in professional, managerial, or technical occupations throughout the four markets of Singapore,
Hong Kong, Taipei, and Seoul.
Opportunities (uncontrollable- positive/outside)
1. At a price of under $10,000, Hyundai's flashy and vividly colored Scoupe sports vehicle,
flamboyant, was marketed for yuppies who do not yet have the financial means to purchase a
BMW.
2. Women in Japan who are single, young, and college-educated are gaining a reputation for
being conspicuous consumers worldwide.
3. It's feasible that a successful strategy will require market segmentation to draw in a subgroup
of yuppies known as NOPEs who are not well-off or educated.
Threats (uncontrollable-negative/outside)
1. There is a possibility that Yuppies will spend less money which will result in a global
downturn in Asia.
2. Possibly, due to the rising earnings of Asian Yuppies, there may be more rivalry for luxury
products.
3. There is a possibility that inflationary pressures will emerge in the economy as a result of
increased spending by yuppies.
IV. Alternative Courses of Action: (Possible Solutions, Not less than 3)
ACA Number 1:
The first alternative strategy would be for companies to focus on selling less expensive yet
allowing yuppies to project an image of luxury, like Hyundai's scoupe sports car, Flamboyant.
This serves as an illustration of a different path of action. This can mean highlighting the
products' suitability for yuppies on a budget or who want to stand out without breaking the bank.
However, this might reference yuppies who desire to stand out without spending much money.
Advantages:
It helps businesses in reducing expenses. Yuppies frequently want high-quality products but may
not be willing to pay a premium for them. As a result, companies can lower their operating costs
by selling more affordable products yet still meet yuppie requirements.
It helps businesses draw in yuppies who are cost-conscious. Yuppies typically desire to appear
wealthy, even though they may not be willing to shell out a lot of cash for various items.
Consequently, yuppies could be drawn to less expensive things that still allow them to project a
specific image.

Disadvantages:
The quality of the goods offered here is not guaranteed. Because yuppies frequently desire high-
quality goods, but they are sometimes unwilling to pay a higher price for the quality they want,
businesses often find that they have a choice but to sacrifice quality to maintain competitively
pricing.
There might not be much of a market for these products. Yuppies frequently desire to project an
image of riches. Therefore it's probably they won't be interested in more affordable items that are
more affordable.
ACA Number 2:
Companies might employ a tactic to focus on peddling goods that yuppies like, such as designer
clothing from Europe. It is a different course of action. It can entail forming business alliances
with well-known European corporations or marketing goods with a similar design sensibility.
Advantages:
The fact that there is a great demand for these goods is the first benefit. Businesses may be
able to maximize by appealing to this market since yuppies are willing to spend a large amount
of money on goods they perceive to be of high quality.
The second benefit is that selling these products is simple. It may be relatively easy to sell a
product if it is perceived to be well-liked by this group because yuppies are frequently quite
susceptible to being influenced by fashion and the demands put on them by their peers.
Disadvantages:
The products could be highly pricey. Businesses may need to charge higher prices to make a
profit from selling to this target market because yuppies are often ready to pay more for things
they think to be of higher quality.
The market can become quite competitive when it comes to these products. It can be
challenging to stand out from the competition because many businesses are competing for
yuppies' business.
ACA Number 3:
A third alternative would be for companies to focus on selling goods that are well-liked by
young, single Japanese women with college degrees. This can entail working with Japanese
companies or providing visually comparable goods to those brands.
Advantages:

The products could be financially successful. Businesses that target this market have the
potential to earn a massive amount of income because these clients are often willing to pay a
more excellent price for things that they think to be of higher quality.
These products are in high demand. It may be relatively easy to convince these ladies to buy a
product if it is seen as well-liked by their community because they are frequently highly
susceptible to being influenced by fashion and the pressures put on them by their colleagues.
Disadvantages:
There may be fierce competition for these products on the market. It can be challenging to
stand out from the competition because several organizations frequently compete for these
women's attention.
The cost of the products could be pretty high. Businesses may need to charge huge amount of
prices to turn a profit because these women are typically willing to pay more for goods they
perceive to be of higher quality.
V. Decision Statement: There must be one and only one final choice.(Explain what alternative
was chosen, why it was chosen, and why not the others)
Alternative Course of Action 2 is the best alternative among the other two. The ACA Number 2
is an expert in promoting yuppie-favored goods. The scenario suggests that yuppies already
spend a large amount of money on goods they deem to be of excellent quality. Because selling
to yuppies is neither difficult nor complicated, the company will benefit from adopting this type
of business plan. It would not be difficult for the business to sell new products as long as the
products' designs satisfy the yuppies' demands for taste and quality because young, urban
professionals (Yuppies) in Asian markets are known for having it all. Even if implementing this
solution carries a higher risk due to the market's potential for intense competition, the company
would still profit if it could attract new clients.
In this case, ACA Number 2 was chosen because fashion trends from well-known European
labels have been rising over the past few years. It would be to the company's best advantage to
select the second option from the three provided possibilities because yuppies are not only
interested in the style and aesthetics offered by European firms but also in the quality of their
products.
The three suggested alternate courses of action are advantageous in this situation because
each has advantages and disadvantages of its own. Selecting the second option, however, will
more truly reflect the reality that yuppies place a premium on product quality and durability in
the current context because the target market is young urban professionals who like luxuries.
Given that yuppies place a more considerable emphasis on quality, option one could result in a
company loss due to the low demand for the products and the unguaranteed quality of the
goods supplied in this alternative. But because it is so challenging to set oneself apart from the
competition and because the product may face heavy competition on the market, option
number three was also not the best. Additionally, products from this alternative could be

expensive, and a greater price does not always translate into a better product.
VI. Implementation Program : Discuss the plans or steps of how to put the decision into
action. (at least 5 steps with objectives, activities, timeframe, budgetary requirements,
persons involved and expected outcomes in each step)
1st Step:
Researching would be the first step in better understanding the purchasing habits of the yuppie
market. This would entail learning what kinds of products they are interested in, how much
money they have available, and how they spend it. Market research, surveys, and yuppie
interviews are all ways to gather this information.
2nd Step:
The second step would be to create a marketing strategy specifically targeted toward the yuppie
market. By doing this, it would be necessary to identify the types of advertising and messaging
that yuppies would find most appealing and the kinds of things they would be interested in
buying.
3rd Step:
The third step would be to put the marketing plan into practice. This would require producing
and distributing marketing materials, such as commercials, through media that yuppies are
likely to view.
4th Step:
The fourth step would be to evaluate the marketing campaign's performance. This would
involve tracking sales, figuring out how popular the brand is, and understanding how yuppies
feel about the company and its goods.
5th Step:
The fifth step would be to adapt the marketing strategy in light of the monitoring's findings.
Depending on what works and what doesn't, this might entail changing the budget, the
products, the channels, or the messaging.
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