...case study | | | 17/02/2014 | Natura : Global Beauty Made in Brazil | | David Molina 11185093 | case study Natura : Global Beauty Made in Brazil | | | What are the key success factors in the cosmetics industry?We’re going to go with a step by step analysis, similar to a PEST analysis, in order to find the key factors in the cosmetic industry, especially in Brazil and according to the article.First, the political reforms in Brazil in the 1990s has led to a better openness of trade and investment from the global market. From 1995 to 2000, it has created a more decentralized and market-driven environment through the deregulation of state monopolies and prices, according to the WTO report of trade policies in Brazil in November 2000. It also explains the influence of better resource allocation and greater flexibility of the Brazilian market on the recovering from the financial crisis that lead to the floating of the real in 1999, and thus show an increasing resistance of the market.On the other side, the economic structure of Brazil was supporting the development of the cosmetic market. In 2005, it has 180 million of people which 83% were located in urban areas, which are targeted consumers for cosmetic products. Also there was a strong demand for cosmetic products in Brazil, the country being among the top ranked countries in term of sales. Before the 1990s, there was also a lack of international competition in Brazil, a few multinational were eager to...
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...Natura Overview A company that was established in 1969 in a small garage in the city of Sao Paulo has grown to become considered currently as the largest and most lucrative corporation in the cosmetics sector and one of the most successful in the whole of Brazil. The business model implemented promotes an economic growth compatible and in pace with the social development while responsibly utilizing the country’s natural resources and biodiversity. This socio-ecologically correct behavior has given the company status and recognition while allowing the building of a very particular and differentiated profile which turned out to be very much appreciated by its clients. Natura adopted a direct-selling model that has developed into the core of its DNA and that allows for consultants to act as ambassadors of the brand and product offer as they approach the end consumer in an individual and personal basis. This direct-selling allowed for geographical expansion without loss of the interpersonal relations that were vital for the valorization of the brand by enhancement of its attributes and product uniqueness. The brand has experienced exponential growth between 1979 and 1989 (US$ 5 million to US$ 170 million), which is a testimony to the assertiveness of this tactic. Additionally, Natura promotes the idea that beauty should be directly related to well being and harmony of body and soul rather than to the incessant search for resemblance to industry’s unachievable beauty stereotypes...
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...Initial situation: Natura, found by Mr. Luiz Seabra in 1969 in Sao Paulo, is a cosmetic company offering a wide range of products. The company was originally found on different values such as building a better world based on harmony with oneself, with others and with nature. In 1969, the company was selling its product only in one store in an upper-class neighborhood in Sao Paulo. The products were manufactured in a small laboratory. Few years after its foundation, the company has decided to expand its distribution by using a direct sale distribution model. This distribution model consists to sell a product from person to person and was an advantage for the company because they were able to foster the relationship with the clients and to extend the distribution at low cost. This direct sale strategy was organized in a simple structure. Natura hired some sales supervisors that have to hire sales representatives who were trained and monitored by the supervisors. This strategy was interesting for the company because the sales representatives had no work attachment with Natura, which gave flexibility for the company. Their salary was just a commission on the products sold. The customers had to select products on catalogues and placed their orders threw a call center or company’s website. Then the products were delivered to the sales representatives in 24 hours and delivered to the customers. This directs sales system is an interesting system for Natura, because it is a...
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...To L'Oréal, Brazil's Women Need New Style of Shopping By CHRISTINA PASSARIELLO (See Correction & Amplification below .) RIO DE JANEIRO—Brazilian women are among the biggest spenders on beauty products anywhere. But the world's largest cosmetics company, L'Oréal SA, has faltered in Brazil. The reason: Brazilian women from the banks of the Amazon to Sao Paulo's slums and the affluent beach communities of Rio de Janeiro have traditionally bought their skin creams and mascaras from door-to-door sales representatives, not the shops where L'Oréal sells its brands. Cosmetics giant L'Oreal is trying to change the way Brazilian women buy makeup. WSJ's Christina Passariello reports from Rio De Janeiro. The French company won't use the direct-sales approach, but the company has adopted a strategy that takes a page from it: introducing personal beauty advisers at department stores. L'Oréal also plans to offer a new line of lightening creams at pharmacies. "Our big bet here is to create a makeup business in retail from scratch," said Jean-Paul Agon, L'Oréal chief executive, as he picked up a tube of Maybelline mascara, one of his company's many brands, in a Lojas Americanas department store in a middle-class Rio neighborhood. "The more the market develops, the less relevant direct sales will be." For L'Oréal, winning over Brazilian women is crucial if it is to meet its goal of adding one billion consumers—a doubling of its current clientele—over the next decade. L'Oréal currently...
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...NATURA The eco and customer friendly company. Table of Contents Introduction: 3 The Natura Concept: 3 Products: 4 Competitors: 4 Biodiversity: 5 Production and Operation: 6 Social Responsibility: 6 Financials: 7 Conclusion: 8 Introduction: Natura, a Brazilian based company was founded in 1969, by Luiz Seabra and later partnered with Guilherme Leal and Pedro Pasos. Today, as a public company since 2004, Natura is a leading manufacture and marketer in the skin care, solar filters, cosmetics, perfume, and hair products (Natura). Natura sold in Latin America and France is looking to enter the U.S. markets once they stabilize after the recession (Azevedo). The Natura Concept: Unlike many other companies within the personal care industry, Natura takes a position in promoting inner beauty and self-esteem. In 1992, Natura implemented the Truly Beautiful Women Campaign, focusing on women with healthy levels of self-esteem as possessing “true beauty” instead of the traditional focus on outer beauty and age (Natura). Natura prides itself in its strong research and development efforts and its use of ordinary women rather than supermodels in their advertisements (Natura). Since Natura conception in 1969, they have made it their focus to positively effect the environment, consumers, and the universe, and based off of this belief: “We have been fundamentally committed to conducting our business with consideration for environmental...
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...A BRAZILIAN MARKETING STRATEGY FOR SKINCARE PRODUCTS International Marketing 2010-2011 1 Content 1. Introduction........................................................................................................................ 4 1.1 1.2 1.3 2. International Marketing .............................................................................................. 4 Company description ................................................................................................... 5 Goal of the study ......................................................................................................... 5 General cultural concepts .................................................................................................. 7 2.1 2.2 2.3 History.......................................................................................................................... 7 Geography and environment ...................................................................................... 7 Demography ................................................................................................................ 8 Basic facts ............................................................................................................. 8 Population density.............................................................................................. 10 Brazilian ethnicity .................................................................................................
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...------------------------------------------------- Visit Natura Question 1 : How does a strong vision and a corporate culture based on human well-being affect employees? You don’t just all of a sudden ‘have’ the almost 8,000 motivated employees that Natura can globally count on, you have to earn them every day. There are several ways in which one can see what influences both company and employee at the same time, and we’ll try to elaborate on at least some of those corporate characteristics. Maybe the most straight forward aspects are to be found when you take a closer look at the employee advantages related to the work, the so-called fringe benefits. As what I’ve learned from the guided tour, apart from their regular monthly pay-check, employees are made feeling very supported when performing their professional activities in the Cajamar factory. Besides the somewhat more regular insurance plans, payback of transportation costs and a restaurant to enjoy a healthy lunch or snack, Natura employees with kids can also use the baby day-care centre if there short on a babysitter. Even more, mothers with new-borns are allowed to stay home for 6 months and even new dads are allowed to take up much more weeks than the Brazilian average of two weeks of paternal leave. Apart from this, the Cajamar factory also includes a gym where employees can stay fit, a medical facility for urgencies, a bank and a shop for easy access to all of the products in the Natura catalogue. In addition to the more tangible...
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...GLOBAL ANALYSIS- AVON MGT 795: Section G11 Professor: Patrick Saparito Jennifer Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre Table of Contents EXECUTIVE SUMMARY/ABSTRACT 4 OVERVIEW 5 History and Background 5 Mission Statement 5 Social/Corporate Responsibility 6 BUSINESS ANALYSIS 8 Core Competencies 8 Management Structure 9 Current Objectives 9 Current Short Term Objectives 9 Current Long Term Objectives 10 Current Strategy 10 Advertising and Representative Value Proposition (“RVP”) 10 Product Line Simplification(PLS) 10 Strategic Sourcing Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion...
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...Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion in sales and claims its stake as being the largest direct seller in the world. After performing extensive research on the company using multiple online tools, journals, articles and texts, we have collected enough evidence to make recommendations as to how Avon can continue its global expansion while still maintaining long and short term company objectives and staying within core competencies. We believe Avon can and should expand strategically into each of the BRIC countries while also leverage the power of the technology and the Internet to increase business through social...
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...GLOBAL ANALYSIS- AVON MGT 795: Section G11 Professor: Patrick Saparito Jennifer Callaghan J.R. Longino Rasa Navickaite Meghan Quinn Lia Torre Table of Contents EXECUTIVE SUMMARY/ABSTRACT 4 OVERVIEW 5 History and Background 5 Mission Statement 5 Social/Corporate Responsibility 6 BUSINESS ANALYSIS 8 Core Competencies 8 Management Structure 9 Current Objectives 9 Current Short Term Objectives 9 Current Long Term Objectives 10 Current Strategy 10 Advertising and Representative Value Proposition (“RVP”) 10 Product Line Simplification(PLS) 10 Strategic Sourcing Initiative 10 Enterprise Resource Planning System 11 Zero-Overhead-Growth 11 Restructuring Initiatives 11 SWOT Analysis 13 Strengths 13 Weaknesses 15 Opportunities 17 Threats 22 FINANCIAL INFORMATION 23 SUMMARY OF RECOMMENDATIONS 25 Technology and Social Media 25 Focusing on International Growth- the BRIC Countries 27 Brazil 28 Recommendations for Brazil 33 Russia 34 Recommandations for Russia 40 India 41 Recommendations for India 46 China 47 Recommendations for China 53 Conclusion ………….…………………………………………………………………………………….54 REFERENCES 55 AVON- A GLOBAL COMPANY FOR WOMEN EXECUTIVE SUMMARY/ABSTRACT Avon is a powerhouse in the beauty industry with over $10 Billion...
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...Appliances Laundry Large Cooking Home Laundry Confectionary 144,010 121,107 Appliances Appliances 132,745 121,107 US$185,477 mn Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. Microwaves 60,669 Deodorants US$20.4 bn Beauty and Personal Care US$425.7 bn Bath and Shower US$37 bn Baby Care US$13.6 bn Hair Care US$73.7 bn Small Appliances Jewellery 1,724,022 Men’s Grooming US$32.7 bn Procter & Gamble is the global leader in beauty and personal care. Its key brands here include Olay, Gillette and Pantene. The company has however underperformed some of its rivals including Unilever and L’Oréal, which have made significant gains in the Chinese market to Procter & Gamble’s detriment. Procter & Gamble may suffer from being too mid range for premium-focused China, while too premium for lesser developed emerging markets such as India. © Euromonitor International BEAUTY AND PERSONAL CARE: PROCTER & GAMBLE PASSPORT 2 STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT...
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...shaky, but in whatever market or industry you’re in, those who understand & cater to changing consumer needs, desires and expectations will forever have plenty of opportunity to profit. A remapped global economy, new technologies (or ‘old’ technologies applied in new ways), new business models... hey, what’s not to like? Hence this overview of 10 crucial consumer trends (in random order) for you to run with in the next 12 months. Onwards and upwards » 1. PRESUMERS & CUSTOWNERS 2. EMERGING2 3. MOBILE MOMENTS 4. NEW LIFE INSIDE 5. APPSCRIPTIONS 6. CELEBRATION NATION 7. DATA MYNING 8. AGAIN MADE HERE 9. FULL FRONTAL 10. DEMANDING BRANDS 11. MORE-ISM w w w. t r e n d w a t c h i n g . c o m 10 crucial consumer trenDs for 2013 2 1. PRESUMERS & CUSTOWNERS “Consumers will embrace even more ways to participate in the funding and (pre-)launch of new products and brands.” 2013 will see passionate consumers embrace two innovative new ‘consumption’ models: becoming PRESUMERS and CUSTOWNERS. PRESUMERS love to get involved with, push, fund, and promote products and services before they are realized. And thanks to countless new crowdfunding platforms and new manufacturing technologies that are finally tipping into the mainstream (and a burgeoning, global cult of entrepreneurialism at large), the coming 12 months will see them have more opportunities than ever to do so. No wonder that the amount PRESUMERS spent on crowdfunding platforms has risen...
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...Introduction “Successful marketing requires that companies cultivate a connection with their customers” (Kotler & Keller, 2009, p. 82). Though a broad based company, with a diverse and extensive product offerings, Colgate-Palmolive has successfully used market segmentation to identify unique needs of its consumer markets. They have combined the use of market segmentation and the ability to effectively gauge and respond to consumer behavior to divide and conquer the respective industries: Oral care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. Geographical Segmentation Colgate has cornered significant markets with sales in North America (19%), Latin America (27%), Europe/South Pacific (21%), Greater Asia/ Africa (19% (“Colgate-Palmolive: A Strong International Position¸ 2012). One of the reasons for Colgate-Palmolive’s success globally is its targeting and tailoring the products to specific local regions. The company has identified in its outlook, that there will be “increases in media investments, targeted geographically” (Consumer Analyst Group of New York Conference”, 2012). Each year, for example, in one of their largest market, India, the company signs a local celebrity as the local Colgate brand ambassador, this year it is popular Indian actor (“Colgate signs Allu Arjun as brand ambassador”, 2012). Another great indication of their geographically targeted marketing initiatives is the multiple Facebook pages. There are currently 45 Facebook...
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...9-706-411 REV: NOVEMBER 21, 2006 PANKAJ GHEMAWAT CARIN-ISABEL KNOOP DAVID KIRON AmorePacific: From Local to Global Beauty In 2005, Suh Kyung-Bae, President and CEO of South Korean cosmetics company AmorePacific, surveyed a map in his office in downtown Seoul: We have held off major multinational players, the L’Oréals and Estée Lauders, in Korea and are competing successfully with them around the world. We went to France, the Mecca of beauty products, and developed the #4 fragrance in that country, Lolita Lempicka. In China, our cosmetics line is sold in more than 100 department stores in 70 cities and business is finally growing. And we have opened a flagship spa in New York that is doing very well. For 2004, AmorePacific reported 3,300 employees and sales of 1,272 billion Korean Won (KRW), equivalent to US$1,111 million. Cosmetics and toiletries generated four-fifths of sales (and green tea and health care the rest), placing the company among the top 30 worldwide. AmorePacific held a share of more than 30% of the Korean market for cosmetics, versus 8% for its leading local competitor, LG Household and Health Care, and 4% for L’Oréal, the world’s largest beauty products company and the leading multinational competitor in Korea.1 But although AmorePacific’s share of the Korean market had reached record levels and its overall operating margins of 15%+ ranked among the highest in the sector, its sales fell by 5% from 2003 to 2004—and its operating income...
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...Shareholders 1 Sectors and Markets 5 Form 10-K Index 11 Form 10-K 12 Reconciliation of Non-GAAP Financial Measures 85 Global Leadership Council 86 Board of Directors 86 Recognition87 Company & Shareholder Information 88 FINANCIAL HIGHLIGHTS (unaudited) Amounts in millions, except per share amounts 2013 2012 2011 2010 2009 Net Sales Operating Income Net Earnings attributable to Procter & Gamble Net Earnings Margin from Continuing Operations Diluted Net Earnings per Common Share from Continuing Operations(1) Diluted Net Earnings per Common Share(1) Dividends per Common Share $84,167 $83,680 $81,104 $77,567 $75,295 14,481 13,292 15,495 15,732 15,188 11,312 10,756 11,797 12,736 13,436 13.5% 11.1% 14.4% 14.0% 14.1% $ 3.86 $ 3.12 $ 3.85 $ 3.47 $ 3.35 3.86 3.66 3.93 4.11 4.26 2.29 2.14 1.97 1.80 1.64 (1) Diluted net earnings per share are calculated based on net earnings attributable to Procter & Gamble. NET SALES OPERATING CASH FLOW DILUTED NET EARNINGS ($ billions) ($ billions) (per common share) 13 12 11 10 09 $84.2 $83.7 $81.1 $77.6 $75.3 13 12 11 10 09 $14.9 $13.3 $13.3 $16.1 $14.9 13 12 11 10 09 $3.86 $3.66 $3.93 $4.11 $4.26 2013 NET SALES BY GEOGRAPHIC REGION BY BUSINESS SEGMENT (2) 20% 24% 9% 32% 15% Beauty Grooming Health Care Fabric Care and Home Care Baby Care and Family Care (2) These results exclude net sales...
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