Marketing Case : Natura in Brazil

In: Business and Management

Submitted By davidmolina
Words 2241
Pages 9
| 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 install themselves in the country, because they didn’t want to face the political instability and hyperinflation running around. It has indeed facilitated the growth of local companies like Natura. However, after 1990, the Brazilian market experienced a rapid change because inflation rates dropped very low, which increasing Brazilian’s purchasing power and the emergence of new consumer…...

Similar Documents

Natura: Global Beauty Made in Brazil

...Natura: Global Beauty Made in Brazil I. Situation Analysis The beauty market has experienced exponential growth rates and is an important sector in many countries—particularly Brazil – a country known for its cultural importance of self-image. Amidst a highly competitive beauty industry with a number of major global players, one local gem stands out from the crowd – Natura. Founded in 1969, the company is the industry leader in cosmetics, fragrances and personal care market in Brazil. Natura developed it products using environmentally sustainable practices and employed a direct sales business model, which has overtaken Avon, the giant U.S. company. Natura provides a wide range of products with solutions for consumers’ various needs including face care, body care, hair care, make-up, fragrances, oral hygiene and product lines for children. The company was tremendously successful in Brazil despite the tough economy. Natura began its international expansion in 1982 around the neighborhood countries, starting with Chile followed by Argentina, Peru and recently Mexico in 2003. However it was in 2005 that Natura took a major step in its internationalization by opening a shop in Paris, the world capital of beauty and cosmetics. The analysis below examines and evaluates a strategic decision for future international expansion for Natura – whether it is to stay within Latin America and Europe, enter the attractive US market or expand to fast-growing Russia? And as part of the growth......

Words: 1157 - Pages: 5

International Marketing in Brazil

...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 .................................................................................................

Words: 14337 - Pages: 58

Natura Paper

...Natura 1. How are these cultural factors demonstrated in Natura’s marketing in Brazil? Brazil is a culture that is based off of several different factors, looking at and using Hofstede’s five dimensions the Brazilian culture shows how Natura has developed it’s marketing to the culture. The Brazilian culture respects hierarchy and inequalities are acceptable among different people and Natura used this acceptable differences between people and women to create their culture of natural beauty that is not defined by models but by the differences and increasing the self-esteem of women. The strong sense of responsibility to one’s family and the group led Natura to take on the culture of long-term relationships with its direct sales force and cultivate a better relationship between Natura’s customers and the company. Also, the Brazilian culture is long-term oriented and this is why Natura is driven to look at the long-term success of the company in markets that they aren’t necessarily making a short-term profit. A good example of this would be when Argentina devalued their currency in 2001, Natura took the long-term approach and didn’t raise their prices and decided to cultivate its relationship with their customers and reduce costs and improve efficiencies instead of looking for the short-term profits. 2. Natura is considering entry into the US market. Considering cultural characteristics, what elements of marketing do you think they could standardize from their......

Words: 375 - Pages: 2

Natura

...|Company |Natura Cosmeticòs | |Location |Cajamar | |Date | | Natura was founded in 1969 and became the leader of the Brazilian cosmetics market (21% of market share). Natura possesses more than 600 products in its portfolio, and have maintained a consistent growth for the past few years above competitors in the direct sales sector. Approximately 5.9 million employees and 719 million consultants are working in 2007. Natura is principally focused on the Brazilian Market, which represents roughly 95% of gross revenues. Beyond in Brazil, Natura has operation in Argentina, Chile, Peru, Bolivia, Venezuela, Mexico, and France (Natura plans to enter the US market in 2009 has been postponed due to the global economic crisis). The sales volume has been R$ 4,302 million in 2007. R$ 108.4 million has been invested in innovation (information system, logistic and R&D) and CSR during 2007. Natura set up two company motions: 1) cosmetics as a means for self-knowledge and to promote well-being and 2) human relations as a way to express life. The reason for being is creating and selling......

Words: 1165 - Pages: 5

Marketing Case

...Case Report Marketing Case 8: IKEA’s Global Strategy: Furnishing the World I.Situation Analysis IKEA is a privately-owned international furniture manufacturer known for its low prices and unique style. The company’s vision is to create a better everyday life for its customers by offering a great selection of well-designed, practical home furnishings. Since IKEA has chosen this sort of affordable and distinctive marketing strategy, the company has been very successful in its expansion throughout the world. IKEA has been successful with a relatively standardized product and product line in a business with strong cultural influence. This is because: The founder formulated IKEA’s mission which states that IKEA offers wide variety of home furnishings of good design and function at prices so low that the majority of people can afford them. Such wide variety could fit a wide variety of cultures and tastes. The case studies also states that the assortment of goods are universally accepted. The principal target market of IKEA is similar across all countries and regions and is composed of people who are young, highly educated, liberal in their cultural values,white collar workers, and not especially concerned with status symbols.Most people in the IKEA target market are liberal in their tastes,preferences and cultural norms hence making them easy to accept and appreciate IKEA’s standardized products. II.Problems Found in Situation......

Words: 1736 - Pages: 7

Coca-Cola’s Marketing Challenges in Brazil: the Tubaínas War

...A12-04-0025 Coca-Cola’s Marketing Challenges in Brazil: The Tubaínas War Introduction For about a decade, the Coca-Cola Company’s Brazilian subsidiary tried to stop the growth of tubaínas (too-bah-ee’-nas). The word tubaínas designates numerous brands of fairly inexpensive, carbonated, and rather sweet beverages sold throughout Brazil. For more than half a century, hundreds of micro, and a few medium-size, manufacturers produced and distributed the so-called tubaínas on a local or regional basis. Brazil was Coca-Cola’s third largest operation and, after Mexico, the company’s second largest international market. Until the mid-1990s, tubaínas’ combined market share did not pose a threat to Coca-Cola. However, in the next decade, due to important environmental changes, tubaínas’ sales steadily grew in Brazil, making inroads into Coca-Cola’s business and jeopardizing the company’s profitability. Rather than the cola war (the name given to Coke versus Pepsi competition in many countries), the real issue for the Brazilian subsidiary of the Coca-Cola Company has been the tubaínas war. Over the years, Coca-Cola attempted different strategies to undercut tubaínas’ growth. Pepsi-Cola, CocaCola’s notorious contender, ranked fourth among the best-selling soda brands in Brazil. However, Pepsi also gained market share, thanks to its partnership with Brazilian beverage manufacturer AmBev and the successful launch of Pepsi Twist in 2003. Background Mr. Brian Smith, a University of......

Words: 8898 - Pages: 36

Marketing - Unilever Case Study

...MGT 6170-Marketing, Unilever in Brazil Case Study Table of Contents 1. INTRODUCTION ............................................................................................................... 2 1.1. 2. Aim of the report .................................................................................................. 2 CONSUMER BEHAVIOUR ON PURCHASE OF DETERGENTS IN BRAZIL ................. 2 2.1. 2.2. Consumer decision Process ................................................................................. 2 Influences on consumer decision making ............................................................ 2 3. MAIN PLAYERS AND THEIR CURRENT STRATEGIES .................................................. 3 3.1. 3.2. Unilever and their current strategies ................................................................... 3 P&G and their current strategies ........................................................................ 4 4. 5. SWOT ANALYSIS ............................................................................................................... 4 STRATEGIES FOR UNILEVER ......................................................................................... 5 5.1. 5.2. Growth Strategies ................................................................................................ 5 Market Penetration Strategy ................................................................................ 6 6. 7. CONCLUSION ...........................

Words: 3153 - Pages: 13

Marketing Case

...Principles of Marketing April 22, 2015 Case Paper #8: Besitti’s Restaurant Introduction Rosa Besitti is an accomplished and driven woman who is trying to find her way in the very daunting restaurant industry, while facing many hardships that have caused her to question her business altogether. Her deep wanting for future success in the restaurant industry has inevitably brought her to face a difficult decision in her career. She has to choose between keeping her restaurant under her name and leadership, while continuing to try and make it grow so that she can start bringing in profit to her family, or make Besitti’s a fast-food or family restaurant franchise and give up her own brand and family name. She is aware that if she doesn’t change what she’s doing in some way or another as soon as humanly possible, she will never get to the point in her career where she no longer has to consider making tough and life alternating decisions. Analyze Ms. Rosa Besitti, the owner and manager of Besitti’s Restaurant, is reviewing and analyzing the slow growth of her restaurant and deciding whether she should either continue trying to grow her industry, or switch to joining a common fast-food or family restaurant franchise chain. If she decides to keep Besitti’s Restaurant under her name, the wisest thing to do in order to move forward, Rosa should explore the possibility of creating and performing a S.W.O.T. analysis. A S.W.O.T. analysis is a structured planning method used to......

Words: 2672 - Pages: 11

Case Brazil

...Brief Case EC-Chicken cuts. FACT : Nguyên đơn : Brazil, Thái Lan Bị đơn: Ủy Ban các Cộng Đồng Châu Âu ( Ủy Ban Châu Âu – EC ) Bên thứ 3 : Trung Quốc , Hoa Kỳ Ngày 11 tháng 10 năm 2002, Brazil đã yêu cầu tham vấn với Cộng đồng châu Âu liên quan đến Quy định số 1223/2002 của Hội đồng EC (“quy định số 1223/2002”), ngày 8 tháng 07 năm 2002, mô tả sản phẩm thịt gà rút xương cắt miếng đông lạnh theo nhóm sản phẩm kết hợp mã CN 0207.14.10. Theo Brazil, mô tả này có đưa muối – thành phần không có - vào sản phẩm, và trong lộ trình cắt giảm thuế của Cộng đồng Châu Âu theo GATT 1994, sản phẩm nhập khẩu này chịu mức thuế cao hơn mức thuế của sản phẩm thịt muối (mã CN 0210). - T THẤY KO ỔN !! − Các dữ kiện chính của vụ việc ? (Facts) − Vấn đề đặt ra cho cơ quan xét xử để giải quyết ? (Issues) − Cơ sở pháp lý để giải quyết ? (Law) − Kết luận của cơ quan giải quyết tranh chấp ? (Holdings) − Lập luận chính của cơ quan giải quyết tranh chấp để đưa đến kết luận ? (Reasoning ISSUES : - Brazil cho rằng hành động đó thể hiện sự đối xử thiếu thiện chí đối với thương mại của Brazil, không như lộ trình cắt giảm thuế của Cộng đồng Châu Âu, và vi phạm cam kết của Cộng đồng châu Âu theo các Điều II và XXVIII của GATT 1994. - Brazil khiếu nại rằng biện pháp này của Cộng đồng châu Âu làm tổn hại, theo định nghĩa của Điều XXIII:1, đến lợi nhuận Brazil có thể thu được một cách trực tiếp hoặc gián tiếp theo quy định của GATT 1994. - Trong vụ kiện, Thái Lan cho rằng các nhà xuất khẩu thịt gà......

Words: 855 - Pages: 4

Natura Beauty in Brazil

...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......

Words: 2257 - Pages: 10

Brazil Case Country Document

...Bryce Walker-Byrd Case Country: Brazil The country I have selected to for this particular case country project is Brazil. I have never visited this country, however, its abundant and fascinating qualities have always intrigued me. From the intricate cuisine to the astonishingly beautiful women it contains, Brazil seems to almost rival the United States in diversity and appeal. The country has also begun to establish itself as one of the largest economy’s in the world, ranking seventh according to the GDP. Despite all of these qualities that have furthered my desire to visit this wonderful city, I never took into account its diversity and intrigue from an agricultural perspective. With me being a business marketing major, it came as almost instinct to view Brazil from its financial and business aspects. However, in order to fully appreciate this country and its emerging financial power, one must first look at the underlining factors, such as its process of achieving agricultural sustainability. Although there is certainly a correlation between Brazil’s booming economy and its conscious efforts in achieving ultimate agricultural sustainability, this particular document will be mostly geared towards the agricultural component of this relationship. More specifically, I plan to address connection between Brazil’s pursuit of agricultural sustainability and the rising levels of deforestation and land distribution inequality occurring in the country. In order to effectively......

Words: 811 - Pages: 4

Coca-Cola’s Marketing Challenges in Brazil: the TubaíNas War

...A12-04-0025 Coca-Cola’s Marketing Challenges in Brazil: The Tubaínas War Introduction For about a decade, the Coca-Cola Company’s Brazilian subsidiary tried to stop the growth of tubaínas (too-bah-ee’-nas). The word tubaínas designates numerous brands of fairly inexpensive, carbonated, and rather sweet beverages sold throughout Brazil. For more than half a century, hundreds of micro, and a few medium-size, manufacturers produced and distributed the so-called tubaínas on a local or regional basis. Brazil was Coca-Cola’s third largest operation and, after Mexico, the company’s second largest international market. Until the mid-1990s, tubaínas’ combined market share did not pose a threat to Coca-Cola. However, in the next decade, due to important environmental changes, tubaínas’ sales steadily grew in Brazil, making inroads into Coca-Cola’s business and jeopardizing the company’s profitability. Rather than the cola war (the name given to Coke versus Pepsi competition in many countries), the real issue for the Brazilian subsidiary of the Coca-Cola Company has been the tubaínas war. Over the years, Coca-Cola attempted different strategies to undercut tubaínas’ growth. Pepsi-Cola, CocaCola’s notorious contender, ranked fourth among the best-selling soda brands in Brazil. However, Pepsi also gained market share, thanks to its partnership with Brazilian beverage manufacturer AmBev and the successful launch of Pepsi Twist in 2003. Background Mr. Brian Smith, a......

Words: 8898 - Pages: 36

Natura

...------------------------------------------------- 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......

Words: 1669 - Pages: 7

Natura

...Task 1 (not more than 1200 words, maximum) Sub-section 1: Learning and willingness to learn from new market’s culture. How is the new market? How are the new customers? You’re learning from the experience and introduce it into your products. 1. Willingness to learn: what different things did they (Natura) learn in the new market? Did they introduce new products? Did they hire local employees? Did they provide some sort of different systems for the customers to buy their products? So what is the different system that they have changed? If they changed, give examples. 2. High level of energy and commitment: You remember we have talked about some markets that need more work to be done because they are not developed yet, they’re under developed. So what do you do? You provide more resources in there, you look after the market in order to mature the market. So give example, something like, when they (Natura) enter Russia market, how they commit to that market? Are they trying to provide extra credits to the manufacturers, or wholesalers in the market? Are they try to give extra offers to the customers? That’s commitment. 3. Control and effective monitoring: Have they decentralized their control in new markets? Or they centralize their control? Sort of control: how much they centralize/decentralized their control? What sort of activities they centralize or decentralize? First part of Task 1 can be breakdown into...

Words: 2631 - Pages: 11

Natura

...NATURA COSMETICS: From Brazil to United States INTRODUCTION TO THE COUNTRIES: BRAZIL AND UNITED STATES Brazil, one of the fastest growing emerging markets in the world is the “country of the moment” as many called. Low cost manufacturing, develop infrastructure, government incentives, and increase of income levels has set Brazil as hot stop for investor and a secure place for international expansions. Not only a hot stop for investor, but also a homeland of many entrepreneurs going out of the national barriers and growing internationally in a remarkable way. With rising of wages, a stability of inflation, Brazilian population is getting richer. In the last couple years, that was increase of the wealth population and a significant improvement of the middle and low class purchase power, resulting in growing of the country and putting new challenges for local business thinking of going to other countries. Not surprising, Brazilians are spending more in many different market segments, one of them cosmetics, fragrances, and personal hygiene. In 2010, with an impressive 12% growing of the cosmetic market, Brazil became the second largest consumer of cosmetics in the world just behind United States. According the ABIHPEC, Brazilian Association of cosmetics, fragrances, and personal hygiene, the market of these products has grown substantially over the past 15 years. Exports grew 17.8% in 2010, reaching $ 693 million, versus $ 588 million in 2009. Imports of......

Words: 2071 - Pages: 9