Case Study of Espoir Cosmetics

2710 Words Oct 23rd, 2008 11 Pages
CASE STUDY OF ESPOIR COSMETICS

INTRODUCTION
Compiled is a case analysis of the Espoir Cosmetics Company’ decision as to whether develop a Global Branding initiative or to carry on with the firms existent Domesticated marketing concept. This document breaks down the operational environment of the firm, and proceeds o avail some recommendations as the best courses of action that Espoir can take.
The firm exits within the personal care industry, whose key success factors and industry structure is oriented as below.

INDUSTRY STRUCTURE
The personal care industry is characteristic of a few dominant firms, which have often built their brand equity over a long period.
The industry is a competitive oligopoly in nature. Success within this
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i.e. America, Asia, Europe.
 Recession in the US economy - This was affecting Espoir key market which was US. The global branding plan was to be highly dependent on a marketing budget which would financed by other offices in different countries. The US economy provided 80% of Espoir's revenue.
 Competition – There increase in price based competition from local brands which was driving down revenues, while competitors such as Revlon, had already promoted movies, compounded with stiff competition from Asian brands in the Asian market.
 Leadership - The marketing function was not well coordinated across the countries and the role of the Head of Marketing was not well defined. The country mangers were supposed to be independent and accountable to the Head of marketing at the same time. Communication was a challenge within the organization, Resistance to change
 Positioning - The brand was not well positioned as a global brand and brand management was not coordinated across all countries of operation. Different approach of promotions needed for different markets; Easter Europe needed beauty business promotions.
 Cultural issues different customers in the global market have different culture and this calls for a different strategy to handle their needs
 Distribution channels challenge – The distribution of
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