EXECUTIVE SUMMARY
The study aims to understand the strategy adopted by Natura allowing it to assume market leadership in Brazil, competing with large international organizations.
Even though Natura has achieved success, it has reached a maturity point in the market and in order for it to continue growing, a change of strategy is crucial.
For this business report to be precise, many frameworks were used, amongst them the PESTLE analysis, Value chain analysis, 7S, VMOST and Porter’s 5 forces; to analyse the key issues of this industry and the strategic gap.
This research led me to compare the current strategy of the company and visualize the gap between this and the key issues that they have to tackle. Furthermore, in order to conclude this
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The growth of emerging markets along with middle class, this has allowed more people to have more purchasing power parity, leading to an increase in the consumption of healthcare and beauty products. This socioeconomic variety can allow the company to develop differentiated products to meet the specific needs of these various niches. New markets like Russia, China and Iran are very promising for the cosmetics industry. However, the company also has some raw material costs linked to the dollar, which in the event of substantial increases in the US currency, Natura might need to raise the price of their products and this can directly affect sales and decrease revenue. Acquisitions has been a big trend over the past 5 years for the cosmetics industry. Some examples of this were L’Oreal buying Essie and Shiseido buying Bare Essentials in 2010.
Consumers are constantly changing, with the pressures of life and lack of time; we are becoming more of a spiritual society. Our concern towards the environment is increasing along with social responsibility. For consumers nowadays, transparency is something vital and they are increasingly aware of what ingredients make up a product. Men’s habits in regard to personal care has been increasing rapidly over the past few years and the trend is to continue, which will change the market. The anti-aging skin care segment is also growing due to the large population of baby
It will then assess the strengths and weaknesses of the viewpoints presented in this article. And lastly, author’s personal thoughts on strategy will be terminated alongside the conclusion of the entire essay.
The current strategy of the company is to enter foreign markets and to succeed there. The corporate main strategy is to provide high quality product to its customers.
Next, Nucor have to implement 5 new strategies to make it more global which are playing big in major markets, standardizing the core product, concentrating value-adding activities in a few countries, adopting a uniform market positioning and marketing mix and integrating competitive strategy across countries. Then Nucor shall plan the company human resource by implementing strategies like centralization of global authority, domestic/international split and mixture between the local and current manager.
There were numerous factors that contributed towards the constant success of Evergreen Natural Markets. The company’s methodology towards growth and expansion is one of the integral factors. Where most companies seek to grow by re-investing their profits back into their businesses (ploughing back), Evergreen adopted a more radical approach by acquiring other competing companies or companies that show potential of growing rapidly. Evergreen designed a strategy that was twofold in nature. By bringing in rival companies under the Evergreen umbrella, the approach simply eliminated any competition, increased the resources and financial base and made it
Aesop is being in work from last 18 years of Excellence. It was established in Melbourne. The main purpose of the company product was to overcome the issues related to Skin, Face and Body. Aesop is the sole brand owned by the company, with Emeis Cosmetics Pty Ltd and Aesop Retail Pty Ltd which are Australian based companies. Another fact is that, it employs 250 staff workers in Australia and almost more than 600 staff members all over the world. The company is not limited to just one country but it also operates in Asia Pacific, France, United Kingdom, Switzerland, Germany, United States, Singapore, Japan, Hong Kong, Taiwan, South Korea and Malaysia. However, it’s being announced in December, 2012, that Natura Cosmeticos S.A (Natura) which
According to the article, an industry analysis is based on such frameworks that facilitates the following important tasks:
Cosmetics fall into their own marketing arena. It is the only other product, besides food, that consumers are in constant need of because cosmetics are used in our everyday lives. Cosmetics, in order to have any type of customer base, are made with great quality in mind. With all these different brands offering the same types and qualities of products, Dove had to branch out into another important segment of this cosmetics market. Cosmetics are being used just as much by men as they are used by women, and it is important that a cosmetics product line can compete in the market of men’s products as well. Dove’s main competitors, Nivea, L’Oreal, and Garnier, have not crossed into making men’s products. The lack of men’s products gives Dove a competitive advantage in their arena. Dove has dominated in this category through their marketing and different direction.
Majority of the women use skincare products when they realized there is a need to take care of their skin. The aim is to get consumers to purchase Olay when they face an incomplete satisfaction. In order for Olay to stand out to the target market, ongoing promotions and road shows during Olay’s campaign period would create a stronger existence of Olay as a brand. Consumers would learn more about Olay and whilst increasing the
Developing or making a strategy for a management is very complex in nature. It needs to be made in the uncertainty situations and may also affect the operational decisions. New strategy developed may also involve the change in present culture of an organisation which is difficult and may adversely affect the performance of the organisation. Strategies usually exist at a number of levels in an organisation. Let’s distinguish different levels of strategies and analyse it using Burberry’s strategies. The strategic themes of Burberry are: Leveraging the
Possible men’s products range from moisturizers, manicure- and spa-treatments to shaving foams and after-shave. Even though men feel more comfortable about using cosmetic products nowadays, they have to be marketed different from the women’s products: As an example should POS be separated for men and women. Especially in Japan, where the masculinity-factor of the culture is very high, men would feel uncomfortable to shop for cosmetics in a “shop for women”. Another example is the difference in need of explanation. Where women normally know a lot about cosmetic products, men are often not aware of how to use them and therefore need more service and instruction. The right way of communication would be the use of testimonials, like in Japan, where one of Tokyo’s most popular young actors, Satoshi Tsumabuki, was chosen to appear in TV commercials.
Young girls are more concerned about acnes and blackheads while mature women are looking for anti-aging and anti-wrinkle products. Genders do affect the choice of skin care products. In the past, skin care products only belong to the girls’ world. Nevertheless, in recent years, men are increasingly becoming more and more concerned about skin care. With a view to this latest trend, various brands have started developing men’s line. Income level directly affects the purchasing power of customers. Skin care products take up a wide range of price levels from far less than a hundred dollars to more than a thousand. Young girls who do not have any income cannot afford the expensive skin care products while mature women with higher purchasing power focus more on quality and effectiveness. Occupations also determine the need for skin care products. Models and artists generally have a higher consciousness on skin care than people with less exposure to the public.
Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.
For the purpose to survive in a highly competitive environment and maximize total profit, Navitas has its own systematic strategy based on three priorities:
Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive advantage and long term survival?
France is the last Western European country that is being looked at by Natura. The pros are they sold 11 billion euros in cosmetic sales just in 2004. The market is solidified which means that the companies that have been able to work their way into France have thrived. This is good because the economy is strong there and France is always looking to “diversify product ranges to stimulate demand and boost value growth” (Paavola, 13). Natura can come into France and be the new product that changes the market due to their eco-friendly approach. Another pro is that France has had a shift of consumers buying products that have higher value. Unlike other countries where the consumers prefer lower cost, in France it seems like products that are higher quality will produce more sales. Although a con seems to be that mass markets have been successful and lead in sales the customer service is not up to par. Natura can have an advantage especially through direct sales. Direct sales allow for quality customer interaction and this can allow them to show the customers that they care for them. This would be successful in France because sensory marketing is thriving in France. This would allow for Natura to use their sale representatives to show how the cosmetics are actually are good for the economy and giving them an emotional connection to the brand. Some cons are that the leading brands in France are French, but the reasons are all connected. The biggest con is that no new market has