Marketing Strategies of Cosmetics in an International Market - Case Study Example

CASE STUDY: A CRITICAL EVALUATION ON THE MARKETING STRATEGIES OF COSMETICS IN AN INTERNATIONAL MARKET. Full Introduction. Business enterprises struggle hard to obtain a fair market share. Especially, exploring new international markets becomes a challenge if the business organization does not develop strategies. However, diversification of functional groups of management enables the business to gather adequate information to enable it survive in stiff completion. It is important to formulate the question on how the business can penetrate these markets through different modes of transport such as shipping. How does P.E.S.T factors affect the business in the new market? How can SWOT analysis improve survival of the product internationally? What are the competencies of the business that need outsourcing? Also, what is the importance of aggregation, adaptation, and arbitrage business strategies in the new market? As such, this are some of the questions that this case study seeks to answer. A concise conclusion on the same will also provide an insight on exploring new international markets. Background information. International marketing calls for a critical evaluation of the business’ ability to satisfy the customers’ needs. The business need to evaluate how capable it is in ensuring the achievement of this goal. In order to survive in the emerging markets therefore, the business needs to establish a strategic plan, customer strategy, growth strategy, improvement on technology strategy, customer strategy, and source of finance plans (PWC, 2014). In foreign markets for instance, the organization selling cosmetics can establish globalization business strategies to enable it to survive. The strategies include aggregation, adaptation, and arbitrage. Aggregation refers to duplication of domestic business model in the new international market so as to secure cost benefits when handling products in bulk. The strategy tends to focus largely on the economies of scale (Kluyver, n.d.). The technique seeks to achieve efficiency globally by increasing the level of standardization of the product and the production process (Kluyver, n.d.). Therefore, a manager of the firm ensures that the organization obtains economies of scale to enjoy the aggregation process. For the cosmetics, the business can achieve this through using the same distribution channel. Also, the business should use the same marketing mix in each country, have a standard website, and encourage ethnocentrism. Adaptation is a strategy that a business achieves by providing goods or services that are competitive and advantageous in the international markets. The technique enables a business to improve on the size of the market it controls (Valdez, 2003). Here, the product or work practices are supposed to adjust in relation to the new business surrounding. Valdez (2003) explains that the adaptation technique can involve change of the brand, alteration of packaging, or even developing new flavors. The method could make the cosmetic product more appealing to the customers than the competitors’ products. However, this method has some dimensions that the business should not take for granted. The goals of the whole process of adaptation should be clear so as to avoid wasteful strategies of market placement of this new cosmetic brands. Arbitrage is another strategy for these fashion products. The strategy takes advantage of the difference in the home market and the international market to get absolute value. According to Fund (2014), it involves buying and selling of securities. In other words, the business utilizes legal differences, currency exchange, and transport or labor costs. Supply chain implications rely heavily on the nature of technique the business uses. Specifically, cosmetic products will have a great competitive advantage under arbitrage. The supply chain management greatly depends on the nature of shipment the company takes. Marketing using 4p’s strategy Product In this analysis, the product is usually the first component. The chain management supply ask: How can the business improve the product features? What is the importance of diversifying cosmetic products in the market? Which design can assure the product a long life-span in the market? Therefore, the business needs to improve the cosmetic products to meet the fashion in demand so as to secure high sales.Also, the technology in production should be up to the mark. Price PEST analysis enables the business to know the economic position of the target group. It is essential to use such information to determine the price to charge on a product. Price is the only source of income in the business. Marketing activity under the price mix include discounts that the business can give, policies regarding price, availability of credit, and device payment methods. Consumers willing to make a purchase of the cosmetics will consider these factors of price before they buy. Promotion The business uses this function strategically so as to outdo the competitors’ brands. It enables the business to create awareness to the target group. Fashion products are key and specifically aim a certain niche in the society. Therefore, promotion of cosmetics should be very categorical to fashion-loving group of people, especially the youth. Ethics in product promotion should conform to social and cultural activities of the community. Place Place refers to the locality for the launch of the product internationally. It specifically involves the movement of a product from one point or location to another. For cosmetic products, the business uses shipment as a means of transport to reach for the market. Brand: Flavia Spray for the whole family Flavia spray is a brand that this research seeks to carry out analysis in the international market. The analysis considers the international markets to be Dubai, Kuwait, Oman, and Qatar, all in the Middle East. Other markets include Egypt and South Africa in Africa. Flavia brand can also find markets in Asia specifically in China, India, Malaysia, Philippine, and Taiwan. All these are emerging markets for flavia spray. Micro and macro analysis of this product in Africa for instance in Egypt, shows that the product will need to meet certain requirements. Micro environment comprises factors such as consumer behaviors in Egypt, suppliers (example: partners, media), competitors selling substitutes to flavia spray. All these factors will instigate the business to control their effect so as to function efficiently. Macro analysis involve factors that the business offering flavia spray have no control over. Political and legal, economic, social, cultural and demographic, and technological factors for this category of the environment. Social-cultural factors will influence how the community will respond to the new product. Demographic factors are advantageous to the business if there are many people who will provide large market of the brand. Political and legal will make the business adjust to legal formalities in Egypt so as to conform to such laws.Economic factors influence the buying abilities of the people in the region where the business is set. Conclusion Business enterprises engage in marketing activity internationally because it sometimes forces them to do so. However, essential aspects such as price, place, promotion, and product form the core area of market mix. PEST factors force the business to operate within certain limits. References. FUND, H. (2014). Understanding Merger Arbitrage. [Online]. Available at [accessed December 19, 2014] KLUYVER, C.A., (n.d). Fundamentals of Global Strategy. [Online]. Available at [accessed December 19, 2014] PWC. (2014). Transportation & logistics issues: Emerging markets. [online]. Available at [accessed December 19, 2014] VALDEZ, A., (2003). Adaptation Market Strategy. [Online]. Available at [accessed December 19, 2014] WANG, H. (2012, July 7). A Method of the Cloud Computing Security Management Risk Assessment - Springer. [Online].Available at [accessed December 19, 2014] Read More