Natura product in europe

Faculty of BUSINESS AND economics

Milagros Sanchez

Exchange student. Universidad ESAN, Lima. PERU

milagros.sanchez@student.kuleuven.be

NEW HAIR CARE PRODUCTS IN Western eUROPE

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Natura Brand from Brazil

international Marketing

Prof. Dr. Pierre François

Table of contents

1. INTRODUCTION 4

2. ABOUT NATURA COSMETIC COMPANY 5

2.1. Hair careproducts 6

2.2. Product advantages 7

2.3. Natura’s Operation 8

3. CONSUMPTION CULTURE IN WESTERN EUROPE 9

3.1. Population density 9

3.1.1. Countries in Western Europe 9

3.1.2. Total population of the ten most populated countries 10

3.2. Economy 11

3.2.1. Market sizes 12

3.2.2. Per Capita Cosmetics Consumption 13

4. MARKET OF HAIR CARE PRODUCTS IN WESTERNEUROPE 14

4.1. Situation 14

4.2. Competitors 14

4.3. Customers 15

5. ADAPTING MARKETING MIX 15

5.1. Product 16

5.2. Price 17

5.2.1. Entry strategy 17

5.2.2. Competitor behavior 18

5.2.3. Consumer willingness to pay 18

5.3. Place 18

5.3.1. Established distribution network 19

5.3.2. Innovations for distribution in Europe 19

5.4.Promotion 19

5.4.1. Positioning question 20

5.4.2. Channels 21

6. OBJECTIVES IN A SHORT AND LONG TERM 21

7. CONCLUSIONS 22

8. SOURCES 23

INTRODUCTION

In this paper, the introduction of a new line of natural products for hair care will be analyzed. The Brazilian company that produces them is enthusiastic about the opportunity to enter the European market. As part ofmarketing strategy, the adaptation of the marketing mix will be analyzed according to the needs of people who are looking for natural hair care products, as well as the cost benefit ratio in the process of introducing the new brand. The name of the studied brand is NATURA, which refers to use of natural products in their manufacture. The latest is on line with people ecological awareness and growingconcern for the environment; which can add value to the product. The company manufactures different kinds of cosmetics, but this study will refer only to hair care products.
Hair care products are used in greater or lesser degree by all people. However, in recent years there have been many global companies offering natural products, interested in contributing to the welfare of men and women,but also in promoting environmentally friendly products. Therefore organic products for hair care are growing in popularity as consumers become aware of health and environmental risks of chemical components.
According to Euromonitor, the European market for natural cosmetics is growing continuously at a positive rate, with revenues forecast to approach EUR 2 billion in 2010.1 Despite therecent economic crisis and recession experienced during the last year, the demand for hair care products has not been affected. It has been observed the entry of large retail groups who are causing major changes in sales in the European market. The products are sold in specialty shops such as supermarkets, hypermarkets, discount stores, drugstores, pharmacies and department stores.
Finally, amarketing strategy for Natura hair care products that will give them a successful access to the European market will be discussed. As head of the marketing area, we will begin the study with a brief description of the company and the benefits of their products offer. Also the culture of European consumption in order to make a proposal to adapt the marketing mix will be analyzed.
1. 1002-60 TheEuropean Market for NATURAL COSMETICS (2009 Edition) Published: Oct 2009

ABOUT NATURA COSMETIC COMPANY

NATURA COSMETIC is a company founded in Sao Paulo in 1969. One of the objectives of company is to transmit and create awareness about environmental care and sustainable development. Therefore all products are manufactured based on natural ingredients extracted from Peruvian and Brazilian...