Natura Adopting A Model Of International Market Entry Marketing Essay

Coming back to international cosmetics market since the twelvemonth 1990s, Natura has bit by bit succeeded with several accommodation of market entry policies. Two specific groundss are “ Maison Natura ” in France and “ Casa Natura ” in Mexico. These theoretical accounts show that the degree of geographic variegation, market committedness and internationalisation ( The Uppsala internationalisation theoretical account ) of Natura has increased every bit good as their international market entry method has changed in comparing with direct gross revenues theoretical account of all time -used. Furthermore, in order to travel international more dramatically, Natura should use an appropriate market entry scheme. In my sentiment, it can be “ Hierarchical theoretical account ” with resident gross revenues representatives in foreign mark market.

First, it should be mentioned the direct gross revenues theoretical account that Natura used to use to supply merchandises to its clients. The current demand for the company ‘s cosmetics are met through the force of 483000 active gross revenues representatives in Brazil and 36000 agents abroad, who are well-trained and flexible advisers. And largely orders from clients are placed via Web and telephones.

However, with Gallic market of which Paris has been known as a holy metropolis of manner and beauty merchandises, to pull much attending from the populace, Natura innovated its traditional manner. The company decided to open a two-storey flagship shop which was called as “ Maison Natura ” in 2005. This shop takes the responsibility of more than a point of gross revenues, where can be seen to expose Natura ‘s belief and vision. Besides here samples are given to clients or publicity events go on ( Natura instance survey ) . There is an betterment in the manner Natura enters to the market and persuades possible purchasers. With this retail shop, Natura has to pass more investing than its direct distribution. It is for the organisation, selling and even personnelaˆ¦For illustration, the company had to construct a shop and do it go a topographic point served for many intents. It is so different from a call Centre which can merely have purchase orders. Besides that, to accommodate to this competitory environment, Natura modified its merchandises ‘ packaging and size. It can non be denied these activities were able to assist Natura acquire a bridgehead in France. And the grounds were that the company prepared carefully market specific cognition and made market committedness. From that, Natura seems to be more suited for an international market entry theoretical account which requires more duty and competency.

And about Mexican market, it is still another addition in market committedness every bit good as internationalisation. However, there is leapfrog phase herein. The distance from Mexico to Brazil is smaller than that of France and the clip of come ining Mexican market is earlier two old ages ( 2003 ) but internationalisation procedure goes up. Having some advantages of similar features of economic system, demographics, passion for cosmetics, Natural besides faced the issue of late engagement ( Natura instance survey ) . Hence, in order to acquire success, it seemed to bespeak the company to set a new scheme. The solution given was that Natura House which has strengths of both pure direct gross revenues theoretical account and retail shop. There gross revenues advisers can assist each other with experience and it can be topographic point for exhibitions, developing addresss or merchandise testing, offerings. Clearly, advantage of direct gross revenues theoretical account which is the strong relationship between terminal user and gross revenues representative, and those of retail concatenation which are close relationship among gross revenues advisers and multi-purpose topographic point are combined. Not merely the company invested in finance to set up this “ hybid theoretical account ” at big towns and countries with many edifices, but besides at Natura House, new selling tools were employed at the first clip to remind the populace about the company ‘s trade name ( Natura instance survey ) . For illustration, the company tried publishing “ magalogue ” . By this manner, Natura could provide both its merchandise, particular offerings and wellness, cosmetics articles every bit good. It can be considered that Natura ‘s efforts of organisational and selling alteration demonstrates their aspiration to acquire a measure into Mexican cosmetics market and busy a certain market portion. Besides the attack was done professionally step by measure. Importantly, it did differ from direct gross revenues theoretical account Natura used to utilize.

Far from these two markets, in the undermentioned old ages, the company wants to assail new possible big 1s, such as the UK, the US, Russia and so on.Only in the United States, in 2004, the value of gross revenues of cosmetics and toilet articless in 2004 was 45.6 one million millions US $ , made up 19.7 % of entire market portion. Or In United Kingdom and Russia, the Numberss were 11.6 one million millions US $ ( 5 % ) and 6.4 one million millions US $ ( 2.8 % ) severally ( table 1 of Natura instance survey ) . However, with these states, the chief retail channel methods are non the same with Brazil. While in Brazil, gross revenues through direct gross revenues gained the singular proportion of 27.4 % in 2004, in Western Europe, that per centum was merely 4.7 % . In these parts, the most common methods are different each others. ( Table 2 of Natura instance survey ) .

From the factors which have already mentioned, in my sentiment Natura should travel to use a new international market entry – Hierarchical manner. With current conditions, it can open resident gross revenues representatives in the host state. Rather similar to theoretical accounts employed in France and Mexico, the company can construct a topographic point of many maps served for gross revenues and selling activities. These can be a salesroom, an information Centre for clients, after-sales service Centre, a preparation Centre for gross revenues advisers, a topographic point for sample receivingaˆ¦ Gross saless and service section should be located in the host states because it will be easier to cognize exhaustively about local passion and demand in comparing with making from distance. When being familiar with local market, Natura can open gross revenues subordinates. At this concern office method, the company can be take revenue enhancement advantage but it must take more duties and liberty. Besides, research and development, production, selling sections are still situated in Brazil. It seems to be face a big sum of troubles to alter abroad assumed that other conditions do non alter.