Post on 08-Apr-2018
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Brazil Natura O Boticario
Sales(countrywide) 1.8 billion EUR 1 billion EUR
E_ commerce Own shopping website O Boticario value thee-commerce andinvested $ 833000 inthe development of itssite
Pricing strategy Medium pricing Medium pricing
Products attributes Focused on naturalproducts
A product line of nearly 550 items.
Target market profile Founded in Brazil andavailable in Franceand seven Latin
American countries
2500 stores in Brazil,and more than onethousand point of salein 20 other countries
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NigeriaNigeria
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Nigeria Soulmate Industries Plc PZ Cussons Plc
Sales(worldwide) 2.1 billion EUR 0.9 billion EUR
E-commerce No e-commerce stores so
far.
No e-commerce stores
so far.
Pricing strategy Low end of the market to
attract the low-to-middle
income earners.
low-price strategy
Products attributes Six main product lines Focused on the local
markets and can satisfy
the needs of the local
consumers.
Target Marketprofile
Distributed in neighboringwest African countries by
independent distributors.
Operates in Africa, Asiaand Europe but the
majority of their brands
are sold only in local
markets.
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Country Entry ConditionsCountry Entry Conditions
y Import regulations
y Brazily Shipments
y BrazilianTrade Secretariat.(SECEX)
y Import license
y The common external tariff(CET) 14% to 20%
y Nigeriay Administrative barriers
y Product certificate
y Tariff s and quotas
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FDI regulationsFDI regulations
y Brazily Allowed 100% equity ownership
y Allowed to borrow locally
y
Government limitations and restriction regarding investment
y Nigeriay One of the countries that are open to the ownership of f oreign
equity
y Allowed to open up their own retail stores
y Allowed to borrow locally / poor value of Nigerian currency
y Laws and regulation limitations and restriction regarding investment
to protect domestic companies.
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BrazilBrazil ² ² NigeriaNigeria
Financial and Market entry conditionsFinancial and Market entry conditions
Brazil
�Quite favorable Tax rate
�Stable and convertible currency
� Influential labor union
�Reliable infrastructures : Internet, banking,ICT·s
�Adapted transportation system
Nigeria
� Acceptable tax rate
� Low foreign exchange rate and wealthy current account.
� Child labor issues
� Need of a relative improvement
of infrastructure
� High corruption
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Entry Strategyand
Marketing Plan
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Entry ModeEntry Mode
exporting the body shops hair care product from its home country.
y Avoid the cost of setting up and running a
manufacturing plant in Brazil
y Setup partnership with local retail stores in Brazil in order to sell our products.
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Product/Product/MarketMarket StrategyStrategy
y Target the segment of the population which is between
the age of 15-64 and it holds up to 67.3% of the
Brazilian population.
y Target the educated segment of the Brazilian society so
that they can explain the use of naturally or organic
made hair care products to those who may not
understand the benefits of the product.
y The first year, our main aim is not to make profit but to
gain up to 10% of the market share.
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Product/Product/MarketMarket StrategyStrategy
* Marketing goals
Ensure that the target audience k nows
about our product .
To gain a good market share.
To gain economy of scale.
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PricingPricing StrategyStrategy And PlanAnd Plan
Pricing issues
* Inflation rate : 6,01% in February 2011
* Price controls by domestic government
Pricing goals for PLC stages
Introduction:Penetration pricing
Growth: Cost leadership strategy
Maturity:Positioning on competitors price
Decline: Cost cutting
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PricingPricing StrategyStrategy And PlanAnd Plan
y Pricing method : Marginal-cost pricing
y Method of payment : safest way of payment
where by consumers can pay bef ore the goods
are sent to the consumers.