International Marketing Example
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Transcript of International Marketing Example
International Marketing Example
Wiem Azaiez
Linn Mona
Batool Awwad
Sharzad Fereiduni
Doron Rosenberg
Ekaterina Moustafina
Lisa Moore
Background.…• Established: 1988• Ziva Gilad – a local spa technician • AHAVA = “love” in Hebrew• The native mud and salts have healing and rejuvenating qualities • Core business: Dead Sea mineral based cosmetics• Selling in Israel
Going Global…• Mid 90’s – exporting to Europe and U.S. • Shamrock owned by Disney Company invested in AHAVA and
opened the U.S market. • Opened flagship stores Europe and U.S. • Currently present in over 25 countries around the world
The Dead Sea
Some interesting facts:Some interesting facts:
• Why “Dead”?• One of the 7 wonders of the world • The lowest place on earth (-400m/-1300f)• Water contains minerals with healing and
rejuvenating qualities • Healing potential for skin, heart and lung diseases• The story of Cleopatra• The largest natural spa in the world
AHAVA – Marketing MixAHAVA – Marketing Mix
Product lines:• Source – facial and body • Men – skincare for men• Time – anti-aging• Pure – spa products• Dermud – dry and
sensitive• Mineral botanic – soaps• Mineral sun care • Mineral makeup
AHAVA – Marketing MixAHAVA – Marketing Mix
Price:• Penetration pricing strategy
• Source line products prices from 15$ to 25 $
• Most product lines start from $30 to $100
• “Time Line” is the most expensive due to high concentration of minerals.
AHAVA – Marketing MixAHAVA – Marketing Mix
Promotion:• In the past two years invested $20 million in marketing
and advertising• Different approach for different markets• Celebrities• AHAVA music festival• “Skin is in “ compaign, Ny fashion week• Cuponrefund.com
AHAVA – Marketing MixAHAVA – Marketing Mix
• Distribution:
i. Israeli local market
ii. Ahava retail chain
iii.International expansion : 25 coutries in the world
• Online distribution : ahava.com and several other websites such as amazon.com
SWOT Analysis
Strengths:
• Health and skincare benefits • Usage of natural ingredients • R&D • Ecological efforts to save the Dead sea, adding value to the brand• Environmental friendly manufacturing
– No animal testing• Profitable growth, strong operational cash flow• Experienced management for domestic and international markets• Expansion of product offering• Manufacture located in the Dead Sea – saving transportation costs
SWOT Analysis
Weaknesses:
• Very small global market share
• High manufacturing costs (in Israel)
• 50% owned by Gaon Holdings Ltd. Enterprise
SWOT Analysis
Opportunities:
• Sustainable development of the Dead Sea natural resources (environmental-friendly)
• Trend toward more natural ingredients in cosmetics• The only company licensed by Israeli Government to
mine raw materials from the Dead Sea• Situated in a tourist area • Symbol of Israeli success• Cooperation with TEVA (http://www.tevapharm.com/) in
development of dermo-cosmetic product lines.
SWOT Analysis
Threats:
• Dead Sea dehydration• Political Issues• Numerous competitors • Low brand awareness
– Lack of trust from global customers
• Environmental Activists • Exploiting Israel’s natural resources for their private
profits
Conclusions:
• First mover advantage in marketing Dead Sea products.
• Quickly realized global potential
• Offer a wide range of unique products
• Strong marketing skills – Succeeding despite numerous challenges
• Strong financial growth
THANK YOU!
QUESTIONS?