Essay on Natura Case Study

1836 Words Nov 21st, 2011 8 Pages
International Marketing Management

Case Study by Andy Lalinde, Michal Berka & Claudia Baumgart

Case Study – Natura: Global Beauty Made in Brazil
1. The benefits and obstacles of globalization for Natura Globalization can be described as the process of the increasing worldwide interconnectedness in many areas such as economics, politics, culture, communication, environment, etc. The consolidation of the global relations occurs on the level of individuals, societies, institutions and countries. The digital revolution, the technical advance in general and especially in regard to communication- and transport technologies as well as the political decisions to promote liberalization of world trade can be mentioned as main drivers
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These are the following:  Governmental issues: Strong bureaucratic obstacles and poor legislation in terms of product quality are major concerns.  Competitors: As mentioned before, Natura would face local and global competition.  Russian attitude: The Russians in general do not worry too much about sustainability, environmental friendliness and they know little about Brazil and its rainforests.  Background of potential consultants: People born and raised in the former Soviet Union do not easily understand the Western concept of customer importance. Being aware of these risks and appropriate handling could still make a market entrance successful. Although there is also a growing share of direct sales companies in Russia, the implementation of a hybrid model like in Mexico is probably the more appropriate alternative for a country like Russia. Recently salon treatments have become very popular. Women go to a salon of their choice and get all their beauty treatments with different high quality products done there. Our suggestion would be to place Natura consultants in these salons and fulfill the task of being a consultant, but also directly apply the product to the customer. As Russians like to get served, this appears to be the most matching solution for their demand. At the end of the day, it is a financial decision whether the company is willing to take the risk to invest in such an unknown location. But all in all,

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