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Hi, need to submit a 1250 words paper on the topic Marketing Strategies of Cosmetics in an International Market.
Hi, need to submit a 1250 words paper on the topic Marketing Strategies of Cosmetics in an International Market. Companies rely on the diversification of functional groups of management to help in the collection of adequate data and information to enhance their survival in the competitive business environment. Different questions on how the business can penetrate the diverse market share through different modes of transport, such as shipping, should be formulated to assist in choosing the best strategies. For example, how do the P.E.S.T aspects influence an enterprise in a new market? What role does a SWOT analysis play in improving the survival of a product globally? Why is adaptation, arbitrage, and aggregation business strategies essential for businesses opening in new markets? What capabilities in the business need subcontracting? The listed questions are some of the questions that the case study presented in this paper aims to answer. .
Background Information
For any business enterprise, before engaging in global marketing, it is vital to conduct a critical evaluation of the firm’s capability to satisfy the clients’ necessities. Evaluation should focus on how the company is capable of ensuring the attainment of the objective to satisfy the customer’s needs. Surviving in the emerging markets, therefore, requires proper strategic planning. Good planning entails establishing a customer approach, technology enhancement plan, source of a finance plan, and growth technique (Info Entrepreneurs, n.d). For example, a cosmetic company opening its branches in foreign countries/markets can develop global business approaches to enable it to carry on. Effective globalization business strategies are arbitrage, aggregation, and adaptation.
Aggression involves the duplication of the domestic business model, particularly in a new international market, intending to secure cost benefits when handling bulky products. Aggression strategy primarily focuses on economies of scale. Aggression strategy is vital in achieving efficiency globally because it increases the level of standardization of the production process and product. It is the role of the manager of a business enterprise to ensure that their company obtains economies of scale to enjoy the aggression process. Cosmetic companies can achieve economies of scale by using the same distribution channel. Furthermore, the company should have a standardized website, use the same marketing mix, and encourage ethnocentrism.
Adaptation strategy, on the other hand, involves efforts by a company to provide goods and services that are advantageous and competitive in the international market. Adaptation strategy helps a company to improve and enhance the size of the market it controls (Valdez, 2003). The adaptation technique enables work practices and company products to adjust to the new business surrounding. According to Valdez (2003), an adaptation strategy may move further to include the change of the brand, developing new flavors and alteration of packaging. Adaptation techniques can change the perception of the cosmetic company brand in a foreign market by making its products more appealing to customers compared to the competitors’ products. Despite the importance of adaptation strategy, it also has some dimensions that, when not executed adequately, can affect a company and should be taken seriously. The cosmetic company should, therefore, have a clear adaptation strategy process to avoid wasteful strategies of market placement of the new brands.
Another global business strategy for the cosmetic company is arbitrage. This strategy focuses on getting absolute value by taking advantage of the difference in the international market and the home market. Fund (2014) posits that arbitrage includes buying and selling of securities. It means that arbitrage enables businesses to utilize legal differences, labor costs, and currency exchange to penetrate and survive in foreign markets. It is also vital to note that the supply chain implications of a company rely primarily on the type of technique used. In this regard, cosmetic products are likely to have a tremendous competitive advantage under the arbitrage strategy. The supply chain management of the cosmetic company will, therefore, depend on the nature of the shipment they use.
Marketing using 4p’s strategy
Product
In the analysis of the 4ps strategy, the product is often the first component. The supply chain management personnel often ask questions that include. what tactics can a business enterprise use to improve its products’ features? How does the diversification of cosmetics products in the market beneficial to the company? Which design ensures the sustainability of cosmetics products’ long life span in the market? These questions mean that cosmetic company must improve their products to meet the fashion in demand for them to secure high sales. Moreover, the technology being used in production should meet the recommended standards.
Price
Companies can use PEST analysis to assess the economic position of the target group. Information from the PEST analysis can be used to set or determine the price of a product for a particular market or target group. Price is considered the determinant of the source of income in a business. Price mix marketing activities involve discounts offered by the business, credit availability, payment methods, and price policies. These factors are that consumers willing to buy cosmetic products often consider before they make buying decisions.
Promotion
Promotion mix is used by businesses strategically to make their products to lead or outdo their competitors’ products or brands. Promotion mix helps a business enterprise to create awareness to the target customer segment. Cosmetic business involves fashion products that specifically target certain customer niche in society. It means that the marketing of cosmetic products should target a specific market segment like the youth who are known to be fashion-loving. Ethical issues are also common in product promotion, and a company exploring foreign markets should conform to the cultural and social activities of the community.
Place
Place mix involves the location in which the company opens up its branches or launches its product. In other words, it involves the movement of a product from one location to another. The cosmetic company relies on the shipment as a means of transport to move their products from one point to another.
Brand: Flavia Spray for the Family
This research seeks to conduct analysis for Flavia spray brand international market. The global markets to be focused on are Kuwait, Dubai, Qatar, and Oman, which are located in the Middle East. Other markets to conduct analysis are South Africa and Egypt. Also, Flavia spray brands can find markets in India, Taiwan, Philippine, China, and Malaysia, which are all found in Asia.
The macro and microanalysis of the Flavia spray brand in Africa, particularly in Egypt, revealed that the product needs improvements to meet certain requirements. The micro-environment involves the competitors selling substitute products to Flavia spray brand and consumer behaviors in Egypt. The effects of these factors should be controlled to promote the efficient functioning of the company.
Microanalysis, on the other hand, is external factors that Flavia spray companies have no direct control over, and they have to formulate strategies to adapt or manage them. This macro analysis considers the economic, cultural, social, legal, demographic, environmental, and technological factors. The socio-cultural factors are defined by the community where the product is being sold. it involves the community response to the new product in the market. Demographic factors involve the people who will buy or associated themselves with the new brand. The legal and political factors are used to determine whether the company conforms to the trading laws and legal requirements in Egypt. The economic analysis provides information on whether the target market segment can afford the cosmetic product. It aids in knowing their buying abilities.
Conclusion
Business enterprise chooses to open international branches or engage in international marketing activities to increase their market base and improve profitability. Operating in foreign markets requires companies to focus on the 4ps (products, price, promotion, and place) marketing aspects to assist in marketing a company brand. Furthermore, the PEST factors assist businesses in operating to some limit.
