sarbec cosmetics france india marketing strategy
DESCRIPTION
Marketing Strategy for Sarbec cosmetics,France a SME FMCG Cosmetics Company eyeing the Indian Market.TRANSCRIPT
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Team 2B:
Sukran KasnakLaura KnaubBhuvan MathurMélanie MonacoSarah MussolYating Wang
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 3
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General RecommendationsDevelop Sarbec own brandsStandard productsStandard brand nameLocal priceLocal promotionA glocal strategyA contract negotiated in euros
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 5
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The Opportunities and Threats of India
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Opportunities Threats
Good business relationships between France and India
Tariff and non tariff barriers
economic growth of 7,48% in 2008 according to the India Central Statistical OrganizationInvestment grade BB+
High competition with many foreign companies willing to enter the market and strong position of the multinational groups
7% growth rate in the cosmetic market between 2009 and 2012 (RNOS)
Low average purchasing power
Increasing of the income level which leads to higher purchasing power
Poor development of the retailing system
Fast development of the middle class Price sensitive market
Increasing share of women working High brand loyalty
Cultural differences between India and France
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 7
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A direct export entry mode Firm size (-) Complexity of the product (--) International experience (+) Product Differentiation
Advantages (-+) Risk averse (-) Control (-) Flexibility (--) Tacit nature of know-how (+) Socio-cultural distance (--) Country risk/Demand
Uncertainty (+)
Intensity of competition (--) Market size and growth (++) Direct- Indirect trade
barriers(++) Small number of relevant
export intermediaries available (--)
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A direct export entry modeHierarchical entry mode definitely not suitableExport entry mode to gain better market knowledge with
the lowest commitment and riskConsideration of an intermediary entry mode in the future
for more controlA direct export entry mode for control and commitment
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 10
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The Hair care products
• A fast growing market• Acceptable competition• Opportunity to sell specialized products on a niche market• The “natural” advantage
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The Perfumes• The French perfumes reputation• Increasing demand• Reduction of tariffs on imported perfumes
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The Wipes• A new promising market• The support of the government• Success of convenient disposable products
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 14
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General strategyhigh-margin rather than high-volumeStrong position on niche marketsThe main target
Young urban people Middle to high income from 18 000 to 98000
Euros per year-> around 3500 millions of household
Focus on big cities ( Mumbai, New Delhi)Standardized packaging in French and English
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General strategyA differentiated strategy according to the
product:Wipes to make profits on volumeShampoo and Perfumes to make higher
margins
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The pricing
Margin
Duties
Transportation costs
Manufacturing costs
Between 40% and 60 % of the selling price
• Manufacturing costs unknown• Price based on competition prices, mainly of foreign companies exporting their products to India
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The hair care products: Institut PhytoTarget: urban active people from 25 to 50 years old high disposable income Product:Institut phyto shampoo and conditioners Place:spas, hairdressers, drugstores, specialized stores Promotion:samples and leaflets offered in spas and at hairdressers
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Selling Price for the consumer: Rs 175
MS expectation:
Sales expectations:
The hair care products: Institut Phyto
Year 2010
2011 2012
Market share
2% 2% 3%
2010 2011 2012Expected Total Sales in the Market in value (Rs Million)
66 884.4 72 347.2 78 105
Expected SARBEC Sales in value (Rs Million) 2397.5 2555 2712.5
Expected SARBEC Sales in volume (Million units)
13.7 14.6 15.5
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The Perfumes: C. de FarmeTarget:both male and femalefrom 18 to 35 years old middle class+ Perfumes as a giftProduct:C. de Farme perfumesPlace:A n exclusive distribution in the 3 big department storesPromotion:Samples will be given away in front of the major department stores
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The PerfumesThe perfumes launched:
Women
Eau de toilette CAMELIA
Eau de toilette TERNATA
Eau de toilette SAMOA
Men
Eau de toilette EROS COOLEau de toilette EROS FEVERLongboard
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The Perfumes: C. De FarmeSelling price to the consumer: Rs 1000 MS expectation:
Sales expectations:
Year 2010
2011 2012
Market share
1% 1-2% 3%
2010 2011 2012
Expected Total Sales in the Market in value(M€)
123.73 148.48 185.6
Expected SARBEC Sales in value(M€)
1.23 3.0 5.56
Expected SARBEC Sales in value(M Rs) (1€=69,942 Rs)
86.03 209.86 388.88
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The Wipes: Corine de FarmeTarget: urban active people from 25 to 50 years old high disposable income Busy life Research of convenient and serviceable productsProduct: Baby wipesFacial cleansing wipesFamily packages and on-the-go packagesPlace:supermarkets , department stores Promotion:Samples in schools, maternity, supermarketsLeaflets to educate customers
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The Wipes: Corine de FarmeSelling price to the consumer: Rs 3,50 per wipe MS expectation:
Sales expectations:
Year 2010 2011 2012
Market share 7% 8% 10%
2010 2011 2012
Expected total sales in the market in value Rs million
85.3 91.3 97
Sarbec expected sales in volume millions of units of package of 20 wipes
93.297 114.125 151.563
Sarbec Expected sales in value in Rs million
6.531 7.989 10.609
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Expected results of Sarbec in IndiaGlobal sales expectations in value
2010 2011 2012
Expected total sales of Sarbec in India in value Rs million
2490.06 2772.85 3111.99
Expected total sales of Sarbec in India in value € million (1 Rs = 0,0143)
35.608 39.652 44.501
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
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Future Road Map
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AgendaGeneral recommendationsWhy selecting India?The market entry modeThe product rangeThe strategyFuture road mapSummary
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SummaryIndia, a thriving marketOpportunities on the cosmetics marketSelected products to be launched: hair care,
wipes and perfumesA complementary strategy by productA first step in India through export towards
more commitment
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Thank you!
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Questions and Answers
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