A company that was established in 1969 in a small garage in the city of Sao Paulo has grown to become considered currently as the largest and most lucrative corporation in the cosmetics sector and one of the most successful in the whole of Brazil. The business model implemented promotes an economic growth compatible and in pace with the social development while responsibly utilizing the country’s natural resources and biodiversity. This socio-ecologically correct behavior has given the company status and recognition while allowing the building of a very particular and differentiated profile which turned out to be very much appreciated by its clients.
Natura adopted a ...view middle of the document...
Since this philosophy is not exclusive to the likes of Brazil’s demographic, it makes sense that the Group would observe expansion opportunities in new markets as well.
As Natura has implemented its business model in Latin America and is present today in major countries of the continent such as Argentina, Bolivia, Chile, Colombia, Mexico and Peru, it starts searching opportunities in yet unreached territories of the world where to put into operation new international platforms. With the opening of its first ever store in France in 2005, Natura established an important step towards the European market. The directly operated store was a point of reference and status, a strong symbol where the company’s vision and believes could be displayed in order to reach a higher level of brand awareness and put on show its appealing Brazilian roots.
Determination of Current Success Patterns
Natura is a brand with a strong root in sustainability which has enabled it to flourish with not only a competitive differential but also an attitude towards life that is particular to them. The social responsibility compromises it assumed gave the them considerable visibility. The brand relies on an emotion-based approach to its clientele that enabled it to found a well-built relationship constructed primarily upon trust. It also realized in early years that its marketing efforts should invest not only in the end consumer but also, and not less important, in all the stakeholders. Understanding their consumers voice can be louder than any kind of media, the goal became to implement major transparency towards them. Direct-selling operations served well this purpose. For Natura, a product out of stock can significantly damage a brand’s image and this model will not allow for that.
Initial growth was propagated based on regional expansion and a high-quality product portfolio. Lines such as ‘Ekos’ and ‘Mamae e bebe’ only reinforce the brands values. Respectable attitudes of maintaining low prices during economic crisis as done in 2001 in Argentina also reinforces issues of brand trust, creating a loyal consumer base.
Assessment of Potential Markets and Competitive Position
For a company that regards the entire world as a marketplace, there are in fact many potential markets that have to be analyzed critically in terms of macro and operating environments in order to restrict the number of possible entrances to realistic opportunities. Assuming Latin America is already well penetrated by Natura, it would be interesting to speculate which would be the most likely subsequent market to be explored and why. As the three founders of Natura assess Russia as a prospect we wonder if it is a coherent choice and where else could they take the brand and spread their wings.
Since 1999, Russia has experienced outstanding growth rates, constantly improving macroeconomic conditions, and a growing involvement in the global economy. Being the fastest growing economy in the G8...