Case Study of Espoir Cosmetics
CASE STUDY OF ESPOIR COSMETICS
INTRODUCTION
Compiled is a case analysis of the Espoir Cosmetics Company’ decision as to whether develop a Global Branding initiative or to carry on with the firms existent Domesticated marketing concept. This document breaks down the operational environment of the firm, and proceeds o avail some recommendations as the best courses of action that Espoir can take.
The firm exits within the personal care industry, whose key success factors and industry structure is oriented as below.
INDUSTRY STRUCTURE
The personal care industry is characteristic of a few dominant firms, which have often built their brand equity over a long period.
The industry is a competitive oligopoly in nature. Success within this industry is dependent on a firm’s ability to adapt products to suit the local market and detect potential opportunities within those markets.
Customer‘s Needs/ Preferences
Incorporating a multi –domestic approach is one of the more effective strategies as it satisfies each markets unique need. A global campaign would be quite effective for larger market segments with similar needs.
Packaging
Practicality is of essence depending on which market segment Espoir targets. For example, the Asian market demanded bottles of nail polish that were smaller than the standard 12-milliliter.
The size and packaging of products in this industry has influence on the success.
Economies of scale
With many more local and international players joining the industry, cost reduction is a favored competitive tool. The potential for economies of scale have increased as players seek to reduce the cost of production by producing in volumes
Brand Equity
To succeed in the personal care industry the firm has to build a strong brand that will compete against other brands.
Espoir aims to cultivate the image of the smart, independent risk taker woman. It is crucial to build the image of beauty, status and fashion in the mind of the
INTRODUCTION
Compiled is a case analysis of the Espoir Cosmetics Company’ decision as to whether develop a Global Branding initiative or to carry on with the firms existent Domesticated marketing concept. This document breaks down the operational environment of the firm, and proceeds o avail some recommendations as the best courses of action that Espoir can take.
The firm exits within the personal care industry, whose key success factors and industry structure is oriented as below.
INDUSTRY STRUCTURE
The personal care industry is characteristic of a few dominant firms, which have often built their brand equity over a long period.
The industry is a competitive oligopoly in nature. Success within this industry is dependent on a firm’s ability to adapt products to suit the local market and detect potential opportunities within those markets.
Customer‘s Needs/ Preferences
Incorporating a multi –domestic approach is one of the more effective strategies as it satisfies each markets unique need. A global campaign would be quite effective for larger market segments with similar needs.
Packaging
Practicality is of essence depending on which market segment Espoir targets. For example, the Asian market demanded bottles of nail polish that were smaller than the standard 12-milliliter.
The size and packaging of products in this industry has influence on the success.
Economies of scale
With many more local and international players joining the industry, cost reduction is a favored competitive tool. The potential for economies of scale have increased as players seek to reduce the cost of production by producing in volumes
Brand Equity
To succeed in the personal care industry the firm has to build a strong brand that will compete against other brands.
Espoir aims to cultivate the image of the smart, independent risk taker woman. It is crucial to build the image of beauty, status and fashion in the mind of the