Competition 2014
Believe 100% in Nature. Do you?
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The Team
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2
Agenda
• Executive summary
• Situational Analysis
• Decision Criteria
• Recommendations
• Conclusions
• One Year Later
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Executive Summary
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4
Opportunity Statement
We are suggesting a two-tiered solution for Jurlique:
1.
2.
Remain in China and focus on revenue growth.
Refine marketing and branding to better communicate the company’s core competencies and values.
As a result, Jurlique can create sustainable growth leveraging on its current strengths, yielding revenue between 200 and 250
MM by 2018.
Believe 100% in Nature. Do you?
5
Situational Analysis
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6
Key Issues
Drive for revenues growth
Risk of conflict with parent company
Risk of alienating core customers Where
Next?
Potential in
China
Dilution of
“natural”
credentials
7
Challenges of the New Corporate Structure
Pola Orbis revenue split, 2011
(before Jurlique’s takeover)
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•
Pola Orbis acquired Jurlique with the clear intent of expanding overseas sales, and Jurlique’s presence in
China is a key element in the purchasing decision.
•
Pola Orbis’ management would be reluctant to allow
Jurlique to withdraw from the Chinese market
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Source: Pola Orbis AR, 2011
Increased to
12% in 2013
8
Chinese customers are more important than it seems for Jurlique
Chinese customers account for well over 30% of total revenues.
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30%+
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Source: Case study
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9
Moving out of China could cost Jurlique a $40 million market
Strong customer loyalty Presence in mainland China
Strong demand for local beauty products in
China
Domestic sales and Chinese sales abroad
10
Remaining in China will cost Jurlique some of its “hardcore” customers in its home market – will it matter?
China’s Cosmetic and
Toiletry market
Australia’s Cosmetic and
Toiletry market
$4bn
$25bn
2.4% 5-year CAGR
10%