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Sarbec Cosmetics France   India Marketing Strategy
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Sarbec Cosmetics France India Marketing Strategy

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Marketing Strategy for Sarbec cosmetics,France a SME FMCG Cosmetics Company eyeing the Indian Market.

Marketing Strategy for Sarbec cosmetics,France a SME FMCG Cosmetics Company eyeing the Indian Market.

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  • 1. Team 2B: Sukran Kasnak Laura Knaub Bhuvan Mathur Mélanie Monaco Sarah Mussol Yating Wang
  • 2. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 3. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 4. General Recommendations
    • Develop Sarbec own brands
    • Standard products
    • Standard brand name
    • Local price
    • Local promotion
    • A glocal strategy
    • A contract negotiated in euros
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 5. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 6. The Opportunities and Threats of India EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 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 Organization Investment 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
  • 7. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 8. 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 (--)
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 9. A direct export entry mode
    • Hierarchical entry mode defin i tely not suitable
    • Export entry mode to gain better market knowledge with the lowest commitment and risk
    • Consideration of an intermediary entry mode in the future for more control
    • A direct export entry mode for control and commitment
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 10. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 11. The Hair care products
    • A fast growing market
    • Acceptable competition
    • Opportunity to sell specialized products on a niche market
    • The “natural” advantage
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 12. The Perfumes
    • The French perfumes reputation
    • Increasing demand
    • Reduction of tariffs on imported perfumes
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 13. The Wipes
    • A new promising market
    • The support of the government
    • Success of convenient disposable products
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 14. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 15. General strategy
    • high-margin rather than high-volume
    • Strong position on niche markets
    • The 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 Del h i)
    • Standardized packaging in French and English
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 16. General strategy
    • A differentiated strategy according to the product:
      • Wipes to make profits on volume
      • Shampoo and Perfumes to make higher margins
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 17. The pricing 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
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 Margin Duties Transportation costs Manufacturing costs
  • 18. The hair care products: Institut Phyto Target: 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 EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 19. Selling Price for the consumer: Rs 175 MS expectation: Sales expectations: The hair care products: Institut Phyto EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 Year 2010 2011 2012 Market share 2% 2% 3% 2010 2011 2012 Expected 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
  • 20. The Perfumes: C. de Farme Target: both male and female from 18 to 35 years old middle class + Perfumes as a gift Product: C. de Farme perfumes Place: A n exclusive distribution in the 3 big department stores Promotion: Samples will be given away in front of the major department stores EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 21. The Perfumes The perfumes launched: EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 Women Eau de toilette CAMELIA Eau de toilette TERNATA Eau de toilette SAMOA Men Eau de toilette EROS COOL Eau de toilette EROS FEVER Longboard
  • 22. The Perfumes: C. De Farme Selling price to the consumer: Rs 1000 MS expectation: Sales expectations: EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 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
  • 23. The Wipes: Corine de Farme Target: urban active people from 25 to 50 years old high disposable income Busy life Research of convenient and serviceable products Product: Baby wipes Facial cleansing wipes Family packages and on-the-go packages Place: supermarkets   , department stores   Promotion: Samples in schools, maternity, supermarkets Leaflets to educate customers EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 24. The Wipes: Corine de Farme Selling price to the consumer: Rs 3,50 per wipe MS expectation: Sales expectations: EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 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
  • 25. Expected results of Sarbec in India
    • Global sales expectations in value
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009 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
  • 26. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 27. Future Road Map EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 28. Agenda
    • General recommendations
    • Why selecting India?
    • The market entry mode
    • The product range
    • The strategy
    • Future road map
    • Summary
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 29. Summary
    • India, a thriving market
    • Opportunities on the cosmetics market
    • Selected products to be launched: hair care, wipes and perfumes
    • A complementary strategy by product
    • A first step in India through export towards more commitment
    EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 30. Thank you! EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009
  • 31. Questions and Answers EDHEC BUSINESS SCHOOL_TEAM 2B_01.12.2009

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