Femme Fatale is an Australian cosmetics company founded by two sisters that produces unique bath products. They are looking to expand globally starting with the UK and US markets. They currently have strong brand recognition in Australia but limited distribution channels, promotions, and funding to expand abroad. Their most critical issue is a lack of distribution channels in the influential New York market and beyond. Short term recommendations include expanding retail points of sale in US regions and marketing campaigns. Long term goals include increasing exports leveraging New York influencers, identifying cost advantages, and ultimately becoming a multinational corporation.

1. Case Study
“Femme Fatale”
The Challenge of Global Growing
February 2007
This case study is contributed by the students of
Bachelor Degree of Business (Management) of RMIT
University, Australia

3. Products

4. Background Information
• Femme Fatale - an innovative and agile Australian cosmetic firm,
founded by two sisters in their 20’s.
• Positioned as predictable “good woman”, associated with the word
“seductive, irresistible, powerful, strong, exciting and
independent”.
• Since long working hours and rising numbers of women workforce, it
increased the demand for time-saving and labour-saving products.
• Product concept revolved around bathing at home as a retreat and
replenishment, these could be made it as a global product .
• Planning to extend their products to a similar lifestyle country as UK and
US, the consumers often influence world tastes and opinions.
• Now - face the challenge of “growing global”

5. External and Internal Environment
STRENGTHS :
 Strong local recognition -
Australian made & owned
(country-of-origin effect)
 Unique bath products Australian
made ingredients and materials.
 Symbolic linkage of brand name
- “intriguing, independent,
irresistible
 Unique packaging (personifying
the scents, storyline for each
character)
WEAKNESSES :
 Lack of strong financial back-up
 Insufficient distribution channels
 Less product varieties
 Insufficient promotion activities

6. External and Internal Environment
OPPORTUNITIES :
• Economic Growth
- Emerged of BEMs, ASEAN markets
- Increase in disposable income and
consumer spending power (incl.
teens/pre-teens)
• Social and Cultural Trend
- Stressful and time-poor
- Increase in ageing populations,
education level, career-oriented
women, desire for upper-end products
• Technological Advancement
- Internet, E-commerce, E-trade
facilitates easy trade onshore /
offshore (eg. tracking shipment online
“FedEx”)
THREATS :
• Political & Legal
- Entry barriers (tariff / quota to
protect local markets; imported
goods regulation governed by
foreign country eg. FDA in US)
• Cultural
- Ethnocentric takes place in most
countries. (eg. US’s patriotic
behavior) i.e. willing to support local
goods
• Competition
- Fierce competition among cosmetic
and toiletries products globally (eg.
P&G, Johnsons & Johnsons) -
market dominancy
• Environmental Constraints
- “Green”companies effect in product
packaging and materials used
(eg. recycle bottles)

7. Target Market Analysis
• Gender – Female
• Age – 18-25, 26-40, 41-60
• Lifestyle – time-poor, enjoy life, health
conscious (VALS: achievers and experiencers)
• Trend - “Lead Users” (unique type of bath
product, up-market, similar lifestyle)
• Behavioral – occasions, benefits sought, user
status, usage rate, loyalty

8. Target Market – New York
Influential
NY, consumers are “Influential” in world market (Platform)

9. Competitive Analysis
Major Competitor in New York (Chosen Country)
• http://www.benefitcosmetics.com

10. Competitive Analysis
Major Competitor in New York (Chosen Country)

11. Marketing Problems / Main Issues
• Limited distribution channels (eg. not enough point-of-
purchase in NY).
• Insufficient promotional mix (limited to stories/interviews
and magazines coverage eg. Today show & American Vogue
magazine).
• Inadequate fund (start-up business by 2 sisters without large
financial support).
• Difficulties in penetrating and excel in niche market without
keeping its product “innovative” (eg. need to meet the fast
changing trend of NY).
• Inseparable risk in entering competition with other local
brands for similar benefit sought.

12. Most Critical Issue
• Limited distribution channels to extend
“influentials” NY market and to expand
“globally”.

13. International Product Cycle Theory
• Intro to growth stage - entered in local market and
extended to UK with similar lifestyle orientation and
purchasing power.
• Demand structure - product standard emerged to meet
the “pampering” needs of consumer.
• Innovator company marketing strategy - launched in US
market, target on early adopters with leading trend
power (eg. word-of-mouth, creating “voice” / “influential”
from the “lead users”).
• International competition - compete with other local
brands in its entered countries

14. Recommendations – Short Term
• Enlarge its point-of-purchase by opening new retail
stores / counters within US different region e.g. San
Francisco, Washington D.C.
• Organize marketing campaign (align with its product
image of “feeling good”) to attract more “lead users”
such as beauty contest or lucky draw.
• Marketing Research – collect data from focus group to
realize their habit on bathing and occupation related as
well as age to identify our demographic in different
regions or districts.
• Sponsorship to a female celebrity using any kind of the
product.
• Align with fashion magazine free offer trial to reach
target customers and create loyalty.

15. Recommendations – Long Term
• Increase in exporting to developed countries by the
NY “influentials” effect.
• Identify its comparative advantage such as low cost
leadership e.g. set up manufacturing plants in
developing country such as Indonesia.
• Explore market opportunities such as invite direct
investment, joint venture, partnership, franchising.
• Ultimate goal to become a MNC (innovative design,
product standardization, and excellent marketing
plans in meeting cultural difference.

16. Marketing Strategies
• Price - competitive price (penetration).
• Product - emphasize uniqueness.
• Place - Agent  Wholesales  Retailers
 Consumers
• Promotion - PR (Journalism, Interview), Print Ads,
Membership enrollment (on-line), (redemption,
data collection, communication)

17. Outcomes
• Reinforce branding image.
• After sustain in New York market, then
stepping out to Asian countries such as
Japan and China.

18. Thank You !