Case Facts• Company: Espoir Cosmetics, one of the world’s best known cosmetic companies ($1.1 billion in value)• Natasha Singh: Executive VP and Global Marketing Officer• Ed Johnson: Chairman and CEO
Current Scenario• Singh proposes to associate Espoir’s new summer line with the launch of Supreme Studio’s second Diana’s She Devils movie
Singh’s Argument• The movie was a hit 2 years ago and research suggests that the sequel will be a bigger hit• Studio’s publicity plans are huge• Do something splashy for their 50th anniversary next year• Ideal vehicle to launch a global brand building strategy• The 3 lead stars are from Europe, Asia and South America- their fastest growing markets• Create 3 new lipstick and nail polish combinations in the right palette for each of the 3 stars and associate stars with the advertising• Launch products in specially designed combination packs as film is released in each country
Johnson’s Concerns• If recession gets worse in U.S. marketing budgets will be cut• Country heads might not be ready to compromise local advertising and promotion for global promotion• Idea needs to be confirmed with country heads of North America, Europe and South Asia
Scenario for North America• Brian Davis, Marketing head for North America loved the idea• According to him, 2 of the stars represent big ethnic markets in the U.S.
Scenario for Europe• Jacques Dubois, Espoir’s newly appointed marketing head for Europe agrees to the idea• Espoir’s archrival, Revlon had boosted awareness by tying up with the 2002 Bond film.• However, was opposed to the idea of a central website. Wanted a different look, feel and name from the American site.
Singh’s previous exploits in India• Reduced prices and sizes of espoir’s products in India• Made sure espoir products were available all over India• Instead of large counters the products were placed near the cashier in the small stores
Vaslko Mazur• Current head of Espoir’s opreation in eastern europe• Had met Singh five years back in a training program in Los Angeles
Confrontation with Singh• Mazur did not like the idea of Espoir’s movie based promotions• He believed that appointing beauty queens as ambassadors and having competition based promotions would be a good strategy• Believes that Eastern Europe requires a local startegy, similar to the one Singh had employed in India
Current Indian Scenario• India is presently exposed to a lot of global culture• Cost-Benefit equation in towns is also working similarly to the way it does in cities• Public is ready to watch good movies irrespective of where they are made.• All global brands are available in small towns
Global Strategy - Challenges• Tends to discourage innovation in local marketing strategies• Lack of data to prove that global strategies will reduce cost via economies of scale• No leadership in place to take responsibility for the anniversary line• Local marketing heads like Mazur will resent the move
Recommendations• Global marketing strategy might alienate certain countries• Cosmetics requires customer to personally identify with product, will be difficult with a global strategy