Beyond soccer and samba, Brazil is known for being an innovative, forward-thinking and creative country with warm people, an energetic culture, abundant natural resources and a good-looking population. We wanted to see how we could bring some of this "jeitinho brasileiro" to the United States. Natura Cosméticos is a Brazilian purveyor of personal care products and because Boston has the third largest foreign-born Brazilian population in the United States, we wanted to see how Natura Cosméticos would fare in the Boston market. Market Research included exploratory research, surveys and focus group interviews (FGI) and through this presentation, we want to share our results and recommendations for Natura Cosméticos.

1. Vilma Díaz, Ilana Dourado and Matilde Freiría

2. Background Info
Natura is a Brazilian company founded by entrepreneur Antonio Luiz da
Cunha Seabra in 1969. The simple laboratory and cosmetics shop
eventually blossomed into a global and public company that
manufactures, markets and distributes nearly 700 personal care
products across 8 segments.

3. INTERNAL ANALYSIS
Product Strenghts Product Weaknesses
• 100% brand awareness in country of origin
• Eco-friendly and innovative line of products
• Unique packaging
• Reasonably priced, more accessible
• SOU serves multiple demographics
• 100% brand awareness in country of origin
• Eco-friendly and innovative line of products
• Unique packaging
• Reasonably priced
• The product is unisex and might be hard to target
• Product is not season-specific
• Brazilian consumers familiar with Natura may not be
familiar with the new line, SOU
Market Opportunities Market Threats
• Forecasted growth of hair care market
• Boston is home to the largest Brazilian population
outside of Brazil
• Boston is considered to be a “green” city - LOHAS
consumers.
• Fierce Competition
• Skepticism about authenticity of organic and natural
products
• Door-to-door sales are not common in the U.S.
SWOT Analysis

4. Marketing Problems
Lack of brand awareness in the Boston market
Fierce competition with local brands like Aveda and
L’Oreal who are pioneers in sustainable and natural hair
care and bath products
Reliance on a direct-sales model

5. Research Objectives
General Research Objectives
Find out how many different personal and hair care
products consumers use on average.
Discover how many people are using organic and/or
natural personal care products, and determine the
extent to which young people care about sustainable
living.
Identify consumers’ opinions regarding door-to-door
sales and determine which distribution methods are
most common and desirable for personal and hair care
products.

6. Research Objectives
Specific Research Objectives
Find out how many, if any, Brazilian consumers in the
U.S. are familiar with Natura’s SOU product line.
Gauge the overall evaluation and purchase intent of the
SOU product concept
Evaluate SOU’s brand image based on key attributes
Determine what position Natura should take and which
segments to target to become relevant in the Boston
market
Discover how many people find SOU’s packaging
attractive
Find information to develop marketing mix strategies
(e.g. promotion, distribution channels, price, media).

7. Methods – FGI
• 9 participants:
– 5 females and 4 males
– Ages 19 – 26 years old
– All students (graduate and undergraduate)
• Key measures – consumption patterns of personal care
products, overall evaluation, brand likes and dislikes, brand
personality, purchase intention, sustainable practices, pricing
and promotional tactics
• Procedures: Concept board, 2 TV Commercials and 1 Case
Study

8. Methods – Survey
• Data collection method: face to face
personal interview and email
• Sampling Methods and Samples
– Non-Probability sampling with
convenience samples
– 75 respondents
• 55 females, 19 males, 1 Unknown
• 18-24 years old (39), 25-29 years old (18), 30+ years old (18)

9. Methods – Survey
• Key measures
– Personal care product usage and consumption, important qualities
sought in personal and hair care products, attitudes towards
sustainable living and sustainable products, overall brand
evaluation, evaluation by key attributes, brand awareness, brand
image, purchase intention, store location, pricing acceptance and
promotional tactics
• Data Analysis: SPSS
– Frequency, crosstabs, ANOVA and T-test
• Action Standard: High
– Top 2 box 60%, mean 3.60
– High competition, mature product life style, unique concept and
experience in market expansion

10. Results – FGI (before concept board)
• Consumption patterns
– Shampoo and conditioner used 2-3 times per week
– Price: $4.99-6.99 per item, organic items worth
$12
– Quality: Premium, organic and/or natural
– Purchase: Large retail stores (Target), drugstores
(CVS), direct sales (door-to-door) not an option

11. FGI Results – Overall Evaluation
• Negative Attitudes:
– Similar to Morrocan Oil, Tressemé, L’Oreal Kids
– Low brand recognition
– Doubts about trustworthiness
• Positive Attitudes:
– Suited towards active lifestyle
– 100% recyclable packaging
– Premium
– Cause-oriented

12. FGI Results
• Low brand awareness
– No brand recognition, skeptical
– Brazilian hair products are well-regarded
• Purchase intention
– Packaging similar to certain competitors
– Sales/deals would encourage purchases
• Promotion
– Samples
– Flyers (in salons and places of purchasing)
– emphasis on packaging benefits and Natura causes
– Social Media campaign and contests

13. FGI Results
• Recommendations:
– Focus on target consumer establishments
– Use social media
– Provide more information about packaging benefits
• Potential target market:
– Females, 25 and older
– Young professionals, mothers

14. Results – Survey (before concept board)

15. Price Range: Hair and Bath
0
15
30
45
60
under $5 $5-$9 $10-$19 $20-$29 $30-$39 $40-$49 $50+ under $10 $10-$20 $20-$30 $30-$40 $40-$50 $50+
101
15
45
37
0
89
20
31
23
9

16. Personal Care Products Quality Preference
When buying a personal
care product respondents
prefer:
product quality
performance
scent

17.
Results – Survey (after concept board)

18. Overall Evaluation of SOU Brand
1
2
3
4
5
Total Female Male 18-24 25-29 30 or older
3.613.61
3.39
3.26
3.59
3.5
Top 2% box: 60 %
Mean Score: 3.60

19. Purchase Intention
1
2
3
4
5
Total Females Males 18-24 25-29 30 or older
3.22
3.33
3.16
2.63
3.43
3.22
Top 2% box: 60 %
Mean Score: 3.60

20. SOU Brand Image Evaluation
1
2
3
4
5
Reliable Youthful Trendy Innovative Unique Eco-Friendly Energetic
3.64
3.75
4.04
3.81 3.82
4.04
3.75

21. SOU Attributes
1
2
3
4
5
Product Quality Affordable Sustainability 100% Recyclable Materials Brazilian Products
3.71
3.93
3.86
3.99 4.01
2.41
3.49

22. Conclusions
Consumption Patterns:
• Only 3% chose door-to-door sales suggesting strong aversion to Direct Sales
82% showed strong preference for drugstores, (58%) grocery stores and (47%)
large retail stores
• 31% agreed that $10-$20 was the ideal price range
• 67% find SOU hair care products reasonably priced
• 51% find SOU bath products reasonably priced
Consumer Attitudes and Beliefs:
• Mostly concern quality, performance and scent
• Strong preference for natural and organic products
• Strong preference for brands that are cause-related and place an emphasis
on community involvement

23. Conclusions
SOU Brand Acceptance
• Positive overall evaluation
Top 2 Box% : 56% for females and 42% males
Female mean score 3.59
• Moderate purchase intention:
Top 2 Box% : 50% for females and 11% for males
=> Recommend to enter the Boston market
Primary Target:
• Female consumers ages 25-29 years old
• environmentally conscious, LOHAS consumers

24. Recommendations
Positioning:
Eco-friendly, Purveyor of 100% recyclable, pouch-like packaging and
high-quality, exotic (Brazilian), natural products
Brand Image and Attributes:
• Emphasize positive attitudes towards recyclable materials, no
additives or dyes, and natural and organic
• New distribution model (negative attitudes toward direct sales)
• Align with environmental causes and specific celebrity
endorsements
• Run interactive social media campaigns

25. Recommendations
Target Audience
Both male and female between 25-29, who consider themselves to
be eco-friendly with an active lifestyle
Product
Concept
Eco-friendly
100% Recyclable
Packaging
Place
Drugstores,
Grocery Stores
and Large Retail
Stores in Boston
Price
Affordable Price
Promotion
Social Media, In-
Store Displays and
Magazine Ads

26. Future Research Direction
• Ideal social media outlets
• Celebrity Endorsement
• Beauty bloggers: Michelle
Pham
• In-store media promotion
• Discover attitudes about
unisex products

27. >>><><<>><>Thank you><>><>>>>>>