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Brazil Natura O Boticario

Sales(countrywide) 1.8 billion EUR 1 billion EUR

E_ commerce Own shopping website O Boticario value thee-commerce andinvested $ 833000 inthe development of itssite

Pricing strategy Medium pricing Medium pricing

Products attributes Focused on naturalproducts

 A product line of nearly 550 items.

Target market profile Founded in Brazil andavailable in Franceand seven Latin

 American countries

2500 stores in Brazil,and more than onethousand point of salein 20 other countries

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NigeriaNigeria

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Nigeria Soulmate Industries Plc PZ Cussons Plc

Sales(worldwide) 2.1 billion EUR 0.9 billion EUR  

E-commerce  No e-commerce stores so

far.

 No e-commerce stores

so far.

Pricing strategy Low end of the market to

attract the low-to-middle

income earners.

low-price strategy

Products attributes Six main product lines Focused on the local

markets and can satisfy

the needs of the local

consumers.

Target Marketprofile

Distributed in neighboringwest African countries by

independent distributors.

Operates in Africa, Asiaand Europe but the

majority of their brands

are sold only in local

markets.

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Country Entry ConditionsCountry Entry Conditions

y Import regulations

y Brazily Shipments

y BrazilianTrade Secretariat.(SECEX)

y Import license

y The common external tariff(CET) 14% to 20%

y Nigeriay Administrative barriers

y Product certificate

y Tariff s and quotas

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FDI regulationsFDI regulations

y Brazily Allowed 100% equity ownership

y Allowed to borrow locally

y

Government limitations and restriction regarding investment

y Nigeriay One of the countries that are open to the ownership of f oreign 

equity

y Allowed to open up their own retail stores

y Allowed to borrow locally / poor value of Nigerian currency

y Laws and regulation limitations and restriction regarding investment

to protect domestic companies.

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BrazilBrazil ²  ² NigeriaNigeria

Financial and Market entry conditionsFinancial and Market entry conditions

Brazil

�Quite favorable Tax rate

�Stable and convertible currency

� Influential labor union

�Reliable infrastructures : Internet, banking,ICT·s

�Adapted transportation system

Nigeria

� Acceptable tax rate

� Low foreign exchange rate and wealthy current account.

� Child labor issues

� Need of a relative improvement

of infrastructure

� High corruption

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Entry Strategyand

Marketing Plan

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Entry ModeEntry Mode

exporting the body shops hair care product from its home country.

y Avoid the cost of setting up and running a

manufacturing plant in Brazil

y Setup partnership with local retail stores in Brazil in order to sell our products.

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Product/Product/MarketMarket StrategyStrategy

y Target the segment of the population which is between 

the age of 15-64 and it holds up to 67.3% of the

Brazilian population.

y Target the educated segment of the Brazilian society so 

that they can explain the use of naturally or organic

made hair care products to those who may not

understand the benefits of the product.

y The first year, our main aim is not to make profit but to 

gain up to 10% of the market share.

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Product/Product/MarketMarket StrategyStrategy

* Marketing goals

Ensure that the target audience k nows 

about our product .

To gain a good market share.

To gain economy of scale.

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PricingPricing StrategyStrategy And PlanAnd Plan

Pricing issues

* Inflation rate : 6,01% in February 2011

* Price controls by domestic government

Pricing goals for PLC stages

Introduction:Penetration pricing

Growth: Cost leadership strategy

Maturity:Positioning on competitors price

Decline: Cost cutting

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PricingPricing StrategyStrategy And PlanAnd Plan

y Pricing method : Marginal-cost pricing

y Method of payment : safest way of payment

where by consumers can pay bef ore the goods 

are sent to the consumers.