Natura Russia Decision

Case study for Natura

From Ling JIN Oct 24th, 2011

Natura is a Brazil based, beauty field company, with a growing vision of humanity.

The rapid consolidation of the global beauty industry forced Natura to be even more aggressive. They have to consider the international business environment in order to improve the long term chances of survival. In addition, a company’s competitive position in one country is significantly influenced by its position in other countries.

Now In the progress to international business, Natura had to decide whether Russia could be next opportunities.

The assessment of expansion in Russia

Corporate policy

* Natura Business vision: to help people find the inner beauty within themselves – well-being / being well

* Domain: benefit the company will provide (Brazil biodiversity, connection with natural) to customers (middle to upper class, teenage and matured women)

* Business philosophy: Natura sold its beliefs to consumers, not just products. Behind each product, there would be a concept capturing the emotions, feelings, and aspirations of its consumers.

* Rules of behavior: to make Natura a brand ultimately recognized worldwide and identified with a community of people who committed to creating a better world

* Major objectives: establishment of a specific working climate within the organization, acceptable level of risk, market share, and of course the profit for shareholders, meanwhile, not undoing the company value.

Strategic Analysis

Determination of current success pattern

* Developed from Brazil, which is one of the largest and most developed cosmetic market in Latin America

* Natura Took advantage of the international players retreat in 1980’s recession

* Product segment played key role in its market development

* Sold high margin product to middle and upper consumers in Brazil for core beauty products: skincare, fragrance

* Multi product lines strategy, 7 main...