Natura - Final Case

Positioning?

Positioning could be defined as the effort to influenceinto the brand consumer perception relative to theperception of brands or product from the competence, itsobjective is to occupy a clear, unique and advantageousposition in the consumer's mind.

Without a good brand positioning no sales and if any, willnot be enough profitable, and if are profitable will not befor long. To have a good brand positioning, the companieshas to promote certain attributes and profits which, infair combination, results a harmony position, distinctive,unique and that will preferred by target customers..

Founded in 1969 by Luis Seabra Natura Cosmetics wasconsolidated as leader in the cosmetics and perfumery fieldin Brazil, it was conceived as a living organism, with adynamic network of relationships and considers that itsperpetuation in time its due to their ability to contributeto the evolution of society and the sustainabledevelopment.

Natura seeks to position itself as a company that cares forpersonal welfare and environmental, also seeks stand outthe importance of the nature in each of their messages,their packages or promotional magazines. In each of theirphrases, Natura is inviting the consumer to connect withthemselves and with nature, in other words, since theirbeginnings Natura rationale is based on the well-being withhimself and the being okay with the others, with theenvironmental and with the whole.

What do you think should be the brand value proposition ina global market?

The value proposition is a unique mix of products,services, benefits and added values that the company offerto their customers, which make a different offer in themarket, besides marketing studies teach us that the

strategic positioning is take an option against the marketand the competence in advance, and define how we want to beand how expect that the market perceives me, it means alsothat know what I don't want to be and what I don't have todo.

The value proposition materializes the company strategy foreach segment of customers, describing the uniquecombination of product, price, service and image, it mustto communicate what the company hopes to do better or deway to be different from its competence to their customers,it must to offer a solution for the customer’s problems andsatisfy their necessities. A company could offer severalvalue propositions related or independent, directed to oneor several groups of target customers

A value proposition must to be as a thirty-seconds"elevator speech", i.e., must to be a short message whereindicating the specific benefits of the service or productoffering provides a buyer, it shows why its product orservice is superior to competing offers.

According the value proposition description we can say thatthe Natura Cosmetic value proposition consist in a businessmodel that stands on its value proposition the high qualitycosmetic products, with optimal doses, 100% natural,personal advice and comprehensive coverage build, i.e., isbased on the concept of "well being well". This concept refersto the harmonious, pleasant relationship between oneselfand its body, this concept is combined with the rewardingand empathetic relationships with others and nature.

Analyzing the value proposition of Natura Cosmetics we canobserve that they consider in their value proposition thefollowing points:

High quality cosmetics based on natural raw materialsmanufactured with a combination of ingredients fromBrazil's biodiversity.

Products that generates a stimulating and pleasantexperience and relationship between the consumer andhis body due to the effect of its natural ingredients.

Eco-Friendly cosmetics that doesn't harm theenvironment.

Personal advice on the buying thanks to their salesmodel that consist in direct sales through toindependent advisers, who shows the product inindividual or group sessions, contributing to thecompany to build a close relationship betweencustomers and counsellors.

Wide coverage, due to the adviser’s network.

Natura Cosmetics must to take into account on their valueproposition that manufacture the cosmetics products withvegetal essences contribute to experiment stimulating andpleasant experiences and being appropriately selected anddosed the natural ingredients allows to keep the humidityand have healing and soothing effects, besides beingnaturals doesn't have environmental impact. On the otherhand the adviser's has the properties knowledge to guidethe customers buys, recommending the products accordinglywith their necessities and benefits that they generates,the large products portfolio of Natura their customers hasa wide range that cover their necessities of cares skinwith natural cosmetics that minimize the secondary effectsand are really accordingly with their skin type and eco-friendly.

You bet for direct sale or a mix?

No company could have success and survive without aneffective sales strategy. There are two basic salesstrategies: the direct and the indirect, and there is alsoa third strategy that mixes the direct and indirectstrategies, understand what these strategies mean and howto implement them its essential to the long term success.

The most common definition of a sales strategy deals withits approach to the customer. The direct sales strategy isgo directly to the customer and sell the product, ispossible to call the customer, have a face to face or eventhe sales can be made it by email, this strategy is alsoknown as B2C "business to consumer". Talking on global

markets with this strategy is the own company isresponsible for marketing the product in the outsidemarkets, facing the obstacles of foreign trade, for thatreason is very important that company will have thenecessary resources and a minimum export structure. Thedirect sales international strategy implies that thecompany assumes the goal of internationalization in theircommercial policy, the most common ways of directinternational sales are:

Distributor : who buy stores and distribute the productin the import country.

Import agent : is a resident company in import countrywho represent the export company, in occasions arecommission agents that work on behalf the companywithout assume the operation risks, in other occasionsare independent agents that work on their own, acquireand sell the items assuming all the risks.

Commercial network in the destiny country : owndelegation that welcomes the exporting companyemployees residing in the importing country.

Subsidiary or export commercial branch based on thedestiny country.

Production subsidiary in the country destiny : thecompany produce and market in the country destiny,thereby has the maximum grade of internationalization.

The advantages for this direct entry in internationalmarkets are that the export company control all the exportprocess, allows them to maintaining an own and independentcommercial policy, the possibility to develop their brandin the market destiny, allow them to get a direct and deepknowledge of the market, on the other hand thedisadvantages are the high investment exigency in structureand the risk concentration, the company assumes all thecommitments associates to the distribution.

On the indirect sales strategy the company use anintermediary and doesn't have direct contact with thecustomer, the intermediary could be a distributor,retailer, etc., this strategy is also knows as B2B"business to business". On the international market the

indirect sales means to market the product through anintermediary based in the country of origin of the company,so this will be a national sale and the company avoid theusual obstacles of the international commerce. Avoid alsodestiny resources to the development of new markets,because these actions are performed by the intermediary whofinally export the product, the modalities are:

Trading companies : who acquire the merchandise fortheir later resale in foreign market.

Purchasing agent or broker : exporter intermediary thatexports the merchandise by the customer, for acommission, taking charge of the additional aspects ofthe sales such the transport, the insurance or thecollection management.

The advantages for this way of entry in internationalmarkets are a reduced investment level, doesn't requiremaintaining a intern export structure, but there aredisadvantages too the company loose the control of theproducts sales, company doesn't have the knowledge of thedestiny market, the profitability is reduced due to thegreat part of the added value is for the intermediaries.

Finally the mixed strategy is based on the cooperationbetween companies that share resources, capacities andcompetitive advantages in introducing their products in thedestiny market, the most usual commercial activity is madeby another company with presence in this market, minimizingthe necessary investments to develop the internationalmarkets. The most common ways of mixed entry are:

Piggyback: consist in to take profit of a distributionnetwork of a company already established in return ofa commission over the total amount of collected sales,the product must be complementary to the rest of theproducts that the distributor sales or at least not bea product competitor

Export consortium: group of enterprise, in the same or inanother sector that constitute a new company for theexport of their products..

Technology transference: it means transfer the know how,brand, or technical assistance to another companyinstalled on the abroad.

International license: outsourcing of the manufacturing andsales of the product to a company installed in thedestiny country in exchange of a royalty

International franchise: license focus in the management andmarketing procedures of the brand, usually its made bya third company installed in the destiny market fortheir export.

Joint venture: co-owner company operating in the countrydestiny.

International alliances: could be horizontal, betweenmanufacturers of the same kind of products, orverticals, with suppliers or customer companies, itresponds to the necessity to increase the resources toface the international competence.

Another kind of agreements: contract management: where amanagement company makes the operational management onbehalf the owner, or contract manufacturing: where thecompany pays to a local company on the destiny marketto manufacture in their name although thecommercialization of the product is made by thecompany owner of the product.

Among the advantages we can find that is not necessary tokeep an export structure, helps to overcome easier theinitial barriers, allows to keep the constant flux ofexports and to will accede to a wide commercial network,promotes the exchange of knowledge, relative protectionagainst the political risks, allow to get grants on thecountry destiny and allows to offer technical and aftersales assistance. The inconveniences are the possibledirect competence between the partners, difficult oflocating the appropriate partners, necessity to accept thecommercial policy of the group.

Natura cosmetic is using the direct sales strategy, theyare distributing their products through a national networkwith already 483.000 advisers of active sales in Brazil and36.000 agents in other countries, the sales team arecomposed by well trained autonomous female salespersons

with a contract of "non exclusivity" with the company,which are middle-class housewives, who sells to theirfriends, independent professionals, secretaries or otherprofessionals that leveraging their contacts to sell Naturaproducts. These sales structures allows Natura to reducecosts and expand business without having to resort toexternal finance or reduce their profits margins, but, onthe other hand there are disadvantages because already the30% of its sales force sells competitors products besidestheirs.

Natura Cosmetics uses the same sales and distributionsystem of its products in the different markets, suchArgentina, Bolivia or Peru, in which it currently operates,but in France, Natura Cosmetics uses a differentdistribution system. In 2005 Natura Cosmetic opened inParis their first two-storey flagship store, instead of theconsultants systems used in Brazil, to offer initiallytheir Ekos line after small changes in packaging and size,to accomplish the French regulation. In Mexico NaturaCosmetics uses a hybrid system of distribution, where openthe Natura's House, a place where the advisers could shareexperiences and be in touch with the brand, and with a teamadvisers, in other words, Natura is using a mix salesstrategy in the Mexican market due to their late entry inthe market.

In Natura case I bet for the mixed sales strategy,depending on characteristics of the market which thecompany wants to entry they could use a different way ofentre, for example, they can use a piggyback with a localdistributor to take profit of their distribution network,could grant a international license with which a localmanufacturer could manufacture and sale their products inexchange a canon, the Spanish company Puig is manufacturingtheir own brand and different brands as Carolina Herrera,Paco Rabanne inter alia, or they can use another way ofentry as international franchises, in many cases theinternationalization of a brand works better when is localpeople who manage the business in the chosen market, orinternational partnerships with producers, to manufacturetheir products, or with suppliers or customers, to

distribute the products, this latter way of entry allowsNatura to increase the resources necessary to face theinternational competence.

What do you think are the biggest challenges?, which willbe the brand goal?

The high grade of maturity of the perfumery and cosmeticmarket and the negative situation of the actual crisiscreates a high competence scenario made that the beautycompanies have to reorganize their structure anddistribution system in order to arrive to their customersquickly and, in many occasions, their target customerssegment.

Under my opinion Natura Cosmetics has two differentchallenges, the first one is the target segment customers,as we can read in the case, their cosmetic and personal-care products are focused to a middle and upper classcustomer segments both in Brazil and the rest of markets inwhich operates. I think Natura could increase their numberof customers offering a low cost line focused to thesegment of markets, although has low incomes, is concernedwith their skin care but can't pay the higher prices of theactual products. With a low cost line Natura democratizesthe natural cosmetic making it more affordable for all kindof publics and therefore increase their sales positioningitself as a leader in the industry.

Another challenge for Natura Cosmetics is restructure theirdistribution and logistics systems, although the directsales operation that are using since the creation of thecompany have worked to date I think could be improved.Actually their delivery times of a daily order varies from1 or 2 days in the city of Sao Paulo to 5 or 6 for moreremote locations, this delivery times could be reduced ifNatura Cosmetics were installing others facilities, thatcould be to manufacture their products or distributionwarehouses, in different locations, especially, shouldinstall one in each of the countries in which they operate,this may facilitate the distribution in these countriesreducing the delivery times, with this action Natura will

responds quickly to the customers demand and could help toincrease their sales.

What are the more relevant elements if the want to expandits business to Europe, Latin America & USA?

Due to the increasingly demand and complexity of theforeign commerce, the export companies need an approachmore and more technical and professional to determine whichare the better formulas to compete in external markets, forthat reason is necessary to use techniques of marketing,organizational methods and principles of management whichgive us the international marketing.

To access to different markets such as the European,American or Latin American, even if they share some similarcharacteristics, the access should be decided rationallyanalyzing rigorously the export possibilities by marketresearch, analysis of commercial viability and a properplanning. Exporting must be considered as crucial in thecommercial management of a company, especially in theglobal economy in which currently we find ourselves.

The successful strategic alternatives of theinternationalization of a company will have plenty to seewith both with the characteristics of the sector and thecompany, as well as the environment or county in whichoperates, Porter (1988) as most influential factors:

The activities concentration and decisions: consist inthe logistic or place where the activity is carryingout, that could be more or less scattered, i.e., fromthe same place to all over the world that should befrom the country of origin or from each country thatcorresponds or the company is operating.

The coordination of activities from de value chain:consists in the way of coordinate the activities,similar o related, carried out in different places.

According Porter the strategic alternatives for theinternationalization are:

The pure global strategy: is a form of absoluteconcentration and coordination of activities, shouldcoincides with the country of origin, as an emblematicexamples we can observe the Japanese companies such aToyota, Sony inter alia.

Transnational strategy: with medium or low concentrationand high coordination of activities, are organizationsmounted over subsidiaries or transnational, example Nestle.

Global strategy with adaptations: High concentration andlow or medium coordination, is focus on the product orservice, but there are certain decentralization to thepeculiarities of the country, as examples we could findCoca-Cola or McDonalds.

Strategy cluster: the companies that adopt thismulticountry dispersion strategy, i.e., with lowconcentration and low coordination in the value chainactivities, have as finality to adapt even more to thepeculiarities of the country taking advantage of the localadvantage competitive, examples general Motors and HiltonHotels.

Moreover to choose the correct internationalizationstrategy there are several factors and details that Naturahas to take into account if they want to expand theirbusiness in Europe, US or Latin America and workingproperly, in other words, there are conditioning factorswhen Natura selecting the international penetrationstrategy, these factors are external and internal. Theexternal factors it refers to the characteristics of theexternal markets and the local market, as well as, thesector which the company belongs, among this kind offactors we can observe:

Target market: the market size, actual and future, its thefirst variable to take into account, small markets favourthe ways of penetration under commitment such the indirectexports, licences or inter-enterprises agreements, whilethe opposite happens in highly dynamic markets, where theycan fit more involved options such as subsidiaries or joint

venture. Another relevant dimension is the marketcompetence structure, in a high competitive market theexport could be favoured respect a alternatives ways withmore commitments, while the direct presence, through theinvestment is more required in oligopolistic markets,finally the infrastructure also matters marketing targetmarket, if they are non-existent, the company has theoption to establish own marketing channels.

Cost conditions. is the second set variables and itsrefers to the cost conditions in the destiny country. Incase that a notable advantage of cost exists (locationadvantage) the company should treat to implement throughinvestment formulas, meanwhile if the cost are higher inrelation with the origin market, the company could treat tosearch any formula which doesn't requires the directpresence on the market destiny.

Environmental factors: influence in the company decisionsthe economic, political and cultural conditions in thedestiny market, concretely the ones what affects thenormative structure of the host economy, and all thatrefers to the regulation of international transactions, andthe tone of its economical policy. The geographic distancerespect to the home market could be a relevant factor indeterring regarding the election of less committedformulas, such as the export, under the charges associatedto the transport of goods. The psychological distancebetween markets, linked to the difference that exists incultural, linguistic e institutional matters, determine therisk and uncertainties perceptions, so that the larger,most prone will be the company to opt for formulas underexternal commitment.

Local market conditions: also the local markets hasinfluence over the penetration way of the company ininternational markets, a second relevant factor is theclimate of competence in the local market, due that theoligopolic structures encourage rivalry between companiesin their internationalization strategies.

The most significant intern factors are the productfeatures and the assets committed:

Product features: the capacity to differentiate a productcould influence the level of presence of the company inforeign markets, the larger is the differentiationcapacity, more required will be the company to support thepresence of their products with a powerful action ofmarketing in the destiny market. The technological intenseof the marketed goods also could condition the penetrationways of the company favouring formulas as licences orinvestment, when is relevant the exclusivity of thetechnological assets in the company.

Committed assets: when higher are the resources of thecompany, more accessible will be the committed formulas ofinternational penetration, as the investment. Theinternational experience also could favour more intenseformulas of penetration in foreign markets.

The natural cosmetic is one of the drivers of theinternational beauty market. The global cosmetic market ismore and more natural and the experts estimate that thecurrent volume of world natural cosmetic sector amounted to$ 9.000 million of dollars and provide an annual growth of5%. Globally, the sector is finding new sales markets andthe theme of natural cosmetics occupies a fix positionamong the consumers of worldwide, however the naturalcosmetic is defined in different ways in the differentcountries, depending if the natural products are found ornot in the statistics.

The care products had some features very value for theEuropean and American consumer, are products perceived asprofitable for health and respectful with the environment,in other words, European and American markets are extremelycompetitive so Natura has to decide which is the best wayof market penetration in order to select the best way tointroduce their products in a saturated market and, in thismanner, to positioning itself as a brand leader on naturalcosmetics.

The Latin American market is composed with an upper middle-class concerned with the personal care for that reason thecosmetic market is the market with more growth. NaturaCosmetics is the largest company in Latin origin cosmeticsbut they want to expand their business into the LatinAmerican markets I believe that they should launch a lowcost line focused to the low income market segment and whoalso cares of their personal care.

How do you create brand experiences?

Also known as experiential marketing or brand experience,the design of the experience is supported on the idea thattoday the successful companies are adopting a relationmodel more focused on the costumer and built on a dialoguebetween the brands and customers, by doing this, companiesare considering and designing what are known as "total"experience of their brands.

Brand experience is based in the identification of the"moments" of emotional links between people and brand, andthe memories that produce these moments. In the customer,all these moments are combined to form the perceptions,motivate the commitment with the brand and influencing thepossibility to buy another time in the future.

This differential value could be distributed throughseveral forms, such as entertainment, education,intellectual illumination, spiritual, even evasion, but allare based in a deep look toward the essential humannecessities, as well as hopes, fears and aspirations. Thereal value of brand experience conception lies in theirability to commit the consumers with the brand, so that thedevelopment of mutual relations is stimulated value.

To build a brand experience a company could follow thefollowing steps:

1. Check your brand promise and values if they can betransformed into an experience, for example, Pepsicould transform their product in a generation and

freedom moment and Coca-Cola is capable to translatehappiness in a time of consumption

2. Draw a map of contact a customer has with the brand.Define every of the points of contact spends acustomer with the brand, from searching for brandinformation or that reaches the customer, until gohome with the product.

3. Describe the desired experience in each of thesecontact points. What should ask is "what emotions Iwant to transmit when my costumer comes into contactwith my business?", and when receive a call to ask forreports, and when visit us, and when choose theproduct, and when pay, and when call for a claim, andread a new in the journal. Company has to think inevery point of contact, review them by the company asit was the customer, what they want to feel?

4. Design an action plan to cover all and each of theimagined points of the complete circuit of contact ofa customer with the brand. Publicity - phone call -order -reception the package- use the product -comment to a friend about the product - reading apress release. Describe the concrete actions, scripts,policy, rules, process, etc., whatever necessary toassure that the staff make real the "experience" youwants your customer will alive. Even sometimes isnecessary to make changes in productions forms,packages or facilities.

5. Measure the results of the brand experience. Likeeverything in marketing should try to measure theresults, it can be done through the image positioningresearches, satisfaction surveys and other tools, themost important is to set the indicators to know if theaction plan is working: claim index, increase ofrecommendations, etc.

To operate the brand experience you should take intoaccount that all that you promise it should beaccomplished. The expectative that brand experiencegenerate should be covered and achieve with it the customersatisfaction and thus their recommendation, without thisthe whole plan has no sense.

Natura Cosmetic could built different brand experiences inorder to interest both their regular and future customers,these experiences could be from offer make up simulatorsprojecting an image in a screen of makeup clients, avoidingthe cumbersome process of trial, or organize meetings wherethe characteristics and properties of the products areexplained and which also could test different products tosee which is best suited for your skin type. Another brandexperience could be a sensory experience, in a cosmeticsbrand would be a blind experience using only the senses ofsmell and touch, with touch the customers could feel thefinesse of a cream and how is absorbed by the skin, andwith the smell the customers could treat to recognize thedifferent ingredients that composed the cream or thefragrance.

Do you think is a good idea to create a joint venture orassociation with a “big player” (L´Oreal, P&G, etc.)? Andwith a direct selling company (Avon)?

Joint Venture companies are created for two or morecompanies from different countries for joint development ofan activity, usually commercial or productive type. Itshould be companies from the same industry but withactivities or with different competitive advantages, forexample one of the partners could manufacture a productwhile the other one will deal of the management ofmarketing and distribution.

The ignorance of the market is the great lagoon of mostcompanies when decides to enter in a new country, thecollaboration with a company situated in this new marketcould be a good way to access to a new market, get thelocal market experience and get the necessary contacts.Before to take the decision to form a joint venture isnecessary compare this alternative with other with lowcommitment such the manufacturing license or the creationof an own establishment.

The joint venture presents the following advantages:

Higher long term benefits

Greater control over the production and marketing Spot market knowledge

The most important disadvantages are:

Need to provide capital and management resources. Potentially higher risk Disagreements on priorities and strategies between the

international and the local partners. For the firstone it is framed within global strategy, while for thelocal partner should be priority and usually becentred exclusively on the local market.

Although a joint venture between Natura and a "big player"such L'Oreal or P&G could seem a good idea I think thatthis agreement is not profitable to Natura because theirbusiness model is totally different, among the "big player"will not play the role of distributor for a more "weak"company, but will try to use the experience and knowledgeof Natura to develop its business in the Brazilian market.

Otherwise I think the association of Natura with Avon couldbe beneficial to both companies because they share the samebusiness model and also can get mutual benefits of theirexperience in the distribution and marketing of theirproducts in different markets which are currently operating

How will you worked the digital strategy?

The digital marketing is the application of marketingstrategies undertaken to digital media. All thesetechniques of the off-line world are imitated and translateinto a new world, the online world. In the digital realmappear new tools as the immediacy, new networks that emergeeveryday, and the possibility of real measures en each ofthe strategies used. Two instances are known:

The first one is based in the Web 1.0, that doesn't deferof the utilization of the traditional methods. The greatercharacteristic is the impossibility of communication andexposition of the users. Only the companies have control ofthat is published over themselves. The second one is theWeb 2.0 which was born with the possibility of share

information easily thanks to the social networks and newtechnologies that allow them the almost immediate exchangeof pieces that before was impossible, such videos,graphics, etc.. It starts to use the net no only as mediato seek information but as community, where there areconstantly relationships and feedback with the users ofdifferent parts of the world.

Digital marketing encompasses publicity, communication andpublic relations, i.e., include all kind of techniques andstrategies of communications over any theme, product,service or brand in every of the existing media, such isthe net, movie phones, digital television or video gameconsoles.

There are to characteristics that differentiate digitalmarketing from the traditional one, are as follows:

Customizations: to the need of the user to get informationevery time more customized, the new techniques allows thatevery surfer receive or is suggested automaticallyinformation over what is interested and that previously hasbeen seeking or defined among their preferences. In thatmanner, is easily to get a greater conversion ratio in theonline world, that in the traditional world.

Massive: for less money than in the offline marketingcompanies can reach to a huge number of users that formingpart of a target public. For that reason, the investmentsare better defined and the conversion ratio will be alsogreater.

Digital marketing is based on 4 variables, flux,functionality, feedback and loyalty, that variable arethose which comprise an effective marketing strategy.

Flux: is defined from the concept of multiplatform, theuser has to feel attracted for the interactivity generatedby the site to capture the attention and doesn't leave atfirst page.

Functionality: navigability has to be intuitive and easyfor the user, in that manner, prevent that leave the pagefor having been lost.

Feedback: should have an interactivity with the surfer forbuild a relationship with them. The perception received andthe consequent reputation that is obtained is the key toget trust and a bidirectional, for that, must to be humble,human, transparent and sincere.

Loyalty: once that the relationship with the surfer isestablished, don't let him go. The company has to seek fora commitment and provide theme of interest for him, i.e.,the company must to captivate the user.

The new strategies and tools that we count for digitalmarketing, allow us to have greater control and follow upover what the customers are doing when they use it. theresult is a mutual profit that our customers andorganization receives, the emergence of new communicationchannels direct and efficient between, achieving closenessbetween people and organizations that is difficult to findin the traditional channels. With digital marketingstrategies is possible to reduce operative costs, deliverinformation to the market in a expeditious way the 24 hoursof the day, find opportunities to open new markets,increase the global reach of the organization and improvethe intern communication and the communication with thecustomers.

To achieve a effective digital marketing strategy thecompany must to realize a Digital Marketing Plan, whichmust to include an initial budget under that set thefollowing indicators.

Briefing Objectives Internal situation analysis External situation analysis (market, competence and

from digital perspective) Internal analysis from the digital perspective Marketing digital strategies to develop

Tactical actions Actions schedule Control of actions Online reputation plan

Once the digital marketing plan is made the company coulddesign the digital marketing most appropriate to theorganization, choosing the social media platforms to use,depending on their audience.

To define the digital strategy it's important define whichis the potential customer for the company, then the companymust to select the traffic sources, i.e., which are thewebs are going to used to buy, publish the articles, whichsocial media networks to socialize, which blogs or websitesare going to follow and let comments. Which other platformsare going to be used to create more blogs and links, howmany links are ready to get, an the most important is makea good investigation of all the possible resources to makepublicity, under payment or free. . After that is importantto create a budget with the necessary amount to invest inpublicity or other kind of platforms to achieve the successin the digital strategy. The following step is to developthe advertising content with the product spectrum that thecompany wants to promote, it must to be creating with amessage that the client feels identified. And finally itnecessary to track, measure and evaluate the advertisementin order to know if is working or if it’s necessary to makeany change. Following this steps the company could create apowerful marketing strategy.

Natura cosmetics has created their own website and blog,and its present in the main social media platforms asFacebook, LinkedIn, Pinterest, YouTube and Twitter but Ithink that they can still improve more their digitalstrategy. To complete their digital strategy NaturaCosmetic could create an app for smart phones where hangcontent where the properties of its products are explained,videos demonstrations with the correct application ofcreams or video tutorials where professionals explainmakeup tricks, can obtain discount coupons or could buy andshare gift cards, they could use too the viral marketing

creating a mail, which is going to one direction to otherand will generate entries on the Natura website or willcause the massive knowledge of something interesting forthe company.

Do you think the Asian market is attractive to Natura?

The situation that offers the Asian market, with a highereconomic growth, over the 8% in the Chinese case, is veryfavourable to the implement of new companies because thesemarket is eager for Western brands.

In China the cosmetic sector is over the 3.500manufacturers and the market quote of foreign companies is80% although is only supposed the 14% of totalmanufacturers. The Chinese consumers are so eager ofWestern products, reason why the foreign companies arehaving a great success, this trend occurs on the luxurysector but is more intense on the cosmetic industry. Thelatest market researches reveal very interesting data, suchthe medium expense in cosmetics exceeds the 100 Euros permonth, the sales on cosmetic in China increased twopercentage points between 2010 and 2011 passing from 16,6%to 18,7%, decides the Ministry of Finances is facilitatingthe entry of companies from this industry, by reducing thecustoms for skin care products from 6,5% to 1,5%. "Bigplayers" such L'Oreal, P&G or Avon had discovered the greatpotential of the Chinese market monopolizing the largemarket quotas, this brands have long time introduced in theAsian giant and secured gradually. However the Chinesemarket is far from being closed and their growth is proofthat there are still many players to enter in the sector.

The second great economy of Asia, after China, is India,which has a growing economy, is the younger country, themedium market age is 25 years old. despite the populationis over 1,205 millions of people, it is estimated that thepopulation will grow up being the most populous country inthe world. India is presenting good opportunities for thecosmetic industry, the main factors are the increase ofpurchasing power, the growing consciousness towardsfashion, the increase of the wages of women and the higher

participation of the women in the labour world, as in othercountries the Indian man is increasingly concerned to theirappearance, so its becoming interested in the world ofcosmetics. Indian imports of cosmetics reach $ 400 millionannual.

These data indicate that the Asian market can be a veryattractive market for Natura Cosmetics, the increment ofthe middle class, the increase in wages, the average age ofthe consumers, the increasing demand for Western luxurybrands and the concern of the Asian market for skin caremake this a market that can enhance the share of exports ofthe company.

However if Natura Cosmetics is interested in these newmarkets is necessary to make a market research in order toknow the customer tastes, which is the actual marketsituation, who are the competence, and which are the policyon cosmetic industry, with this information Natura couldcreate an successful entry strategy.