Vilma Díaz, Ilana Dourado and Matilde Freiría

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.

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

Marketing ProblemsLack 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

Research ObjectivesGeneral 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.

Research ObjectivesSpecific 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).

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

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)

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

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

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

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

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

Results – Survey (before concept board)

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

Personal Care Products Quality Preference

When buying a personal care product respondents

prefer: product quality performance scent

Results – Survey (after concept board)

Overall Evaluation of SOU Brand

1

2

3

4

5

Total Female Male 18-24 25-29 30 or older

3.613.613.39

3.26

3.593.5

Top 2% box: 60 % Mean Score: 3.60

Purchase Intention

1

2

3

4

5

Total Females Males 18-24 25-29 30 or older

3.223.33

3.16

2.63

3.43

3.22

Top 2% box: 60 % Mean Score: 3.60

SOU Brand Image Evaluation

1

2

3

4

5

Reliable Youthful Trendy Innovative Unique Eco-Friendly Energetic

3.643.75

4.04

3.81 3.82

4.04

3.75

SOU Attributes

1

2

3

4

5

Product Quality Affordable Sustainability 100% Recyclable Materials Brazilian Products

3.71

3.93 3.863.99 4.01

2.41

3.49

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

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

RecommendationsPositioning: 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

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

Future Research Direction

• Ideal social media outlets • Celebrity Endorsement • Beauty bloggers: Michelle

Pham • In-store media promotion • Discover attitudes about

unisex products

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