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Case Study of Espoir Cosmetics

Compiled is a case analysis of the Espoir Cosmetics Company’ decision as to whether develop a Global Branding initiative or to carry on with the firms existent Domesticated marketing concept. This document breaks down the operational environment of the firm, and proceeds o avail some recommendations as the best courses of action that Espoir can take. The firm exits within the personal care industry, whose key success factors and industry structure is oriented as below.

The personal care industry is characteristic of a few dominant firms, which have often built their brand equity over a long period.

The industry is a competitive oligopoly in nature. Success within this industry is dependent on a firm’s ability to adapt products to suit the local market and detect potential opportunities within those markets. ?Customer‘s Needs/ Preferences Incorporating a multi –domestic approach is one of the more effective strategies as it satisfies each markets unique need. A global campaign would be quite effective for larger market segments with similar needs.

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Packaging Practicality is of essence depending on which market segment Espoir targets. For example, the Asian market demanded bottles of nail polish that were smaller than the standard 12-milliliter. The size and packaging of products in this industry has influence on the success. ?Economies of scale With many more local and international players joining the industry, cost reduction is a favored competitive tool. The potential for economies of scale have increased as players seek to reduce the cost of production by producing in volumes ? Brand Equity

To succeed in the personal care industry the firm has to build a strong brand that will compete against other brands.

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Espoir aims to cultivate the image of the smart, independent risk taker woman. It is crucial to build the image of beauty, status and fashion in the mind of the consumer. A strong brand image captures the ever changing preferences of customers. ?Competitive forces New entrants into the industry are; fashion designers, celebrities who also offer competition from unfamiliar and unexpected quarters. The main competitors are Revlon.

Existing strategy is Multi-domestic, which is characterized by localized tailoring of production to suit the, culture, needs, and income of the local consumer. ?Innovation Continuous and incremental innovation is a must so as to keep up with the changing preferences and trends of users. This enables a firm to keep ahead of its competitors and create more value to the consumers. Espoir enjoys some of the following advantages; i. e. its sources of Competitive Advantage: (and can tap further more into its strengths to grow) -Technology-Sales and marketing Low costs,-Better product design -Better marketing systems-Economies of scale

To be successful in the industry a firm requires: ?Learning curve experience – Time taken to introduce a product in new market takes a shorter period. ?Innovation –It is necessary to come up with new products as the market progresses. ?Brand recognition – The product should be well known. ?Sound marketing strategies –These should facilitate proper positioning and market segmentation. ?Consumer responsiveness. Knowledge of the consumer consumption patterns as well as created need. ?Continuous R & D –To ensure growth a company needs to research on new trends and products for its market. ?Efficiency in production – This ensure there are no wastages. ?Availability – Customers should find it when they need it.

Where overseas components will be integrated into the overall corporate structure, with each of the components is empowered to become a source of specialized innovation it will allow for the attainment of benefits inherent in both global and multi-domestic strategies. Espoir’s enhanced differentiated contributions by all of its units to integrated worldwide operations, it will lead to the development of relatively standardized and yet flexible products to be availed to meet their customer needs that will capture local and global markets. The highly recommend strategy for Espoir is therefore a transnational strategy.

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Case Study of Espoir Cosmetics. (2018, Oct 15). Retrieved from

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