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Abstract

This is the first of a three-case series (510-039-1 to 510-041-1). Since 2006, the French SME Sarbec Cosmetics has been trying to establish itself on the Indian cosmetics market. Working for two years through a single agent in India did not turn out as successful as Sarbec expected. In 2009, management realized that a new direction was necessary in order to achieve satisfactory entry in this challenging market. The huge market potential of India was accompanied by: largely unorganized retailing; heavy import procedures and regulations; strong competition from big multinationals and numerous small manufacturers of cosmetic products. Sarbec had to carefully analyze the environment in light of the company''s capabilities and decide firmly whether and how to enter the market. The objective of this case is to illustrate the importance and application of several key concepts and processes in international marketing, including: (1) internationalisation of SMEs; (2) the business expansion decision process; and (3) market entry strategies. The case study is the first part of a series of 3 cases dealing with the international development of Sarbec Cosmetics, each illustrating several types of difficulties and questioning about the possible actions that can be taken in different foreign countries. It is accompanied by a companion website providing complementary videos, data and documents.
Location:
Industry:
Size:
Medium-sized firm, 550 employees
Other setting(s):
2009

About

Abstract

This is the first of a three-case series (510-039-1 to 510-041-1). Since 2006, the French SME Sarbec Cosmetics has been trying to establish itself on the Indian cosmetics market. Working for two years through a single agent in India did not turn out as successful as Sarbec expected. In 2009, management realized that a new direction was necessary in order to achieve satisfactory entry in this challenging market. The huge market potential of India was accompanied by: largely unorganized retailing; heavy import procedures and regulations; strong competition from big multinationals and numerous small manufacturers of cosmetic products. Sarbec had to carefully analyze the environment in light of the company''s capabilities and decide firmly whether and how to enter the market. The objective of this case is to illustrate the importance and application of several key concepts and processes in international marketing, including: (1) internationalisation of SMEs; (2) the business expansion decision process; and (3) market entry strategies. The case study is the first part of a series of 3 cases dealing with the international development of Sarbec Cosmetics, each illustrating several types of difficulties and questioning about the possible actions that can be taken in different foreign countries. It is accompanied by a companion website providing complementary videos, data and documents.

Settings

Location:
Industry:
Size:
Medium-sized firm, 550 employees
Other setting(s):
2009

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