Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

This is the third of a three-case series (510-039-1 to 510-041-1). French SME Sarbec Cosmetics decided in 2002 to establish a subsidiary in Italy. Despite increasing demand and new business prospects, Sarbec had to struggle for profits. These difficulties could emerge from: the enormous retail costs; the insufficient demand for Sarbec''s products; aggressive competition; and weak communication. Facing the danger of retreat from Italy, Sarbec Cosmetics had decided to conceive a markedly different marketing strategy in order to land some much needed profits. In the process management had to consider: the value of its own brands against the prospects of private label business; new distribution opportunities / retail partnerships; new ways of developing cheap and efficient communication; and danger from closely positioned competitors. The objective of this case is to illustrate the importance and application of several key processes in international marketing, including: (1) building international competitiveness; (2) private label vs own brands strategy; and (3) designing a global marketing plan. The case is part of a series of 3 cases dealing with 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 and documents.
Location:
Industry:
Size:
Medium-sized firm, 550 employees
Other setting(s):
2009

About

Abstract

This is the third of a three-case series (510-039-1 to 510-041-1). French SME Sarbec Cosmetics decided in 2002 to establish a subsidiary in Italy. Despite increasing demand and new business prospects, Sarbec had to struggle for profits. These difficulties could emerge from: the enormous retail costs; the insufficient demand for Sarbec''s products; aggressive competition; and weak communication. Facing the danger of retreat from Italy, Sarbec Cosmetics had decided to conceive a markedly different marketing strategy in order to land some much needed profits. In the process management had to consider: the value of its own brands against the prospects of private label business; new distribution opportunities / retail partnerships; new ways of developing cheap and efficient communication; and danger from closely positioned competitors. The objective of this case is to illustrate the importance and application of several key processes in international marketing, including: (1) building international competitiveness; (2) private label vs own brands strategy; and (3) designing a global marketing plan. The case is part of a series of 3 cases dealing with 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 and documents.

Settings

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

Related