espoir cosmetics case

Group 4 MKT-470(SEC-1)

Name ID Ismail Hossain

0910103 Tauseef Hossain

1010670 MD Farsad Uddin 1010159 Shadeed Ahmed 0910249 Faria 1010032

Case Facts• COMPANY: ESPOIR COSMETICS, ONE OF THE WORLD’S BEST KNOWN COSMETIC COMPANIES ($1.1 BILLION IN VALUE)• NATASHA SINGH: EXECUTIVE VP AND GLOBAL MARKETING OFFICER• ED JOHNSON: CHAIRMAN AND CEO

Main issue

The main issue of the case study is about Global promotion .

Current Scenario

• Singh proposes to associate Espoir’s new summer line with Supreme Studio’s release of Diana’s She Devils movie through sponsorship.

Singh’s Argument

• The movie was a hit 2 years ago and research suggests that the sequel will be a bigger hit.

• Studio’s publicity plans are huge.•To do something splashy for their 50th

anniversary next year.• Ideal vehicle to launch a global brand building

strategy.

Singh’s Argument(contd..)

• The 3 lead stars are from Europe, Asia and South America- their fastest growing markets.

•To create 3 new lipstick and nail polish combinations in the right palette for each of the 3 stars and associate stars with the advertising.

• As the flim gets released in a country, products in specially designed combination packs would be released.

Johnson’s Concerns

•Similar offers in the past were not considered worth the money, especially if it was only for summer product range.

• Enough budget for global promotion & local advertising might not be available.

• If recession gets worse in U.S, marketing budgets may have to be cut.

• Country heads might not be ready to compromise local advertising and promotion for global promotion.

• Idea needs to be confirmed with country heads of North America, Europe and South Asia.

Scenario for North America

• Marketing head for North America loved the idea.

• According to him, 2 of the stars represent big ethnic markets in the U.S., so he would bear some of the bill.

Scenario for Europe

• Jacques Dubois, Espoir’s newly appointed marketing head for Europe agreed to the idea.

•He argued that, Espoir’s archrival, Je Reviens had boosted awareness by tying up with the 2002 Bond flim Die Another Day and they should fight fire with fire.

• However, Dubois differed with Singh’s proposal of setting up a central web-site.

Singh’s previous exploits (in India)• Reduced prices and sizes of Espoir’s products in India.• Made sure Espoir products were available at small stores (in

addition to big ones) all over India.• Instead of large counters the products were placed near the

cashier in the small stores. • As a result, the company became market leader in India &

Singh got promoted.

Vasylko Mazur

• Current head of Espoir’s operation in Eastern Europe.

• Had met Singh five years back in a training program in Los Angeles.

Confrontation with Singh

• Mazur did not like the idea of Espoir’s movie based promotions.

• He believed that appointing beauty queens as ambassadors and having competition based promotions would be a good strategy.

• Believes that Eastern Europe requires a local strategy, similar to the one Singh had employed in India.

Current Indian Scenario

• India is presently exposed to a lot of global culture.

• Cost-Benefit equation in towns is also working similarly to the way it does in cities.

• Public is ready to watch good movies irrespective of where they are made.

• All global brands are available in small towns.

Problem Difference of local demands and taste . Insufficient budget . Economic slow down (U.S) Difference of opinion and views among

country managers .

Global Strategy• Challenges (Competitors) • Tends to discourage innovation in local marketing strategies• Lack of data to prove that global strategies will reduce cost

via economies of scale• No leadership in place to take responsibility for the

anniversary line• Local marketing heads like Mazur will resent the move.

Recommendations Since we agree with Natasha Singh’s global promotion

proposal, we think the others countries' manager should contribute equally.

Since the movie actress will use the Espoir cosmetics , people will be motivated to use that same brand of cosmetics . So they should go for the sponsorship.

The owner should take effective measures (consult with other country managers to support global promotion).

Recommendations (Cont..)

The global promotion will increase the brand image in an international scale , so it will also increase the brand image the domestic country also. That’s way country managers should gather sufficient fund for future global promotion.

They should open a business page in social networking medias like face book , twitter , Google plus .

Should we agree with Natasha Singh’s Proposal? We agree with Natasha because of the following

reasons “The Best we should go ahead with the movie tie-

in. At best it will reinforce the band’s equity. At the worst, we will learn some lessons about where global promotions don’t work. Since the initiative will boost sales in North America at least , what do we have to lose?”.