International Marketing Example

Wiem Azaiez

Linn Mona

Batool Awwad

Sharzad Fereiduni

Doron Rosenberg

Ekaterina Moustafina

Lisa Moore

Background.…• Established: 1988• Ziva Gilad – a local spa technician • AHAVA = “love” in Hebrew• The native mud and salts have healing and rejuvenating qualities • Core business: Dead Sea mineral based cosmetics• Selling in Israel

Going Global…• Mid 90’s – exporting to Europe and U.S. • Shamrock owned by Disney Company invested in AHAVA and

opened the U.S market. • Opened flagship stores Europe and U.S. • Currently present in over 25 countries around the world

The Dead Sea

Some interesting facts:Some interesting facts:

• Why “Dead”?• One of the 7 wonders of the world • The lowest place on earth (-400m/-1300f)• Water contains minerals with healing and

rejuvenating qualities • Healing potential for skin, heart and lung diseases• The story of Cleopatra• The largest natural spa in the world

AHAVA – Marketing MixAHAVA – Marketing Mix

Product lines:• Source – facial and body • Men – skincare for men• Time – anti-aging• Pure – spa products• Dermud – dry and

sensitive skin• Mineral botanic – soaps• Mineral sun care • Mineral makeup

AHAVA – Marketing MixAHAVA – Marketing Mix

Price:• Penetration pricing strategy

• Source line products prices from $15 to $25

• Most product lines start from $30 to $100

• “Time Line” is the most expensive due to high concentration of minerals.

AHAVA – Marketing MixAHAVA – Marketing Mix

Promotion:• In the past two years invested $20 million in marketing

and advertising• Different approach for different markets• Celebrities• AHAVA music festival• “Skin is in “ campaign, NY fashion week• Couponrefund.com

AHAVA – Marketing MixAHAVA – Marketing Mix

• Distribution:

i. Israeli local market

ii. Ahava retail chain

iii.International expansion : 25 countries in the world

• Online distribution : ahava.com and several other websites such as amazon.com

SWOT Analysis

Strengths:

• Health and skincare benefits • Usage of natural ingredients • R&D • Ecological efforts to save the Dead sea, adding value to the brand• Environmentally friendly manufacturing

– No animal testing• Profitable growth, strong operational cash flow• Experienced management for domestic and international markets• Expansion of product offering• Manufacture located in the Dead Sea – saving transportation costs

SWOT Analysis

Weaknesses:

• Very small global market share

• High manufacturing costs (in Israel)

• 50% owned by Gaon Holdings Ltd. Enterprise

SWOT Analysis

Opportunities:

• Sustainable development of the Dead Sea natural resources (environmentally friendly)

• Trend towards more natural ingredients in cosmetics• The only company licensed by Israeli Government to

mine raw materials from the Dead Sea• Situated in a tourist area • Symbol of Israeli success• Cooperation with TEVA (http://www.tevapharm.com/) in

development of dermo-cosmetic product lines.

SWOT Analysis

Threats:

• Dead Sea dehydration• Political Issues• Numerous competitors • Low brand awareness

– Lack of trust from global customers

• Environmental Activists • Exploiting Israel’s natural resources for their private

profits

Conclusions:

• First mover advantage in marketing Dead Sea products.

• Quickly realized global potential

• Offers a wide range of unique products

• Strong marketing skills – Succeeding despite numerous challenges

• Strong financial growth

THANK YOU!

QUESTIONS?