international marketing example wiem azaiez linn mona batool awwad sharzad fereiduni doron rosenberg...
TRANSCRIPT
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