Download - SOU by Natura - MARKET RESEARCH
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Vilma Díaz, Ilana Dourado and Matilde Freiría
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Background Info
Natura is a Brazilian company founded by entrepreneur Antonio Luiz da Cunha Seabra in 1969. The simple laboratory and cosmetics shop
eventually blossomed into a global and public company that manufactures, markets and distributes nearly 700 personal care
products across 8 segments.
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INTERNAL ANALYSIS
Product Strenghts Product Weaknesses • 100% brand awareness in country of origin • Eco-friendly and innovative line of products • Unique packaging • Reasonably priced, more accessible • SOU serves multiple demographics • 100% brand awareness in country of origin • Eco-friendly and innovative line of products • Unique packaging • Reasonably priced
• The product is unisex and might be hard to target • Product is not season-specific • Brazilian consumers familiar with Natura may not be
familiar with the new line, SOU
Market Opportunities Market Threats
• Forecasted growth of hair care market • Boston is home to the largest Brazilian population
outside of Brazil • Boston is considered to be a “green” city - LOHAS
consumers.
• Fierce Competition • Skepticism about authenticity of organic and natural
products • Door-to-door sales are not common in the U.S.
SWOT Analysis
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Marketing ProblemsLack of brand awareness in the Boston market
Fierce competition with local brands like Aveda and L’Oreal who are pioneers in sustainable and natural hair
care and bath products
Reliance on a direct-sales model
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Research ObjectivesGeneral Research Objectives
Find out how many different personal and hair care products consumers use on average.
Discover how many people are using organic and/or natural personal care products, and determine the
extent to which young people care about sustainable living.
Identify consumers’ opinions regarding door-to-door sales and determine which distribution methods are
most common and desirable for personal and hair care products.
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Research ObjectivesSpecific Research Objectives
Find out how many, if any, Brazilian consumers in the U.S. are familiar with Natura’s SOU product line.
Gauge the overall evaluation and purchase intent of the SOU product concept
Evaluate SOU’s brand image based on key attributes
Determine what position Natura should take and which segments to target to become relevant in the Boston
market
Discover how many people find SOU’s packaging attractive
Find information to develop marketing mix strategies (e.g. promotion, distribution channels, price, media).
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Methods – FGI • 9 participants:
– 5 females and 4 males – Ages 19 – 26 years old – All students (graduate and undergraduate)
• Key measures – consumption patterns of personal care products, overall evaluation, brand likes and dislikes, brand personality, purchase intention, sustainable practices, pricing and promotional tactics
• Procedures: Concept board, 2 TV Commercials and 1 Case Study
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Methods – Survey • Data collection method: face to face
personal interview and email
• Sampling Methods and Samples – Non-Probability sampling with
convenience samples – 75 respondents
• 55 females, 19 males, 1 Unknown • 18-24 years old (39), 25-29 years old (18), 30+ years old (18)
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Methods – Survey • Key measures
– Personal care product usage and consumption, important qualities sought in personal and hair care products, attitudes towards sustainable living and sustainable products, overall brand evaluation, evaluation by key attributes, brand awareness, brand image, purchase intention, store location, pricing acceptance and promotional tactics
• Data Analysis: SPSS – Frequency, crosstabs, ANOVA and T-test
• Action Standard: High – Top 2 box 60%, mean 3.60 – High competition, mature product life style, unique concept and
experience in market expansion
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Results – FGI (before concept board)
• Consumption patterns – Shampoo and conditioner used 2-3 times per week – Price: $4.99-6.99 per item, organic items worth
$12 – Quality: Premium, organic and/or natural – Purchase: Large retail stores (Target), drugstores
(CVS), direct sales (door-to-door) not an option
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FGI Results – Overall Evaluation
• Negative Attitudes: – Similar to Morrocan Oil, Tressemé, L’Oreal Kids – Low brand recognition – Doubts about trustworthiness
• Positive Attitudes: – Suited towards active lifestyle – 100% recyclable packaging – Premium – Cause-oriented
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FGI Results• Low brand awareness
– No brand recognition, skeptical – Brazilian hair products are well-regarded
• Purchase intention – Packaging similar to certain competitors – Sales/deals would encourage purchases
• Promotion – Samples – Flyers (in salons and places of purchasing) – emphasis on packaging benefits and Natura causes – Social Media campaign and contests
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FGI Results
• Recommendations: – Focus on target consumer establishments – Use social media – Provide more information about packaging benefits
• Potential target market: – Females, 25 and older – Young professionals, mothers
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Results – Survey (before concept board)
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Price Range: Hair and Bath
0
15
30
45
60
under $5 $5-$9 $10-$19 $20-$29 $30-$39 $40-$49 $50+ under $10 $10-$20 $20-$30 $30-$40 $40-$50 $50+
101
15
45
37
0
89
20
31
23
9
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Personal Care Products Quality Preference
When buying a personal care product respondents
prefer: product quality performance scent
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Results – Survey (after concept board)
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Overall Evaluation of SOU Brand
1
2
3
4
5
Total Female Male 18-24 25-29 30 or older
3.613.613.39
3.26
3.593.5
Top 2% box: 60 % Mean Score: 3.60
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Purchase Intention
1
2
3
4
5
Total Females Males 18-24 25-29 30 or older
3.223.33
3.16
2.63
3.43
3.22
Top 2% box: 60 % Mean Score: 3.60
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SOU Brand Image Evaluation
1
2
3
4
5
Reliable Youthful Trendy Innovative Unique Eco-Friendly Energetic
3.643.75
4.04
3.81 3.82
4.04
3.75
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SOU Attributes
1
2
3
4
5
Product Quality Affordable Sustainability 100% Recyclable Materials Brazilian Products
3.71
3.93 3.863.99 4.01
2.41
3.49
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Conclusions
Consumption Patterns: • Only 3% chose door-to-door sales suggesting strong aversion to Direct Sales
82% showed strong preference for drugstores, (58%) grocery stores and (47%) large retail stores
• 31% agreed that $10-$20 was the ideal price range • 67% find SOU hair care products reasonably priced • 51% find SOU bath products reasonably priced
Consumer Attitudes and Beliefs: • Mostly concern quality, performance and scent • Strong preference for natural and organic products • Strong preference for brands that are cause-related and place an emphasis
on community involvement
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Conclusions
SOU Brand Acceptance • Positive overall evaluation
Top 2 Box% : 56% for females and 42% males Female mean score 3.59
• Moderate purchase intention: Top 2 Box% : 50% for females and 11% for males
=> Recommend to enter the Boston market
Primary Target: • Female consumers ages 25-29 years old • environmentally conscious, LOHAS consumers
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RecommendationsPositioning: Eco-friendly, Purveyor of 100% recyclable, pouch-like packaging and
high-quality, exotic (Brazilian), natural products
Brand Image and Attributes: • Emphasize positive attitudes towards recyclable materials, no
additives or dyes, and natural and organic • New distribution model (negative attitudes toward direct sales) • Align with environmental causes and specific celebrity
endorsements • Run interactive social media campaigns
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Recommendations
Target Audience Both male and female between 25-29, who consider themselves to be eco-friendly with an active lifestyle
Product Concept Eco-friendly
100% Recyclable Packaging
Place Drugstores,
Grocery Stores and Large Retail Stores in Boston
Price Affordable Price
Promotion Social Media, In-Store Displays and Magazine Ads
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Future Research Direction
• Ideal social media outlets • Celebrity Endorsement • Beauty bloggers: Michelle
Pham • In-store media promotion • Discover attitudes about
unisex products
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>>><><<>><>Thank you><>><>>>>>>