Transcript שקופית 1
International Marketing Example Wiem Azaiez Linn Mona Batool Awwad Sharzad Fereiduni Doron Rosenberg Ekaterina Moustafina Lisa Moore Agenda • • • • • Background The Dead Sea Marketing Mix SWOT Analysis Conclusions 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: • • • • 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 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 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 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 Mix Distribution: • • • • Israeli local market Ahava retail chain 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?