Cosmétique Bio International Negotiation (document en anglais)

I. Business Plan

a) The Project

In this work, I will be the international team manager of salespeople composed of ladies and gentlemen in an international group. My work will consist in dealing with Luxurious Organic Cosmetics products and developing an international sales programme.

To reach this aim, I have decided to reinforce my team in order to expand the business of organic products. Moreover, I will try to develop new sales network in different countries such as Middle East, North America and Europe.

Today the company is facing a fierce international competition from emerging countries and my job is to prepare my team to negotiate partnership and secure contracts and also to identify relevant resources.

b) Problematic

Concerning a potential problematic, I thought that this one will be appropriate with my mission statement:

How can I provide efficient tools and recommendations to help my team to establish reliable partnership and contract?

c) Market analysis

Despite the crisis, the global market for perfumes and cosmetics keeps growing indicates a recent survey realized by French Eurostaf. In 2008, although slowing, the global market had experienced satisfactory growth (+5.0% at constant exchange rates). However, the year 2009 was particularly difficult for the beauty industry, even if global growth should remain positive, thanks to the dynamism of emerging countries.

The cosmetics market is growing and changing with the emergence of new needs. In fact, our society is moving in the "culture of beauty", and people attach more importance to physical appearance, which is why we are seeing a growing consumption of cosmetics.

Geographically, growth prospects appear very different from one region to another. The Western Europe, the world's largest market, North America and Japan still represent the bulk of sales. But these markets are mature, with significant penetration of the different product categories. Growth in these countries is expected to remain moderate, with the exception perhaps of the male market.

In contrast, the Eastern Europe, Latin America and Asia (excluding Japan) are developing very rapidly. Among emerging markets, three are now among the 10 largest consumers of cosmetics: Brazil, China and Russia. Brazil occupies the same leading products for hair care, and perhaps also for perfumery.

d) Swot Analysis

Strengths and Opportunities

We offer a wide and deep, good quality products and above all have a very strong reputation in France. We are a very dynamic brand, with an active research and development, and intensive communication.

In fact the company has based its communication on the harmony between man and the nature, we use "the best of what nature has to offer". Thus, we use vegetable raw materials in the manufacture of products.

Moreover, we know that we have a certain ethic. Indeed, the group attaches a huge importance to environmental effects. In a society increasingly concerned with environmental issues, the group is part of the few groups that attaches to the protection of the environment such important position. Indeed, a trend in favour organic and natural cosmetics is really present in our society thus this aspect really represents a real opportunity for companies working on this market.

In addition, we are an innovative group and we want the installation of our group in several countries. As you know, our group have research and development services and marketing performance.

Threats and Weaknesses

The fact that we are faced to an increasing competition represents a real threat. Indeed, competitors on this market are numerous:

The Body Shop, Weleda, Caudali, Aveda, grassland, and newer competitors such as: Fresh, Natura, Origin's Nux Dr. Hauscka, Soft Me, Lush...

Competition also included large groups such as L'Oreal, Beiersdorf and Nivea, LVMH, Clarins, Marionnaud and Nocibé.

However, The Body Shop represents our biggest competitor achieves a turnover of 1.1 billion €.

Growing power distribution:

- Need to preserve the environment

- Potential hazards of chemicals present in synthetic and traditional cosmetics: the need to develop natural products.

- Need to maintain a high capacity for innovation: an innovation race.

- The product range is constantly expanding.

- Monitor potential new entrants.

- Increased regulation involving increased development costs.

- Choice of distributors very important.

Moreover, as a weakness we also find the fact that for the moment we are not settle/enough settle in the Middle East, North America and in Europe. But the company is working on this point, and wants to expand its business on these markets through intermediaries.

e) Our objectives

For the future of the company we have many objectives:

- Establish business with the Middle East, America and Europe

- Provide to our company profitable growth

- Reinforce the sales-team

- Provide to my sales team an international background

- Find good and well known intermediaries

II. Keys of success

In this second part, we will underline why preparation will be necessary and which resources will be important in order to improve the negotiation skills of my sales team. In addition, we will also analyse in detail each markets in order to know how to operate and deals with them. Moreover, recommendation will be given to provide help to my team.

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