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International Marketing Example

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

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International Marketing Example

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  1. International Marketing Example Wiem Azaiez Linn Mona Batool Awwad Sharzad Fereiduni Doron Rosenberg Ekaterina Moustafina Lisa Moore

  2. 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

  3. 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

  4. AHAVA – Marketing Mix Product lines: • Source – facial and body • Men – skincare for men • Time – anti-aging • Pure – spa products • Dermud – dry and sensitive • Mineral botanic – soaps • Mineral sun care • Mineral makeup

  5. 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.

  6. 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 “ compaign, Ny fashion week • Cuponrefund.com

  7. AHAVA – Marketing Mix • Distribution: • Israeli local market • Ahava retail chain • International expansion : 25 coutries in the world • Online distribution : ahava.com and several other websites such as amazon.com

  8. 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 • Environmental 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

  9. SWOT Analysis Weaknesses: • Very small global market share • High manufacturing costs (in Israel) • 50% owned by Gaon Holdings Ltd. Enterprise

  10. SWOT Analysis Opportunities: • Sustainable development of the Dead Sea natural resources (environmental-friendly) • Trend toward 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.

  11. 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

  12. Competitors

  13. Conclusions: • First mover advantage in marketing Dead Sea products. • Quickly realized global potential • Offer a wide range of unique products • Strong marketing skills • Succeeding despite numerous challenges • Strong financial growth

  14. THANK YOU! QUESTIONS?

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