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The Multichannel Challenge at Natura in Beauty and Personal Care
Farris, Paul W.; Guissoni, Leandro; Ailawadi, Kusum; Boccia, Murillo Case M-0943 / Published August 2, 2017 / 18 pages.
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Product Overview

Faced with declining market share and sales, Natura, Brazil's second largest brand in the cosmetics, fragrances, and toiletries market, expanded its customer reach by moving from a direct-sales company to a multichannel company. In 2014, Natura added online catalogs, physical stores, and drugstores to its well-established direct-selling model, but the results were disappointing. Between 2014 and 2016, three different Natura CEOs attempted to lead the company in the strategic transition to focus less on the direct sales consultants and more on reaching the end consumers directly with multiple channels and touchpoints. On October 2016, the company's board appointed its former commercial vice president, Jo?o Paulo Ferreira, as the most recent CEO. Ferreira's challenge was to find the right balance between the direct-selling and other channel formats to market Natura, thus enabling it to thrive in the face of intense competition in the beauty and personal care market in Brazil.

Learning Objectives

Compare the challenges and opportunities involved in expanding existing marketing channels; Identify the issues involved with channel conflict; Present an optimal channel strategy for meeting Natura's customer needs without undermining its core direct-selling strategy.

  • Overview

    Faced with declining market share and sales, Natura, Brazil's second largest brand in the cosmetics, fragrances, and toiletries market, expanded its customer reach by moving from a direct-sales company to a multichannel company. In 2014, Natura added online catalogs, physical stores, and drugstores to its well-established direct-selling model, but the results were disappointing. Between 2014 and 2016, three different Natura CEOs attempted to lead the company in the strategic transition to focus less on the direct sales consultants and more on reaching the end consumers directly with multiple channels and touchpoints. On October 2016, the company's board appointed its former commercial vice president, Jo?o Paulo Ferreira, as the most recent CEO. Ferreira's challenge was to find the right balance between the direct-selling and other channel formats to market Natura, thus enabling it to thrive in the face of intense competition in the beauty and personal care market in Brazil.

  • Learning Objectives

    Learning Objectives

    Compare the challenges and opportunities involved in expanding existing marketing channels; Identify the issues involved with channel conflict; Present an optimal channel strategy for meeting Natura's customer needs without undermining its core direct-selling strategy.