Harvard Case - Beleza Natural: Marketing Strategies for Empowering Social Change
"Beleza Natural: Marketing Strategies for Empowering Social Change" Harvard business case study is written by Alexander Chernev, Vasilia Kilibarda. It deals with the challenges in the field of Marketing. The case study is 17 page(s) long and it was first published on : Jun 24, 2019
At Fern Fort University, we recommend Beleza Natural adopt a multi-pronged marketing strategy that leverages its unique brand positioning, empowers its target audience, and drives sustainable growth. This strategy will focus on: * Strengthening Brand Identity: Reinforcing Beleza Natural's commitment to social responsibility and empowering women through its products and services. * Expanding Market Reach: Targeting new customer segments within Brazil and exploring international expansion opportunities. * Leveraging Digital Marketing: Utilizing social media, content marketing, and digital advertising to engage with a wider audience and build brand loyalty. * Optimizing Product Development: Developing new product lines and services catering to evolving customer needs and market trends. * Building a Strong Community: Fostering a vibrant online and offline community that celebrates diversity, promotes self-acceptance, and empowers women.
2. Background
Beleza Natural is a Brazilian hair care company founded by Zenaide and Eurico in 1993. The company specializes in products and services for women with Afro-textured hair, a market segment often underserved by mainstream beauty brands. Beleza Natural's mission is to empower women through its products and services, promoting self-acceptance and celebrating natural beauty. The company has achieved significant success in Brazil, establishing a strong brand reputation and loyal customer base. However, Beleza Natural faces challenges in expanding its reach and maintaining its competitive edge in an increasingly crowded market.
3. Analysis of the Case Study
To analyze Beleza Natural's situation, we can utilize several frameworks:
1. SWOT Analysis:
- Strengths:
- Strong brand identity and loyal customer base.
- Unique product offerings catering to a specific market need.
- Strong commitment to social responsibility and empowerment.
- Experienced management team with a deep understanding of the target market.
- Weaknesses:
- Limited international presence.
- Dependence on a single market (Brazil).
- Potential for increased competition from mainstream brands.
- Lack of a robust digital marketing strategy.
- Opportunities:
- Growing demand for natural and organic beauty products.
- Increasing awareness of cultural diversity and inclusivity.
- Potential for international expansion, particularly in emerging markets.
- Opportunities to leverage digital marketing and social media platforms.
- Threats:
- Economic instability in Brazil.
- Increased competition from global beauty brands.
- Changing consumer preferences and trends.
- Potential for negative publicity or brand damage.
2. PESTEL Analysis:
- Political: Political stability in Brazil is crucial for Beleza Natural's success.
- Economic: Economic fluctuations can impact consumer spending on beauty products.
- Social: Growing awareness of diversity and inclusivity presents opportunities for Beleza Natural.
- Technological: Digital marketing and e-commerce offer significant growth potential.
- Environmental: Sustainability and ethical sourcing are increasingly important to consumers.
- Legal: Regulations regarding product safety and labeling can impact Beleza Natural's operations.
3. Consumer Behavior Analysis:
- Beleza Natural's target market consists of women with Afro-textured hair who value natural beauty, self-acceptance, and empowerment.
- This market segment is increasingly seeking products and services that reflect their cultural identity and promote healthy hair care practices.
- Consumers are also becoming more informed about ingredient transparency, sustainability, and ethical sourcing.
4. Competitive Analysis:
- Beleza Natural faces competition from both local and global beauty brands.
- Mainstream brands are increasingly targeting the Afro-textured hair market with new product lines.
- Local competitors offer similar products and services, but may lack Beleza Natural's brand recognition and social impact.
4. Recommendations
1. Strengthening Brand Identity:
- Redefine Brand Positioning: Reiterate Beleza Natural's commitment to social responsibility and empowerment through a refreshed brand message and visual identity.
- Develop a Brand Manifesto: Articulate Beleza Natural's core values and mission in a clear and compelling way.
- Implement a Brand Storytelling Strategy: Share inspiring stories of women empowered by Beleza Natural products and services through various marketing channels.
2. Expanding Market Reach:
- Target New Customer Segments: Expand beyond its core customer base by targeting younger generations, men with Afro-textured hair, and individuals with diverse hair types.
- Explore International Expansion: Identify promising markets with high demand for Afro-textured hair care products, such as the United States, Europe, and Africa.
- Develop Localized Marketing Strategies: Tailor marketing messages and product offerings to the specific needs and preferences of each target market.
3. Leveraging Digital Marketing:
- Build a Strong Online Presence: Develop a user-friendly website with informative content, engaging visuals, and a seamless online shopping experience.
- Utilize Social Media Platforms: Engage with customers on platforms like Instagram, Facebook, and YouTube to build brand awareness, share product information, and foster community engagement.
- Implement Influencer Marketing Strategies: Partner with relevant influencers to reach a wider audience and build credibility.
- Run Targeted Digital Advertising Campaigns: Utilize social media advertising, search engine marketing (SEM), and other digital channels to reach specific target audiences.
4. Optimizing Product Development:
- Develop New Product Lines: Expand product offerings to cater to evolving customer needs, such as hair styling tools, hair accessories, and natural hair care products for men.
- Introduce Innovative Product Formulations: Invest in research and development to create new and improved product formulations that address specific hair concerns and promote healthy hair growth.
- Focus on Sustainable Packaging: Adopt eco-friendly packaging materials and reduce waste to appeal to environmentally conscious consumers.
5. Building a Strong Community:
- Host Online and Offline Events: Organize workshops, webinars, and community gatherings to educate customers about hair care, share tips and tricks, and foster a sense of belonging.
- Create a Loyalty Program: Reward loyal customers with exclusive benefits, discounts, and access to special events.
- Encourage Customer Feedback: Actively solicit customer feedback through surveys, social media interactions, and online reviews to improve products and services.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Beleza Natural's strengths, weaknesses, opportunities, and threats, as well as an understanding of the evolving beauty industry landscape. They are consistent with Beleza Natural's mission to empower women and promote self-acceptance. Furthermore, these recommendations consider the needs of both external customers and internal clients, including employees, suppliers, and investors.
The recommendations are expected to generate positive returns on investment (ROI) by increasing brand awareness, customer loyalty, and revenue. The success of these recommendations will depend on several key assumptions, including:
- Continued growth in the market for natural and organic beauty products.
- Increased consumer awareness of diversity and inclusivity.
- Beleza Natural's ability to effectively implement its marketing strategies.
- The company's commitment to innovation and product development.
6. Conclusion
By implementing these recommendations, Beleza Natural can strengthen its brand identity, expand its market reach, leverage digital marketing, optimize product development, and build a strong community. This comprehensive approach will enable the company to achieve sustainable growth while staying true to its core values and empowering women around the world.
7. Discussion
Alternative options for Beleza Natural include:
- Focusing solely on the Brazilian market: This approach would be less risky but would limit growth potential.
- Partnering with a larger beauty company: This could provide access to resources and expertise but could compromise brand control and autonomy.
- Adopting a more aggressive pricing strategy: This could increase revenue but could alienate price-sensitive customers.
These alternatives carry risks and uncertainties. For example, focusing solely on the Brazilian market could limit growth potential, while partnering with a larger beauty company could compromise brand control. Adopting a more aggressive pricing strategy could alienate price-sensitive customers.
8. Next Steps
To implement these recommendations, Beleza Natural should:
- Develop a detailed marketing plan: Outline specific objectives, strategies, tactics, and timelines for each recommendation.
- Allocate resources: Secure the necessary budget and personnel to execute the marketing plan.
- Monitor progress and make adjustments: Track key metrics, such as brand awareness, customer acquisition, and revenue growth, and make adjustments to the plan as needed.
By taking these steps, Beleza Natural can position itself for continued success in the beauty industry while making a positive impact on the lives of women around the world.
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Case Description
This case features an entrepreneur striving to rapidly grow a successful chain of hair salons that serve women with afro hair. After doubling from 13 to 26 salons across Brazil in 2014, the founders' expansion plan called for 120 Beleza Natural salons and R$1 billion in sales by 2018. CEO and cofounder Leila Velez is considering various fundamental marketing strategies to catalyze growth: Should Beleza launch a new mass-media campaign, increase promotional discounts, expand its target market to serve men, broaden its service offerings, streamline processes to reduce wait times, expand distribution channels, or franchise? Students assume the role of Velez and are asked to recommend which growth strategy would be their top priority. In doing so, they are required to evaluate how these strategies pertain to the company's business model and value proposition. They are also challenged to consider what a brand is and what makes a strong service brand in order to verify if their strategies are consistent with Beleza's brand. The teaching note outlines a framework for developing or evaluating a business model as well as developing strategies for managing growth. The case is accompanied by a series of video interviews with Velez that support case preparation, in-class discussion, and key learning points.
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