Case B: Natura – The International Expansion of Brazilian Cosmetics Leader Natura: In Search of a European Scent

The purpose of this chapter is to offer instructors and students a real managerial dilemma faced by a large Brazilian company in the cosmetics industry as it ventures into the European arena after successful expansion in Latin America.

This is a teaching case for use in class discussion about the advantages and disadvantages of certain courses of internationalization, in particular, standardization versus adaptation of the marketing mix, the choice of entry and operation modes, and the management of international acquisitions.

Since this is a teaching case, there are no “findings” in the usual sense of the word related to traditional empirical studies.

Data for the case came mainly from the manifested perspectives of the company’s Vice-president of International Operations, complemented by the opinions of the company’s Senior Manager of Strategic Planning and of a business analyst of the cosmetic industry, which has been following the company for years. Such data may reflect the particular views of these actors. The authors also used public secondary data from the company’s presentations to the public, consulting companies, and business magazines. Although these accounts may be partial, this is not a severe limitation since a teaching case is expected to provide some information, but not a full set of information, in order to reflect better the real context of managerial decisions.

This teaching case study can help students reflect upon a real managerial dilemma related to international expansion of a firm into psychically distant markets.

This teaching case discusses how an emerging market firm can challenge strong incumbents in developed markets and find a viable positioning, based on a distinctive sales model and value proposition for customers.