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. In October 2016, the company’s board appointed its former commercial vice president, João 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.
The Multichannel Challenge at Natura in Beauty and Personal Care Available to Purchase
This case was prepared by Leandro A. Guissoni, Professor of Marketing Fundação Getulio Vargas (FGV-EAESP); Paul W. Farris, Landmark Communications Professor of Business Administration, Darden School of Business; Kusum Ailawadi, Professor of Marketing at the Tuck School of Business at Dartmouth; and Murillo Boccia, Director of Ecommerce at Natura; based on reports from secondary sources. It was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation.
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Guissoni LA, Farris PW, Kusum A, Boccia M (2017;), "The Multichannel Challenge at Natura in Beauty and Personal Care". Teaching Notes, Vol. ahead-of-print No. ahead-of-print.
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