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Bulgarian Rose Oil for the Japanese Joshi [how could the Japanese female fragrance market be successfullyu penetrated by Alteya's Bulgarian rose oil EdP refan Rose?]

Rechten: Alle rechten voorbehouden

Bulgarian Rose Oil for the Japanese Joshi [how could the Japanese female fragrance market be successfullyu penetrated by Alteya's Bulgarian rose oil EdP refan Rose?]

Rechten: Alle rechten voorbehouden

Samenvatting

Alteya is a small, private, Bulgarian company which was founded in 1999. Its high quality products are certified by many different international organizations. It manufactures products based on lavender and rose oils such as pure essential oils, cosmetics, perfumes etc. Alteya sells them via e-commerce and sales offices situated on three different continents. The firm has a closed-cycle production; however, it has a weak position on the international markets and its brand name is not well-known. In addition, it
is situated in one of the poorest regions of the EU. Japan has a population of almost 130 million people, most of whom are a
Japanese nationality. The country faces two very significant problems - a declining birth rate and a quickly aging society, which leads to the increase of the share of the "silver market". Moreover, it is the second largest economy in the world that has not been as badly affected from the world financial crisis as other countries. Japan has an excellent infrastructure. The Eastern Asian nation has a very unique and different culture and business etiquette compared to Western standards. Furthermore, Bulgaria and its products are very popular in the "land of the rising sun".

Japan is the world's largest cosmetics market. The fragrance segment
represents the smallest part of it; however, it is almost entirely composed of foreign branded perfumes. Additionally, the market has changed a lot in a positive direction in terms of regulations in the past years. It has become freer and to a great extent easily accessible meaning that export of cosmetics and in particular perfumes has become easier.
The external analysis of the Japanese market investigates its accessibility. In terms of opportunities for Alteya it provides few regulatory requirements and a large target group that constitutes the so-called "silver market". The complex tax system, modest use of perfumes and the highly competitive market are among the threats that can make it difficult for this Bulgarian company to export its product to Japan.
Alteya's most competitive and best product, the perfume Refan Rose, is the one that will be exported. It lacks a brand image and it needs to be adapted to the Japanese market. In terms of price it should be positioned in the high-end niche. Prestige and psychological pricing strategies have to be used in order to sell the perfume in department stores, duty-free shops and on the Internet. The product needs to be promoted via different types of media as well as on cosmetics exhibitions. A choice needs to be made between two advertising strategies - the dispersing capital and the concentrating capital (section 7.4.2). An USP should be correctly and very carefully
chosen.
There are four export entry modes that Alteya can use - indirect and direct export, e-commerce and non-export entry mode. The best choice for the export of Refan Rose is the direct method, in particular the use of distributors. In addition, e-commerce can be also used; however, the focus should be on the direct sales via distributors. In the future, when Alteya has gathered more experience on the Japanese market, the export strategy could be changed.
Factors such as export entry mode, currency fluctuations, demographic
changes, competitive rivalry power, success of promotions, documents' costs and tax policy changes influence the market price of Refan Rose. Taking into consideration all of the above mentioned issues and at the same time making a calculation including different types of cost figures, it could be concluded that the best final customer price of Refan Rose per bottle is ¥ 2,990, which is equal to € 23.

Toon meer
OrganisatieDe Haagse Hogeschool
AfdelingESC Hogere Europeses Beroepen Opleiding
PartnersAlteya (reukwaren)
Jaar2009
TypeBachelor
TaalEngels

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