International Dimensions of Marketing - Juicy Chemistry Company - Case Study Example

Name) (Instructor) (Institution) (Course code) (Date) International Marketing of Argan & Rose (30 ml) by Juicy Chemistry Company PESTEL Analysis - Denmark Political The business environment is good for business. Any business entering Denmark should not worry much concerning the business risk involved. There is a high level of equality in the business environment. It is important to note that Denmark is one of the least corrupt countries in the world (Koch, 2014). Establishing the business in Denmark will be much beneficial. There is the likelihood of exploiting the EU market since products are allowed to freely circulate in the region without much custom clearance. The company will only be required to ensure all labelling and packing is done properly. Economic The business will thrive well in Denmark since it is a member of OECD ("Denmark and the OECD - OECD", 2016). Furthermore, it is a high-income economy with an equal level of the income distribution. It is the second lowest income poverty, with 6.1% as compared to 11.1% of OECD average (Thelocal.dk, 2015). The economic growth of this country has been slow owing to the fact that it was the first European country to experience the 2008 economic recession. The unemployment rate stood at 6.3% in April 2015. Its GDP growth has been very slow; it currently stands at 0.4% (Tradingeconomics.com, 2016). The Danish currently spend less on expensive luxury goods. Despite the economic downturn and tightened individual finance, it doesn’t deter the Danish on beauty and personal product. It is worth nothing that, spending on beauty products has increased by 4% (Euromonitor.com, 2015). The economic situation is expected to recover. It is projected that annual gross income will increase by 18.6% with the annual disposable per capita by 19.2% (Tradingeconomics.com, 2016). This is good for the expansion into Canada as there a projected increase in the spending power of the Danish Social-Cultural Towards the end of 19th Century, the majority of the citizens live in the urban areas. This is attributed to the industrial revolution which created job opportunities in the urban areas. Despite the end of the industrial revolution, the citizens have stood ground to live in the urban settings. As a result, schooling and shopping is urban oriented. The company will target the urban areas when entering Denmark before expanding. The Danes prefer natural products because of their close association with the organic sector and retail industry. 21.3% of their shopping account for the natural products. The urban dwellers are more concerned with ecology products as compared to those who live in the rural areas. This will be good for the Juicy Chemistry company (Hjelmar, 2011, pg. 336-344). This is due to the fact they live in a polluted environment, therefore, preferring natural and ecological products. Animal and environmental factors are the driving force behind the Danes preference to organic products. Another factor is the awareness of healthy lifestyle. Technological This part talks about the technological usage and advancement in Denmark. The use of internet and computer is part and parcel of the Danes daily life. 96.3% of the population in Denmark access internet (Internetlivestats.com, 2016). Due to this high penetration of internet service, the majority of the Danes buy products online. This is done very often making the e-commerce a significant distribution channel. The Juicy Chemistry need to adapt to online shopping to make it the Danish market. This is because the advancement in technology help to reduce the cost of running businesses as it requires less personnel and the innovation is boosted. This not only benefits the customers but also benefit the company as well. The customers will be able to get new innovative products and the company is earning more profit as well. Legal Since becoming a member of European Union in 1973, the Danes have been environmentally friendly (EU Information Centre, 2016). In fact, Denmark was the first country to establish an environmental law in 1973 ("Spotlight on Denmark", 2016). Denmark has adopted The International Quality Management System used across the globe. International standard ISO 22716:2007 guides in the production, storage, control and shipment of cosmetic products. It provides guides on the quality aspects, raw materials, production, quality control laboratory, wastes, the finished products, equipment, packaging materials and standards of the human resource among others. The standard gives guidelines on what and how to do with the deviations, recalls, complaints and the treatments of products that are out of specification To maintain a high standard for organic and cosmetic products, the Danish Organic National Association established rules to ensure that all organic products must meet the said common standards and strict control ("Danish organic logo", 2016). This will be a plus for the Argan & Rose product in the Danish market. The Argan & Rose already meet the said standards. Environmental The environmental factors like weather and climate change play some critical roles industries in Denmark. From November 2007, the authorities in Denmark have been working around the clock to there is a Denmark is a green and sustainable society with a long-term policy on climate and energy ("Danish Energy, Utilities and Climate Policy", 2016). It is worth noting that Denmark is using stable and secure energy which include wind power as a way of reducing greenhouse gas emissions and curtail the global warming. The ministry concerned is working towards the reduction of greenhouse gas not only in Denmark but in the world as well. Summary of the company’s Juicy Chemistry Juicy Chemistry was founded two years ago, 2014, by Pritesh & Megha Asher. The main aim for the establishment of the company was to provide effective skin care products made from the purest possible product with most the rich nutrients. The idea of the product was born after Megha suffered for over a decade with hyper-sensitive and acne-prone skin. This suffering led Megha Asher to visit many dermatologists. She concluded that the products in the market lacked efficacy. After series of disappointments, she wanted to try the organic product. She was lucky to come across Pritesh, a salesperson, who was selling natural products. After telling her story, Pritesh realized that some of the ingredients listed were used in the manufacturing department were raw material ("Our Story | Juicy Chemistry- Simplified Skincare", 2016). With a manufacturing background and experience in complex formulation, Pritesh had learned some manufacturing techniques and important aspect of business. The decided to come up a unique skincare product that will offer simplified solutions. This led to the birth of Juicy Chemistry products. There are several organic products manufactured by the company. These products are all formulated with no amount of chemicals and preservatives ("Our Story | Juicy Chemistry- Simplified Skincare", 2016). It is worth nothing that most personal care products including baby care products contain harmful ingredients. There was a gap in the market. this was a big opportunity for the two to seize. All the products manufactured by the company is 100 percent natural and chemical free. Summary of the Product - Argan & Rose (30 ml) Argan & Rose product is made oils containing natural SPF. Red Raspberry Seed oil and Carrot Seed oil act as natural protection from both UVB and UVA rays. The saffron and rose essential oils are combined which together to protect the skin from sun damage and moisturize the skin ("Argan & Rose (30 ml) | Juicy Chemistry- Simplified Skincare", 2016) How to Use Argan & Rose You spray a small amount of Argan & Rose on your palms and apply on the face and body. Allow it to absorb. This should be done 15 minutes before stepping out in the sun ("Argan & Rose (30 ml) | Juicy Chemistry- Simplified Skincare", 2016) Marketing Mix Process The company pays a lot of attention on the right from ordering, purchase to the delivery the quality organic products (Argan & Rose). The customers can physically access the products in the existing outlets in Denmark. There are varieties of products to choose from. Customers can also access them in all supermarkets, leading shops and retail outlets. Customers can also purchase online by placing orders in a platform found in the official website and other sales partners. Position The company will open a retail shop in the two cities of Copenhagen and Aarhus since these cities has the highest population in Denmark. These shops will also run online and social media where its customers will make inquiries, orders and shop as well. The company will run an official website in (English and Danish) where customers will be able to shop online just like in India. The company will also distribute and sell Argan & Rose through other retail avenues like supermarkets, pharmacies and chemists People The company is currently growing. The number of staff is quite small and manageable. They are highly trained to handle their duties diligently. The member staffs in the administration/service department have a good sense of public relations when handling suppliers and customers’ queries and concerns by responding promptly in a clear manner with detailed information. When the need arises, they undergo training so as to improve in their areas of work. They are allowed to make informed decisions that are of the best interest to the company and the clients. The junior ones normally consult the senior staff when in doubt. While at work, they are encouraged to abide by the company philosophy and brand name. The new markets in Copenhagen and Aarhus will adopt the same References Argan & Rose (30 ml) | Juicy Chemistry- Simplified Skincare. (2016). Juicy Chemistry- Simplified Skincare. Retrieved 20 November 2016, from https://juicychemistry.com/product/argan-rose-day-serum-10ml/ Danish Energy, Utilities and Climate Policy. (2016). Klima-, Energi- og Bygningsministeriet. Retrieved 20 November 2016, from http://old.efkm.dk/en/climate-energy-and-building-policy/danish-climate-energy-and-building-policy Danish organic logo. (2016). En.mfvm.dk. Retrieved 20 November 2016, from http://en.mfvm.dk/focus-on/organic-denmark/danish-organic-logo/ Denmark and the OECD - OECD. (2016). Oecd.org. Retrieved 20 November 2016, from http://www.oecd.org/denmark/denmark-and-oecd.htm EU Information Centre,. (2016). Home. EU Information Centre - Home. Retrieved 20 November 2016, from http://english.eu.dk/ Euromonitor.com,. (2015). Beauty and Personal Care in Denmark. Euromonitor.com. Retrieved 20 November 2016, from http://www.euromonitor.com/beauty-and-personal-care-in-denmark/report Hjelmar, U. (2011). Consumers’ purchase of organic food products. A matter of convenience and reflexive practices. Appetite, 56(2), 336-344. http://dx.doi.org/10.1016/j.appet.2010.12.019 Internetlivestats.com,. (2016). Internet Users by Country (2016) - Internet Live Stats. Internetlivestats.com. Retrieved 20 November 2016, from http://www.internetlivestats.com/internet-users-by-country/ Koch, A. (2014). Europe, Central Asia and the state of corruption in 2014: the gold standard? | Space for Transparency. Blog.transparency.org. Retrieved 20 November 2016, from http://blog.transparency.org/2014/12/03/europe-central-asia-and-the-state-of-corruption-in-2014-the-gold-standard/ Our Story | Juicy Chemistry- Simplified Skincare. (2016). Juicy Chemistry- Simplified Skincare. Retrieved 20 November 2016, from https://juicychemistry.com/our-story/ Spotlight on Denmark. (2016). Ifeh.org. Retrieved 20 November 2016, from http://www.ifeh.org/spotslights/11_denmark.html Thelocal.dk,. (2015). Denmark has OECD's lowest inequality. Thelocal.dk. Retrieved 20 November 2016, from http://www.thelocal.dk/20150521/denmark-has-lowest-inequality-among-oecd-nations Tradingeconomics.com,. (2016). Denmark GDP Growth Rate | 1991-2016 | Data | Chart | Calendar | Forecast. Tradingeconomics.com. Retrieved 20 November 2016, from http://www.tradingeconomics.com/denmark/gdp-growth Tradingeconomics.com,. (2016). Denmark GDP per capita Forecast 2016-2020. Tradingeconomics.com. Retrieved 20 November 2016, from http://www.tradingeconomics.com/denmark/gdp-per-capita/forecast Read More