BUSN 3500: Services Market Entry Strategy Comparative Report

This report undertakes a comparative analysis of the international market entry strategies of L'Oreal and NudeStix. The report delves into the market entry methods employed by both companies, highlighting L'Oreal's joint venture approach in Canada and NudeStix's Canadian origins. It examines the pricing and promotion strategies, including L'Oreal's competition-based pricing and extensive marketing efforts versus NudeStix's skimming pricing and online focus. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors influencing each company's market entry. The report also considers media reporting, existing competition, and concludes by emphasizing L'Oreal's established brand image and NudeStix's potential for future growth. The report references various academic sources to support its analysis, providing a comprehensive overview of the challenges and opportunities in international business expansion.

Running Head: International Business Entry Strategy 1
International Business Entry Strategy
1/31/2020

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Contents
Introduction.................................................................................................................................................3
Market Entry Method..................................................................................................................................3
Pricing Strategy...........................................................................................................................................3
Promotion....................................................................................................................................................3
PESTLE Analysis........................................................................................................................................4
Political Factors.......................................................................................................................................4
Economic Factors....................................................................................................................................4
Social Factors..........................................................................................................................................4
Technological Factors..............................................................................................................................4
Legal Factors...........................................................................................................................................5
Environmental Factors.............................................................................................................................5
Media Reporting of Market Entry............................................................................................................5
Existing Competition...............................................................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7
Appendix.....................................................................................................................................................8

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Introduction
To explore the market and expand business many organizations think to enter in different
countries. Therefore, one of the best examples is L’Oreal. It is one of the largest personal care
brands in the world. It was founded in New York, United Sates. L’Oreal has a subsidiary names
as Maybelline. The products are made in different countries such as France, Brazil, China, India,
and Japan. It has captured a big market share in all over the world. It entered into Canada by
teaming up with Puma for 12-piece makeup collection. To enter into any market L’Oreal first
determines the best way of entry and study the country’s market properly. Another organization
is NudeStix, a Canadian personal care company. While providing services of makeup, event
planning it also gives brand education (Brissot et al., 2018)
Market Entry Method
Every company has its own different methods to enter into the market. The L’Oreal
entered through joint venture in Canada with collaboration with Puma brand and with taking
permission from the Canadian Government. In addition, L’Oreal was the first company in
Canada to get certificate from EDGE (Economics Dividends for General Equality). L’Oreal has
its big market share in the world and now in Canada too. Whereas, Nudestix is Canadian
company especially setup in Toronto. It has registered four trademarks. To entry in other
country, Nudestix will have to face many legal formalities. However, L’Oreal do not have to face
that much legal formalities because it is well-known and a famous brand (Cunha, 2017)
Pricing Strategy
It is covered in Marketing Mix. The pricing of every company is the main element.
L’Oreal follows competition based pricing. It gives tough competition to its competitors.
Whereas, Nudestix follows skimming pricing (De Caterina, 2020)

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Promotion
The L’Oreal is entering into a transformation known as ‘marketing 3.0’. It has tested it in
U.K first. L’Oreal provides services both online and offline. It also advertises on television,
newspapers, magazines and social media. Whereas, Nudestix Company of personal care provides
mainly online services to its customers. It also advertises from newspaper, magazines but no able
to advertise on television like L’Oreal because of its heavy cost. Nudestix address all target
demographics. Promotion attracts a customer that’s why L’Oreal is more famous than
Nudestix(Gazzola, 2018)
PESTLE Analysis
Political Factors
While entering into Canada, L’Oreal has faced some difficulties in capturing the market.
The government policy of Canada was affecting L’Oreal at large. While Nudestix, do not have to
face these problems because it has origin there (Goxe, & Pires, 2019)
Economic Factors
There are different prices in different countries. The L’Oreal is luxury brand and aids in
contributing the GDP. Whereas, Nudestix is not a luxury brand and does not support that much
in GDP. Also, Nudestix is affected with exchanges rates whereas, L’Oreal is not (Kimmel, 2018)
Social Factors
Social factors affect the products or companies at very large. The company needs to cope
up with ethical issues as well. Nowadays, people are very concern for their health and they want
to use only that product which gives guarantee for their products. L’Oreal has a brand image and
people believe in its products very easily. Whereas, Nudestix is developing its image and
customers does not believe in its products easily. Nudestix has to pitch customers for their
products to buy (Li et al., 2017)
Technological Factors
The most and foremost requirement of every business is technology. For every luxury
brand technology and innovation is the key feature to follow for success. Therefore, L’Oreal

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always stays updated with its technologies and follows contemporary brands. Whereas, Nudestix
has following trends step by step to stay updated. It is not luxury and cannot able to follow the
innovations as fast as L’Oreal (Wolff, 2016)
Legal Factors
To survive and compete in the global market every business has to maintain the graph of
success. It is very much compulsory to fulfill the legal requirements. Whereas, Nudestix is
smaller one compared to L’Oreal. It is also required to comply with other country’s regulations
but it is hard for small companies (Kimmel, 2018)
Environmental Factors
The companies are required to maintain the environment. All the international brands are
on their way to make the planet beautiful. The same thing applies with L’Oreal, it is supporting
planet by campaigns and following the norms. Even L’Oreal has to maintain the planet as it is
compulsory. Whereas, Nudestix is not an international brand and does not need to comply this
much formalities. But every company has to maintain the authenticity of cleaning planet by their
inner norms(Goxe, & Pires, 2019)
Media Reporting of Market Entry
The entrance in market should be innovative. The entry will be telecasted or posted.
Report in media reflects and shows an image of the company. L’Oreal has entered into the
Canadian market with very innovative trends and attracted technology. Media showed it very
well and announced its entry at big level. Whereas, Nudstix is smaller company and involvement
of media is not that much as in L’Oreal. Therefore, customers do not get information of its entry
into the market (Gazzola, 2018)
Existing Competition
The luxury brands have the number of competitors. The main competitors of L’Oreal are
Sephora, Chanel, Clarins, and Revlon. They give tough competition to L’Oreal that is why
L’Oreal needs to be very innovative and trendy to be the best. Whereas, the Nudestix has its
competitors named as L’Oreal, Revlon, Organic and Pharmacy (De Caterina, 2020)

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Conclusion
Both companies are successful in their countries. Both companies are growing faster but
L’Oreal itself has a brand image that is why it is more preferable and recommended. Nudestix is
growing slowly and will rise in future. It is extending its business in different countries and soon
will be famous as other personal care companies

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References
Brissot, P., Cavey, T., Ropert, M., Gaboriau, F., & Loréal, O. (2018). Hemochromatosis: a model
of metal-related human toxicosis. Environmental Science and Pollution Research, 25(3),
2007-2013.
Cunha, M. D. C. D. O. (2017). L’Oréal: Ombré hair kit consumer-focused product development
to find new market opportunities (Doctoral dissertation).
De Caterina, F. (2020). “Sharing Beauty With All”: Sustainability According to L’Oréal
Italia. Symphonya. Emerging Issues in Management, (1), 59-67.
Gazzola, P. (2018). Ethical Behaviour Integrated in CSR: How to create and maintain the
Corporate Reputation. Economia Aziendale Online, 9(2), 175-185.
Goxe, F., & Pires, M. V. (2019). Because It’s Worth It? A Critical Discourse Analysis of
Diversity: The Case of L’Oréal. In Responsible Organizations in the Global Context (pp.
97-116). Palgrave Macmillan, Cham.
Kimmel, A. J. (2018). Psychological foundations of marketing: the keys to consumer behavior.
British: Routledge.
Li, C., Hariharan, R., Simonnet, J. T., Zhou, X., Bui, H. S., & Fairneny, S. (2017). U.S. Patent
No. 9,597,272. Washington, DC: U.S. Patent and Trademark Office.
Wolff, E. (2016). L’Oréal Case. In WCOM (World Class Operations Management) (pp. 19-28).
Springer, Cham.

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Appendix