1. CASE STUDY REHEARSAL: NATURA Group: Alexandre Matheus Fernanda Ferreira Martha Romo Myrza Muniz Secles Souza Rio de Janeiro, 21 st July, 2008 Marketing in Complex Contexts Profs. Delane Botelho & Jonathan Speier

4. Greenfield operations France (Paris) Success with owned retail store Greenfield through direct sales and store chain Mexico Success with hybrid model Piggyback exporting Argentina, Bolivia, Peru and Chile Success through partnership with local distributors Direct exporting Portugal and USA (Florida) Failure Greenfield through Direct-sales Brazil Success Mode of entry used Countries Entry outcomes

6. A) Natura is evaluating whether Russia should be its next step towards global expansion. B) The next place and mode of entry that Natura should consider in order to expand to other countries, if Russia is not chosen. Opportunities

8. Alternative 1: Greenfield operations with direct sales – same as Brazil Alternative 2: Piggyback exporting Alternative 3: Greenfield operations with hybrid model (direct sales + store chain) Alternative 4: Greenfield operations with owned retail store Opportunity A: Entering Russia Alternative 5: not entering Russia

14. Alternative 1: Greenfield operations with direct sales – same as Brazil Alternative 2: Piggyback exporting Alternative 3: Greenfield operations with hybrid model (direct sales + store chain) Alternative 4: Greenfield operations with owned retail store Alternative 5: not entering UK Opportunity B: Entering UK

19. Since the case does not provide us with enough demographic data, Natura should not enter Russia, since Russian market does not cope with the company’s environmental positioning and the cultural barriers seem hard to trespass. Considering the scarce data available, we recommend as the next step towards global expansion, entering UK, with a hybrid model: through Greenfield operation and store chain – ALTERNATIVE 3B Although costly and risky, UK has a strong C&T market, as well as a strong direct-sales culture. Shipments to UK would less costly to Natura, once the products can come together with the French orders. “ Natura’s decision-making process combines: financial, philosophical and emotional components envisioning a balanced value creation to shareholders, society and environment.”