Golden Global Award
Global Cosmetics Brand
Coralius Cosmetics is a global cosmetics manufacturer with annual revenues of USD 1.1 billion. Headquartered in Los Angeles, its brand of eyeliner, mascara and eye shadow is widely recognized in over 75 countries. In the past, Coralius has successfully relied on its regional managers to create local advertising and promotion initiatives for its cosmetics.
Blockbuster Opportunity
A film industry studio has approached the executive vice president and global marketing officer of Coralius Cosmetics with a cosmetic sponsorship offer for a sequel to a blockbuster movie. Since the three female stars of the movie are from western Europe, south Asia and eastern Europe, the VP sees this sponsorship as an opportunity to launch a global brand-building strategy. She proposes to the Coralius CEO that the company create three new eye colour palettes for each of the three stars and then use the stars in the company’s advertising. The new products are to be launched to coincide with the film’s releases in different countries.
Budget Concerns
The CEO likes the idea of the VP’s global brand-building strategy, but wonders where she will get the money for the promotion and related advertising. The VP hopes to gain buy-in from the regions so that the regional managers will contribute money from their marketing budgets. She has already received a commitment from Coralius’ marketing head for North America. The VP is convinced she can bring the western Europe, south Asia and eastern Europe regional heads on board with little effort, but the CEO is not so sure. He explains he may have to cut marketing budgets again if the market for Coralius’ products remains soft in the United States. This will leave the regional heads with very little money for local advertising or promotion activities after they pay for the global promotion. He thinks the regional heads will resist the idea and suggests the VP consult with them first. The VP plans to meet with each of the regional heads in question the following week.
Regional Differences
The VP talks with the marketing heads for western Europe, south Asia and eastern Europe. The western Europe marketing head loves the idea of a big movie-based promotion to launch Coralius’ global brand-building strategy. He is keen on matching the success of MAC’s movie-inspired promotions. However, he believes western Europe must have a promotional website separate from the North American one.
The head of south Asia marketing is willing to try it out. She feels that a global strategy would work in some parts of India. However, she thinks local marketing initiatives will still work best, because of the income disparities in India and the difficulty in overcoming cultural differences between the U.S. and India.
The head of Coralius operations in eastern Europe is adamantly opposed to the global promotion proposal. She strongly opposes the VP’s movie-based promotion, saying it would not help her sales. She emphasizes how different eastern Europe is from the rest of the world. For her region, recruiting beauty queens like Miss Russia or Miss Ukraine to be brand ambassadors would do more for sales.
Global Versus Local
When she delivers the news to her CEO, the VP says she understands why she did not get complete buy-in from all three regional heads—they see their regions as unique. They dislike risking everything on a global promotion when they have been relying on local promotions for their success so far. However, she wonders why Coralius does business in a global marketplace if the company ignores the opportunities presented by globalization.
The CEO wants research to prove that a global brand-building strategy will save Coralius money. He points out that the global promotion will not be successful if the regional heads are only participating because she gives them no choice.
Learning Outcomes
This case study relates to the following learning outcomes from the module Marketing Products and Services in the course International Sales and Marketing:
- Develop a branding strategy and identity that promotes the organization’s promise to its customers and makes its products and services stand out from those of
- Promote the brand, products and services based on a strategy that incorporates effective tools and culturally appropriate messages to create awareness and demand in the target
- Develop an international sales and marketing plan to guide activities related to customer communications, branding, pricing, promotion of products and services, and
Case Study Questions
- What phenomenon of the global marketplace is the Coralius VP championing with her global brand-building strategy?
- What promotional initiative is the best option for Coralius?
- What are some of the disadvantages of a global brand-building strategy that the Coralius VP downplays?
- How can the VP convince her CEO and the opposing regional head that Coralius should push a global strategy?
