The world’s largest certified B Corp company and Brazil’s number one cosmetics brand “Natura & Co” has year’s long history of its cosmetics and beauty products and marketing strategy.
Founded back in 1969 and headquartered in São Paulo, the company is the world’s 5th largest direct sales (MLM) company. Till 2010, the company generated $2.9 billion, and by 2018, it has $10.9 billion in revenue. The company is mostly known for its eco-friendly and sustainable products. It currently operates with the help of 1.8 million consultants and has hired nearly 40,000 employees.
The Brand and its Products:
- Natura is a proud manufacturer of cosmetics and personal care products with multiple sub-brands, such as Ekos, Chronos, Crer Para Ver, Kaiak, Lumina, Mamãe e Bebê and Homem.
- It delivers more than 2000 products in more than 3,200 stores across the globe.
- Their products are 100% vegan, eco-friendly and carbon-neutral. Most of its products are manufactured using Amazon’s Biodiversity and have safe ingredients.
- Categories served by the brand are – Bath & Body, Hair care, Skin care, Face care, Fragrance and accessories.
- Natura has always been against animal testing, and its products are 100% free from animal materials and ingredients.
- Products are delivered using eco-friendly packaging leading to no carbon footprints.
Natura’s Marketing Strategy: Natura review
- Direct sales business model – Natura started with door-to-door service and still follows the direct sales business model. In 2012, Natura trained 250,000 entrepreneurs in Mexico which increased the productivity and revenue of almost 25,000 women entrepreneurs.
- Relationship Strategy: With the help of more than 26 delivery partners, Natura delivers finished products to the sales representative’s home within almost one day. Most of these sales representatives are autonomous and well-trained female salespersons and housewives. It believes its sales representatives as “Soul of the company”. The representatives multiply incomes and expand their business opportunities by sharing sustainability messages and by educating other interested members.
- Commission on end sales: Natura doesn’t pay direct salary to its sales representatives or consultants; instead, it pays 30% commission on the direct sales made by the representatives. This way, not only Natura makes a profit but also its representatives. Because of this no direct pay strategy, the representatives are charged up for making a sale and dedicated to create a positive image of the products and good relationship with the customers.
Natura’s Business Strategy: Natura review
Natura’s believes and implements a multi-level direct sales model in its product marketing. Its sales representatives play a dual role and most often perform as micro-entrepreneurs. They use the product and at the same time, also sell and promote the products. 1.6 million consultants in France and Latin America are enough to make Natura’s products successful.
Natura has established itself as an eco-friendly and a sustainable company, and its success can be contributed to the below-mentioned key factors:
- Quality of Products: Extracting ingredients from local biodiversity allows the company to keep a check on the quality of the products.
- Hiring financially weak sections: Most of its sales representatives belong to the bottom of society. These representatives join the company to promote and sell their products by building a relationship with the customers, which encourages Sustainable Network Relations.
- Sustainable Ingredients: Training the communities and providing agricultural inputs to those who produce them, ensure sustainably extracted ingredients
- Multi-level direct sales model: In the mono-level approach, most representatives were more consumers than salespeople. Hence, Natura transformed its business structure into a multi-level direct sales model. Sales representatives became individual micro-entrepreneurs and recruited other distributors. These representatives and distributors fetch product ingredients to perform product distribution.
- Investment in training programmes: Well-trained representatives work towards increasing brand awareness and positive opinion for Natura products.
- Acquisition of Competitors: There are nearly 45 company-owned stores, but since Natura has acquired UK’s The Body Shop and Australia’s Aesop, it has got access to 3,200 stores across different countries for its product placement. The company is currently in a deal with Avon Products, Inc. for the acquisition, which would add further values to its brand, its marketing strategies and also in reducing competition in the market.
Impact of Natura’s Business Strategies: Natura review
Natura’s direct sales network creates high responsiveness and customer service, which, in return, ensure maximum customer attention and loyalty. The company supports the local community by empowering them to become entrepreneurs gives them social status and the reason to work harder to achieve sales and distribution goals. This network leads to a 60% market penetration in Brazil as compared to its competitors.
Recently, the company has shown interest in a lot of digital marketing activities, and it currently receives almost 99% of the transactions through digital mediums. No doubt the company is in the market for an overall growth by contributing to society and it has got awesome brains working together to establish a positive brand image in the customer’s mind. Natura is a perfect example of how a business, nature and society can get benefitted without interrupting each other’s role.