Strategic Management Report: L’Occitane En Provence

Strategic Management Report

Assessment Task 3

Executive summary

This report has been made in order to have a better understanding of L’Occitane en Provence Company. In 1976, Olivier Baussan created the company L’Occitane.

The company manufactures well-being and beauty products and markets them worldwide through a network of 950 shops. The first part of this report will be the overview of the company. This part will introduce the company, with the size of the company, the performance, the type of products sold and finally the different locations of the firm in the world.

The next part will provide the vision, mission, goals and objectives of the Occitane en Provence. Then the life cycle of the firm’s industry will be seen. The Political, Legal, Economic, Social, Cultural, Technological, Demographic data…of the company will be analysed to see if any changes in the macro environment of The Occitane will have an impact on competitiveness or not.

The Occitane en Provence’s competitors will be presented by a strategic group map, of the most relevant industry, like Body Shop.

The SWOT analysis will reveal if there are lot of barriers or not, that is to say if Occitane en Provence is in danger in front of possible competitors. As a contribution to the analysis, further strategic management framework will be provided for an in-depth competitiveness analysis.

Finally, recommendations will be made according to the strategy analysed, to know what L’Occitane should be doing to be more efficient on the market. Table of contents Executive summary2 Introduction4 Purpose, limitations, Scope5

I. Overview of the Occitane en Provence6

• 1. Who is the Occitane en provence6
• 2. Size of the company6
• 3.

  Performance8

• 4. Types of products9 * Packaging10
• 5. Location11

II. Firm’s vision, mission, goals and objectives12

• 1. Vision12
• 2. Mission12
• 3.

  Goals12

• 4. Objectives12

III. Stages of the life’s cycle industries13

IV. The Macro environmental analysis14

• 1. Sociaux cultural factors14
• 2. Demographics factors15
• 3.

  General economic condition16

• 4. Technological factors17
• 5. Political trends and legal issues17
• 6. Environmental factors18

V. Competitions18

• 1.

  Mains competitors18

• 2. Strategy group map20

VI. SWOT analysis and TOWS matrix21

• 1. SWOT analysis21
• 2. TOWS matrix22

VII.

Strategy management framework23

• 1. Five force’s model23

VIII. Recommendations24

Conclusion

List of references26

Introduction

Olivier Baussan, an environmental activist fascinated by Provence and its scents, created “l’Occitane”in 1976. Mr Baussan engages in the production of natural shampoos, bubble baths and essential oils. Year after year he declines and creates different products for the body, products which sublimate our body and make us feel free in our mind.

But also candles, perfumes… All of L’Occitane products are made in the respect of the environment, and with natural plants. In 1980, the first store opens at Volx, a small town in Haute-Provence, in France.

L’Occitane has built a plant in Manosque, which is still the only production site in the world. In 1996, to emphasize the origin of the brand, the term “en Provence” was added to the original name “L’Occitane” and an international network was developed. L’Occitane has almost doubled its industrial park abroad since 2005, and in 2007, the company boasted 950 shops. With its 950 shops scattered across the world, it is a bit of Provence that L’Occitane exports with its products, to the United States, China or even to Australia.

In each store, everything is made to recall the atmosphere of the Southern France farmhouse.

The brand now has nearly 500 references, and L’Occitane has 28 stores in Australia. . Purpose This paper has been authorized by Dr Jane Craig. The goal of this report is to create a report presenting an analysis of L’Occitane en Provence, a French company which has exported itself internationally.

The report will provide an analysis of L’Occitane en Provence in Australia. Limitations The only limitation of this report is the word count. Otherwise the document adopts therefore a report format; all the information will be on the entire company, and will be analysed.

Scope This document will be presented as a report, which includes a lot of information, like the overview of the company, the firm’s mission goals and objectives. The PESTEL analysis, which is a macro environment analysis, will be made, and will explain the competitiveness of the firm. A strategy group map will be made to present L’Occitane en Provence in front of its competitors.

The SWOT analysis and TOWS matrix will also be presented to identify the future strategies and the possible position that L’Occitane en Provence can claim will be explored.

Finally, recommendations regarding the strategy will end the report on L’Occitane en Provence. I. Overview of L’Occitane en Provence 1. Who is L’Occitane en Provence The story begins in Provence in 1976, when Olivier Baussan created L’OCCITANE. He takes a lead out of the land and of the know-how of the Mediterranean to create care and natural and authentic perfumes, effective and delicious.

L’Occitane is specialized in manufacturing and distributing high quality products for people and for the home, cosmetics and fragrances based on authentic ingredients.

An adept of responsible corporate citizenship, L’OCCITANE is involved in limiting the impact of its actions and its products on the environment. The company operate on the international natural cosmetic market which knows, since the last years, a surprising growth. However, the Occinate en Provence has succeeded in establish itself on this specific market thanks to an attractive image and a creative positioning. Indeed, the brand tries to promote an image in total respect with the Provencals traditions.

Thus, this “savoir faire” Made in France justified his huge development at on an international plan rather than on the national market.

Today the brand in constantly reminding its Provencal origins have reached the international market and engender a true passion for consumers. Size of the Company L’Occitane employs 2,300 people worldwide, including hundreds on the production site of Manosque. The firm has human resources with know-how in production, research and development, finance, logistics, marketing, communication and export. It has a policy of career development and of international mobility for its employees and willingly welcomes interns.

There is only one production site in Manosque, 50 km from Aix-en-Provence, France which has grown, to reach more than 20,000 sqm. The site includes various workshops: Quality Laboratories and Research ; Development, Manufacturing Workshop, Packaging tubes and jars, bottles Packaging, Candles, Soaps, packaging Stock, Stock Labels, Pole expeditions and a direct point of sales (Caritte, Lasalo and Pyatova 2008) The departments of the company are very well defined. They have been organized so as to cut perfect skills and areas of the entity to meet the objectives. The direction is separate like this: – Commercial / Export Marketing / Merchandising / Communication – Finance / Controlling / Accounting – Logistics / Purchasing – Quality – Maintenance / Business Services / Architecture (Chambaud L, Nouailles P and Roucourt A 2009). Network evolution in France| | 2005| 2006| 2007| 2009| Total in France| 96| 103| 113| 133| Dealership| 48| 57| 62| 68| Source: Occitane en Provence.

2010| Evolution of the shops numbers in the world. (Sources: Caritte, Lasalo and Pyatova 2008) Performance The turnover was 269 million Euros in 2006 with 80% foreign sales. Nowadays 85% of the brand sales are made at the international level.

The company is experiencing very strong growth (25-30% per year for 5 years) and develops quickly internationally, through subsidiaries and distributors (Caritte, Lasalo and Pyatova 2008). Evolution of sales in Euros (Sources: Caritte, Lasalo and Pyatova 2008) The sales record regularly increases by 30 %.

But unfortunately it is not constant. And the margins are not very important, with 5% in profits. It is wise to note that Clarins has a minor stake in L’Occitane. The Clarins Collaboration concerns the sharing of knowledge which is sizeable, and of course, the financial advantage that both parties can draw.

Types of products L’Occitane has many lines: – Care Shea – Immortelle – Harvesting Lavender – Honey Harvest – Harvest Verbena – Olive Harvest – Almond – Green Tea – Grape – Orange Ribbon The firm declines these lines in about 800 references of products and launches an average of 80 new products a year: – The fragrance: eau de toilette – The body and hand creams, oils, deodorants, lotions – Bath and shower creams, gels, oils, soaps, foams – Facial creams, masks, scrubs, lotions, balms – Hair Care: shampoos, treatments, shampoos after – For Men: gels, balms, deodorants, creams – For home perfumes, candles, incense

L’Occitane products enjoy AOC labels, which are a guarantee of quality and traceability in production, and reassure French consumers, which means that products are certified to be of organic origin. Unfortunately, concerning export, it means nothing to the other countries that have different benchmarks.

We are witnessing the establishment of fair trade with Burkina Faso, which is its leading supplier of Shea. Some products have been referenced in 2007 on the green list of Greenpeace (COSMETOX Guide) that is to say products which do not contain chemicals or toxic substances harmful to the human body.

In addition, the company has developed a unique range of products that are regularly renewed. * The Packaging The packaging of products extends the philosophy developed by the brand. L’Occitane is involved in limiting overpacking, and using recycled materials, from sustainably managed forests. The packaging is sober and traditional.

L’Occitane has also established an action program for the blind; therefore there is a translation of the brand name and the product name into Braille on the product Location * The setting up of stores is made in cities with more than 45,000 inhabitants.

L’Occitane en Provence owns 950 franchised shops in 85 countries, including 107 in France. L’Occitane now has 28 stores in Australia, and has opened two other stores of a new type. The first is located in the centre of Melbourne and the second at Sydney Airport. L’Occitane, since the launch of its franchises in Australia in the early 2000s, has grown rapidly on the Australian market * L’Occitane has opted for different modes of distributions. There is B to B distribution with hotels and airlines and through resellers like pharmacies, perfumery, and decoration stores.

But of course, its main operational functioning is the concession with exclusive distribution. It is present in downtown and shopping centres and has a defined area of exclusivity. Since recently, buying online (in partnership with a postal agency for delivery) has now become possible for customers wishing to order via Internet. It is also possible to purchase Occitane products by phone (Chambaud L, Nouailles P and Roucourt A 2009). Occitane en Provence in 2007 Number of shops by area (Sources: Caritte, Lasalo and Pyatova 2008)

II.

Firm’s vision, mission, goals and objectives

1. Vision

The company’s vision is to bring total well-being to consumers through products and stores which enhance the values of authenticity, simplicity, sensory pleasure and respect for people and the planet (see annexe…). The company is in constant search for innovative ways to bring the vibrant Provencal world to customers’ life and the benefits of their natural resources to magnify people. They are true stories behind every L’Occitane products which allow consumers to follow the origin of an ingredient, a scent or more simply a discovery. A way to learn more about Provencal tradition. That is why L’Occitane en Provence’s slogan is : « L’occitane, A true story ».

2. Mission

L’Occitane en Provence’s mission is to offer true moments of well-being and sensory delight to their consumers by bringing together tradition, nature and research, in total respect of the environment.

3. Objectives

• To become the leader, in France as well as in foreign countries, on the cosmetics market and natural products by putting ahead their Provencal roots.
• To develop itself internationally.
• To boost the number of stores in its original country as well as at the international level (franchise).

To bring, by constant innovation, the Provencal tradition in using all the natural resources and the culture of the Mediterranean Thus, it appears that the strategy used is essentially a growing strategy trough a will to internationalise the company, based on the differentiation of their products thanks to a positioning that resorts to the Provencal tradition.

III. Stage of life cycle of the firm’s industry

Every industry experiences different stages, as they grow throughout time. These stages, also called life cycle, are the same for every industry.

There are different stages to a firm’s industrial life cycle, beginning with an introduction stage, then a period of growth which leads to maturity and finally heads toward decline. Industries can be at a different life cycle stage, depending on their activity rate.

This fact is also true when it concerns firms. Indeed, within the same industry, firms can be at different life cycle stages (Hitt, Ireland, Hoskisson 2001). L’Occitane en Provence operates in the cosmetic industry but it is important to notice that the company is more specialized in providing natural cosmetics. Nowadays, this industry is in an indisputable period of growth.

Indeed, as the world is becoming aware of the environmental issue that some association tried to emphasize, consumers are more and more demanding of ethical products. Consumers start to feel that they have the responsibility to respect and protect our planet to provide a more sustainable future to the next generation.

Thus, the ethical consumption slowly but certainly enters societies, which forces companies to produce with conscientiousness. In addition, recent studies coming out from very reliable research centers put ahead the fact that some products contain dangerous ingredients with can induce cancer risks.

All these factors had caused mistrust from consumers who now prefer to consume ethical and reliable products. Thus, the opportunities of the company are rather large concerning natural cosmetics in high growth. Source: Ravi Saraswathi, Strategy analysis, 2009

IV. The macro environment

The macro environment of a company allows to have a better understanding of the relevant factors and influences that concern it, such as legislation, regulation, demographics, societal values and lifestyles, technology and to finish general economic conditions (Thompson Jr.

Strickland III & Gamble 2007). That is why, L’Occitane en Provence Company needs to deeply analyze several macro environmental factors to understand perfectly the Australian market, a new market which could be truly different from France.

1. Socio-Cultural Factors

Analyzing the socio-cultural factors is an important way to understand the influences on consumer behavior when launching a product on an international market (Kotler 1997). When approaching the socio-cultural factor, it seems interesting to keep in mind the definition of culture.

For Foscht, a culture is a combination of religion, language, values and standards which can influence people’s perception (Foscht et. al 2008). Several socio-cultural factors are real opportunities for the company: A recent study has shown that 69% of Australians admit that the pressure to looking good is more important than ever with 33% declaring that they constantly try to look fashionable at all times. This fact is also right for men as 80% of Australian customers agree that men are nowadays more and more attracted by personal grooming (Euromonitor, 2007).

Today, the Australian cosmetic market in becoming very competitive and a large number of brands are now present on the market of the 21,8 million consumers.

However and this is good news for the Provencal Company, the interest for French products is still constant thanks to the image of quality that this origin adds to products. The demand is quite oriented toward multi-beneficial products with a good quality/ price ratio which contain natural ingredients. The market of men care is developing and natural cosmetics with anti-ageing effects meets a huge success with baby-boomers.

Above all, the Australians are truly demanding with product conditioning which is becoming an essential purchase criterion. From now on, to attract Australian consumers, a product must be attractive, creative while totally in respect with environmental matters (Terrasa L, 2008).

In addition, there is another fact linked to the boost of sales in the cosmetic industry in Australia: the communication campaign from the government to push people to protect themselves from the sun. As a result, consumers are more attracted than before to self-tanning products, sun protection and after sun care.

On a more cultural level there are several facts that the French company should know about Australians. Compared to the French, Australians are rather informal in their work relations and it might be surprising that everybody call one another with their surnames. The working clothes could be more relaxed than in France.

Above all, the working hours are strict and it is very impolite to run a meeting late or simply to be late (Terrasa L).

2. Demographics

The Australian Demography in figures: 0 to 14 years old: 18, 6% 15 to 64 years old: 67, 9% 65 years old and more: 13, 5% Average age: 37, 3 years old Population growth: +1, 9% in 2008 Ubifrance, 2007) According to studies, women are still very attached to completing their daily care, even with the recent financial crisis. Thus, 70% of Australian consumers questioned spend almost AU$19 per month in skin care products. Young women between 20 and 30 years old allocate the highest budget when consuming these products. On the contrary, it appears that the expense goes down to AU$16 per month for women 50 years old and more.

Moreover, Australia having an ageing population as well as a rather harsh climate, skin care products are truly in demand, with a preference for anti-ageing products.

A motivating fact for L’Occitane en Provence, who has developed a specific range of products to fight age signs (Ubifrance, 2009 & Euromonitor, 2008).

3. General Economic

Conditions Set up a general economic condition of a market economic environment help in establishing and estimating the market potential (Czinkota et. al 2008).

Different market characteristics need to be taking into account when establishing the economic environment. First the population which will indicate the potential demands within the country, then the income which will provide an idea of the purchasing power and to finish, the consumption patterns (Czinkota et. l 2008). Population: 21, 6 million (in 2008) With a GDP of 679 billion of Euro, Australia is placed at the 14 worldwide rows. The unemployment rate has lightly increased with the crisis but stay rather low: 5, 3%. This means that Australia as Indeed, despites the recent worldwide crisis, Australian still continues to spent money for they physic appearance.

Studies have shown that already in 2007, Australian consumers were ready to spent $ 9. 4 billion on personal care. A significant growth compares to 1995 when inhabitant devoted only around $6. 3 billion to personal care that is to say an increase of 49. 1%.

In 2008, the cosmetic market in Australia proceeds with its growth at a rate of 3, 4%.

The market size is estimated at 3, 1 billion of Euros with growth perspective of 0, 3% per year and for the 2008-2013 periods. More recently and to confront the slowdown of the global economy, the Australian government has established a relaunch plan of a global amount upper than 4% of the GDP. Thus, the consumption has been maintained thanks to financier help to households (Ubifrance, 2009 & Euromonitor, 2007).

Table 1: Consumer Expenditure on Personal Care: 1995/2000/2002/2004/2006/2007 $ million| 1995| 2000| 2002| 2004| 2006| 2007| Total| 6,310. | 7,384.

3| 7,775. 5| 8,522. 2| 8,916. 2| 9,409. 0| Source: National statistical offices, OECD, Eurostat, Euromonitor International Table 2: expenditure on Personal Care (% Analysis and % Growth): 1995-2007/2000-2007 % analysis/% growth| 1995-2007| 2000-2007| Total| 49. 1| 27.

4|

Source: National statistical offices, OECD, Eurostat, Euromonitor International

4. Technological Factors

The competitiveness and the Effectiveness of a company may be affected by technological factors as new technologies have undeniable repercussions on companies’ management, their communication and their production (Hill, Jones, Galvin & Haidar 2007).

In addition it is a way to emerge easily within foreign markets (Czinkota et. al 2008). Concerning technological factors, because the company creates their product in France and use the French technology, there is no real aspect to rise. Nevertheless, as a consequence of the evolution of the consumer’s behavior concerning the harmlessness of cosmetic products, the laboratories of different cosmetic products are boosting their investments in research (paraben-free products, research on new natural molecules, use of the traditional materia medica ).

5. Political trends and Legal issues

Understanding political and legal influence when entering a market is essential as taxation laws, deregulation, legislation, environment laws, employment and government policy can drastically affect companies’ operations and strategies. Indeed, the political climate can have a positive or a negative influence on corporate spending (Hill et al 2007). Before analyzing the political trends and legal issues maybe it is interesting to remind that since the Free Trade Agreement with United States, the cosmetic imports in Australia have declined from 5% to 0%. The access to Australian market is relatively easy for the French cosmetic.

However, exporting countries have to be confronted to many legal issues that they has to be aware of before planning any settlement: In Australia, it is essential to know that all cosmetics shipped are subjected to the GST (Goods and Services Tax), a 10% tax on the sale or provision of most goods and services. Unfortunately even if this tax is paid to the Australian Customs Service by the producer, it is the consumers who have to bear the cost as there is an inevitable repercussion on the product prices. On the other hand, Australia has to face quite drastic regulatory requirement when importing cosmetics in the country.

Indeed, sometimes this kind of products has to get through the Therapeutic Goods Administration (TGA) in order to be checked and therefore to ensure that the claim made is really therapeutic or cosmetic. Then, the ingredient safety is checked by the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) who decide and approve of the use of some substances and ingredients in some cosmetic products.

So there are still some difficulties that exporters may face when trying to reach the Australian market (Euromonitor, 2007).

Nevertheless, a convention has been signed between France and Australia to avoid double taxation (1June 2009).

6. Environmental Factors

L’Occitane en Provence cultivates an indisputable environmentally-aware image which attracts more and more Australians in strong demand of natural products. Furthermore, every product of L’Occitane en Provence is completely traceable, which allows consumers to know more about the ingredients used. Thus the company proves that all ingredients are taken from the Provence region according to Provence tradition.

The quality of the product is, in this way, guaranteed to consumers who feel that they can trust the company and the way products are manufactured

V. Competition

1. Main competitors L’Occitane en Provence, as all brands of cosmetics, is faced with the permanent changes of this market that attracts new businesses. This industry is composed of multinational firms in which we find Unilever, Proctor ; Gamble, L’Oreal, The Body Shop, Decleor and some mainly domestic like Jurlique, The natural source, The Ward Group, Cat Media, Laderma, Lifeforce Pty Ltd, Becca, Bloom, Napoleon Perdis, Aesop..

.

Similarities between L’Occitane en Provence and its main competitors: Occitane en Provence| The Body Shop| Decleor| Jurlique| * Founded in 1976 * Authenticity, sensory, protection of the environment, Trade and sustainable development * Upscale positioning * Natural products * International attendance * Spa opening| * Founded in 1976 * Self_esteem, protection of the environment, fair trade, human rights. Natural products * International attendance (2,000 shops in 54 countries in 2006)| * Founded in 1974 * There is a historic to this company * Protection of the environment (packaging comes from the forest which is sustainably managed) * Humanitarian action * Spa * Upscale positioning * Natural products, aromatherapy expert * International attendance (34 country)|

* Founded in 1985 * National company * Australian Products * Spa and shops * “nature, science, innovation” positioning * biodynamic, organic and natural ingredients * | Sources: Decleor. com Bodyshop. om Jurlique. com.

au Thus, many brands are on the same segment as L’Occitane en Provence. However, despite these similarities, L’Occitane is the only brand which associates its name and its products to the benefits of a particular region: Provence. It is also the only one to offer products focused on a Mediterranean tradition, with Provencal ingredients, except for the Shea butter which comes from Africa. L’Occitane en Provence has invested a highly competitive market with local products, a Provencal tradition with a head office in Manosque, through a dream that the mark will create in the consumer.

The marketing strategy is implemented by emphasizing the differences, brand values, and projecting it on products, prices, and the distribution network and communication campaigns.

2. Strategic Group Map To have a better visualization of its relation to its competitors, the strategic group map will be drawn to facilitate understanding. Occitane en Provence Products Prices Body Shop Decleor Jurlique

VI. SWOT analysis and TOWS matrix

1. SWOT analysis

The Occitane en ProvenceSWOT ANALYSIS|

Internal Operational Analysis| Strengths * The Provence image and French products * Large range of products with 15 referenced in the Greenpeace rapport cosmetox 2007) * The constant innovation within the product ranges * Exotic products and innovative compositions * Expert in natural cosmetics * Respect of the environment * No animal-testing * Respect of consumers, employees and retailers * Work with local producers * Creative packaging and stores * Attractive website| Weaknesses * Rather medium structure and importance compared to the huge companies in this sector (constant takeover threat) * L’Occitane concept leads to constant product innovations and obvious investments. Smaller notoriety than some big competitors * Quite high-priced products which are not accessible to everybody * Are not set up in every town| External Operational Analysis| Opportunities * Natural and organic products attract still more consumers, above all French products * People are becoming truly aware of environmental matters and feel concerned to provide a more sustainable world to the next generation * Australians are more and more focused on physical appearance and don’t hesitate to consume cosmetic products.

* Development of e-commerce| Threats * Recent crisis which can lead to the decrease of the demand (Economic slowdown) * Strong competition with a constant threat of takeover * Strong legislation, fusion between L’Oreal and Body Shop * Emergence of new competitors|

3. TOWS Matrix

This analysis is very useful, as by matching the external threats and opportunities with the internal weaknesses and strengths, it enables the company to have a better understanding of the benefit raised by the opportunities and the way to minimize threats with its strengths. This conceptual framework also provides information to exploit the opportunities of the company by minimizing its weaknesses and its threats. The Occitane en ProvenceTOWS Matrix| | External Opportunities| External Threats| Internal Strengths| With the large range of products that L’Occitane en Provence offers to Australian consumers ever ready to spend a good part of their budget on the cosmetic market, the company could impose itself in Australia and become leader in the natural cosmetic segment.

In addition, the company could attract new consumers by taking advantage of the new Internet technology, and by showing its creativeness and ensuring their position on the market| L’Occitane en Provence should still constantly innovate by developing products which enhance their specificity, that is to say its Provencal roots.

. | Internal Weaknesses| L’Occitane en Provence should still show that it uses different communication media to its strategic advantage by enhancing the natural ways while respecting the environment when developing their product. To justify the high price it will be interesting to remind consumers the rare products that the company tries to compile in order to sublimate people’s looks. The company should sill continue to innovate and to propose new products. By this way, L’occitane en Provence adapt itself to the demand and respond to consumers expectancies quickly to confront potential new competition within small companies which propose less expensive prices. |

VII.

Strategic management Framework

1. Porter’s five forces model Porter’s Five Forces framework helps a firm to ‘analyze its industry as a whole and predict the industry’s evolution, to understand its competitors and its own position, and to translate this analysis into a competitive strategy for a particular business’ (Smith, R. L. Round, DK 1 Trindade, R 2007, p. 638).

Porter’s five forces| Occitane en Provence|

Rivalry| There are not a lot of competitors because L’Occitane en Provence is the only shop to offer its customers natural products which associate its name and its products to a Region of France. | Supplier power| There is only one production site in the world. It is in France. | Buying power| Australian customers are very demanding of this kind of products. People are taking more and more care of themselves.

They are ready to pay the price of it. | Barriers to entry| L’Occitane is already established in Australia. L’Occitane offers an upscale range of products. Competitors won’t be able to provide the same kind of products at a lower price, which means that there are no competitors able to enter as new competitors on the market. Threats of substitutes|

There is no threat of substitutes because L’Occitane is the only shop to provide French scents. | The table shows that L’Occitane has some competitors, but they are not a real threat as concerns the products, and the spirit that L’Occitane en Provence provides in its shops.

VIII. Recommendations

L’Occitane must keep its leadership in Research and Development if it wants to limit copies and counterfeits from the Chinese market and overcome the competition. It is its competitive advantage and L’Occitane must keep it. The firm could invent new products based on Australian raw materials and develop its range of products so that L’Occitane can have a more personalized offer.

Moreover, L’Occitane must communicate in front of giant cosmetics manufacturers to avoid the threat they potentially represent.

And L’Occitane should communicate more, to make its company and its positioning better known on this market. * Strategy to apply * Innovation strategy Strategy mainly based on Research and Development, by finding other innovative products which better meet specific market needs as we have seen just before and that will advance the technology of L’Occitane. * Differentiation strategy Upscale positioning and luxury with “Made in France” quality: all products from L’Occitane are authentic and packaged in a way that positions the product as a premium. Communication strategy Establish an effective communication strategy that will enable it to maintain its competitiveness in front of the mass communication of major groups. Conclusion To conclude, based on the information developed all along this report, it appears that this market is very competitive, but that L’Occitane en Provence is different in front of competitors, with the image it provides to consumers.

Indeed, the positioning of the brand promotes the image of Provencal traditions, with a “Made in France” how-know which explains its growth overseas. L’Occitane is an essential corporation; in reality 80% of its sales are realized overseas.

Indeed, Australian people allocate a higher budget to purchase these types of products. But the organic market is a new market to reach: can L’Occitane keep its originality and stay the Shop that provides Provence to Australia?

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Czinkota, M.

Ronkainen, I. , Sutton-Brady, C & Beal, T 2008, International Marketing: Asia Pacific Edition, Thompson, Melbourne. Decleor, 2010, website, www. decleor. com, viewed the 15 August 2010.

Euromonitor, 2007, Consumer lifestyle-Australia report, Australia Herndon R,S , VA, 2009, Strategy Analysis, United States Hill, C.

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& Haidar, A. 2007, Strategic Management – An Integrated Approach, 2nd Australasian Edition, John Wiley & Sons, Milton. Hitt, Michael A. , R. Duane Ireland, and Robert E.

Hoskisson.

Strategic Management: Competitiveness and Globalization. 4th ed. Cincinnati, Ohio: South-Western College Publishing, 2001. Jurlique, 2010; website, www. jurlique.

com. au, viewed the 14 August 2010. Kotler, P 1997, Marketing Management: analysis, planning, implementation, and control, 9th edn, Prentice Hall, New Jersey. Occitane en PRovence, 2010, website, www. occitaneenprovence. com.

au, viewed the 15 August 2010.

Smith, RL, Round, DK & Trindade, R 2007, ‘Integrating strategic behaviour into competition analysis’, Antitrust Bulletin. Strategie, 2010, website, http://www. strategies. fr, viewed the 10 August 2010 Terrasa L, 2008, mission economique Ubifrance, Le marche des parfums et cosmetiques en Australie, Sydney, Australia Ubifrance, 2009, Focus export pays, Sydney, Australia