International Dimensions of Marketing: London Skin & Tonic

Skin & Tonic (hereinafter alternatively the company) has enjoyed sustained growth over its comparatively short but eventful 7-year history. This success has been attributable in large part to the vision of its founders for the future of the company as well as their marketing strategies which are intended to help them achieve these outcomes. The fact that the company has managed to sustain its 100% year-to-year growth in spite of the ongoing Covid-19 pandemic and a corresponding global economic downturn underscores the effectiveness of these marketing strategies in Skin & Tonics domestic target market. In order to continue its sustained growth, the companys top leadership is assessing the opportunity for expanding into an overseas market. The purpose of this business report is to provide an overview of the company and its products which are most suitable for overseas expansion into the Asia Pacific region in general and Australia in particular, as well as an analysis of the most important factors that support this decision. In addition, a profile of a typical consumer in the Australian market, including segmentation and cultural differences, which influence consumer behavior is followed by a critical analysis of the market entry strategy recommended to enter the Australian market today. Finally, a discussion justifying which elements of the marketing mix should be adapted or standardized for the Australian market is followed by a summary of the research and important findings concerning this business report in the conclusion.

Company Overview (Task 1)

Founded in 2015 and headquartered in London, the company is a small but rapidly growing enterprise that is described by its founders, Sarah Hancock and her partner, Josh, as an ethical skincare brand (as cited in Hoggard, 2021, p. 52). Further, the ethical reference is valid since the company manufactures all of its own products in the UK, using cruelty-free and certified organic ingredients. Moreover, Skin & Tonic packages all of their products in recyclable materials and even plants a tree for every order (About Skin & Tonic, 2022). The company flagship product, Calm Balm, was an instant success and remains its best-selling product today. In fact, even after being forced to switch to an all-online marketing format during the height of the Covid-19 pandemic, the company still sold more than 70,000 units of Calm Balm and made a substantial contribution to National Health Service workers as a result (Hoggard, 2021).

The companys sustained success can be attributed to its high-quality products, its ethical business model as well as its savvy use of highly cost-effective marketing tools. For example, Skin & Tonic has received a number of celebrity endorsements, been featured in major beauty and fashion magazines such as Vogue and enjoyed center-stage placement in retailers such as Whole Foods, Urban Outfitters and Anthropologie (Hoggard, 2021). Although the company already competes in 20 global markets, its top leadership team believes that it is ready for expansion into new foreign markets. Based on the companys business model and culture, it is recommended that Australia should be selected for its next overseas venture as discussed further below.

Analysis of most important factors (Task 2)

Australia shares a common heritage, values, language and culture as the UK. Beyond its status as being the worlds largest island nation, Australia is unique in some other important ways as well that have important implications for the companys potential expansion into this market. First and foremost, Australia was founded by the British in 1901 as a as a self-governing commonwealth of the British Empire, albeit under suboptimal conditions, and these two nations have shared a...

Taken together, it is clear that Skin & Tonics business model and product line favor a standardization approach to its marketing mix for entering the Australian market and developing and sustaining a competitive advantage in the future based on both countries cultural congruence and mutual trade advantages.

Conclusion

The research was consistent in showing that skin care products are in greater demand than ever today, and organic products in particular are experiencing rapid increases in global sales. In addition, the research also showed that London-based Skin & Tonic is well situated to take advantage of these trends by virtue of its line of high-quality, organic skin care products. The companys sustained year-to-year growth is proof-positive that growing numbers of consumers around the world are eager to purchase these types of products, especially in Australia, making this country especially well-suited for the companys further expansion plans abroad. The high degree of cultural congruence between the UK and Australia as well as the similarities in their target markets also support this selection. Finally, a direct export entry strategy using a standarized marketing mix was also shown to represent the best avenue forward for Skin &Tonics expansion into the Australia market.

Academic References

Abelson, P. (2019). Teaching Public Economics with Special Reference to Australian and US Cultures. Australian Economic Review, 52(3), 279293.

Bennett, J. (2020). Reorienting the Post-Coronavirus Economy for Ecological Sustainability. Journal of Australian Political Economy, 85, 212218.

Dinu, A.-M. (2018). International Market Entry Strategies. Academic Journal of Economic Studies, 4(2), 2025.

Gopalkrishnan, N. (2019). Cultural Competence and Beyond: Working Across Cultures in Culturally Dynamic Partnerships. The International Journal of Community and Social Development 1(1) 2841.

Tam, J., Sharma, P., & Kim, N. (2014). Examining the role of attribution and intercultural competence…