Dr. Eris: Cosmetics from Poland
- Situation analysis
- Problem definition
- Analysis and Evaluation of Options
- Merger & Acquisition
- Domestic market preference
- Protection of the research
- Communication and brand name image
- Opportunity of doing nothing
- Other information that should be obtained
- Recommended courses of action
The story of the Dr. Eris brand started in 1982, when this Ph.D from the Faculty of Pharmacology at Berlin University inherited. With the money she received, she began creating nourishing facial cream with the most simple machines we can imagine. She began in the business only with her husband. At that time they produced only 3 000 packages per month.
After many development plans, the company registered more sales and more profit. Now, Dr. Eris is a bigger company. It employs 350 persons. The production is not only based on facial cream anymore. Dr. Eris proposes a range of 300 products divided into several brands. They are implemented in four different segments: economic products for mass consumption, premium products, dermocosmetics and professional cosmetics. The segment where the company makes the main part of its business is the premium cosmetics. Moreover, the company exports in 40 different countries where the products are sold in supermarket, pharmacies, beauty shops and beauty salons.
Acquiring a premium quality image including high respect for people was not that easy. The company had first of all invested huge amount in research and development. They set up a Center of Science and Research in 2001 where a large team of specialists works permanently to develop ?scientifically advanced products?. This is the core business of the company as long as the main target of the company is: ?people who are interested in scientifically created cosmetics?.
The quality standards are well respected by this company as long as they are certified ISO 9001 (which represents the global quality) and ISO 14001 (which represents the environmental aspect).
The quality of the brand of Dr. Irena Eris is undeniable. She was named Business Woman of the Decade (2003), listed as an influent woman in Poland (2004). She received Economic Award from the President of Poland (2005), she was nominated to the 2005 Beauty award for the best cosmetic introduced in Great Britain and won the British Gold Glamour. All those awards give the brand a high premium quality image all around the globe.
[...] She received Economic Award from the President of Poland (2005), she was nominated to the 2005 Beauty award for the best cosmetic introduced in Great Britain and won the British Gold Glamour. All those awards give the brand a high premium quality image all around the globe. - Problem Definition - The main issue for domestic cosmetic manufacturers in Poland is the competition with the big global players, who reached the market. All international cosmetic companies are nowadays participants in the market, a result of the opening process which started in 1988. [...]
[...] This shows the result of placing the products of Dr. Irena Eris in the retailer chain Boots in Great Britain. The installation of the products in the catalogue of goods was quite successful. This and other efforts in the international markets led to a 40% increase of exports. Nowadays a producer often has to buy the place in shelves of a retailer. That brings the risk of high costs and low sells, for instance because of low acceptance of the foreign product. [...]
[...] Another advantage for the Dr. Irena Eris would be that it will get market expertise. Through a franchise strategy a company can solve the problem of too less export experience. With a domestic franchisee the danger of cultural problems and wrong placed advertisement normally decreases and the bigger knowledge of the certain country makes following activities easier. With a network of franchise operations over Europe the management of Dr. Irena Eris would also get an impression of different market potential for its products, so the danger of costly unsuccessful market entries could be reduced. [...]