Foreign Market Analysis
Should enter France?
Master thesis within International Marketing
Authors: Jarne, Marion
Tutor: Anderson, Helen
Jönköping June 2006
INT E RNA T I ONE L LA HAND E L S HÖ G S KOLAN
HÖGSKOLAN I JÖNKÖPING
Bör gå in i Frankrike?
Magisteruppsats inom internationell marknadsföring
Författare: Jarne, Marion
Handläggare: Anderson, Helen
Jönköping Juni 2006
The work of this thesis could not have been possible without the help of certain people. We would especially like to thank Jonas Hedberg, the regional director of Oriflame Western Europe, for giving us great support and advice in our research. We would like to thank Oriflame in general for providing us with material support in order for us to conduct our empirical research.
We would like to thank our tutor, Professor Helén Andersson, for giving us good advice on how to conduct the study in a scientific way.
We would also like to thank the following people for contributing to the thesis in different ways:
Anna Sundell, regional director of Oriflame Småland, Sweden Francine Schoreisz, communication and training manager in the French Association of Direct Selling.
Inger Karlsson, regional manager of Oriflame Jönköping, Sweden Jack Goelst, former regional director of Oriflame Holland.
Jenny Ehle, marketing manager of Oriflame Sweden
Jesper Martinsson, COO of Oriflame
Master Thesis in International Marketing
Title: Foreign Market Analysis – A 5 Cs Approach
Author: Jarne, Marion
Tutor: Anderson, Helén
Date: June, 2006
Subject terms: Foreign Market Analysis, Foreign Market Selection, International Marketing, 5 Cs, Oriflame, Direct Sales, French Market of Direct Sales
The global marketplace today encompasses 6 billion people. Many companies are beginning to see themselves as international rather than national acting on a global arena. An essential aspect of going abroad is to know where to go and why to go there. In order to be able to analyze a foreign market a company needs to do market research in the foreign market as to gather essential information. A firm which is facing a quick internationalization process is the Swedish direct sales firm of cosmetics Oriflame. Oriflame has grown quickly in developing countries but is not present in one of the biggest market for direct sales in Europe: France.
The purpose of this thesis is to develop a theoretical framework to analyze foreign markets and apply it to the French market of direct sales in cosmetics and Oriflame. Method
A qualitative study based on the 5 Cs framework for analyzing foreign markets has been carried out. Seven focus groups have been conducted in France and Sweden in order to obtain information about and comparability in consumer attitudes towards Oriflame’s marketing mix. Interviews have been conducted in order to get information about Oriflame as a company. Secondary data has been gathered from different sources for the theoretical framework as well as for the empirical research on issues such as culture, competition and market.
This thesis has developed a theoretical framework to analyze foreign markets called the 5 Cs. The 5 Cs are based on: Company, Constitution, Competition, Customers and Culture. The 5 Cs is a very general framework and can be applied to a wide range of foreign markets and firms and was in this case applied to analyze a real world case of Oriflame and France. The analysis of the empirical findings found that there is potential for Oriflame to enter the French market in terms of consumer preferences and general market characteristics. However, it also found that what will probably determine everything in the end is whether Oriflame can be strategically committed to enter a mature West European market like France.