EXPANDING COSMETIC BUSINESS IN MEXICO. A BUSINESS PROPOSAL FOR THE COSMETIC COMPANY TO ENTER THE MEXICAN MARKET

A BUSINESS PROPOSAL FOR THE COSMETIC COMPANY TO ENTER THE MEXICAN MARKET
Case company: XYZ Cosmetics
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Introduction
Domestic market success and increasing profit margin are some of the driving factors behind XYZ Cosmetics Company's quest to venture into the international market. The company is looking to expand its coverage and growth in new and emergent markets which offer new opportunities for marketing products at low cost. The high demand for cosmetic products in the Mexican market, the growing friendly business environment and the low labor cost that Mexico offers. To successfully enter the new market, it is imperative that the company acquire insights into the Mexican market through thorough research and collection of information about the market.
Information pertaining country profile, language, economy, diversity, infrastructure, banking sector and access to credit, local culture, local business environment, legal issues, the judicial system, legal action procedures among other are critical information. Another important analysis is the country risk analysis which takes the form of economic, social and political analysis of the country. It is, therefore, imperative for XYZ cosmetic company to familiarize itself with target market environment. Failure to familiarize with the target market, culture, customer needs, business culture and completion might lead to a poor strategy which will result in losses in the long term. The purpose of this proposal is to examine the Mexican market and provide an in-depth and informed analysis that will form the basis of XYZ Company's entry into the market.
Company profile
XYZ is a cosmetics company founded in the United States in the year 2000. The founder Mark Taiwan is also the current chairperson of the board. The company specializes in manufacture and distribution of cosmetics products to middle range consumers in the American industry. The company holds 20 % domestic share and is looking up to the international market for growth.
Vision: to be a leading producer of safe and quality cosmetics products that resonates with the both the current and future generation of consumers. Mission: to be competitive, and offer safe products while using environmentally friendly production mechanic to ensure sustainability for production. Values: Professionalism, customer first, innovation, safety, social responsibility and leadership.
Country presentation
This section analyses the overall factors that may influence business in Mexico. From infrastructures, local cultures, legal issues to consider, economic outlook, diversity, and banking sector.
Mexico is twelfth in the world regarding size and occupies an area of 760 square miles, in the southern part of North America. Its geographical features are a mixture of tropical lowland, jungle high alpine vegetation, swamp, and desert. More than half the Mexican territory is 3,300 ft. in altitude. The political and economic block of the country is found in the southern part which stands at a latitude of about 7,500 feet making it one of the highest cities in the world. The average mean temperature of the city metropolitan is seventeen degree Celsius with an occasional low of up to zero degrees Celsius.
Mexico...