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5080 Words
1. Introduction Of Global Marketing and Sales Development
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The following report illustrates the deliberate manufacture of cosmetic products and the name of the cosmetic company is Bamford, a UK based cosmetic products. Bamford in London is one of the world's definitive hubs for lavish products and have most organic beauty products and in Egypt people mostly prefers organic beauty products, so for that purpose, the cosmetic product business has been chosen. This report aims to deliver the highest level of beauty experience to the customers and to capitalize on the premium brands and cosmetic segment of the market in Egypt by providing quality brands that the customer wants more. People in Egypt want more advanced cosmetic products and more fashionable and branded skin and body care products and cosmetic product are an integral part of Egypt. There are no such branded and organic cosmetic industries are in Egypt, so to fulfil the customers demand and need and to develop the cosmetic industry the Egyptian country has been chosen. Makeup and skincare have been a significant part of society and the roots can be traced back to the ancient Egyptians. For a very long era, there is a demand for advance and quality base cosmetic products in Egypt, so the following report will analyse the various aspects of the cosmetic industry.
2. Company Overview
The cosmetic and personal care industry is one of the fastest-growing industry and Bamford is one of them. Bamford is “a way of life”; they created clothing and beauty care products, and this is very unique and Bamford is United Kingdom’s leading certified beauty product industry. Carole GrayBamford, Lady Bamford is a British person, who founded the “ Daylesford organic Farm shops chain and the owner of (Bamford, 2021) Bamfo beauty and clothing products in the year 2006 (HPCi Media Limite, n.d). Bamford is a British luxurious fashion, bath and body and accessories, company that pride itself on making products from natural and organic ingredients and materials. Bamford has worked on a selection of projects, which includes skincare packaging, bath and body training manuals, stationary etc. Bamford is famous and unique for its “Skin Care, Organic Body Care, and Clothing range”.
Since Bamford started working they have helped out to bring victorious kinds of stuff ranges to the marketplace and have also managed to develop an awareness of those products and at the same time, the image of the brand has been sophisticated and bought in line with the way of life of the company through the functioning of the innovative strategy. The commitment of Bamford is to using natural ingredients and it has manifested in the use of fruits and yeast enzymes as an alternative to synthetic ingredients and the Bamfords splendour products include toiletries and skincare that focus on wellness and mind.
In Egypt, there is a high demand for beauty and skincare products, and Egypt is one of the very few countries which benefited from positive growth rates including its GDP growth in Cosmetic and beauty and personal care products during the time of COVID19. But after the pandemic, the cosmetic and skin and personal care business has suffered a lot and the effects of COVID19 on the cosmetic industry can be observed worldwide in all the regions (Sayed, 2020). During the pandemic, most of the cosmetic companies also had to cut down the labour force and cosmetics products shown failing results in growth.
3. Situation Analysis
3.1 Macro-Environmental Analysis
PESTLE Framework
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Environmental Factors
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Situational Analysis
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Political
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Any company which makes the conscious decisions of going international in its operation and availability should be open to the huge possibility of being affected by world politics and generally in depressing ways but in Egypt, there are no such political factors in the cosmetic company, though product safety is a hot a topic in Egypt. But still, political instability has troubled the rootstock of the country and "Military rule" is the vital decisions making vigour in the country (Dunne, 2020).
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Economic
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Over again brand is severely affected by global conditions including its economy and a beauty product company with a low economy is challenging. Though Egypt benefited from positive growth during the time of the pandemic after a sudden time, the economic condition of the country was a little down just like other countries Egypt country too was impacted by the pandemic. Egypt financial condition is significantly better since July 2014, but the economy is still miserable due to several facts like a high inflation rate of (10%) and this rising inflation enlarged class difference and made it hard for the poor to live on. Egypt currency depreciated against the dollar and this made imports even more costly (Fanack.com, 2020).
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Social
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Health consciousness is one of the main factors of socials factors in Egypt, because skincare, massage parlours, body care all are relevant to the beauty industry (Beshara, 2000). The accelerating demand for beauty care will play a significant role in the success of the companies and brand loyalty is an important factor too in Egypt. The Egyptian cosmetic market based on type, channel, and distribution and based on types it is classified into skin and hair care. Another social factor of Egypt is, the unemployment rate is rising and as a consequence, the crime rate in Egypt has increased three times.
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Technological
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Egypt has been known as the "lighthouse of science" and approximately 72% of Egyptian customers prefer online shopping after the pandemic peoples of Egypt started online shopping. Technology has become an integral part for the customers to connect online business. After the pandemic (Kotb and Adel, 2020) there has been an increase in technology use and peoples are now comfortable using the innovative device, and the demand for high tech beauty has to thunder since the lockdown period. Clothing (64%), Computer and electronics (57%) and health products (56%) top the virtual shopping list in Egypt (OXFORD BUSINESS GROUP, 2013).
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Legal
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Well, the Law condition in Egypt is never established as its constant heave of war between "Military rule and democracy". The foreign company are classifying as a people of Egypt (Abdel Wahab, 2008). If the company is established as per Egyptian law, then the administration or the public authority owns further. The tax charge for the foreign companies is resident companies are taxed on internationally revenue and non-resident companies pay tax on income from their enduring business in Egypt.
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Ecological
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Egypt share most of the environmental problems of developing countries and in Egypt, peoples are becoming more open to the usage of natural ingredients products or can pure and organic products (Anwar, 2003). Green or organic products role in the cosmetic industry is getting more and more prominent (Anwar, 2003). Nowadays the learning of using natural materials is on the rise in Egypt but still, there are no such precarious environmental factors in Egypt.
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4. Marketing Objectives
Marketing objectives are achievable targets that define the final results of a marketing campaign, with the principal aim of guiding the initiatives of marketing towards milestones set. The most effective objectives of Bamford must align with their business plan of growth and complement their overarching business goals. For the business growth of Bamford, the international market entry has been chosen to be a growth tactic, which is primarily set on three goals of new foreign market entry, increase in consumer-base and brand promotion, as opined by Ahi et. al. (2017). In this process, marketing objectives for Bamford business can both define and persuade their success. Marketing objectives are an integral part of the marketing strategy of any organisation, so that business is kept on the correct path if the goals are set according to the SMART guideline.
4.1 Rationale for Objectives
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Goal
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Specific
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Measurable
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Achievable
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Realistic
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Time-bound
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New foreign market entry
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Entry to a new international market
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Enter the Egyptian market of clothing and beauty industry and capture 3% of market share within a specific time
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Huge contribution for introducing the business in the international market through partnering with local businesses in the local region of Egypt
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The marketing team would focus on evaluating the market to find a reputed and responsible distributor to partner with, which can introduce the market
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6 months
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Increase in consumer-base
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Reach a new geographic segment of consumers
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Introduce 50% of their wide range of clothing, beauty and other products to the consumers of the Egyptian market, and capture 10% of the target consumer base within a specific time
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Enhancing the consumer segment beyond the regional market or domestic country and increase the overall sales of the wide product range
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The production team would work along with the marketing team to understand the selection of products, especially clothing and beauty items, that can be initially launched in the Egyptian market based on the preference and behaviour of the target consumer there
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12 months
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Brand promotion
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Enhancement of brand awareness among Egyptian people
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Make 40% of Egyptian people aware of the existence of their business, along with their product range, within the specific time and establish a strong brand image
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Establishing a strong brand image among the target consumer segments in the clothing and beauty industries to increase sales, enhance overall profit and growth of the overall business
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Marketing and promotional activities are to be carried out by the relevant team of the organisation by following both offline and online mediums, such as billboard, local TV channels, print media and region-based social media marketing etc. at the initial phase
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8 months
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(Source: Forrest, Buttermore and Wajda, 2017; Ardyan, 2018; Turnbull, 2014)
4.2 Justification
The justification of the marketing objectives is based on the assessment of the objectives set for the goals against the opportunities and threats in the market the business is about to enter into (Sulaymonova and Andaev, 2019). Even after there is a threat caused by the economic downturn due to the COVID-19 pandemic, the country, especially the beauty and clothing industry is suitable to enter as a foreign market destination for Bamford’s business. The technological environment is suitable for promoting the brand through digital media as well, while the socio-political, legal and environmental setting of the country would create an opportunity for gaining a considerable preference among the target consumer base.
5. Marketing Strategy
5.1 Portfolio Analysis
5.1.1 The Attractiveness of Allocated Country
Changes in lifestyle and the increasing need for cosmetics are driving Egypt's cosmetics market development. In addition, the ongoing trend in the use of herbal cosmetics with minimal side effects stimulates the cosmetic market growth (Zbib et al, 2021). Nevertheless, increased understanding of the side effects resulting from certain cosmetics products and the availability of advanced cosmetic procedures limit the growth of the industry. Inversely, the demand for the use of organic and herbal cosmetic products is expected to increase shortly, due to its skin advantages. On the other hand, total sales in the clothing sector in 2018 were $5.7 billion, reflecting a compound annual growth rate (CAGR) of 11.6% between 2014 and 2018 for the Egyptian clothing retail sector (MarketLine, 2020).
5.1.2 Competitive Strength of Selected Company
Porter’s Five Forces Analysis
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Forces
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Factor Analysis
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Competitive Strength for Bamford
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Threat of New Entrants
Medium
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Egypt is a welcoming market for almost all types of foreign businesses, and recently, the growth in the beauty and care industry, as well as the clothing and accessories industry, has seen a significant rise, until COVID-19. Generally, the market is suitable enough for the foreign SMEs from the political, social and legal point of view to enter the market. However, due to the economic downturn from the COVID-19 pandemic, consumers are buying the fashion and beauty and care items only from reliable sources with healthy products, which restrict the companies who manufacture beauty and skincare items with chemicals from entering the market. Besides, the amount of investment is huge, which is also a restricting point for entry.
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Moderate
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Threat of Substitute
Low
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Bamford owns a huge number of products, divided into many categories, though the major product range of the company is beauty and skincare and clothing items. Its vast collection of products consists of organic essentials, hand care, yoga wear and other clothing items, pillows, toys, face masks, body wash, soap, conditioner, oil etc. The company manufactures some house items and accessories as well such as candles, handbags etc. The unique collection category of product that the company is manufacturing with the assistance of Indian designers is handbags and other such items made of natural fibre and materials that have been up-cycled. Such a huge variety of product indicates to the point that even in a new market, there is not much substitute product that can beat the business in competition. So the threat of substitute is low in this competitive force.
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Strong
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Bargaining Power of Suppliers
High
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Being an SME in one of the most competitive sectors of the UK, Bamford has a handful range of suppliers for their production of various items. Also, while entering the new market, they need to establish good relationships with the local suppliers there. All these factors work behind providing the suppliers with a higher bargaining power over the company.
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Weak
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Bargaining Power of Buyers
Medium
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From eco-friendly attribute to use up-cycled materials for accessories and natural fibre for clothes to magnificent aromatic essentials and healthy skin care and beauty products – consumers of Bamford prefer buying their products which are available in a reasonable price range. Hence, because of the variety in quality products, consumers have medium power on its pricing and other business decisions.
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Moderate
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Competitive Rivalry
High-Medium
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The global beauty and skincare industry is a competitive market, and so is the clothing and accessories sector. Both these industries are congested with large, medium and small businesses in the country of Egypt as well, creating high competition for Bamford to operate. BOSS, Tommy Hilfiger, Emporio Armani, Burberry are some of the major multinational fashion brands here, while Loreal, Avon, Unilever, Oriflame etc. captures a lion share of the beauty sector. The market even boasts its homegrown cosmetic businesses like Caroline Beauty, Braes, and Joviality etc. However, the vast range, quality and pricing of products would provide a competitive advantage for Bamford in such a market.
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Moderate
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(Source: Bamford, 2021; Gilmore, 2020; Egyptian Streets, 2020; Kumar et al, 2006)
5.1.3 Mode of Entry with Justification
Partnering With Local Companies for Establishing a Local Presence in International Markets
An overarching international market entry strategy is to establish the local presence in the foreign market, which is the suitable marketing entry mode for Bamford among all strategies, based on the opinion of Akande and Khadka (2018), keeping the marketing objectives in mind. Such market entry mode comprises of opening branch or subsidiary, partnership with a local company, joint-venture, purchasing local company and product licensing. Among them, partnering with local business would address all the requirements for Bamford’s marketing goals to enter the Egyptian market. Such an approach will allow businesses to market and sell goods much more quickly when Bamford will have a local partner, as it helps to navigate policy and regulations in the region, create relations with customers and find employees in the international markets that you target (Schellenberg et al, 2018). For a medium-sized company like Bamford, it is the best tactics among all to enter a new foreign market with minimal investment and market knowledge.
5.1.4 Segmentation, Targeting Positioning
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Segmentation
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Targeting
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Positioning
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Geographic: Egyptian consumers from urban and semi-urban regions
Demographic: All gender groups, especially women of youth and young adult age-groups
Behavioural: Heavy beauty and skincare items users, quality product users
Economic: Comparatively moderate to higher income, with considerable disposable income and surplus money
Psychographic: Chooses quality over pricing, have a considerably high-standard lifestyle, interested in organic and eco-friendly products
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Bamford mostly targets young and affluent women from middle and higher socio-economic classes with a standard sense of trending yet eco-friendly fashion and beauty products, and a preference for quality over price
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Bamford needs to aim for positioning its business in the Egyptian beauty and clothing sectors with organic beauty and skincare products and trendy clothing items and accessories at a moderate price level through promoting the business both offline and online
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(Source: Bamford, 2021; Jan and Victor, 2019)
6. Marketing Tactics
6.1 Product
The beauty care and clothing products from Bamford meet the customer demands at all three levels of products, which are needed to satisfy the consumers and create loyalty and commitment among them for the brand, based on the opinion of Kotler (2012). The company is fulfilling the demands of consumers with its wide product range for fashion, accessories, skin and health care (core benefit) with quality in design and development and up-cycled materials in accessories production (actual product) in consideration. Through these, Bamford is offering products that target for health, care and comfort of consumers and the trend of the market (augmented product).
6.2 Price
The marketing team of Bamford needs to collect data from the post-pandemic market to analyse if they need to bring changes in the pricing strategy of their apparels, bags, home items, and beauty and skincare range to sell to the target consumers of urban and semi-urban areas. The company follows a premium pricing strategy as their beauty products are organic and manufactured following all the safety and health policies, while clothing and accessories materials are gathered from reputed suppliers and designed and made by professionals. As per Wieland (2018), keeping the same pricing strategy would benefit the company to simultaneously sell its products to target consumers and earn a good profit despite the investment of partnering with a local business.
6.3 Place
As the market entry mode suggested for Bamford is the partnership business with a local company, the beauty and fashion brand do not require investing or making strategies for distribution centres, channels or networks to sell its products in Egypt (Khanthong et al, n.d). The partnership business must have a wide operation in urban and semi-urban locations in the country, with a strong base of knowledge regarding the local beauty and clothing market from every aspect. Besides, the company must look for a local business that has an online consumer base and runs the business online.
6.4 Promotion
Bamford owns a well-organised website with smooth navigation amidst its products. The company has a LinkedIn and Facebook profile as well. This indicates the fact that the company is well aware of a business to be present online, states HALIM et al (2020). Thus, online promotion through these mediums would be beneficial for the company to attract more consumers to its business. On the other hand, promoting through offline platforms like TV, print media, billboard etc. would reach consumers who still trust more on the traditional marketing platforms.
7. Marketing Action Plan
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Marketing Plan
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Activities
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Time
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Enter the prospective market in Egypt
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· R&D on the local businesses and find a suitable one to partner with
· Make contract of 3 years initially and communicate about business goals and objectives clearly
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May 2021-August 2021
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Launch 50% of the entire product range
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· Discussion with the partner organisation on market preference
· Selection of product based on market preference in Egypt
· Introducing the selection of products through the partnering business
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September 2021-August 2022
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Engage 10% of entire target consumers
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· Focus on developing and availing the products that specifically address the market demand of Egyptian consumers
· Set a premium pricing strategy for the chosen segment of consumers to make them believe in the quality of the products
· Promote the products being organic and environment-friendly
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November 2021-October 2022
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Gain 3% market share in beauty and clothing industry in Egypt
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· Focus on the products that specifically fulfil the demand of the consumer within a preferable budget
· Huge investment in marketing and promotion for the brand
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November 2022- May 2023
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Establish brand image among 40% of Egyptian consumers
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· Communicate with partner business on the best marketing and promotional channel
· Focus on offline promotion initially, like TV advertisements, billboards, newspaper advertisements etc.
· Reach a wide range of consumers with promotion through Facebook, Instagram and website etc.
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August 2023-April 2024
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(Source: Kunitzky, 2010; Jin and Hurd, 2018; Schellenberg et al, 2018)
8. Conclusion
In this Global Marketing & Sales Development report, a clear representation of the Cosmetic beauty products company, which will go to set up their business in the Egypt country has been discussed. Many cosmetics aspects along with the marketing objectives and the marketing factors have been briefly discuses here through which a clear representation of the business values have been recognised and that will help the UK based Bamford company to build up their business in Egypt. From the overall view, it is quite noticeable that the cosmetic industry which will be going to establish their business in Egypt is extremely fundamental and will help the Egyptian to fulfil their requirements and demands that they want beauty industry. Move forward, several strategies and tactics have assembled to develop the marketing strategies and business plan of the company. The whole reports portray the clear business norms and the value and significance of the business utilizing of technological factors and action plan through the smooth marketing platforms. Therefore the entire process and steps will be beneficial for the company to make an initial growth and build up their business on an international level.
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