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The Multichannel Challenge At Natura In Beauty And Personal Care Case Solution

Solution Id Length Case Author Case Publisher
2051 702 Words (4 Pages) Paul W. Farris, Leandro Guissoni, Kusum Ailawadi, Murillo Boccia Darden School of Business : UV7303
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Natura is a Brazilian owned beauty company that was experiencing a decline in its market penetration rate through its door to door selling strategy comprising of 1.5 million independent door-to-door sales consultants. As a result, the management focused on the multi-channel selling strategy through stores, websites, consultants, and many other platforms to be able to reach a large number of customers. However, now the company was faced with a challenging situation of managing its relations with its ISCs, which was deteriorating as they were no longer the exclusive sales channels used by Natura. Also, their productivity had declined despite the rise in their number, which also needed to be addressed. Hence the new CEO needed to strike a balance between the interests of its ISCs who bring a significant amount of business, as well as continue focusing on its multi-channel approach due to evolving market dynamics.

Following questions are answered in this case study solution

  1. Problem Statement

  2. Analysis

  3. Recommendations

Case Analysis for The Multichannel Challenge At Natura In Beauty And Personal Care

2. Analysis

It can be seen that Natura has a sufficient number of ISCs working with it who promote its brand to its own network of clients. Deteriorating relations with these ISCs would therefore mean losing these clients. Hence, it still has a huge potential to positively influence the sales of Natura. Also, it is quite clear that the productivity of the ISCs has declined by 0.65% between 2011 and 2016. As it can be seen that the business is already involved in inviting its ISCs to meet and product launches to develop strong relations with them, it can increase its training sessions of its ISCs so that their productivity level is improved and they are able to tap a larger number of customers and pitch them a wider range of products (Boothby, et al., 2010). 

Also, it should be noted that as of 2015, direct selling represented 25.2% of the total CF&T market despite the fact that Avon and Natura both started shifting from the direct selling business model. But this still does not justify worsening the relations with the ISCs as they have a fair amount of power to influence the purchasing decision of their clients. Hence, improving relations with them would allow them to act as advocates for the Natura brand, which would help in long term sustainable growth (Schultz & Block, 2015). Also, it is quite clear that MaryKay and Boticario have been able to tap a larger number of households through direct selling channels. Hence, training of the ISCs would increase their productivity, and there is a possibility that Natura can also benefit by increasing its household reach through the ISCs.

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