International Marketing Example Wiem Azaiez Linn Mona Batool Awwad Sharzad Fereiduni Doron Rosenberg Ekaterina Moustafina Lisa Moore

Background…. Established: 1988 Ziva Gilad – a local spa technician AHAVA = “love” in Hebrew The native mud and salts have healing and rejuvenating qualities Core business: Dead Sea mineral based cosmetics Selling in Israel Going Global… Mid 90’s – exporting to Europe and U.S. Shamrock owned by Disney Company invested in AHAVA and opened the U.S market. Opened flagship stores Europe and U.S. Currently present in over 25 countries around the world

The Dead Sea Some interesting facts: Why “Dead”? One of the 7 wonders of the world The lowest place on earth (-400m/-1300f) Water contains minerals with healing and rejuvenating qualities Healing potential for skin, heart and lung diseases The story of Cleopatra The largest natural spa in the world

AHAVA – Marketing Mix Product lines: Source – facial and body Men – skincare for men Time – anti-aging Pure – spa products Dermud – dry and sensitive Mineral botanic – soaps Mineral sun care Mineral makeup

AHAVA – Marketing Mix Price: Penetration pricing strategy Source line products prices from 15$ to 25 $ Most product lines start from $30 to $100 “Time Line” is the most expensive due to high concentration of minerals.

AHAVA – Marketing Mix Promotion: In the past two years invested $20 million in marketing and advertising Different approach for different markets Celebrities AHAVA music festival “Skin is in “ compaign, Ny fashion week Cuponrefund.com

AHAVA – Marketing Mix Distribution : i.Israeli local market ii.Ahava retail chain iii.International expansion : 25 coutries in the world Online distribution : ahava.com and several other websites such as amazon.com

SWOT Analysis Strengths: Health and skincare benefits Usage of natural ingredients R&D Ecological efforts to save the Dead sea, adding value to the brand Environmental friendly manufacturing –No animal testing Profitable growth, strong operational cash flow Experienced management for domestic and international markets Expansion of product offering Manufacture located in the Dead Sea – saving transportation costs

SWOT Analysis Weaknesses: Very small global market share High manufacturing costs (in Israel) 50% owned by Gaon Holdings Ltd. Enterprise

SWOT Analysis Opportunities: Sustainable development of the Dead Sea natural resources (environmental-friendly) Trend toward more natural ingredients in cosmetics The only company licensed by Israeli Government to mine raw materials from the Dead Sea Situated in a tourist area Symbol of Israeli success Cooperation with TEVA ( in development of dermo-cosmetic product lines.

SWOT Analysis Threats: Dead Sea dehydration Political Issues Numerous competitors Low brand awareness –Lack of trust from global customers Environmental Activists Exploiting Israel’s natural resources for their private profits

Conclusions: First mover advantage in marketing Dead Sea products. Quickly realized global potential Offer a wide range of unique products Strong marketing skills –Succeeding despite numerous challenges Strong financial growth

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