what to learn from the company that has more than 3600 stores across the country – WAU
O Boticário’s strategy consists in the development of quality products, well-targeted marketing actions and a business philosophy aimed at valuing nature and the human being. Understand this company’s proposal and the practices that have ensured its enormous success.
Unlike other major cosmetics companies such as Natura and Avon, O Boticário’s strategy has focused on the franchising model since the beginning of its activities in this market.
Throughout its more than 40 years of operation, its number of stores has grown exponentially and it has incorporated other brands into its holding, such as Quem said, Berenice ?, Eudora and The Beauty Box.
The London beauty market was the one that grew the most in the world in the last decade and in the midst of this extremely competitive segment, the company O Boticário stands out as one of the most successful organizations, boasting more than 3,600 stores across the country – a number five times greater than that of the McDonald’s fast food chain!
What is the formula of the company that started as a small pharmacy in Curitiba and became one of the greatest beauty empires in London? Exclusive products? Bold marketing strategies? A strong value proposition? Or all of this together?
Read on to find out!
The evolution of O Boticário from 1977 to the present day
The company O Boticário started in 1977 as a small pharmacy in São José dos Pinhais, but the intention to develop products and commercialize cosmetics has always existed in the mind of its founder, Miguel Krigsner.
The first franchise came 3 years later. In 1982, its first plant was inaugurated and the company’s growth continued at an accelerated pace.
In 1985, the brand’s first store opened in London and in 1987 the group was already celebrating its 1000th unit in operation.
The company has already been elected the Best Franchise in London by Pequenas Empresas & Grandes Negócios Magazine and received the title of Best Shopping Center Store Design in Latin America by the International Council of Shopping Centers.
Today, the O Boticário group has more than 3,600 stores in more than 1,700 municipalities in London and also manages the Make B., Capricho, Intense, Who said, Berenice ?, The Beauty Box, Nativa Spa, Skingen brands and their latest acquisition, Vult Cosméticos, purchased in 2018.
O Boticário, its verticalization and its sales proposal
Like its direct competitor Natura, O Boticário’s marketing strategy is based on “backward verticalization”.
This means that the company is not just a brand that sells cosmetics created and patented by third parties, but also controls the entire process of developing its products.
Its Molecular Biology Laboratory is one of the most advanced in the world in the processing of natural ingredients from London biodiversity and in studies on biochemical phenomena involved in skin aging.
Regarding distribution and sale, the company stands out for adopting an omnichannel strategy to market its products.
It is possible to purchase goods from O Boticário through seue-commerce, direct sales – just like its main competitors – and its official stores, which are its main promotional channel.
However, as clearly evidenced in its history, it was the franchising model that was largely responsible for the enormous sales success of the company and its turnover that exceeds R $ 13 billion.
But solid business growth has also depended on a number of other initiatives that deserve to be highlighted in this article.
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O Boticário’s strategy and its successful initiatives
O Boticário is a company with a fantastic prestigious history with several events and characters that contributed to its evolution in the market.
However, there are some fundamental points that help us understand its enormous success and can inspire other companies that also dream of reaching the top. Check out!
Add value to your brand
The brand name is a reference to its origins. The term “apothecary” is an old name for pharmacist, and it was precisely in order to honor the former professionals in the field who handled recipes that Krigsner baptized his company as O Boticário.
Thinking of serving an audience in which the majority is composed of women in search of natural beauty solutions, the brand strives to transmit a feeling of lightness, quality and freshness in its products, something that mixes the country’s tropical climate with the profile London woman.
Meantime, before working on the perception of its products, O Boticário works on its so-called “corporate essence”.
Obranding of the company underwent a reformulation in 2008 in which the main objective was to seek to promote beauty not only as something aesthetic, but a value that makes people better.
This new approach broadens the consumer’s view of the company and also shows us how companies are increasingly concerned with generating a transformation from the inside out, something that prestigious authors like Philip Kotler affirm as essential to the authenticity of the business.
Focus on product quality
Since the beginning of its trajectory, the company O Boticário has never limited itself to being just a cosmetics brand, taking over the entire production chain from the creation and improvement of products to the sale to the final consumer.
The company therefore acts as a complete market, which requires a gigantic physical and administrative structure that is not viable for small and medium-sized companies.
However, this whole complex has a main focus:product quality. The organization guarantees the excellence of the goods since their origin and still uses natural ingredients from London, a country recognized worldwide for its biodiversity and natural wealth.
All this care in product development adds enormous value to them and the brand, in addition to proving to the client that the company is really committed to delivering quality solutions to its audience.
Bet on efficient communication
Like other large corporations in the market, O Boticário spares no effort in creating successful advertising campaigns.
In recent years, however, the company has shown itself attentive to important social issues and boldly positioning itself as a conscious, inclusive and modern brand.
In 2015, the Valentine’s Day campaign entitled “Toda Forma de Amor” featured heterosexual and homosexual couples exchanging hugs and gifts from the brand.
The video caused controversy among conservative groups, but ended up generating a very positive impact for a company that was a pioneer in addressing, with due respect, a topic with strong social appeal.
One of the most recent cases was the Father’s Day 2018 campaign in which a commercial was made only with black actors. The YouTube video received a wave of “deslikes” and negative comments questioning the “company’s diversity” proposal.
The situation forced the company to post a message on social networks in defense of the campaign, but what really caught the attention was the spontaneous defense of the brand audience, which soon overshadowed the trolls with countless compliments and positive reactions.
Diversify your sales channels
One of the most important points for O Boticário’s exponential growth was the diversification of its sales channels. In this way, the company not only “surrounds” its audience, but becomes able to serve people with different consumption contexts and behaviors.
But there is a very important detail in this strategy: O Boticário is not just a multichannel sales company, it is a company omnichannel. This means that its different sales channels work together within a large commercial network.
Your online store, for example, features a sophisticated geolocation system in charge of commissioning dealers who are within a radius of distance based on the buyer’s zip code.
This type of resource ensures that the different sales channels do not compete with each other, but help each other.
Explore different audiences
Currently, the O Boticário brand has a product portfolio with around 600 items classified in body care, facial treatments, sunscreens, makeup, perfumes, deodorants, soaps and shampoos, this being its main line of activities and a national and international reference in the segment.
The incorporation of other brands is also part of its diversification strategy. Eudora, for example, serves a public with an ethnographic profile that differs from the standard client of ‘O Boticário, The Beauty Box is a multi-brand that also offers imported cosmetics and Vult has a young and popular positioning.
That variety of categories it benefits the customer looking for other types of solutions, but its main purpose is to accompany the expansion of the business.
When a company grows and reaches more people, segmentation becomes inevitable. The organization is obliged to meet these new demands in order to maintain its growth rate.
It is important to note, however, that different brands require different business models and marketing strategies. It is as if each of them became a company in its own right. The result may be spectacular, but it will require many investments and management challenges.
Don’t be afraid to grow
Analyzing the entrepreneurial power that the O Boticário group has today, it is difficult to imagine that just over 40 years ago the company was nothing more than a pharmacy with a marketing plan beyond ambitious.
With the help of strong partnerships and the desire to improve its connection with the consumer, the company was able to rise relatively quickly, relying mainly on its franchising network.
It is currently the largest franchise in London and invests in innovation and sustainability initiatives to maintain its relevant brand in the country.
Another key factor is investment in franchisees training and the professionalization of its employees. The network is only able to maintain its success with the help of solid partners.
At the other end, we also have the growth of microfranchises and the entry of new entrepreneurs who are betting on innovative solutions to optimize the group’s business.
Looking at so many investments, campaigns and grandiose strategies we can feel intimidated, but it is important to remember that no organization becomes a giant overnight.
There is an essence behind all these initiatives that can be incorporated even by businesses that are starting their activities and are inspired by the major players in the market.
As you can see, there are numerous elements that make O Boticário’s strategy a great success and, among them, we discovered an indisputable truth: the company has always dreamed of high dreams and knew how to benefit, with professionalism, from all the opportunities that arose along its journey.
This article ends here, but if you want to help your business continue to grow, be sure to read our content on Netflix’s launch strategies!