A presentation we did for our International Sales course at University College Cork, Ireland. We looked at the potential for an Irish company called Ri Na Mara to export and market their seaweed cosmetics to Norwegian consumers.

2. Presented By
Mary Martin Paul

3. Rí na Mara
Seaweed Cosmetic Range

4. Rí na Mara
Cosmetics• Organic, high-end seaweed cosmetic range of 6 products
• From Connemarra
• Operating for 10 years
• Selling well across Ireland, Germany, US and Dubai
• Biggest challenge: finding new sales channels post-recession and becoming e-
commerce savvy.

5. NORWAY
Just over 5 million people
Average gross salary €54,000 and net €40,000 (2014)
Neither in the EU nor the Eurozone
A member of EFTA (European Free Trade Association)
US Commercial Service, Global Edge.

6. NORWAY
• Politically stable
• Low unemployment rate of 4.3% (July 2015)
• Oil and gas accounts for 50% of Norway’s exports
• Norway is 7th
largest oil exporter worldwide

7. NORWAY’S
STRENGTHS
•Business climate rating is A1
•New oil deposits discovered
•Solid banking system
•Disposable income very high
(approx. $22k per person)

8. NORWAY’S
WEAKNESSES
• Dependence on oil sector
• Very high level of household debt
• Competitiveness eroded by high wages
Globaledge.msu.edu/countries/norway/risk

9. KEY CHARACTERISTICS OF
THE NORWEGIAN MARKET
• Consumer Trends in Cosmetics: What and how
do the Norwegians buy?
• The Business Culture of Norway: What other
Irish companies have found.
• Our seaweed culture vs. theirs.

10. Consumer trends in cosmetics:
What does Norway like to buy?
•Norwegians “view beauty products as
essentials”….
….and are “sophisticated in their demands.”
(Consumer Lifestyles in Norway)

11. Where are the opportunities in
Norway for new products?
Opportunities to “carve out a high-end niche”
…….
….rather than take on established mainstream
multinationals like L'Oreal.
(Euromonitor International)

12. Niche cosmetic market in Norway
• “Niche label” premium beauty products account for
26% of market share in Norway.
• The market niche that holds the most potential is
“natural and organic cosmetics”
(Euromonitor International)

13. What does the typical Norwegian
cosmetic consumer want and who are
they?
• They consider themselves to be “friends of the environment”
• Concerned with safety of products
• Aware of chemical ingredients and allergic reactions
• Health conscious, outdoor types
• Young Norwegian consumers “seek out organic produce”.
• Concerned with sustainability in organic products
• Organic products must be of high quality
(Ecolabel)

14. Who buys what
in Norway?
• Norwegians were the biggest spenders in Western
Europe on cosmetics with “an average per capita spend
of US$289 in 2006.”
• The most lucrative product segment is skincare in light
of the ageing population and wealth of 50+ group.
• Those aged between 45 and 49 years have highest gross
income in Norway.

15. Demand trends for cosmetics in Norway
• Female consumers want “premium grooming products”;
demand has soared in recent years
• Per capita sales in top end products rose by 10% between
2008 and 2013
• A willingness to pay more for safer products is in evidence.
• Male Norwegian consumers most interested in anti-ageing
products (57% of men surveyed by Nivea in 2012).
(Consumer Lifestyles Norway)

16. Growing Trend in Cosmetics in Norway
• Popularity of spa treatments has boomed in Norway in last five years.
• This has led to increase in buying of “superior quality products”.
(Ecolabel)
• Bord Iascaigh Mhara (Irish Sea Fisheries Board) has noted this potential
in export sales:
“…larger volume products intended for spas and
treatment centres appear to be growing in importance.”

17. Doing Business in Norway according to
Irish companies who already work there
• Norwegians have a strong work/life balance: work
to live and family time is extremely important
• There is an openness to adopt innovative products
• Business-friendly environment with well-established
infrastructure

18. Business Style in Norway
• Clear distinction between personal and professional
relations
• Direct, honest communication is vital; straight to the
point
• “Low context” communication style and a reserved
business culture
• Norwegians, of all Nordic countries, are least
relationship-focused and more deal-focused

19. Details are important!
• Be specific in negotiating terms with Norwegians
• Written contracts are favoured and binding and should
be fulfilled exactly
• Be prepared, structured and organised in presentations;
detail is the key
• Norwegians are more detail-focused than Irish people
• Good market research is vital and presenting factual
information in a clear, precise way is the norm

20. The importance of being Local in Norway
• Having a local rep on the ground is vital
• Someone who knows the local business
environment and Norwegian language is a
huge bonus
• English is widely understood but having
Norwegian is very important going forward in
the long-term

21. SEAWEED CULTURE: OURS vs.
THEIRS!
• Both Ireland and Norway have long-established seaweed industry for
food, fertilizer and cosmetics.
• Kelp is the main type of seaweed used in cosmetics in Norway; Ireland
also has kelp but a wider assortment.
• Fundamental difference: Norway harvests its seaweed mechanically.
Ireland harvests its seaweed manually (on foot or by diving).

22. Mechanical vs. Manual
Harvesting
“….in countries where (kelp) is harvested with
mechanical equipment scientists appear to be
concerned with the equipment’s impact on the
species and also on the surrounding ecosystem”
Seaweed Industry in Europe - Netalgae

23. • In Ireland, the National Parks and Wildlife Service
is opposed to the introduction of mechanical
harvesting of seaweed.
• The Irish authorities do not issue authorizations
for mechanical harvesting.
Mechanical vs. Manual
Harvesting

24. What does Bord Iascaigh Mhara
recommend?
• BIM is the Irish Fisheries Board, governing the
seaweed industry.
• BIM recognises that the Irish seaweed cosmetic
sector has “significant growth potential particularly
for export markets.”

25. What does Bord Iascaigh Mhara recommend?
Crucial to success in exporting our seaweed to Norway is
the following:
• Scientific data to support market claims
• Scientific data on water quality…. to highlight
unpolluted nature of (our) waters
• Organic certification
• Environmental credentials

26. Our Target Market

28. Age/Gender
 All Women 16 – 65 (+?)
 Some Men 16 - 40

29. Norway’s Population

30. Norway’s Demographics Profile

31. Norway’s Demographics

32. Age Distribution

33. Age / Gender %

34. Sales Outlets
 Health Stores
 Beauty Shops
 Department Stores
 Hotels / Spas
 Cruise Liners
 Website
 Social Media

37. Convivial

38. Independent

39. Artistic

40. Entrepreneurial

41. Athletic

42. Hardworking

43. Glamourous

44. Sporty

45. Patriotic

46. Cultural

47. Sociable

48. Discerning Consumers

49. Diligent

50. Elegant

51. Formidable

52. Musical

53. …..blant mange andre ting..!

55. Of course,
Men are also a
Target Market...

58. Irish Competitors
Some of the major players…..

71. Norwegian Competitors
Just a few….!

77. International Competitors
This could take all day…..

82. Strategic Alliances
Distributors in Norway

87. Kosmetikkleverandørenes forening
(KLF)is the trade association representing the cosmetic industry in Norway.
Often cosmetic products on the Norwegian market are delivered directly to the consumer sales outlets
from a central stock in another country other than Norway.

89. Our Product’s
Potential
Natura
l
Organi
c
Affordabl
e
Irish
Health
y
Trendy

90. Transport Routes

94. Options for Market
Entry

95. There are a number of
different options available
for market entry to us.
Here are a few of them
and their benefits/ downsides.

96. Licensing
• This option provides a contractual source of income.
• It also limits the companies financial exposure.
• However….
• Picking a good partner can prove difficult and the
wrong one could be detrimental.
• It can also lead to a loss of competitive edge for the
company.

97. Joint Venture
• Similar to licensing, one of the most challenging
concerns is that of relationship management.
• As we are not currently operating in Norway this
could prove even more difficult.
• Positively…
• The shared investment risk provides safety for us.
• The shared knowledge and complimentary
resources could be beneficial.

98. Foreign Direct Investment
• This would allow us to maintain full control of the product.
• We could enter the market much quicker.
• Greenfield investments may also be subsidised.
However…
• It will require substantial direct investment to a market in which
we are unsure of demand.
• There may be integration and co-ordination issues.
• Greenfield investments are time consuming and unpredictable.

99. • To have high control over the product you must take
higher risk such as a wholly owned subsidiary.
• On the contrary, generally speaking the lower the risk
you take say for example with exporting, the lower the
control you keep over the product in the new market.
• These were important elements for us to consider
when entering this market.

100. Recommendations
Export.
• Some clear disadvantages of this are the transportation costs
and the lack of any possible location advantages in Norway.
Its benefits however are:
• No need for operational facilities in the host country
• Marketing can be controlled from Ireland via phone and
internet.
• No issue with trade barrier thanks to EFTA

101. Exporting
• When going ahead with exporting a key to the success of the project is
ensuring we have a good distributor and maintain a strong relationship
with them.
• The distributor should have a good market knowledge of skincare
products and seaweed products if possible.
• Enterprise Ireland offers support for this through assisting with and
organising places at trade shows.

102. Formal or Informal in Business?
• Norwegians dress casually for business in an informal way
but meetings are always formal and structured.
• The hierarchy in a Norwegian company is never explicitly
shown and the CEO can appear as casual as the next
employee.
• They look informal but expect formality always.

103. Do not be late in Norway..!
• Punctuality is very important: meetings never run
over time and are very structured
• Norway is very much a monochronic country with
respect to business
• Fulfilling delivery time-frames is critical; future
orders and business relationship depends on this

104. How will we operate in the
market?
• We could operate focusing solely on the upmarket Rí na
Mara products like in Dubai or USA or also offer the bargain
product, Le Mara like in Germany.
• Based on the research conducted showing the
conscientiousness toward health by people in Norway and
there high level disposable income we recommend focusing
solely on the upmarket products.
• With this we will have a lower volume needed to export,
meaning reduced shipping costs and storage costs.

105. 4 P's of Sales

106. Product
• “It is great if you can sell sand to the Arabs or ice to the Eskimos,
but do they really need it?” (Kelly 2015)
• While skincare products are not life essentials, they are very
popular in Norway.
• As we are entering with just the upmarket product our target is
those who spend on luxury goods.
• Unlike in the USA, Norway is not so strict in terms of laws
around branding and writing on packages, so we can focus of
the Anti Age aspect which will appeal to the male market in
Norway.

107. Price
• As has already been highlighted in this report,
Norwegians generally have a high level of
disposable income, so being a premium product
should not be a deterrent.
• We would not suggest up front discounting, and
instead offer back end rebates for marketing
services received.

108. Place
• We recommend to first look at placing the product
in Spas and beauty rooms of 5 Star hotels.
• Cruise liners are another option.
• In terms of retail space we recommend pharmacy
and specialised shops and not supermarkets.
• However if demand is high we will have to look at
warehouses in Norway for storing to meet demand.

109. Promotion
• As already highlighted we would look at several avenues to promote the
product.
• Facebook would be key to our online presence and sales and has proven
effective in the past.
• E-zines newsletter are another avenue to try.
• Women's magazines and men's health mags may get positive results.
• Television would incorporate too high a cost for the launch in our opinion
as research shows that Norwegians don’t generally respond well to jazzy
campaigns.
• In-store promotional staff giving potential clients opportunities to trial the
products could prove very effective.

110. Product Positioning

111. Product Positioning: what it
is?
Not changes you make to your
product….but positioning the
product in the mind of your
prospective customer

112. Product Positioning
“getting heard in our
over-communicated society”
Ries & Trout

113. Product Positioning
BE DIFFERENT
STAND OUT

114. What are pharma brands? Why do pharmacies stock them?
•“Pharma Brands” are brands distributed via the pharmacy
channel and have a “medicinal” feel and function. They include
upper end beauty ranges
•Attract customers and increase profits
•Differentiate their product range from other beauty outlets
Pharma Brands in Norway

115. Pharma Brands in Norway
Specialist outlets like pharmacies
which sell premium and niche brands
is “the leading distribution channel (in
Norway) …with a 26% stake”
Euromonitor

116. How to position our product
for maximum gain
Position our cosmetic range in spa treatment
centres in 5-star hotels in Norway
•Diversify sales channels and market segment
•Sell a larger volume of product
•Spa treatments are a growing sector in Norway
•Gives exclusivity to our product

117. Positioning our product for
Norwegian Consumers – Do’s & Don'ts
Don'ts:
• No flashy TV campaigns (this is successful
already in the US for Ri na Mara on the
shopping QVC channel)
• “…consumers in this market are…very sceptical
and are not easily persuaded by flashy
marketing campaigns.”
Euromonitor

118. Do’s:
• Norwegians like to buy and research online
• “54% of Norwegians… are on Facebook” - Enterprise Ireland
• Good on-line marketing campaigns and a Norwegian website is a
good investment
• E-zines and monthly newsletters
Positioning our product for
Norwegian Consumers – Do’s & Don'ts

119. Changes to our Marketing Mix
Packaging is fresh and neutral: vital for
Norwegian consumer who does not appreciate
flashy appearance.

120. Traits needed to do Business in
Norway
• Truth, honesty and commitment are needed in
building long-term business relationships in Norway
• John Roche, Enterprise Ireland Manager for Nordic
Markets:
“In Norway in particular, always exercise humility,
ostentatiousness does not go down well.”

121. Changes to our Marketing Mix
• Norway not known for being a litigious country in
which to do business unlike the U.S. or Germany.
• Previously, in the U.S., Rí na Mara had to alter
packaging with “anti-ageing” claim for legal reasons
as per FDA in US.
• Not a problem in Norway: Norwegian men’s No. 1
issue when considering beauty products is “anti-
ageing” according to Nivea survey.
• Use this claim visibly on the label/packaging.

122. Changes to our marketing mix
• Promotions and demonstrations, marketing brochures and
banners need to be in Norwegian along with actual product
labels.
• Yes they understand English but….using the local language
is a basic courtesy and a winning sales tactic that is
underrated.
• Personal case studies and testimonials are very valued by
the Norwegian consumer and personalised endorsements
should be included in the marketing mix.