INTERNATIONAL MARKETING FET 3
Executive summary
Lashes and curls makeup studio is a makeup service providing business. It deals with all types of
makeup services starting from basic makeup to bridal makeup, prosthetic makeup and fashion
show and ramp walk makeup.
The reason behind selecting this industry is that in 2022, the global cosmetic market experienced
growth of over 16% in comparison with the previous year. Globally, the industry is strong and
only getting stronger. As emerging nations grow in purchasing power and become globalized, they
offer budding promise for international companies to enter — if they bring higher quality products
than those available locally along with them. By geography, Asia Pacific and North America
dominated; accounting for more than 60% of the total. And because of this reason I am selecting
Canada, a country in North America to enter in.
This project includes both primary as well as secondary data. The primary data is collected with
the help of qualitative and quantitative research approach. Qualitative research is particularly used
as a first step in studying international marketing phenomena. To understand the different trends,
policies, market price, government rules and regulation of the particular country, reference from
many government sites, international websites and online statistical sites has been taken. Primary
data such as companies’ financial records has also been taken into consideration.
This project gives a proper analysis of a makeup service business entering into a foreign market.
And also, the in-depth study of how the culture of India varies from Canada and the marketing
strategy that is decided to enter into Canadian market. Canada is a considered to be the native
country of India, Indians make-up around 5.1% of the Canadian population and approx. population
of Indians in Canada in 2023 is 1.9 million or 19 Lakhs. Thus, taking a service like makeup into
this country is quite beneficial in terms of language, understanding the makeup preference of the
consumer, building a good reputation among them and creating a brand name.
The project also states the rise of beauty industry in the coming years and how much more the
industry is going to grow. In 2021, the cosmetics market in Canada generated approximately USD
1.24 billion of revenue. Industry revenue is expected to grow by 1.45% annually to reach USD 1.8
billion by 2024.
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1. Objective of the project:
The main objective of expanding the business internationally is not to just provide the current
services to the new customer base but also to invest in new product or services. With a much
broader customer base I can generate more business and increase sales. Another objective of going
to Canada specifically is that there are few Indian bridal makeup artists which gives me a
competitive advantage.
2. Scope:
The scope of this study is to establish the business expansion strategy in order to grow the business
internationally. The study provides with inputs on the market entry and establishment of the
makeup studio in Canada. It defines the measures and steps to be taken to set up the business in
Canada as well as describes factors to be taken in consideration for the success of the venture.
3. Need of the study:
The study is based on the extensive research of the make up and beauty industry in Canada. It
provides with the necessary methodologies and practical implementations which can perform the
role of guidance in order to establish a successful business venture in the industry of makeup in
Canada.
4. Statement of the problem:
This study provides with the identification of the best suited international business expansion
strategy for the make up studio to establish successful studio chain model in the country of Canada.
There are very few Indian makeup artist in Canada thus expanding a makeup service as an Indian
makeup artist solves the problem for Indian population living in Canada.
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COMPANY INTERNATIONAL MARKET ENTRY STRATEGY:
1. Country identification:
Countries like Japan, South Korea and China are the leading countries where the demand for the
cosmetic products is huge because of the presence of large number of consumer and presence of
top market players of cosmetics creates huge competition in the market because of which the
survival of the new business in such countries is a bit difficult.
Other than these countries, the European countries has a strong demand for cosmetic products but
the makeup service industry is very less because of the culture of the those countries. Females
prefer minimalistic makeup and are self-trained to do so. Thus, setting up a business in such
countries is not profitable in terms of cost and also in terms of business growth.
The country selected for this project is Canada, a country in North America. The reason for the
selection of this country is that Canada has a good population of Indians in cities such as Toronto,
Vancouver and Montreal which reduces the barrier of language and understanding the consumer
taste and preference. Canada is also known for its diverse population which includes people from
various ethnicities, cultures and backgrounds. This means that there is a market for me who
specializes in makeup for different skin tones and features, making it a great opportunity for me
as Indian makeup artist to cater the needs of different clients.
The beauty industry in Canada is rapidly growing, there is an increasing demand for makeup artist
especially in the wedding and events industry. This means that there is potential for a new makeup
artist to establish themselves in the market and build a successful business.
Canada has a high standard of living especially when it comes to makeup and beauty service and
is known for its strong economy. This means that people are willing to spend money on beauty
services and as an Indian makeup artist with unique skills and expertise I can provide unique and
quality service that can set me apart from competitors and there can be higher chance of success
for a business that offers quality services.
Canada has a supportive business environment with various resources available for entrepreneurs
to start and grown their businesses. There are also various grants and funding opportunities
available for small businesses. There are also organizations such as The ABA (Allied Beauty
Association) that can provide guidance and networking opportunities to me.
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2. Preliminary screening:
Economic factors: The state of the Canadian economy may impact the demand for makeup artist
services. A strong economy generally means that consumers have more disposable income to
spend on luxury services like makeup artistry. It is the 9th-largest GDP by nominal and 15th-
largest GDP by PPP in the world. As with other developed nations, the country's economy is
dominated by the service industry.
Demographic factors: The age, gender, and cultural diversity of the Canadian population can all
impact the demand for makeup artist services. As the business is focused on the Indian population
in the country fits well with the targeted cultural requirements.
Technological factors: Technological advancements in the makeup industry, such as the
development of new products and tools will be offered by business creates demand for makeup
artist services as population of the country is inclined towards technological enhancements.
Additionally, the use of social media and online platforms is high in Canada which can provide
new opportunities for makeup artists to promote their services and connect with clients.
Political and legal factors: You do not need a license to become a makeup artist in Ontario.
According to the Ministry of Labour, a license is not required for makeup artistry.
“As stated in job profile of “Estheticians, electrologists, and related occupations”, you will only
be required to complete high school, college, beauty school programs, or on-the-job training to
become a makeup artist.”
Environmental factors: The environmental concerns and sustainability trends of the makeup
industry in Canada. This includes the use of eco-friendly and cruelty-free products, as well as the
reduction of waste and carbon footprint in the industry which promotes a development of a
sustainable business.
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3. In-depth screening:
Target market strategy:
As mentioned before the Indian population in Canada is 1.9 billion which provides company a
target Indian make up market in Canada.
Segmentation:
Segmenting the Indian population in Canada with providing the expertise services in traditional
Indian bridal makeups with more focus on the north Indian traditional makeups as Punjabi
population has more residence in the country.
Positioning:
As the country selected for business expansion is Canada. The cities selected to operate the service
are Ontario, a province in east central Canada that borders the U.S. and The Great Lakes and
Manitoba, a province that borders Ontario in the east and Saskatchewan in the west, which have
the two highest Indian population rate with 221822 and 164116 respectively according to the
Statistica Research Department Report of December 1, 2022.
4. Final Selection & Direct Experience:
The process of final selection of the country is based on thorough study of the business behaviour
of the country of Canada which provides with the exponential growth opportunity for the
expansion business with respect to the demographic aspects. The target market strategy adapted
by the business is best suited with the dynamics provided by the country.
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BI-LATERAL CULTURAL INFLUENCE WITH SPECIAL REFERENCE TO INDIA
1. Business culture:
The fundamental principle of Business Culture:
Business culture in Canada is a mix of American, British, and French tendencies; that is, practices
vary depending on the region. Utmost Canadians identify themselves veritably explosively with
their province. Respect for opinions, equivalency, diversity and justice are, still, the values
governing the business terrain.
Canadian businesses had traditionally been hierarchical, but smoothed scale is gaining ground.
Therefore, exploration into a company's structure is needed before engaging in accommodations.
The directors are going to be in charge of making the final decision. Still, they infrequently make
the decision without consulting the opinions of the inferiors.
Developing a particular relationship to strengthen the business relationship isn't generally
necessary. As a rule, sequestration is separated from professional life.
First Interaction
It's better to make an appointment for a first meeting. Having a common familiarity helps, but isn't
obligatory. The stylish times to set up meetings are Tuesdays- Thursdays from 10a.m. to 3p.m.,
especially in the morning. Appointment requests can be made by telephone or dispatch followed
by an Outlook memorial. Make sure to completely explain the reason for the meeting request.
Time Management
Punctuality is largely valued in Canada. It's advised to arrive 5 to 10 minutes before the meeting.
You should anticipate the meeting time to cleave nearly to schedule, both in its launch and
duration.
Greetings and Titles
Greetings start with a handshake, followed by a particular and company preface. When meeting
with a French-Canadian co-worker of the contrary coitus, you can anticipate to be saluted with a
double impertinence kiss no matter how well you're acquainted with the person. It's normal to
address a counterpart by “Mr” or “Mrs” or" Monsieur" or" Madame" followed by the surname,
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and to use their title (“Doctor”, etc.). At the end of the meeting, you should flash back to say thank
you.
Gift Policy
Offering and entering gifts isn't a common practice in Canada. Small business gifts might be given
when an agreement is reached or at the end of a marketable charge or a sanctioned visit. Traditional
gifts from bones ' country of origin are particularly enjoyed; good chocolates, flowers or wine also
make for respectable gifts (anticipate gifts to be opened when entered).
Dress Code
Dress law is anticipated to be formal, with sober- multi-coloured suits and dresses. In some
diligence similar as technology, dress can be more casual.
Business Cards
It's judicious to have one side of your business card in English and the other side in French. It
should be handed to counterparts at the morning of the meeting when shaking hands. Other
peoples' business cards should be looked at precisely when entered before storing them away.
Meetings Management
Business meetings in Canada tend to be more formal than in the United States. Having small talk
at the beginning of the meeting is common.
Presentation should be short and clear, and it's important to use data and numbers during business
meetings. Be sure to be prepared with information and not exaggerate your company's abilities.
Agreements are frequently only sealed by a handshake and a written agreement. The ultimate must
be verified by a letter setting out the terms and conditions stated. A contract in due form is always
welcome.
Communication is kindly circular. Limit humorous commentary until gauging how others reply to
them. Making eye contact is important as a sign of respect and sincerity. It's advised to be smiling,
confident and to go straight to the point of the meeting.
During business lunches or feasts, talk will be more casual, but business can still be done. Table
manners are international (i.e., chopstick in left hand), one must wait to be shown to a seat, and
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INTERNATIONAL MARKETING FET 3
food isn't consumed until the host begins his meal. Manners in Quebec are a little more formal
than other Canadian regions.
2. Cultural relation between India and Canada:
India and Canada have a rich and diverse cultural relationship that has evolved over several
decades. Both countries share a commitment to democratic values, multiculturalism, and respect
for diversity, which has been a significant factor in shaping their cultural ties.
There is a significant Indian diaspora in Canada, with over 1.6 million people of Indian origin
residing in the country. This has led to the establishment of strong cultural ties between the two
countries, with the Indian culture being celebrated and promoted in Canada through various events
and festivals.
One of the most significant cultural events that promote the relationship between India and Canada
is the annual India day parade, which is celebrated in major Canadian cities such as Toronto and
Vancouver. The parade is a vibrant display of Indian culture, with participants showcasing
traditional Indian dance forms, music, food, etc.
In addition to this there are several cultural centres and organization in Canada that promote Indian
culture, including the Indo-Canadian chamber of commerce, the Canada India foundation and the
India Canada association. These organisations work towards strengthening the cultural
relationship between the two countries by organising events, seminars and cultural exchange
programs.
The Canadian government has also been actively promoting cultural ties with India through
various initiatives. In 2018, Canada and India signed a memorandum of understanding (MoU) on
cultural cooperation, which aims to promote and enhance cultural exchanges between the two
countries. This MoU includes provision for the exchange of artists, performers, and experts in
various fields as well as the promotion of cultural events and festivals.
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3. Effect of cultural difference on business:
Makeup trends and preferences:
Canada and India have different makeup trends and preferences. Canadian makeup tends to be
more natural and subtle, while Indian makeup is more vibrant and colourful. As an Indian makeup
artist, I am skilled in creating more bold, dramatic looks which are popular in India but to work as
a makeup artist in Canada I need to adapt skills in creating more subtle and elegant looks.
Cultural sensitivities:
Indian is a culturally diverse country with various religious and social norms. In India, I usually
have to be more aware of cultural sensitivities and taboos, such as not using products containing
animal derived ingredients on certain religious occasion or avoiding certain colours that are
considered inauspicious. In Canada the cultural sensitivities may be different as compared to India.
Business practices:
The practices in Canada and India may differ, including the way clients interact with makeup artist,
payment practices and pricing. As a makeup artist working in Canada, I need to be aware about
the local business practices and norms to affectively market and sell the services.
Language and Communication:
Language and communication can also be a challenge as makeup artist working in foreign
countries. Canada has officially two languages, English and French, while India has many regional
languages. As a makeup artist working in Canada, I need to be proficient in English at least to
effectively communicate with the clients. French can be optional language to learn.
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INTERNATIONAL MARKETING FET 3
4. Cultural difference in international business and price negotiations:
Canada is a diverse country with a variety of cultures and traditions. There are many cultural
differences that may affect how people interact with each other and how business is conducted. As
for the price negotiation for an Indian makeup artist, it would depend on various factors such as
the location, level of experience, and the market demand for the services.
In terms of cultural differences, Canada is known for being a polite and reserved country, where
people value individualism and equality. However, there are also distinct cultural differences
among different ethnic groups in Canada. For instance, Indian living in Canada, negotiating prices
is a common practice, whereas in other cultures, it may be considered rude or inappropriate.
Negotiating price as an Indian makeup artist in Canada, it's important to be respectful and
understanding of their cultural background. I can start by doing some research on their culture and
customs to gain a better understanding of their perspective.
When negotiating prices with the Canadian clients, it's important to be clear and transparent about
their budget and expectations. I can also make them aware about my rates and what services are
included in my fees. Being prepared to negotiate, but doing so respectfully and professionally.
Ultimately, the key to successful price negotiation is to maintain open communication and mutual
respect, regardless of cultural differences. By working together, we can reach a mutually beneficial
agreement that satisfies both parties.
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KEY SUCCESS FACTORS:
Demography of the country:
As mentioned before, Canada has a 5.1% Indian population (1.9 million approx.) which gives me
an advantage to understand the consumer taste and preference. It won’t be problem for me to
communicate with the clients. Also, everyone in Canada is well aware with English language so it
reduces the language barrier for me with the Canadian population too.
Less competition:
As per my research done, in have observed that the areas of Ontario and Manitoba has very few
Indian makeup artists, which would give a competitive advantage. Also, there are Indian makeup
artist but the rates they provide are higher so I decided to provide service which would be lesser
in cost as compared to them.
Strong portfolio:
I have already created a strong portfolio for myself in India by doing a successful job in bridal
makeups and fashion and editorial makeups. Till date I have completed more than 200 bridal
makeup, 5 fashion show makeups, 1 Television series makeup and more than 100 photoshoot
makeups. I have completed my makeup training from a Switzerland based course CIDESCO in
which I ranked first in my batch with an international makeup artist certificate and a licence to
start my own makeup studio and academy.
Market entry strategy:
Based out of Ajax, Ontario, Lubu Makeup is an award-winning professional beauty team
specializing in wedding hair and makeup. This talented team, led by Karen McIntosh, have over
15 years of experience, and their work has been featured in Bellissima Magazine. Lashes and Curls
will merge with luba makeup in order to expand in Canada. Luba makeup will handle the
operations of traditional Canadian makeup whereas lashes and curls will only deal in Indian
wedding makeup. The profit will be shared between the two studios.
This merger gives the upper hand to both studios to handle the general makeup market as well as
the targeted niche market.
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Network:
With the help of the merger Lashes and Curls will already have an established network of clients
as well as the suppliers.
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SWOT analysis:
Strengths:
1. Merger with an established makeup studio provides with the resources to expand and
success.
2. The unique set of skills providing the expert services in the specialised make ups.
3. Market segmentation with targeting a very focused niche market.
4. First movers’ advantage with a unique business proposition.
5. Business structure stating that the profit of both makeup operations general makeups as
well as Indian bridal makeups will be shared.
Weakness:
1. Lack of business experience in Canadian market.
2. Dependency on the merger.
3. Niche market restricting to the growth.
Opportunities:
1. Unorganised market spreaded with local makeup artist can provide with an opportunity to
create a brand with specialised makeups.
2. Working in Canadian market can give an opportunity to expand in USA market in future.
3. A company can start its own product line in future with brand engagement.
Threats:
1. Development of competition.
2. Acceptance in the market.
3. Change in consumer taste and preference with respect to makeup products.
4. Dynamic business environment.
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ANNEXURE
https://www.fortunebusinessinsights.com/segmentation/cosmetics-market-102614
https://www.fortunebusinessinsights.com/makeup-market-102587
https://www.statista.com/statistics/538178/registered-indian-population-in-canada-by-region/
https://www.databridgemarketresearch.com/reports/global-cosmetics-
market#:~:text=Global%20Cosmetics%20Market%20Country%20Level%20Analysis&text=Mor
eover%2C%20the%20demand%20for%20cosmetics,presence%20of%20top%20market%20play
ers.
https://www.weddingwire.ca/wedding-makeup/lubu-makeup--e53631
https://www.qcmakeupacademy.com/makeup-licensing-
requirements/ontario/#:~:text=According%20to%20the%20Ministry%20of,to%20become%20a
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https://www.trade.gov/market-intelligence/canada-cosmetics-and-beauty-products-market
https://santandertrade.com/en/portal/establish-overseas/canada/business-practices
https://www.marketingteacher.com/the-international-market-entry-evaluation-process/
https://culturalatlas.sbs.com.au/canadian-culture/canadian-culture-core-concepts
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