How does an international hair and skin care company replicate its success in the U.S. with a limited marketing team and heavy reliance on paid advertising?
Helping a successful international company cross borders by knowing how to eliminate the internal barriers to growth
CHALLENGE
The company heavily relied on paid advertising and had a small marketing team, which limited its ability to scale effectively. While experiencing accelerated growth in other countries, the company struggled to replicate this success in the highly competitive US market. Compass Rose Ventures collaborated with the company to develop a growth plan that would drive profitable growth and position the company for successful fundraising.
- Dependency on Paid Advertising: The company heavily relied on paid advertising to drive customer acquisition and brand awareness. However, this approach resulted in escalating marketing costs limited scalability and lower profitability due to the higher costs of paid advertising in the US market.
- Small Marketing Team: The company operated with a small marketing team, which posed challenges in managing diverse marketing channels, implementing strategic initiatives, and effectively targeting the US market. The limited resources hindered the company’s ability to achieve accelerated growth and compete with larger players in the industry.
- Profitable Growth in the US Market: Despite experiencing accelerated growth in other international markets, the company struggled to replicate this success in the US. The highly competitive nature of the US market, coupled with the expenses and challenges of customer acquisition posed significant obstacles.
SOLUTION
The hair and skin care industry is highly competitive, with diverse consumer preferences and a constant influx of new products. In this case, the international hair and skin care company found itself grappling with challenges in achieving profitable growth in the US market. Despite experiencing significant growth in other countries, the company’s dependence on paid advertising and resource constraints hindered its ability to scale and establish a strong foothold in the US.
- Comprehensive Market Analysis: Compass Rose Ventures conducted a comprehensive analysis of the US market, including consumer trends, competitor landscape, and market dynamics. This analysis identified growth opportunities, potential target segments, and competitive advantages that could be leveraged to drive profitable growth.
- Strategic Growth Plan: Collaborating with the company, Compass Rose Ventures developed a strategic growth plan tailored specifically for the US market. The plan included a multi-channel marketing approach that focused on optimizing digital marketing strategies, enhancing brand positioning, and expanding distribution channels.
- Brand Refresh & Listening Lab: The lack of sales conversion in digital channels pointed to target audience, positioning, and value proposition challenges in the US Market. An increase in churn was an indication of customer dissatisfaction with the product. Opinions were plentiful across the team for making changes to the brand, product, and messaging strategy, yet the voice of the customer was clearly missing to guide the decision. Compass Rose Ventures conducted an in-depth customer listening lab to uncover the problems to be solved across the funnel.
- Diversified Marketing Strategy: To reduce dependency on paid advertising and improve cost-effectiveness, Compass Rose Ventures assisted the company in diversifying its marketing strategy. This included leveraging organic social media engagement, influencer partnerships, content marketing, and customer advocacy programs to drive brand awareness and customer acquisition.
IMPACT
- Profitable Growth in the US Market: The implementation of the strategic growth plan resulted in accelerated and profitable growth in the US market. The diversified marketing strategy reduced dependency on paid advertising while increasing brand visibility, customer engagement, and conversion rates. The company successfully penetrated the market, expanded its customer base, and achieved profitability.
- Investor Readiness: Compass Rose Ventures’ guidance and the company’s successful growth in the US market positioned it as an attractive investment opportunity. The growth plan provided a clear roadmap for future expansion, highlighting the company’s potential for sustainable profitability and return on investment.
- Enhanced Operational Efficiency: By optimizing operational processes and supply chain management, the company achieved improved efficiency and scalability. This enabled the company to meet increased demand, reduce costs, and enhance customer satisfaction.
KEY TAKEAWAY
When a company wants to expand its business across borders, it needs an objective partner like Compass Rose who can help identify growth barriers and customize a solution that challenges the status quo and allows its growth trajectory to continue in different countries. Adaptability is the international language of expanding business in different countries.
