Case Detail

Case Summary

Beleza Natural: Marketing Strategies for Empowering Social Change

Case Number: 5-116-002, Year Published: 2019

HBS Number: KE1148

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Authors: Alexander Chernev; Vasilia Kilibarda Funston

Key Concepts

Branding, Entrepreneurship, Growth Strategy, Small and medium-sized enterprises, Social Responsibility, Women in Business, Social impact, Brand management, Service branding, Bottom of the Pyramid, Empowering women, Social change

Abstract

This case features an entrepreneur striving to rapidly grow a successful chain of hair salons that serve women with afro hair. After doubling from 13 to 26 salons across Brazil in 2014, the founders' expansion plan called for 120 Beleza Natural salons and R$1 billion in sales by 2018. CEO and cofounder Leila Velez is considering various fundamental marketing strategies to catalyze growth: Should Beleza launch a new mass-media campaign, increase promotional discounts, expand its target market to serve men, broaden its service offerings, streamline processes to reduce wait times, expand distribution channels, or franchise? Students assume the role of Velez and are asked to recommend which growth strategy would be their top priority. In doing so, they are required to evaluate how these strategies pertain to the company's business model and value proposition. They are also challenged to consider what a brand is and what makes a strong service brand in order to verify if their strategies are consistent with Beleza's brand. The teaching note outlines a framework for developing or evaluating a business model as well as developing strategies for managing growth. The case is accompanied by a series of video interviews with Velez that support case preparation, in-class discussion, and key learning points.

Learning Objectives

The case aims to build and enhance the following student skills: evaluating the viability of a company's business model and developing strategies for growth; understanding the key sources of customer value and developing a sustainable value proposition; building a strong service brand; marketing to the bottom of the pyramid; and creating a profitable, socially responsible company.

Number of Pages: 17

Extended Case Information

Teaching Areas: Marketing

Teaching Note Available: Yes

Geographic: Brazil

Industry: Hair care products

Organization Name: Beleza Natural

Organization Size: Medium

Decision Maker Position: Founder and CEO

Decision Maker Gender: Female