Distributor Request Letter And Marketing Proposal

Distributor Request Letter

To,

Distribution Manager

Makeup Revolution London

Subject: Application for Distributorship in Turkey

Dear Madam/Sir

Advo Limited is interested in becoming a distributor of your goods in Turkey. Our business has been operating in Turkey for the last seven years with remarkable market share, profits and growth. Hence, the management of the company has a good understanding of the country’s market conditions and customer demand.

All of our company’s records and accomplishments are attached to this letter for your perusal. My company’s year-round sales are bolstered by a group of dedicated employees who have received extensive training and have years of expertise in the industry. Because of this, I can guarantee that our organisation will give the greatest possible services and support to help you market your items in Turkey.

In regard to this letter, a short proposal for a marketing plan is also attached with this letter that will help you to get a brief idea about the distribution of the cosmetics in the cosmetics market in Turkey now. For further information, do contact at: email@gmail.com .

Sincerely Date

Name of Manager

ADVO limited

Proposal for Marketing Plan

For the sales of Cosmetic products in Turkey, this marketing plan will describe the methods and strategies that can be adapted to target the customers in the selected market by ADVO Limited.

Report and analysis of Industry

According to an article, the growth of the cosmetic industry in Turkey was 18% in 2018 and it reached 11.30 billion Turkish Lira (Beautyeurasia, 2018). In regard to this, the below-presented figure reflects the demand for cosmetics products in Turkey:

Figure: Demand for Cosmetics in Turkey

(Source: Statista, 2022)

The above-presented figure reflects that there is enough demand for cosmetic products in the Turkish market which means a company that is offering quality cosmetics to customers can easily make a place in the market for their products.

Further, another article by Statista reflects that the retail cosmetic industry of Turkey is in a growth position since 2011 and it is estimated that the demand for this product will be reached approximately 2.3 billion U.S. Dollars by 2023 (Statista Research Department, 2021).

Further, the retail sales of cosmetics in Turkey are rapidly increasing in the country due to the growth in the performance of the supply chain networks (Beautyeurasia, 2018). It means the flow of the goods from the warehouse to the retailer and customer can be done effectively.

Consumer behaviour

According to an article published by Aydin, Alazma and Cora (2020), it can be said that there is not any direct information related to consumer behaviour and its relationship with cosmetic product selling. In regard to this, it can be stated that the customers in Turkey spend huge money on the purchase of cosmetics products. From this research study and the above-presented figure, it is clear that there is a positive consumer behaviour for the cosmetic products that is a good sign for the company to sell the products after signing the distributorship contract.

Market Segmentation

For the segmentation of the market, the followings are some process that is used by the company to always select the right customer for the right product. Followings are the market segmentation that is:

With the help of the above-presented table, Makeup Revolution London can effectively target the rising demands for cosmetics in Turkey.

Age of Target Market

In Turkey, 67.1% of people belong 15 to 64 years age group which means the company has a larger market segment for its cosmetics products. It is because few cosmetics products like perfumes, talcum powder, and face crème are used by both genders in societies. Therefore, the company may target both genders for its products. Further, it is also stated that 28,803,264 females belong to age groups of 15 to 64 which means the company may easily get the right customer base for its products (countrymeters, 2022).

SWOT analysis

This analysis is done to explore the internal and external situation related to the industry that helps in defining the capacity to attract customers. Regarding this below is the SWOT analysis

The main strength and weakness of the Cosmetic industry in Turkey depend on economic growth. As per the below-presented figure, it concluded that the GDP growth of the country is fluctuating which means the growth of the industry also varies from such growth in GDP. As per the present situation, it concluded that the cosmetic market is rising which is a great opportunity for the Cosmetic organization. But it is also predicted that the market in Turkey is growing but at a slow speed, which means the larger profit cannot be earned by the organizations at an early stage. Further, the strong competition in the market is also affecting the market share of the cosmetic industry. Therefore, quick success from the company in the market of Turkey is not possible.

Figure: GDP Growth in Turkey

(Source: World Bank national accounts data, 2022)

As per the above-presented analysis, it can be stated that Advo Limited can be a good partner for your company to sell products in the Turkey market because:

• Market analysis capacity and segmentation of customers as per the product’s nature;
• An existing marketing channel, partners and marketing infrastructure
• Skilled marketing personnel and enough workforce

Competition

In Turkey, the cosmetic industry is led by many global companies. Among them, Avon, Procter and Gamble, Unilever and L’Oreal are a few global companies that are serving customers due to their global brand image. As per their regard, it concluded that Advo Limited can easily sell the products of your firm with the help of your global image that will not only help the company to earn money but also customer loyalty for their products. But it can be also stated that competition in the market is huge which means profit-making can be a tough task for the company. Therefore, Advo Limited will use a co-branding strategy to sell cosmetic products through the help of rising women brands in the local market that will help the company to get an attractive growth in the market. This strategy is helpful for the company to sell its products along with other women product brands in the market.

Risks

Entering the Turkish cosmetics business at this time might be seen as a high-risk proposition. Because the economy is in decline, people are no longer as interested in the items as they once were. Some foreign brands are already available on the market, which is a bonus. Regarding this, we will give discounts to customers on their second purchase that will be managed by reducing the marketing budget by focusing on only promotional and marketing activities.

Conclusion

Even though there are significant dangers, it is apparent that the Turkish cosmetics sector offers tremendous potential for new entrants. Developing an effective marketing plan may assist a firm in securing a stable position in the Turkish market.

References

Aydin, S., Alazma, R. and Cora, H. (2020). The Influence of Price, Brand, and Store on Turkish Women’s Purchase Intention in Cosmetics Market. Turkish Studies – Economics Finance Politics, 15(4), pp. 1879-1898.

Beautyeurasia. 2018. TURKISH COSMETICS & PERSONAL CARE MARKET ROUNDUP: 2018. Retrieved from https://beautyeurasia.com/Articles/news-article-1

countrymeters (2022). Quick facts about the population of Turkey. Retrieved from https://countrymeters.info/en/Turkey#:~:text=Demographics%20of%20Turkey%202021&text=This%20is%20an%20increase%20of,the%20population%20increased%20by%20452%2C087.

Statista Research Department. (2021). Industry revenue of “retail sale of cosmetic and toilet articles“ in Turkey 2011-2023. Retrieved from https://www.statista.com/forecasts/413912/retail-sale-of-cosmetic-and-toilet-articles-revenue-in-turkey

Statista. (2022). Which of these body care and cosmetics products do you use regularly? Retrieved from https://www.statista.com/forecasts/1003031/personal-care-product-usage-by-category-in-turkey

World Bank national accounts data (2022). GDP growth (annual %) Turkey. Retrieved from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=TR