Natural Beauty Ltd.
Natural Beauty Ltd is a business which manufactures and markets a range of premium-priced toiletries and beauty products with a ‘no animal testing – natural ingredients’ positioning. Distribution is direct to the customer via catalogue ordering. The business was started some eight years ago and after enjoying early success now employs 11 people. It recognises its success and is ambitious for growth. Maggie, a member of the firm’s ‘commercial team’ (the business is run on a co-operative basis and prefers not to define formal management roles), has approached an undergraduate consulting team to assist the business and help it formulate its expansion plans.
During an introductory meeting with the consulting team, Maggie explains that the business feels it has a worthwhile product with good potential in the marketplace. There is a general feeling, however, that the present approach of the business – direct marketing in the UK – is largely saturated: there is no room for further growth. If the business is to grow further it must take a different approach. There is a lot of debate within the commercial team as to the best way forward. Two options are emerging from the discussions.
The first is a move from direct marketing into retailing in the UK, possibly on a franchise basis. The second option is to expand the direct marketing approach into Continental and Eastern Europe. Maggie admits to preferring this option. Despite the fact it will mean finding partners in Europe to act as agents, she feels it is the lower-risk option. She asks the consulting team to evaluate both options on behalf of the business and make a recommendation as to the best way forward.
Q1 which of the outputs discussed in this chapter might be involved in the final consulting project that can add value for Maggie and Natural Beauty Ltd?
Q2 Consider the nature of the consultant–client interaction for the project.
Q3 What are the costs, both direct and opportunity, that the client might face in taking on a consultant?