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Strategic Alliances, Collaboration and Joint Ventures Case Study

Case Title:

Indian Spa Products Maker Forest Essentials’ Alliance with Estee Lauder: A Smart Move for Growth?

Publication Year : 2010

Authors: N Mathen, J Thadamalla, S Hotchandani, A Syed

Industry: Home Appliances and Personal Care Products

Region:US, India

Case Code: SCJ0031IRC

Teaching Note: Not Available

Structured Assignment:  Available

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Delhi-based Indian company, Forest Essentials that manufactured, marketed and sold beauty products was founded by Ayurveda aficionado, Mira Kulkarni in 2000. By 2008, the company emerged as the top spa products maker in the Indian market. In view of the growing opportunities Forest Essentials announced its plans of domestic and international expansion, the company planned to open 35-40 retail outlets across India. Following an increasing demand for natural products in international markets, Forest Essentials, sold a minority stake to the US based cosmetics maker Estee Lauder, with this the company hopes to go global. The case traces the journey of Forest Essentials since inception to growth and provides scope to analyse the strategies adopted by a local company to go international in the burgeoning spa industry.

Pedagogical Objectives:

    This case study aims at achieving the following pedagogical objectives:
  • To analyse the trends prevalent in the Indian spa industry.
  • To understand growth strategies of a small business venture.
  • To analyse the strategies required by a local company to go international.

Keywords :  Estee Lauder, Forest Essentials, Growth of Indian spa industry, Business strategy, Indian spa products, Stress-buster and wellness, Mergers and acquisitions, Opportunities in the Indian spa industry, Ayurvedic and natural ingredient, Competitive scenario in the Indian spa industry, Expansion strategy, Strategic alliance, Yoga in India, Tommy Hilfiger, Aramis

Contents : 
Indian Spa Industry: Overview
Forest Essentials: Profile
Expansion Strategies of Forest Essentials: Alliance with Estee Lauder
Major Types of Spas
Clients of Forest Essentials
Products Portfolio of Forest Essentials

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