PEST analysis of Ponds cosmetics market entry into Turkey

Branding

Ponds PEST Analysis

Political

The political environment in Turkey is one that can be defined by relative stability; especially compared to other countries in the geographic region. In 2005, the EU and Turkey began formal EU accession negotiations. Turkey has adopted many European Union directives, regulations and laws in anticipation of accession. While continued delays have cooled popular interest in EU membership, Turkey's political and business leadership remains committed to joining the EU, and the current government understands that the process itself contributes to Turkey's global competitiveness (U.S. Embassy, 2012). The political stability of the country make is a prime target for various exports to Turkey.

Economical

Because of its proximity to the unrest in North Africa, Turkey has been punished by equity investors and as a result the country has gone from one of the best performing emerging markets in 2010 to levels not seen since March 2006 (Business Insider, 2011). However, undeterred by the 2009 global economic crisis, Turkey has managed to flourish in the global market. The Turkish economy is expected to experience robust growth at a13.2% CAGR over the next five years and reaches $1,226 billion by 2017 (Bureau, 2012). Most of this growth has been in the services industry however the total amount of imports has improved as well. The growth has not been experienced across the board and some sectors of the economy are sluggish. However, for a product imported as a low-cost leader this could actually be beneficial for a product like Ponds.

Technological

Turkey is one of the most technologically advanced countries in the region and the use of the internet is exploding; especially in the younger demographics. Half of its 75m people are under 30. Around 44% of Turks use the internet, up from just 14% in 2006 and 3% in 2000. They comprise Facebook's seventh-largest national audience (The Economist, 2012). The high rates of internet users in the country have helped to spur a lot of foreign investment in technology sectors that have also expedited high growth rates. Targeted the target market with an online campaign might be a strategy that is not only efficient but also cost effective. Since the growth of online capabilities have increased exponentially, reaching the youth in Turkey with a Ponds marketing message would represent and ideal marketing platform.