Sustainable market penetration strategy for Frantsila Oy in the Japanese cosmetics market

Abstract

This thesis examines the potential for sustainable market penetration of Frantsila Oy, a Finnish organic cosmetics company, into the Japanese beauty sector. The purpose is to evaluate Japanese consumer perceptions, identify structural and cultural barriers to entry, and propose a phased strategy for sustainable and culturally attuned expansion. The research integrates primary data from a structured survey of Tokyo based cosmetics consumers (Appendix 2) with secondary sources on sustainable marketing, brand equity transfer, cultural adaptation, and internationalisation strategy. The analysis applies both theoretical frameworks; including Hollensen’s market entry theory, Keller’s brand equity model, Hunt’s resource–advantage theory, and Peattie & Belz’s triple bottom line; and empirical evidence to assess opportunities, risks, and strategic levers.

Findings confirm that product effectiveness (mean 9.10) and safety (8.8) are the dominant purchase drivers in Japan, while sustainability linked attributes; envi-ronmentally friendly packaging (5.86) and quality of ingredients (5.52); are valued but secondary. Additional measures show that 48 % of respondents rated brand character above 6, 24 % rated brand history above 7, and 52 % rated use of organic ingredients above 6. Key barriers include a trust deficit stemming from brand unfamiliarity, absence from mainstream distribution channels, and the entrenched “heritage trust effect” favouring domestic brands. However, Frantsila’s Finnish heritage, vertically integrated organic farming, proprietary botanical formulations, and commitment to ecological integrity represent difficult to replicate resources that can be leveraged to build credibility and cultural resonance.

The recommendations emphasise: • Drugstore accessibility (preferred by 71 % of respondents) as the primary entry channel to build reach and legitimacy. • Science backed efficacy claims supported by local clinical trials and dermatologist endorsements. • Culturally adapted product innovation, including sensorial adjustments and seasonal limited editions with symbolic Japanese ingredients. • Sustainability integration as a reinforcing narrative rather than the lead message, with potential for circular economy initiatives such as refill programmes.

The report concludes that with a phased, adaptive strategy; beginning with mass access retail for awareness and trial, progressing to prestige positioning, and culminating in portfolio diversification; Frantsila can overcome cultural and competitive barriers to establish a durable presence in Japan. More broadly, the case contributes to academic discourse on the intersection of sustainable marketing, cultural adaptation, and international brand equity transfer, offering a replicable framework for other niche, sustainability-oriented brands entering high context markets.