FOREST ESSENTIALS

Story of the Brand

Abstract
To create an international marketing plan for the brand -
Forest Essentials focusing on the European Union

Submitted by
Rassal Shaji, Regha Raveendran, Riyan Cyril
Sara Jacob & Shilpa Romy
FOREST ESSENTIALS – STORY

Forest Essentials is a traditional, authentic skincare brand which basis its foundations in
‘Ayurveda – the science of life’. The brand is a pioneer in Luxurious Ayurveda, and has
today become an essential Indian beauty brand that interweaves the ancient beauty rituals of
Ayurveda with a stylish, modern aesthetic for a more pertinent emphasis on value, sensorial
experience and pleasure of usage.

Mission Statement

To be the most trusted brand that pioneers the use of Ayurveda to create products that
combine Beauty, Purity and Serenity as a way of life while contributing to the society we live
in.

Philosophy

‘If You Cannot Eat It, Do Not Use It on Your Skin’

The brand believes in being pure, fresh and natural. The company philosophy exalts the belief
that beauty products should be made of living substances such as plants or their extracts,
which are balanced by nature and contains energy that constitutes life. These vital ingredients
contain all the nutritive, purifying and balancing properties required to nurture the skin and
for perpetual beauty. They are in fact the perfect food for the skin.

In Ayurveda it is believed that everything in the universe is formed from the five basic
elements or ‘Panchamahabhutas’. The brand embodies these philosophies by creating
products that appeal to all the five senses. The 5 senses and the brand’s appeal has been
explained below - Sound – The products are made
while chanting mantras, these vibrations are
believed to be absorbed in the product, Touch – The
sensual texture of the product, Sight – The visual
appeal and colour of the product, Taste – The
products contain optimal herb extracts and Smell –
The unique fragrance of the products.

COMPANY OVERVIEW

Forest Essentials was founded in 2000 by Ms. Mira

Kulkarni with an initial investment of 2 lakhs.
Originally, the brand focused on handmade soaps and candles; when these products gained
popularity, Kulkarni decided to expand the product range to skin care and hair care products.

Kulkarni started the business venture after undergoing years of meticulous training from
Ayurvedic physicians. The brand’s product range advocates the holistic approach of
Ayurveda. Beauty care products are produced using naturally distilled essential oils, pure
cold-pressed organically grown vegetables and plant extracts.

Age-old Ayurvedic formulations prepared by ancient scholars are used in many of the herb
ingredients, oil formulas, and Vedic treatments of the brand. This ancient knowledge is
integrated with the biochemist’s perspective to create products that not only espouses the
tradition of the country, but is also easy to use. The brand has built its foundations on the
cultural traditions of the past and has utilised the research and technological advancements of
the future to create a unique blend of products that delight the consumers.

In the present, Forest Essentials, under the parent company Mountain Valley Springs, has
huge portfolio of carefully curated creams and lotions made from natural ingredients like
lemongrass from Ooty, roses from Kannauj and sandalwood from Mysore. The products
ranging from the date and litchi cream to a 24-carat-gold-based Soundarya Radiance cream,
are sold in over 70 stores across the country.

The list of clients the company serves include massive hotel chains like Taj Hotels, The Ritz
Carlton, The Oberoi Group, and The Four Seasons. A lime, tulsi, and narangi range is
specifically produced for The Oberoi Group; Taj Hotels has a special aloe vera and neem
range; and the Marriott features a bitter orange and cinnamon collection. The brand also
supplies to the Rashtrapati Bhavan.

Mountain Valley Springs posted a total revenue of ₹177 crore in the financial year 2017-18,
an increase of ₹137.4 crore from the previous year. The brand currently exports to over 120
countries from across the world. Samrath Bedi, Kulkarni’s son and the company’s executive
director, is confident the brand will work overseas. The brand has already partnered with
luxury giant Estee Lauder, who owns a 20% stake in the firm, to support the global expansion
plans of the company.
STRATEGY & RESOURCES

The skincare market in India is estimated at $1.8 billion, the brand has decided to capitalise
on this and has chosen to expand beyond the metros to open shops in smaller cities like
Indore, Bhubaneswar, Lucknow, and Kochi. Forest Essentials has flourished despite the stiff
competition in the country’s $4-billion Ayurvedic cosmetics market with newer players like
Kama Ayurveda grabbing market share.

As demand has increased, the brand has stepped up the pace of bringing out new products
and increased spending in Research & Development. Earlier the company did not launch new
products frequently, but now there is added pressure to keep reinventing and innovating the
brand. The brand envisions to introduce Ayurveda to the entire world by adding a few
modern touches. The goal is to get away from the old time-consuming process but keep the
benefits and to use the products as per the customer’s convenience.

The company uses lighter textures and pure essential oils as opposed to regular Ayurvedic
products that were often messy and uncomfortable. The brand image espouses a connotation
of luxury. The USP of Forest Essentials has been in making use of products that are light,
pleasurable and utilitarian.
The company’s products are usually
conceived in villages in Uttaranchal, in
the Himalayas using local labour. The
spring water sourced for production
from the heart of the forest, has
therapeutic and regenerative qualities
and has been certified by laboratories
in France as being rich in mineral
deposits, which accounts for its unique
properties. This water is used in all the
Forest Essentials products.  The
name of the brand was derived from
the ingredients that are sourced from
plants, trees and herbs naturally grown
in the forests.

To better source materials for

production, the brand has begun a
project to create gardens for herbs
across India. The company is trying to
aggregate land holdings so it can get a
consistent supply of quality raw
materials.

The capital raised from Estee Lauder

was mainly used to set up a state-of-the-art factory with mechanized production and an R&D
lab in Haridwar. The factory features processes and quality standards followed at Estée
Lauder.

In-process quality control measures the factory meets EU standards while an in-house lab
screens ingredient and product quality. Of an overall headcount of 370 spread across
factories, stores and offices, Forest Essentials has a devoted R&D team of eight, including
chemists, ayurvedic doctors and botanists. This team studies the classic formulations of
ancient India and craft the ingredients in a modern, scientific environment using natural
products like plants, herbs, and flowers.
PRODUCT OFFERINGS

The products offerings of the brand are not crafted for mass markets. From its inception, the
business’s uniqueness lay in procuring and producing best-quality natural ingredients. In a
fiercely competitive market, the brand has been reputed for maintaining an impeccable
quality standard; this invariably leads to rising costs. The brand focuses on four different
categories – body care, hair care, facial care and wellness.
Forest Essentials charges Rs 375 for a bar of soap while a gold-infused facial cream can cost
Rs 3,800. Reasonably, the margins in skin-care products, such as scrub, peel, cream, and
brightener, are higher. Skin-care products have the highest margin at 44.2%, followed by
body-care (29.75%), hair-care (14.3%), and wellness products (11.75%). The brand has also
added a product range for men, including aftershave, facial scrub, moisturiser, and shaving
cream, which contributes 5% to retail sales.

“Forest Essentials has an

emotive appeal and an
emotive quotient which is very
distinctive, which is very
related to the earth. Anything
that has to do with the water,
forest, earth, mud, green,
organic, handmade has got
fantastic potential” - Harish
Bijoor, Brand expert.
ENVIRONMENT ANALYSIS

PESTLE OF INDIA

POLITICAL

● India has a federal form of government and the government is politically stable
● The taxation policies of the government of India are favourable for business
● Also, the government reduced the corporate tax and the current corporate tax rate is
25.17% (2020).
● India government is taking a lot of initiatives for the overall development of the Indian
economy and promote businesses such as Make in India 2025.
● There is corruption prevailing all segments and at all levels which makes things more
complicated and unethical to businesses.

ECONOMICAL

● India's New Economic Policy was announced on July 24, 1991 known as the LPG
(Liberalization, Privatization and Globalization model).
● Indian Economy is estimated to have its Gross Domestic Product (GDP) of 2610.00 USD
billion by the end of 2020.
● The current GDP Growth rate for 2020 is 5.4%, which depicts that the economy is
growing at a considerable pace.
● The per capita GDP is a measure of a country's economic output that accounts for its
number of people. It divides the country's gross domestic product by its total population.
And it is 1900USD for 2020.
● Purchasing power parity (PPP) in India is expected to reach 6610.00 USD by end of
2020. Hence, there is an increase in the PPP.
● Focus Economics Consensus Forecast panelists project consumer price inflation to
average 5.1% in FY 2020, which ends in March 2021. The estimate is up 0.1 percentage
points from last month's forecast. In FY 2021, the panel projects consumer price inflation
to average 4.3%.
● The foreign exchange rate for 2,020, one Indian Rupee is 0.014 USD.
● The Indian economy is one among the largest markets across the globe. Larger the
economy larger is the opportunity for the firms serving them.
● The market is highly competitive in nature.

SOCIAL
● India is a densely populated country with a population of 135.26 crores (2018).
● The average age of the population of India is young.
● 50% of its population below the age of 25 and more than 65% below the age of 35
● The society as a whole is deeply impact by the suggestions and recommendations made
by the social influencers and celebrities. They have the potential to influence and change
the purchase decisions of the consumers.
● The Indian society is a beauty conscious society and fairness matters a lot. The Indian
societies follow an arranged marriage system wherein the beauty is estimated based on
fairness and beauty.
TECHNOLOGY

● India foresees herself as a tech focused and tech driven country and give a lot of emphasis
on the technology and development.
● The year 2020 is expected to open up new opportunities for tech advancement as the
current situation across the globe has pushed the growth and development of virtual
reality, virtual mode of education, shopping, etc.
● The ecommerce segment is well developed and established and is expected to grow
further due to the current covid-19 situations.
● Recently, the e payments have gained a lot of importance and a lot of payment apps has
been established. The online payment system is considered as one of the safe and easy
mediums during the pandemic situation.

LEGAL

● The Indian legal system follows common law. Everyone including the legislature is bound
by the legal system prevailing in the country.
● The beauty or the cosmetic industry is flourishing and the ingredients in the beauty
industry are tricky.
● The cosmetic industry is one among the highly regulated industries within in the country.
The Drugs Controller General (India) regulates the cosmetic industry of India.

ENVIRONMENT

● The consumer behaviour recently has exhibited a shift in choice of the products from
artificial to natural and eco-friendly products.
● The government as well as the other socially responsible organizations are also focusing
on the importance of going green.
● Ayurveda is both a heritage and a tradition. It is considered as a way of living and a
treatment method developed centuries ago. It has deep roots in India and people believes
in it.

PESTLE OF EU
POLITICAL

● The European union (EU) is an economic and political union between 28 countries across
Europe.
● It is a politically stable and peaceful region. They are one among the powerful regional
corporations across the world.
● The main intention or objective behind the formation of such a region is to ensure free
trade and economic policies within EU.
● They also have free trade agreements with a number of countries across the globe. The
main trading partner in terms of export is the U.S. and import partner is the China.
● Almost 70 percent of their imports enter the EU at a zero or reduced tariffs levels,
whereas only about 30 percent has tax barriers.
● The trade policies of the EU are designed in such a way that they are favouring business
to grow and provide more opportunities for the future.
● The EU also provide subsidies to its member countries for their economic growth and
also to support them and to provide better opportunities.

ECONOMICAL

● The EU can be broadly categorized as a single market space as there is free trade between
its members. This provides a huge opportunity to access a large population, broadening
the market.
● The EU is a common currency region with Euro (€) as their currency. This makes trade
between the members much easier as the business are not really affected by currency
fluctuations.
● Also, the EU accounts for about 500 million consumers and 21 million SMEs based on a
survey on EU for 2019.
● The Gross Domestic Product (GDP) of EU in 2018 was $18.8 trillion.
● The economy is expected to attain a GDP growth rate of 4.1% based on the forecast by
the year 2021.
● As there is free trade and economic corporation the economy is highly competitive in
nature.

SOCIAL
● The European Union has a shared and rich cultural heritage.
● Youth unemployment is one of the social issues that the region faces.
● The average population of EU is an ageing population. Also, they give more importance
to health and health care.
● The total population of EU is about 448 million in the year 2020. Out of that 51.2
percentage are the women based on a survey conducted in the year 2011.
● The society as a whole is deeply impact by the suggestions and recommendations made
by the social influencers and celebrities. They have the potential to influence and change
the purchase decisions of the consumers.

TECHNOLOGY

● EU can be considered as a scientific powerhouse and is a tech driven region. The

consumers are technology conscious and look upon to advanced technology.
● The ecommerce platforms prevailing in the region are usually from the U.S. or China.
They lack an ecommerce platform of their own.
● More of the customers opt for online shopping and e payment options.

LEGAL

● The European Union has legal personality and as such its own legal order which is
separate from international law. The legal order is usually divided into primary legislation
(the Treaties and general legal principles), secondary legislation (based on the Treaties)
and supplementary law.
● The ingredients in the beauty care industry are tricky and EU has banned almost 500 out
of the 1300 ingredients.
● Also, the Cosmetic Products Regulation oversees the cosmetic industry within EU and
ensures the quality of the product.

ENVIRONMENT

● The consumer behaviour recently has exhibited a shift in choice of the products from
artificial to natural and eco-friendly products.
● The government as well as the other socially responsible organizations are also focusing
on the importance of going green.
● Ayurveda is both a heritage and a tradition. It is considered as a way of living and a
treatment method developed centuries ago. It has deep roots in India and people believes
in it. The Europeans has recently shown a positive approach towards nature and treatment
methods like Ayurveda

Based on the PESTLE analysis, EU is politically, economically, socially, technologically and

environmentally favourable. However, the legal factor is not favourable (legal compliance).
INDUSTRY ANALYSIS
PORTERS FIVE FORCE MODEL
Threat of new entrance

● The threat of new player entering the market is low as there is lot of legal compliance
that a company need to adhere to for entering into cosmetic industry. Also, they need
certification from the governing body where they are planning to entre.
● The cosmetic industry is a capital intense industry as lot of researches and analysis
needs to be done before inventing or altering a product.
● The organization entering into the market need to have a strong R & D and necessary
capital to cover up for it.
● As there is a number of competitors competing, it is difficult for a new player to gain
market share.

Bargaining power of supplier

● The bargaining power of supplier is Low as there is high competition and multiple
players in the market.
● High competition prevails in the market as the top brand across the globe has both
market presence and higher market capitalization.
● The players tend to maintain a long-term relationship with their suppliers to reduce
the bargaining power of suppliers.

Bargaining power of buyer

● Higher as there is high competition prevailing in the market as the top brand across
the globe has both market presence and higher market capitalization within the
market.
● Growing demand for natural products has increased drastically over the past decade.
● Close substitutes are available in the market with slight deviation in terms of
composition and the usage.
● The switching cost for close substitute is low as the competition is fierce and there is
only slight deviation between them in terms of composition and the usage.

Threat of substitution
 ● High threat of substitution exists within the market as there is multiple number of
international brands competing against each other.
● The switching cost for close substitute is low as the competition is fierce and there is
only slight deviation between them in terms of composition and the usage.
● The market exhibits trends of higher levels of brand loyalty as the premium brands
prevailing in the market.

Rivalry among existing competitors

● High competition prevailing in the market as the top brand across the globe has both
market presence and higher market capitalization within the market.
● Many international brands have market presence and competing against each other for
market capitalization.

Based on industry analysis, the market exhibits higher levels of competition between the
players making it difficult to sustain for a new player. The sustainability of the new entrance
is determined by levels of brand recognition in the international market.

SWOT ANALYSIS
STRENGTH

● The brand has strong heritage and tradition.

● Ayurveda is both a heritage and a tradition. It is considered as a way of living and a
treatment method developed centuries ago. It has deep roots in India and people
believes in it.
● The Europeans has recently shown a positive approach towards natural and organic
treatment methods and products in Ayurveda.
● The product quality of the products is higher and are made based on the processes
defined in Ayurveda.
● The packaging used by the brand gives a luxurious feeling to its customers.
● The brand also has partnered with premium brands to increase their visibility and
market presence.
● The products of forest essential has greater acceptability due to their online website
presence.
● They assure a unique production process as the product are made based on the
processes defined in Ayurveda.
 ● The product offering of the brand is unique as they are made based on the processes
defined in Ayurveda.

WEAKNESS

● The brand recognition in the international market is negligible as they have less
presence in the international market.
● They follow a high pricing strategy and compete in the premium level.
● They do not have any international expertise as they have negligible presence in the
international market.
● There is a need to attain certification from various regulatory bodies abroad to enter
into various international markets and it is difficult for an Indian brand to gain that.

OPPORTUNITY

● Growing demand for natural products has increased drastically over the past decade.
● The demand for heritage and traditional product has increased drastically over the past
decade.
● Expansion and exploring into various new international markets can gain them more
revenue and market capitalization. Also, they can gain better international market
expertise.
● They assure a unique production process as the product are made based on the
processes defined in Ayurveda.
● Social media presence is yet another parameter that can gain a better visibility in the
international platform.

THREAT

● High competition prevailing in the market as the top international brand across the
globe has both market presence and higher market capitalization within the market.
● Forest essentials have low brand recognition in international market due to their
negligible presence.
● They need approval from various international and foreign regulatory bodies.

Based on SWOT, they have a luxurious, quality and unique product with heritage and
tradition. There is a huge opportunity but it’s difficult to sustain as they do not have any
international market expertise.
BRAND STORY AND EXPERIENCE IN A NUTSHELL

SEGMENTATION AND TARGETING

 According to Wikipedia, 51.2% of the population of the European Union in 2020 comprises
of women. This demographic shows a huge potential for a brand like Forest Essentials.

POSITIONING –
Forest Essentials will be positioned as a premium, luxurious Ayurvedic brand which focuses
on traditional Indian formulations for Holistic Beauty

LAUNCH TIMELINE & DISTRIBUTION STRATEGY

Planning to launch in London UK as there is a huge Asian community belonging to the

Indian subcontinent with high per capita income hence that is a potential market and later in
other European Union countries. Forest essential is having a partnership with Estee Lauder
hence will have access to their in- house distribution network, supply chain and logistics and
sales and marketing team which is well established and have a strong presence in UK and
other Europe Union with the largest distribution penetration in the UK.

MARKETING MIX

PRODUCT – The product portfolio comprises of Makeup,

Facial Care, Body Care, Hair Care, Wellness, Collections,
Gifts, products for Hotels & Spas and customisable creams.
All the products will comply the EU labelling and
As part of the initial launch only fast-moving SKUs or best
sellers will be sold in retail stores.
The company manufacturing plant follows the EU
packaging and labelling criteria; the brand has completely
eliminated shrink wraps used earlier to protect bottles in
transit reducing the plastic usage by 70% - these efforts can
be communicated to the consumers. Furthermore,
packaging of select products has now transitioned in
recyclable, re-usable PET bottles and glass jars.

PLACE– The partnership with Estee Lauder ensures that Forest

Essentials have access to prime and exclusive retail space in UK
and other European markets that can operate as either a stand-
alone store or share joint space with other sister brands.
Estee Lauder has a market penetration in the UK similar to that
of ITC’s distribution and reach coverage in India.
Moreover, Estee Lauder has strong Annual Term of Trade
contract with most supermarket chains. Hence product visibility
will not be an issue.
The strong presence of the company in American Hotel Chains
and Spas such as Hyatt, IHG Group and Radisson gives the
company a strong leverage when compared with the British and
European Hotel chains.

PRICE – The pricing strategy used would be the skimming

price strategy where most stock keeping units would be
having higher price due to the value these products offer to
the consumer in terms of the luxury skincare and ayurvedic
experience. A premium price will be set fir the various
offerings to uphold the luxurious positioning. For weddings,
events and for festival occasions Forest Essentials can adopt
a bundle pricing where a combo pack of fast-moving SKUs
from various categories are sold at a lower rate than if
customers buy them individually.
PROMOTION – The company has a strong digital presence; this can be bolstered by hiring Victoria Secret
Models and participating in Paris and Milan Fashion Week to attract Caucasian women.
Moreover, strategic establishment of Forest Essentials in close proximity to prime retail spaces such as
London’s Bond Street can bring in a huge crowd. The packaging of the products is eco-friendly and beautiful
to look at. Each product’s packaging is designed with care to appeal to the unique tastes of the masses. The
packaging depicts luxury, vibrance and beauty – it is richly populated with designs related to the Indian
culture – harbouring a sense of authenticity in the minds of the consumer.
The in-store layout, the behaviour of the sales personnel all evokes the charm and heritage of India, elements
of luxury, royalty and Ayurveda are highlighted to create a sensorial experience for the customers.
Videos which feature the brand’s story, the beginnings and the unique processes of making the products can
be featured in popular sources to emphasise the brand image and credibility.

SITUATIONAL ANALYSIS
Forest Essentials is looking at international expansion in the year 2020-21, the partnership it has
established with Estee Lauder will help the brand to strategically use the global distribution, resources
and expertise in operations of the cosmetic conglomerate. The brand envisions to become ‘ The global
leader in luxurious Ayurveda based on traditional Indian formulations for Holistic Beauty’, by being
the first Indian company to succeed in prestige skincare positioning. Currently the firm provides
services to over 120 countries across the globe through its online portal, and it has been observed that
the sales have been doubling each year for the past 3 years. This showcases that there is a growing
interest in Ayurvedic and natural skin care products globally, this demand is what the brand aims to
capitalize.

The brand believes that post the pandemic, the world will be more concerned about the quality of the
products they are buying – especially personal and skin care products. This shift will boost the
demand for high-quality and natural beauty products which are credible and trustworthy. Forest
Essentials has carved out a niche for itself by offering Luxurious Ayurvedic products of high-
quality and wants to gain the first-mover advantage in this segment, in the international
context. Targeting the Asian and European who belong to the higher income segment, and
who wants to experience the luxurious Ayurveda at their door-step.

Competition will come from brands like Kiehl -which focusses on creating healthy skin,
scientifically formulated to repair the skin for more radiant, healthier and youthful skin. This
brand supports a variety of charities and organisations. L’Occitane - which offers natural
beauty products and organic cosmetics inspired from the south of France art de vivre and
Provençal beauty secrets and Molton Brown an understated, metropolitan luxury brand which
uses natural and rarefied ingredients in its products and associates with luxury spas and
world-class.

OBJECTIVES

The brand focuses on creating an experience for the customer. To develop products that are
of high-quality, which offers superior value. For this the brand invests greatly in the
ambience of the store, the employees and in research and development. Forest Essentials is
keen on becoming a global leader in luxurious Ayurvedic products; the brand wishes to
replicate the success it has enjoyed in India across the world. The brand wants to essentially
make the world aware about the rich cultural heritage of the country which is rooted in
Ayurveda, it wants to design products that integrate the benefits of Ayurveda with the
modern practices. To offer customers products that are good for the skin – the brand takes a
holistic approach to beauty.
STRATEGY & TACTICS
The brand has to effectively use Ayurveda as a key differentiator from its competitors. Forest
Essentials has a unique story to sell, the brand is deeply interwoven with the cultural ethos of
India and this story has to be promoted in the European markets. The mystifying and
beautiful appeal of the brand has to be used to attract the potential customers.
The brand has to leverage the sales force optimally, bring in a sense of belonging. The
company can allow consumer-facing teams to meet the people making the lotions and beauty
potions, learn more about all products and experience themselves before selling the product.
The space where the products are sold should be set up to captivate the consumers, it should
pique their curiosity and give them the authentic feel of the rich cultural heritage of the
country.
The products are designed following all the safety standards and procedures dictated by the
EU, this should be highlighted to the customers. The brand should guarantee top quality and
ensure that safety of the consumer is of top-priority.
The brand should also critically analyse the needs and wants and culture of the European
countries before launching or featuring products – this would ultimately give an idea on what
sells and what does not sell in the market.

MODE OF ENTRY
Beyond importing, international expansion is achieved through exporting, licensing
arrangements, partnering and strategic alliances, acquisitions, and establishing new, wholly
owned subsidiaries, also known as greenfield ventures. Each mode of market entry has
advantages and disadvantages. Firms need to evaluate their options to choose the entry mode
that best suits their strategy and goals.
1

Based on the external, industry and internal analysis it is evident that there is high
competition within the EU market and also forest essential has lower visibility in the
international market.

The various entry modes are evaluated based on the risk, investment, visibility, market
expertise, degree of ownership and control:

Table 1: Entry mode strategy

Entry mode Risk factor Investment Visibility Market Ownership Control

expertise
needed

Exporting Lower Lower Least Lower Least Least

Licensing/
Franchising
Lower Lower Least Lower Least Least

Strategic
alliances
Low/ Low/ Moderate Low Moderate Moderate
Moderate
Moderate
Joint
Venture
Moderate Moderate Moderate Low Moderate Moderate

Wholly
owned
High High High High High High
subsidiaries:
Acquiring
wholly
owned
High High High High High High
subsidiaries:
Green field

1 Source: Root (1994) Entry strategies for international markets

For FOREST ESSENTIALS
Table 2: Forest Essentials

Parameters Forest essentials

Risk factor Low

Investment High
Visibility Low
Market expertise Low
Ownership High
Control High

On considering both the tables, it’s evident that we go with a strategy with moderate risk,
higher investment, high visibility, low market expertise, higher ownership and higher
controls.

The best optimal choice is a strategic alliance or a joint venture.