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L'oreal case study analysis
L'oreal case study analysis
L'oreal case study analysis
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Problems/Issue Identification:
The case to consider is L'Oreal Nederland B.V. The birth of the L'Oreal began back in 1907 when, a young French chemist, Eugène Schueller, developed a new hair-color formula that was considered to be safe for hair. The new hair dye was named Auréole. "Eugène Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers. In 1909, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France"), the future L'Oréal. The guiding principles of the company that would become L'Oréal were put into place from the start: research and innovation in the interest of beauty."(Wikipedia, L'Oreal) By 1920, this developing company employed 3 chemists and by 1950, the research team had grown to a 100 and has continued to grow to nearly 2,000 today. "L'Oréal got its start in the hair-color business, but the company soon branched out into other cleansing/beauty products. L'Oréal now markets over 50 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, styling aids, body and skin care, cleansers and fragrances. They are found in all distribution channels, from hair salons and perfumeries to hyper- and supermarkets, health/beauty outlets, pharmacies and direct mail." (Wikipedia, L'Oreal) From the very beginning L'Oreal was founded on strong research and development techniques and today it has five worldwide research and development centers. "Two in France: Aulnay and Chevilly. One in U.S.: Clark, New Jersey. One in Japan: Kawasaki, Kanagawa. In 2005, one established in China: Shanghai." (Wikipedia, L'Oreal)
The Netherlands L'Oreal subsidiary is facing the new challenge of introducing two products under the Garnier name brand (a product line under L'Oreal) in order to start building up customer awareness in that particular region. According to our text, both products have been marketed successfully in France and the director, Yolanda van der Zandle needs to make the decision of whether or not to market one or the other or both (Cravens, 2002, pp. 135). Some test research has been done in the Dutch market so she is asking her marketing manager, Mike Rourke to review these test results and get back to her with his recommendations.
Analysis/Evaluation/Recommendation:
The first product to consider is the Synergie skin care line. The following criteria were to be examined; (1) Skin Care Market (2) Competition (3) Consumer Behavior and (4) Market Research.
As each product has its own unique segment, target market, and symptoms relief, those differences are going to be essential to promote each product value to prevent cannibalization. Thus the best advertising agency was selected to provide us the best response.
There has been some controversy regarding L’Oréal Canada and their use of animal testing in their cosmetic products. For certifications regarding safety, we currently possess 86% of manufacturing facilities that are either OHSAS 18001 or VPP certified. (L’Oréal Canada, 2014) Safety is a priority for us at L’Oréal Canada to ensure that our products are safe for our consumers so that they can enjoy the beauty of our cosmetic products. Health Canada has stated that science has not advanced to the point where they feel comfortable banning animal testing in the cosmetic industry, but that animal testing is not required for cosmetic products. (Bendall, 2011) However, the European Union has recently passed a Cosmetics Directive in 2009, which bans the use of animal testing in the cosmetic industry. The Cosmetics Directive bans the testing of finished products, ingredients within a product and the marketing of a product that has been tested on animals. (European Commission, 2014) As a result of these changes in Europe, it is important for L’Oréal Canada to consider alternative methods to animal testing for business to continue with countries in Europe, and so that consumers will feel more positive about purchasing our products due to them being cruelty-free.
P&G was founded in 1837 by William Procter and James Gamble as a maker of soaps and candles. P&G was known in Corporate America as a company to be admired and imitated. In addition, it was envied for its profitability as well as strong brand name. P&G has a long standing reputation as having life long employees. This dedication and loyalty by P&G's employees created the notion that outside sources were unwelcome and all products and ideas must come from within, however, this is not the way of the future.
Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
MAC (Makeup Art Cosmetics) is originally a Canadian company that has been operating for more than 20 years and it has already penetrate to many countries all around the world, in the North and South America at most. It sells brand cosmetics of high quality that is intended for professional as well as everyday usage. The brand is sought-after also by many celebrities, fashion models, and photographers because of its delicate texture, huge choice of colors, and durability. The products are usually very well tolerated on every skin type and MAC make-up items are also suitable for women with sensitive eyes (MAC, 2007, p. 1). The prices of the MAC cosmetics are comparable with other high quality world brands, i.e. those which cannot be bought in drugstores, but in the specialized cosmetic stores or international perfumeries that the company has a contract with. That hinders the company from further expansion into other countries, mainly in Central and Eastern Europe, because of the limited ways of sale.
When L’Oreal planned to release Plenitude in the US market, it is assumed that what would be successful for the French market would translate to the same success in the US market if the same formula was applied.
In this case, first of all, the product will be evaluated focusing on the unique features of the new product introduced. Basically, it can be asked whether or not deodorizing socks appeal to consumers in the traditionally price competitive socks market in the U.S. Second, the market situation will be examined. There was already a company which manufactured deodorizing socks, and promoted deodorizing as a product characteristic. So, it is important to ask how to make effective price strategy, and attempt to know the unique aspects of competition in the market. Finally, as we know, what is the most important question they should ask is how to make consumers aware the "brand." For Chipman-Union, brand awareness is one of the most important objectives they should achieve. To do this, communication strategy should be carefully examined.
Overview NARS Cosmetic is a cosmetic company founded by Francois Nars in New York, US in 1994 (Hollywoodnoirmakeup.com, 2012). It is considered as one of the best-selling cosmetics and skincare products company in U.S.A, Canada, Korea, Japan, and Taiwan (Shiseido Co., 2014). Since the demand for cosmetics is growing every year and people are looking for more quality products, the company decided to open a new branch in the Middle East to have more customers and to satisfy them by making the NARS product more easily accessible. The aim of this paper is to indicate the best country among the GCC to open a new NARS Cosmetic branch by studying every country’s feasibility of a new cosmetic branch. We hope this expansion can please our customers and make better reputation in GCC countries,besides increase our profit.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
The success of these products against each other has to be predicted using the newspaper articles provided. The demand and sales estimates of these products along with the customer perception of the product needs to be projected and ranked between each product.
The topic of research on animal testing in the cosmetic industry has long been a controversial and prominent topic. While some believe that it is necessary to test the products on animals before trying them on humans, the others stand by their support for the animals. Even though many major cosmetic companies have claimed to discontinue the practice due to new alternative ways, it still continues around the world. Companies like L’Oreal, Lancôme, Max ...
Procter & Gamble are responsible for producing a good percentage of the world’s best-known brands of household needs, health care, personal care, and baby care. Consisting of 25 brands, each an annual revenue of $1 billion, and an additional 15 brands that pull in $500 million annually, Procter & Gamble overall makes $84 billion each year through both brick-and-mortar stores and online stores in 180 nations. As Procter & Gamble’s products are virtually all convenience-related, distribution market coverage is widely used by the firm. Their products are carried amongst supermarkets, drug stores, and other similar franchises. Because of limited space on store shelves, not all products can be available at the same time. As a result, Procter & Gamble’s products compete for space not just with other rival firm brands but also the store brands themselves. Ways that Procter & Gamble rectified this issue is (as an example) making a distribution agreement(s) with companies
The US and Western European markets are reaching saturation- therefore cosmetic companies see the future markets for their products in Central and Eastern Europe, Chi...
In discussion, it were suggested that the individual him/herself, should approach the dermatologist to do skin checkup, and get suggested the right skin care and beauty products; and the products should be avoided for any skin allergies. This is a better way where the consumers will have a better idea of what needed by their skin and they can consider this when buying beauty products and also to avoid overspend. The consumers also should check for the review of users of the beauty products they planned to buy and visit the government website to check the registered and certified beauty products; and also to report the uncertified one for the government to take action. It will make people aware of brands that do follow the rules set by government and have less side