L’Oreal
Introduction
L’Oreal is the largest cosmetics company in the world. It shouldn’t be a surprise that L’Oreal doesn’t sell all of its product lines in every market in which it sells, and the market in the Netherlands is no exception. Upper management of the Netherlands’ L’Oreal subsidiary have to make decisions on which product lines will succeed in their respective market and which ones will falter. In this particular case, L’Oreal needs to decide if it would like to introduce Garneir product lines such as the Synergie skin care line and the Belle Couleur permanent hair colorants line into the Netherlands market. The basic problem is whether or not to introduce these lines into the Dutch market.
Situation Audit
In the Netherlands, unlike in France, L’Oreal and Garneir are both sold under the same sales force. This must be taken into consideration considering that L’Oreal has products in both hair colorants (Recital) and in skin care (Plenitude). Fortunately, the Dutch market maybe able to handle both of these product lines from L’Oreal and Garneir if it is felt that they could both be profitable.
When looking at the Dutch market, the most surprising thing is the youth of population. 40% of the population is under the age of 25. This is an important demographic stat because a lot of younger women are the ones who use cosmetics, but it is important to note that the fastest growing populations are those of age 25 and older which might be important to the market of hair colorants. Another interesting trend is the number of Dutch women who work outside the home with a labor force rate of 29% and it is increasing more rapidly than those of other countries like the United States and the United Kingdom. This is very interesting because these women will have more money, independence, and self-confidence. In these terms, these women will more than likely use more cosmetics because of the increase in time that they spend outside of the home. A final insight into the Dutch market shows that Dutch women tend to shop for value, especially in cosmetics, which needs to be taken into account. The overall Dutch market looks somewhat promising to the introduction of Synergie and Belle Couleur lines, but other factors must also be looked at.
While the overall Dutch market is important in the analysis, the product markets might give a be...
... middle of paper ...
...o use our product because they are out in public and they also have more money to spend on things such as cosmetics. The Dutch women in this market need the Synergie line to give off the idea of a self-concept that can relate our brand image to their needs as a workingwoman. An idea for the advertising campaign could be “You’re working the hardest, shouldn’t you look the best too!” While this product line is marketed towards the workingwoman, the L’Oreal product Plenitude could be marketed towards keeping a youthful look with its ability to delay the signs of aging. The best bet for the profitability of both products is to effectively find a certain image that each consumer can identify herself with. With this, I believe that both products can succeed in the same market and both can have the potential to have large market shares.
Bibliography
Datamonitor, Feb. 2004. Haircare In The Netherlands. Retrieved on April 23, 2005. http://dbic.datamonitor.com.proxy.lib.ohio-state.edu/industries/industry/?iid=Haircare
Datamonitor, Feb. 2004. Makeup In The Netherlands. Retrieved on April 23, 2005. http://dbic.datamonitor.com.proxy.lib.ohio-state.edu/industries/industry/?iid=Skincare
Mercedes Garcia-Arenal main argument is against a claim made by Bernard Lewis, that Morocco in the 16th and early 17th centuries was “a remote and isolated outpost and a comparatively small and weak country” (Arenal 1). She does so in an effective manner by examining the influence of a particular sultan, Ahmad al-Mansur, and how he pushed the country into the forefront of global politics. Arenal succeeds in her argument by first detailing the countries natural resources and inhabitants of the time, followed by Ahmed’s influence once he assumed the throne in 1578.
The most significant weakness for Belle Couleur would be the undifferentiated product that will be introduced to the Dutch market. Although the number of shades of hair color will be reduced to accommodate the limited retail shelf space, the colors offered will not be reformulated to cater to Dutch preferences. The colors available to the Dutch market will be those that have been specifically formulated for the French market. The problem lies in the differences in color preferences of the Dutch and French women. While the French prefer darker and conservative colors, the Dutch preferences lie at the opposite end of the color spectrum, preferring lighter shades. The market research indicated that buying intentions of the Dutch women decreased after the test-use because the color ¡§didn¡¦t cover gray¡¨ or ¡§was too dark¡¨. Moreover, competing local and international brands in the hair colorant market formulate their products to Dutch market preferences.
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.
Recent slow expansion of the company is caused mainly by the limited ways of sale and by the worries about the loss of control in the case of penetrating new markets. The company does not think about any other practices than retail contract sales and refuse the offers from abroad to get MAC products in there. “The demand for MAC Cosmetics is there, but the supply is not. While MAC is one the cosmetic lines highest in demand, finding discounted products is actually not that easy” (Vasen, 2007, p. 1 ) Moreover, there are no media advertisement outside the United States and people often do not even know about the products and their advantages. The statistics show that the leading way to get information about MAC products is via referrals (Bates, 2006, p.
Bullying is defined as “verbal, physical, or psychological abuse or teasing accompanied by real or perceived imbalance of power” and is usually targets what children perceive as different (Olweus, 1993). Bullying is prevalent across the nation. It has devastating effects on students each day. Bullying is a problem for all students, regardless of race, gender or class. The National Education Association reports that 160,000 children are absent intentionally from school each day because they fear being bullied whether it is an attack or just intimidation by other students. This accounts for 15% of all school absenteeism (Hunter, 2012). Dan Olweus (1993) from the National School Safety Center tells us that bullying includes three parts: (1) Unwanted, negative aggressive behavior, (2) the behavior is repeated over time and (3) there is an imbalance of power or strength. One in every seven school age students will be victimized by a bully or will commit the act of bullying. (Hunter, 2012). Statistics show that 10% of students who drop out of school do so because they have experienced repeated bullying at school (Hunter, 2012).
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.
...ed at around 1610. Oral traditions say his 3 sons would engage in a struggle for the throne. The battle for succession was to none’s avail and the Mali Empire never saw a Mansa again. It would split into chiefdoms in the 1700s.
Sephora is working on one of the biggest complaint customers had: lack of ethnic diversity in Sephora Collection products. The company is coming up with more products that will fit all of the skin tones and undertones. Also, several years ago, Sephora’s main target market was wealthy women from 30 to 50 years of age. However, with growth of YouTube and teenagers growing up faster than ever, Sephora should consider targeting girls and women. By expanding their market, they will be able to produce more revenue. Men’s skin and hair care, fragrance products should be available in all of the Sephora locations. It will increase sales, especially during holiday seasons, when people are searching for presents. If customers will be able to purchase gifts for different genders and ages at the same store, they will be more attracted to that particular
The Kingdom of Mali was an African hub of wealth, trade and education for over 225 years. Mali is an Arab version of the Mandinka word that means, “Where the king dwells”, and was vitally important in spreading trade, education, religion and culture along the Niger River. The rise of Mali into an Empire occurred in the early 13th century, when Sundiata defeated his enemies and won control of the West African gold mines. In 1312 Mansa Musa became ruler of Mali. During his reign which was known as Mali’s, “Golden Age”, he introduced Islamic beliefs to many communities along the Niger and enhanced education after his historic pilgrimage to Mecca. Mali’s rise was attributed to the Trans-Saharan Trade routes leading to and from Western and Eastern Africa. These trade routes contributed to the rise and fall of powerful African Kingdoms for hundreds of years, but for 250 years, Mali was the crown jewel of Africa.
Although L’Oreal reached European success, entering into the U.S. market proved much more difficult. In 1953, L’Oreal formed licensee Cosmair Inc. in New Jersey to distribute its hair-coloring products to beauty salons. The company soon realized three challenges within the U.S. market. First, in the U.S. local middlemen delivered products to salons, and L’Oreal had little to no relationship established with this group. Second, L’Oreal hair products were not well known by the salon workers and their clientele and therefore were not purchased and sold much in salons. Finally, the French prestige, which helped sell perfumes, did little for the hair-coloring products.
According to the textbook case study, the main reason is due to the market in the United States for cosmetics are very mature, not to mention extremely competitive. Because of this, Avon made the decision to put its emphasis – and resources – in less-competitive markets. (Daniels, 2010)
...gers he , Ibn Battuta overcame them. Ibn Battuta traveled primarily in Muslim-ruled lands, in comparison to Marco Polo. Both men dictated accounts of their travels after they had returned home Polo, while in prison in the year of 1928 and Ibn Battuta, to a Moroccan scribe, since neither were trained, both Marco Polo and Ibn Battuta judged those they ran into by their own values. Both travels financial records exposed the great variety in Eurasian cultures during the year 1354- 1355. “When a man is riding through this [Gobi] desert by night and for some reason ... he gets separated from his companions ... he hears spirit voices talking to him ...Often these voices lure him away from the path and he never finds it again." This was one of the quotes he had written. This quote describes some part of his travels. He had moved away from people he loved for a few years.
From what historians can gather from Arab oral tradition, the first introduction of Islam into Africa came with Muslim refugees escaping persecution from
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...
Beauty product can be defined as cosmetics; materials and devices made and sold for the purpose of enhancing the physical attractiveness of users or in other words, as any product, especially a cream or lotion, intended to improve a person's appearance . We live in society where people nowadays are very obsessed with beauty and spending so much money on beauty products. Since we were children, the society taught us that beauty is happiness, wellness and everything. This creates a mindset that only attractive physical appearance is beauty, even though ‘beauty’ is a very subjective word where it can apply to many things. It is a rare sight these days to