Originally, L’Oréal creates innovative products that combine quality, effectiveness and safety in every branch of cosmetics: hair-care, coloring, skin-care, make-up and perfume. In France the Group presented sales of 53.4 billion French Franks, over 2,000 different products, with 500 brand names. It operates in over 150 countries.
Plenitude line consisted of 14 different daily and treatment moisturizers and cleansers was promoted in the United States of America (the USA) since 1988. 7 years later the sales of 63.4 million USD were achieved showing loss of 12.5 million USD.
In France L’Oreal was the leading brand on the Beauty and Skin Care market, whereas in the USA in terms of a dollar share:
1) on the moisturizers' market it maintained the second position among other competitors from 1991 to 1993, and then decreased it to the third one (following after Olay of Procter & Gamble and Ponds),
2) on cleansers' market during 1991-1995 years it occupied the last position after all main rivals. (Detailed figures are contained in Appendix 1).
2. Similarities and Differencies in the Strategy Pursued by Plenitude Brand of L'Oreal in France and the United States of America
2.1. Common Charectiristics of the French and the US Strategies of Plenitude
Entering a new market is always a big challenge. And a company should pay attention to how its market strategy can be perceived by the customers and influence their awareness and loyalty to the products.
Inspite of the fact that Plenitude brand products were promoted in two different countries – France and the USA – some similar for both of them features of L'Oreal strategy could be mentioned.
At first, a creation of hi-tech in the Beauty sphere products is of paramaunt importance for L'Orea...
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... in the US is not the same. The majority of the American women can't associate Plenitude with the well-know L’Oreal Beauty lines. Without this strong connection in customers' minds it becomes difficult for them to evaluate the quality of Plenitude products and accept a high price level.
4) customers' perception of Plenitude line.
Compared to France in the USA the line is believed as being suitable and effective only for old-aged women.
5) assistance at the point of sale.
Being well-educated in the Beauty and Health Care sphere the French women don't need to be supervised during the process of a cream purchase while the American women need to be assisted at the point of sale in oder to make a right choice.
6) competitors.
L'Oreal main competitors in the Beauty industry in France are Nivea and Henkel, in the USA – Procter & Gamble with its line Oil of Olay and Ponds.
In Ulta's market, their prestige brands like BareMinerals, Clinique, and Lancôme are the most profitable
Mazal Group was founded in 2007, in Chatsworth, California. They have six main brands and two brands being developed. With their emphasis on cosmetics, they have shown excessive growth in the last few years, opening an average of eight new stores and ten kiosks each year. They have eighty-four employees in their headquarters, up from the initial eight that started in 2007. In 2013, the cosmetics industry in the United States earned revenues of $56.63 billion, with facial skin care representing 27% of the industry (Exhibit 1). CEO, Adi Oded, says, “The cosmetics industry, especially in skincare, is booming. We have all these baby boomers getting older and looking for anti-aging solutions and we are giving them those solutions” (personal communication, June 27, 2014). The cosmetic industry is constantly developing and this in-depth analysis will provide the explanation of why Mazal Group has had so much success in recent years.
The transition to modern consumerism involved not just the introduction of responsible product formulation, but fundamental transformations of social behavior. Women were at the heart of this development in the cosmetic industry, and we will consider the contributions of two of them: Annie Turnbo Malone and Madame C. J. Walker. These women and their contemporaries paved the way for Estee Lauder and Mary Kay Ash in our time.
There are many issues involving L’Oréal Canada and its involvement in animal testing. Many consumers feel strongly about animal testing because it is inhumane, therefore they do not wish to purchase products tha...
However, in 1970 Scope became the market leader in Canada, but it was not the only brand in the mouthwash market, it had many competitors, such as Listermint mouthwash that was launched by Warner Lambert in 1977 and it was a direct competitor to Scope, it had nearly the same characteristics as Scope with a 12% of the market share.
United Kingdom. Gotham. Advertising Standards Authority. ASA Adjudication on L'Oreal (UK) Ltd - Advertising Standards Authority. July 27, 2011. Accessed November 18, 2013. http://www.asa.org.uk/Rulings/Adjudications/2011/7/LOreal-(UK)-Ltd/SHP_ADJ_149632.aspx.
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.
The second direct competitor to Chanel is L'Oréal, the world's largest manufacturer of high-quality cosmetics, perfumes, and hair and skin care products. Although L'Oreal the company doesn't manufacture a perfume it owns the brand Lancôme that produces Tresor a perfume that rivals Chanel. In the chart below, it lists the US female fragrances brand share by value from the 2002 Tablebase data. The chart shows how the Lancôme perfume Tresor, Estee Lauder and Chanel are in relation to each other.
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.
This report is about Procter and Gamble Co., which is a consumer goods company headquartered in the US. However this report focuses on P&G’s perfume brands and cosmetics. The company’s brief introduction followed by the market analysis has been explained. Moreover its competitive environment using Porters five forces has also been analysed. Further analysis include the company’s growth strategies using Ansoff’s Matrix and the company’s drivers of internationalization examined using Yips framework.
The A-Team has introduced a new product called Pepsi Platinum for the company, PepsiCo, in Phase Two. This dissertation will identify segmentation criteria that will impact PepsiCo target market selection. This dissertation will describe the organizational buyers and consumers of Pepsi Platinum and factors that influence their purchasing decisions and discuss how these factors will impact PepsiCo’s marketing strategy. Finally, this phase shall analyze current competitors and define the competitive landscape for Pepsi Platinum.
P&G became the innovator in many large brands, this started with Ivory Soap. P&G boasted that this was the purest soap as well as the soap floated which was a concern of many people in this time. P&G put in a great deal of effort to market the soap in local papers, radio and other forms of media, this was a first effort by any brand to market with “Mass Media”. (P&G, 2014) P&G innovated the way the other brands began to market as well. P&G saw the opportunity to build a relationship between the consumers and product. As the 1900’s rolled around P&G grew into international markets it purchased another soap brand called Fairy Soap, out of England, which also marketed the soap, could float.
After studying the cosmetic market we can identify a series of needs in this market:
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