L’Oreal of Paris: Bringing “Class to Mass” with Plenitude
L’Oreal, a long time hair care, skincare, and cosmetic leader, was faced with a positioning problem of their Plenitude skincare line. The Plenitude line, which included cleansers and moisturizers had been a smashing success in the French skincare market following its 1982 introduction and was introduced in the U.S. market in 1988. It had grown quickly to become the #2 brand in the market, behind Oil of Olay. Plenitude was marketed as an upscale product bringing new people into mass channels from department stores. A four-year sales plateau was reached and their #2 position was lost to Pond’s. Carol Hamilton, Senior Vice President of Marketing for the L’Oreal Retail
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Acceptors of Oil of Olay found it to be light and reasonably priced where acceptors of Pond’s saw it as reliable, accessible and reasonably priced. Oil of Olay was seen as the traditional, generational brand where Pond’s brand imagery was older, down-to-earth. The Shelf Shopping Study for Plenitude revealed positive aspects that included appreciating the continual release of newer products and research and the multiple product line. The negative aspects were primarily based upon the large product line that continually offered new products creating confusion and frustration. The same study for Oil of Olay revealed the brand image to be seen as old fashioned but with long standing reliability. The brand image of Pond’s was viewed as being really heavy and “gross” and as a product for “old ladies”. The L’Oreal name is considered as a step up and as having a French twist. Often times, it is viewed as being really expensive with packaging that is chaotic and complicated. However, the extensive detail and information was considered an attribute to some customers. Based upon all of the above information they can develop their strategy. My proposals are as follows:
1. Straddle their positioning by creating a “best of both worlds” targeting young and older consumers. They need to continue marketing their Plenitude treatment products to the older consumers but also
their future. To succeed in moving forward they must develop a strategic plan with well
Coracle, being a new brand should first adopt a push strategy since there is low brand loyalty and low brand awareness. This will generate exposure and encourage distributors to stock up on Coracle. Only 25% of consumers understand and use clarifiers regularly. This shows that there is low involvement in purchasing decision and perhaps an impulse item as a residential clarifier. And thus a push strategy is a good way to promote the product. However, since product benefits are not well understood by consumers, Soren can also adopt a pull strategy in communicating the actual value of Coracle, and let consumers know about the annual EVC rather than unit cost. It is hard to promote Coracle to the distributors since they understand that low annual cost of Coracle comes
There are several strategic options that need to be considered in order to fully address the
For a number of the challenges associated with aging, consumers can find a helpful ally in the many manufacturers and product designers who are catering to "niche markets" (gearing their products specifically to address age-related needs) and enhancing their traditional products targeted to seniors and older boomers.
Two basic strategies or concepts are found in part three – “Basic Strategy: How to
Though our product could also reach the smaller market of younger people that take medications
The portfolio role for Olay from a P&G perspective can be described as a cash cow. As Olay is a market leader in the skin care product category and has consistently held a similar market share. However, the category is getting more competitive and Olay’s positioning
To strengthen the value proposition of Plenitude daily cleanser and moisturizer, the company can create promotional campaign for those particular products. For TV advertising, they can show three women from different generation, 20s, 30/40s, and 50s who enjoy their life for having great skin. They are laughing together, spending time together, and sharing the secret of beautiful skin together, because they use L'Oreal Plenitude. At the end of that TV ad, the company can emphasize the product message "L'Oreal Plenitude Perfect Skin for Every Woman." For print ad, the
Reduce information in packaging and advertisement, use common terms that is easily understood. Packaging and Advertisement should focus in L’oreal name.
Answer 2. The first problem that is going to arise while implementing the strategy is the resistance form the divisions, so it is required to convince the departments
In the highly competitive Japanese skin-care market, P&G¡¦s new SK-II product has proven its success as a premium and prestige offering. P&G has gained significant knowledge transfers from SK-II development and further, has successfully tapped the fickle Japanese market and has devloped a loyal user-base in Taiwan and Hong Kong. With its phenomenal success, it is only logical that P&G consider rolling-out the SK-II product-line to the international market. However, while there is significant worldwide growth potential within the $9 billion prestige skin-care industry, based on recent organizational changes, new corporate priorities, and thorough market assessment, P&G must base its decision on current resources and capabilities to
• Brands comparison – L’Oreal can prove to be harmful for Body Shop’s reputation. The public
Based on Exhibit 8, Exhibit 9 and Exhibit 10, our group would recommend the first strategy,
| ST Strategies: * Make innovations for being over the potential competitors. * Use their financial position for acquire new technology.
The pharmaceutical activities of L’Oreal are also handled by Sanofi-Aventis. These divisions and subdivisions ensure the quality that the L’Oreal Group offers to its customers. To further add to the enumerated strengths of the company, L’Oreal’s advertising strategy also plays a major part to its growth. Through adapting to the culture of their target market as the main tool of their advertisement, the Company brought L’Oreal products within reach of other women from different parts of the world.