L¡¦Oreal Nederland B.V.

1602 WordsJun 17, 20077 Pages
L¡¦Oreal Nederland B.V. Pertinent Facts L¡¦Oreal is the largest cosmetics company in the world. In 1992 the L¡¦Oreal Group was the largest cosmetics manufacturer in the world. They are Headquartered in Paris, it have subsidiaries in over 100 countries. In 1992, its sales were $6.8 billion (a 12% over 1991) and net profits were $417 million (a 14% increase). France contributed 24% of total worldwide sales. Europe (both western and eastern countries, excluding France) provided 42%, and the U.S.A and Canada together accounted for 20%; the rest of the world accounted for the remaining 14%. L¡¦Oreal¡¦s European subsidiaries were in one of two groups: (1) major countries (England, France, Germany, and Italy) or (2) minor countries (the…show more content…
Threats Competition Not only from other manufacturers producing similar products but retailer might create their own private-labels. Saturated The cosmetic market is become saturated so L¡¦Oreal has needs to increase their innovation for new products. Alternatives 1. Do nothing at all and to hope for the best. 2. Introduce only a Synergie of facial skin care products line into the Dutch market. 3. Continue the rollout at its current place but only have a Belle Couleur of permanent hair coloring products lines. 4. Continue the rollout facial skin care products and permanent hair coloring products. Evaluation of the Alternatives Alternative 1¡GDo nothing at all and hope for the best. PROS ƒÜ This alternative does not offer any positive ways to solve this problem and also doesn¡¦t make them get more market share. CONS ƒÜ If the company doesn¡¦t introduce either of its products, it won¡¦t be able to take advantage of growing. ƒÜ It won¡¦t be able to make more profit in their market. Alternative 2¡GIntroduce only a Synergie of facial skin care products line into the Dutch market. PROS ƒÜ It¡¦s easier to market just only one product to the Dutch market because the company can focus on one product and it¡¦ll be more successful. ƒÜ L¡¦Oreal has a positive image for their distributor that can certainly help the distributor decide to place this product on their shelf. ƒÜ The fastest growing populations of women

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