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
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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
Ü This alternative does not offer any positive ways to solve this problem and also doesn¡¦t make them get more market share.
CONS
Ü If the company doesn¡¦t introduce either of its products, it won¡¦t be able to take advantage of growing.
Ü 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
Ü 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.
Ü L¡¦Oreal has a positive image for their distributor that can certainly help the distributor decide to place this product on their shelf.
Ü The fastest growing populations of women
* Its so-called innovative or revolutionary products do not gain the company as much credits as Samsung or Apple does. The market will test its ability to
As the marginal expense of manufacturing is more than the marginal income, it is not feasible for the company to manufacture a positive amount of output although it has got monopoly power by the patent.
So, the world's leading cosmetics company L’Oreal buying two local cosmetics firms for a share of China's vanity cash. One is Mininurse and another is Yue Sai. These are two competitive company is Chinese market as both of them are in the list of China’s top 10 cosmetics brands in 2002. Mininurse is one of the brands belong to Shenzhen Raystar Cosmetics Company. It set up by Li Zhida in 1989. Another company is called Yue-Sai Kan Cosmetics Ltd which founded in 1992. After the two acquisitions, L’Oreal group had 14 different brands in China in 2004. In order to manage these brands, L’Oreal set up a differential products and brands strategy to each brands. They called it “Pyramid Brand Structure”. There are four level of the pyramid included Luxury Products, Professional Products, Active Cosmetics and Consumer Products. This pyramid could ensure the marketing positioning for the 14 brands owned by L’Oreal.
The company is not focusing much on the investments and increasing efforts in research and development
Opportunities: international market; co- operation with other bigger companies; launching of the new products; increasing tendency of the customer demand etc.
Next, you discover that only the retail channel requires “labeling”. The company has a machine
For baby boomer generation which is experiencing life changes brought by aging, they have shown increasing interests in cosmetics and toiletries, not only to enhance their appearance but also for other reasons. A simple example is that they use foundation with treatment ingredients to protect their skin against harmful UV rays, and to help a variety of skin problems.
As a manufacture of private label personal care products, Hansson Private Label, Inc. has a considerable amount (28%) of market share in its specific industry. However, private labels as a whole constitute less than 19% in the entire personal care industry. Therefore, growth of HPL depends on the growth of the industry and more importantly the growth of private label component within the industry. In terms of the personal care industry, market growth will not improve significantly in the future. As proven in the past four years, unit volumes in the industry increases less than 1% in each year and the dollar sales growth was only driven by modest price increases. Therefore, the opportunity for private labels
We aim to provide Australian and foreign consumers with the highest quality skincare on the market while promoting sustainable behavior and reducing our ecological footprint.
Estée Lauder has an extremely large presence as the global leader in prestige beauty with products being sold in more than 150 countries. This global success is attributed to their focus on cultural relevance, making sure that their products, signage, marketing etc. appeals to consumers in each local market.
Next, you discover that only the retail channel requires “labeling”. The company has a machine
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
Makeup Art Cosmetics (MAC) was founded in 1985 in Toronto by Frank Toskan and the late Frank Angelo. The business plan concentrated on targeting young, fashionable females by creating cosmetic products which contain unique textures and colours. Using this strategy, the company targeted the ¡°hip¡± celebrities and other cosmetic influencers to gain recognition and market share in the younger consumer market. Since its inception, the company has grown to become a multi-national organization operating in over 180 locations worldwide. In the late 1990¡¯s, MAC was purchased by Estee Lauder, which has led to the alteration of the company¡¯s governance; the culture of the firm changed from that of an entrepreneurial-style with limited rules into
L'Oreal is a cosmetic company, which makes some of the world's biggest beauty products. L'Oreal's success story begins in 1907. It has been the market leader in the cosmetics and toiletries market since 2001 (Euromonitor 2005). Their products are sold in about one hundred and thirty countries worldwide. L'Oreal is divided into four categories - consumer products, professional products, luxury products, active cosmetics. They mainly focus on skin care, make-up, hair care and fragrance. L'Oreal includes some important brands such as Lancôme Paris, Garnier, Mabelline, Softsheen Carson, Matrix, and Biotherm. L'Oreal invests heavily into its research and development which gives them competitive advantage over its competitors.
Rivalry is intense among the competition in the cosmetic and skin care industry. There are numerous existing cosmetic companies competing in the market. The giant corporations acquire numerous brand name products and compete for the same number of customers. The competition consists of companies such as, Procter & Gamble, L’Oreal, Unilever, Avon Products, Inc., Estee Lauder, in addition to competing with large retailers, who order mass