Loreal Market Entry Strategy India & China

This report is Part 1 of assignment for Marketing MBA 565-MBOL1 to Dr. Stephen Baglione

An Individual Case Study Prepared by Yanan MIAO under the Supervision of Pro. Hans MUHLBACHER for International Marketing Course T1-2011-2012

Advertisement is no longer a promotion tool to increase the number of customers, but a method to communicate a particular brand spirit to audience. It is important for an organization to relate their product to a certain value. The luxury brand Dior has been established its important role in fashion filed, thanks to its fashion style and taste. More importantly, it kept exploring the diverse representatives of women's spiritual world. Mr. Dior presented that the perfume could express a unique mood, lifestyle and the pursuit of attitude of woman. Whatever the women who is complex, sexy, natural or elegant, all of them could find their suitable perfume in Dior. Dior has lunched perfume series called J’ adore in 1999, its name comes from French,

Prestigious and Luxury brands such as Gucci, Louis Vuitton and Vertu represent the uppermost level and form of craftsmanship. They demand and hindercustomer loyalty that is not affected by trends. These brands set seasonal trends and are capable of generating consumers, wherever they are established.

Many great fashion designers have entered the market of fragrance (Chanel, Lanvin, Givenchy, Yves Saint‐Laurent, Balenciaga …). After that, the speakers of the cosmetic market launched their own perfumes (Yves Saint Laurent, Estee Lauder) and finally, the family brands made their entry on the market (L’Oreal, Procter & Gamble, Unilever…). These

Overview: Universal Luxury Group is an international group of companies principally engaged in the production and sale of luxury goods including Food and Beverages, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and other business. Among them, this case is handling Perfumes and Cosmetics business group that accounts for EUR 2,231M, 19% of sales revenue.

In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.

Cosmetics products like

At the apex of the market was haute couture with it very high-end “custom” product offering that catered to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

* Products range from high quality and expensive brand name items to low quality low cost items to appeal to all the department store customers for both luxury item shoppers to budget shoppers.

1.  Joshi, Rakesh Mohan, (2005) International Marketing, Oxford University Press, New Delhi and New York

The market for high end skin care products is a rapidly growing industry with physician branding at the heart of our skin care line. MediFace Spa will be targeting two distinct market segments. The first segment is patients of Advanced Eye Care and Aesthetic Center, who are currently consumers of the skin care line. The second segment will cater to the broader market. Furthermore our clients are seeking total body health regiments which we believe our target marketing will focus.

Louis Vuitton has successfully gained the title of the world’s leading international fashion house and the world’s most valuable luxury designer brand (O’Connor, 2015). Through their three 3P’s (Brand Promise, Brand Positioning and Brand Performance), it has triumphantly upheld its advantage over its contenders by not only supplying their customers with outstanding products that are incomparable in quality and features, but also offer a customer service atmosphere that is unlike any other (Fill, 2013). New surfacing Markets such as China, has also helped Louis Vuitton to continue to successfully expand, confirm and reinforce position and credibility of their business (Fill, 2013). Louis Vuitton strives on their

actresses and to models, this genius idea set a trend as it was featured in

With concern to 26 to 45 years old consumers, we believe that a personal shopper service and made ​​to order service might be useful solutions in order to have their loyalty giving them specific services that only luxury brands do. In fact, that way they can get the most out of their luxury buying experience. To finish, we also suggest the creation of events during which the can purchase new collections in advance, generally the day before the collections are officially out in stores.