Loreal

Top-management was looking forward to a Europe wide marketing strategy, in contrast with their subsidiaries which maintained that country profiles varied and marketing in one country would not be the same as marketing in another. Management wanted to adopt a Europe wide strategy so as not to lose out on market share else where in Europe. A single country approach would

In other words, with this Global Strategy, Haier entered into international markets in 3 different ways;

Companies in the retail industry operate in a high price elasticity environment as there is not much product differentiation to leverage. Buyers face almost no switching cost if they chose a substitute offering better value. On the contrary, large and diverse population making small purchases works in favor of the industry. No one individual or a small group has the power to significantly impact the industry, but overall buyers enjoy have a high bargaining power in the industry.

were branded to the bone. They always understood that they were selling brands before product. They had their eyes fixed on global expansion.

The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.

Chapter 6 – Strategy Formulation: Situation Analysis and Business StrategyChapter 7 – Strategy Formulation: Corporate StrategyChapter 8 – Strategy Formulation: Functional strategy and Strategic Choice

The team had to stay within a budget and this meant that funds had to be spent in the most optimized way, leading to some options being taken off of the table, such as the very expensive TV ads that could not be developed (pg 3)

The purpose of this is to pressure strengths and defect weaknesses of the organizations’. The global strategic planning process also defines the company’s business and mission/vision. This helps portray the company’s image to the stakeholders and define what the company does. Furthermore, corporate objectives must be in the scope of the GSP process and the objectives give a path, boundaries, and ensure prosperity. Objectives are very important to a company and should be amplified, as much as possible. Another part of the process is to set up goals and or competitive strategies. The goals help to achieve strategies within multi-domestic, global, and transnational. These three strategies come from the two conflicting problems in international market of reduction cost and adaption to local markets. (Multi-domestic: decision making for quick change, increase cost structure, cost of and difficulty of coordination becomes substantial) (Global: value chain activities, limited ability to adjust to meet customer’s needs, and transportation cost.) (Transnational: analyze pressures of cost effectiveness and adaptations, locations that are the best for each company activity, decisions are complex when trying to attain the optimal

Companies can pursue essentially the same strategy worldwide or craft slightly or very different strategies for the Europe-Africa, Asia-Pacific, Latin America, and North America markets.

The huge success of L'Oreal Plenitude in French as the premium skin product with "class to mass" strategy was the primary reason for L'Oreal to expand the product to US market. The company started to enter the US market skin care in 1989 through mass channel by introducing the entire product line (14 SKU's) that had been developed in France, instead of launching the product one by one. Before Plenitude entered the US market, L'Oreal had had good reputation for its cosmetic and hair product, so the name was critical to sell the products. The company used the same formula "star" system in advertising as in France by putting bulk of dollars on the newest, most technologically advanced product. Even though Plenitude had a

P&G is to become a leader in the European market of two in one hair products. The first year objective is to attract new European customers from competing brands to shift to the use of shampoo to BC-18. The aim is to exert a pull on the population in order to create a new market niche inside the shampoo market and encourage the people to use the new BC-18. In effect BC-18 technology serves the core need of washing hair and therefore it has to compete with the different national brands which are often well established.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

1995: The company launched Elsève Multicitamines and added the Technicare line to the Elsève product range. Elsève Multivitamines used a silicone-based formula that tested better than the composition of Procter &Gamble’s silicone-based Pantene which at the time was the European market leader. Launching Elsève Multivitamines enabled Elsève to increase its target segments, addressing not only consumers with damaged hair or other hair care problems bur also people with normal hair. The new formula was the milestone of L’oreal’s shampoo battle. The innovation of research brought a series of good results: increase of sales and so did prices. The high revenue made it possible to increase the advertising budget, further increased its market share. Since then, with the leading position of the new skills and constant development as well as successful implementation of marketing strategy, L’oreal went steadily towards its No 1 position.

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).

Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to