Essay about L’oreal of Paris: Bringing “Class to Mass” with Plenitude

898 Words Jan 5th, 2015 4 Pages
L’oreal of Paris: Bringing “Class to Mass” with Plenitude
Group: ThomasTrain (Cindy, Debbie, Juan, Ling Ling, Sherry)
Problem Statement - L’oreal Plenitude has been introduced in the US for 8 to 9 years but the brand is still not making any profit. Should L’oreal switch everything to Revitalift which is the ‘star’ product or continue their effort in building the market share of Plenitude by improving it’s value proposition in cleansers and daily moisturisers?
Recommendations – The decision is not to switch but continue the development effort by changing the existing marketing strategy and value proposition of Plenitude thus the sales in the daily user segment can be improved, which is $799 million in 1995.
Analysis
Analysis are being
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Exhibit Year | Sales | Total Spent in Advertising and Promotion | Pre-Tax Loss | 1990 | $31.7MM | $35.5MM | $25.4MM | 1995 | $63.4MM | $38.3MM | $12.5MM |

* Reduce the introduction of new product
By reducing the introduction of new products, cost such as product development, R&D and advertising can be avoided.

2. Brand Identity * Focus on ‘L’oreal’ Name instead of ‘Plenitude’ “Because I’m worth it” is a successful advertisement tag-line for L’oreal, Plenitude should ride on it, instead of creating a new identity.
Qualitative Studies done in April and May 1996 presented that Plenitude brand name meant little to people. * Simplify Packaging / Advertisement
Reduce information in packaging and advertisement, use common terms that is easily understood. Packaging and Advertisement should focus in L’oreal name.
Qualitative Studies done in April and May 1996 presented that Plenitude Packaging shown in Exhibit 5B and 6 as too wordy and complicated. 3. Market Segmentation, Targeting and Positioning * As Exhibit 8A illustrated, Plenitude carries a wide product line presumably targeting at a diverse segments of the market which include: * Daily User of different age groups * Treatment for female age 30 and above * Both age groups have distinctive values and behaviours * The value proposition of the product is however more inclined to older age group due to the overwhelming emphasis on

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