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
L’Oreal’s slogan “Because we are worth it” is the platform upon which the company’s entire marketing strategy is built. The purpose of the message is to create a sense on self worth and confidence among women. L’Oreal’s marketing content is based upon three pillars: education, empowerment and aspiration. In line with these three topics, how-to and do-it-yourself videos have been created informing consumers of various beauty tips. Videos focused on empowerment send the message of the brand’s strength and confidence rather than just focusing on cosmetics and beauty, leaving customers with positive outlook. Finally, aspirational videos are reflections of the company’s sponsorships with various award and fashion events, which infuse the brand with
L’Oreal has become the global brand of cosmetics intimately from the strong advertising. The company employed celebrities from different countries and cultures in promoting its
* This plan had more merit in the long run of three to four years and they need this plan to be applied on this current year as increasing in its sales goal.
The last appeal that an advertiser will attempt to make is that of logos, or the logical appeal. Advertisers know that price is not the true appeal to all buyers and excluding it from their ad not only allows merchants to adjust the price by market but also allows the readers to do more research into the best product choice. In this ad, the visual aid points the reader to a small clock. This clock seems meaningless and out of place until the reader checks the statement that Crest lasts five times longer. However, claims of longer lasting fresh breath may not make a believer out of all consumers. For this reason, Crest shouts out, on their web site, that all their products are
In competitive terms, ‘value’ is the amount that buyers are willing to pay for the product. With the substantially diverse product line of P.E.I. Preserve, it is quickly noted that most of the products offered are either being offered to the wrong demographics/regional group or the cost outweighs the benefits for the consumer. Over 50% of P.E.I. Preserve sales are seen to be
By reducing number of products carried, the firm will be able to differentiate them better, allocate marketing budget to most profitable products, and, therefore, increase brand recognition. Additionally by focusing on fewer products, they will be able to gain economies of scale and spread their high fixed costs.
2. Stable and broad market for products with product-line of small items, eliminating companies with dependence on few customers.
When organizations want to communicate value, they must determine what message strategies work best for them. Smart organizations determine a product’s unique selling proposition (USP), or specific benefit consumers will remember (tetxbook). An advertising slogan that I believe is particularly effective for developing a unique selling proposition, is L’Oreal’s "Because You're Worth It", which was written in 1973 when a social revolution and a new spirit of feminism was in full swing. The company is using television, radio, magazines and social media mediums to advertise its products.
To strengthen the value proposition of Plenitude daily cleanser and moisturizer, the company can create promotional campaign for those particular products. For TV advertising, they can show three women from different generation, 20s, 30/40s, and 50s who enjoy their life for having great skin. They are laughing together, spending time together, and sharing the secret of beautiful skin together, because they use L'Oreal Plenitude. At the end of that TV ad, the company can emphasize the product message "L'Oreal Plenitude Perfect Skin for Every Woman." For print ad, the
Overall, L'Oreal failed to realize and correct certain aspects of its line that were not in line with consumers tastes in the US. Some of the main points are stated below:
It also does not require many manufacturing processes that most other products would require, thereby cutting down production costs (Groopman).
Imagine having the comfort of getting hold of numerous PLR products in order to sell to your prospects while creating a power-packed client list and building a universal reputation in your chosen market.
The L’Oréal campaign for marketing its brand of women’s cosmetics has been famous for its tagline “Because You’re Worth It.” for decades. This tagline frames a woman’s desire to purchase skincare products, especially those from L’Oréal.
1.) It reduces IT cost as the need of buying expensive systems and equipments is nullified
The pharmaceutical activities of L’Oreal are also handled by Sanofi-Aventis. These divisions and subdivisions ensure the quality that the L’Oreal Group offers to its customers. To further add to the enumerated strengths of the company, L’Oreal’s advertising strategy also plays a major part to its growth. Through adapting to the culture of their target market as the main tool of their advertisement, the Company brought L’Oreal products within reach of other women from different parts of the world.