Plenitude - L'Oreal

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Plenitude by L’Oreal was introduced to the US market in 1988. Eight years since its introduction, it has quickly become the #2 brand in the market only to lose it later to Pond’s. Plenitude also hit a four-year sales plateau and was still not making any money in the US market. L’Oreal’s problems and root causes should first be identified and addressed. The root causes of L’Oreal’s problems are: 1. Wrong assumptions of the target market 2. Applying a market strategy based on the those assumptions 3. Continuing to do so for an extended period even given the results The target market When L’Oreal planned to release Plenitude in the US market, it is assumed that what would be successful for the French market would translate to the…show more content…
As stated above, Plenitude is perceived to be a product for older women and it is an expensive brand. To be able to reach a wider range of segments in the market and get back to the “class to the mass” strategy, Plenitude has to change its image and the way people perceive its products. Looking at the perceptual map (exhibit 9), Pond’s and Oil of Olay which dominate the market are perceived differently. L’Oreal can position Plenitude in a similar way which attracts the masses and still maintain its position as a class above the others: • Technologically advanced – a bit pricier but worth it since it has better quality • Readily available • Change tag line from “reduces signs of aging” to something like “stay young and healthy” to remove link to old age This will help Plenitude widen its target market to include other segments. In terms of promotion and advertising, L’Oreal should change the “star product” approach and instead focus on the whole product line or perhaps a set of products for a given target segment. In this way, L’Oreal can inform its customers on its products which should also help them in choosing the right product for themselves. L’Oreal should also focus on building the brand Plenitude since this is something that customers are not aware of. They only know L’Oreal. One of the problems mentioned was that people were confused on which product to choose.
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