L'oreal case study analysis

Essay by giuffreUniversity, Master's August 2014

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L'Oreal case

1) looking back, how has the brand done so far? Does size matter in this industry? Why?

2) What is the the current strategy in US and France? Are there commonalities and differences between the French market and the US market?

3) Analyze market share (both in dollars and quantities) for the three segments of the market. How do we calculate them? How do we read them?

4) how do I read market research?

5) what is current brand positioning?

6) So what should L'Oreal do?

MARKET

US FR

Mass retailers 1st by far

Last 2nd educated consumers

Not familiar few competitors

Oil of Olay and Ponds Loyal costumers

New entrant 1st to enter the mass market

Good reputation thanks to FR high bargaining power

Basic consumer (higher sensitivity to price) consumers less price sensitive

We face a different strategy about assortment and a different relationship with retailers, consumers and competitors

STRATEGY

US FR

They use the word "reduce" in the advert.

"delay" (it means that the consumer is young so that doesn t have any particular sign)

Lighter product greasy product

PREMIUM +30% in the price

TRICLKE DOWN FIRE UP STRATEGY

SAME PACKAGING

BRAND CLASS TO MASS

14 SKU 1 SKU

Retailer has to take them all in order to

Bring class to the mass, create a special environment

FROM EXIBIT 11

Why the consumers do not try it?

Because there re too may options, the marketing test said is too much confusing, too many products and too much infos on it. There re too difficult words, non-evocative names, too high price, too classy and consumers can t follow the mother s example because simply didn't exist before. In the us there s a basic consumer and they pop up with 14 different sku, at the same...