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...