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Loreal Plentitude Case Analysis

Autor:   •  May 11, 2011  •  Case Study  •  1,130 Words (5 Pages)  •  1,817 Views

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1. Possible Root causes of Plenitude’s inability to grow in US market

Based on our analysis we determined the following possible cause which inhibits the growth of plentitude product line in the US.

• Women in the US are not very knowledgeable on the skin care products and ingredients compared their French counterparts. This has caused the technology advantage which L’Oreal possessed in France not be recognized in the US.

• Too much information on the packaging has caused the not so knowledgeable consumers to be overwhelmed and confused and thus buying other products which they are able to understand.

• The Star product marketing strategy is impacting sales of all other products.

• Too many products in the product line are adding to consumer confusion.

• Plentitude does not have high brand recognition among US consumers.

2. 5 C’s Analysis

Customer Needs: Based on the market research the customer needs seems be for a product which makes them look younger than their current age. Also the average income consumers are looking for high quality facial skin care products at accessible prices.

Company Competency: L’Oreal is a well known international brand with a reputation of making high technology products and is already present in the US market.

Competitions: The major competitor in the market is Oil of Olay. Secondary Competitors identified in the facial skin care market segment are Ponds and Nivea.

Collaborators: Pharmacies and Supermarkets have been identified as two major collaborators whose assistance will be very valuable for the growth of the product line.

Context: US customers are more traditional when it comes to selecting skin care products compared to French customers. Family influence plays a big role in selection of the skin care brand. Also, French products are generally perceived as expensive and upscale in the US market.

3. Positioning and Target

We have found that according to what other markets have told us and the characteristics of our product we should focus our efforts to target a very wide but specific market that consist mainly in woman who find themselves living in metro/urban areas with a solid academic background, at least college, whose incom is above average, and their financial situation is solid, the woman with that sense of freedom and independency, who is modern and able to make her own decisions, not following the traditional way of doing things, but improving in every consciously decision she makes, a girl that believes in technology as a way to improve the status quo, technology that brings positive changes and overall, a woman that takes good care of her

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