CASE STUDY CACHAREL
UNIVERSITY OF WESTERN SYDNEY
Student: NGO DIEN THUAT
Unit Coordinator: Dr. NICOLE STEGEMANN
TABLE OF CONTENTS
(Answering the four questions)
1.Cacharel’s brand identity.4
Its conceptual and tangible components. 5
Summary in five words. 5
2.Cacharel umbrella brand 6
Sub-brand of Cacharel 6
3.Root cause of Cacharel’s crisis 7
Brand identity help 8
4.Kataschnias’s approach for Cacharel’s problems.10
Branding has become the key concept of marketing strategies. Brand is the name of firm, products, services, and above all, it is coherent with the firm’s image from customers’ perception. Those physical appearances and intangible values of a brand constitute brand identity, which is the first thing that customers recognise the firm. In result, brand management aims to build a bright reputation in customers’ mind that brings brand identity to a critical role in marketing projects. In commercial history, we have seen many famous brands fall in the market which has been affected significantly due to apply inappropriately perception of brand identity. Therefore, this paper is going to decode issues of the brand identity in the case study Cacharel - Parfums Cacharel de L’Oreal (2007, Insead). Cacharel had the two biggest selling products in the Europian market in 1980s- Anais Anais and Loulou. Unfortunately, since 1988 Cacharel faced a down turn, even with the launch of a new brand Eden in 1994. So what is the real cause of that crisis? The critical question challenged the new board director of Cacharel – Katsachnias and his team. His intuition told the basic problem was mistakes in branding. Consequently, he questioned some crucial facets related to the Cacharel’s brand during her history. In the next paragraphs, we will find out answers about Cacharel‘s brand identity, and how far they contributed to the succeed as well as failure of Cacharel.
1. What is Cacharel’s brand identity?
What are its conceptual and tangible components?
Can it be summarized in less than five words?
According to Temporal (2002), brand identity is the total promises that a company makes to consumers. It may include of traits and attributes and values that the brand has. Customers can recognise a brand identity by outward expression: name, trademarks, communications and visual appearance. In another word, brand identity reflects what and how the company wants customers perceive the brand. Description of the brand
Use of images
: Source of identity
Figure 1: Identity and three layers of a brand
(Source: Kapferer, chapter 11, p291)
Figure 1 illustrates how components constitute a brand. It consists of brand style (visible components) and intangible elements in which identity is essentially made from the brand kernel.
Based on that theory, the first perfume of Cacharel- Anais Anais, was launched in 1987, perceived as a luxury brand but affordable for young women consumers. In addition, it was tender but sexy and prestigious but innovation (2007, Insead). That conceptual component of Cacharel’s brand identity was maintained mainly in Loulou, launched in1987. Moreover, Loulou was a symbol of a real woman, “more aware of her seductive power” (2007, Insead). Launching Loulou was a continuous evolution of the brand to adapt the growing market over time, while still keeping the brand identity (Kapferer, chapter 11). Thus, Loulou’s launching did not blur the image of Anais Anais in the customers’ minds. The visual appearance of Cacharel’s logo (shape, colour, graphic), the familiar young woman’s image on their products package, TV advertisement are the tangible components of brand identity. In summary, the Cacharel’s brand identity can be described as an image of a “young, tender, luxurious, romantic woman”. From this basic concept of brand identity, we will discuss the...
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