Plenitude Case

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Plenitude Case

Plenitude’s Position in the US Market – 1996:

Plenitude’s position has been bumped from 3rd position behind Pond to 2nd position behind Oil of Olay who is the market leader in the skin care industry. The move of Plenitude’s position to second position has been due to the introduction of a new product – Revitalift known with L’Oreal. Revitalift is the 20th brand product of Plenitude’s product line sold in the US in a 1.7 ounce container and sales for $11.05 per unit. Revitalift was introduced in September, 1995 and quickly came to represent 20% of Plenitude sales with the support of $5M in TV advertising which continued through 1996 to date. Exhibit 14 – Shows the 20% sales from Revitalift:

Revitalift Volume sales - 5,679,850$
Total Plenitude Sales - 25,807,235$

5,679,850 X 100%
25,807235 = 22%

Exhibit 14 - Revitalift Unit price:

Volume Sales - $5,679,850

Unit Volume – 513,824 = 11.05$

Less Success of Plenitude in the US:

Test Markets - Only in 2 states- Atlanta and Dallas yet in the US there is bigger population of women as compared to France. There was need to test the market in the other 50 states to have a bigger perspective of the potential market. Atlanta and Dallas are both in the southern region. Thus Plenitude would have extended the test market to the northern, eastern and western regions rather than basing on the 14% high - moisturizer market shares they based their results to launch their products.

Product launch – In the US the whole product line – basic moisturizers, treatment moisturizers and cleansers where all launched at once as opposed to France’s strategy. In France, a single product moisturizer product was launched followed sequentially by introduction of special purpose moisturizers.

Product price – Plenitude did not clearly define its target market, thus the product was a premium high – tech with a high price compared to its...
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