Revitalization of L'Oreal Plentitude in the U.S.

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The objective of this document is to provide a marketing plan proposal for L’Oreal Plenitude line in the US market in order to: 1. improve the top-line – accelerate the sales growth and strengthen market position of Plenitude vs. competitors 2. get the bottom-line moving in the right direction quickly – turn before tax figures into positive 3. make US business a major contributor to L’Oreal’s brand position globally 4. ensure perfect fit of L’Oreal skin care line-up with the needs of US consumers while maintaining the development through L’Oreal’s technology portfolio Key InsightProposed ActionAlternative Action

54% of Plenitude sales comes from 40% of the total consumers and they find the product performance in anti-aging very satisfactoryFocused and laser-targeted brand communication to capture these consumers for whom Plenitude is most relevant Despite its high awareness, trial is limited when compared to Olay (market leader)Plan laser-targeted sampling to reach stressed out and age focused segments Retention rate is also limited at 30% vs. Olay being at 44%Consider celebrity endorsement in order to improve the credibility of the brand High margins for the trade improves negotiation power of L’Oreal in mass outletsDo not price down especially in moisturizers to maintain high margins

Company: L’Oreal, founded in 1907 by a French chemist, became a world-wide known company with 53.4 billion Francs sales in 1995. In line with their strategy of “quality, innovation and geographical expansion”; they served consumers with high quality and state-of-the-art products in all regions where three accounted for over 80% of its operations - France (23%), Europe (excluding France – 40%) and North America (20%) (Appendix 1). Behind the company’s strategy “trickle down and fire up”, both the luxury and mass businesses were equally important as they used the cash flow generated through mass...
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