The lack of success of L’Oreal Plenitude after 8 years has been launched to United States is primarily caused by making a wrong supposition of the U.S. market and implementing the exact same core strategy used on the French market in the U.S. regardless of the differences. Thereby, a series of problems occurred, which lead to a sales plateau and even a loss in sales. Problems in U.S. Market and Root Causes Discussion
According to the Brand Development chart, L’Oreal Plenitude has a rather low conversion ratio on Awareness to Trial compared with its major competitors—Oil of Olay and Pond’s, but with an acceptable retention ratio. Therefore, it is important to pinpoint the causes of the low level of motivation for Plenitude’s trial on behalf of seeking solutions. First of all, in the U.S., Plenitude followed the equivalent French targeting and positioning tactic. Plenitude targets the so called “modern women” who are “up-to-date and assertive” with an image of “I live with the times.” This brand is positioned as “high end, superior performance but accessible.” However, this targeting and positioning strategy combined with an advertising tagline, “Reduces the Signs of Aging,” misled consumers to perceive Plenitude as a product for relatively older ladies. This is one reason that reduced consumers’ motivation for trial of Plenitude. Second, the strong brand name of L’Oreal is a double-edged sword. Because Plenitude’s brand name has very low awareness, it is good that most customers connect the products to L’Oreal, which ensures the high-quality and advanced technology of its products. On the other hand, this connection also gives customers the impression of a high price and stops them from trying the products. Furthermore, consistent with the Perceptual Map of Brand Imagery, consumers normally do not consider that Plenitude has “Good value for the money” compared to Pond’s and Olay. Finally, with the intention of educating customers at the...
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