Yes, of our point of view the strategies were primarily responsible for L'Oreals impressive financial performance and its amazing brand recognition. This is because it made sure that each of its brands had its own image and took care hat its image do not overlap with the image of another product or company.
Developing of new innovative products a strong Development & Research Department with a lot of know how. They expanded in important national markets and invested in new facilities. Adding glamour to its brand to make it more appealing and famous was another factor for its worldwide known performance.
acquiring an existing brand
Economies of scale
Profit centers are already in place
Better positioned to evaluate intrinsic value
Complement your existing product lines
Hard to chose a befitting one
Failure to clear seller's potential liabilities
creating a new brand
Spread the culture of its own company
Explore the new area
Get the support from the local government
Expand the effect of own brand
More expensive than acquiring the existing one ,hard to run Create the new market ,it will take a long time
If it is fails, it may affect you main brand product
L’Oréal maintained a large portfolio of brands and was present in all the four segments of the cosmetics market. What positioning strategy did the company follow to ensure that the image of its brands did not overlap? How and why did L’Oréal encourage competition among its brands in a particular segment and at the same time prevent the brands from cannibalising each other? Encouragement of competition by L'Oreal among its own brands It followed a multi brand strategy i.e same kind of products under different brands It helps to adapt market differentiation and improve market shareby providing equal...
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