Business Case Study: L Oreal's Marketing Product

One of the factor they failed to attract Brazilian for their product was because of their technique or method in selling product. L’Oreal current method in selling product was selling in shops, hypermarket, pharmaceutical outlet and drugstore. Differ from the Brazilian culture which they preferred the direct selling method. As stated earlier, we knew that Brazilian women likes to experience the product personally approach by the direct seller. Mr. Jean Paul Agon, the chief executive officer insisted that L’Oreal will not using the door-to-door concept. Instead L’Oreal will provided personal beauty advisor in any stores their product sold. L’Oreal focused their business on the department store such as Lojas American and trying to sell in
This tagline made them different and attractive point for consumers. Their chief executive officer, Jeremy Schwartz said that ‘it became historic moment for their company as The Body Shop was the first beauty company that take action against animal testing’.
Thus, rather than having risk being tested on animals despite the exemption of duty-free stores, The Body Shop taken precaution by removes their stores at China. They rather lose profit than violate their own policy.
Suggestion
L’Oreal has many others international brands that fit in the Chinese market such as Maybelline, Garnier and L’Oreal Paris. Therefore, L’Oreal could expanding their business of other brands in China. They could do promotion or differentiation strategies to increase their market growth rate to cover the profit that they should get from The Body Shop in China. They could not force The Body Shop to against their policy as it is the main important issues for them. Besides, L’Oreal could invest more in The Body Shop in other countries to increase the profit and share for the
They should learned to adapt the Brazilian culture without selfishly thinking to change their culture.
Globalization of a company is a good start to expand company’s growth. However, without proper planning and understanding of the culture it would be hard for the company. The best thing that a company can do is learning and adapting other culture. Besides, rules and regulations of one’s country should be followed to prevent from future loss. If we cannot follow the regulations backup plan should be done. As we could see from The Body Shop issues with the animal testing regulations which against their company’s policy. The Body Shop rather taken off their stores completely from China. Any other company must ensure there are no issues regarding regulations or law for company’s product. As a conclusion, it is not easy entering new market or new country where the culture practices are not the same with home country. Each culture must be study to suit the local taste and also at the same time did not loss the touch or originality of one’s