Loreal
Marketing Case “L’Oreal”
Problem Statement
L’Oréal has successfully launched Plénitude in France and recently introduced the Sub brand into the US market. Unfortunately, Plénitude is not having the same success as it has had in its home market in France and Europe, and is still not gaining any profit. L’Oréal now needs to adapt its Product strategy to the US market in order to strengthen the brand.
Situation Analysis (annex 1)
L’Oréal exported Plénitude to the USA and has been struggling to increase market share, without success, they wanted to replicate the formula for achievement in France (mass market, technologically superior products and Star Product Strategy).
According to the Product Lifecycle, Plénitude is in the Introduction phase where Products typically receive low profits. In the BCG Matrix it is a Question Mark product where it’s financially supported by L’Oréals Cash Cow Products.
Plénitude is positioned as “high-end, superior performance but accessible” due to its premium quality and technologic advances. The company’s strategy is to allow high quality products to access the mass market and uses the “Star Product System” where they invest the most resources on the newest and most technologically advanced product. Nevertheless, the product is positioned as a luxury skin product and comes therefore with a premium price. It is more expensive than its competitors in the cleansers category where it therefore has the lowest market share. On the other hand, there is only a small price difference in the moisturizers category where the product has the 2nd biggest market share. The strongest competitors for Plénitude in the moisturizers category are Olay, Almay, Nivea and Neutrogena, whereas in the Cleansers market, they are Noxzema, Ponds, Olay and Sea Breeze. The entire Plénitude line, which contains 14 SKU’s, is divided into three categories such as basic moisturizers, treatment moisturizers and cleansers.
Plénitude was sold through mass
Problem Statement
L’Oréal has successfully launched Plénitude in France and recently introduced the Sub brand into the US market. Unfortunately, Plénitude is not having the same success as it has had in its home market in France and Europe, and is still not gaining any profit. L’Oréal now needs to adapt its Product strategy to the US market in order to strengthen the brand.
Situation Analysis (annex 1)
L’Oréal exported Plénitude to the USA and has been struggling to increase market share, without success, they wanted to replicate the formula for achievement in France (mass market, technologically superior products and Star Product Strategy).
According to the Product Lifecycle, Plénitude is in the Introduction phase where Products typically receive low profits. In the BCG Matrix it is a Question Mark product where it’s financially supported by L’Oréals Cash Cow Products.
Plénitude is positioned as “high-end, superior performance but accessible” due to its premium quality and technologic advances. The company’s strategy is to allow high quality products to access the mass market and uses the “Star Product System” where they invest the most resources on the newest and most technologically advanced product. Nevertheless, the product is positioned as a luxury skin product and comes therefore with a premium price. It is more expensive than its competitors in the cleansers category where it therefore has the lowest market share. On the other hand, there is only a small price difference in the moisturizers category where the product has the 2nd biggest market share. The strongest competitors for Plénitude in the moisturizers category are Olay, Almay, Nivea and Neutrogena, whereas in the Cleansers market, they are Noxzema, Ponds, Olay and Sea Breeze. The entire Plénitude line, which contains 14 SKU’s, is divided into three categories such as basic moisturizers, treatment moisturizers and cleansers.
Plénitude was sold through mass