Strategic Management and Swot Analysis

Topics: Strategic management, Marketing, Brand management Pages: 4 (1276 words) Published: April 17, 2013
Contents:
I. INTRODUCTION
a. Brand Extension for L’OREAL
II. LITERATURE REVIEW
a. Ansoff Matrix
b. SWOT Analysis
c. BCG Matrix
III. REFLECTIVE STATEMENT
IV. REFERENCES

Brand Extension for L’OREAL
Brand extension takes place whenever a company wants to enter a new market by using the name of one of its existing brands, rather than using a new one. Especially the luxury sector takes advantage of its well-known brand names when it comes to launching new products into new markets (Kapferer, 2008, p.295). The popularity of brand extension strategy is due to the belief that it leads to higher consumer trial than the use of a new brand name because of the awareness levels of the brand name being leveraged (Keller, 2003, p.582).

L’Oreal as a global brand is known for high quality cosmetic goods like make-up and hair care products for women, men and kids. Its mission “Beauty for all” connects with the company’s slogan “Because you're worth it”, which is used in nearly every single L’Oreal advertisement. To identify all the different products of the brand’s portfolio they utilize the same logo for all of their goods by adapting to the specific field (L’Oreal homepage, 2012).

Considering L’Oreal’s image of good appearance we decided to extend the brand by entering a new market with a new product. The diversification L’Oreal shoes should be placed in the customer products area with a target group of professional women. The leather shoes should be available for middle to high income consumers. Though the price is affordable for this group of customers the quality is still high. With this strategy we want to cover the needs of the existing customers and reach out for new potential clients. On one hand we intend to increase our sales and profits; on the other hand we use the good reputation of L’Oreal to get our new product connected to the values of the umbrella brand. To make sure that we created a new logo keeping the...

References: Collett, S. (1999). Business Planning, E-journal of SWOT Analysis, 33(29), 58. Retrieved November 05, 2012, from http://jr3tv3gd5w.search.serialssolutions.com/
Hussey, D. (1999). Strategic Change, E-journal of Igor Ansoff 's Continuing Contribution to Strategic Management, 8(7), 05. Retrieved November 06, 2012, from http://onlinelibrary.wiley.com/doi/10.1002/(SICI)1099-1697(199911)8:7%3C375::AID-JSC462%3E3.0.CO;2-U/pdf
Kapferer, J.N. (2008). The New Strategic Brand Management: Advanced Insights and Strategic Thinking. London: Kogan Page.
Keller, Kevin L. (2003). Strategic Brand Management. (2nd ed.). Upper Saddle River, NJ: Prentice Hall.
Lu, H. & Zhao, L. (2006). INTEGRATING GIS AND BCG MODEL FOR MARKETING STRATEGIC PLANNING. 14(18), 02-04. Retrieved November 06, 2012, from http://iceb.nccu.edu.tw/proceedings/APDSI/2006/718-725.pdf
Price, E. (2012). A reduction in European over-consumption will be undone by any Eurozone solution. Retrieved November 01, 2012, from http://blogs.lse.ac.uk/europpblog/2012/07/23/eurozone-over-consumption/
Riley, J. (2012). Ansoff Matrix. Retrieved November 07, 2012, from http://www.tutor2u.net/business/strategy/ansoff_matrix.htm
Renault, V. (n.d.). SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats. Retrieved November 08, 2012, from http://ctb.ku.edu/en/tablecontents/sub_section_main_1049.aspx
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