L'Oreal
Summary:
Executive summary
8C’s
Strategic alternatives Strategic recommendation Tactical marketing plan
Executive summary:
The strategic problem is: L’Oreal can’t duplicate the success of the ‘’class to mass’’ strategy in the US market for the Plenitude products line.
The main critical causes led to this problem are: * US consumers behavior is totally different from French consumers consumer * Positioning of the Plenitude product line which was not suitable to the US market * Brand perception by the US consumers * The inadequate execution of ‘class to mass’ strategy in the US market
Opportunities
Repositioning the Plenitude brand may help attract a wide range of US young consumers
Higher consumer expectations from the brand
Strategic alternatives: * Position the plenitude as a treatment targeting older market segment * Review the plenitude product line design and communication in order to attract the youth market * Keep the plenitude as the premium brand without the mass strategy
I. Situation analysis: 1. Market attractiveness:
“Plénitude” market is the consumer goods market particularly Health and beauty aids and specifically body care items market.
Market $ volume: $799MM- Moisturizers: $ 471MM and cleansers: $ 328MM
Market growth: Average 11% for moisturizers and 7% for cleansers
Market forces: * Potential of entrants (high) We have to use our core competencies (technology and marketing) to differentiate “Plénitude” from competitor product. * Body care items become a commodity product so barriers to entre the market can be overcame by mass volume production, quality, promotion and pricing. * No product differentiation: the same benefit from all brands (skin care product) Consumers can switch easily between competitors * Competitors have an easy access to the channel (multinational consumer goods companies are in the market P&G, Unilever, J&J) and the
Executive summary
8C’s
Strategic alternatives Strategic recommendation Tactical marketing plan
Executive summary:
The strategic problem is: L’Oreal can’t duplicate the success of the ‘’class to mass’’ strategy in the US market for the Plenitude products line.
The main critical causes led to this problem are: * US consumers behavior is totally different from French consumers consumer * Positioning of the Plenitude product line which was not suitable to the US market * Brand perception by the US consumers * The inadequate execution of ‘class to mass’ strategy in the US market
Opportunities
Repositioning the Plenitude brand may help attract a wide range of US young consumers
Higher consumer expectations from the brand
Strategic alternatives: * Position the plenitude as a treatment targeting older market segment * Review the plenitude product line design and communication in order to attract the youth market * Keep the plenitude as the premium brand without the mass strategy
I. Situation analysis: 1. Market attractiveness:
“Plénitude” market is the consumer goods market particularly Health and beauty aids and specifically body care items market.
Market $ volume: $799MM- Moisturizers: $ 471MM and cleansers: $ 328MM
Market growth: Average 11% for moisturizers and 7% for cleansers
Market forces: * Potential of entrants (high) We have to use our core competencies (technology and marketing) to differentiate “Plénitude” from competitor product. * Body care items become a commodity product so barriers to entre the market can be overcame by mass volume production, quality, promotion and pricing. * No product differentiation: the same benefit from all brands (skin care product) Consumers can switch easily between competitors * Competitors have an easy access to the channel (multinational consumer goods companies are in the market P&G, Unilever, J&J) and the