L’oreal of Paris: Bringing “Class to Mass” with Plénitude Case Solution
L’oreal of Paris: Bringing “Class to Mass” with Plénitude
Executive Summary L’Oreal Plénitude’s problem in US market is ignoring cultural and traditional differences about buying behavior of consumers while entering the market. The products and marketing strategy are too overwhelming for US consumers. Thus company should prevent this confusion as main goal. To overcome this problem, company should release Americanized packaging and have simplified advertisements.
Analytical Summary L’oreal of Paris is well known brand in cosmetics sector especially in France. The company is trying to enter to U.S. market where competition is high and this is a big problem in such competition because consumers are prone to use traditional products. Important competitors who are, Olay with the relative share of 1.86 compared to Pond’s and Pond’s with the relative share of 1,08 compared to L’oreal, have already been used for many years. L’Oreal’s fault for Pléntitude is that they ignore cultural differences between US and French consumers. In other words, while in France, consumers are sophisticated about cosmetics; in US consumers are less sophisticated which affects buying behavior. Company spent $300M on research for developing new and better products and they registered 300 new patents. That means they continuously launch new products. However, as a result of US consumers being traditionalists and not really sophisticated about cosmetics, these new products couldn’t meet with expected consumers. Another issue is that L’oreal spent $38.3M dollars in 1995 for advertisement and promotion of new products which causes high costs. This amount of money is spent to indicate the details of the products which sophisticated and educated consumers could have understood and act accordingly. However US consumers are different than French people. This is why this strategy is effective for French consumers but not effective in US. Besides, according to
Executive Summary L’Oreal Plénitude’s problem in US market is ignoring cultural and traditional differences about buying behavior of consumers while entering the market. The products and marketing strategy are too overwhelming for US consumers. Thus company should prevent this confusion as main goal. To overcome this problem, company should release Americanized packaging and have simplified advertisements.
Analytical Summary L’oreal of Paris is well known brand in cosmetics sector especially in France. The company is trying to enter to U.S. market where competition is high and this is a big problem in such competition because consumers are prone to use traditional products. Important competitors who are, Olay with the relative share of 1.86 compared to Pond’s and Pond’s with the relative share of 1,08 compared to L’oreal, have already been used for many years. L’Oreal’s fault for Pléntitude is that they ignore cultural differences between US and French consumers. In other words, while in France, consumers are sophisticated about cosmetics; in US consumers are less sophisticated which affects buying behavior. Company spent $300M on research for developing new and better products and they registered 300 new patents. That means they continuously launch new products. However, as a result of US consumers being traditionalists and not really sophisticated about cosmetics, these new products couldn’t meet with expected consumers. Another issue is that L’oreal spent $38.3M dollars in 1995 for advertisement and promotion of new products which causes high costs. This amount of money is spent to indicate the details of the products which sophisticated and educated consumers could have understood and act accordingly. However US consumers are different than French people. This is why this strategy is effective for French consumers but not effective in US. Besides, according to