2. What were the reasons for L’Oréal’s initial failed entry into India?

The following are the reasons for L’Oréal’s initial failed entry into India is as follows

L’Oréal’ entered India in 1992 with its Garnier Ultra Doux range of shampoos in partnership
with the MJ Group for the distribution of is products, this shampoos contained natural
ingredients and in India the use of natural ingredients for beauty purposes was prevailing for
their generation, keeping this in mind they thought this would appeal to women in India and
kept the price at the bottom range and they had remove certain molecular compounds that
would nourish the hair.

But they could not position this product because of the shampoo brands such as Sunsilk,
Clinic Plus and Clinic All clear from HUL and local brands such as Chick and Ayur. They
also did not had USP to differentiate them from their competitors and it failed in the market.
And after India’s economic liberalization in 1991, India’s economic liberalization in 1991,
many other MNC’s entered India with their shampoo brands which made their product even
more insignificant.

Later, in 1995 L’Oréal introduced an anti-aging product: Garnier Synergie’s Wrinkle Lift
cream, the first of its kind in India which was sold between Rs 130 to Rs 240. But, the
product did not meet the success with Indian consumers because in developed countries there
was a trend for the use of this product but this was not the case in India. Women with newly
acquired spending power belonged to the younger age groups and were more excited by other
cosmetics and beauty products that they previously did not have access to.

The company picked up a product that was highly successful in markets that faced
completely different dynamics, and tried to sell it in India. This did not yield the desired
results. They did not understand Indian society lifestyle which includes the different classes
and their respective needs, the changes that’s taking place, in order to have successful
product offerings.

4. What are the key factors that would ensure marketing success in emerging markets?

The following are the key factors would ensure marketing success in emerging markets:

 The company has to be an effective and integrated sales and operations planning
prices to achieve the customer service, time-to-time market and inventory and cost
objective.
 They have to build a strong bridge between customers and suppliers to enable the
improved demand visibility.
 They have to incorporate their logistics with their partnership to ensure efficient and
time effective and low-cost sourcing and marketing penetration.
 There should ensure their quality and service objectives in addition to cost.
 There should be R&D network to deliver a quality product.
 They should invest in local products and services and also on market research.
 They should tie-up with local suppliers.
 They should also be prepared to develop some local infrastructure.
 They should concentrate on long term plans.