PRODUCTANDBRANDMANAGEMENT

CaseSt
udyAssi
gnment
Lor
eal
:Gl
obalBr
andLocal
Knowl
edge

Submi
tt
edby
:Gr
oup7

Ri
yaGupt
a:2020H1490847P
KaushalGopani
:2020H1490822P
Sai
rajGhadge:2020H1490823P
Q1-CompareLoreal
'sst
rategywithanyot
herr
eput
edconsumerpackagedgoods
companyandl
istthr
eedif
ferences?

Di
ff
erences:
1.Pr
oductPr
ici
ng-

Bothhav ediffer
entpr
ici
ngstrat
egies,i
.e.
,Lorealhaspr oductsinal
lprice
rangesfrom hightomi dtolow r
angesi nordertocat erconsumer sofall
i
ncomel evels.Atthesametime,Nestlebri
ngsaf f
ordablepr oduct
sofhigh-
quali
tynutr
it
iontoever
yone,r
egar
dlessofthei
rincomel evel.

2.Di
ff
erencei
nadv
ert
isementst
rat
egy
-

I
nmostofi t
sadv er
ti
sement s,Nestl
ecastordinarypeopl
etoshowthei mage
ofahealthyfamilyi
tprovidesandt oconnectwithit
sconsumersemotional
ly
.
WhereasLor ealmainl
ycastcel ebri
ti
esli
keAi shwaryaRaiBacchan,Sarah
Jessi
caPar kerfori
tsadv ert
isementstodispl
ayt heimageofit
sconsumer s
bei
ngtrendsetter
sandf unliv
ing.

3.Di
ff
erencei
nchannel
:
Fordif
fer
entrangeofproduct
s,Lorealusesdi
ff
erentchannels,whil
ei nthe
caseofNestl
e,itusesal
mostthesamechannelforthei
rproducts,asitdoes
nothavewiderangeofpr
emium pr
oductsascomparedtothatwithLoreal.
Forexampl eLor ealusesdi ff
erentdist
ri
buti
onchannelsbasedont het heir
productpor t
fol
ioli
kemassmar ketchannelsforConsumerProductDivision,
dutyf r
eeshopsandper fumer i
esf orLuxuryProductDiv
isi
ons,hairsalons
Professi
onalProductsDiv i
sionandphar maciesandhealt
houtlet
sf orAct iv
e
Cosmet i
csDi vi
sion.Ont heot herhandNest l
eusesmassmar ketchannel s
l
ikewhol esel
ler
s,ret
ail
ersandphar macies.

Q2-Listdown commonal i
ti
es bet
ween t
hem t
hatcoul
d be l
essons f
orot
her
consumerpackagedgoodscompanies?
Commonal
it
ies:
1.BothNest
leandLorealarecont
inuousl
yinnovat
ingbrandst
hatcomeupwi
th
goodR&Dproduct
sr egul
arl
yint
hemar ketandcapit
ali
zeonthem.
 Lor
eal
-Itpl
anst
olaunchi
tsAIat
-homeski
ncar
edev
icePer
so
 gl
obal
l
ynexty
ear
.
 Nestl
e-EveninCov
idt i
me,i
thasjustl aunchedthr
eevariet
iesof
Magginoodlesi
nal i
mitede-commer ceplatfor
m andall
owed
theconsumerstovoteonthesethreef l
avors;t
omato,capsica,
andcheesydeli
ght
;theywantust ocont i
nue.

2.Bot
ht he brands'product
s ar
e mar
ked byt
hei
ringenui
tyand i
ncr
eased
l
ocal
izat
ionapproach
 Loreal-Tounderstandtheconsumersatthel
ocallev
el,Lor
eal
createdgeocosmet i
cstostudytheworld'
sbeaut
yt r
endsand
deli
verthebestproduct
sforthatr
egi
on.
Forexampl e-Lorealcreat
edInst
it
uteforet
hnichairandski
n
resear
ch in Chi cago,which worked f
or the company i
n
i
nternat
ionalexpansion.

 Nest
le-Itseamlessl
yr oot
si tsel
fin dif
fer
entgeogr
aphi
cal
l
ocat
ions by assimi
lat
ing local fl
avor
s in pr
oduct
s and
embraci
ngl
ocall
anguagewhilemarketi
ng.
 
Forexampl e,i
nChi na,Nestl
el aunchedabat t
eryofnut
ri
ent
drinksusi
nglocal
lysourcedherbsin2018.I
tledt
othecompany
recordi
ngdouble-
digi
tgrowthin2018.

3.Bothbrandshavemadesev eralacqui
sit
ionsaspartofthei
rgrowt
hstrategy
to expand i
nto new market
s,gai n a compet
it
ive edge,oracqui
re new
technol
ogi
esandskill
set
s.

 Lorealhasacquiredseveralbrandsl
i
keMay bel
l
ine,Sof
tSheen
products,Carson Products Co.,Mi
ninurse.Itgav ethem a
makeov erbyshif
ti
ngtheiri
mageandr ol
ledthem outgl
oball
y.

 Nest
le has acquir
ed several compani
es l i
ke Essent
ia,
Si
mplyCook,Fr
eshl
y,Yi
nlu,Carav
an as a par
tofitsgrowth
st
rat
egy.

Thesethreecommonaliti
esamongt hesebrandsshowust het hr
eemaj orstr
ategies
thesebrandsfocusont ogainacompet i
ti
veadv ant
ageint hemar ket.Thet hr
ee
strat
egi
esusedbyt hesebrandsillust
rat
edher eincl
udei nnovat
ion,local
izati
on,
acquisi
ti
on,whi
chotherpackagedgoodcompani escanlear
nandadopt .