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“CLASS TO THE MASS”

TEAM MEMBERS       Somarani Patnaik Jose Tom Jonak Mondal Gurpreet Singh Kunal Lunia Annie Ma .

 Owns 25 global brands  Cosmetics  Hair color  Skincare  High-end: Lancome. Biotherm  Mass market: Plenitude .

e.L’Oreal Corporate Marketing Strategies  “Trickle Down and Fire Up”  Revenue from mass market products to fund their R&D for high end products. Lancome and Biotherm  “Maintain premium pricing to reinforce quality and performance”  Golden Rules of Advertising  Focus advertising on star product  Provide evidence of technological superiority  Depicts an up-to-date and assertive executive woman  Aishwariya Rai & Penelope Cruz .g.

 Plenitude Skincare Line – Class for the Mass     1982 launch in France Designed for mass market (“class of the mass”) 1987 became market leader in France Decided to export “class to mass formula” to U.S. and other global markets .

a true member of L'Oreal family.THREATS: •Expensive product image •Consumer’s loyalty to competitor’s product •Local products knew US consumer behaviour •Competition from Olay in mature skin segment TOWS WEAKNESS: •Unknown about consumer behaviour in US •Product cover unattractive •Need to upgrade of US consumer •No differentiation in daily moisturizer/cleanser market •High advertising costs •Lack of profitability OPPORTUNITY: •Big market in US •Young consumer felt local product is not up to date •US maker has many channel for L'Oreal product •owned subsidiary. STRENGTHS: •Known with good quality •Great R & D department •Have a good expertise in handling cosmetic product •Revitalift product potential •Mature skin market segment .

PORTER’S FIVE FORCES MODEL THREAT OF NEW ENTRANTS France-Low(French women were sofisticated in the use of skincare products) E.P.Diadermine US-High(customer’s loyalty to local brands) SUPPLIER’S B. FranceLow(Many buyers-no influence of price or product) US-High(Buyers concentrated) SUBSTITUTES France-Low(Not very much effected by price) US-High(Highly affected by price change) .P Low(there were many suppliers in processing their product) INDUSTRY RIVALRY US-High France-Low BUYER’S B.g.-Nivea.

THREATS AND SOLUTIONS .

Eye Defense. Moisture control etc Product Formula Problems: Greasy Product.. Customers loyalty to competitors products Handled through intensive advertisement and Promotion event Product cover unattractive Rather than random product names they came up with product names like.THREATS AND SOLUTIONS BOTTOM LINE SALES IN US: VERY POOR. Revitalife-Eye. Does not absorb into skin Climatic and skin difference has to taken into consideration .

Brand User’s were able to identify it separately from other products( Oil of Olay. . not able to separate itself as a different class. The difference in positioning of the product in the US market between perception of the brand & brand user perception led to slow acceptance. with premium pricing. stylish and premium product. AlphaHydrox. Brand image held a different perception of a product similar to Nivea. The user’s perception of L’Oreal is of the sophisticated & glamorous women in their 40’s. Ponds) as young.PERCEPTUAL MAPPING      The image created by L’Oreal is of technologically advanced skin care used by elderly people for softness.

RECOMMENDATION       Reinforce L’Oreal skin care’s position as a innovation technological leader Continue daily moisturizers and cleansers & stay in the mass market channel Follow “Star product” promotion strategy Maintain premium pricing .“Because I’m Worth it” Find new Celebrity endorsement Innovate & Change the product according to the market – Problem with greasy products in .