You are on page 1of 7

L'OREAL

Positioning & Marketing of Plnitude

CORE ISSUES

Market share
Moisturizer: increased by 20% y Cleanser: increased by 6.25%
y

Revenues: doubled Profits: pretax loss of 12.5m Brand image of Plnitude is weak, Mismatch of positioning and targeting due to lack of understanding of US consumer perception

SEGMENTATION
Use of same Segmentation approach as used in France Later Market Studies(1995) suggests that
y

Market segments that attracted Plenitude are Stressed Out and Age Focused

Consumers of the brand


Modern Women y High Income group y Older Women
y

FINANCIAL & COMPETITIVE POSITION


Market Volume is growing by 34% but L'Oreal by only 16%(Exhibit 7) While revenues have doubled over 5 years, significant pre-tax losses still exist Significantly larger margins over trade price than Olay leading to higher price points than competition Low on Awareness, Awareness to trial and Retention (Exhibit 11)

NEW ACTION PLAN BASED ON CONSUMER RESEARCH


Highest priced product line in the daily category, reduces the massmarket appeal which is needed for the class of the mass strategy to work.
y

Reduction in retail margins to more competitive levels with Olay and Ponds

Package though useful for some customers, but the name of the product is not informative (impeding instinct buys)
y y

Reduce information on the package and instead give information manual inside the pack. Rename SKUs to be more informative to a casual browser

Tagline: Reduces signs of ageing, projected Plenitude as an older woman brand


y

Modify to appeal more to younger crowd

L'Oreal is perceived as a high premium brand even though Plnitude is the approachable brand
y y

Advertise approachability of brand through various in store price promotions Increase size of Plenitude relative to L'Oreal on packaging to emphasize own identity Attempt to reduce oily nature/thickness of product

Address issues identified with product characteristics


y

P&GS THOUGHTS ABOUT THE PRODUCT CATEGORY


P&Gs pricing strategy indicates a low cost approach aiming to undercut the market P&G has been steadily losing significant market share despite maximum expenditure on advertising P&Gs product strategy also indicates a certain amount of complacency in their position as market leader

THANK YOU