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BRINGING “CLASS TO MASS”
Group 5Akshika Kaushal
Ankita JainDivya Teegal
Mwblib BasumataryNamita
L’ORÉAL
• L’Oréal was founded in France in 1907 in Clichy
• Cosmetics, skincare and haircare – beauty products
• Technology intensive product portfolio
• “Quality, innovation and geographical expansion” strategy
• 2000 products with 500 brand names in 150 countries
• “Trickle down and fire up” philosophy
Plenitude
Plenitude was introduced in 1982 in France High end, superior performance but accessible “Class of the Mass” single product strategy “Delays the signs of aging” targeting the modern
women Early success with 1 million units sales in 1983 1984 to 1987 witnessed line extension of
Plenitude Dry skin night care crème & Anti wrinkle crème
Plenitude
Reinforced belief to have technologically superior products
Concentrate on Start Product to pull the entire line
Follow the Golden Rules of advertising
Feature star product
Provide technological superiority evidence
Depict an executive woman – assertive and up-to-date
Introduced 14 SKUs in the US covering 3 categories
To create a department store environment at mass channels
Challenges in U.S.
14 SKUs in the US – Was is too many at a time?
Plateaued sales and still not making money after 9 years
Improve both top-line and bottom-line
Licensee-to-subsidiary – change in role - start contributing
Capitalize on brand L’Orèal - maintain technology portfolio
How to introduce Revitalift?
Value Proposition
European and U.S. MarketSpecific purpose, technologically advanced premium quality skin care products for modern women because “you are worth it.”
Target Customer – Modern WomenValue offered – Skin carePoD – Technologically advanced product, Specific purposeReason to believe – Brand image and Customer perception (typically for European market)
Target Market
Parameter French Consumer U.S. Consumer
Target Market Sophisticated use of skin care products
Less aware about skin care
Disposable Income High Low
Value seeking Functional Economical
Lifestyle Lavish and Balanced Working class
Need Recognition Yes No
Acceptor/Rejector Studies
Motivation for trialLoreal
Loreal brand name was cited as primary motivator for trial; perceived as a more expensive but a better quality product
Plenitude as a brand name meant little to people
Loreal by planitude seen as department store quality in mass outlets
Oil of Olay Suggested by friend or
grandmother Advertised in seventeen magazine
Pond’s It was seen as a staple of life Suggested by mothers to be used in
old age Inexpensive and shelves were
stocked with it
Acceptor/Rejector Studies
Response to product formulas
LorealYoung rejectors found it greasy or too heavy Oil of Olay
Acceptors saw it as light and reasonably priced
Pond’s Clean scent which was fresh and
not overpowering Non irritant
Acceptor/Rejector Studies
Perception of Plenitude as full product line
Loreal Large number of products; a
plus for some and negative for others
Generally saw large product line as overwhelming
Oil of Olay was seen as traditional, general brand
Acceptor/Rejector Studies
Packaging* Attractive, but
overworked for some* Expensive look
* “ Planitude confuses me, it’s a lot to read”* Lot of information, really good summary
which is helpfulPerceived target
consumers* Some felt, it was
specifically targeted to older women
* “Reduces Signs of Aging”
Response to product formulas
Facial Skin care market Survey
Facial
Skin care market Survey
Consumers could be divided into five “benefit” segments:Unconcerned-25%Ingredient apathetic-17%Price conscious Socializers-17%Stressed out 22%Age focused-18%
Plenitude was disproportionately used by the last two groups
Shelf
Shoppin
g stud
y
Positive
Some liked to see all the products and check out what’s newNegative Overwhelming and confusing with all the products
Perceptual Map Brand Imagery
Contain AHA
Exfoliate the skin
Technologically advanced
Good value for money Face stays younger
Formulated for night time
Reasonably priced
Products mother uses/used
Leave skin soft Relieve dryness For sensitive skin
Perceptual Map of Brand User Imagery
Mother traditional In their 60's Romantic feminine in their 40's
Glamorous sophisticated Stylish upper-class
Like to spend money on themselves
Housewife
Practical
Old-fashioned
wholesome/natural
Thrifty/price conscious sloppy Adventuresome Trendy
Recommendation
Packaging:
-Reduce text
Positioning
-Prevent the sign of aging
-Less expensive product
Product Line
-Reduce product line
-Divide target group
Thank you
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