L'Oreal Repositioning

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Transcript of L'Oreal Repositioning

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Bringing Class to mass

Group 5Akshika KaushalAnkita JainDivya TeegalMwblib BasumataryNamita

LORALLOral 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 was introduced in 1982 in FranceHigh end, superior performance but accessibleClass of the Mass single product strategyDelays the signs of aging targeting the modern womenEarly success with 1 million units sales in 19831984 to 1987 witnessed line extension of PlenitudeDry skin night care crme & Anti wrinkle crme

PlenitudeReinforced belief to have technologically superior productsConcentrate on Start Product to pull the entire lineFollow the Golden Rules of advertisingFeature star productProvide technological superiority evidenceDepict an executive woman assertive and up-to-dateIntroduced 14 SKUs in the US covering 3 categoriesTo 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 yearsImprove both top-line and bottom-lineLicensee-to-subsidiary change in role - start contributingCapitalize on brand LOral - maintain technology portfolioHow to introduce Revitalift?

Value PropositionEuropean 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 MarketParameterFrench ConsumerU.S. ConsumerTarget MarketSophisticated use of skin care productsLess aware about skin careDisposable IncomeHigh LowValue seekingFunctionalEconomicalLifestyleLavish and BalancedWorking classNeed RecognitionYesNo

Acceptor/Rejector StudiesMotivation for trial

LorealLoreal brand name was cited as primary motivator for trial; perceived as a more expensive but a better quality productPlenitude as a brand name meant little to peopleLoreal by planitude seen as department store quality in mass outletsOil of OlaySuggested by friend or grandmotherAdvertised in seventeen magazinePondsIt was seen as a staple of lifeSuggested by mothers to be used in old ageInexpensive and shelves were stocked with it

Acceptor/Rejector StudiesResponse to product formulas

LorealYoung rejectors found it greasy or too heavyOil of OlayAcceptors saw it as light and reasonably pricedPondsClean scent which was fresh and not overpoweringNon irritant

Acceptor/Rejector StudiesPerception of Plenitude as full product line

LorealLarge number of products; a plus for some and negative for othersGenerally saw large product line as overwhelmingOil of Olay was seen as traditional, general brand

Acceptor/Rejector StudiesResponse to product formulas

Facial Skin care market Survey

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


Thank you