This website uses cookies to ensure you have the best experience. Learn more

L’oreal Case Study

3183 words - 13 pages

L’Oreal

Introduction 
    
L’Oreal is the largest cosmetics company in the world. It shouldn’t be a surprise that L’Oreal doesn’t sell all of its product lines in every market in which it sells, and the market in the Netherlands is no exception. Upper management of the Netherlands’ L’Oreal subsidiary have to make decisions on which product lines will succeed in their respective market and which ones will falter. In this particular case, L’Oreal needs to decide if it would like to introduce Garneir product lines such as the Synergie skin care line and the Belle Couleur permanent hair colorants line into the Netherlands market. The basic problem is whether or not to introduce these lines into the Dutch market.

Situation Audit

     In the Netherlands, unlike in France, L’Oreal and Garneir are both sold under the same sales force. This must be taken into consideration considering that L’Oreal has products in both hair colorants (Recital) and in skin care (Plenitude). Fortunately, the Dutch market maybe able to handle both of these product lines from L’Oreal and Garneir if it is felt that they could both be profitable.
     When looking at the Dutch market, the most surprising thing is the youth of population. 40% of the population is under the age of 25. This is an important demographic stat because a lot of younger women are the ones who use cosmetics, but it is important to note that the fastest growing populations are those of age 25 and older which might be important to the market of hair colorants. Another interesting trend is the number of Dutch women who work outside the home with a labor force rate of 29% and it is increasing more rapidly than those of other countries like the United States and the United Kingdom. This is very interesting because these women will have more money, independence, and self-confidence. In these terms, these women will more than likely use more cosmetics because of the increase in time that they spend outside of the home. A final insight into the Dutch market shows that Dutch women tend to shop for value, especially in cosmetics, which needs to be taken into account. The overall Dutch market looks somewhat promising to the introduction of Synergie and Belle Couleur lines, but other factors must also be looked at.
     While the overall Dutch market is important in the analysis, the product markets might give a better indication of how these products might do. For both of these lines, their markets seem to originate over the prices of the products being sold, from the upper end, to the middle, and farther down to the low end of the price scale. In the skin care market, which is the second largest sector of the Dutch cosmetics market, unit volume has grown at 12% annually in the last five quarters while dollar sales has risen at 16% annually. Also, 50% of Dutch women between 15 and 65 use traditional skin care products. The forecast is also good considering by the year 2000, sales in the cosmetic...

Find Another Essay On L’Oreal Case Study

Nestle: Operating in a Global Economy

1815 words - 7 pages leader in numerous product lines that have provided a solid foundation for sales and profit. Nestle has strong brand recognition that provides a competitive advantage to get into new markets and expand in existing markets. Operating in the global market means embracing numerous opportunities while avoiding various threats. The strategic management Nestle exhibited serves as an excellent case study in operating in a global economy. History

A Brief History of Bacteriophage Therapy

2130 words - 9 pages first. Generally, it is accepted that British bacteriologist Ernest Hanbury Hankin was one of the first to identify the virus. In British India and many other ancient civilizations, it was believed that some rivers bore the ability to miraculously heal diseases--notoriously, leprosy. In 1896, Hankin identified antibacterial activity against Vibrio cholerae (cholera) in the Ganges and Jumna rivers. He found through his study of the mysterious

Benefits of strategic management

2918 words - 12 pages scientific management. Primarily, Taylor emphasised a need for the study of methods to improve worker efficiency. His fundamental contribution to the search for managerial excellence, however, was imposing the responsibility for the performance outcome on the managerial methods, which introduced the concept of performance improvement. The environmental forces continued to impact industrial arena. Developments in psychology provided opportunity to

When the Bubble Burst

1539 words - 6 pages By the time I arrived state side from my second tour in the Middle East the housing bubble had already burst. I noticed a drastic change in the way that many of my friends and family were living. Several of my friends that worked in real estate had sold their boats and seconds houses. My own stock portfolio had lost a third of its value. My sister and her husband had defaulted on their home mortgage leaving them scrambling for a place to live. I

phase diagram

4456 words - 18 pages the degree of the freedom of the system in this case is F = 1 + C - P = 3 - P. Therefore, there is a maximum of 3 phases present in the binary system. At the eutectic point, all 3 distinct phases are in equilibrium consequently the degree of the freedom of the system is now F = 3-3 = 0. In sum, the eutectic point is fixed. Works Cited Introduction: Chemical equilibrium is a crucial topic in Chemistry. To represent and model equilibrium

Revolutionary Work of Art

1890 words - 8 pages Walter Benjamin emphasizes in his essay, “The Work of Art in the Age of its Technological Reproducibility” that technology used to make an artwork has changed the way it was received, and its “aura”. Aura represents the originality and authenticity of a work of art that has not been reproduced. The Sistine Chapel in the Vatican is an example of a work that has been and truly a beacon of art. It has brought a benefit and enlightenment to the art

Enlightenment Thought in New Zealand Schools

1594 words - 6 pages In this essay I will be looking at how the political and intellectual ideas of the enlightenment have shaped New Zealand Education. I will also be discussing the perennial tension of local control versus central control of education, and how this has been affected by the political and intellectual ideas of the enlightenment. The enlightenment was an intellectual movement, which beginnings of were marked by the Glorious Revolution in Britain

Psychological Egoism Theory

2240 words - 9 pages distinction between the intended motive as a motivator for action and the motive that comes as a consequence of the action. Such a motive may not be their target or the driving factor for their action but only accompanies the activity (Smith, 1898). The fact that we have not found an action that is purely altruistic in nature shows that there is a lot of room for us to think and that there is so much that has not yet been discovered in this field of study

How Celtic Folkore has Influenced My Family

1587 words - 6 pages values of my family. The Celtic Cross, which originated with Paganism customs, has become a popular symbol for Irish heritage and a stepping stone into womanhood for my family. While folklorists are certain that the four parts symbolized North, South, East and West, many people who study Irish folklore agree that “Saint Patrick combined the Christian Cross with the ‘sun’ to emphasize the importance of the cross to the Pagan followers, giving

Julia Margaret Cameron

1406 words - 6 pages At a time when women were looked upon as being homemakers, wives, mothers and such the late 1850's presented a change in pace for one woman in specific. Photography was discovered in 1826 and soon after the phenomenon of photography was being experimented with and in turn brought new and different ways of photo taking not only as documenting real time, but also conceptualizing a scene in which an image would be taken. Julia Margaret Cameron will

Evaluation of School Improvement

1403 words - 6 pages The evaluation process should be progressive to incorporate overall planning, implement changes, which contribute to success. In order to focus on school climate and norms, the evaluation design must include the students, instructions, and outcomes to improve communication and building-level concerns to be address in this response. School Climate and Social Norms The school principal, other staff leaders, and personnel set the tone and the

Similar Essays

L’oreal Essay

1196 words - 5 pages L’OREAL INTRODUCTION Strategy analysis focuses on the long-term objective generating alternative strategies, and selecting strategies to pursue. The firm’s present strategies, objectives and mission, couple with the external and internal audit information, provide a basis for generating and evaluating feasible alternative strategies (David 200). L’Oreal has numerous competitors. To have an advantage on competition, L’Oreal has to apply

L’oreal And The Globalization Of American Beauty

1283 words - 5 pages invest more heavily in their R & D to foster advances in their current products and to promote the development of new product lines. Innovative describes L’Oreal, who provides an opportunity for undergraduate students to compete on a marketing campaign. Annually, L’Oreal provides a case study where students from leading universities and different countries compete. (Newswire, 2004) “For the students, it is a unique learning opportunity based

Burt's Bees Market Opportunity Factors Essay

1034 words - 5 pages with natural (vice synthetic) ingredients. As a result, there are an ever-increasing number of companies launching their own versions of natural product lines. Ethical consumerism is the trend and not a fad. Consumers are empowered by their ability to express their societal points of views via their purchasing decisions (Burt’s Bees Case Study, 2008). Burt’s Bees greater good philosophy markets to consumers their belief that they can be a

Persuasive Advertising Essay

1154 words - 5 pages advertised as ‘meals for one’, some people who are single will purposely not buy these as they don’t want to be reminded they are eating alone. This is just one case of how marketers push away sales rather than gain sales. David Jobber (2004) stated that sales promotions are incentives to customers or the trade that are designed to stimulate purchase. Sales promotions can include money off, discounts or free gifts, but they are not always as good as