L’oreal Case Study

3183 words - 13 pages


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

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 Essay

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

Reality and Illusion in Shakespeare's Hamlet - Reality, Appearance and Deception

896 words - 4 pages Reality and Illusion in Hamlet   Shakespeare’s play, Hamlet, begins with the appearance of a ghost, an apparition, possibly a hallucination. Thus, from the beginning, Shakespeare presents the air of uncertainty, of the unnatural, which drives the action of the play and develops in the protagonist as a struggle to clarify what only seems to be absolute and what is actually reality. Hamlet's mind, therefore, becomes the central force of the

Sub-plots in Hamlet

1118 words - 4 pages Sub-plots in Hamlet   There are many things that critics say make Hamlet a "Great Work," one of which is the way that Shakespeare masterfully incorporates so many sub-plots into the story, and ties them all into the main plot of Hamlet’s revenge of his father’s murder. By the end of Act I, not only is the main plot identified, but many other sub-plots are introduced. Among the sub-plots are trust in the Ghost of King Hamlet, Fortinbras, and

Hamlet as Victim and Hero

1301 words - 5 pages . Kravitz, David. Who's Who in Greek and Roman Mythology. New York: Clarkson N. Potter, Inc., 1975. Lidz, Theodore. Hamlet's Enemy, Madness and Myth in Hamlet. New York: Basic Books, Inc., 1975. Shakespeare, William. Hamlet Prince of Denmark. A Pocketful of Plays. Vintage Drama. Ed. David Madden. Fort Worth: Harcourt Brace & Company, 1996. Wormhoudt, Arthur. Hamlet's Mouse Trap. A Psychoanalytical Study of the Drama. New York: Philosophical Library, Inc., 1956.  

Essay on Light and Dark in Antigone

1188 words - 5 pages easily visible, or obvious, making the statement positive for Creon. Later, in Ode I, the gods again side with Creon, as they refer to his decisions in lines 4 to 5, "Earth, holy and inexhaustible, is graven/With shining furrows where his plows have gone..." The gods are praising Creon; "shining furrows where his plows have gone" imply that he has left a good indent on matters that he has ruled on, in this case referring to the law against burying

charant Creon as the Main Character of Antigone

1231 words - 5 pages Creon as the Main Character of Antigone   Throughout the Greek play Antigone by Sophocles, there exists a dispute as to who should receive the designation of main character. Antigone, the daughter of the cursed King Oedipus, as well as Creon, stately king of Thebes, both appear as the key figures in this historic play. I believe that Creon, king of Thebes, should be considered the main character in this work of Greek theater. Three

Free Macbeth Essays: Sleep and Sleeplessness

525 words - 2 pages The Sleep and Sleeplessness Motif in Macbeth We have consciences that function to tell us the difference between right and wrong. If we have clear consciences, we usually possess the ability to sleep. But when our consciences are full of guilt, we experience a state of sleeplessness. In Macbeth, Shakespeare uses the sleep and sleeplessness motif to represent Macbeth's and Lady Macbeth's consciences and the effect Macbeth's conscience has on

Life Outside of Life in Hawthorne’s Wakefield

898 words - 4 pages Life Outside of Life in Hawthorne’s Wakefield   Efficacy lies at the heart of human desires for immortality. Characters throughout literature and art are depicted as wanting to step aside and see what their world would be like without their individual contributions. The literary classic A Christmas Carol and the more recent, but ageless, film It’s Wonderful Life both use outside influences (three ghosts and Clarence the Angel

Essay on Identity in Song of Solomon

2172 words - 9 pages Searching for Identity in Song of Solomon         Abstract: Whether Africans really fly or just escape a monumental burden, perhaps only through death, is a decision Toni Morrison has apparently left to her readers. Never the less, no matter what you believe, within Song of Solomon, the suggestion is, that in order to "fly" you must go back to the beginning, back to your roots. You must learn the "art" from the old messages.   O

The Character of Oedipus in Oedipus and The Infernal Machine

904 words - 4 pages The Character of Oedipus in Oedipus and The Infernal Machine    The stories of Oedipus, as told through Seneca's Oedipus and Cocteau's The Infernal Machine, contain both similarites and differences. Both authors portray the character of Oedipus as being obstinate, ignorant, and inquisitive. Yet Seneca and Cocteau differ on their interpretation of the motives that propelled these characteristics of Oedipus. Seneca portrays Oedipus as a

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

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

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