Description
PART 1:
Case 3 Analysis: L’ Oreal
Please read the Word document and answer the questions posed in the case. Also please look over the PowerPoints which contain additional information regarding the case and the company. (In the attachments)
PART 2: In a different word document
Instructions: Answer the following prompt – What is a high-touch promotion? Explain the difference between high-tech product/service positioning and high-touch product/service positioning in domestic and international markets. Can some products be positioned using both strategies? Explain. Please look at the Channel Ad as an example of High Tech promotion for a traditionally non-high tech product: Click on this link to help answer the questions
https://www.chanel.com/mx/skincare/expert-advice-8…
Unformatted Attachment Preview
L’ Oreal
Maybelline Wonder Curl Japan 1998
FOR LOREAL
20 Largest Cosmetics Companies (US Billions)
1. L’Oréal $27.2 billion
2. Unilever $21.3 billion
3. Estée Lauder Cos. $11.8 billion
4. P&G $11.8 billion
5. Coty $7.7 billion
6. Shiseido $7.3 billion
7. Beiersdorf $5.9 billion
8. Johnson & Johnson $5.9 billion
9. AmorePacific $5.6 billion
10. Kao $5.3 billion
11. LVMH $5.2 billion
12. L Brands $4.6 billion (est.)
13. Avon $4.1 billion
14. Henkel $4 billion
15, Mary Kay $3.5 billion
16. Colgate-Palmolive $3 billion
17. Chanel $2.8 billion (est.)
18. Natura $2.4 billion
19. Revlon $2.3 billion
20. Kose $2.3 billion
COSMETICS – Top 10: 2022 BRAND RANKING
Brazil’s Big Local Cosmetics Brands
Korean Market Share for make-up. L’ Oreal as well as its
2018 acquisition Nanda are not in the top 10
Beauty Around the World
• China: White Skin, Big Eyes,
Thin, & Nose Bridge
• Brazil: More into tan or
biracial, fuller body, etc?
• Russia: Similar to Europe or
USA?
Beauty Around the World
• India: Traditionally the ideal Indian
woman has been mediumcomplexioned, she has large eyes,
long black hair, etc. However, the
preference for whiteness and the
fairness bias has become even more
apparent in recent years.
India Cosmetic Ad Sugar:
https://www.google.com/search?q=cosmet
ics+ad+in+india&rlz=1C1CHBF_enUS874
US874&source=lnms&tbm=vid&sa=X&ved
=2ahUKEwiSlvwnen8AhVVnGoFHdmfACMQ_AUoAnoE
CAEQBA&biw=1665&bih=891&dpr=1.5#fp
state=ive&vld=cid:0a4d0054,vid:HoIWx_S
bk5s
Loreal India Ad:
https://www.youtube.com/watch?v=jJnzfc
SncHs
New Shiseido Chinese Market:
Old Shiseido Chinese Market:
https://www.youtube.com/watch?
v=uKDIu6cVOCw
Subaru Japan Ad:
https://www.youtube.com/w
atch?v=sdTPmYE9Des
Japan liked the doll look for a long time, but this seems to be changing recently
Estee Lauder Ad for Asian Americans
Loreal China
Estee Lauder Ad for Asian Americans
Loreal China
Big Eyes Make Over
Positioning Map for Cosmetics
High
Shiseido
Lighter Skin
Estee Lauder
Other
Cosmetics
Companies
Low
L’ Oreal
High
Big Eyes
Positioning Map for Cosmetics
High
Longer curled eyelahses
Wonder Curl
Shiseido
Other
Cosmetics
Companies
Low
K2
High
Thicker Eyelashes
High-Tech vs High-Touch
• High-Tech does not mean a make-over using your smart
phone or digital imaging to pick out your wardrobe. It
means providing the technical background for the
cosmetics, etc. It is infrequently used to market
cosmetics, below are examples.
• Detoxification CHANEL Skincare:
• https://www.youtube.com/watch?v=VoPW48CVGYU
• High-Touch is emotional and personal (such
as trying make-up on at a store). It is how
most cosmetics are promoted.
• Chanel – high touch ad:
• https://www.youtube.com/watch?v=MirsZjcm
2Sc
Men’s Cosmetics Ads (somewhat high
tech, at least at the present)
Body shapes around the world:
Thai weight loss ad:
USA weight loss ad:
Multi-Level Marketing
• Multi-Level Marketing for beauty
products is huge in many markets
around the world.
• How should L’Oréal work with or
compete with this form of
distribution and its members?
A big firm, such as, L’Oréal, must
constantly manage their Product Mix
(or product assortment)
Tools for developing the company’s marketing strategy
and deciding which product lines to GROW,
MAINTAIN, HARVEST & DIVEST
Width – how many different product lines
Depth – how many variants of each product in the line
Consistency – how closely related the various product
lines are
Product-Mix Width and Product-Line
Length for Proctor& Gamble Products
Product-Mix Width
Disposable
Bar Soap
Diapers
Paper
Tissue
Ivory
(1879)
Pampers
(1961)
Charmin
(1928)
Dreft
(1933)
Kirk’s
(1885)
Luvs
(1976)
Puffs
(1960)
Tide
(1946)
Lava
(1893)
Banner
(1982)
Cheer
(1950)
Camay
(1926)
Summit
(1992)
Detergents
Toothpaste
Ivory Snow
(1930)
Gleem (1952)
Crest (1955)
PRODUCTLINE Depth
Managing a Product Mix
Modify Existing Products
Delete Products
Develop New Products
Market Modification
Convert nonusers
Enter new segment
Win competitors’ customers or
substitute
Make use per occasion
New & more varied use
Product Modification
Quality improvement
Feature Improvement /
differentiation
Style improvement
New lines
Adjust products to meet changing
societal needs or fads
Marketing Mix Modification
Price
Distribution
coverage, intensity, exposure
Ads
Coupon or other promos
Personal selling
Services
Adjust promotions/brands to meet changing
societal needs or fads
Product Line
Review
Deletion
Analysis
Deletion
Decision
Return to
Line
Phase Out
Runout
Immediate
Drop
Delete
Decline Management
Increase Investment
Maintain
Decrease – niche
Harvest
Divest
Sells through their own beauty stores.
Is this a better channel?
Purchase answer to see full
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