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