Paper type: Essay Pages: 2 (395 words)
1.Review L’Oreal’s brand portfolio. What role have target marketing, smart acquisitions, and R&D played in growing those brands? The success of L’Oreal is a result of tactical choice of markets, targeting them wisely, thorough research and development and smart acquisitions. It is one of the leading cosmetic companies in the global market. Over the years it has created a successful brand value and expertise in the field of cosmetic and beauty products. Targeting the market was one of the factors that play pivotal role in L’Oreal success, the company targeted the audience with products as per their requirements, like, in Japan they marketed mascaras specially designed and volume as per the requirement of Japanese women.
Acquisition of local beauty companies like Soft Sheen Products and Carson Products helped them to eliminate competition and also gain huge profits in U.S. and African Markets. L’Oreal spends 3% of its annual sales in research and development with 14 research centers around the world.
Clear concepts about the different skin and hair and their different needs around the world helped them to design diverse products for all.
2.Who are L’Oreal’s greatest competitors? Local,global, or both? Why? The major competitors for L’Oreal are companies like, Lakme, LVMH Moet Hennessey Louis Vuitton, Estee Lauder and Chanel etc. The skin care, makeup, fragrance and hair care businesses are characterized by intense competition over the world. As each company products are close substitutes to one another.
3.What has been the key to successful local product launches such as Maybelline’s Wondercurl in Japan? The eyes and eyelashes of the women in the Western Asia is different. They have small eyes and their lashes are short and straight. Thus, when the R&D team of L’Oreal companies came up with the idea of Wonder curl Mascara, it became a instant success. 4.What’s next for L’Oreal on a global level? If you wereCEO, how would you sustain the company’s global leadership? L’Oreal is already a successful brand in the global market. Its success is seen especially in the areas of make-up and hair product, and not in the skin care. It is now required to come-up with different skin care products for people. Also, the price factors have to be kept in mind. Most brands are distributing their products at a reasonable cost. L’Oreal can achieve success in the middle-class people by setting a reasonable price for them.
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L’Oréal’s brand portfolio. (2016, Jun 15). Retrieved from https://studymoose.com/loreals-brand-portfolio-essay