L’Oreal Case Study Essay -- Business Marketing

LOrealIntroductionLOreal is the largest cosmetics company in the world. It shouldnt be a surprise that LOreal doesnt sell all of its product lines in every market in which it sells, and the market in the Netherlands is no exception. Upper heed of the Netherlands LOreal subsidiary have to make decisions on which product lines will trace in their respective market and which ones will falter. In this particular case, LOreal 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 chore is whether or not to introduce these lines into the Dutch market.Situation AuditIn the Netherlands, unlike in France, LOreal and Garneir are both sold under the similar sales force. This must be taken into consideration considering that LOreal has products in both hair colorants (Recital) and in skin care (Plenitude). Fortunately, the Dutch market perchance able to handle both of these product lines from LOreal and Garneir if it is felt that they could both be profitable. When looking at the Dutch market, the most surprising thing is the spring chicken of population. 40% of the population is under the age of 25. This is an grave demographic stat because a lot of younger women are the ones who use cosmetics, but it is important to note that the scurrying 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 linked States and the United Kingdom. This is very interesting because these women will have more bullion, independence, and self-confidence. In these terms, these women will more than likely use more cosmetics because of the increase in time that they devolve outside of the home. A final insight int o 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 be... ...o use our product because they are out in public and they also have more money to spend on things such as cosmetics. The Dutch women in this market need the Synergie line to give off the idea of a self-concept that can tinge our brand image to their needs as a workingwoman. An idea for the advertising campaign could be Youre working the hardest, shouldnt you look the best in addition While this product line is marketed towards the workingwoman, the LOreal product Plenitude could be marketed towards keeping a youthful look with its ability to delay the signs of aging. The best wait for the profitability of both products is to effectively find a certain image that each consumer can identify herself with. With this, I believe that both products can succeed in the same market and both can have the potential to have large market shares. BibliographyDatamonitor, Feb. 2004. hair care In The Netherlands. Retrieved on April 23, 2005. http//dbic.datamonitor.com.proxy.lib.ohio-state.edu/industries/industry/?iid=HaircareDatamonitor, Feb. 2004. Makeup In The Netherlands. Retrieved on April 23, 2005. http//dbic.datamonitor.com.proxy.lib.ohio-state.edu/industries/industry/?iid=Skincare