L'Oreal Plenitude Case Study 1995
•Download as PPTX, PDF•
3 likes•9,560 views
L'Oreal was looking to expand its Plénitude skincare line in the United States. The document analyzes Plénitude's performance in test markets, consumer perceptions, and makes recommendations to establish the brand in the US market. It suggests tweaking the star product system, changing packaging, pruning products, keeping premium pricing, and focusing on treatment moisturizers. Financial projections estimate 32% sales growth through 1996 with cost of goods sold increasing at 25% of sales.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to L'Oreal Plenitude Case Study 1995
Similar to L'Oreal Plenitude Case Study 1995 (20)
Recently uploaded
Recently uploaded (20)
L'Oreal Plenitude Case Study 1995
- 1. L’Oreal of Paris Bringing “Class to Mass” with Plénitude
- 2. Team Charlie Paul MacDonald, Clint Ramesy, Taylor Dalton, Alex Deckard
- 4. “I am a modern woman, who uses only premium quality, technologically advanced products”
- 5. Geographic Distribution of Revenue
- 6. Formula for Success ● Technologically Superior Products ● Concentrate Resources on Star Product ● Follow Golden Rule of Advertising: ○ feature star product ○ provide technologically superior evidence ○ Executive woman, up to date and assertive 1987- Leader with 19.8% dollar share
- 7. Geographic Expansion ● 1988 Test Markets in ATL and DAL o 14% market share in tests ● Introduce full line, 14 SKUs ● Copied French formula for success
- 9. Dollar Market Size and Market Share $309 Million Total Market $471 Million Total Market
- 10. Dollar Market Size and Market Share $252 Million Total Market $328 Million Total Market
- 13. Consumer Perspective on Plénitude ● High Tech ● Expensive ● Department Store Quality ● Crowded, Confusing Package ● Skews Older ● Plénitude not associated with L’Oreal
- 14. Where do we want to be? ● Financials ○ Improve the top-line ○ Get the bottom line moving ● U.S. Market ○ Establish Secure Place ○ U.S. a major contributor to L’Oreal ○ Develop suitable skin care product for U.S. Customers
- 15. Recommendation ● Tweak Star Product System ● Change Packaging ● Prune Product Mix ● Keep Premium Pricing Strategy ● Keep a Strong Focus on Treatment Moisturizers
- 19. Sales Forecast
- 20. Sales Forecast
- 21. Plenitude Price Premium by Product Line
- 22. Which Markets are Growing?
- 23. Conclusion Recommendations: ● Tweak Star Product System ● Change Packaging ● Prune Product Mix ● Keep Premium Pricing Strategy ● Keep a Strong Focus on Treatment Moisturizers
- 25. Daily Moisturizers Price Comparison
- 26. Treatment Moisturizers Price Comparison
- 27. Sales Forecast ● Q1 1996 earnings up 32% ● Project 32% increased sales through the end of 1996. ● Cost of goods sold will increase at 25% of sales
- 28. Percent Revenue Product Type
Editor's Notes
- Founded in 1909 by Eugene Schueller, a French chemist to develop and market new process of hair coloring. Daughter Madame Liliane Bettencourt, member of L’Oreal’s Board of Directors and held 51% of the holding company Gespral which had controlling interest in L’Oreal. 1995 - L’Oreal sales of 53.5 billion French Francs from 2000 products sold under 500 brand names in over 150 countries ADD revenue break down by country and product mix (mostly hair care and cosmetics)
- Introduced in France in 1982, 30% over incumbent price. High end superior performance at an accessible price. Class to Mass. Early success, 1 million unit sales by 1983
- 1984-1987 introduced new products. 1986 cleanser 1987- 19.6% of dollar share of French mass moisturizers
- Launched in August 1988, spent $32.5 million on advertising, hit sales targets Executive woman, innovative evidence, the star product.
- Double sales in five years and still record a significant loss 1991-1995 four year sales plateau
- Plenitude same relative market share while Ponds has increased. Nieva and Almay entered market. Olay continues to dominate and plans to target L’Oreal’s treatment moisturizers.
- Plenitude same relative market share while Ponds has increased. Nieva and Almay entered market. Olay continues to dominate and plans to target L’Oreal’s treatment moisturizers.
- Unconcerned basically buys on price Ingredient Apathetic- reduce signs of aging, don’t care about ingredients Price Conscious Socializers- look better, price and value important Stressed out- want effective product Age Focused- similiar to stressed out but concerned with price & natural ingredients 54% of Plenitude last two markets
- Explain Plenitude marketing strengths and weaknesses