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BRINGING “CLASS TO MASS”
Group 5
Akshika Kaushal
Ankita Jain
Divya Teegal
Mwblib Basumatary
Namita
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. Market
Specific purpose, technologically advanced premium quality skin care products for modern women
because “you are worth it.”
Target Customer – Modern Women
Value offered – Skin care
PoD – Technologically advanced product, Specific purpose
Reason 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 trial
Loreal
 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
Loreal
Young 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 helpful
Perceived target consumers
* Some felt, it was specifically targeted to
older women
* “Reduces Signs of Aging”
Response to product formulas
Facial Skin care market Survey
FacialSkincaremarket
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
ShelfShoppingstudy
Positive
Some liked to see all
the products and
check out what’s new
Negative
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

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Bringing Class to Mass: L'Oreal's Plenitude Skin Care Strategy in the US

  • 1. BRINGING “CLASS TO MASS” Group 5 Akshika Kaushal Ankita Jain Divya Teegal Mwblib Basumatary Namita
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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?
  • 6. Value Proposition European and U.S. Market Specific purpose, technologically advanced premium quality skin care products for modern women because “you are worth it.” Target Customer – Modern Women Value offered – Skin care PoD – Technologically advanced product, Specific purpose Reason to believe – Brand image and Customer perception (typically for European market)
  • 7. 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
  • 8. Acceptor/Rejector Studies Motivation for trial Loreal  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
  • 9. Acceptor/Rejector Studies Response to product formulas Loreal Young 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
  • 10. 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
  • 11. 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 helpful Perceived target consumers * Some felt, it was specifically targeted to older women * “Reduces Signs of Aging” Response to product formulas
  • 12. Facial Skin care market Survey FacialSkincaremarket 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 ShelfShoppingstudy Positive Some liked to see all the products and check out what’s new Negative Overwhelming and confusing with all the products
  • 13. 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
  • 14. 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
  • 15. Recommendation Packaging: -Reduce text Positioning -Prevent the sign of aging -Less expensive product Product Line -Reduce product line -Divide target group