L'Oréal of Paris: Bringing "Class To Mass" With Plénitude
L'Oréal of Paris: Bringing "Class To Mass" With Plénitude
L'Oréal of Paris: Bringing "Class To Mass" With Plénitude
- B A K E - syndicate
Maria Alfa Raniadita 29109317
Edhita Paradevi 29109324
Trisya Kansya Salea 29109329
La Ode M Arief Akbar 29109367
Case Background
Plenitude line introduced in 1982.
Very success in the France skin care market
Strong introduction in US Market
US sales grow pretty well through 1991
After 9 years introduction in US still not make money
Problem Identification
Many
types of How to improve further upon
products Plenitude’s current
operations in the U.S ?
Premium
Brand
Pricing
Utilization
Strategy
Rethink all
Aspect
“Too
“Star”
French”
System
for US
How to introduce a new
product (Revitalift-Eye) into
the existing product line
L'Oréal
Founded by Eugene Schueller in 1907.
Initially develop and market a new hair coloring.
2,000 products with 500 brand names,150
countries.
Worldwide presence
Consolidated sales: 53.4 billion French Franc in
1995 from over 2,000 products
L'Oréal
Beauty, personal and high tech products
Cosmetics represent 81% of revenues
$300 million on research & 300 new patent
worldwide in 1996
Acquires Maybelline to broadened participation
in the mass market.
Combining Hair care and Cosmetics Division
Plénitude
At 1982 launched in France
Positioned as : high end, superior performance, but accessible (class to
mass strategy)
Strategy :
◦ Firstly introduce moisturizer until it had helped established the
“technologically advance” image and then introduce cleanser
◦ Supported by massive advertising (star philosophy)
Result : Achieving sales of one million units in 1983 and continue its
success in 1987
Formula for success :
◦ Have technologically Superior Products
◦ Concentrate Resources and Support on newest “star product” to pull the
entire line
◦ Follow the golden rules of advertising : feature star product, provide
technologically superior evidence
The U. S Launch & Early
Result
• First test marketed in Atalanta and Dallas at 1988
• Strategy “class to mass”
• Positioning “ Reduces the Signs of aging”
• Covering 3 products :
• Basic moisturizers
• Treatment moisturizers
• Cleansers
• Before Plenitude entered, L'Oreal had good reputation
for its cosmetic and hair product, so the name was
critical to sell the products.
• Used the same formula "star" philosophy in advertising
as in France
Market Size and Brand
Market Size and Brand
Market Size and Brand
22% 18%
17%
17% 25%
Full Product Line • Individual products could be more helpful in through the line
SWOT
OPPORTUNITIES THREATS
• Big market in US • Expensive product Image
• Young consumer felt local • Consumer’s loyalty to
product is old fashioned competitor product
• Us maker has many channel • Local product known about US
for L’Oreal product consumer behavior
Recommendation
Increase consumer knowledge by advertising
and at the point of purchase
Packaging modifications simple information,
change the Plenitude name
Launch Revitalift Eye with star product
Use premium price to maintain product
prestigious
Step by step Product Line Extensions.
Target a younger executive woman to create
consumers base
thanks for your attention
Exhibit 7. Market Size & Brand Shares on $ Basis
(‘91-’95)
Everyday
Size (oz) Trade Price ?
Average Retail
Moisturizers-Daily
Active Daily Moisturizer-Regular 4,00 4,72 7,11 2,39
Active Daily Moisturizer-Oil Free 4,00 4,72 7,17 2,45
Active Daily Moisturizer- SPF 15 4,00 4,72 7,21 2,49
Hydra - Renewal Jar 1,70 6,83 10,17 3,34
Hydra - Renewal Tube 1,60 6,09 9,13 3,04
Moisturizers - Treatment
Advanced Wrinkle Defence Crème - Jar 1,70 8,87 12,15 3,28
Advanced Wrinkle Defence Crème - Tube 1,20 7,07 10,30 3,23
Advanced Overnight 1,40 8,87 12,26 3,39
Eye Defense 0,50 8,87 12,07 3,2
Excell Cream 1,40 8,42 11,36 2,94
Excell Lotion 4,00 8,42 11,51 3,09
Serum 1,00 10,43 15,19 4,76
Revitalift - Face 1,70 8,87 12,31 3,44
Cleansers
Deep Cleansing Gel 5,00 5,50 6,97 1,47
Hydrating Clenasing Cream 6,00 5,50 7,07 1,57
Hydrating Floral Toner 8,50 5,50 6,94 1,44
Clarifying Foaming Gel 4,00 6,25 8,06 1,81
Clarifying Mask 2,80 6,25 8,09 1,84
Clarifying Toner 8,50 6,25 8,26 2,01
Exhibit 8B. Competitive Cleansers Pricing of Retail Drug Stores
Everyday
Size (oz) Trade Price ?
Average Retail
Procter & Gamble - Olay
Foaming Face Wash 6,78 2,12 3,17 1,05
Facial Cleansing Lotion 6,78 3,09 4,56 1,47
Refreshing Toner 7,20 2,69 3,98 1,29
Age Defying Daily Renewal 6,78 N/A 4,76 -
Pond's
Cold Cream 3,50 2,78
Self Foaming Cleanser 4,00 5,03 7,44 2,41
2 in 1 Cleanser - Tube 4,00 2,79 4,22 1,43
2 in 1 Cleanser - Pump 7,00 3,88 5,60 1,72
Neutrogena
Facial Cleanser 8,00 5,91 8,33 2,42
Deep Clean 6,00 4,10 6,07 1,97
Deep Pore 2,00 5,50 8,06 2,56
Noxzema
Medicated Skin Care 10,00 2,68 3,71 1,03
Exhibit 8C. Competitive Daily Moisturizer Pricing of Chain Drug Stores
Everyday
Size (oz) Trade Price ?
Average Retail
Procter & Gamble - Olay
Original Beauty Fluid 4,00 5,86 6,59 0,73
Oil Free Beauty Fluid 4,00 5,86 6,65 0,79
Sensitive Skin Beauty Fluid 4,00 5,86 6,66 0,80
U/V Protectant Beauty Fluid 3,50 5,86 6,74 0,88
Original Beauty Fluid (Larger Size) 6,00 7,53 8,76 1,23
U/V Protectant Beauty Fluid (Larger Size) 5,25 7,53 9,60 2,07
Pond's
Dry Skin Cream 11,00 5,50 8,19 2,69
Nivea
Shine Control Mattifying Fluid 3,00 4,84 7,15 2,31
Facial Nourishing Lotion 3,00 4,58 6,87 2,29
Neutrogena
Combination Skin 4,00 7,50 10,43 2,93
Exhibit 8D. Competitive Treatment Moisturizers Pricing
Everyday
Size (oz) Trade Price ?
Average Retail
Procter & Gamble - Olay
Night of Olay 2,00 4,49 6,45 1,96
Replenishing Cream 2,00 4,58 8,73 4,15
Age Defying Protective Renewal Cream 2,00 N/A 7,31 -
Age Defying Protective Renewal Lotion 4,00 N/A 7,36 -
Pond's
Age Defying Lotion 3,00 7,80 10,99 3,19
Age Defying Lotion 2,00 7,80 11,23 3,43
Prevent and Correct Lotion 4,25 10,80 14,94 4,14
Prevent and Correct Cream 2,50 10,80 15,20 4,40
Nivea
Anti-Wrinkle Cream 1,70 4,84 9,22 4,38
Optimale 1,70 4,58 10,52 5,94
Neutrogena
Healhty Skin Oil Free Bottle 2,50 7,50 10,55 3,05