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 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 Oil of Olay Suggested by friend or grandmother Advertised in seventeen magazine 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 Response to product formulas 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” Consumers could be divided into five “benefit” segments: Unconcerned-25% Ingredient apathetic-17% Price conscious Socializers17% Stressed out 22% Age focused-18% Plenitude was disproportionately used by the last two groups Shelf Shopping study Facial Skin care market Survey Facial Skin care market Survey 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 Good value for money Face stays younger Formulated for night time Products mother uses/used Reasonably priced Leave skin soft Relieve dryness For sensitive skin Contain AHA Exfoliate the skin Technologically advanced Perceptual Map of Brand User Imagery Mother traditional In their 60's Romantic feminine in their 40's Glamorous sophisticated Housewife Stylish upper-class Like to spend money on themselves Practical Old-fashioned wholesome/natural Thrifty/price conscious sloppy Adventuresome Trendy Recommendation Packaging: Positioning Product Line -Reduce text -Prevent the sign of aging -Reduce product line -Less expensive product -Divide target group Thank you
