Problem Analysis
The huge success of L'Oreal Plenitude in French as the premium skin product with "class to mass" strategy was the primary reason for L'Oreal to expand the product to US market. The company started to enter the US market skin care in 1989 through mass channel by introducing the entire product line (14 SKU's) that had been developed in France, instead of launching the product one by one. Before Plenitude entered the US market, L'Oreal had had good reputation for its cosmetic and hair product, so the name was critical to sell the products. The company used the same formula "star" system in advertising as in France by putting bulk of dollars on the newest, most technologically advanced product. Even though Plenitude had a very strong introduction in the US by becoming the #2 brand in the market, the brand performance had been rather disappointing. In 1995, they had lost an approximate $12.5 million on the brand, and lost the #2 position to Pond's.
In 1995 and 1996,......
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Approximate Word Count: 820
Approximate Pages: 4 (260 words per double-spaced page) |