I am the CEO of L'oreal, a global personal care products company. We provide our customers with cosmetics, beauty and perfumes.
Although we are in the cosmetics business now for 97 years, we are having difficulties with our shampoo line, which represents one-half of our annual sales in a normal year. But in 2005 it proofed to become our only product that didn't work out the way we planned.
Our shampoos are now in a declining phase and this affects our sales intensively.
This is why we were looking for a strategy to maintain our existing level of operating income although our difficulties in the shampoo sector.
Our strategy implies a few steps:
PRICING, PROMOTION and PLACEMENT
Contract Shampoo Line
We will not produce new shampoos anymore for the next 6 months. We will try to liquidate our remaining stock.
Our liquidation method consists of adding one shampoo to every new eye cream. We will then elevate the price of the eye cream a little bit. We are able to do......
Join Now or Login to view the rest of this paper.
Approximate Word Count: 542
Approximate Pages: 3 (260 words per double-spaced page) |