Case Study:
L'Oreal in China
Allen Cha
1a) In a short time, the young Chinese cosmetic market has become quite saturated with numerous firms. In order for Yue Sai to position its brand effectively, it has to draw upon unique strengths that others do not have. Madam Yue-Sai created Yue Sai with the aim “to create, produce and sell the very best beauty and skincare products that we can offer to Asian women and to the world…” The company started under her belief that the Chinese women had different standards for beauty and required specifically tailored cosmetic products. If Yue Sai under Cotyhad continued to build its brand under this positioning instead of focusing on distribution, the brand would be a far more prominent player in
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Considering these environmental trends and cultural differences into account, positioning Yue Sai as a provider of “delicate luxury cosmetics for mature Chinese women” under the LCD of L’Oreal, is the ideal choice. It will help L’Oreal establish a sustainable and profitable presence in a Chinese market segment inaccessible by its other sub-brands.
2a) Yue Sai should not associate itself with the L’Oreal brand name. Yue Sai’s new positioning strategy emphasizes Yue Sai’s dedication to providing cosmetics specifically made for Chinese women. Also Yue Sai’s longstanding brand promise that “Nobody knows Chinese skin better than Yue Sai” implies that Chinese cosmetic products should be made by Chinese hands. Any association with a foreign parent company will diminish the effect of that message to Chinese consumers. Also, Yue Sai’s products can’t compete with brands with larger marketing budgets and distribution channels in marketing scale. In order to compensate for this disadvantage, Yue Sai needs to shrewdly utilize its product’s influence on Chinese consumer behavior. For example, using an expensive Traditional Chinese Medicine(TCM) known for its natural medicinal properties will imprint a positive image in Chinese consumers. Since TCM is generally believed to be gentle, healthy, and harmless, it will
According to the agreement between L’Oreal and those two local companies, Li Zhida and Yue-Sai Kan who is
Loreal is a cosmetics company, not an IT one. It´s a beauty giant that includes Garnier, Lancome, Maybelline, and other cosmetic companies. However, their marketing engagement is so high, that they were one of the first companies that applied and adopted programmatic advertising in their digital campaigns. They started experimenting with PA at 2014, but continued in a full way, which is described below.
This company was founded by Dennis Paphitis, an ex hairdresser, and established in 1987 in Melbourne, Australia. The company values all human endeavors that absolutely nails 5 senses elements i.e. sight, touch, hearing, touch and smell. Since the company is a product based one, it pays an extra ordinary attention to each of their products and all their products are largely botanical with lots of anti-oxidant rich parsley seed extract. Aēsop is not influenced by the trends and doesn’t come up with a new product on the basis of needing a new launch or to compete with the competitors. Aēsop is redefined as a luxury brand and has become an inimitable global player. It offers more than 150 retail SKUs and the best care for skin, hair, and body along with home range products of finest quality. One of their best thing is, it doesn’t talks about anti-aging but about the HEALTH!
Mary Kay, Inc. was founded in 1963 by Mary Kay Ash as Beauty by Mary Kay. Mary Kay is a direct sale type of company, with “independent beauty consultants” that sell and market Mary Kay products (2012 Corporate Fact Sheet). Mary Kay Ash operated with the mindset of “God First, Family Second, and Career Third,” and always adhered to the golden rule, do to others as you’d want them to do to you (Kerin, Et. Al). Mary Kay, Inc. first entered the global market in 1971 with its expansion into Australia. Today, Mary Kay is represented in over 35 global markets (2012 Corporate Fact Sheet). Mary Kay is challenged to ensure brand consistency across the world, despite differences in cultures from market to market. As such, Mary Kay would be considered a transnational firm. They tie the similarities between each market together while celebrating the differences in each market. This strategy allows them to offer Mary Kay’s core product lines globally where they’re most desired. In China, one of their most successful markets, Mary Kay applied their existing corporate message of women empowerment to attract Chinese women that otherwise wouldn’t be able to start their own business. Where China differs from the United States market is in product need. Chinese women don’t typically wear a lot of makeup, so
Our company’s competitive advantage over both domestic and international is brand equity. Brand equity is the value of a products brand in the market, or the number of consumers that can identify the brand, especially consumers who can name the brand as top in its category. Good brand equity is most often the result of effective advertising and promotion. On the international scene many brands have global equity, meaning consumers around the world recognize them because of the exposure the brand has had in various media, such as television and movies, as well as through their presence
Currently, the business has not ventured in the cosmetic market of London and Canada. Canada and London provide an opportunity for the company to expand its market through its international entry strategy of retailing and B2C framework. The SWOT analysis of the company shows a wide range of strengths and opportunities for the company’s future success such as market gap (London and Canada), Globalization, technology and good customer relation (BBB accreditation). The company demonstrates high capability of sustenance and survival through retailing, personal selling, E-commerce, E-marketing, Fashion Collaboration and other B2B platforms.
SK-II’s success is not only prestige skin care product or advanced technology but also its marketing approach to build the new brand. P&G succeeded to connect between the core technology or product concept and local market. Through Japanese market among the world’s toughest competitors, P&G developed potential source of innovations. In addition, SK-II’s marketing strategy built a new approach, Market research, Concept, Packaging, Positioning, Communications strategy. It was a big challenge that P&G shifted from Mass marketing, such as Olay brand, to Class marketing. SK-II’s
Rick Wang, the managing director of RetailCo. Inc., the master franchisee for the Athlete 's Foot in China, was an American born Chinese, who began his career as an account director at Lintas, an international advertising agency. In 1992, he moved to Shanghai where he became the Vice President of marketing for Shanghai Fuller Foods Ltd. By 1997, Shanghai Fuller Foods Ltd was sold to Nestle and Wang decided to leave the company and strike it out on his own.
This is a big deal actually, going internationally and being the market leader in the home country at the same time. They have adopted a great strategy and supported it with advertisements. For Asian market focusing on Asian women, their skin and face characteristics and also they have analyzed the climate carefully and designed products accordingly so that they won’t go down early. Also keeping low prices for Asian market can be important, due to economic conditions and customer preferences, since they are price sensitive.
Because Japanese women had by far the highest use of beauty care products in the world, it was natural that the global beauty care category management started to regard Max Factor Japan as a potential source of innovation
Expanding the men’s skincare line is a strategic objective for Yue Sai because the saturation on this market is very low, that is why there is a tremendous potential in this segment. Yue Sai should also do advertising for men’s skincare line. Besides, in order to refresh the brand, we suggest Yue Sai to launch a new basic line with products linked to a new proposal packaging. By this way, the objective will be to attract new customers by proposing compelling offers.
The French cosmetics and toiletries market is characterised by a list of long-established companies and brands. The L 'Oréal Groupe remains the undisputed leader in this market with three of its subsidiaries among the top five companies.
L¡¦Oreal is the largest cosmetics company in the world. In 1992 the L¡¦Oreal Group was the largest cosmetics manufacturer in the world. They are Headquartered in Paris, it have subsidiaries in over 100 countries. In 1992, its sales were $6.8 billion (a 12% over 1991) and net profits were $417 million (a 14% increase). France contributed 24% of total worldwide sales. Europe (both western and eastern countries, excluding France) provided 42%, and the U.S.A and Canada together accounted for 20%; the rest of the world accounted for the remaining 14%. L¡¦Oreal¡¦s European subsidiaries were in one of two groups: (1) major countries (England, France, Germany, and Italy) or (2) minor countries (the
Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to