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Case Study L'Oreal

In: Business and Management

Submitted By marelizecoetzee
Words 4775
Pages 20
1. What are L'Oreal's key issues for Garnier in the Dutch market?
• Whether to introduce both Synergie and Belle Couleur into the Dutch market, only one of the ranges or none at all.
• Synergie: Finding the right price for the products and whether they should introduce the antiaging cream (didn’t score as highly)
• Garnier is a new entrant into the Dutch market and as such is a relatively unknown quantity with neither positive nor negative brand perceptions.
• To build the brand, L’Oreal will need to start from scratch although they already have the distribution channels - sales people, retailers, logistics, and back office operations in place to give the new brand a head start.
• The brand is highly successful in neighbouring French and German markets however Dutch consumers are seen as having their own unique requirements and preferences for cosmetics and toiletries.
• Possible dilution of its own brand or a cannibalisation of its current market leading products Recital and Plenitude.
• Market testing has indicated that the product formulation of Belle Colour is darker, preferred by the French consumer, when in fact Dutch consumers have a preference for lighter hair shades. It has been noted that as the Dutch market is considered a minor country, less than 5% of European sales, therefore reformulation will not be possible.
• Low market orientation at the R&D level – L’Oreal won’t adapt their Belle product to suit the majority of consumers who prefer lighter shades and weren’t happy with the result (based on the market research) –more selling oriented
• Dutch competitors customized to Dutch preference/demand
• Trend towards semi-permanent – not met by either L’Oreal or Garnier
• Trend towards lighter/warmer – not met by Garnier
• Management is concerned with its sales forces’ abilities to handle multiple product lines that will do justice to both the…...

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