edf40wrjww2CF_PaperMaster:Desc
L'Oreal Case
Mike Pekhazis
Professor Young
MKT 301
L'Oreal Case Study
Mike Pekhazis
Robert Young
11/7/2005
Ms. Hamilton needs to decide how to improve further upon Plenitude's current operations in the US, in terms of product offerings and packaging. Another rather important decision that must be made is how to introduce a new product (Revitalift-Eye) into the product line.
After reasonable success in France, the brands performance in the USA has been rather disappointing. In 1995 they have lost an approximate $12.5 Million on the brand, but are determined to start making money off within two years time. Plenitude's role in the L'Oreal family was to start bringing "class to the mass." L'Oreal wanted to use this new brand name as a way to "Trickle down, and Fire up" all of their products. They also knew that they could do this at a premium price compared to their closest competitors in the market, Nivea and Diadermine, thanks to their quality perception.
However things were a lot different when they exported this brand to America. When they launched Plenitude in France it was still a young product with only a single moisturizer product, and sequentially with a couple more specialized moisturizers, and cleaners. However when it was launch in America they decided to launch 14 SKUs at once and this decision, I believe, confused American buyers completely.
Plenitude products were to be sold through "self- service" stores such as pharmacies and supermarkets in the Health and Beauty Aids section. They intended to recreate the department store experience in a self-service format ...