L’oreal Case Study

L’oreal Case Study

Problem Identification

There is a need to find out what product lines should be introduced into the Dutch market under the Garnier name without negatively effecting the current product lines already available under the L’Oreal brand.

Recommendation

It would be feasible to introduce one of the new Garnier product lines rather then both of them at the same time. Because there is already a strong L’Oreal presence in the Netherlands it would hurt sales more if they introduced two new product lines at the same time. Belle Couleur is the product to introduce because 73% of Dutch women use hair color products, and in recent years there has been large growth in the permanent hair color market which would make it viable to introduce Belle Couleur into the market. By offering a limited selection, Garnier products will still have sales, and it will not hurt sales of Recital enough to cause concern because people will still be receiving what they expect from the L’Oreal brand.

Specifics of the Marketing Mix

Product: The hair color that is sold in the Netherlands should be specific to that regions taste, there is no reason to sell hair colors that people aren’t going to purchase, it will be a waste of shelf space because they could have more of what the consumer will purchase. 33% of women surveyed said they color their hair to achieve warm colors, and 17% say it is to achieve a lighter color. With this information, Garnier should concentrate their line on what is popular with the people they are trying to sell to.

Price: Belle Couleur should not enter the market as a cheap alternative to the other brands on the market, it should be somewhere in the middle price range. This way consumers will not see it as a cheap product and avoid it but they will see it as a viable alternative, and at least give it a chance. Also, it will not be in the same price range as L’Oreal’s hair color product because that is sold at a higher price.

Promotion: Since there is no real advertising position for consumer benefits from any of the competing brands, Garnier should make this product stand out by offering the consumer the benefits that Belle Couleur has. Advertisements that show the benefits of using the Belle Couleur would work well because it would tell exactly what the product does without leaving the consumer guessing and asking questions.

Place: When they introduce the new line of hair color they should begin to sell it in independent drugstores because the consumer can ask questions to the sales associates. They should put the product into drug chains and food stores as well, but it should be made aware to the company that sales might not be as high in those areas because items sold in these locations tend to be brands with high customer awareness.

Specifics