Saturday, March 2, 2019
Lââ¬â¢Oreal of Paris: Bringing Class to Market with Plenitude Essay
LOreal has always used its Class to Market advancement and used its high-end technologically superior products to advertise its brand. It uses the Class to Market products to finance its explore into newer technologically advanced products. The US Market is a real competitive market where all the companies put millions of dollars into advertising and other promotional events. The US market as well has a lot of potential as the volume are fashionable and piddle the specie to pay for the products that cosmetic companies make.The US market presents its own challenges people from across the world know in the US, for a cosmetic company this means that at that place are many skin tones, skin signs etc. importantly, it also means that in that respect are different attitudes and perceptions ab go forth cosmetics, consumers in get along levels, consumers budget towards cosmetics. And this differs from state to state in the US. community A maybe using a lot of cosmetics vs. Commun ity B where people feel that cosmetics are too fashionable and then abhor using them just now these opposing opinions like I mentioned also go along with subtle changes in perception amongst communities.Unlike atomic number 63 where it is easy to categorize people based on the country, in the US it is extremely difficult. There are companies that are doing it quite successfully save as the CEO mentioned, LOreal needs to figure out a couple of things before they can crack the US market. Their market destiny is stagnant and they are now fighting back however, what they need in the US is to identify which product go to what area the expensive products in all likelihood bewray better on the east coast than the west?The moisturizers plausibly sell better in the colder parts of the country in a certain season compared to the cleansers which again probably sell better on the east coast as people generally (myth or pragmatism? Only research can tell us) have much money and care mo re about their looks. Social pressure is also other factor that will affect the way people use and put across money on cosmetics. LOreal must also analyze what products to sell and which ones not to. It has hundreds of products and its very difficult to sell all of them successfully in each country. However, going with just 5 or 10 products isnt going to win the battle either.They should sell high-end products with big profit margins but they must know that there are other companies competing for the same dollars, so the product they sell must either be better or must be properly differentiated. Selling products in beauty parlors is a good idea in the US, however, they must first find out which parts of the US has more beauty parlors, where do customers get what type of treatments, and where do customers ask for specialized products vs. letting the beauty parlor adjudicate for them. The level or research that goes into introducing products for the US has to be much deeper than th e research they have done in Europe.They are basically baking on Europe to provide two-thirds of their revenues and profits. The company is focusing their resources on Europe, which is not a bad thing however, with competition getting successful int eh US it shows that there is a lot that LOreal is losing. LOreal is also losing on the paying(a) South-East Asia India and China market, there are 3 Billion people in that part of the world and less than 20% of their sales come from this region. With the money flowing into China and India, people will eventually have more spending power which means they will spend more money on items of beauty and other personal care products.
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