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1. 1. L'Oreal Of Of Paris: Paris: Bringing "Class To Mass" With Plnitude A CAS CAS SOL!TO# SOL!TO# B$ : APOO%& MAL! . . #T%O(!CTO# : L)Oreal ′ *ran+e ,ased leading glo,al +os-eti+ +o-an/. *ounded in 100. ′ Led ,/ Lindse/ O2en 3ones4 the +hair-an and CO of the Co-an/. ′ A+hie5ed dou,le digit ro6t for eighteen +onse+uti5e /ears. ′ Business in 17 +ountries 2ith a turno5er of around 17.8 ,illion uros. ′ Onl/ +os-eti+ +o-an/ in the 2orld to o2n -ore than one ,rand fran+hisee. ′ Cos-eti+ industr/ refers to the +os-eti+s4 toiletr/ and erfu-er/ industr/ ,rands.

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7. 7. Plnitude 9 L)Oral)s 6rst 5entures ,e/ond the h air +are and +os-eti+s arena. 9 *ran+e ositioned the ,rand as high end4 suerior erfor-an+e ,ut a++essi,le.; 9 Plnitude 2as introdu+ed under a +lass of the -ass; strateg/. strateg/. 9 The su++ess of Plnitude in *ran+e *ran+e 5alidated the +lass to -ass; strateg/ in the -inds of L'Oreal e SF!)s 2ere introdu+ed +o5ering three +ategories: 1. Basi+ -oisturi?ers . Treat-ent Treat-ent -oisturi?ers 7. Cleansers 9 t had a 5er/ strong introdu+tion in the !nited States4 Kui+=l/ ,e+o-ing the  ,rand in the -ar=et4 - ar=et4 onl/ ,ehind Oil of Ola/ . . 9 Plnitude sales gre2 rett/ 2ell through 1001 and the +o-an/ 2as a+hie5ing 2hat it set out to do. 9 But then it Nust hit a four/ear sales lateau. 9 t lost the  osition to Pond)s. 9  or 0 /ears after the !.S. introdu+tion and the +o-an/ still 2as not -a=ing an/ -one/ there.

0. 0. T@ 0. T@ F$S 1. -ro5e the toline  ,rea= through the sales lateau and and get -ore rodu+t -o5ing o the shelf to -aintain a strong osition 2ith the trade. . et the ,otto-line -o5ing in the right dire+tion Kui+=l/. Kui+=l/. 7. et the united states in a osition to ,e a -aNor +ontri,utor to the ,rand)s osition glo,all/. >. Ma=e sure that the +o-an/ has suita,le s=in+are rodu+ts for the !.S. Custo-er ,ut also that the/ 6t 2ithin L'Oreal's te+hnolog/ ortfolio. 1.1. 1. 1. %ethin= All Ase+ts Of L'Oreal's Business 1. (oes L'Oreal ha5e too -an/ dierent t/es of rodu+tsQ . s the re-iu- ri+ing strateg/ aroriate for all the rodu+tsQ *or an/ of the-Q 7. s the star; s/ste- of utting al-ost all the -edia dollars ,ehind the ne2est and -ost te+hnologi+all/ ad5an+ed rodu+t still the ,est 2a/ to goQ >. Are ase+ts of the strateg/ too *ren+h; *ren+h; for the !.S. -ar=etQ E. @o2 to ,est utili?e u tili?e an asset 2hi+h the +onsu-er resear+h sho2s is 5er/ o2erful and no one else in this ,usiness has  the L'Oreal ,rand na-eQ 11.11. 11. 11. T@%A  T@%ATS TS A#( SOL!TO#S SOL!TO#S !#AWA% !#AWA% O* O* !S C!STOM%S TOO MA#$ P%O(!CTS: CO#*!SO# L(%S P%O(!CT @@ P%C# MA%FT %SA%C@ B$ AC #LSO# A#( SL* S@O%T#( %A# O* P%O(!CTS *%OM RA#)  TO R*ACL*T) R*ACL*T) P%CC!TS P%CC!TS O# MOST!%%S 1.1. 1. 1. T@%A  T@%ATS TS A#( SOL!TO#S SOL!TO#S SALS # T@ !.S. : &%$ &%$ POO% P%O*TS : #AT& IT#S& A(&%TS# C!STOM%S LO$ALT$ *O% COMPTTO%S P%O(!CT CLMATC A#( SF# (**%#CS TAF# #TO CO#S(%ATO# *O%M!LA P%OBLMS: %AS$ P%O(!CTS 17.17. 17. 17. P%CPT!AL MAPP# 9 The i-age +reated ,/ L'Oreal is of te+hni+all/ sohisti+ated s=in +are used ,/ elderl/ 2o-en. 9 The user i-age of L'Oreal is rodu+ts for e. 1>. %COMM#(ATO#S %COMM#(ATO#S 9 %einfor+e %einfor+e L'Oreal)s osition as a inno5ation te+hnologi+al leader. leader. 9 Continue in the dail/ -oisturi?er and +leanser -ass -ar=et. 9 *ollo2 Rstar rodu+t) ro-otion strateg/. 9 Maintain re-iuri+ing  Be+ause  a- 2orth it 9 Change the te+hnolog/ and rodu+t a++ording to geograhies.

L'oreal Presentation 1. 1. TAM nternational S2aggersBe+ause /ou)re 2orth it . . . >. The osition is 5ulnera,le in !S as the/ are e SF!Us at the sa-e ti-e in !S.W9 Pa+=aging 2as not ai-to2ards !S +onsu-ers9 Produ+t 2as not design forthe !S seg-ent9 @igh ri+e +o-are to+o-etitors9 7V +usto-er retentionrateT9 n+rease+o-etitionZintensit/of ri5alr/9 Last -o5erdisad5antage in !S E. E. 8V of the !S -ar=et =ne2 of the rodu+t4 8V used it and retentionrate of  7V fro- 1001 to 100E.LUOreal has E8V -ar=et otential4 ese+iall/ 2ith the theirse+ialtiesW9 Le5erage their rodu+ts usingY+lass to -assU and Yti+=ledo2n and 6re uUB9 !s+ale s=in+are ,usiness9 To line i-ro5e-ent9 Ma=e !S -aNor +ontri,utor to,randUs glo,al ositionM9 Co-etitors ◊in+rease -ar=etshare9 @uge sales for+e againstLUOreal9 #o glo,allo+al aroa+h@9 ood reutation and+o--it-ents9 Produ+t edu+ation9 (eart-ent store en5iron-ent J. J. The > ,iggest la/ers +ater al-ost JEV of the -oisturi?er -ar=et2hi+h in+reases the ,arrier of ne2 entr/.@igh le5el of ris= due to intense +o-etition +an ,e -itigated,/ in+reasing ,rand 5alue to infor-ational

ad5ertise-ent andlo2ering ri+e.Po2er ofSulierPo2er ofBu/erThreat of ne2entrantThreat ofSu,stitutentensit/ of%i5alr/ ¬ Co-etiti5e ri+e ¬ Brand er+etion ¬ ntro of ne2 SF![Plenitude\¬ Pri+e sensiti5e¬ La+= of rodu+tinfo¬ V of the -ar=et.Seg-ent #a-e !n+on+erned ngredientAatheti+Pri+e Cons+iousSo+iali?ersStressed Out Aged *o+usedCore #eed S=in @/dration S=in @/dration S=in @/dration S=in @/dration S=in @/dration(ierentiatingBene6t&alue %edu+ing Signsof AgingBetter Loo= e+ti5eness #aturalngredientsSeg-ent Si?e EV 18V 18V V 1VFa/ (e-ograhi+ Teens 7  > CollageStudentsZ$oungAdultsSu++essfulBusiness2o-anWor=ing Mu-sPri+e Paid Lo2 Mediu- Mediu- @igh @ighZMediu-Sa-le Produ+t Ponds #i5ea Oil Ola/ Plnitude Alha @/dro< . .Mar=etPenetrationProdu+t(e5elo-ent(i5ersi6+ationMar=et(e5elo-ent< isting#e2#e2treat-entD.0 !S( -illion and 7.1 -illion rese+ti5el/4 in100E. 0. 0. %edu+e thenu-,er of SF!s#e2 -ar=etingstrateg/*o+us onte+hnologi+all/ad5an+e rodu+tsLose .7V-ar=et shareain 1V -ar=etshareain 18V -ar=etshare%e+o--endation:%edu+e nu-,er of SF!s4 de5ise ne2 -ar=eting strateg/ andri+e redu+tion ,/ V in order to in+rease ro6ts to >MA +hange in -ar=eting strateg/ 2ill lead to a 1V in+rease of -ar=et share 1.1. Produ+tLeadershiOerationalMTa=ing Produ+t Leadershi aroa+h4 there 2ill ,e an in+rease of -oisturi?er treat-entand -oisturi?er dail/ -ar=et share to 7V and 1>V rese+ti5el/. 11.11. $earl/ sales o,Ne+ti5e in+rease of E8V.The -ar=eting lan 2ill gain >M in re5enue ,/ 1000.9 Strategi+ goal: gain-ar=et share of1J.10V ,/ 1000 Produ+tstandardi?ation Pri+e redu+tion ofV Ad5ertise-ent,udgetrearrange-ent9 Ta+ti+al lan:Guarterl/ sales of.M9  Total annual sales ofJ.EM144 E44E441441E4444E447 440E 0J 08 0 00  1Plnitude E $ear *ore+astTotal Sales Pro6tMar=eting Plan 1.1. Plnitude Produ+t Sele+tion of Mar=eting Seg-ents4 (ou,le Star rodu+t sele+tion a-ong Pri-ar/Mar=eting Seg-ent Moisturi?er 

 Treat-entDMoisturi?ers  (ail/ Si?e o?D 5er/da/ A5erage %etail Pri+e @4 @/dra  %ene2al 3ar 1.8 1.18M4 A+ti5e (ail/ Moisturi?er  SP* 1E ] > 8.1L ^ A+ti5e (ail/ Moisturi?er > 8.11Moisturi?ers  Treat-ent@4 /e (efense ] .E 1.8@4 *ir-ing *a+ial Seru- 1 1E.10M ^ %e5itali ] 1.8 1.71M4 Ad5an+ed O5ernight %elenisher 1.> 1.JM4  11.7JL4 Ad5an+ed Wrin=le (efense Cr_-e Tu,e1. 1.7CleansersM4 @/drating Cleasing Crea] J 8.8@o2e5er4 in the long run4 2e 2ill adat to the standardi?ed need ofthe -ar=et thus in+reasing our long run sales er rodu+t ,/ 18V%edu+ing SF!s 2ill de+rease E. in sales assu-ing that 2e lose those se+i6++usto-ers that re5iousl/ ur+hase the dis+ontinued rodu+ts.SF! (e+rease9 Moisturi?ers 2ouldha5e at least 7rodu+ts 2ith oneStar;9  Treat-ent -oisturi?er2ould ha5e t2oStar;4 one high andone -ediu17.17. We 2ill o,tain a /earl/ in+rease of 10V in 5olu-e ofsales.Pri+e redu+tion of V on all rodu+ts..1>E.88 E.J00.JJ1.1E0.E 0.10.0.>E.JJ1.188.1 8.111.81E.101.71 1.J11.7J1.78.8..>.J..1.1.1>.1J.@/dra  %ene2al 3arA+ti5e (ail/Moisturi?er SP* 1E ]A+ti5e (ail/Moisturi?erMoisturi?ers Treat-ent/e (efense]*ir-ing*a+ial Seru-%e5itali ] Ad5an+edO5ernight%elenisher.1>. 1.E18.E8.E1.EPlanned Budget on $ear J inMillionsM 4 A+ti5e (ail/Moisturi?er  SP* 1EM4 %e5itali@4 /e (efenseM4 @/drating CleasingCrea-Mar=eting %eaear+hn+rease sales ,/ 1V /earl/ er Star; rodu+t.The -ar=eting lan 2ill gain >M in re5enue ,/ 1000.9 Searate -ar=etseg-ent: Star rodu+t:9 Moisturi?er dail/9 Moisturi?ertreat-ent -ainfo+usD t2o starrodu+ts9 Cleanser Mar=et %esear+h9 Adat for+ontinuous -ar=et+hange dierentrodu+t needsDBudget Plan 1E.1E. LUOreal 2ill ,e the leader in -oisturi?ing +ategor/ ,/ 1 2ith7E.78V -ar=et share.With the ne2 -ar=eting lan4 LUOreal 2ill ha5e a total -ar=et share of 7.0V in.1>V1JV17V17V1>V1>V1EV1EV1JV1JV18VMoutiri?er VPlenitude Moisturi?er Mar=et Share100E 5s 1000100E10007J.JV1.0V7V1>V.VE.V1.V1E.V.VE. V7.V7E.V>.VTreat-ent Moisturi?er (ail/Moisturi?erPlenitude nner Mar=ets Share 100E5s 1000100E1000 1J.1J. T@A#F $O! 18.18. 0CA+ti5e (ail/ Moustari?er Lotion Oil *ree JJ10M(@/drating *loral Toner E078>CWrin=le (efense Crea- Tu,e E>JEMT@/dra%ene2al Crea- Tu,e E171M((ee Cleansing el Tu,e >J88CClarif/ A7  Cleanser >>81CClarif/ing Toner J0>1JCProdu+t Mar=et Seg-ent  &olu-e  Produ+ts de+rease V de+rease of Total SalesMousturi?er  Treat-ent 188J>  J.0VMousturi?er  (ail/ 117E71  >.>VCleanser 707> E 11.VTotal (e+rease  E48E741E. 0 .7V .. .J1E.0>7>.E.J>7.11J.7J.8.Plenitud Ola/ Ponds Alha@/dro.E 1>.0> Moisturi?ers  Treat-ent Moisturi?ers   Treat-entL ^ Age def/ingLotion7 1.00@ ^ Age (ef/ingProte+ti5e%ene2al Crea- 8.71@ ^ Sheer Si=lMoisturi?er SP*1E1E.JCleansers M ^ #ight of Ola/  J.>EM ^ A@Anhan+ed Lotion]11.77@ ^Self *oa-ingCleaner> 8.>>L ^ %eleninshingCrea- > SF!s,/ t/eD .87L ^ Sot LightTargeted S=inLightener1.00M ^ Cold Crea- 7.E >.0 Cleansers CleansersL ^ %efreshingToner8 E.J@ ^ Age (ef/ing(ail/ %ene2alJ.8 >.8J Toner Astringent 8.00M ^ %efrenishingTonerJ.8 >.EJL ^ Age (ef/ing(ail/ %ene2al8. 7.0 .. >87 J70J 4774110A+ti5e (ail/Moisturi?er  SP*1E ]E.8J 1>0487> 1817 1EJ EE> 14>EE47A+ti5e (ail/Moisturi?erE.J 17J480 1J107> 10E0> 0E 1477408>Moisturi?ers Treat-ent/e (efense ] 0.JEJ 11478 E178 7>1J 7EEJ8 74>7J4EE*ir-ing *a+ialSeru-1.1E EJ4> J81J 1 0E7 141E>4%e5itali ] 0.> E174> J11>E1 870EE JEJ71 4E>487Ad5an+edO5ernight%elenisher0. 1E4J0 1>0E1 1007 118J1 48J40EE 471 >17J0 0EJ 7>18J 41E4JE8Cleansers@/dratingCleasing Crea-]E.JEJ 114E87 171E 1E01> 1J 14E74JTotal &olu-en+rease 148400 7>8477 >EJ480> >>84>>1 J4>814

7.7. Mar=et ro2th0E 0J 08 0 00  1Mar=et ro2th >8144 E114E4 EE44 E04E4 J7744 J874E4 81>44Total Sales JE40>4 J4>84> >14E8141J JE4JJ41 14>J401 1J48J41E0 E4E8E4E8Mar=et Share O2nershi 1>.V E.1V 8.E7V 11.V 1J.10V 7.0V 7E.78V.>. *uture Ta+ti+al O,Ne+ti5esPeriods 0J 08 0 00  1Targeted Sales J4>84> >14E8141J JE4JJ41 14>J401 1J48J41E0 E4E8E4E8Guarterl/ O,Ne+ti5es 4J41J1 174E848 148EE4J7 7>41EJ408 E74JE47J >41014E8