Case 3 Analysis: L’Oreal – Willy - 

PLEASE RESPONSE TO BELOW

 
1.  Review L’Oreal’s brand portfolio. What role have local and global marketing,
smart acquisitions, and R&D played in growing those brands?
L’Oreal has a global presence covering six of the seven continents, with 39% of their
market coming from the Asian/Pacific zone.  Additionally, L’Oreal is expecting to grow
the emerging market segment to account for over 50%of their portfolio.   Due to this
diversity, L’Oreal must focus its marketing and R&D approach to encompass both local
and global strategies.  One way for L’Oreal’s R&D to keep their finger on the pulse of
these diverse markets is to establish new research centers directly in these markets, to
enable them to not only better understand the local and cultural nuances, but to
incorporate local talent into the R&D teams.  The marketing side of L’Oreal focus on
precise target marketing is critical for their global success by reaching the right audience,
for the product, at the right time.  Capturing the regional characteristics that are so
distinct and particular, has enabled L’Oreal to truly capture the tone of global beauty. 
Furthermore, L’Oreal has targeted key acquisitions of complementary brands to expand
its global footprint, currently managing 36 brands internationally.
 
2. What are the keys to successful local product launches like Maybelline’s Wonder
Curl in Japan?
 
“We keep enriching this collection year after year to embrace new segments and
geographies and to respond to new customer demands.”1 L’Oreal does not stop at simply
expanding its own brand globally, it has made an emphasis to launch specific products at
the local and regional levels.  To be successful in launching products locally, a product
must be marketed and/or designed to specifically fit that segment.  As penned by
Margaret Wolfe Hungerford “beauty is in the eye of the beholder,” is exactly the reason
why local and regional palates must be considered in every marketing decision made by
L’Oreal.  Different body types, hair styles, and make up applications are just some of the
characteristics that differ widely throughout the world.  What is considered attractive or
desired in the USA can be considered unattractive and perhaps even repulsive in Asia,
Africa, and the Middle East.
 
3. What’s next for L’Oreal on a global level? Who are its biggest competitors?  If
you were CEO, how would you sustain the company’s global leadership?
L’Oreal’s future lies in the emerging markets of Latin America, Asia, and Africa, with an
expected market share expansion to total between 50% and 60% of there total sales. 
Continued expansion of research facilities in these areas is a must to stay in complete
harmony with regional specifications and trends.  Following this strategy will keep
L’Oreal ahead of its closest competitors, including Yatsen Holdings, Estee Lauder, Avon
products, Revlon, and CHANEL.
At the forefront of L’Oreal’s CEO’s strategy should be to continue its emphasis on local
and regional distinction.  Targeting locally with a global backing is the strategy needed
for future growth. 
 
 
1. https://www.loreal.com/en/our-global-brands-portfolio/
Case 3 -Jason van Dijk -- PLEASE RESPONSE TO BELOW
·  Review L’Oréal’s brand portfolio. What role have local and global marketing,
smart acquisitions, and R&D played in growing those brands?
 
Local and global marketing, smart acquisitions, and investments into R&D have all
played major roles in growing the L’Oréal brand(s). L’Oréal products can be found all
over the world today in various countries and they are a huge player in the cosmetic
industry. One of the key reasons L’Oréal is so global is due to the way they target their
markets ever so precisely, for example, when they released the mascaras specifically
made to Asian women’s requisite. In addition, the acquirement of companies such as
Carson and Soft Sheen aided L’Oréal in removing competition.
 
· What are the keys to local successful product launches like Maybelline’s
Wondercurl in Japan?
 
The keys to local successful product launches like the Maybelline’s Wondercurl in Japan
are: 1) hearing and noticing customers’ needs and wants, 2) gain understanding of these
needs and wants, and 3) satisfying these needs and wants with high quality products.
Wondercurl was prosperous because L’Oréal reinvested 3 percent of their sales on
Research and Development and investing into new laboratories to create new beauty
products. 
 
·  What’s next for L’Oréal on a global level? Who are its biggest competitors? If you
were the CEO, how would you sustain the company’s global leadership?
 
L’Oréal’s biggest competitors are obviously other beauty and cosmetic international
companies like Neutrogena, Chanel, Estee Lauder, etc. These companies have also grown
and expanded their product lines in many countries around the world and have similar
pricing and company structure as compared to L’Oréal. In order to keep competing in this
global market, L’Oréal must continue to innovate new products, listen to their customers’
needs and wants, and continue reinvesting their sales into Research and Development. In
order to sustain the company’s global leadership, if I were the CEO of L’Oréal, I would
invest and innovate into the areas of hair and skin care as well. These areas have become
quite lucrative because more and more people are paying attention to their skin care and
require products that will help with their conditions, whether it’s dry skin or oily skin,
L’Oréal should start developing products to combat these skin issues. In addition,
L’Oréal can also come up with products that are geared towards the middle class as well
and offer low pricing products.
CASE AXE & DOVE – JASON VAN DIJK--- PLEASE RESPONSE TO BELOW
· What makes personal marketing work? Why are Dove and Axe so successful at it?
 
The personal marketing works efficiently to reach the consumer and attempts to resolve
their any issues that they may be experiencing. Personal marketing assists the company to
create a face-to-face interaction to fulfil them. Axe and Dove personal care brand of the
Unilever became lucrative and popular because Unilever creates these products following
the inquiry of the lifestyle, target group, and demographics for customer fulfilment.
 
·  Can a company take personal marketing too far? Explain.
 
A lot of times, companies do not use personal marketing where they can possibly take it
too far. This is because it forms strong customer relations along with customer fulfilment
as it relates to the actual product lines. If, however, the personal marketing does indeed
go too far, then companies would not use the product in the long run. So, in conclusion,
personal marketing can be taken too far but it really depends on the product you are
promoting, and the demographic of the targeted consumer you are trying to attract.
 
 
·  Is there a conflict of interests in the way Unilever markets to women and young men?
Is it undoing all the good that might have been done in the “Campaign for Real Beauty”
by making women sex symbols in Axe ads? Discuss.
 
Personally, I do not believe that there is a conflict of interest in the way Unilever markets
to women and young men. The reason I think that there is no conflict of interests is
because they advertise for both female and male equally and fairly. However, Axe uses
women to garner male attention in order to buy their products. I am sure that there are
many ways you can advertise to men without putting women sex symbols in their
advertisements. These types of ads can be deceptive to the male audience.
Unilever – Axe and Dove Analysis # 4 WILLY--- PLEASE RESPONSE TO BELOW
 
1.  What makes personal marketing work? Why are Dove and Axe so successful at it?
Personal marketing works because it targets a very specific and granular demographic for
a product specifically created for such demographic.  It is like a laser beam on a rifle
scope, aiming at the bull’s eye of a target. 
Axe has been able to tap into this strategy in two ways.  It targets a specific demographic,
young males, and does so by utilizing unconventional media channels, further narrowing
that scope.
Dove has targeted a specific demographic with their “Real Beauty” campaign. 
Emphasizing that real beauty comes in all shapes, colors, ages, and sizes, successfully
reaching the 96% of women worldwide who see themselves as unattractive under
conventional guidelines, smashing stereotypes of what beauty is.
2.  Can a company take personal marketing too far? 
In an age of the “#meetoo” movement and gender equality, some of the personal
marketing techniques could be seen as offensive, or at least outdated.  In the marketing
strategy of Axe, which targets young males in a specific demographic, skinny, average,
and mostly unattractive, able to suddenly attract beautiful girls by simply using the
product, could be perceived as sending a message of sexualizing young women. 
3.  Is there a conflict of interest in the way Unilever markets to women and young men?
Is it undoing all the good that might be done in the “Campaign for Real Beauty” by
making women sex symbols in Axe ads?  
 
There is, in my opinion, a tremendous conflict between the two messages.  If the “Real
Beauty” idea is accurate, then why are the women that Axe products attracts not resemble
that 96 % demographic?  How effective would the Axe campaign be if young men using
their body sprays would suddenly attract middle aged, overweight women instead of 20
something model types? 
The other side of the coin is to decide when does accepting that beauty comes in all
shapes and sizes start to overlap with relaxing on health concerns.  Any person who is
severely overweight is at a much higher risk of life-threatening health issues.  Do
corporations not have a responsibility to not promote such lifestyles by glorifying those
behaviors as beautiful?
BLOG 2 - WILLY – PLEASE RESPONSE TO BELOW
What is a high-touch promotion? Explain the difference between high-tech
product/service positioning and high-touch product/service positioning in domestic
and international markets. Can some products be positioned using both strategies?
Explain.
I think the best way to define High-Touch promotion is to create a picture of the old-time
shop owner.  He knew you by name, knew about your family, likes, dislikes, and was
always quick with a favorable comment on the local sports team or perhaps local gossip. 
I know that I am taking this to the upmost level of high-touch, but you get the picture.
High-tech, in contrast is the ability for a customer to onboard themselves, serve
themselves and even monitor the CSR themselves through social media.  Making the
customers journey happen exactly when they want it to happen.
I think that some products are better set for High-tech promotions, yet others still require
the human interaction.  For the time being, customer interactions that are not requiring
high efficiency and speed, such as shopping for a new home, a sports car or boat, or even
a wedding dress or expensive Italian wool suit, still require the human touch. 
BLOG 2 JASON VAN DIJK --- PLEASE RESPONSE TO BELOW
· What is a high-touch promotion? Explain the difference between high-tech
product/service positioning and high-touch product/service positioning in domestic and
international markets. Can some products be positioned using both strategies? Explain.
 
High Touch can be described as the emotional or human aspect of doing business. For
example, receiving customer service at a Target. The interaction is personal and friendly.
High Touch needs high level interactions with consumers. Marketing of high-touch
products needs minimal importance on specified data and increased importance on look.
Similar to high-tech products (like computers and stereo equipment), on the other hand,
high-touch categories are very involved with customers. Products that can use both high-
touch and high-tech positioning are vehicles. Vehicles require extensive technical and
mechanical knowhow but the salesperson selling said vehicle adds a personal experience
to selling process.
1. Review L’Oreal’s brand portfolio. What role have target marketing, smart
acquisitions, and R&D played in growing those brands? The success of L’Oreal is
a result of tactical choice of markets, targeting them wisely, thorough research and
development and smart acquisitions. It is one of the leading cosmetic companies in
the global market. Over the years it has created a successful brand value and
expertise in the field of cosmetic and beauty products. Targeting the market was
one of the factors that play pivotal role in L’Oreal success, the company targeted
 the audience with products as per their requirements, like, in Japan they marketed
mascaras specially designed and volume as per the requirement of Japanese
women. Acquisition of local beauty companies like Soft Sheen Products and
Carson Products helped them to eliminate competition and also gain huge profits
in U.S. and African Markets. L’Oreal spends 3% of its annual sales in research and
development with 14 research centers around the world. Clear concepts about the
different skin and hair and their different needs around the world helped them to
design diverse products for all.

2. Who are L’Oreal’s greatest competitors? Local,global, or both? Why? The major
competitors for L’Oreal are companies like, Lakme, LVMH Moet Hennessey
Louis Vuitton, Estee Lauder and Chanel etc. The skin care, makeup, fragrance and
hair care businesses are characterized by intense competition over the world. As
each company products are close substitutes to one another.

3. What has been the key to successful local product launches such as Maybelline’s
Wondercurl in Japan? The eyes and eyelashes of the women in the Western Asia is
different. They have small eyes and their lashes are short and straight. Thus, when
the R&D team of L’Oreal companies came up with the idea of Wonder curl
Mascara, it became a instant success. 4.What’s next for L’Oreal on a global level?
If you wereCEO, how would you sustain the company’s global leadership?
L’Oreal is already a successful brand in the global market. Its success is seen
especially in the areas of make-up and hair product, and not in the skin care. It is
now required to come-up with different skin care products for people. Also, the
price factors have to be kept in mind. Most brands are distributing their products at
a reasonable cost. L’Oreal can achieve success in the middle-class people by
setting a reasonable price for them.
 PHÂN TÍCH CASE STUDY CỦA L’ORÉAL
L’ Oréal, công ty mỹ phẩm và sắc đẹp được thành lập từ hơn 100 năm trước tại Pháp bởi
Eugene Schueller- một nhà hoá học trẻ tuổi. Có thể nói ở thời điểm hiện tại thì L’Oréal là
công ty hàng đầu thế giới về các sản phẩm làm đẹp, với mạng lưới phân phối rộng lớn tại
130 quốc gia, 27 thương hiệu toàn cầu và có doanh thu hơn 30,8 tỷ đô la. Với mục tiêu
chủ yếu là “tạo được sự đa dạng” và “ đáp ứng nhu cầu cho phụ nữ và nam giới trên toàn
cầu, đồng thời cung cấp các sản phẩm làm đẹp cho càng nhiều người càng tốt”, L’Oréal
tập trung chủ yếu vào năm lĩnh vực về chăm sóc sắc đẹp là chăm sóc da, chăm sóc tóc,
mỹ phẩm, nhuộm tóc và nước hoa đồng thời chia các thương hiệu của mình thành 4 nhóm
sản phẩm chính như Sản phẩm tiêu dùng (Consumer Products), L’Oreal Luxe, Sản phẩm
chuyên nghiệp (Professional Products) và Dược mỹ phẩm (Active Cosmetics).

Từ các hoạt động của L’Oréal, có thể thấy công ty đang thực hiện chiến lược toàn cầu
hoá trên bối cảnh địa phương. Để chiến lược được thành công, L’Oréal tập trung rất
nhiều thời gian và tiền bạc cho việc nghiên cứu, với chi phí R&D là 3,5% doanh thu hàng
năm. Và cũng nhờ vậy mà L’Oréal nhận ra rằng thói quen, nhu cầu làm đẹp giữa các địa
phương là rất khác biệt vì thế L’Oréal đã sử dụng các yếu tố nhân khẩu học để phân khúc
thị trường của mình. Chẳng hạn như với các sản phẩm tiêu dùng, L’Oréal chủ yếu hướng
tới thị trường đại trà, những người tiêu dùng có mức thu nhập trung bình, các sản phẩm
dòng L’Oréal Luxe sẽ dành cho các khách hàng trung lưu và thượng lưu, các sản phẩm
chuyên nghiệp sẽ dành cho các salon tóc và Dược mỹ phẩm cho các hiệu thuốc.