The product of plenitude line was still being sold only in France where it took over unit share leadership in moisturizers despite its price premium. For 1987, its dollar share of the French mass moisturizer market was leading 19.6% VS Henkel’s Diadermine 13.0% and Nivea’s 8.8%.( The data comes from the 4th page of case.) Comparing with the products in the market of France , the products of Plenitude were introduced covering 3 categories which are basic moisturizers, treatment moisturizers and cleansers. In the moisturizers of market, the share of market improved from 11.7% in 1991 to 14% in 1995 and quickly ranked to 2nd in 1996 in U.S . According to the appendix 1, treatment moisturizers and cleansers is 33.97434, 80.30488125 and 33.4940625 respectively, offering a evidence about the improving of sales of Plenitude.
Plenitude concentrates on resource, technology and supports on newest “Star Product” to pull the entire line. So the price has a 30% price premium over incumbents. In addition, its advertising strategy is distinctive. From the initial printed advertisement to sequential television advertisement, Plenitude always dominated advertising medium to expand its influence. In most people’s mind, L’OREAL Plenitude is a used by upper class and aged people who like to spend money on themselves. Oil of Olay and Pond’s has more users on Unconcerned and Price Conscious segment. It shows Plentitude didn’t going well for mass market like students, housewives, mothers etc. Apparently this is not the actual Plenitude brand image of what we want. We can see two of the vectors go in the same general direction. What this shows us is that brands which rated high on “contain AHA” were also rated high on “Exfoliate the skin”. These two vectors have highly correlated. We drop a perpendicular from the band to the vector as you can see in Appendix K. Nivea, Clinique, L’Oreal and Estee Lauder are very close to each other, which means there is a strong business competition. They will battle for the same customers or similar customers. It is obviously to see that Estee Lauder is more dominating than others. Thus, L’Oreal
should adjust its strategy to reposition itself. It can be more effective on leaving skin feeling soft or more exfoliate the skin, which it is not quite close to the other three brands. In the same way, L’Oreal can either have better effect on containing AHA or on sensitive skin. (See Chart A) According to the technologically advanced vector (See Chart B), L’Oreal has a slight advantage, but it doesn’t lead more. Clinique, and Nivea are not far behind L’Oreal. From an objective perspective, L’Oreal has advantages in certain aspects, such us Trendy, high technology. However, effective leveraging was not a luxury but a necessity.
According to the exhibit 9, containing AHA, exfoliating the skin, technologically advancing. According to the exhibit 10, the observations of customers on those aspects are considered as “like to spend money on themself”. So, they expected that product has the high price in the market. It means the marketing is in the direct what they expected because containing AHA need high price to support, exfoliating the skin is another function of the product which is added cost, and technologically advancing needs amount of skill which add the cost of product. For the Brand name. A lot of American people like L’Oreal. However, Some of them think that Plenitude is not a brand name and it means nothing for them. Therefore, the L’Oreal Company need to increase the connection between L’Oreal and Plenitude. The products of Plenitude are too greasy for American people. In this case, they need to change some products for American people and make them satisfied. For the Place, the target of this product is “Modern women”. This means the target customers are middle...
Please join StudyMode to read the full document