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Review l oreal brand portfolio

24/11/2021 Client: muhammad11 Deadline: 2 Day

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.

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