Marketing Management

Lecturer: Dr. Yusniza kamarulzaman

Case Study Presentation
“L’Oreal Nederland B.V”

Presented by:
Mohammad Shahid CGA 070092
Mohammad Zia Aslam CGA 070040
L’Oreal

 L’Oreal is one of the largest cosmetic manufacturer

company in the world.

 L’Oreal’s subsidiaries are in more than 100 countries in

the world.

 L’Oreal’s European subsidiaries are in 2 group-

1: Major countries (England ,France, Germany and Italy)

2: Minor Countries (Netherlands and Nine other
European
Union Nations)
L’Oreal
 L’Oreal market its products under its own name as
well as under a number of other individual and family
brand names, for example Garnier, Lancome line of
cosmetic , L’Oreal brand hair care product etc.

 France alone contributed 24% of the total world

sales,
42% of the sales in Europe excluding France, U.S.A
and Canada accounted for 20% and 14% in other
parts of the world.
L’Oreal
Issue:
Yolanda van der Zande , director of the
Netherlands subsidiary ,faced two tough
decision and was discussing them
with ,her marketing manager for
cosmetic and toiletries. “We have to
decide whether to introduce the
Synergie skin care line and Belle
Couleur permanent hair colorants”.
The Dutch market:

 The Dutch market accounted for 4% of the total

European union market.
 The fastest growing population segments were 25 or
older.
 The number of women working outside of the home is
increasing.
 As a result women have more Disposable income and
most of them were using it buy cosmetics for use on a
daily basis.
 Despite of the rising income Dutch women still shop
for value, especially in the cosmetic and toiletries.
Synergie:

 Snergie was a line of facial skin care

products consisting of moisturizing
cream, anti-aging cream, antiwrinkle
cream, cleansing milk, mask and
cleansing gel made with natural
ingredients. Its advertisement slogan in
France was “The alliance of science and
nature to prolong the youth of your skin”.
Dutch Skin Care Market:

 The skin care market was the second largest sector of

the Dutch cosmetic and toiletry market, growing at a
annual rate of 12%.

 Fast growing category in skin care market of

anti-aging and antiwrinkle creams.

 Drugstore and Supermarket accounted for 82% of the

Sales of mid and lower price skin care product.

 The largest unit sales were from chians of stores and

supermarket but maximum dollar sales from Large
independent stores.
Dutch Skin Care Market: con’t

 The competirors for synergie were Dr.vd

Hoog, Oil of OLaz (Procter &Gamble),
Plentitude (L’Oreal).
 An Innovative product or new product
could be quickly copied , retailer could
develop and introduce their own product
in four months and manufacturers in 6
months with advertisement campaign.
Belle Couleur:

Belle Couleur was a line of permanent

hair coloring products. It has been sold
in France for the last two decades with
the brand image:

“natural colors, cover all gray”.

Dutch Hair Coloring Market:

 There were two types of hair coloring products:

1: Semi-permanent
2: Permanent

 73 % of the who color their hairs used permanent color in the

past but for the last four years the trend had been to semi-
permanent.

 The majority of the sales were in chain drugstore 57%, with 40%
equally split between large and small independent drugstore.

 Hair saloon were indirect competitor in the hair coloring market.

Synergie Market Research
Findings:
 Dutch women typically purchase facial
creams only once or twice a year.
 Dutch women showing interest in natural
products.
 The participant reacted positively to
products.
Belle Couleur Market Research
Findings:
 Consumer perceived permanent hair color as a
technical product and its use was very risky.

 When considering a new brands, both first time and

current user carefully read the package information
and asked store personnel for advice.

 Hair colorant was almost exclusively purchased in

drugstores.

 33% of the women color hair to achieve warm/red

colur,17% lighten the hair color and 29% for covering
gray.
Belle Couleur Market Research
Findings: Con’t

 For Belle Couleur , buying intention increased after

the price was given but decreased after the use
,opposite to the usual concept test (synergy line)
results.

 The reason was, the product was not modified for

Dutch test .Dutch women tended towards naturally
lighter hair color and the French towards darker
shades.
Market Advantages:

 Existence of the company in the market with good market share

and brand image about offerings

 Overall image of the company (innovation oriented) and its

resources

 Positive trends in the market about both products like “Natural

Ingredients” and taking hair coloring as “fashion statement”

 Week competitors as none of them had product positioning

statement but L’Oreal already was using “Natural Ingredients”
and “covering grey with natural colors”

 Perception of retailers about the company that it offers high-

quality, innovative products supported with good in-store
merchandising
RECOMMENDATIONS:

 Synergie Skin Care

 Problem: Customers loyalty with current
brands
 Reason: Users self-perception with brand
image because of un-familiarity with technical
product descriptions
 Strategy: Product awareness campaign i.e.
Product Positioning, as increasing interest in
products with “Natural” ingredients is already
there in the segment
RECOMMENDATIONS: Cont.

 Belle Couleur:
 Problem: Perception that its risky to use a
technical product like permanent hair color
 Reason: Again it’s the users careful behavior
about package info and advice from store
personnel
 Strategy: Product awareness (Positioning)
and placement by exploiting the opportunity of
hair coloring as a fashion