Consumer Behavior

Assignment

Submitted By:
Group 4
Aashna Jain (190101001)
Arun Chakravarthy Tadepalli (190101031)
Diksha Singh (190101043)
Mandar Sudhir Aparajit (190101059)
Medha Bhattacharjee (190101061)
Mustufa Murtuza Dhilawala (190101066
Q1. What are the various skin-care products in Plenitude’s product line?
Explain the type of decision-making consumers are likely to follow for the
purchase decision of each.

Product Decision Type

Moisturizers
Regular Cognitive
Oil Free/ SPF15 Cognitive
Hydra (Jar/ Tube) Cognitive
Wrinkle Defense (Jar/ Cognitive
Tube)
Advanced Overnight Cognitive
Eye Defense Cognitive
Excell Cream Cognitive
Excell Lotion Cognitive
Serum Cognitive
Revitalift- Face Cognitive

Cleansers
Deep Cleansing Gel Cognitive
Hydrating Cleansing Cognitive
Cream
Hydrating Floral Cognitive
Toner
Clarifying foaming Cognitive
gel
Clarifying Mask Cognitive
Clarifying Toner Cognitive

Most of the Plentitiude’s products involved cognitive type decision making. The need for the
purchase decision can be broadly identified as
1. Need to look good
2. Skin treatment
In both cases, since the product involved the interface on to the skin. Women liked to thoroughly
understand the ingredients and chemicals that have gone into the making of the product.
Few products which are under the need to look good may eventually move into the habitual buys
after the consumers are convinced that this is the product that they would like to use.

But most of the products which are used for skin treatment are more towards the limited level of
decision making.
Q.2 How is Plenitude’s position in the U.S. market in early 1996? Why has it
apparently been less successful in the U.S. than in France when the French
“success formula” was used in the U.S. too?

In 1996, Plentude ranked up to the second position, behind the market leaders- Oil of Olay.
Plentude was in a long competition with Ponds for the second rank and this move of position
happened due to the introduction of a new product- Revitalift. It was the 20th product of Plentude’s
product line, sold in USA in 1.7-ounce containers and sold at a rate of $11.05 per box. This product
brought in many new users into the L’oreal family as it targeted the population in its entirety as a
treatment product (anti-wrinkle and firming care). Previously, plenitude was perceived as a brand
for the older people because of its tagline “Reduces signs of aging”.
The general perception of L’oreal at this time was that of a brand offering high quality and
premium product lines delivering on their claims.
The lack of success in U.S. was evident in the fluctuating positions that Plenitude maintained
regarding market share between Oil of Olay and Pond’s and for the decade the product line existed
without generating profits. Factors which affected L’Oreal’s performance included the firm’s
relatively recent entry into a very competitive marketplace which would be depicted as
demonstrating a high level of rivalry. Rivals such as Pond’s and Oil of Olay benefitted from
established positions in terms of branding, channel management and the amount of intimate
knowledge of consumers and the competitive landscape. Additionally, the strategy of L’Oreal
involved licensing the company’s Technique Professionelle, Salon Classics and Redken divisions
to Cosmair. The separation of these identities gave the corporate brand less controlling influence
over the entire business initially.

The roll-out of the Plenitude line was quite the opposite in US where L’oreal launched 14 SKU’s
immediately within 3 categories under the Plenitude product line. This seemed contrary to the
original ‘trickle down, fire-up’ philosophy. The response was mixed with many consumers feeling
confused and over-whelmed by the product’s communication strategy as consumers didn’t enjoy
the idea of having to put in so much effort in the research that needed to be done before choosing
a single product from the vast variety available. In addition, the consumers found the names
complicated and unclear in their description.
Q3
(a) Provide a comparative assessment of the consumer’s perception for
brands Olay, Ponds, and Plenitude on product features, pricing, and
availability
Parameters Olay Ponds Plentitude
Product Features Few Limited Many/High
AHA content Very Low Very Low Medium-High
Skin exfoliation Very low Very Low Medium
SPF content Low Very Low Low
Technologically Low Very Low Medium-High
advanced
Price Reasonably Priced Reasonably Priced Premium
Availability Medium High Limited

(b) Describe the consumer’s perception about the brand personality of

brands Olay, Ponds, and Plenitude

Parameters Olay Ponds Plentitude

Stylish Low Very Low Medium
Upper Class Low Very Low Medium
Sophisticated Low Very Low Medium
Romantic/Feminine High Very Low Medium
Glamorous Low Very Low Medium
Traditional Medium Medium Very Low
Old fashioned Low High Very Low
Natural Low High Very Low
Trendy Very Low Low Low
Experimental Very Low Low Low
Adventuresome Very Low Low Low
Key insights:
● Customers perceive, Plentitude as a stylish, trendy and glamorous brand. It is a bit
more expensive when compared with Ponds and Olay but it is perceived to be of
better quality. They can relate to the Brand L’Oréal and aren’t aware of
Plentitude.
● Ponds is generally looked as brand which has been passed down from generation.
It’s the cream which has been used by the women above 40’s. It is old fashioned
and traditional. They couldn’t associate Ponds with glamour and glitz.
● Olay, is considered as a traditional cream. It is romantic and feminine. Consumers
feel that it is made from natural ingredients. It was reasonably priced and had a
good value for money.

Q4) Based on your understanding of all three market research data, what is
L’oreal Plenitude’s problem? What course of action and changes in
marketing strategy do you as a group suggest? Provide supporting reasons
why L’Oreal would support your suggested course of action.

On the basis of the three market research data as collected by L’oreal following problems can be
detected for L’oreal Plentitude:
1. Unable to establish its own brand image
L’oreal as a brand had established itself in the minds of people and was quite famous
amongst the masses but the same did not apply to Plentitude. The users of the brand
related it to brad L’oreal and were satisfied using it because it came under the umbrella
brand of L’oreal. But Plentitude failed to segregate itself from L’oreal and establish its
own brand image in the minds of the consumers.

2. Disconnect due to naming

Many of the consumers found Plentitude product naming as overwhelming and
associated it with high end priced products. Because of the complicated naming of the
products, the products did not seem approachable and buy worthy option to the consumer
due to the perception of it being beyond the consumer budgets.

3. Packaging Issues
The packaging of the products was seen as too wordy, complicated and confusing by
many of the consumers. Although the opinion about packaging was mixed as many of the
consumers found the packaging to be attractive.
4. Perceived as product of the Age Focused groups
The Plentitude products were associated and perceived to be Age Group specific and
focused on the population which fall under the ‘Stressed Out’ group. About 54% of the
consumers of Plentitude fell into this category. Due to majority usage by the Age focused
 target audience, the products were presumed to be of use to older women for reducing
wrinkles and signs of aging.

The recommendations to solve the above stated problems are as given

below:

1. Revamping packaging
Since the packaging was viewed as complex and wordy by many consumers, the brand
should try and limit the words and instructions on the package of the products. This
would make the products packaging more attractive and likable by the audience and
would encourage them to try out the products. Also, any instructions to be given to the
consumers can be included in the leaflets inside the package of the products.

2. Simplify Product naming

The naming of the products should be such that the consumer find it unique and easy to
remember. Currently, the target audience are intimidated by the naming of the products
and perceive its as expensive and hence it reduces the trial opportunity of the products.
The brand should work on including easy to remember names.

3. Rebranding
The brand should target younger generation and introduce products targeted at them. The
current competitor of the brand is Oil of Olay in this segment, it is proposed to offer one
daily moisturizer and one cleanser with a lighter, milder texture, to meet the needs of the
younger consumers. The brand should continue with such introductions and aim to
include more share of young population on board.