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L’oreal of Paris: Bringing “Class to Mass” with Plenitude

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L’oreal of Paris: Bringing “Class to Mass” with Plenitude
Group: ThomasTrain (Cindy, Debbie, Juan, Ling Ling, Sherry)
Problem Statement - L’oreal Plenitude has been introduced in the US for 8 to 9 years but the brand is still not making any profit. Should L’oreal switch everything to Revitalift which is the ‘star’ product or continue their effort in building the market share of Plenitude by improving it’s value proposition in cleansers and daily moisturisers?
Recommendations – The decision is not to switch but continue the development effort by changing the existing marketing strategy and value proposition of Plenitude thus the sales in the daily user segment can be improved, which is $799 million in 1995.
Analysis
Analysis are being conducted in the following areas 1. Product Focus 2. Brand Identity 3. Market Segmentation 4. Profitability 5. Channels

1. Product Focus * Introduce new packaging to existing product line
There were too many different types of products introduced at one time. 14 SKUs, covering three categories of basic moisturizers, treatment moisturizers and cleansers were launched to the US consumers. Based on the Acceptor/Rejector Studies in April and May 1996 (Perception of Plentitude as Full Product Line), indicates that the extensive product range confuses the US consumers and creates the impression that the Plentitude product is complicated to use. * Re-categorizing the existing Plentitude product line into three skin type categories of Normal Skin Type, Oily Skin Type and Dry Skin Type. * Packaged each Skin Type Category with different packaging design. This will help the US consumers better decide and chose the right type of skin care product when shopping. * Focus on Star Product
Too much advertising dollars were spent on launching of new products to the US consumer which did not result…...

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