Globalization and oreal
Loreal case study answers
In the s LOreal took full possession of two companies, Ralph Lauren Fragrances and Helena Rubinstein which was a cosmetic maker that distributed internationally. From the global to the local communities: the second level of the big-scale strategy is to tighten the relationship between the local and the global community so to further strengthen the tie between each local community and the brand. The profit margin of LOreal is comparably low than that of the other smaller rivals. The risk indeed is that Kiehl's will be eventually perceived as a kind of upper-scale franchising thus losing its cult brand appeal. Due to the ongoing addition to the field of cosmetics, there is still the danger that other brands could surpass the profit of LOreal. To lead in that market, L'Oreal has to be diverse from within" Grand Le. Due to the many subdivisions of the Company, there is also the difficulty in the control of LOreal. The beauty market is diverse by definition. To this end the website should contain a dedicated area where customers can upload reviews of their products as well as an online forum where customers can interact with the company.
Customers experience in store: one of Kiehls distinguishing features is the storeexperience it offers to its customers.
The last acquisition that stands out above all the others is the purchase of Kiehls.
Loreal and the globalization of american beauty pdf
Due to its worldwide marketing strategy, there are also dissimilarities brought about in the campaign of LOreal products as to what image they are to project. This could be accomplished both by directly investing on innovation and education at the local level and by choosing only suppliers which agree to do so. Brands Image L'oreal uses its global platform to expand the brands globally. By proving Kiehl's effective commitment to fulfill its mission, customers would be strongly motivated both to remain and to become loyal to the brand. In the s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. The last acquisition that stands out above all the others is the purchase of Kiehls. This would mean that LOreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. LOreals research and development teams came in and work miracles within Maybelline. In order to address this question we briefly recall some key elements about Kiehls and LOreal which will be useful for our analysis. Customers experience in store: one of Kiehls distinguishing features is the storeexperience it offers to its customers. Beauty is so diverse, because populations are diverse" as cited in Jones, , p.
While the LOreal Group may be producing the best of its line, people may find that their products are not of their basic needs and would skip buying LOreal products.
This would grant Kiehls more freedom to experiment and seek for innovative solutions thus consolidating and improving its product reputation. Under many aspects this was a peculiar acquisition for LOreal as Kiehls reached a cult status by essentially applying a business model opposite to that of LOreal.
We believe that this experience could be further enhanced at least at selected stores by providing special workshops not only to learn about Kiehl's products see next section but also about healthy and natural living in general e.
To this end the website should contain a dedicated area where customers can upload reviews of their products as well as an online forum where customers can interact with the company.
Redken was well known for its extensive network of salon educators. L'Oreal has developed a winning formula by conveying the different cultures through its products such as hair dye, hair appliances, makeup, etc.
Loreal case study answers
The company has a decentralized organizational structure. LOreal made its biggest acquisition by purchasing Redken which allowed them to reassess the whole hair care division. We therefore propose an approach where the small and the big scale get combined to strengthen the brand attributes and fulfill its mission in a more effective way. Our proposal The replica strategy is necessary but not sufficient to sustain Kiehl's differentiation and identity in the long term. To this end, the role of the shop assistants should be reinforced: they should not only assist the customers but also act as their ambassadors to the company. Because L'Oreal incorporates diversity within its company, it is able to appeal to a wider range of people from different backgrounds, and people are able to relate to their products and brands. This is why L'Oreal is dominating the global market compared to other companies. The profit margin of LOreal is comparably low than that of the other smaller rivals. Such could thus hurt the possibility of higher profit for the company. Four years after the acquisition, in , the question that arises is how L'Oreal can preserve the status, the integrity and the cult following of the brand while at the same time making it grow and taking it worldwide. LOreals advertising strategy also plays a major part to its growth. In Eugene invented the first mass market of soap less shampoo and this led the success of LOreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products.
About Kiehls: Kiehls mission is not only to make profit but also to improve the quality of the community it is embedded in. Finally, by redesigning and optimizing, where needed, its supply chain and by adopting initiatives both to reduce and to compensate for its pollution, Kiehl's should aim, on the long term, at becoming a zero-impact company.
Because of the idea of global branding L'Oreal has become an international symbol of beauty. Using L'Oreal's jargon, within is Luxury division, Kiehl's could be considered as a calf as opposed to the fragrance brands playing the role of the cash cows.
based on 73 review