Running Head: Assignment 1.2 Project Report #1
Assignment 1.2 Project Report #1
Reshonda Tillman
Jones International University
July, 12 2013
Assignment 1.2 Project Report #1 2
Assignment 1.2 Project Report #1
L’Oreal is a leading international company in the colour cosmetics. It markets a range of global brands in most key sectors, with a differentiated presence in both the premium and mass-market sectors. Considering the principal sub-cultural influences on the make-up market and the internal capabilities of L’Oreal enterprise together with the latest trends in the microenvironment the following strategies should be developed and pursued: In order to remain in line with current trends, it would no doubt be beneficial to L’Oreal to consider further expansion into the premium segment, perhaps by acquiring a premium natural brand. This would allow L’Oreal to compete on a better level with other premium brands, such as those owned by Estée Lauder. A premium product perhaps multifunctional will allow targeting aging consumers, particularly baby-boomers and young working women which both are likely to have more disposable income. It is evident by looking at the media that make-up brands like to target women up to early 50s. This could perhaps explain the decline in make-up use amongst 65+. The shift in mind-set will produce an older consumer with a younger mind and purchasing attitudes; who will shop for a wider variety of products, including make-up. One of the biggest challenges will be to successfully position products and services in order to satisfy older consumers “youthful” orientation while providing products associated with the “old”.
In recent years L’Oreal launched a new mass men’s brand “L’Oreal Expert Men”. This has seen significant sales, and is driving strong growth for the company. As there is still plenty of potential within the men’s grooming sector, L’Oreal could build on this success and expand this sector further by...