Beauty and skin care products in the American market represent a huge market where the competition is very strong and dominated by multinational leadership groups.
But we can find niche segments in this market and it's an opportunity for small and medium sized French companies.
Indeed, the population is strongly targeted concerning ethnic criteria and there exists some geographical offering to first enter points.
Consequently it permits for L'Occitane to improve its brand image and its turnover.
L'Occitane, a French company and more particularly ‘Provencal' is present in the American market for 13 years.
The company is growing in this niche market already established by the Britain giant ‘the body chop'.
Moreover, the natural market products have become trendy in the last few years and American consumers are more worried about their health.
This study will permit to assess the weaknesses and the strengths of the brand L'Occitane and the US cosmetic market.
We will examine different point as:
[...] We will examine different point as: - The integration in the market and the potential of the French products by (by analyzing the brand image, the positioning, the French value etc.) - The evaluation of market potential (market size, general evolution trends etc.) The objective of the study is to analyze a foreign (non-French speaking) market in terms of market potential for a French product (or service). The PERS is based on our previous marketing courses, including ‘Organizing and Managing Marketing for the 21st Century'. [...]
[...] Market size The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,000. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. GDP (official exchange rate): $ 14.33 trillion (2008) Population: 307,212,123 (July 2009) Age structure: 0-14 years: (male 31,639,127/female 30,305,704) 15-64 years: 67% (male 102,665,043/female 103,129,321) 65 years and over: (male 16,901,232/female 22,571,696) (2009) Median age: Total: 36.7 years male: 35.4 years female: 38 years (2008) (Source: www.CIA.gov) 2. [...]
[...] Direct channels: The best recommendation is to be more present and follow the actual strategy of the company by using its own means of distribution with opening new shops and being present in more cities in the US. RECOMMENDATIONS Auto assessment Direct channel Indirect channel Grade Grade Supermarkets More ‘L”Occitane en Provence' shops Gallery Lafayette More Internet presence Partnerships Pharmacy 7. Brand and product positioning The Body Shop: This company proposes 21 items in Lip care and 6 items in eye care. [...]
[...] A short range: more profits for the company (product + accessory) better knowledge of the product by the sale representative Economy of scale in terms of production Better management (stock, follow ) - Find new ingredient Indeed, for a short term ‘L'Occitane en Provence' will offer products through a larger channel of distribution. For a long term, the company will have to take care about consumers and keep them by offering them new products that are equal with the technology evolution and the image of the company. [...]
[...] When a company wants to penetrate a new market in a new country, it has to face many difficulties like: Legal administrative and legislatives barriers: The Food and Drug Administration (FDA or USFDA) is an agency of the United States Department of Health and Human Services and is responsible for regulating and supervising the safety of foods, dietary supplements, drugs, cosmetics beverages etc. The cosmetics sector is under its responsibility due to the FD&C Act (Federal Food, Drug and cosmetics Act). [...]
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