L'Oreal is a French-based company specialized in the development, manufacture and marketing of cosmetics and dermatological products.
Created in 1907 by Eugene Schueller, the brand has considerably developed itself in a highly competitive market with constant change. L'Oreal has succeeded in establishing itself as a leader on its market.
But the question that we need to ask ourselves is whether L'Oreal can continue as the market leader forever. And what are the different decisions and actions that can be undertaken by the company to maintain its top spot?
In this case, strategic management has an important place as it is " that set of managerial decisions and actions that determines the long-run performance of a corporation " .
To understand how L'Oreal could manage to stay as the leader in its market, we will develop different levels of analysis that will enable us to propose several recommendations to maintain the positioning of the company.
[...] Moreover, they could also give some options about the other competitive brands and ask candidates which sense could be triggered by other brands. Those results could help marketers to know their brand position as well as competitors'. In addition, they could know the overall sensory impression of a brand and follow the result to offer a suitable strategy. On the other hand, the sensory impression of a brand can influence brand loyalty. After measuring those senses through different techniques, market researchers can gather the degree of each sensory perception and know the degree of loyalty customers have (Lindstrom, 2005). [...]
[...] Indeed, the company has chosen a wide compromise between a luxury and a middle range strategy which it actually names “Casual Luxury”. Price, segmentation and positioning are closely related to the “Casual Luxury” image they want to give Concept stores Abercrombie & Fitch At the beginning of the century, Abercrombie & Fitch only sold outdoors clothes which include camping gear, guns and outdoors clothing. But when the brand was relocated to a more easily and accessible midtown address, near Fifth Avenue, the store became a museum divided into 8 floors which provide different amenities: the basement and the mezzanine roomed shooting range, the second floor through fifth floors was reserved to suitable clothing and sports items; on the next level was dedicated to the picture gallery, bookstore and training centers. [...]
[...] Lippincott & Margulies. Sense: The Art and Science of Creating Lasting Brands, Rockport Publishers Inc p. [...]
[...] Or the great vision and sound effect of movie preview let people choose to buy cinema ticket to enjoy it. On the other hand, human beings can use at least five tracks- image, sound, smell, taste, and touch to contain data as these five senses direct involve with people's emotions and all that they entail. In addition, the human being's senses link to memory and can tap right into emotion. As Lindstrom (2005, p11) mentioned that “events, moods, feelings and products in humans' lives are constantly imprinted on their five track sensory recorder from the second we wake to the moment we sleep.” Since distinctive brands pursue differentiated experiences to offer their audiences, they employ sensory channels to deliver their message and evoke people's emotions (Lindstrom, 2005). [...]
[...] Moreover, Lindstrom (2005) mentioned that smell is connected to memory; by contrast, sound is connected to mood. Sound does in fact generate mood. It creates feelings and emotions. There are two types of sound as hearing and listening. Since both hearing and listening are equally important to influence purchasing behavior, brand need to master in both the hearer and listener. Hearing involves getting information through the ears. Listening depends on the ability to selective focus, remember, and respond to sound. [...]
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