L'Oréal was created in 1907. It initially specialized in coloration products, and its activities were progressively spread to the whole hygiene and beauty sector. Now a Global leader on the cosmetic and beauty market, the group is present in all the countries of the world, thanks to its subsidiaries. The group l'Oréal is organized into 4 divisions: The luxury product division, with brands like Lancôme, Biotherm, Giorgio Armani, Ralph Lauren; The professional product division, with brands like L'Oréal Professionnel and Kerastase; The active cosmetic division, with brands like Vichy, la Roche-Posay; and the wide public product division, with Garnier, Maybelline New York and Elsève. Elsève was created in 1971 as a formula for dry and brittle hair. It was only in 1997 that the name Elsève was launched with the well- known catch- phrase: "Because I'm worth it". The objective of l'Oréal is to reach all homes. The strategy of Elsève is to identify targets to create a specific product for each type of consumer. At the international level, in 2000, Elsève represented 10% of the market in Great Britain and 51 million of the intensive treatments sales in Brazil. Elsève is the leader in the French market of shampoos and conditioners, and, thanks to this success, there is a progression of L'Oréal in France (better tursnover and results with an evolution of + 8, 9%).
[...] Playing on this cognitive age could be an opportunity for Elseve; they would follow their policy and appeal to a new niche of customers. This would also work for older people. ♦ Elsève could also try to diversify the new products of their already existing range when creating new products and involve more natural elements such as plants oils or essences. D - Packaging: ♦ Play on the colours and decline the products in a range of blue, brown and grey bottles. [...]
[...] Elsève is the leader in the French market of shampoos and conditioners in France, and, thanks to this success, there is a progression of L'Oréal in France (better turnover and results with an evolution of + Besides, the brand is increasing faster than the market. B. Elsève's Marketing Strategy: ( Product: New products are the heart of Elsève's growth strategy. Indeed, innovation, quality of new the formulation and the way new products are brought to the market are crucial points in order to achieve market shares. [...]
[...] The objectives are to play on the affect and on the action. Elsève has to preserve its brand image and to make consumers buy its products. The means are: -The media: The female and male press such as Cosmopolitan, Marie-Claire . The television The bill sticking Internet (newsletters, banners . ) -The out media: The sponsoring: Elsève is Maud Fontenoy's partner for her trip around the world. Recommendations I - Problem to be addressed As we have previously seen, Elseve's products lifecycle has reached maturity. [...]
[...] In 2005, the L'Oreal's company sold 172 millions of units of shampoos, representing a total amount of 492 millions of euros, and 45 millions of units of conditioners, representing an amount of 166,8 millions of euros. The cost of sales increased of 2,6%. The production is in ad equation with the sales, so that in 2005, their turnover has increased of (thanks to an increase of the margins from 69,8% to 71,5%). The penetration rates in 2005 were quite important too: Elsève had 28,2% of the shampoo market of the conditioner market and of the intensive treatment market. E. [...]
[...] As a consequence, understanding customers' behaviours helps to choose a positioning and then the values a brand needs to convey. That phenomenon is enlarged in the cosmetics sector. In fact, firms who sell such products sell dream and beauty. The image is a key factor in order to become successful. L'Oreal understood it very well, and applies a stronger control on the image of each one of its brands. In facts, we can observe that Elseve's brand image is close to L'Oreal's one. [...]
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