L’Oreal: Global Brand, Local Knowledge

L’Oreal used high-level strategies in order to ensure the expansion of market in globally.  First, the company concentrated on local consumers by establishing geocosmetics. It concentrated much on providing quality products as well as services to the local customers by moving on global level and bringing innovation locally (Henderson & Johnson, 2012).  Secondly, the company used the strategy of brand diversity to ensure that all consumers get access to the product from different channels.  It   imposed a brand policy which authorized the sales of products only on designated channels. Third, the company   used the strategy of marketing by expanding its products such as Redken and Kiehl’s in global level.  In 1996, the company introduced a new product known as as Maybelline in the market and the product was a targeted to young consumer (Henderson & Johnson, 2012).  It   applied technology as well expertise in marketing the brands and it enjoyed the results since the product increased the market share in U.S.

The company conducted a   comprehensive research on beauty fashion and established a research institution in Chicago and China.  The aim was to gain an   insight for Chinese structure and behavior   and more important to gain knowledge which could help the regional teams   in product production for local people. Local researchers gained a useful knowledge and designed hair products for Chinese consumers.   The company wanted to increase the GDP in order to integrate in the world. In brand diversity strategy, the company produced a brand called Garnier which was distributed in emerging markets such as Pakistan and India where it opened   a retail infrastructure (Henderson & Johnson, 2012).  The company also produced premium brands such as masstige brand and Lancome with affordable price.  The brands circulated all over the world and increased the total sales.  In marketing operation, the company started brand advertisement and opened headquarters for Maybelline product in New York.  In advertising method, the company defined the Maybelline product as the ‘urban flair’ and the purchasing power of buyers increased in a high rate (Henderson & Johnson, 2012). 

 

In Market Expansion matrix, the company employed some important strategies to ensure that the business operated smoothly in global level.  First, the company used diversification strategy as it entered in the market with a new product.  In this scenario, there was a different kind of a demand and this forced the company to introduce new products in order to meet the demand of all consumers (Henderson & Johnson, 2012).  Secondly, the company employed a strategic method of market penetration.  With this strategy, the company established new products with affordable prices and sold them in the existing markets through advertisement.   For example, the company produced many products and it increased its sales as well as market share (Henderson & Johnson, 2012). Last, the company   used the market development strategy   by giving customers access to new product and developed Masstige products.  The company focused on criteria like sex and social class and for example it produced Genifique which was based on young people.

 

 There are various ways in the company accomplished its slogan which is known as "think global but act local"(Henderson & Johnson, 2012).  Its vision was to cater for all consumers in global level in terms of aging population, ethnic groups and in emerging market.  Therefore, the company used various methods to ensure that all consumers access the product and   ensure they have successfully changed the world as they say that “We are in transition” (Henderson & Johnson, 2012).   The company formed association with celebrities who promoted the production in global level to all genders and ethnicity.  For example, Sarah Jessica was selected to promote the Garnier Nutrisse to young adults. In 2009, Kate Moss was selected to promote Laurent Beaute fragrance and through various spokes models, 23 million products were being sold in annual basis.  In addition, the company sponsored the Cannes Film Festival where it displayed actors with makeup.  Moreover, the company was a major sponsor of fetsival’s dinner where it launched makeup.   The company also ensured there were business operations in global level through working together with film producers.  In addition, its reputation was all over the world   as it was a print media advertiser where it implemented digital advertising   through print, billboards among other methods as it noticed that “beauty is all about imagery (Henderson & Johnson, 2012)”.

 

 If I were the Senior VP of Marketing, I would use the following moving forward initiatives in order to reach “the next billion customers (Henderson & Johnson, 2012)”. First,   I would create strong relationship with economic development agencies. This will act as a source of information based on essentials required in expanding business globally.  In addition, it is a strategic way of creating a market entry and learning more about entry rules, target market and taxes.  Second, I would ensure that before entering in global level, local customers are provided with quality services and they can access the product at any time and in any place locally (Henderson & Johnson, 2012).  I understand that in order to success globally, I must first succeed locally by ensuring that there is a quality customer care so that I can retain them.  The last initiative and it is very important is distributing channels. As a senior manager, I would ensure that the company is bale to fill orders and they can reach on the destination on time.    Thus, I would ensure that there are effective supply- chains which are reliable (Henderson & Johnson, 2012). 

 

 

 

Reference

Henderson M. R & Johnson Ryan (2012). L’Oreal: Global Brand, Local Knowledge