Loreal ideas
- customer centric – develop categories together with comsumer
- assess the competencies vs strategy of the business (action)
- be consecutive in the strategy deployment (pyramid)
Moje pomysly:
Secure the base (because of high share in sales, important for future growth), use as recruitment/education strategy,
Multi- Brand Strategy
L’Oréal uses a multi-brand strategy to cover the mass market in China. The best way to describe their diversified brands is that of a pyramid:
At the base of the pyramid comprise of L’Oréal Paris, Maybelline Garnier, and Mini-Nurse – all products that target the mass market.
Brands such as Vichy, Kerastase, and Matrix make up the middle of this pyramid. These products are sold in pharmacies and hair salons meant for consumers looking for that mid-level quality of products.
The very top of that pyramid is reserved strictly for the high-end products such as Lancome, Biotherm, Shu Uemura, and Kiehl’s. These products are sold in retail outlets, high-end department stores, and specialized boutiques.
Each level of L’Oréal brand pyramid occupies a certain price area, which meets the needs of Chinese consumers from a price sensitivity perspective namely due to the wide income gaps in China.
Now beyond price, L’Oréal products go through different tiers of sales channels including supermarkets, pharmacies, hair salons, department stores, and specialized boutiques. Even L’Oréal brands have their own unique ‘personality’ – L’Oréal Paris is a high-performance technology brand, Maybelline New York is fashion driven, and Garnier is often characterized as a natural brand. Diversity in products, branding, and sales distribution all contribute to L’Oréal’s success in cornering the beauty and cosmetic market in China today.
Local Acquisitions
As in many large corporations, acquisition plays a big role in L’Oréal’s strategy