LOreal Nederland B. Sixth is v (2adc8f9)

Poor brand image

L’ Oreal Group will probably be faced with typically the challenge in the guide of two things in Netherlands. Typically the particular two goods consist of Superbe Couleur plus Synergie. L’Oreal Team revenue are actually with a great upward pattern credited to the huge scale marketplace regarding cosmetic items. Inside France, the home-based market, the certain firm has seen a ten. 2% development in revenue which usually is usually equal to eight. 67 billion Pounds (Mann 2010, 6).


We will write a new custom essay trial on L’Oreal Nederland B. V especially for you for jus $16. 05 $11/page

Learn More

In their quest to obtain its profit optimization objective, the firm’s management team provides made a conclusion to be able to venture the Dutch market. Introduction associated with the new item was to be carried out by simply Laboratories Garnier which often was the main competitor.

Despite Laboratories Garnier becoming recognized within Italy prior in order to the acquisition, really couple of Dutch customers understood through the firm’s products. This arises via the fact that will will Laboratories Garnier had not established the strong brand picture in Netherlands. The particular low brand picture in the marketplace limits the possibility of the 2 products succeeding.

In its choice to expand the operations within Netherlands, L’Oreal Group administration team should carry out a comprehensive assessment from the two items to be able to determine the particular probability of achievement.

The administration team should carry out this by just introducing products along with identifiable differential benefit on the market. L’Oreal Team management team will be confronted with a problem on how in order to make sure that the item penetrate the marketplace.

Key issue

The key issue dealing with the firm will be lack of consciousness of Garnier’s items by which the company intends to expose usana products. In inclusion, the two tools are facing stiff competitors from other founded competitors. The company is faced along with a challenge associated with attracting customers to buy the new item.

This occurs from the truth that clients in the Nederlander market feel attached with their traditional manufacturers which makes all of them reluctant to attempt new beauty products. Competitors within the specific Dutch skincare market place have a well-researched customer loyalty. The specific loyalty resulted from the effective distribution method adopted.


Looking for post on business plus economics? Let’s figure out we can aid you! Obtain the first paper with 15% OFF

Learn More

Personalized assistance is one linked to the ways via which firms within the beauty industry can make customer loyalty. Additionally, some of the particular players in the market are usually multinational and local companies that are widely recognized in the market.

In comparison to these firms, L’Oreal Group has a relatively low competitive advantage. According to Jones (2010, 359), the beauty business is extremely competitive because a result associated with benefit rate associated with innovation resulting through increased r and d. Absence of an efficient market penetration and promotion strategy poses a threat in the introduction of the two products.


If the firm does not formulate a highly effective market transmission technique for its items, there is the high probability that will the firm will certainly perform poorly within terms of product sales. The resultant impact is the fact that its lengthy term survival will certainly be threatened. The particular Dutch market will be simple for the company to introduce the products. Among the important factors that are improving the market feasibility is the market characteristics of the particular population.

Aging is one associated with the factors which usually have contributed in order to an increment within the rate associated with consumption for age reversing products (Patzer 06\, 47). A substantial percentage of Dutch ladies are aging.

There are projections that this trend will continue into the future. By 2020, it is estimated that the number of individuals aged 65 years and above of the total population will increase to 18% through its 2010 output level of fourteen. 9% (Schroots, Ballesteros and Rudinger1999, 83).

Introduction associated with Synergie and Superbe Couleur beauty items stands a big probability of achievement due to the particular fact they generally are anti-aging pores and skin in addition in order to hair products. This particular specific implies that usually the two equipment are inside line with typically the customer requirement. Inside addition, successful launch of the a couple of products in typically the Dutch marketplace is very important considering the move in role numerous female gender.

Females are going in several careers major into an increase in their throw-away income. Increase inside consumers’ disposable revenue results into a great increment in buyer purchasing power (Lamb, Hair and McDaniel 2008, 365). Credited to an up shift inside their throw-away income, the Nederlander women have elevated their daily intake for beauty items.


We may write a custom made essay sample about L’Oreal Nederland M. V specifically regarding you for simply $16. 05 $11/page

Learn More

This symbolizes a significant move in consumers acquiring behavior considering typically the fact that typically the Dutch women accustomed to purchase beauty products for example facial ointments 2 times a yr on average. Although the market feasibility for L’ Oreal Group in Holland is high, that is vital for your firm’s management staff to consider typically the most effective approach of introducing typically the two products inside the market in addition to also create industry awareness effectively.

Possible considerations

Promotion plays a significant function in the functioning of a organization (Botha, Strydom in addition to Brink 2005, 135). Because of this, promotion method have been integrated since one of typically the key components regarding strategic marketing by simply firms in several economical sectors inside their pursuit to attain their particular profit maximization aim.

Through an extremely formulated promotional approach, a firm is usually usually able to generate awareness of their products and providers to its possible customers. Considering typically the reluctant nature regarding Dutch women to be able to try new attractiveness products, developing a powerful promotional strategy is usually paramount.

This arises from typically the fact that elevated awareness of typically the products characteristics in addition to benefits may play a new significant role inside creating customer assurance. There is a new high probability regarding the products doing well amongst the Nederlander women considering typically the increment sought after for beauty products which have got “natural” characteristics.

Considering the point that Labs Garnier has no properly developed brand graphic in Netherlands, it is crucial for L’Oreal Party to consider establishing a promotional method will enhance their product awareness. Based to Strydom in addition to Brink (2005, 135), product awareness is vital in the customers’ making decisions process (Mills and Law june 2006, 29).

Product and service recognition plays a considerable role inside the buyers purchasing pattern. Typically the more the individuals are aware of a new product, benefit typically the probability of those generating a purchase.

With regard to be able to be able to be able to beauty items inside Holland, their accomplishment accessible in the industry is immediately associated to their business image. Consequently , any time the rand name graphic is lower, right now presently there is a big probability that usually the product is not really going to excel. The fact associated with which most Dutch females aren’t conversant along with the particular product explanation associated with French elegance items underscores the significance of creating item consciousness.


Looking for article upon business and economics? Let’s observe in case all of us are able in order to help a person! Get your 1st paper with 15% OFF

Learn More

Apart through development of the product awareness technique, it is furthermore essential for the firm’s management team in order to consider improving client product loyalty. Client loyalty will play the significant role within ensuring repeat buy behavior of the particular customers.

To create customer devotion, it is essential for the particular firm’s management group to ensure that will the study and advancement being undertaken outcomes into development associated with beauty products which usually meet the marketplace demand.

Increment within the intensity associated with competitiveness inside the store environment presents the challenge to companies (Ranchhord and Maradi 2007, 77). This particular arises from the particular fact that competitors leads in to a reduction within customer switching price (Egan and Jones 1998, 68).

Ranchhord and Maradi are associated along with the opinion which will customer loyalty would have been a fundamental a substantial this type of situation. Considering about the competing character from the beauty business in Netherlands because of to existence associated with other multinational businesses such as Procter and Gamble Organization, creation of client loyalty is essential within the firm’s work to put itself efficiently on the market.

The resultant effect will be that the company will be competent to develop the particular high competitive advantage for it to be able to survive in the particular particular market.


A amount of options can be thought in order to address the essential issue: That L’Oreal Group faces the particular challenge in showing its two classiness products (Synergie in addition Belle Colourie) because of poor brand image of Garnier.

Considering the marketplace feasibility in Holland elegance industry, L’Oreal Team should make sure that does it capitalizes upon the marketplace possibilities presented plus expose both items. Within order in order to efficiently penetrate the particular marketplace, the firm’s administration team ought to think about the particular following alternatives.

  1. The company should not expose the two items via Laboratories Garnier considering its lower brand image within Netherlands.
  2. Alternatively, L’Oreal Group’s administration team should think about outsourcing confer with nicely established marketing companies in Netherlands. This can increase the possibility from the customers taking the item.


Undertaking item introduction process simply by itself is a wise decision for the firm to consider in is effort to penetrate the new market niche. This is due to the fact that the firm will develop an upper-edge in understanding the market dynamics. On the other hand, distributing the products via intermediaries will also be of benefit to the firm. This is due to the fact that the local agents will be conversant with the market.

A comprehensive qualifying criterion should be utilized in selecting the particular intermediary to hold the firm’s product within the foreign marketplace. According to Perner (2008, 3) choice of the company to carry the firms product within the introduction phase is generally a key determinant inside the product’s success and even failure. Perner statements that if the particular item is just not amongst the firm’s preferred products, likelihood associated with the specific product being successful are often limited.


To make sure that will intro of the specific two products is going to be successful; L’Oreal Group’s management team ought to think about the number related to problems.

The firm should think about integrating the concept associated with Integrated Marketing Conversation (IMC) in a good effort to produce sustainable market consciousness. Integrated marketing communication will ensure that there is effective and efficient creation of market awareness. This specific arises from typically the fact that the two traditional and rising market communication designs are integrated (Kitchen and Pelsmacker 2005, 45).

As a result, a new considerable number regarding personal customers can be mindful about typically typically the product’s market dwelling. Incorporation of IMC will make sure absolutely free of charge themes access enough merchandise information. Thinking of typically the undeniable fact that the merchandise could be ingested by simply both most of the youthful and older buyers, integration regarding IMC will end upwards being effective inside guaranteeing that totally free themes availability the product particulars.

Sufficient items information will allow the firm to be able to be able to be able to dispel any worries which the buyers could have relating to many. The ensuing effect is the fact that proper now there may be increase inside of the customers’ period of confidence to be able to enable them integrate the new product in the process of making decisions regarding consumption of beauty products.

In order to develop a repeat purchase behavior between the customers, L’Oreal Group management staff should consider employing Customer Relationship Supervision (CRM) in their operation.

This will ensure of which that all their operations are centered at ensuring of which the customers obtain a high stage of satisfaction. Typically the effect is of which the firm may be able to be able to attain customer masse. This means of which the probability regarding customers switching to be able to other products will probably be minimized.

To ensure maximization in the benefits associated together with the CRM method, L’Oreal Group supervision team must look into using the Crm application. Typically the software should end up being from the internet thus as to permit it access customers’ feedback efficiently.

CRM software may act as a new link involving the consumers and the firm’s marketing team. Because of this there is a new high probability regarding marketing team comprehending changes in consumer product requirement. Dependent on market suggestions, it will end up being possible for your organization to conduct merchandise innovations effectively to be able to suite the customer’s requirements.

Reference List

Botha, Johan, Strydom, Johan in addition to Brink, Annekie. june 2006. Introduction to marketing. Chicago: Juta in addition to Company Limited.

Egan, Colin in addition to Thomas, Michael. 98. The CIM guide of strategic marketing. New Jersey: Butterworth Heinemann.

Jones, Geoffrey. 2010. Beauty imagined: A historical past in the global attractiveness industry. Oxford: Oxford University Press.

Kitchen, Paul. in addition to Pelsmacker, Peter. 2004. Integrated marketing communication: a primer. London: Routledge.

Lamb, Charles, Curly hair, Jones. and McDaniel, Collins. 2008. Essentials of marketing. Ny: Cengage Learning.

Mann, Rebecca. the year of 2010. The L’Oreal Party reports solid first-half sales. https://www.moodiedavittreport.com/the-loreal-group-reports-solid-first-half-sales/.

Mills, Juline in addition to Law, Rob. june 2006. Handbook of buyer behavior: tourism plus the internet. London: Routledge.

Patzer, Gordon. 2006. The strength and paradox regarding physical attractiveness. London, uk: Universal-Publishers.

Perners, Lars. 2010. Introduction to marketing. Los Angeles: University or college of South Los angeles.

Ranchod, Ashk and Marandi, Ebi. 2007. CIM coursebook 07/08 strategic marketing and advertising in practice. Fresh Jersey: Butterworth-Heinemann.

Schroots, James, Ballesteros, Francis and Rudinger, Gerrad. 1999. Aging in Europe. Oxford: IOS Press.