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    L'Oreal Nederland B.V. Case: By, Girish Singh

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    girish-singh-3349
    This document discusses L'Oreal Nederland B.V.'s decision of whether to introduce their Synergie skincare line and Belle Couleur permanent hair colorants in the Netherlands. The Netherlands market for L'Oreal was growing but the Garnier brand had little awareness. Introducing the products could boost sales but may also negatively impact existing L'Oreal products if not done correctly. Synergie would enter the growing skin care market but faced challenges from Garnier's unknown brand and lower prices. Belle Couleur was a leader in France but Dutch consumers saw hair colorants as risky and had high brand loyalty. Retailers in the Netherlands also had strong bargaining power.

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    L'Oreal Nederland B.V. Case: By, Girish Singh

    Uploaded by

    girish-singh-3349
    354 views8 pages
    This document discusses L'Oreal Nederland B.V.'s decision of whether to introduce their Synergie skincare line and Belle Couleur permanent hair colorants in the Netherlands. The Netherlands market for L'Oreal was growing but the Garnier brand had little awareness. Introducing the products could boost sales but may also negatively impact existing L'Oreal products if not done correctly. Synergie would enter the growing skin care market but faced challenges from Garnier's unknown brand and lower prices. Belle Couleur was a leader in France but Dutch consumers saw hair colorants as risky and had high brand loyalty. Retailers in the Netherlands also had strong bargaining power.

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    L’Oreal Nederland B

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    This document discusses L'Oreal Nederland B.V.'s decision of whether to introduce their Synergie skincare line and Belle Couleur permanent hair colorants in the Netherlands. The Netherlands market for L'Oreal was growing but the Garnier brand had little awareness. Introducing the products could boost sales but may also negatively impact existing L'Oreal products if not done correctly. Synergie would enter the growing skin care market but faced challenges from Garnier's unknown brand and lower prices. Belle Couleur was a leader in France but Dutch consumers saw hair colorants as risky and had high brand loyalty. Retailers in the Netherlands also had strong bargaining power.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    354 views8 pages

    L'Oreal Nederland B.V. Case: By, Girish Singh

    Uploaded by

    girish-singh-3349
    This document discusses L'Oreal Nederland B.V.'s decision of whether to introduce their Synergie skincare line and Belle Couleur permanent hair colorants in the Netherlands. The Netherlands market for L'Oreal was growing but the Garnier brand had little awareness. Introducing the products could boost sales but may also negatively impact existing L'Oreal products if not done correctly. Synergie would enter the growing skin care market but faced challenges from Garnier's unknown brand and lower prices. Belle Couleur was a leader in France but Dutch consumers saw hair colorants as risky and had high brand loyalty. Retailers in the Netherlands also had strong bargaining power.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    L’Oreal Nederland B.V.

    Case
    By, Girish Singh
    The Context and Problems
    The manager has to decide whether to
    introduce Synergie Skin care line and Belle
    Couleur permanent hair colorants.
    Three decision areas
    ◦ Which product lines to introduce – Synergie,
    Belle or both
    ◦ Marketing programs and promotions for the
    launched products
    ◦ Tactical plans for current products which might
    be affected by the launch of Garnier products
    Background
    Netherlands was a small but growing market
    for L’Oreal
    ◦ Higher disposable income of women
    ◦ Independence
    Littleand no awareness of Garnier brand
    No room for mistakes as a negative image of
    Garnier could hamper future plans.
    Value for money important in Dutch Women
    Per capita spending only 60% of France
    Synergie
    Synergie was a line of facial skin care products with the advertising slogan
    – “Alliance of science and nature to prolong the youth of your skin”
    Skin care – Second largest sector in Dutch toiletries and cosmetics market
    Growth of 12% and dollar growth of 16%
    Major usage of Day cream and Cleansers along with rising usage of
    antiwrinkle and anti aging
    Major retail format was Drugstores in which Chains and Large
    independent drug stores had the major share.
    Competition
    ◦ Lower End (0-12.95) – Ponds
    ◦ Middle – (10.95 – 21.95) – Synergie, Oil of Olaz
    ◦ Upper End (10-43.50) – Ellen Betrix
    Consumer Behaviour
    ◦ Loyal more in older consumer
    ◦ Heavy advertising and sold on brand image. Rule of thumb being share of voice
    was market share
    ◦ Increasing awareness of natural ingredients.
    SWOT
    Strengths
    ◦ Uses natural components – Increasing awareness
    ◦ Positive reaction to the Synergies concept and boards
    ◦ Anti aging a growing segment
    Weakness
    ◦ Garnier brand unknown
    ◦ Lower buy intention after knowing price
    ◦ Cannot customize product to country
    ◦ Same team selling two similar products of two
    brands.
    SWOT
    Opportunities
    ◦ The rule of thumb – Advertising is an effective
    medium
    ◦ L’oreal already a established brand so roll out of
    Garnier would be fast.

    Threats
    ◦ Lowering sales of existing product
    ◦ Negative reaction by consumers for Garnier brands
    ◦ Cannot customize product to country
    ◦ Same team selling two similar products of two brands.
    Belle Couleur
    Line of permanent hair colouring solution. Leader in France. Slogan –
    “Natural Colors, Covers all gray”
    Hair Colour Market
    ◦ Two types – Permanent and Semi-Permanent
    ◦ Permanent – 73%, but Semi Permanent Growing
    ◦ Major Retailers – Chain drugstores(57%) with large and small independent
    drugstores rest.
    ◦ Current Market Leader – Recital by L’Oreal. However declining share to Guhl
    ◦ Guhl – Warmer tones
    Consumer Behaviour
    ◦ Perceived as risky product, very high brand loyalty, low impulse buy
    ◦ Fashion colouring increasing – more and more young women colouring hair
    Market Research
    ◦ Buying intention increase after price revealed.
    ◦ After use negative response was high – Did not cover grays, too dark.
    Distributors and Retailers
    Had high bargaining power. Used

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