University of San Carlos School of Business and Economics Masters in Business Administration

CASE ANALYSIS LOreal and the lo!ali"ation of American Beauty

MBA 2308 Marketing Management

Su!mitted to# DrMaritesKhanser

Su!mitted !y# Jose Reymond Aguilar Emmanuel Armodia Jofred enBermoy !oude"i# $astrana

Date August 2%& 20'3

$OIN% O& 'IE(

As Marketing (tudents& )e for see !*+real as an international ,rand that #ould #on-uer the )orld of #osmeti#s and ,eauty.

S%A%EMEN% O& %)E $*OBLEM

/o) to a#hie"e high le"el of glo,al distri,ution& a genuinely 0o0ular ,rand& and international 0resen#e?

S%A%EMEN% O& OB+EC%I'ES

1he #hallenge at !*+real )as to le"erage its 0osition and inno"ation #a0a,ilities to transfer the 0rodu#t line to the 2nited (tates market and a#hie"e ,oth ,ottom and to0 line gro)th. 1he o,3e#ti"e of this #ase study is to 0ro"ide a marketing 0lan 0ro0osal for !4+real line in the 2( market in order5 '. 1o im0ro"e the to06line a##elerate the sales gro)th and strengthen market 0osition of its 0rodu#ts "s. #om0etitors. 2. 1o get the ,ottom6line mo"ing in the right dire#tion -ui#kly turn ,efore ta7 figures into 0ositi"e. 3. 1o make 2( ,usiness a ma3or #ontri,utor to !4+real4s ,rand 0osition glo,ally. 8. 1o ensure 0erfe#t fit of !4+real skin #are line6u0 )ith the needs of 2( #onsumers )hile maintaining the de"elo0ment through !4+real4s te#hnology 0ortfolio. 9. 1o de"elo0 the negotiation 0o)er of !4+real in mass outlets. :. 1o #ontinue 0romoting a)areness and in#rease high #ustomer e70erien#e for sustaina,le de"elo0ment. ;. 1o in#rease& de"elo0 and #reate more 0rodu#t offerings and 0rodu#t a"aila,ility in all ages. 8. 1o analy es the ,usiness and marketing strategies ado0ted ,y the #om0any& to gain a #om0etiti"e edge in the industry. %. 1o e"aluate the distri,ution #hannel and ho) !4+real ha"e segmented the market in different dire#tions.

'0. 1o e7amine the signifi#ant de"elo0ments and milestone that has taken 0la#e in the #om0any.

A*EAS O& CONSI,E*A%ION

-. Situation !4+r<al is the )orld4s glo,al ,rand leader for #osmeti#s& lu7ury 0rodu#ts& and skin #are treatments& distri,uting in '30 #ountries on fi"e #ontinents. =ith '8 glo,al ,rands in#luding Ral0h !auren& !an#>me& and ?arnier& and @'8&933 million A2.(. B';&98% millionC #onsolidated sales& !4+r<al is #onstantly inno"ating to maintain its market share. More than 9' 0er #ent of !4+r<al4s #ustomers are in Euro0e& )ith 3: 0er #ent in Dorth Ameri#a& and signifi#ant ,usiness in Asia in#luding emerging markets su#h as (outh Korea. !4+r<al )anted to sustain its high 0erforman#e in the ,eauty industry ,y shar0ening its kno)ledge of its #ustomers through a #om0any6)ide #ustomer relationshi0 management AERMC #a0a,ility. 1he $aris6,ased #om0any de#ided to fo#us on its lu7ury 0rodu#t di"ision& )hi#h& thanks to loyalty 0rogrammes& had an ideal #ustomer foundation and the greatest 0otential to enhan#e its marketing #am0aigns. /. Brands Brands are generally #ategori ed ,y their targeted markets& su#h as the mass& 0rofessional& lu7ury& and a#ti"e #osmeti#s markets. 1he to0 29 ,rands of !4+real are as follo)s5 '. !+REA! $R+FE((G+DE! $ARG(. 2. KERA(1A(E $ARG(. 3. MA1RGH.

8. REDKED 91/ AIED2E D J E. 9. MGKADG. :. !+REA! $ARG(.

;. ?ARDGER. 8. MAJBE!!GDE DE= J+RK. %. (+F1(/EED.EAR(+D. '0. !ADE+ME $ARG(. ''. BG+1/ERM. '2. /R A/E!EDA R2BGD(1EGDC '3. ?G+R?G+ ARMADG $ARF2M(. '8. DGE(E!. '9. RA!$/ !A2RED. ':. EAE/ARE!. ';. KGE/!4( A(GDEE '89'C '8. (/2 2EM2RA. '%. IGK1+RLR+!F. 20. IGE/J A!AB+RA1+ G RE(C 2'. !A R+E/E6$+(AJA!AB+RA1+GRE $/ARMAEE21GM2EC 22. GDDE+I AD21RGE+(ME1GE(C 23. (KGD EE21GEA!(. 28. (AD+F!+RE A!AB+RA1+GRE RGEC 29. 1/E B+DJ (/+$ 0. Su11lier *elations !4+real is #ommitted to ,uilding long6term 0artnershi0s )ith su00liers& ,ased on mutual res0e#t& trans0aren#y and sharing of information& strong #ommuni#ation and high standards. 1he 80 fa#tories and :9 )arehouses of the #om0any manufa#ture and

distri,ute 0rodu#ts around the )orld and are at the #enter of a #om0le7 su00ly #hain. 1his in#ludes 0a#kaging& ingredients& industrial e-ui0ment& 0romotional items and indire#t 0ur#hasing. 1hey manufa#ture the "ast ma3ority of their o)n 0rodu#ts& )ith only :N ,eing made ,y other #om0anies.

2. Mar3et Analysis Dature of the 0rodu#t !4+real originally 0ro"ided ad"an#ed hair #are 0rodu#ts for #ustomers of Fren#h hairdressers. 2nder the guidan#e and #ontrol of (#hueller*s family the #om0any had e"ol"ed to 0ro"ide #osmeti#& skin and hair #are 0rodu#ts. =ithin the #onte7t of !*+real& $lenitude e7isted to target #onsumers of skin#are 0rodu#ts "ia the mass market retail #hannels. 1he industry stru#ture L #om0etition 1he market in 2( is dominated ,y +il of +lay and $onds. As 0er '%%9 data +lay has 28.2 and ;.% 0.# market share in Moisturi ers and Eleansers res0e#ti"ely )hile $onds has '9.' and ''.2 in the same #ategory. 4. ,istri!ution Analysis Dire#t sales "s. distri,utor 1he #om0any #olla,orated )ith #hannel 0artners for the 0rodu#ts distri,ution a#ross markets. Relationshi0s )ere made )ith retail 0artners that ranged from high6#lass de0artment stores Ae.g. !es ?aleries !afayetteC to small ,outi-ue hair and ,eauty salons )hi#h it*s Redken& $rofessionelle and (alon Elassi#s ranges targeted. Gn the 2.(. this e7tended to o0erators su#h as K6mart and =al6Mart

Eustomer Buying Beha"ior $lenitude ,y !4+real )as introdu#ed to the 2( market in '%88. Eight

years sin#e its introdu#tion& it has -ui#kly ,e#ome the O2 ,rand in the market only to lose it later to $ond4s. $lenitude also hit a four6year sales 0lateau and )as still not making any money in the 2( market.

!4+real4s 0ro,lems and root #auses should first ,e identified and addressed. 1he root #auses of !4+real4s 0ro,lems are5 '. =rong assum0tions of the target market 2. A00lying a market strategy ,ased on the those assum0tions 3. Eontinuing to do so for an e7tended 0eriod e"en gi"en the results )ere not en#ouraging 5. $ricin6 Analysis A '%%9 market study )hi#h identifies fi"e ,enefit segments indi#ates that the P2n#on#ernedP& P$ri#e Eons#ious (o#ialisersP and PAge Fo#usedP grou0s are all #on#erned and influen#ed ,y 0ri#e. At 0resent 0ri#e a#ross the range is #onsidered on higher side. Dee0 dis#ounts )ould ,e re-uired to ,ring the !4+r<al #leansers in line )ith #om0etiti"e #leanser 0rodu#ts& as leading ,rand Do7ema sold to the trade for B2.:8 for a '0 oun#e 3ar. !4+r<al4s ne) daily moisturi ers for '%%9 )ere 0ri#ed at B9.89 to the trade at introdu#tion& ,ut had ,een #ut to B8.88 on Fe,ruary '& '%%: gi"en the dominan#e and 0ri#ing of +il of +lay. Ialue of the 0rodu#t 1he Fren#h su##ess sa) the rise of a *star* strategy )hi#h in"ol"ed in"esting hea"ily in ad"ertising and 0romotion of 0rodu#ts su#h as ,asi# moisturi ers )hi#h #ontained Qa#tion li0osimesR. /o)e"er& the 0ri#ing for su#h offerings )as 0la#ed at a signifi#ant 0remium and finan#ed RLD efforts to

maintain inno"ati"e 0rodu#ts )hi#h )ould ,e#ome the future stars of !*+real*s 0rodu#t 0ortfolio. Margin Analysis At the 0rodu#t range le"el& !4+real ,rand offers the fourth highest margin to retailers amongst the to0 9 #om0etitor ,rands in skin#are )ith its #leanser range redu#ing the a"erage margin signifi#antly. /o)e"er& the 0rodu#t range of +lay #ommands the highest market share in the industry yet 0ro"ides the least amount of margin for retailers& )hi#h suggests that a 0ossi,le strategy for !*+real is to de#rease 0ri#es of its *Daily Moisturi ing* range to in#rease share against +lay )hi#h )ould #om0lement the #om0any*s goal of to06line gro)th. Furthermore& the a"erage retail margin for *Daily Moisturi ers* is 98&2N )hi#h suggests that !*+real are in a healthy 0osition to offer "alue 0ri#ing to #ustomers and thus gaining market share against +lay and Do7 ema in their res0e#ti"e segments. 7. $erce1tion of American $eo1le 1he huge su##ess of !*+real in Fren#h as the 0remium skin 0rodu#t )ith P#lass to massP strategy )as the 0rimary reason for !*+real to e70and the 0rodu#t to 2( market. 1he #om0any started to enter the 2( market skin #are in '%8% through mass #hannel ,y introdu#ing the entire 0rodu#t line A'8 (K2*sC that had ,een de"elo0ed in Fran#e& instead of laun#hing the 0rodu#t one ,y one. 1he model of an Qe7e#uti"e )omanR had mass a00eal thus )as su##essful in Fran#e. /o)e"er& as #learly sho)n later on in the market studies done in '%%9& the market segments that attra#ted !4+real the most of it )as the Qstressed outR and Qage fo#usedR segments )hi#h only made u0 80N of the market. Also& the a##e0torSre3e#tor studies indi#ated that #onsumers 0er#ei"ed that !4+real )as s0e#ifi#ally targeting older )omen and 0eo0le "ie)ed !4+real as a high6end& a ste06u0& more e70ensi"e and only for older )omen.

AL%E*NA%I'E COU*SE O& AC%ION 1he follo)ing are the alternati"e #ourse of a#tion for !4+real
-. ,irect Sales

/. Ac8uire Com1anies that &it L9Oreal9s Culture: ,istri!ution: and Mission 0. &ranchise O;nershi1

,ISCUSSION ON %)E AL%E*NA%I'E COU*SE O& AC%ION

1. Direct Sales $ri#ing is a ,ig 0ro,lem ,ased on ho) markets flu#tuate& ho) an e#onomy does& and ho) mu#h of a lu7ury item is 0ur#hased or not A!*+real 0rodu#ts& e"en on the lo) end& are #onsidered lu7ury for many #onsumersC. !*+real*s ,udget for ad"ertising is massi"e. E"en though they are trying to go more digital and 0ro"ide an en"ironment of )ord6of6mouth& this area needs to ,e de"elo0ed more& as this )ould hel0 not only gro) their ,usiness& ,ut for less ad"ertising dollars. A"on has done an in#redi,le 3o, and !*+real #ould #reate a di"ision hy,rid of this. $roducts<Mar3ets +ffer 0rodu#ts that #ould ,e manufa#tured in the regionS#ountry& in those #ultures )here dire#t selling is a 0art of the #ulture Ae.g.& Bra ilC& and gro) one area at a time. Mode of Entry (tart )ith Dire#t (elling. !earn from other #om0anies& like A"on and Eo#a6Eola. A"on has done great in Bra il and Eo#a Eola did some ama ing things in Gndia. A"on utili ed the Bra ilian #ulture and Eo#a Eola sa) a marketing o00ortunity to rea#h the rural areas they #ould not rea#h other)ise 6 Eo#a Eola set hel0ed )omen to o)n their o)n Eo#a Eola ,usiness to sell Eo#a6Eola to the distant areas in Gndia outside of their distri,ution a,ilities ,ringing great su##ess. $rice and ,istri!ution Strate6ies 1he 0rodu#t needs to ,e 0ri#ed at a range )here the masses #an a##ess !*+real )ithout 3eo0ardi ing -uality and 0rofit margin. Also& the 0rodu#t needs to

,e a,le to ,e manufa#tured in the #ountry market ,eing de"elo0ed for this ne) strategy. $roduct<Mar3etin6 Communication Strate6y Eontinue )ith !*+real*s marketing and #ommuni#ation strategy of !u7ury and Muality and Gmage at a 0ri#e that e"eryone #an afford. Advanta6e !*+real )ill in#rease more market share& in#reased #onsumers& and some of the 0o0ulations in these #ountries that they )ould not ha"e rea#hed any other )ay.

,isadvanta6es Might hinder the image of !*+real*s !u7ury Gmage if not #ondu#ted right as )ell as )hat !*+real*s EE+ has said a,out Dire#t (elling in Bra il Athe market )ill #hange the )ay 0eo0le ,uyC. 1here is not as mu#h -uality #ontrol and training in ho) 0rodu#ts are used )ith Dire#t (elling Re0resentati"es as )ith /air and Eosmeti#s $rofessionals. 2. Acquire Companies that Fit L'Oreal's Culture, Distribution, and Mission $roducts<Mar3ets 1hrough a#-uisitions of #om0anies ,y !*+real& ensure that any 0rodu#ts these #om0anies 0ro"ide fit )ithin the guidelines& high standards& and regulatory #om0lian#e. Also& ensure that the 0rodu#ts of these a#-uired #om0anies are in6 demand or ha"e the 0otential of #onsumer demand )ithin the 0ortfolio of !*+real. Mode of Entry

$ur#hase only those #om0anies that fit the 0rodu#t& market& regulatory& and mission guidelines of !*+real. After the #ountrySregion has ,een analysed& ensure that the #om0any ,eing analysed is sound and meets these !*+real guidelines.

$rice and ,istri!ution Strate6ies 1he 0ri#e and distri,ution of the #om0any ,eing analysed )ould ,e thoroughly re"ie)ed as to the "ia,ility& soundness& and #onsumer feed,a#k realities of the 0rodu#t& the ,rand& future gro)th& ho) the lo#al e#onomy effe#ts the ,uying de#ision of the 0rodu#t& and )hether the 0rodu#t 0ri#e is lo)& medium& or high 0ri#ed "alued. As far as distri,ution strategies& if the a#-uisition analysis is #ondu#ted #orre#tly& the distri,ution of the 0rodu#t )ill )ork )ell.

!*+real likes to ,e self6sustaining so they )ill need to ensure one of t)o things5 A'C Does the #om0any they are re"ie)ing manufa#ture their o)n 0rodu#tT or A2C Does the #om0any o)n the 0ro0rietary rights& 0atents& and formula for the 0rodu#t so that !*+real #an manufa#ture in their o)n fa#ilities and distri,uteU

$roduct<Mar3etin6 Communication Strate6y 20on su##essful a#-uisition of the #om0any !*+real has 0ur#hased& ensure 0ro0er 0ress release& ne)s& and strength of the #om0any ,e#oming a 0art of the glo,al !*+real !o#al Family. Ereate ne)s that sho)s ho) !*+real #reates 3o,s& 0ro"ides 0lants& RLD& and lo#al o00ortunities to the lo#al area& )ith a sho) of all their o0erations in ea#h s0e#ifi# market and ho) they )ill do the same. Gn other )ords& guide #urrent #onsumers and 0ros0e#ti"e #onsumers into the understanding that !*+real is not this huge #om0any that only )ill take 3o,s& #ares only a,out 0rofits& and so forth. Advanta6e

!*+real )ill ,e a,le to ,ring on ne) 0rodu#ts& enter ne) markets& and gro) into areas they may not ha"e ,een a,le to a##ess ,efore.

,isadvanta6es Gf !*+real does not take their time and #ondu#t a #om0lete analysis of the #om0anies they endea"or to a#-uire& this )ould end in !*+real a#-uiring more 0ro,lems and #ould harm their ,rand. . Franchise O;nershi1 Mode of Entry 1est the Fran#hise +)nershi0 model )here fran#hising is in demand Ae.g.& 2.(.C. (et u0 all of the legal do#uments& stru#ture& and #reate a di"ision 3ust for this that )ill 0rote#t the !*+real ,rand during the test 0hase of this marketing strategy. Resear#h the areas and find three malls that are u0s#ale in lo#ations )here #osmeti#s are in great demand and )ould not #om0ete )ith !*+real*s other marketing #hannels of their 0rodu#ts. $roducts<Mar3ets $ro"ide 0rodu#ts that meet the masses& from lo) to high end& )ith stores that are lo#ated in u0s#ale malls $rice and ,istri!ution Strate6ies 2tili e #urrent 0ri#ing and distri,ution strategies for the three sele#ted Fran#hise +)ners. +n#e the model 0ro"es itself& the infrastru#ture for distri,ution and 0ri#ing methodologies #an ,e #ustomi ed and #hanged in a##ordan#e to the Fran#hise Model results. $roduct<Mar3etin6 Communication Strate6y Gn the initial 0hase of this di"ision& one 0erson )ill o"ersee the 0ro#ess that understands #osmeti#s& kno)s fran#hising& takes o)nershi0 of this ne) 0rogram& and #an #ommuni#ate )ith management a,out )hat is )orking and )hat is not.

Marketing )ill take 0la#e to re#ruit the three Fran#hise +)ners and through ad"ertising dollars that the Fran#hise +)ners ha"e agreed to& !*+real )ill ,ring #ommunity a)areness to the ne) stores in these three u0s#ale mall lo#ations.

Advanta6e Most of the #ost )ill ,e the res0onsi,ility of ea#h Fran#hise +)ner. Gf the model )orks& more and more Fran#hise +)ners )ill ha"e the o00ortunity to o0en stores that they o)n& re0resenting !*+real& )hile #arrying most of the #osts. !*+real )ill not ha"e to s0end as mu#h money o"er the long6term for the ad"ertising& 0romotion& and sales of 0rodu#ts. 1here is a lot more #ontrol )ith -uality #ontrol& training& re-uirements& and goals than any other sales models. ,isadvanta6es Gf !*+real does not 0osition the stores and markets in the right 0la#e to ,egin )ith A,y doing their due diligen#eC& the model )ill not )ork as )ell )hi#h #ould hurt !*+real*s image. !*+real )ill lose some of their #ontrol& as they )ill allo) the Fran#hise +)ner to take some of the #ontrol in o)ning their ,usiness )ith.

S(O% Analysis
Stren6ths A,ility to #reate 0ro0rietary 0rodu#ts 0atented and o)ned ,y !*+real A#utting edgeCT Ad"ertising BudgetT Brand De"elo0ment from !o) to /igh End MarketsT Eommuni#ation $ra#ti#es that Build 1rustT Eontinued E70ansion in De) Markets A(outh East Asia& Ehina& and GndiaCT Di"ersity Dri"er A(trengthen !*+real4s $erforman#eCT Ethi#s and 1rust for Finan#ial /ealthT Formula and $a#kaging Rene)al for Eertain $rodu#tsT ?lo,al S Gnternational Brands A1hree Business (egments5 Fragran#es& Make6u0& and (kin#are. (ele#ti"e distri,ution& through De0artment (tores& $erfumeries& 1ra"el Retail +utlets& Free6(tanding (tores& and E6#ommer#eCT

?lo,al ?ro)th and (ales )ith $rofita,ility A(trengthening their Eore $rodu#tsCT /airdresser $artnershi0 De"elo0ment and Enhan#ement AEontinuation of Eurrent Relationshi0s and (trengthening of De) $artner*s& like (alon)orld in Fran#eCT Gn#reased and Gntera#ti"e 1raining AEosmeti# and /air Eare $rofessionalsCT Gnternet and Digital =orld A!*+real has Gm0lemented (u##essful $ra#ti#es through =e,sites& 1)itter& (o#ial Det)orks& Fa#e,ook& and the Eom,ination of their Entire (o#ial Media $lanCT G(+ Eertified !o#ationsT !eader in (e"eral Market (egmentsT !o#al (u00lier De"elo0ment A!*+real Gnitiated a !o#al E#o(ystem S Elose to Eonsumer Deeds for Ea#h MarketC S !*+real*s ?rou0 Di"isions 0ro"ides an e70ert 0latform in ea#h distri,ution #hannel A0ro"ides the needs to ea#h #onsumer as it relates to their lifestyle& ,eha"ior& lo#al market& and 0ur#hasing 0o)erCT Market !eader A#ontinues to strengthenCT Marketing& Eultural& and (o#ial A,ilitiesT Mature Market (trengthened due to Gnno"ati"e Retailer $artnershi0s A?ermany& 2nited (tates& and Fran#eCT De) Markets AEmerging Markets (outh East Asia& Ehina& Gndia& Russia& and !atin Ameri#aC De) Market Gndustrial Fa#ilities ABe Elose to Eonsumer Deeds and the ?ro)th of Ea#h MarketCT Do More Elini#al 1rials $otentially A!*+real $redi#tion E"aluationCT +fferings to all )omen and men ,eauty o00ortunity in all markets Aemerging& de"elo0ed& ni#he& and so forthCT +0en Resear#h De"elo0ment A!*+real is +0en to !o#al (#ientifi# E70ertiseCT $rofita,le gro)th )ith sustaina,ilityT Resear#h AEreati"ity and Gnno"ation S Rated '00 Most Gnno"ati"e Eom0anies in 20'' ,y Reuter*sCT (u##essful A#-uisition Methodologies and $ro#esses of Eom0aniesT (u00ly Ehain S Distri,ution ?lo,al and !o#al A,ilityT (ustaina,le and En"ironmental $ra#ti#es AMonitor En"ironmental 1argetsCT 1horough Kno)ledge of !atest 1rends and EustomersT and 1rust Relationshi0 for the Administration& Eontrolling& and Finan#e 1eams A0artners5 ,ankers& su00liers& #ustomers& market authorities& shareholders& and ratingC.

(ea3nesses A##ounta,ility of Di"isions ,e#ause !*+real is !argeT Eontrol Diffi#ultyT De#entrali ed organi ational (tru#ture AMany (u, Di"isionsCT Ethi#al Ad"ertising Gssues Ause of ,eautiful )oman and 0rodu#t testing 0oli#iesCT /andling !o#al Eultural Markets ABra il S Dire#t (elling $ro"ided ,y A"onCT

/igh6End Eost of Ad"ertising and !arge Budget AmountT !4+real $rodu#t Eam0aigns A#an affe#t 0ro3e#t imageCT !o)er (ales from De"elo0ed Markets in 20'' Athe 2.(. and Euro0eCT Degati"e Results S Ehina (lo)do)n and 1rading Eonditions in 1ai)an and (outh Korea A20'2CT Destle +)nershi0T $ossi,le Future ?lo,al E#onomi# (lo)do)n for Eosmeti#s and !u7ury GtemsT $rodu#tion (lo)do)n ADue to Referen#e and De#ision ,y Dire#tors and Board Mem,ersCT $rofit Margins are !o)er Eom0ared to (maller (i ed Ri"alsT (i e A!ose the Eommuni#ation& 1rust& Gnno"ation& and Marketing GnternallyCT (lo) ?ro)th of Kiehl*s $rodu#t ADe#elerated Re"enue in =estern Euro0e and Asia S !*+real #ut $ri#es in 2' Markets in the 0ast t)o yearsCT (tiff Eom0etition from 2nile"er& $L?& and Re"lonT Iolatile Eurren#y in the MarketsT Iulnera,le to ?lo,al Demand =eakness A!ast Muarter 20'2CT and =orld)ide Market Gmage Adue to )orld)ide marketing strategy )here #oordination and #ontrol of a#ti"ities #an ,e more diffi#ultC.

O11ortunities :N ?ro)th in 20'2 Beat 8.9N Fore#astT A#-uire +ne Billion De) EonsumersT Ba,y Boomers are =orking !onger AA#ti"e Eonsumers )ith E70enda,le Gn#omeCT Eonsumers Dri"en ,y /ealth and =ell6Being More as 1heir +,3e#ti"esT Eor0orate Res0onsi,ility A2nder0ri"ileged Ehildren& (u00ort of Ailing Gndi"iduals& Assistan#e $ro"ided to Iulnera,le $o0ulations& and (#ien#e $romotionCT Di"ersify Gnto De) $rodu#t EategoriesT Dri"ing ?ro)th AEmerging MarketsCT Effe#ti"e Distri,ution and (u00ly Ehain A!*+real is Best in ElassCT Ele#troni# Beauty A$rodu#t (ynergiesCT Emerging and De) MarketsT ?lo,al Branding that A00lies to !o#al Kno)ledge A?lo,al Brands Ada0t to Key MarketsCT ?lo,al Eiti en $ro3e#ts ADifferent $ro3e#ts that /el0 Joung $eo0le from 2nder0ri"ileged ,a#kgrounds in su#h 0la#es as Iietnam& ?ermany& Gsrael& !e,anon& Korea& ()it erland& 1urkey& Dor)ay& and Moro##oCT

?lo,al (kin Market E70e#ted to ?ro) 8.8N through 20'9T ?rants AB'0&000 to B'00&000 Funding ,y !*+real for =omen )ho are a##e0ted in P1he De7t !a,P& an E70erimental 1esting Fund for Digital Gnno"ationCT !*+real ?lo,al Eor0orate +ffi#e Mo"ing to a De) !o#ation ADe) (0orts Eenter& Restaurant... E"erythingCT !*+real has Best in $ra#ti#e Eommuni#ations& Marketing& and EhannelsT !*+real Kno)s /o) to Eom0ete A(tay )ith or Ahead of Eom0etitionCT !*+real +)ns 8.8N /olding of (anofiT !*+real $ro"ides $rodu#ts that $ro"ides De) (trength to the (kinT Market $osition A!o) End to /igh End $rodu#tsCT Det De,t has turned into Det Eash in Four Jears A!*+real4s EE+ =ants to 2se Eash for A#-uisitionsCT $eo0le are !i"ing !onger AMarket Gn#rease 90VCT and (ustaina,le Elean Energy and (trong En"ironmental $oli#y is Dri"ing !*+real AMore Demand in the Market0la#eC.

%hreats A#-uisition of the Right Eom0anies and Brands AFit !*+real*s Brand& Mission& and MarketCT Ad"ertising Budget AMore than B9 Billion $er JearCT Eonsumer (0ending /a,its ADire#ted ,y E#onomi#sCT Eultures Ae.g.& Bra il 6 !o#al Eulture Enfor#es A"on Dire#t (elling Method S !*+real*s $erforman#e Did Dot Meet E70e#tationsCT E#onomi# Do)nturn in (ome Eountries in 20'2T ?ro)ing Eom0etition AEosmeti# BrandsCT Kee0ing u0 )ith Resear#h and Gnno"ationT !o#al Brand ?ro)thT !*+real Be#ome 1oo !arge A!ose Gnternal Eommuni#ations& Marketing& Gnno"ation& and Ereati"ity As Many !arge Eom0anies DoCT !*+real !o)er $rofit Margin AEom0ared to !o#al BrandsCT !*+real may Fa#e $ro,lems Rea#hing A"erage $eo0le in 2nderde"elo0ed Eountries ADistri,ution and EostCT Destle A20'8CT and =orld)ide ?lo,al Ehanges ARa) Material Demand& Manufa#turing !o#ation& Datural Disasters& (u00ly Ehain Disru0tion& Eom0lian#e& et#.C

CONCLUSION

After analy ing this #ase it is #lear ho) im0ortant is to ha"e a good strategi# management and understand ho) the en"ironment #an affe#t e"ery organi ation from the most insignifi#ant #hange to any huge #hange that may in"ol"e any of the de#isions of the #om0any& it is understanda,le that the "ision of the EE+ of the #om0any #an ,ring su##ess to the organi ation and ,uild a good kno) ho) that )ill ena,le the #om0any to enter ne) markets. !*+real has ,een going through a massi"e #hange sin#e their ,eginning as they started their ,usiness #reating a syntheti# hair6#olor 0rodu#t to ,e sold in Fran#e and 0ro,a,ly around Euro0e& the res0onse of the 0eo0le to the 0rodu#t )as so good that the #om0any de#ided to enter the ,eauty market& di"ersifying their 0rodu#t #atalogue not only to hair #are ,ut to skin #are as )ell& )ith the result of ,eing the market leader. /o)e"er the effe#ti"eness of the #om0any is not "ery #lear at this stage as the 0rodu#t ,y itself #an4t guarantee the su##ess of the #om0any& instead of that& a good strategi# management along )ith a "isionary EE+ #an ,ring a ma3or strength to the organi ation and )ill ,uild #onfiden#e )ithin the #om0any to a#hie"e their goals as they stated at the ,eginning& )ell& this is the #ase )e are analy ing& as 0re"iously stated& EE+ +)en Jones had the "ision to e70and the ,oundaries of the #om0any ,y a#-uiring strategi# 0artners that #an #ontri,ute to a massi"e gro)th for !*+real& his leadershi0 ena,les him to see and o00ortunity of e70ansion taking ad"antage of the glo,ali ation ,oom and his "ision of o00ortunities )here the #om0etitors didn*t see anything )as a key to su##eed in some 0arts of the )orld& !*+real )as ,right enough to understand that the needs or likes of the 0eo0le in Ameri#a )ere not the same as the 0eo0le in Asia or in Afri#a reason )hy they de#ided to #reate 0rodu#ts for e"ery single market and this ga"e them the o00ortunity to ,e the )orld leaders in the market. After all this fa#ts it is #lear that !*+real has had a "ery effe#ti"e res0onse to the ne) #hanging en"ironment as they are 0re0ared to ada0t to ne) situations and is a #om0any )illing to deal )ith organi ational #hange& this is a enormous ,enefit for the #om0any as they #an easily gain #om0etiti"e ad"antage at a lo) #ost of o00ortunity.