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 Introduction
þ In 1992 L¶Oreal was the worlds largest
cosmetic producer
þ Had subsidies in access of 100 countries
þ Annual sales of $6.8 billion
þ With an annual increase of 12%
 Background
þ Dhe company has to make a choice to either
launch one of the two products at the same
time or a single one
þ Dhe two products were
BELLE COULEUR
SYNERGIE
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þ Dotal Dutch women ---5 million
þ Increase in marketable population increases every four years by 1
million increase

þ Break Down of users by age in 1986

Less than 25 yrs----27%
25-34----18.4%
35-49---24.6%
50-64----18.4%
65 and over---11.5%

þ Break Down of users by age in 1989

Less than 25 yrs----23.6%--trend of birth control
25-34----25.5%
35-49---26%
50-64----15.6%
65 and over---.09%
 BELLELE

þ It is a brand of permanent hair coloring

products.
þ Has 22 shades in France
þ Its advertisement campaign is ³ covering gray
with natural colors´

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þ Vroduct

Only focus on the main brand Recital as it has market leadership

Dhe brand can ad more verity as hair dye with no Ammonia smell

þ Vrice

Reduce the price would hurt the competitor and help gain market share
þ Vlace

Focus on places that others have not gone to such as salons and market to
them at a discount
Dhese salons can also become a prime source of information

þ Vromotion

Dhe advertisement lacks any clear direction

By fixing this we can cement the image of the products in the minds of our
consumers
 
aonfornot aunc ingB


ou
ur
 L¶Oreal already has a brand in the market that is the brand leader
Recital. Based on the market situation Recital is in its maturity pase
and is a cash cow for L¶Oreal

 It should also be notted that in exibit # 4 percentage of respndet

who rejected Belle Couleur were from Recital proving that the two
brands a quite similar as the majority stood between ³ same´ an
³Better´ when compared to their previous brand

 Shades of the hair dye were not liked by the target market.

 Dutch women not a big fan of hair dye¶s.

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E
IE

þ Synergie was a line of facial skin care products consisting of

Moisturizing cream
Anti-aging day cream
Anti-wrinkle cream
Cleansing milk
Mask and cleansing gel

þ It is made of natural ingredients and its advertisement slogan is

³Dhe alliance of science and nature to prolong the youth of your skin´

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aonfor aunc ingit
þ Skin care sector is the second largest sector in Netherlands

þ It is growing at a rate of 12%

þ Dhe fastest growing sub-section is the Anti-aging cream segment. Dhough it

only occupies only 2% of the skin care market

þ According to the table # 2 the most popular placement of these products is

the drugstores

þ Highly brand loyal

þ Attachment to brand increases with age

þ Dhe market is showing high level of interest in natural products

a cu ation
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þ Market breakup
Day cream---31.7%
Cleansers---27.5%
Mask----20.6%
Donic ----17.9%
Anti-aging cream---2%
þ Dotal Dutch women market ---5 million
þ 1989²50% buy skin care²2.5 million
þ Size of Day cream²1.15 million
þ Dotal size of others---1.35 million
X 
þ Darget of first year
20% of day cream segment----0.23 million
8% of the remaining market---0.108 million

þ Darget for second year(12% growth)

30% of day cream segment----0.54 million
18% of the remaining market---0.381 million
þ Vrice in first year=$ 11.95
þ Average of 10 creams sold per person

þ Dotal Sales year 1 =11.95x(10x338)

=40,391 million
Vrice in second year=$ 12.3
þ Dotal Sales year 2 =12.3x(11x921)

=124,611 million