Loreal Case Study

1.0   Case Overview

The Dutch market currently carries the Plenitude skincare range, and the Recital hair colourant, which is also a leading seller in Netherlands under the L'Oreal brand name. Meanwhile, Amber Solaire, a sunscreen, is the only product sold under the Garnier Institute brand name. L'Oreal Netherland had been considering whether to introduce the Synergie skincare line and Belle Couleur hair colourants line into the Netherlands. Synergie and Belle Couleur are marketed under the Garnier Institute name in France.   Under the Garnier family brand name L’Oreal had successfully launched both the Synergie skin care and Belle Couleur permanent hair colouring lines in France. The Garnier brand name is familiar to the French, but Dutch consumers have little to no awareness of the brand. L’Oreal’s main problem in this case is deciding whether they should try to launch a product line in a market with little brand awareness.

Other challenges which are likely to occur in association with the launching of these two new product lines, includes overcoming brand loyalty and defining a positioning statement that appeals to the female Dutch consumer.

Introducing a new product line successfully into the Dutch market is vital for Garnier because it can determine the success of the brand as it expands into new markets.To create a positive brand image and high brand awareness new products must have a strong concept, high market potential and great positioning with consumers.

This paper assumes the setting and market environment circa early 1990s when L’Oreal was deciding whether to introduce two new product lines Belle Couleur and Synergie into the Dutch Market.

2.0 The Strategic Marketing Challenge

L’Oreal strategic marketing challenge is to ensure its Garnier line of products will be successfully launched in order to maintain a positive brand image, create consumer awareness and ensure the future success of its products in Netherlands.

Analysing the...