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Parfums Cacharel de L’Oréal 1997-2007:

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Decoding and Revitalizing a Classic Brand

03/2014-4929

This case was written by Nicholas Rowell, Research Associate, under the supervision of Pierre Chandon, Associate
Professor of Marketing, and Klaus Wertenbroch, Professor of Marketing, both at INSEAD. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. We thank Eddie Roschi (INSEAD 99) and Patrick Lapointe (INSEAD 99) for providing valuable input based on a report that they wrote while studying at INSEAD. We also thank Vadim Grigorian (INSEAD 00) for his research assistance. Additional material about INSEAD case studies (e.g., videos, spreadsheets, links) can be accessed at cases.insead.edu. Copyright © 2007 INSEAD
COPIES MAY NOT BE MADE WITHOUT PERMISSION. NO PART OF THIS PUBLICATION MAY BE COPIED,
IN ANY FORM OR MEDIUM WHATSOEVER WITHOUT THE PERMISSION OF THE COPYRIGHT OWNER.

STORED, TRANSMITTED, REPRODUCED OR DISTRIBUTED

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Think of the relationship between consumers and today’s brands as a party.
People meet in a noisy, crowded place. As the room fills, it becomes harder to hear those who have something interesting to say. Some of the regular partygoers eye the crowd of fashionable newcomers warily and begin to ask themselves whether they should change their own look or whether perhaps their pick-up lines need updating. Others take a quick look at the newcomers but resolve to stay loyal to their own, original self that has worked well in the past. Many brands face a similar challenge. How can they appeal to changing consumers and at the same time remain true to their original identity? How can they determine what they really stand for? How important is it to remain faithful to that original identity?

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In 1997, Parfums Cacharel, formerly one of the brand leaders in the perfume

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