Case Study 2 – L’Oreal Thailand
10/1/2013
Mohammad Ali, Ali Haider, Ali Raza, Ashwin, Krishna & Prasanth
CONTENTS
Introduction……………………………………………………………………………………..2
Analysis…………….……………………………………………………………………………...3
Strategic Choice …….…………………………………………………………………………6
Strategic Gap …………………………………………………………………………………...7
Implementation Plan ………………………………………………………………………..9
Conclusions and Recommendations ………………………………………………..11
INTRODUCTION
L’Oreal is a beauty and cosmetic global company and is vastly spread company all over the world. The company is large sized as it is a Multi-National Company (MNC).L’Oreal offered a number of cosmetic products and beauty services through its fourteen brands they had in 2000, segmented on the basis of price and target markets. Some of the brands were
Biotherm which exclusively offered skin care products
Kerastase offered only hair care products
PCI offered only fragrances and ancillary products
Helena Rubinstein & Lancôme offered skin care as well as make-up products
L’Oreal Paris covered hair colours, skin care, make-up and hair care products.
L’Oreal Professional offered services such as hair colouring and hair care treatment
Maybelline was exclusively used for make-up products
Garnier only dealt with hair colours.
L’Oreal offered their expertise in the service of women and men worldwide, meeting the diversity of their beauty desires with a number of brands which targeted different markets accordingly. Biotherm, PCI, Lancôme covered the very high end market, L’Oreal Paris and L’Oreal Professional covered the high end and Maybelline and Garnier covered mostly mass market. L’Oreal Thailand had been performing poor after Asian crisis and was facing a decline in market share, low sales and profitability. Chris Martins, was appointed as a Managing Director in order to help increase the profitably, sales and market share of L’Oreal in Thailand.