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Essay Details:
Essay text:
The root causes of L’Oreal’s problems are:
1. Wrong assumptions of the target market
2. Applying a market strategy based on the those assumptions
3. Continuing to do so for an extended period even given the results
The target market
When L’Oreal planned to release Plenitude in the US market, it is assumed that what would be successful for the French market would translate to the same success in the US market if the same formula was applied.
The model of an “executive woman” had mass appeal thus was so successful in France. However, as clearly shown later on in the market studies done in 1995, the market segments that attracted Plenitude the most was the “stressed out” and “age focused” segments which only made up 40% of the market...
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Common topics in this essay:
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