Case Details:
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Price: |
Case Code |
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MKTG214 |
For delivery in electronic format:
Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling ChargesThemes
International Business \ Globalization |
Case Length |
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16 Pages |
Period |
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1996-2008 |
Pub Date |
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2009 |
Teaching Note |
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Not Available |
Organization |
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L'Oréal |
Industry |
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Cosmetics |
Countries |
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China |
Abstract:
France based L'Oréal entered China in 1996 after the
government relaxed the norms for foreign investment in the country. It formed a
subsidiary named L'Oréal China and began its operations in 1997. The case
details how the products of L'Oréal China gained popularity in the country.
Encouraged with its early success, the company introduced more international
brands in China in order to gain market share. The case also highlights other
strategies adopted by L'Oréal China to increase market share like investing in
research to develop new products that suited the Chinese hair and skin type,
recruiting local employees and capturing the mass market segment through
acquisition of local brands etc. The case also includes a note on the cosmetics
market in China and presents the challenges faced by the company in the country.
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Issues:
» Analyze the opportunities and challenges presented by an emerging, fast
growing market for cosmetic products like China.
» Understand the entry and expansion strategies of L'Oréal in China.
» Study the unique characteristics of a rapidly growing cosmetics market like
China.
» Examine the benefits and challenges of managing a multi-branded cosmetics
business in a developing country.
Contents:
Keywords:
L'Oréal, L'Oréal China, Localization Strategies, Cultural Differences, Diversified Product Portfolio, Brand Innovation, Brand Awareness, Multi-brand strategy, Market Segments, Product Segments, Advertising, Brand Acquisitions, Mass Market, Cosmetics, Economic Environment, P&G in China, Cosmetics Industry in China, Maybelline, Research and development, Chinese consumers, Celebrity Endorsement, Distribution, Counterfeit products
L'Oréal in China
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