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L'Oreal: Building its empire in Indonesia through its luxury brand, Lancme - Term Paper Example


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L'Oreal: Building its empire in Indonesia through its luxury brand, Lancme

L’Oreal recently announced a plan to build its largest ever factory in Indonesia to cater to the growing Asian market for L’Oreal products with an intention to reach an envious target of producing 500 million units a year (McDougall, 2011). Indonesia has a thriving, educated young population, good life expectancy at an average of 70 years and therefore has great potential for the marketing of cosmetic products. Skin lightening products’ have high potential for being promoted in the cosmetics’ section as the ethnic constitution of the country comprises mostly of brown skinned people. The major thrust for this marketing endeavor is therefore on the sale of ‘Whitening Lumilight Spa’s in combination with ‘Lancome Whitening Cream,’ the current market segment for such products being a large one. 1. Objective: This strategy for marketing whitening products manufactured by L’Oreal is selected because this particular cosmetics’ giant is a world leader in such products, and local manufacturing allows for easy placement of the products in the market. Moreover, women in Indonesia usually have brown skin which makes them harbor desires for a fairer skin. Current international exposure to good looking female models and the desire to look beautiful is omnipresent in Indonesian women. Whitening products are therefore easy to sell. 2. Target Market: The target market is young urban women within the age group of 16-35 years. Women of this age group usually are conscious about their looks and spend a high

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percentage of their earnings on beauty products. Students, working women and housewives are the primary target for this market. As Indonesia is an important hub in the ASEAN (Association of South East Asian) countries, women in major urban cities of Indonesia like Sumatra, Madura, Java and Bali, as well as major metropolitan locations in neighboring countries will also be targeted for this market. The market is split into three groups by age, viz. youngsters (16-25 years), office ladies (26-35 years) and career women (> 35 years). 3. Positioning: The products will be positioned in the mass market by developing packages which are affordable to all three identified age groups. Smaller, easy to carry attractive packages in the form of tubes are to be made available at retail chains and supermarkets for use by youngsters’ while the sale of larger packages and spa equipment is to be targeted at women who have facilities to install such products at home. Beauty salons and pharmacies are ideal locations’ for display and sale of such products. The products will be competitively priced in direct competition with similar products produced by rival companies. 4. Marketing mix 4P’s: We intend to sell ‘Whitening Lumilight Spa’ in combination with ‘Lancome Whitening Cream,’ as a bundled product at an introductory price of $250 per unit. This price is competitive when one compares it with the rates of such products’ from rival companies. The bundled product is to be displayed at prominent retail chains, boutiques, beauty salons and pharmacies in the major metropolitan markets of the country. We intend to market the least expensive product near universities where youngsters abound. Our distribution channels include already established retail chains of L’Oreal. In addition we intend to recruit a new sales promotion team, exclusively dealing in the sale of this bundled product. The product is to be actively promoted on


Marketing Strategy Outline Any marketing strategy will depend on availability of clientele and the spending capacity of the consumer. Promotion of any ‘Luxury Cosmetic’ in the market therefore involves thorough research of socio-cultural-economical environment of the target population…
Author : baileydamian
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LOreal: Building its empire in Indonesia through its luxury brand, Lancme
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