Product Assessment-L'Oreal's Hair Care Products



Product Assessment-L'Oreal's Hair Care Products

Introduction

L'Oreal is a multinational organization dealing in cosmetics; make up, fragrances, hair care and accessories for both men and women. The company as operations worldwide and to survive in the dynamic international market, it needs to bring innovation and be adaptable to the external environment. Adaptability and innovation can bring positive outcomes of the organization in meeting the changes of the international uncertain environments. L'Oreal is a multinational organization which has faced critical challenges since its birth and has been highly determined in meeting its objectives of growth and success in the international markets. The hair care and makeup products of L'Oreal have been under low sales in the US market, leading towards threat of obsolesces.

Discussion

Reasons for L'Oreal's Hair Care Products Declining Appeal in US Markets There are several factors that have declined the consumer appeal for L'Oreal's some products in the US market. These factors relate to the macro and micro factors in the environment which have reduced the consumer appeal. L'Oreal has divided its brands into three major categories on the global level. These are Professional Salon Brands such as Redken and Kerastase; Retail Brands such as Garnier, L'Oreal Paris and Maybelline; and Luxury Brands such as Lancôme and Biotherm. The luxury brand and hair car range is the one most affected by declining consumer appeal due to the intense competition. The changing trends and tastes of the consumers in the U.S. market have not been identified and analyzed by L'Oreal in the recent years. The trend has shifted from hair care to face and beauty products. L'Oreal has built a strong brand image in its business units of Maybelline, Garnier and L'Oreal Paris. But the L'Oreal Paris range of hair care has been on a declining position in the US market (Ahmad & Mark, 2001).

L'Oreal's Markets

L'Oreal's markets include the following:

Understand Consumers at Local Level (globally);

Emerging Markets (Brazil, China, etc.);

Different Approaches (U.S., Europe, etc.);

Traditional Markets; and

Cater to Diverse Customers (Ethnic groups, East Aspiring Customers, and Men's).

Therefore, the US market of L'Oreal is targeted through different approach where the changing trends of the population need to be monitored and tailor-made communication strategy needs to be employed. The declining consumer appeal in US occurred mainly due to the macro factors (Rozé, 2012).

Analysis of Macro Factors

The external forces are those influences that are outside the organization and affect the success of an organization. Organization can bring positive organizational changes into their business strategy and practices by understanding the external environment. The external analysis of L'Oreal shows the industry forces and global competition that affects its survival in the international market for its wide range of products which are categorized in the major product divisions of L'Oreal which are professional product business unit, consumer product business unit and luxury product business unit.

Industry

The beauty products industry is currently facing severe affects of recession and changing global trends where it's at the maturity stage of the industry life cycle and growth rate is ...