L’oreal and the Globalization of American Beauty - 2308 Words

â€Å"L’Oreal and the Globalization of American Beauty† I. Key Problem From the inception of L’Oreal, in 1907, until the late 70’s the global beauty market was largely fragmented and characterized by the domination of local consumer preferences over the search for global efficiencies. Though consumer product companies had been gradually moving toward beauty products and cosmetics, the 80’s marked a monumental industry shift when major conglomerates, such as Unilever and PG, began to buy leading U.S. companies to globalize their brands. In order to keep up with an industry that was experiencing rapid consolidation and the emergence of more powerful international competition, L’Oreal decided to revamp their globalization strategy. They†¦show more content†¦This would be a relatively safe approach that would take advantage of the brand’s existing exclusive image and economic success. Although there would be no expansion outside of the U.S., this strategy would allow L’Oreal to maintain a strong footho ld in the lucrative high-end segment of the American beauty market without the risk of losing exclusivity through international expansion. Also, the competitive advantage that Kiehl’s enjoys in the U.S. is largely based on its image, which has been created by unique marketing and distribution. These distinct features of the company that make Kiehl’s a celebrated â€Å"New York† brand may be very difficult to duplicate in foreign markets. L’Oreal could cautiously continue to expand the brand in the U.S. through on-line sales and a limited introduction of new freestanding stores. They could also continue to test international demand for the Kiehl’s product line through the distribution outlets that currently exist in London, Hong Kong, Toronto, and Paris. Since Kiehl’s is an exclusive product, there may be limited opportunity to further expand the brand inside the United States without over-saturating the market. Also, this strategy would not take advantage of potentially robust profits from pushing Kiehl’s into the vast international marketplace. More importantly, the approach ofShow MoreRelatedLOrà ©al and the Globalization of American Beauty Essay856 Words   |  4 Pagesthe tagline â€Å"Because you’re worth it† and to what brand it belongs to. L’Oreal is one of the top leading brands in the hair and beauty industry. Not just in Europe where it originated in 1907 by Eugene Schueller, rather across nations in various countries. By the mid-1930’s Eugene not only expanded L’Oreal throughout Europe but also gained a leader for hair and body care products. In the 1950’s consequent to World War II L’Oreal entered the US Market. It is believed that if can be prevalent in theRead MoreLOreal and the Globalization of American Beauty1535 Words   |  7 PagesEXECUTIVE SUMMARY. If we look at the over 100-year history of L’Oreal we see how much that company changed and became the biggest global cosmetic company. They expanded and acquire many other companies in the world especially in USA and France. They faced some challenges on the way to that title. Some of the challenges are: high rivalry in the industry, marketing problems with sustaining a consistent brand positioning of the products in some markets, and the cultural differences they faced inRead MoreL’oreal and the Globalization of American Beauty Essay1420 Words   |  6 PagesIntroduction: L’Oreal was started in 1907 by French chemist, Eugene Schueller, who developed the world’s first synthetic hair-color product, L’Aureole. By 1912 his hair products were sold in France, Netherlands, Austria and Italy. 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