L’OREAL CASE STUDY
...nsive consumer research and is now trying to develop a plan to assist them in reaching these goals. One new treatment product, Revitalift, has quickly grown to represent 20% of Plenitude’s sales and the company is continuing to develop this product further by branching it out into specific skin care areas (i.e.: Revitalift-eye). This new product’s success has complicated the decision making process on the company’s Plenitude Strategy. The main problem in this case is that L’Oreal’s daily use products are not doing well but their treatment products are doing okay. So they are trying to make a decision on the success of the Plenitude product line by deciding whether or not to expand/change a group of products to be aimed at younger customers with hopes to pick up their “daily use” products market share. This expansion could broaden or possibly dilute the brand. One alternative would be for L’Oreal to not specifically gear any products to the younger customers and focus on making Revitalift the star product. They could continue their success by individually introducing each Revitalift extension product into the market. As they do so, they could begin changing some of their daily use products such as cleansers and moisturizers to be more similar to a “treatment” product, creating basically a complete Revitalift skin care system. A second alternative would be to continue on the same path with the Revitalift product line, gearing it to older consumers as a treatment product as this has proven to be successful. However, L’Oreal should then focus more on changing the daily use products so that they are geared to the younger consumers by developing cleansers and moisturizers that reduce or correct skin problems that younger consumers may experience more than the older consumers. For example they could create a m...