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Nurul ain

on 2 December 2012

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Transcript of POLLUTION

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli By:
- Saiful Mujaddeed bin Yusoff
- Mohd Alif bin Fadzi
- Mohd Hanif bin Aminuden
- Abdullah bin Jaloh
- Nurul Ain Afiqah bt Mohd Jayos L'Oreal China - Nursing Mininurse back to health ..L'Oreal Group.. Group Profile a century of expertise in cosmetics
the world's largest cosmetics & beauty company - in 130 countries all over the world with 27 global brands
- 68 900 employees
- 27 global brands World Presence L'Oreal Brands Consumer Products Garnier
L'Oreal Paris
Maybelline New York
Softsheen Carson
CCB Paris Professional Products L'Oreal Professionnel
Shu Uemura Art of Hair
Keraskin Esthetics Luxury Products Lancome
Shu Eumura
Giorgio Armani
Ralph Lauren
Diesel Case Study L'Oreal China - Nursing Mininurse
back to health ..L'Oreal in China.. Wholly owned
subsidiaries MNC often prefer to enter new markets with 100% ownership.
Definition of acquisition – MNC buys up existing companies
L’Oreal bought Mininurse to speed up their growth in Chinese market.
L’Oreal kept the segmentation for the young girls and used the Garnier’s technology. Why L’Oreal want
to acquisition? The trend of beauty gives a great opportunity to L’Oreal.
Mininurse did have the good distribution channel which gives L’Oreal a platform to sell its products without adding too much to costs.
The acquisition of a well- recognized Chinese domestic brand will help L’Oreal to win more market shares. How did L’Oreal be
successful in China? Product L’Oreal is good at creating new product. Eg: Maybelline’s mascara Price Put high price for luxury brands such as Lancome and Helena Rubinstein to show their elegance and quality.
L’Oreal considered the economic situation of China. Place Build the factory in Su Zhou
Paid much attention to distribution channels Promotion L’Oreal use famous Chinese stars to communicate with publics
They advertise their brand with signboard in the center of town.
Promotes their brand in TV Channel’s golden time. Why L’Oreal use
the endorsement? To re-launch Mininurse
To explain to people about the new phase of the brand Celebrity’s fit with the brand image
Celebrity—Product match.
Celebrity popularity - Certain parameters that postulate compatibility between the celebrity and brand image are: Gong Li Li Jia Xin Tong Sun Jie ..Mininurse.. launched in 1992 - best known skincare brands with a 90% brand recognition
top 3 China's skincare brand
distribution network of 280 000 outlets L'Oreal acquisite Mininurse saw Mininurse as a platform to further develop its mass market Garnier range in China
bought in December 2003
got access to the brand, its marketing network, and a manufacturing facility What L'Oreal did to Mininurse? The firm markets 17 skincare and hair-care brands, mostly imports except for Mininurse and Yue-Sai
The firm ran an ad campaign to re-launch Mininurse by using local celebrities L’Oreal decided to co-brand Mininurse with Garnier, L’Oreal’s global mass-market brand
L’Oreal dressed Mininurse in international clothes
The Garnier name would bring international technology credentials and bolster Mininurse’s brand equity What happened next? brand’s market share tumbled from 5.1 percent in October 2003, shortly before the deal, to 3.5 percent 2 years later Can L’Oreal nurse the brand back to health? ..Mininurse.. ..Issues arise.. Sacked or Revitalized? big mistakes in terms of: target market sales strategies were defined as young adults emerging rivals didn't give Mininurse a break
low-end image didn't seem to appeal to the potential young ladies Mininurse dissolved in
China's market Mininurse products quite similar to Garnier
the cosmetics market in China are growing by the year
the Multinational Company; P&G, Shiseido make acquisition with other local brands
some of Mininurse supplier quit after L'Oreal acquired Mininurse ..‘misleading’ ads.. FDA issues warning to L’Oreal
over ‘misleading’ ads L'Oreal claimed its skin creams could : 'boost the activity of genes' or 'stimulate cell regeneration'
any product that is intended to affect the structure or function of the human body is classified as a drug
E.g: - Genifique Repair Youth Activating Night Cream, - Absolute Eye Precious Cell, - Advanced Regenerating & Reconstructing Eye Cream FirstPost Business - 11th September 2012 ..Q & A.. 1) Was the Mininurse acquisition
really worth the wait
and the effort for Loreal?
No, it is not worth. They should enter the market without relying on Mininurse distribution but should stressing on their brand and the best strategies on penetrate the market instead 2) What might have been the drivers behind Mininurse’s market share drop? Was the Mininurse-Garnier co-branding a strategic mistake?

i. Product from Loreal take over the market share of Mininurse’s
ii. Mininurse co-branding a mistake strategic because :
a) Customer start to using Garnier rather than Mininurse
b) Co-branding make Mininurse brand was go down in China market.
iii. Mininurse should be reposition :
a) to gain again their customer
b) make a improvement in their brand 3) What is your prescription to
revitalize Mininurse? Should L’oreal
discard the Garnier endorsement? Should the brand repositioned?
- Mininurse should rebranding their product
- Repackaging their product
- Loreal should not discard the Garnier endorsement because:
a)Customer will not aware about the new product from Garnier
..Value added.. Current News L'Oréal signs Urban Decay Cosmetics
- New market for higher-end makeup

L'Oreal was announced as one of the 2012 World’s Most Ethical Companies by the Ethisphere Institute ..Latest Strategies.. 1) L’Oréal taps into Indonesian market:
- Open largest factory in Cikarang, Indonesia
- Targeting 1 billion Asia Pacific customers.
2) L'Oréal focuses on social networking:
a) Focus on Twitter and Facebook
b) 1 billion social network user
c) Using Instagram

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