Brand Project: Elsève

Résumé du document

L'Oréal was created in 1907. It initially specialized in coloration products, and its activities were progressively spread to the whole hygiene and beauty sector. Now a Global leader on the cosmetic and beauty market, the group is present in all the countries of the world, thanks to its subsidiaries. The group l'Oréal is organized into 4 divisions: The luxury product division, with brands like Lancôme, Biotherm, Giorgio Armani, Ralph Lauren; The professional product division, with brands like L'Oréal Professionnel and Kerastase; The active cosmetic division, with brands like Vichy, la Roche-Posay; and the wide public product division, with Garnier, Maybelline New York and Elsève. Elsève was created in 1971 as a formula for dry and brittle hair. It was only in 1997 that the name Elsève was launched with the well- known catch- phrase: "Because I'm worth it". The objective of l'Oréal is to reach all homes. The strategy of Elsève is to identify targets to create a specific product for each type of consumer. At the international level, in 2000, Elsève represented 10% of the market in Great Britain and 51 million of the intensive treatments sales in Brazil. Elsève is the leader in the French market of shampoos and conditioners, and, thanks to this success, there is a progression of L'Oréal in France (better tursnover and results with an evolution of + 8, 9%).

Extraits

[...] III - Positioning Elsève is situated at the top of the hair sector. It owned almost 20% of the market shares in 2005. As we have already said, Elsève is the brand of shampoos which spends the most in research and development. Besides, it plays on the technicity of its products so that they appear as “high-quality” products in the consumers' eyes. That is the reason why we placed the brand at the right extremity on the horizontal axis (technology). [...]

[...] There is a lack of diversification in Elseve's target. ( Even though Elseve is the leader on the market, the competition is fierce and could do harm to the company because: - Elseve only plays on the technological level whereas some of its direct competitors start to vary and adapt their products to both new trends: Eg: Jeen Louis David who allies technology and natural elements in their new shampoo (olive oil + vitamins) - The products are mainly dedicated to one cluster of the population. [...]

[...] That is to say keep the famous people but adapt them to the target: - Young celebrities for teenagers Marie Kate and Ashley Olsen, Daniel Radcliff, Matt Damon, Jared Leto ) - Older famous people (Meryl Streep ) They should also develop the advertisements concerning men in order to promote this range of products better. Men need to feel confident in buying hygiene and “beauty products”. Here again, celebrities could play an important role, especially for older men (Harrison Ford, George Clooney, Sean Connery ) Introduce the natural image and elements using a more familial approach while still keeping this idea of use of the celebrities (Jane Birkin, Charlotte Gainsbourg The man or woman could appear with their mother or grandmother and listen to their advice concerning hair care. [...]

[...] II - Internal analysis A. Company profile L'Oréal was created in 1907. It was initially specialised in coloration product. Its activities were progressively spread to the whole hygienic and beauty sector. Global leader on the cosmetic and beauty market, the group is nowadays present in all the countries of the world, thanks to its subsidiaries. The group l'Oréal is organised in 4 divisions: The luxury product division, with some brands like Lancôme, Biotherm, Giorgio Armani, Ralph Lauren. The professional product division, with some brands like L'Oréal Professionnel and Kerastase. [...]

[...] As a consequence, understanding customers' behaviours helps to choose a positioning and then the values a brand needs to convey. That phenomenon is enlarged in the cosmetics sector. In fact, firms who sell such products sell dream and beauty. The image is a key factor in order to become successful. L'Oreal understood it very well, and applies a stronger control on the image of each one of its brands. In facts, we can observe that Elseve's brand image is close to L'Oreal's one. [...]