L'Oreal is the leader of cosmetics in the World with a turnover of 19 496 million of euros in 2010. L'Oreal has four-divisions/ branch: Active cosmetics, Professional products, consumer products and Luxury products. We have decided to study a brand of Luxury branch of L'Oreal: Helena Rubinstein.
Helena Rubinstein is not only a brand, it's a woman, who is the designer of mascara waterproof in 1939; Most of its products (skin care, make up and perfume) are specialized in anti-ageing. L'Oreal bought Helena Rubinstein (HR) in 1988. Today, HR is embodying by Demi Moore, who is its muse. HR is sold in many countries, particularly in Europe and in Asia.
The growth of the market of cosmetics: Sales progressed of 3 % in 2010 in France and have reached 2,84 billion euros. The average spending of hygiene beauty of 40 years and more is important and increase with the age: the anti-ageing product is thus a positioning with great potential. The part of emerging countries in the world market of cosmetics increases more and more: Russia, India or still China represent today an important turnover.
[...] So, Helena Rubinstein owes stay in the running in the innovation. There are more and more polemical around some ingredients for example Paraben, so many brands must remove these ingredients in their products, but it's very expensive to relaunch a news production because there are many costs like for instance change the ingredients lists on the packaging. Competition : The luxury market is a highly competitive market. The brands considered as direct competitors are Guerlain, Sisley, La Mer, Estée Lauder or La Prairie. [...]
[...] We have decided to study a brand of Luxury branch of L'Oreal: Helena Rubinstein. Helena Rubinstein is not only a brand, it's a woman, who is the designer of mascara waterproof in 1939; Most of its products (skin care, make up and perfume) are specialized in anti-ageing. L'Oreal bought Helena Rubinstein in 1988. Today, HR is embodying by Demi Moore, who is its muse. HR is sold in many countries, particularly in Europe and in Asia. I. Company Strenghts and Weaknesses A. [...]
[...] Consequently, Helena Rubinstein adopts her strategy according to the country. But she adopt only when it's necessary (geocentric orientation). Indeed, she adopts her strategy only in Asia. Factors, which impact this strategy, are: the skin color of customers, the need of customer (According to the social and cultural environments). Helena Rubinstein meets problems with the political and the legal environments so as to launch new products, particularly, in China, because in this country it's necessary to wait at least one year before launching a product, as there are many legal procedures. [...]
[...] Global product management: Helena Rubinstein has two ranges of products: make up and skin care. We have decided to study only make up. What's more, in the make up there are three family products: eyes, lips and complexion. Helena Rubinstein offers global products (cosmetics and skin care), and it's a global brand given that she has the same name and similar image and positioning throughout the world. We can notice that HR has adopted family brand name for its “best-sellers”, in fact for the lips, the name is Wanted (Wanted gloss, Wanted Rouge), for the eyes, it's “Lash Queen”, and for the foundation it's in the most of case “color clone”. [...]
[...] Helena RUBINSTEIN has a concentrated targeting strategy on a global scale as the firm considers this segment is present in all countries. But the whitening product targets Asian women who want to look like European women or like local actresses who have white skin. Global positioning: does the company have the same positioning worldwide? L'Oréal Group brands focuses on two different markets: the middle & the high one. Its brand Helena Rubinstein is on the high market worldwide because of its quality, its price and its fame. The fame, the quality and price of H. [...]
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