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Essay / Research Paper Abstract
This 3 page paper discusses the decision the director of the L'Oreal director of the Netherlands office must make regarding two new products. L'Oreal allows their offices to make the final decision as to whether they will sell any given product. The two under question carry two different labels. A recommendation is made based on the evidence available. Bibliography lists 1 source.
Page Count:
3 pages (~225 words per page)
File: MM12_PGnether.rtf
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Unformatted sample text from the term paper:
are part of the Garnier family brand and both are produced in France. LOreal markets products under its own name but also under other names, including Garnier. LOreal and Garnier
are separate divisions in France but in smaller markets, such as the Netherlands, the two brands would be sold by the same salespeople. Also, while French consumers were familiar with
both brands, Dutch consumers had little or no familiarity with the Garnier label. The only other Garnier brand product was a sunscreen. LOreal operates in such
a way that their subsidiaries have full power to market any new product or not market it. They have no input into R & D but they do select what
they will distribute and sell. van der Zande and her marketing manager had good cause to be concerned about the decision they were facing. If
a new cosmetics product did not have a clear distinction from others and if it did not offer a unique advantage to the consumer, the Dutch woman would simply not
purchase it. Competition in the cosmetics industry is brutal. Garniers major competitors in the Netherlands were: Oil of Olaz (Oil of Olay in the U.S.) made
by Proctor and Gamble, Plenitude by LOreal, Rocher and Dr. vd hoog among others. Ponds, a low-end product, also held a percentage of the mass market. Besides these legitimate competitors
Garnier faced the challenge of the retailers ability to copy a product and have it on the market in a short four months. Compounding the
competitiveness of the industry was the fact that Dutch women tended to purchase face creams only once or twice a year and they tended to be loyal to the brand
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