L’Oreal Group, the world’s women have made a series of popular brands: L’Oreal, Maybelline, Garnier, Lancome, Biotherm, Shu Uemura, poem cards, Vichy … … so many brands, and properly handle the relationship between Their relationship is not easy.
According to the L’Oreal brand identity, quality, lifestyle brand to build the pyramids, through classified channels to separate different grades of strict brand and strengthen its brand equity. L’Oreal (China) belong to the brand in high-end cosmetics, cosmetic public, professional products division, the activity of the Ministry of Health of the four major cosmetics sector. Department of Lancome has a high-end cosmetics, Lena Hao, such as Yue-Sai brand. These brands only in the strict screening of perfume stores, high-end department stores, duty-free shop sales, and so on. The public has a Department of cosmetics L’Oreal Paris, Maybelline, Garnier, small brands, such as nurses. They have a special counter sales channels, such as supermarkets.
For example, L’Oreal Paris, through the special beauty and professional experts, advisers to display the brand image of the network all over China, 118 cities in 503 department store opened a special counter at Carrefour, Wal-Mart stores are also part of a special counter. Nurses small local brands in China has 280,000 sales outlets around the home second, three-tier cities, the expansion of L’Oreal Second, the formation of three cities added. Professional Products Division to poetry cards, L’Oreal hair dye products. The two sales channels of the brand is limited to a hair salon, hairdresser, through the special skills and personalized services to enhance consumer brand identity and a sense of satisfaction.
Activity of the Ministry of Health has a Vichy cosmetics, skin-chuen, the rationale of the two brands belonging to improve the vitality of the skin on skin to treat the role of cosmetics. In response, L’Oreal in China, inventive, through designated pharmacies and other specialized sales channels, such people often talked about innovation model.
L’diversified channels to strengthen the differentiation of the brand image and positioning, brand and more clear framework of brand equity and make a positive contribution.
Re-positioning, which means to break things (such as product) in the mind of consumers to maintain the original location and structure so that things in accordance with the new concept in the mind of consumers to re-schedule the end, the relationship between conditioning in order to create an environment conducive to their new Order. This means that first must be an old idea or product out of the consumer mind, to be loaded into a new. Although the re-positioning, and with their own brand as a reference point.
More than a century, P & G in constant change and innovation to enhance its core competitiveness, in particular market segments to meet the goals and needs of the consumer group’s ground-breaking guide for the future of consumer culture, whether the situation changes or fluctuations in the market, it Always challenges in a variety of patterns to find their own differences and advantages of humane means of marketing, for a period of time, many domestic enterprises are satisfied with the price war, war level of promotions rest on its laurels Huadiweilao like the so-called localization Safe territory, they did not know, so it has created an inert and dependent on the conditions of the shrinking market, P & G’s innovation Needless to say, but in the process of innovation requires a clear strategic direction to planning, so as to firmly grasp the lifeline of its own market.
• strategy as Peter Drucker said, “every company must carry out the basic choice.” Procter & Gamble in the early decades of this has made some simple, clear strategic choice – to choose their own should or should not be engaged in What are the business.
P & G began operating the four core businesses, whether from sales or profits from the point of view have become the world’s leader – fabric care, hair care, baby care and nursing women. Each able to produce at least 10 billion dollars in annual sales.
P & G’s core business to maintain a healthy growth has been crucial. Procter & Gamble in 2000 in trouble because a departure from some of the core business. When the renewed focus on the core business of Procter & Gamble, also a return to steady growth. Today, P & G’s core business is very healthy. If the fabric care business – Procter & Gamble’s oldest and most mature business – in 2007 showed double-digit growth. In the early 90′s, Procter & Gamble is the world’s second largest fabric care companies, accounting for 19% of the global share. Today, P & G in this huge global industry occupies 34% share – almost twice the largest competitors, and share growth in six years in a row.
Nursing women is another example. Procter & Gamble in the 1980s before moving on to the field, is the latest to enter the area of the company, P & G now has more than competitors to become a global leader in market share is the biggest rival twice.
In 2000, P & G has a 10-year sales of more than 1,000,000,000 U.S. dollars of the brand, together accounting for 50% of total sales, the overall profit of more than 50% of their profits. Today, P & G has 23 more than 1,000,000,000 U.S. dollars of the brands, net sales accounted for 2 / 3 as well as 70% of the profits.