Ana Paula Terzi-Palombo
1) Describe Plenitude's position in the US market in the early 1996. Why has it apparently been less successful in the US than in France when the French "success" formula was used in the US?
Because L'Oreal had a commitment with the trade that they would keep investing and supporting its brands financially and considering that P&G had a very strong market position in the "masstige" skin care category, long term ROI and profit were forecasted for the following years. It was planned that L'Oreal would gain share and well establish its brand Plenitude.
Despite careful planning, L'Oreal failed to meet profit targets 8 years after the US …show more content…
Consumers were not able to differentiate basic moisturizers from treatment moisturizers.
Even though L'Oreal states that they adjusted their formulas to be lighter and less fragranced than the French formula, consumer research proved that the products specifications were out of the US tastes.
French ads were basically translated into English and the "I live with the times" image sought. Even though it doesn't say anywhere in the case that ads were not specifically designed for the US market, it is my opinion that people are sensitive to ethnocentric advertisings and they can read, interpret and distinguish differences concluding that they don't mirror that image. On conscious or unconscious level, the American consumer may have developed a cultural sensitivity to the L'Oreal ads presented in our case.
To the point above, it is important to mention that overall Oil of Olay, the leader in the US, had a long and well established American heritage with consumers. Olay products were referenced as clean (very important for North Americans) and light while L'Oreal Plenitude creams were heavy and greasy.
Plenitude as a brand