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Applying Global Strategies At The Essay

Are there any market specifics that may suggest a different strategy for each of the markets?

A number of market specifics were identified in the case study, including consumer preferences for the types of shampoo and conditioners that were offered and whether they provided the desired outcome (German consumers wanted products that made their thin hair appear fuller, for instance). Similarly, the widely held perception of the company's products as being associated with feminine cosmetics in France, for example, largely limited its premium brands to older women. Likewise, Franch and Quintana emphasize that consumers in different European countries have different hair-washing practices, and while French consumes were washing their hair more frequently than in the past, they still languished far behind their counterparts in other countries such as Germany where consumers washed their hair twice as often -- and therefore consumed twice as much shampoo.

The concentration of new product offerings in different countries was also cited by Franch and Quintana as being salient in formulating different strategies for each country market. In addition, and perhaps most importantly of all, were the cross-cultural differences in preferences for various types of shampoos among the targeted markets, and how these preferences have changed in each country in recent years in ways that demand a responsive country-specific marketing strategy.

What recommendations do you have for L'Oreal's marketing strategy in Europe in general and specific country markets discussed in the case? Why?

Based on the company's experiences in the European market described in the case study, two main recommendations...

At this point in the company's history, the acquisition of some of its European competitors might be in L'Oreal's best interests.
2. In addition, although the company's focus on ongoing research and development to maintain high quality standards and cutting edge technological innovations leveraged with its superior brand recognition provide the foundation for a general European marketing strategy, the case study made it clear that country-specific marketing strategies were needed even with world-class products.

Conclusion

It is reasonable to conclude that while many successful multinational companies today have extensive product lines and enjoy broad brand recognition, these enterprises did not achieve their success by applying a "one-size-fits-all" approach to their marketing strategies, but rather applied a country- or regional-specific approach that considered a broad range of consumer preference variables in the marketing mix. L'Oreal and other similarly situated multinational corporations must approach their market segmentation and positioning carefully so as to avoid diminishing penetration of other product lines with comparable prices, especially in price-conscious countries such as Germany and the UK. In the final analysis, the local adaptation of a global marketing strategy just makes good business sense in an era where the marketplace is becoming increasingly globalized and brand recognition has assumed new relevance and importance.

References

Franch, J. & Quintana, N. (2000). L'Oreal (B): Locally adapting Elseve's global strategy.

Community of European Management Schools Case Study No. 501-012-1.

Sources used in this document:
References

Franch, J. & Quintana, N. (2000). L'Oreal (B): Locally adapting Elseve's global strategy.

Community of European Management Schools Case Study No. 501-012-1.
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