Case Plenitude

1 ANALYZE THE COMPETITIVE POSITION OF PLÉNITUDE.

- Plénitude is positioned as the first class brand in the mass-market distribution

- Plénitude used two clear messages to put the anti-ageing concept behind its products: conserving youthful skin, and slowing down the effects of ageing. The claim of the brand embeds this two messages: “ Plénitude, the skincare range that delays the signs of ageing”.

- The target segment is active urban working women worried about ageing; who want the results offered by luxury products but who are unable to afford such goods.

- It is distributed through the consumer channel

- Geographically very strong in its home country (France), with high penetration in the target segment (skin care - face care).

2 WHICH ARE POSSIBLE GROWTH STRATEGIES FOR PLÉNITUDE?

- Geographic growth. Plénitude became the leader in France’s face care market in 1987. The brand was launched in Germany, the UK and the US in 1988. Plénitude was gradually introduced, to the point where it was sold in over 80 countries thanks to its expertise in skin needs by age group. So, taking advance on experience in internationalization, a fast growing method would be enter the Latin American and Asian markets.

- According some studies, these rapid-growth markets will become an even more dominant force in global trade over the coming decade, with the Asia-Pacific region set to experience the fastest growth in global trade. Trade will also be increasingly focused around Asia, the Middle East and Africa, suggesting that the key geographical location for companies will change. l’Oréal will need to gain footholds in rapid growth markets at an early stage, while they still have the opportunities to establish a significant market presence and gain market share.

- Other rapid-growth economies outside of Asia is Latin America will experience a slight decline in their share of global trade over this decade.

- Plénitude brand was positioned as the first class brand in the mass-market distribution. The wide range of high added value products were positioned as anti-ageing products and distributed through the consumer channel used to sell hair-care products. Plénitude created specific products for specific problems, such as eye wrinkles and dry skin, basing its communications on a message it used up to 1996: “Plénitude, the skincare range that delays the signs of ageing”., always focused on skin care but not in the other categories that l’Oréal have. So, growth by new categories focus in mass-market could be a good way to achieve this growth.

- Plénitud have to take care about cannibalization, i.e. to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product.by l’Oréal. While this may seem inherently negative, in the context of a carefully planned strategy, it can be effective, because growing the market. So, it is a key consideration make a product portfolio analysis.

- On the other hand, as we can see in the following graphic, traditionally, it was only female customers who showed any interest in face care. Plénitude had a complete range of face care products but the brand did not have any body care and tanning products. Likewise, Plénitud had not developed any products for male consumers up to that point. So, introduce Plénitud into the other categories of products using the same business model could by another good way to boost growth.

3 EXPLORE AND DISCUSS THE POSSIBILITY OF EXTENDING THE PLÉNITUDE BRAND TO OTHER PRODUCT CATEGORIES.

- As seen before, on of the strengths of plenitude has been a clear positioning on fighting the “signs of ageing” inside l'Oreal brand architecture, and also positioned as an expensive brand which guarantees results. As a result, if Plenitude thinks about expanding to other product categories, this model must be fulfilled.

3.1 SUN-CARE MARKET

- One of the product categories that must be covered by Plenitude with consistency might be related to sun-care products. On that Category Plenitude might take advantage about the patented solar filter Mexoryl SX and a UVB filter for protection against the daily sun rays, which are the main cause of skin ageing. On this category there is a lack of brands positioned on the high value - high cost that Plenitude might cover. There is also the possibility to grow the category by using sun-care products on the day to day live further than the general use of the category (Beach sun baths or outdoors activities).

- Reviewing the European market, the biggest markets for sun-care products are Italy, France and UK, representing almost 70% of the European market. On those, it must be considered that at least 33% of the sales are done in pharmacies, which reinforce the Plenitude

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