MKT 403 Final Exam – Study Guide, Practice Questions & Comprehensive Review
L'Oreal Case
1. What is this case about? - ✔✔Market Segmenting, Targeting, and Positioning (this case is
def STP), international marketing , Product Development/Innovation,
L'Oreal Case
About them - ✔✔Spend most on R&D, even more than P&G does. 3.5%!· Local brand, local
knowledge· How to protect brand globally while adapting to local tastes· Standardize products
and tweak a little differently in diff countries
o Like mcdonalds
-Emerging markets- underdeveloped countries emerging typically have large middle class with
purchasing power
· Innovation which leads to product development
· Speed (like R&B case)
· Geographic diversification (like P&G)· Skillful use of the marketing mix
L'Oreal Case
· Product taxonomy - ✔✔o Product lines: hair color, hair care, skin care, fragrances, cosmetics
-Cosmetics is their biggest product line like 93% so skewed there (low diversification, high risk)
,-Need to diversify more
L'Oreal Case
· Operational divisions (diff from product lines) - ✔✔1. Consumer products (half of cosmetics)
or mass market
-L'Oreal, Garnier, Maybelline
2. Luxury products
-prestigious international brands and sold more selectively like department stores and duty free
shops)-Ex. YSL perfumes
3. Professional Products
-(hair care and color products)
4. Active Cosmetics Department
-sold at pharmacies and special health stores
L'Oreal Case
Geocosmetics - ✔✔study beauty products around the world and develop best products for
that region
o had bunch of research centers like in China
o at local labs, they developed local products
o recognizes that cosmetics used diff in diff countries
,market development and then product development!
L'Oreal Case
Box concept - ✔✔1. Box concept- confining and defining. confining is like trapped and defining
is like tells you what/who you are (very distinct market position)
-multichannel approach to marketing -> we have diff products for diff segments and usually
psychographic or demographic (purchasing power) segments
-each brand is a box and have diff attributes and specific positioning and specific distribution
(diff channels for diff brands)
2. Managers given a box or a brand
-confined to price and position of the brands (cant change)
-can do innovative things IN the box
-box is spacious enough for this
-freedom within a framework
-each operational division related to a price point
a) Consumer products: lower price, sell mass market channels (drugstores, supermarkets)
b) Luxury products: premium brands sell in department stores
c) Professional products- sold only in salons
L'Oreal Case
Multibranding - ✔✔-One category having several brands usually targeting diff segments
-Ex. 3 diff skin creams and 1 focused on antiaging, one on moisturizing, and one dermatologist
focused
, -Ex. L'Oreal for older women, Maybelline geared towards younger woman
-(P&G does it too)
-Sometimes one category having several brands targeting same segments·
Ex. Mars and Kellog's does this
SO DIFF OR SAME SEGMENTS IN MULTIBRANDING
L'Oreal Case
Retroinnovation - ✔✔Moved from French company selling French products to selling every
products to everyone like Hungarian products to Canadians
Retroinnovation- typically innovation comes from headquarters and implemented by field
offices BUT retroinnovation means innovation comes from the field offices (like a marketing
technique or new product) and either send it to headquarters OR send from one field office to
another field office
L'Oreal Case
Globalization, localization, glocalization - ✔✔1. Globalization- developing product to be sold all
over the world, huge economies of scale, very little R&D
a. Cons: but ppl don't get exactly what they want
2. Localization- every target market gets a diff product; adaptation
a. Pros: solves cons of globalization
b. Cons: expensive, few economies of scale
L'Oreal Case
1. What is this case about? - ✔✔Market Segmenting, Targeting, and Positioning (this case is
def STP), international marketing , Product Development/Innovation,
L'Oreal Case
About them - ✔✔Spend most on R&D, even more than P&G does. 3.5%!· Local brand, local
knowledge· How to protect brand globally while adapting to local tastes· Standardize products
and tweak a little differently in diff countries
o Like mcdonalds
-Emerging markets- underdeveloped countries emerging typically have large middle class with
purchasing power
· Innovation which leads to product development
· Speed (like R&B case)
· Geographic diversification (like P&G)· Skillful use of the marketing mix
L'Oreal Case
· Product taxonomy - ✔✔o Product lines: hair color, hair care, skin care, fragrances, cosmetics
-Cosmetics is their biggest product line like 93% so skewed there (low diversification, high risk)
,-Need to diversify more
L'Oreal Case
· Operational divisions (diff from product lines) - ✔✔1. Consumer products (half of cosmetics)
or mass market
-L'Oreal, Garnier, Maybelline
2. Luxury products
-prestigious international brands and sold more selectively like department stores and duty free
shops)-Ex. YSL perfumes
3. Professional Products
-(hair care and color products)
4. Active Cosmetics Department
-sold at pharmacies and special health stores
L'Oreal Case
Geocosmetics - ✔✔study beauty products around the world and develop best products for
that region
o had bunch of research centers like in China
o at local labs, they developed local products
o recognizes that cosmetics used diff in diff countries
,market development and then product development!
L'Oreal Case
Box concept - ✔✔1. Box concept- confining and defining. confining is like trapped and defining
is like tells you what/who you are (very distinct market position)
-multichannel approach to marketing -> we have diff products for diff segments and usually
psychographic or demographic (purchasing power) segments
-each brand is a box and have diff attributes and specific positioning and specific distribution
(diff channels for diff brands)
2. Managers given a box or a brand
-confined to price and position of the brands (cant change)
-can do innovative things IN the box
-box is spacious enough for this
-freedom within a framework
-each operational division related to a price point
a) Consumer products: lower price, sell mass market channels (drugstores, supermarkets)
b) Luxury products: premium brands sell in department stores
c) Professional products- sold only in salons
L'Oreal Case
Multibranding - ✔✔-One category having several brands usually targeting diff segments
-Ex. 3 diff skin creams and 1 focused on antiaging, one on moisturizing, and one dermatologist
focused
, -Ex. L'Oreal for older women, Maybelline geared towards younger woman
-(P&G does it too)
-Sometimes one category having several brands targeting same segments·
Ex. Mars and Kellog's does this
SO DIFF OR SAME SEGMENTS IN MULTIBRANDING
L'Oreal Case
Retroinnovation - ✔✔Moved from French company selling French products to selling every
products to everyone like Hungarian products to Canadians
Retroinnovation- typically innovation comes from headquarters and implemented by field
offices BUT retroinnovation means innovation comes from the field offices (like a marketing
technique or new product) and either send it to headquarters OR send from one field office to
another field office
L'Oreal Case
Globalization, localization, glocalization - ✔✔1. Globalization- developing product to be sold all
over the world, huge economies of scale, very little R&D
a. Cons: but ppl don't get exactly what they want
2. Localization- every target market gets a diff product; adaptation
a. Pros: solves cons of globalization
b. Cons: expensive, few economies of scale
