Describe Plenitude's Performance in the Us Market in Early 1996

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As mentioned previously, L’Oreal should target the “Stressed Out” and “Age Focused” customer segments, with a goal of marginally expanding sales in the “Price Conscious Socializers” and “Ingredient Apathetic” segments. By doing so, the company would capitalize on the Revitalift brand recognition as an advanced age-defying skin treatment. They can accomplish this by positioning the Plenitude line as a low-price, technologically advanced age-defying treatment. A possible positioning statement might read:

“For women concerned about delaying signs of aging, Plenitude Revitalift provides a technologically advanced treatment product for excellent value, because L’Oreal applies their superior research & development capabilities to provide premium, department store technology to mass market retail outlets.”

Since the treatment segment is where L’oreal’s technological skills stand out, and contains the “class” part of the proposition, they should not deviate from this expertise by developing moisturizers and cleansers through a brand new line. In terms of advertising, they should continue to spend their ad dollars on the Revitalift eye cream, and as they introduce the age prevention products, they should leverage the success of the “facelift in a jar” concept to message to younger users that this product can effectively help them delay and even prevent signs of aging. If L’Oreal stays in this area of technological expertise, they will be able to better compete as Olay attacks their treatment franchise. Since Olay does not have an established level of technology in this market, L’Oreal will maintain their competitive edge in the “premium mass market treatment” area. In terms of the channels, they should continue to sell their products at mass market retailers, but also expand into mid-tier specialty cosmetic stores and department stores such as Ulta, Sears and JCPenney.

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