L’Oreal of Paris: Bringing Class to Market with Plenitude Essay

LOreal has always used its Class to Market approach and used its high-end technologically original products to advertise its brand. It uses the Class to Market products to finance its research into newer technologically advanced products. The US Market is a very competitive market where all the companies gravel millions of dollars into advertising and other promotional events. The US market also has a lot of potential as the people are fashionable and have the capital to pay for the products that cosmetic companies make.The US market presents its own challenges people from across the world live in the US, for a cosmetic company this means that at that place are many skin tones, skin types etc. importantly, it also means that thither are different attitudes and perceptions about cosmetics, consumers income levels, consumers budget towards cosmetics. And this differs from state to state in the US. Community A maybe using a lot of cosmetics vs. Community B where people feel that cos metics are too fashionable and hence scorn using them but these opposing opinions like I mentioned also go along with subtle changes in perception amongst communities.Unlike Europe where it is easy to categorise people based on the country, in the US it is extremely difficult. There are companies that are doing it quite successfully but as the CEO mentioned, LOreal needs to figure out a couple of things before they can crack the US market. Their market share is stagnant and they are now competitiveness back however, what they need in the US is to identify which product go to what area the expensive products probably sell dampen on the east edge than the west?The moisturizers probably sell better in the colder parts of the country in a certain season compared to the cleansers which again probably sell better on the east coast as people generally (myth or reality? Only research can tell us) have more specie and care more about their looks. Social pressure is also another factor that will affect the way people use and spend gold on cosmetics. LOreal must also analyze what products to sell and which ones not to. It has hundreds of products and its very difficult to sell all of them successfully in each country. However, release with just 5 or 10 products isnt going to win the battle either.They should sell high-end products with big profit margins but they must know that there are other companies competing for the same dollars, so the product they sell must either be better or must be properly differentiated. change products in smasher parlors is a good idea in the US, however, they must first find out which parts of the US has more beauty parlors, where do customers get what type of treatments, and where do customers ask for specialized products vs. letting the beauty parlor decide for them. The level or research that goes into introducing products for the US has to be oftentimes deeper than the research they have done in Europe.They are basically bak ing on Europe to provide two-thirds of their revenues and profits. The company is focusing their resources on Europe, which is not a bad thing however, with competition getting successful int eh US it shows that there is a lot that LOreal is losing. LOreal is also losing on the lucrative southeastward Asia India and China market, there are 3 Billion people in that part of the world and less than 20% of their sales come from this region. With the money silken into China and India, people will eventually have more spending power which means they will spend more money on items of beauty and other personal care products.