Loreal Case Study Essay

1546 Words Nov 28th, 2015 7 Pages
Case Study:
L'Oreal in China

Allen Cha

1a) In a short time, the young Chinese cosmetic market has become quite saturated with numerous firms. In order for Yue Sai to position its brand effectively, it has to draw upon unique strengths that others do not have. Madam Yue-Sai created Yue Sai with the aim “to create, produce and sell the very best beauty and skincare products that we can offer to Asian women and to the world…” The company started under her belief that the Chinese women had different standards for beauty and required specifically tailored cosmetic products. If Yue Sai under Cotyhad continued to build its brand under this positioning instead of focusing on distribution, the brand would be a far more prominent player in
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For example, many Chinese women view makeup as superficial, unnecessary, and potentially harmful to skin. Positioning Yue-Sai as a delicate luxury cosmetic product focused primarily on healthy anti-aging beauty preservation rather than artificial aesthetic enhancement would attract more traditional older Chinese women. The delicate aspect of the brand positioning would alleviate the negative preconceptions. Even incorporating a small quantity of some expensive TCM(Traditional Chinese Medicine) to advertise on the packaging and marketing campaigns would bring favorable consumer response toward the Yue Sai brand.
With a general increase in nationalism among Chinese consumers due to events like Olympics, World Expo, & other global Chinese successes, it would be prudent to position the Yue Sai brand specifically for Chinese women. With the brand name Yue Sai, originating from a famous Chinese celebrity who was a vibrant Chinese patriot and now a historical icon of mature female empowerment, this cultural positioning is an opportunity that should be seized.
Also, the rapid increase in disposable income among Chinese consumers is creating large demand for luxury and sophisticated products. Therefore, foreign products benefited largely due to the Chinese preconception of foreign products as high quality. But this is rapidly fading with growing nationalism and improving reputation of numerous Chinese firms around the

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