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The skin care market was the second largest sector of the Dutch cosmetics and toiletries market with volume and dollar sales growing quickly. Market research concluded the buying intentions for the product were high. Adding to these intentions are demographics. In the late 180's 40 percent of the Dutch population was under 5 years old. Since consumers in this age group are the largest users of cosmetics and toiletries this offered a promising market. The fact that women working outside the home in the Netherlands were increasing at a fast pace adds to greater self-confidence and independence increasing demand for such products. With disposable income available, more women would use that to purchase cosmetics for use on a daily basis. Despite the rising incomes, Dutch women still shopped for value; therefore mid-price cosmetics was a promising market.
Cons
Since consumers tend to be loyal to current brands getting consumers to switch brands might be difficult. Self-concept is often linked with a brand image and this increased the resistance to switching brands. Dutch consumers had little awareness or knowledge of Garnier. Also, Dutch woman typically purchased facial creams about twice a year. Product research indicated that without pricing knowledge intentions were low. There are also numerous competitors able to quickly develop a competing product before a test market was even complete. Higher advertising spending may be required to develop brand awareness and, ideally, brand preference. Additionally, in an established market such as the Netherlands, any new product line introduction had to be financed by current operations in that country.
. Develop the Pros and Cons for the introduction of Belle Couleur.
Pros
Most Dutch women that colored their hair used permanent hair coloring products such as Belle Couleur. None of the current products had a clear advertising position statement describing customer benefits. Belle Couleur could be positioned as "covering gray with natural colors." Hair colorants are also used as a fashion statement, increasing market share even further. L'Oreal already had a positive brand image. By introducing two products at once, Garnier would have a chance to develop a strong brand image without utilizing much shelf space.
Cons
The growing trend was toward semi-permanent hair color. Hair salons were an indirect threat in the hair coloring market. Exact numbers and trends were not known but it was projected that since the number of women working outside the home was increasing, a growing market for home coloring was increasing as well. Consumers perceived home hair color as technically difficult and risky to use, and therefore avoided impulse purchases of home hair coloring. In product testing, buying intentions declined once the price was revealed. Saving on the shelf space meant the company was only able to introduce a limited number of colors, and many Dutch women preferred light colors to the darker colors that's sold well in France.
. If Synergie were to be introduced, what would be your recommendations for the Marketing mix?
Synergie was a line of facial skin care products that consisted of moisturizing cream, anti-aging day cream, anti-wrinkle cream, cleansing milk, mask and cleansing gel. The current trend in the industry was to stretch the lines by adding specific products targeted at skin types. Almost 50% of the 5 million Dutch women between the ages of 15 and 65 used traditional skin care products. L'Oreal had already been successful in the mid-range market, proving a viable market. Sleek packaging would help to distinguish the line as innovative. Free samples would be an incentive for women to try the new products. Promotions in drug store would help capture the target market.
Advertising in women's magazines (possibly with coupons) and commercials placed during popular women's television would also help to promote a clear message.
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