Faced with changing consumer tastes and fashion trends, companies and any business executive should aim at consolidating his company's presence and relevance in the market. At Redken this is being achieved through intensive marketing and promotional campaigns. The company is not aloe in this market and as such product differentiation is the song on every marketer’s lips.
In such a situation then, we have first to thoughtfully analyze the company's position in the market among competitors and its place also among the consumers in this case beauty and hair care professionals. Now why is this important?
The cost of doing business in the global market is on the rise and signs of a fall are not foreseeable in the near future. With that in mind we can see the relevance in carrying out a marketing plan that shows exactly the company's preferred path in convincing consumers why they should buy the company's product and at the same time the company is able to churn profits to cater for expenses.
Redken has invested a lot in research in order to have a clearly defined niche market that ensures that marketing and promotional efforts are directed to a responsive and intended market.
The process is not that direct as it may sound. The process involves utilizing the right budgeting procedures applying the right kind of attitude that nurtures customer loyalty and brand appeal.
Due to the dynamism of the market again, consumers have to be persuaded and convinced why Redken brand and not the other. In making sure that consumers remain loyal to the brand, product innovation then rules as it appropriate research will deliver what the consumer wants.
Situation analysis
L'Oreal Australia Pty Limited is a wholly-owned subsidiary of French based L'Oreal with either headquarters in Paris. L'Oreal develops and manufactures beauty products and specifically hair care, hair colour, skincare, colour cosmetics and fragrances for the consumer and professional markets.
The company only operates in the market through importation of products from the parent company as no manufacturing is done in Australia. L'Oreal Australia's presence in the market consists of three of the four global product divisions: Consumer retailing, luxury and professional salons and hair care specialists.
Based in Sandringham, Victoria, L'Oreal has a staff of approximately 900 responsible for all its Australian operations. In this report we restrict ourselves into business to business research only and that directs us in to professional salons and hair care specialists transactions and locks out the consumer market. Again this analysis is based on one single brand; Redken.
Company background Willoughby, M. (2007). Managing marketing performance, (University of Central England, Business School)
1934 - L'Oreal Australia was incorporated in Victoria.
Mid 1980's - L'Oreal Australia bought the rights to Hilton Bell's concept of a system of color consultation coding for hairdressers. It was introduced to the profession under the name 'True Colors'.
2003 - Acquired the distribution rights for the Matrix brand of hair care products.
2007 - L'Oreal was one of several cosmetic manufacturers ordered by the Therapeutic Goods Administration in Australia to withdraw advertising regarding the wrinkle removal capabilities of their products.
Mission and Vision statements
The company's mission is stated as ''To lead the professional salon community with profitable partnerships and artistic inspiration based on the scientific approach to superior products on a world wide basis.''
Vision statement: ''To help all salon professionals learn better, earn better and live better.
