L'Oreal
The case concerns Redken for Men, a L'Oreal product targeted at the male market. According to the introduction, the product has not been selling well in the Australian market, which was surprising when compared to the American and European markets. As the senior product manager for Redken 5th Avenue NYC, Matilda Bohling had the task of determining strategies to change this trend.
The study goes on to provide some information relating to the corporation and its products. Redken is a professional division product, only available to the consumer through salons and business outlets. Redken Laboratories were founded in 1960, and inspired by American actress Paula Kent.
Redken revolutionized the industry by introducing protein reconditioning. The Laboratories now hold several patents on protein products and ingredients for hair care. The decision to introduce Redken for Men into Australia was based upon favorable financial projections for this particular market.
The pricing strategy was customized to suit a product that was premium but affordable in the salon-business. Salons would be able to stock all products in the range, so that take-home sets could be customized according to consumer needs.
Several marketing efforts are in place for Redken. Sales professionals make regular visits to each salon stocking the product. A newsletter provides news on existing products, future updates, and promotional offers. The Exchange is a school...
A dedicated Website provides information on products and help men to find local salons that sell Redken for Men. Advertising campaigns were run in the magazines such as GQ and Men's Health to make more salons aware of the product. The main weakness of current Redken sales lies in the expectation from staff to do face-to-face selling. Competition in the market for Redken's product is represented by American Crew, Aveda, and Kevin Murphy, as well as MOP and Sebastian.
1.
Salons that used Redken as preferred supplier did so on the basis of a number of criteria. These include previous experience with the L'Oreal and Redken ranges, trust in their quality, access to style training schools, support by the supplier for key events, advertising campaigns, and ease of use of the products. In short, the differentiation of the product in terms of the advantages associated with the Redken product, as opposed to those of other similar products.
2.
The decision to introduce Redken for Men into the Australian market was based on research that revealed favorable projections in terms of market growth, sales, and product popularity among the target market. The market at the time was growing at 47 per cent, while sales were at $15 billion and projected for $22 billion over the three following years. In terms of consumer preference, 47% of men used hair products daily.…
