Blog #4

L'Oreal Lays Out '09 Game Plan
By: Jennifer Weil
Source:http://www.wwd.com/beauty-industry-news/loral-lays-out-09-game-plan-2009010?module=most_emailed#/article/beauty-industry-news/loral-lays-out-09-game-plan-2009010?full=true


"It could be 'leaner and meaner.'"

That's L'Oreal's slogan for 2009. Their plans include "up(ping) its advertising outlay while at the same time cutting its number of stockkeeping units, introducing lower-priced items, implementing a hiring freeze in certain markets and focusing on innovative products."

Currently their greatest worry is their luxury products, which is why they are shifting their focus back to the basics. They had some troubles in 2008, but they are staying positive for the upcoming year. CEO Agon thinks they "put up good resistance." And I'm not really all that surprised. They way I see it, make up is a basic necessity for most women. Also, I think make up is very brand conscious. I, for one, am very picky about the products I use on my face. I think lots of women will continue to purchase the basics and if their brand is offered at a cheaper price, as L'Oreal is suggesting they will, then they will continue to purchase the brand they are comfortable with.

I think the strategy of remaining strong with advertising, while being aware of the "buyer's market" that they are currently facing is smart. Give the women what they want.