L'Oreal
L’Oreal as the world’s largest beauty company is where it is today thanks to the globalization of American beauty. In 2000, L’Oreal acquired brand Kiehl’s as an addition to their luxury collection; as Kiehl’s are known for their high quality, effectiveness and for creating a buzz amongst celebrities. L’Oreal should proceed in globalizing Kiehl’s. Taking Kiehl’s global into major cities in every region in the world would be one of the ways to increase profit growth. By entering new markets, L’Oreal would be able to expand its horizons and reach more customers. However, this decision would pose a challenge. If the brand were to be globalized, they would face pressures to be locally responsive. As it is a luxury brand, Kiehl’s would have an identical positioning and advertising imagery everywhere it is sold. They would be conflicted between reaching out and yet being able to maintain its integrity. Challenges of replicating the original essence of the New York store and yet balancing with its relevancy to its local customers would surface. This would be due to the differences in consumer tastes and preference. For an example, as Kiehl’s is an American brand, its products are tailor-made for a certain type of skin. If they were to take its product to China, there would be a possibility that Kiehl’s current products would not be the best fit for Asian skin; be it in terms of scent preference or suitability. Kiehl’s would then have to differentiate its product offering across different geographic markets. They would face differences in traditional practices and infrastructure as well. Being a small business owned by a family, Kiehl’s marketing strategy differs from L’Oreal’s in terms of their marketing strategy. L’Oreal has million-dollar advertising budgets whereas Kiehl’s did no advertising at all. They would now have to decide as to which strategy they would like to adapt. Continue on Kiehl’s marketing strategy or L’Oreal’s? Kiehl’s also had done