L'oreal Nederland B.V.: Product

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L'Oreal Nederland B.V.: Product Introduction Page 1 of 1 03/31/03
L'Oreal Nederland B.V.: Product
By Frederick W Langrehr, Valparaiso University, Lee Dahriger Butler University, and
Anne Stocker. This case was written with the cooperation of management, solely for the
purpose of stimulating student discussion. All events and individuals are real, but
names have been disguised. We appreciate the help of J. B. Wilkenson and V B.
Langrehr on earlier drafts of this case.
'Yolanda van der Zande, director of the Netherlands L'Oreal subsidiary, faced two tough
decisions and was discussing their with Mike Rourke, her market manager for cosmetics and
toiletries. "We have to decide whether to introduce the Synergie skin care line and Belle Couleur
permanent hair colorants." Synergie had recently been successfully introduced in France, the
home country for L'Oreal. Belle Couleur had been successfully marketed in France for two
decades. Mr. Rourke responded:
Yes, and if we decide to go ahead with an introduction we'll also need to develop marketing
programs for the product lines. Fortunately, we only need to think about marketing, since the
products will still be manufactured in France.
Ms. van der Zande replied:
Right, but remember the marketing decisions on these lines are critical. Both of these lines are
part of the Garnier family brand name Currently Ambre Solaire (a sunscreen) is the only product
we distribute with the Garnier name in the Netherlands But headquarters would like us to
introduce more Garnier product lines into our market over the next few years, and it's critical
that our first product launches in this line be successful
Mr. Rourke interjected, "But we already sell other brands of L'Oreal products in our market. If
we introduce Garnier what will happen to them?" After some more discussion, Ms. van der
Zande suggested:
Why don't you review what we know about the Dutch market? We've already done extensive
marketing research on consumer reactions to Synergie and Belle Couleur. Why don't you look at
it and get back to me with your recommendations in two weeks.

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