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Cross Cultural Consumer Behaviour Essay

3353 words - 14 pages

Contents
1. Introduction2
2. Culture2
2.1 L’Oréal in China: Product line
2.1.1 Product line: Facial Skin Care………………………………………………………….2
2.1.2 Product line: Skin Whitening……………………………………………....................3
2.2 L’Oréal in the USA: Product line
2.2.1 Product line: Eyes Makeup……………………………………………………………..4
2.2.2 Product line: Skin Tanned……………………………………………………………....5
2.3 Comparison and analysis………………………………………………………………………..6
2.4 Improvements and recommendations…………………………………………………….8
3. Perception…………………………………………………………………………………………………..9
3.1 TV advertisement in China: New L’Oréal Paris shampoo……………………….10
3.2 Perceptions of customers
3.2.1 Vision ...view middle of the document...

Both of the sections will contain the analysis and recommendations to make improvements.
2. Culture |
“Culture is the fundamental determinant of a person’s wants and behavior.” (Kotler and Keller, 2013, p.173) Since, culture differences influence people to display a variety of preference. Product variety is one of the marketing mix, which offers customers to have various choices to fit their preference. According to Fisher et al. (1994, cited in Bowman and Kogut, 1995), a company with a wide variety of products can pull customers compared to those rivals with narrower product lines. This section will discuss how culture variation affects L’Oréal to launch distinct product lines in different countries.
3.1 L’Oréal in China: Product line
2.1.1 Product line: Facial skincare
Yue Sai, a local Chinese skincare brand, has been a successful brand with its traditional Chinese medicine skincare products in Chinese beauty market. In order to effectively adapt into China, L’Oréal chose to acquire Yue Sai when it first expanded to China in 2004. In order to practice its motto, innovation in “all kinds of beauty”, L’Oréal has been increasing its research on the ingredients and Chinese skin (L’Oréal, 2014). The company established Shanghai Research and Innovation Centre to combines traditional Chinese medicine and western technical skills to produce the unique skincare products, which are tailored for the skin types of Chinese (L’Oréal, 2014). (Figure 1)
Cordyceps (A genus of fungi)
Cordyceps (A genus of fungi)
Angelica
Angelica
Fungus
Fungus
Figure 1: The product line of facial skincare in Yue Sai focuses on the special ingredients, traditional Chinese medicine, to fit the skin types of Chinese.

(Adapted from Yue Sai Website, 2014)

2.1.2 Product line: Skin Whitening
L’Oréal creates a particular product line of skin whitening in Asian market, called “White Perfect” (Mire, 2010) (Figure 2) The company promotes the products with slogans such as, “White skin gives you confidence." "Be a white bright star, people will focus on you!" "White Sensation." The usage of the language persuades Chinese women to spend more on skin whitening products to bleach their skin tones. This product line has made success, as L’Oréal’s annual profits of skin whitening products in 2010 were estimated over $1 billion in China (Bagley, 2012).

Figure 2

White Perfect Series

Skin Whitening products series
Skin Whitening products series

(Adapted from L’Oréal China Website, 2014)

3.2 L’Oréal in the USA: Product line
The USA has been a large market in beauty industry for a long history, and it was the first country L’Oréal decided to reach for more profits. (Braizaz, 2014) As makeup section has maintained the fastest growth in American market, L’Oréal focuses on makeups to be accustomed to this country. (Figure 3) Through the acquisition of local beauty brands, such as Maybelline New York and NYX cosmetics, the company has so far...

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