Two
companies that are non-US, key players within the Household and Personal
Products are the L’Oreal and Unilever. According to a report produced by
Datamonitor, both of these two companies each hold considerable shares in the
international markets alongside the big US companies like Procter and Gamble
and Johnson & Johnson. Unilever currently holds 5.7% of the international market
share, while L’Oreal holds 4.5%.
L’Oreal
has earned its sizable share of the international market through numerous
strengths it has garnered during its more than hundred years of operation.
These strengths are, “strong international brands and presence in all
distribution channels, accelerating globalization and internationalization of
the brand portfolio, and focus[ing upon] innovation and differentiation through
robust R&D.”
The cosmetics company currently operates 23 unique brands in
approximately 130 countries around the world. Each of these brands offers a
varying product mix, including make-up, skin care, fragrances, and hair
products all at various price points. Underneath the L’Oreal Group the company
carries many well recognizable brands, such as L’Oreal Paris, Garnier,
Maybelline, Redken, Lancôme, and Giorgio Armani.
Each of these brands is targeted to
different market segmentations of socioeconomic status. Luxury brands like
Lancôme are priced significantly higher and usually sold through higher end
department stores compared to L’Oreal’s other makeup line Maybelline that is
most commonly sold through drug stores. The brand differentiation allows for
L’Oreal to be competitive in different segmentations, where price is a driving
force.
Many
of the strengths that have lead L’Oreal to be a key player in the international
markets are very similar to those that have Unilever has utilized to earn its
place in the share. Strengths unique to Unilever, carrying brands in both the
household and personal products industry and the food products industry, are “diversified
revenue streams, research and development activities, and a focus on sustainability.”
With its combination of environmental conscientiousness and diverse brand and
product selection, Unilever has become a formidable presence in the
international markets.
Sources:
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=2849aa12-d5fa-4bed-86a4-984f7cd2220c%40sessionmgr4&vid=4&hid=24
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=89cdf45a-5a42-4123-a432-a76aec76a7ed%40sessionmgr11&vid=2&hid=25
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=2849aa12-d5fa-4bed-86a4-984f7cd2220c%40sessionmgr4&vid=5&hid=105
