Lancome Brand Management in China & USA Dissertation

Lancome Brand Management in chinaware & USA - Dissertation ExampleExisting surveys intimately Lancome were utilized to discover the differences in customer acceptance in the two countries. To countercheck the findings of surveys, online articles, annual reports of LOreal, the mother company of Lancome, and other reading materials were considered as references. Primary survey of 20 Chinese respondents and 20 American respondents revealed the impact or brand management, brand equity, and brand equity value in terms of 65% of total remove for luxury cosmetics among the Chinese and 50% for the Americans.Findings showed that other than differences in preferences about what is considered beautiful and the differences in attitude as well as behavior of consumers with regards to luxury cosmetics, therefore the brand management theory is practiced in both countries. It states people value quality, consistency with good experiences with a product, and would also appreciate gaining added val ue from the identical brand. Its value is initially gained from discoveries of risks with using the product. Since there are more competitors in the USA which are also branded and know to be safe and the securities industry is saturated, Lancome in the USA faces price competition, whereas in China, due to less competitors that are known to be similarly safe cosmetics and many more cities do not have such a quality cosmetic, Lancome China has been growing faster in spite of the much higher prices of its products. Lancome cosmetics in the USA are known as Privilege Cosmetics while in China, it is a luxury with the best quality safest to use, best value, consistent and predictable with the many years of its existence. Chapter 1 asylum 1.1 Background Globalization of businesses and the need for developed countries to look for new markets have been challenging marketing managers to find ways and means to penetrate economies for quality products to be appreciated, accepted, and establ ished. One effective way has been brand marketing. France, the home of Lancome brand managed by its mother company LOreal, had formulated this luxury cosmetics since 1935. It was Armand Petitjean who invented it while LOreal pertinacious to own it by 1964. The success of this brand in the world market has reaped for the company $5.5 billion worth of brand value, according to Forbes (2012). Lancome was named 75 most decently brand covering all products worldwide. As of 2012, its sales total had reached $ 3.8 billion. LOreal brand is 25. Avon is 70. These three are under the same consumer packaged goods industry. Lancome has outperformed Avon in China through brand marketing management strategies since Avon is more on direct selling which is said to be 25% about the brand and 75% about the sales channel (Kowitt 2012, par. 9). In North America, LOreals Clarisonic cosmetic brand experienced a double-digit growth in 2012 (LOreal 2012). 1.2 Objectives The overall aim is to manifest that the principles in brand