Creating and Sustaining Brand Equity for LOreal Assignment

Creating and Sustaining Brand Equity for LOreal - Assignment Example Models like Porter’s Five Forces have been used to match the practical aspects with theoretical ones, along with recommendations on a feasible course of action for the company to embrace success in the future. Â  The environment surrounding a business comprises of both micro and macro forces that shape up the strategy of the business and also test the viability of the developed strategy in real time. For L’Oreal, the market has been a mix of favorable and unfavorable forces where the genius of L’Oreal through its two success recipes- diversification and innovation, changed the tides. Â  The cosmetics industry has been very fragmented yet open to new offerings and product innovations, keeping in mind the needs of varied consumer groups. Demographically, L’Oreal was presented with a host of opportunities to come up with various products with different ethnic and cultural shades. Â  Cosmetics is an industry which is not limited to just creams. It extends way beyond face products and involves hair and skin care and beauty products. A player who was able to operate through these lines of product width was the one who could sustain itself in the booming cosmetic and beauty product market, which was done really well by L’Oreal. Â  The entire industry, as obvious in the case, is in its growth stage with multiple players entering the battleground. L’Oreal had been able to secure its pole position till now because of new product propositions every year to sustain the wave of innovation and tight control over its operational costs. Yet, the following points emerge out of the industry analysis of cosmetics.