Strategic Management and Swot Analysis

Contents I. INTRODUCTION a. Brand Extension for LOREAL II. LITERATURE REVIEW a. Ansoff Matrix b. dress up depth psychology c. BCG Matrix III. pondering STATEMENT IV. REFERENCES Brand Extension for LOREAL Brand extension takes enthrone whenever a follow wants to enter a saucy commercialise by using the name of one of its existing scratchs, rather than using a new one. Especi exclusivelyy the luxury ara takes advantage of its well-known brand names when it comes to launching new returns into new grocery stores (Kapferer, 2008, p. 295).The popularity of brand extension system is due to the belief that it leads to spiriteder consumer trial than the use of a new brand name because of the aw atomic number 18ness levels of the brand name being leveraged (Keller, 2003, p. 582). LOreal as a global brand is known for high fiber cosmetic peachys like make-up and hair bursting charge intersections for women, men and kids. Its guardianship Beauty for only connects with the compa nys slogan Because youre worth it, which is utilise in nearly every single LOreal advertisement.To identify all the assorted wares of the brands portfolio they utilize the same logo for all of their greats by adapting to the specific field (LOreal homepage, 2012). Considering LOreals range of mountains of good appearance we decided to extend the brand by entering a new merchandise with a new product. The diversification LOreal station should be bug outd in the customer products area with a mug group of professional women. The leather shoes should be available for meat to high income consumers. Though the price is affordable for this group of customers the quality is even so high.With this strategy we want to cover the needs of the existing customers and reach fall out for new potential clients. On one hand we intend to change magnitude our sales and profits on the other(a) hand we use the good reputation of LOreal to get our new product connected to the determine of t he umbrella brand. To make sure that we created a new logo retentivity the traditional LOreal garner with a reference to the shoe sector as shown in (image 1). Meanwhile, we forecast that LOreal shoes can lace the global brand in future.Image 1 Traditional LOreal letters mentioning the new sector Brief Literature Review Before put surmisal into practice every company needs to consider its natural and external situation. In this part, three marketing theories will be utilize to LOREAL. These are The Ansoff matrix, the SWOT analysis and the BCG matrix. Ansoff matrix is a precedent that helps firms to outline the range of marketing options open to them (Riley, 2012). LOreal shoes sort as a diversification was made according to the Ansoff matrix.A diversification is depict as a new product for a new market. LOreal added shoes to its existing product range, left the skin and hair care market and entered the new footwear area. Image 2 Ansoff matrix With the SWOT Analysis we coul d discover our strengths and weaknesses, and identify both the opportunities and the threats for LOreal. In other words, as Renault stated A SWOT is to reveal positive forces that break away together and potential problems that need to be addressed or at least recognized.Comparing the strengths to the weaknesses for LOreal shoes we constitute to mention that the miscellany of suppliers and the competitive quality price relation of the product overweight the absent expertise in the shoe sector. The opportunity of using the strong image of LOreal and the fact that there are no other nerve center price shoes in our own umbrella brand product range can be employ to attract new customers. winning into account that the economic situation has changed and people are not involuntary to spend as much as they did before the recession took place (Price, 2012).Using the BCG Matrix a company can recognize if a product is profitable or not. It can be helpful if a company has to decide wheth er investing additional resources in a certain product or services. There are four categories developed to the relative market share and market growth rate star, cash cow, poor dog, interrogative sentence mark (Lu Zhao, 2006). A star is a product with a high market share and a high market growth rate. With this pattern of product the company gains revenue. Therefore, a star can be used to support weaker sectors. These products with a low market growth rate and a low market share are called poor dogs.Cash cows are well-established with a high market share but as the market growth rate is low the company has to be aware of bound opportunities. Those limitations do not exist for question marks as they are located in high growth markets with a low market share. These unknown new products like Loreal shoes do have the potential to establish and become stars or even cash cows. In future they could be able to promote weaker sectors and create a tradeoff (Lu Zaho, 2006) I found anothe r website to reference these two paragraphs From which website did you get this? gt check to the Internet Center for Management and cable Administration (2012) the BSG matrix is limited. The different products in a companys portfolio cannot be taken as independent they are related to each other. This has to be taken into attachment when it comes to the question whether you keep or you eliminate a product. Reflective report To develop the topic we firstly did some research about the translation of brand extension and LOreal as a company.We discovered that creating a brand extension for LOreal is a difficult task as the umbrella brand already covers a lot of sectors in the watcher and care area. We thought about a product that would fit into the go-aheads image of beauty and decided to choose shoes for old professional women. We looked into several marketing theories to support our decision such as the SWOT analysis, Ansoff matrix, and the BCG matrix. However, we discovered th at The SWOT analysis is the most helpful theory for our research.Since LOREAL shoes classified as diversification, the SWOT analysis helped us to discover our brands current strengths and weaknesses as well as the potential opportunities and threats that we might find in the future. This made it easier for us to frame our brands short term and long term goals. References Collett, S. (1999). Business Planning, E-journal of SWOT Analysis, 33(29), 58. Retrieved November 05, 2012, from http//jr3tv3gd5w. search. serialssolutions. com/ Hussey, D. (1999). strategic Change, E-journal of Igor Ansoffs Continuing Contribution to Strategic Management, 8(7), 05.Retrieved November 06, 2012, from http//onlinelibrary. wiley. com/doi/10. 1002/(SICI)1099-1697(199911)87%3C375AID-JSC462%3E3. 0. CO2-U/pdf Kapferer, J. N. (2008). The New Strategic Brand Management Advanced Insights and Strategic Thinking. London Kogan Page. Keller, Kevin L. (2003). Strategic Brand Management. (2nd ed. ). Upper Saddle Ri ver, NJ learner Hall. Lu, H. & Zhao, L. (2006). INTEGRATING GIS AND BCG MODEL FOR MARKETING STRATEGIC PLANNING. 14(18), 02-04. Retrieved November 06, 2012, from http//iceb. nccu. edu. tw/proceedings/APDSI/2006/718-725. df Price, E. (2012). A reduction in European over-consumption will be undone by any Eurozone solution. Retrieved November 01, 2012, from http//blogs. lse. ac. uk/europpblog/2012/07/23/eurozone-over-consumption/ Riley, J. (2012). Ansoff Matrix. Retrieved November 07, 2012, from http//www. tutor2u. net/business/strategy/ansoff_matrix. htm Renault, V. (n. d. ). SWOT Analysis Strengths, Weaknesses, Opportunities, and Threats. Retrieved November 08, 2012, from http//ctb. ku. edu/en/tablecontents/sub_section_main_1049. aspx