L’Oreal recently announced a plan to build its largest ever factory in Indonesia to cater to the growing Asian market for L’Oreal products with an intention to reach an envious target of producing 500 million units a year (McDougall, 2011). Indonesia has a thriving, educated young population, good life expectancy at an average of 70 years and therefore has great potential for the marketing of cosmetic products. Skin lightening products’ have high potential for being promoted in the cosmetics’ section as the ethnic constitution of the country comprises mostly of brown skinned people. The major thrust for this marketing endeavor is therefore on the sale of ‘Whitening Lumilight Spa’s in combination with ‘Lancôme Whitening Cream,’ the current market segment for such products being a large one.
1. Objective: This strategy for marketing whitening products manufactured by L’Oreal is selected because this particular cosmetics’ giant is a world leader in such products, and local manufacturing allows for easy placement of the products in the market. Moreover, women in Indonesia usually have brown skin which makes them harbor desires for a fairer skin. Current international exposure to good looking female models and the desire to look beautiful is omnipresent in Indonesian women. Whitening products are therefore easy to sell.
2. Target Market: The target market is young urban women within the age group of 16-35 years. Women of this age group usually are conscious about their looks and spend a high percentage of their earnings on beauty products. Students, working women and housewives are the primary target for this market. As Indonesia is an important hub in the ASEAN (Association of South East Asian) countries, women in major urban cities of Indonesia like Sumatra, Madura, Java and Bali, as well as major metropolitan locations in neighboring countries will also be targeted for this market. The market is split into three groups by age, viz.