L'Oreal is known as one of the leading multinational cosmetic giant. However,the company have a lot of catching up to do in the retail field, with only two retail stores; one in Beverly Center, Los Angeles and another in Westfarms mall, Connecticut. According to BNET.com, L'Oreal opened these two stores not to necessarily to become a part of the retail market, but to find out more about customers buying habit.
Since L'Oreal's two retail stores are not in New York I decided to window shop at Target ( a popular discount store) to see how L'Oreal's price and promotion translates to the average buyer and who the companyis trying to trying to target in relation to the products on the store shelves. Upon my visit to Target, I see a small selection of products on display in
comparison to the many different brands own by L'Oreal. Also, the prices are pocket friendly with mark downs.This shows that although L'Oreal is not involve in the direct retail process, the company influences the retail mix in relation to the reaction of customers.For example, L'Oreal's "Lancome" collection at Macys range in price from $59- $98,where Target has" Revitalift" for $11.99 after a $2.55 mark down. This shows that the prices are base on L'Oreal's target market, and merchants retail mix. Moreover, L'Oreal is definitely carrying out it's mission of beautifying the world
no matter their income level.Furthermore, L'Oreal should stick to manufacturing and leave the retailing to department / discount stores, because this approach might seem a bit discriminatory.Because I live in Brooklyn and shop at discount stores does not mean that I cannot afford "luxury" cosmetics. After all, everyone loves a good bargain especially in this market.
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