Strategic Management and Swot Analysis

Contents I. INTRODUCTION a. Brand Extension for LOREAL II. writings REVIEW a. Ansoff intercellular substance b. beat summary c. BCG Matrix III. REFLECTIVE control IV. REFERENCES Brand Extension for LOREAL Brand extension takes place whenever a company wants to enter a freshly securities industry by unfoldment the name of one of its existing defects, rather than using a in the raw one. Especially the luxury sector takes advantage of its well-known steel name when it comes to launching hot crossroads into new-fangled checkerets (Kapferer, 2008, p. 295).The popularity of provoker extension dodging is overdue to the belief that it leads to taller consumer trial than the use of a new cross name because of the awareness levels of the brand name being leveraged (Keller, 2003, p. 582). LOreal as a orbicular brand is known for high quality enhancive goods like make-up and hair concern products for women, men and kids. Its mission peach tree for all connects with the c ompanys slogan Because youre worth it, which is used in nearly every single LOreal advertisement.To identify all the contrastive products of the brands portfolio they utilize the same logo for all of their goods by adapting to the specific field (LOreal homepage, 2012). Considering LOreals image of good demeanor we defined to extend the brand by entering a new food market with a new product. The diversification LOreal stead should be placed in the customer products area with a target grouping of original women. The leather shoes should be available for middle to high income consumers. Though the toll is affordable for this group of customers the quality is still high.With this strategy we want to cover the needs of the existing customers and reach out for new voltage clients. On one hand we intend to increase our gross revenue and profits on the other hand we use the good temperament of LOreal to get our new product connected to the values of the comprehensive brand. To m ake sure that we created a new logo keeping the traditionalistic LOreal letters with a reference to the shoe sector as shown in (image 1). Meanwhile, we forecast that LOreal shoes can strengthen the global brand in time to come.Image 1 Traditional LOreal letters mentioning the new sector Brief Literature Review Before putting guess into practice every company needs to consider its internal and outdoor(a) situation. In this part, three marketing theories will be applied to LOREAL. These are The Ansoff matrix, the tog out analysis and the BCG matrix. Ansoff matrix is a model that helps firms to muster in the mould of marketing options open to them (Riley, 2012). LOreal shoes classified as a diversification was made according to the Ansoff matrix.A diversification is described 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 cou ld date 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 work unneurotic and authority problems that need to be addressed or at least recognized.Comparing the strengths to the weaknesses for LOreal shoes we have to mention that the variety of suppliers and the free-enterprise(a) quality price relation of the product overweight the missing expertise in the shoe sector. The opportunity of using the strong image of LOreal and the fact that there are no other middle price shoes in our own umbrella brand product range can be used to attract new customers. Taking into reputation that the economic situation has changed and people are not willing to elapse as much as they did before the recession took place (Price, 2012).Using the BCG Matrix a company can recognize if a product is lucrative or not. It can be helpful if a company has to decide whether investing addi tional resources in a certain product or services. There are four categories developed to the relative market luck and market crop rate star, cash cow, poor dog, hesitation mark (Lu Zhao, 2006). A star is a product with a high market share and a high market growth rate. With this kind of product the company gains revenue. Therefore, a star can be used to championship weaker sectors. These products with a kickoff 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 limited opportunities. Those limitations do not exist for question marks as they are set in high growth markets with a low market share. These unsung 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 trade-off (Lu Zaho, 2006) I found another website to reference t hese two paragraphs From which website did you get this? gt According to the network Center for Management and Business Administration (2012) the BSG matrix is limited. The different products in a companys portfolio cannot be taken as single-handed they are related to each other. This has to be taken into consideration when it comes to the question whether you keep or you eliminate a product. Reflective Statement To develop the topic we firstly did some research about the definition 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 beauty and care area. We thought about a product that would fit into the enterprises image of beauty and decided to choose shoes for middle-aged 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 that The S WOT 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 set 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. capital of the United Kingdom Kogan Page. Keller, Kevin L. (2003). Strategic Brand Management. (2nd ed. ). Upp er Saddle River, NJ Prentice Hall. Lu, H. & Zhao, L. (2006). combine 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