Portfolio Balance:
Radical brand positioning, and brand
portfolio arbitration enables L’OREAL to avoid cannibalization. Each brand has
an identified DNA and “technological furlow” (Chailan, 2010).
Each
brand has a very precise furrow, which means that others can’t encroach on it
(Chailan, 2010).
Differentiation and competitive advantage
·
Adding targets
One of today’s big criteria when launching
a product is to research adding targets; the limit is linked to the point where
adding a product no longer adds targets, but involves destructive competition
between brands.
·
Economic limit in terms of
efficiency and the risk of ultra-segmentation.
Strategic fit
Product portfolio management is closely
linked to the company’s strategy. A good strategy aims at obtaining a
sustainable competitive advantage.
·
L’Oreal’s competitive advantage
lies in its proximity to consumers.
·
L’Oreal is concerned with
moments of truth.
