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ger system is not do more harm than good. Therefore, l 'oreal group will adhere to the management mechanism and perfect the present. Accurate, clear and unique brand market positioning is l 'oreal to create brand assets of one of the most critical basic steps.

 

(1) brand merger and acquisition

 

L 'oreal group from its inception has been committed to brand development, now it has more than 500 brand, each brand and has a large number of product categories, under the brand of merger and acquisition ways to strengthen its brand portfolio, is one of its consistent brand strategy. Particular way is: spend heavily to buy brand, build an elegant French coat, and then into the international market.

 

One of the most successful cases in the l 'oreal group brand mergers should be maybelline. L 'oreal and 1996 acquisition of maybelline and move its headquarters fromMemphistoNew York, moving closer to the international big shop sign. Maybelline under the l 'oreal group's packaging, its fashion, popular positioning has received the very popular. Even maybelline in 2002 at the same time, with 19% of global market share of world's leading cosmetics brand.

 

InChina, from the end of 2003 to early 2003, l 'oreal group in just 45 days in Chinese local brands successfully acquired the little nurse andkan, successfully break into the Chinese market. The little nurse good and inexpensive, and its high degree of recognition;Kanbrand represents a kind of mode of Chinese beauty, its good performance in mass cosmetics market (annual sales of 38 million euros), one of the reasons that these are favored l 'oreal. At the same time, the competition of procter & gamble company in the Chinese market long-term dominance. And specializing in cosmetics and hair care products of l 'oreal is not allowed procter & gamble in the cosmetics and hair care product market dominant again. Therefore, in view of own brand in the mass cosmetics market pattern of relatively weak this characteristic, l 'oreal purchase all the little nurse,kanis.

 

L 'oreal in domestic acquisition, from another perspective, is focused on the part of the pyramidKentucky, coupled with l 'oreal in various segments of different brand, its pyramid structure is more stable. And according to relevant data, the successful acquisition of the little nurse and kan l 'oreal, female consumers in China to protect skin to taste a sharp increase of market share, more than half of the market share. L 'oreal according tokanbrand the Oriental aesthetics characteristics, to make it a 'model' on behalf of the Chinese beauty international brand. By l 'oreal group acquired maybelline, kan and small nurse brand, it is not hard to see the other brands of merger and acquisition is the powerful weapon of a l 'oreal brand expansion, while its offer for the other brand is also strictly revolve around the needs of its brand positioning strategy.

 

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