Cannibalization within a Multi-brand Portfolio – The Case of L'Oréal Group
(2024) In LBMG Strategic Brand Management - Masters Paper Series BUSN21 20242Department of Business Administration
- Abstract
- Purpose: To investigate how the L'Oréal Group manages its multi-brand portfolio within the beauty market, focusing on how they navigate the complexities of brand cannibalization.
Methodology: This paper employs a qualitative research method. Empirical data about the case object L'Oréal Group was collected through secondary data from their latest annual report, websites and online sources. Primary data was collected through a semi-structured interview with a L'Oréal Group representative.
Findings: The findings show that L'Oréal Group’s brand portfolio is divided into four divisions. In the Consumer Goods division, L'Oréal Paris and Maybelline New York face elevated cannibalization, while pairs like NYX and Garnier, Magic Mask and... (More) - Purpose: To investigate how the L'Oréal Group manages its multi-brand portfolio within the beauty market, focusing on how they navigate the complexities of brand cannibalization.
Methodology: This paper employs a qualitative research method. Empirical data about the case object L'Oréal Group was collected through secondary data from their latest annual report, websites and online sources. Primary data was collected through a semi-structured interview with a L'Oréal Group representative.
Findings: The findings show that L'Oréal Group’s brand portfolio is divided into four divisions. In the Consumer Goods division, L'Oréal Paris and Maybelline New York face elevated cannibalization, while pairs like NYX and Garnier, Magic Mask and Stylenanda, and Essie and Mixa experience minor cannibalization. Dark & Lovely and Niely demonstrate managed coexistence, with no brands identified as underleveraged. Larger brands use cannibalization strategically, while smaller niche brands avoid it by targeting distinct markets, emphasizing the need to tailor strategies based on brand size and reach.
Research limitations: Limited scope due to reliance on secondary data and one interview. Possible reduced precision due to the narrow focus on one division and the absence of consumer insights or additional segmentation.
Practical implications: Brand cannibalization can be effective for larger brands but may limit growth for smaller ones. Managers may focus on promoting higher-margin products to protect profitability. Each brand must serve a clear purpose, complementing the portfolio and enhancing competitiveness.
Original/value: There is limited research and case studies that apply relevant concepts of multi-brand portfolios and cannibalization to real-life firms. Moreover, cannibalization is often studied in isolation, rather than in the broader context of portfolio management and strategic decision-making.
Paper type: Research paper (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9177477
- author
- Karlsson, Jacob LU ; Henriksson, Olivia LU and Ageman, Frida LU
- supervisor
- organization
- course
- BUSN21 20242
- year
- 2024
- type
- L3 - Miscellaneous, Projetcs etc.
- subject
- keywords
- Brand Cannibalization, Brand portfolio, Multi-brand portfolio, L'Oréal Group, Segmentation
- publication/series
- LBMG Strategic Brand Management - Masters Paper Series
- language
- English
- id
- 9177477
- date added to LUP
- 2024-11-08 10:18:33
- date last changed
- 2024-11-08 10:18:33
@misc{9177477,
abstract = {{Purpose: To investigate how the L'Oréal Group manages its multi-brand portfolio within the beauty market, focusing on how they navigate the complexities of brand cannibalization.
Methodology: This paper employs a qualitative research method. Empirical data about the case object L'Oréal Group was collected through secondary data from their latest annual report, websites and online sources. Primary data was collected through a semi-structured interview with a L'Oréal Group representative.
Findings: The findings show that L'Oréal Group’s brand portfolio is divided into four divisions. In the Consumer Goods division, L'Oréal Paris and Maybelline New York face elevated cannibalization, while pairs like NYX and Garnier, Magic Mask and Stylenanda, and Essie and Mixa experience minor cannibalization. Dark & Lovely and Niely demonstrate managed coexistence, with no brands identified as underleveraged. Larger brands use cannibalization strategically, while smaller niche brands avoid it by targeting distinct markets, emphasizing the need to tailor strategies based on brand size and reach.
Research limitations: Limited scope due to reliance on secondary data and one interview. Possible reduced precision due to the narrow focus on one division and the absence of consumer insights or additional segmentation.
Practical implications: Brand cannibalization can be effective for larger brands but may limit growth for smaller ones. Managers may focus on promoting higher-margin products to protect profitability. Each brand must serve a clear purpose, complementing the portfolio and enhancing competitiveness.
Original/value: There is limited research and case studies that apply relevant concepts of multi-brand portfolios and cannibalization to real-life firms. Moreover, cannibalization is often studied in isolation, rather than in the broader context of portfolio management and strategic decision-making.
Paper type: Research paper}},
author = {{Karlsson, Jacob and Henriksson, Olivia and Ageman, Frida}},
language = {{eng}},
note = {{Student Paper}},
series = {{LBMG Strategic Brand Management - Masters Paper Series}},
title = {{Cannibalization within a Multi-brand Portfolio – The Case of L'Oréal Group}},
year = {{2024}},
}