What is the channel management mode of L 'Oré al Paris? What are the advantages?

The marketing structure of L 'Oré al China is based on channels, which is divided into four major departments: high-end cosmetics department, mass cosmetics department, professional products department and active health cosmetics department. Each cosmetics department has several brands, and each brand applies for many names, which stand out in the product packaging and has its own unique image and advertisements. Different brands * * * enjoy channel strategic resources, which has a highly intensive effect on management, supply chain and partnership. The high-end cosmetics department has three high-end brands: Lancome, biotherm and Helena Rubinstein. The products of these brands are sold in strictly selected distribution channels such as perfume shops, department stores and duty-free shops.

The mass cosmetics department is the most important department, providing L 'Oré al Paris, Maybelline and Canil to consumers through mass consumption channels such as department stores and supermarkets. The newly acquired Yuxi and Little Nurse are included, which makes this department's position in the China market particularly important.

Professional hairdressing products are only sold in hair salons, especially hairdressers, mainly Paris Karsh and L 'Oré al professional series.

Active skin care products are European brands, Vichy and la roche-posay, which are helpful to improve skin vitality and have therapeutic effects on skin. It's usually sold in pharmacies.

L 'Oré al takes these four channels as the warp and brands as the weft, forming a brand matrix with strong integration ability. After any newly purchased brand is merged into the corresponding channel, it can not only make full use of the existing channel resource effect of L 'Oré al, but also expand the overall channel scale of L 'Oré al by increasing the original channels of the brand.

The little nurse acquisition case well reflects the effect of L 'Oré al channel integration. While adopting Canil technology, the new little nurse brand is tied with Canil as a new product, and L 'Oreal's successful retail terminal management model is cited as its marketing system. L 'Oré al has also expanded its mass sales channels through little nurses.

For L 'Oré al, market expansion is bound to be a process in which the market effects of the original four channels are continuously released. This shows that in the process of brand expansion, more attention should be paid to the intensification of management and the maximization of marginal effects, rather than the professional theoretical discussion of brand extension. In the process of brand expansion, if the enterprise can't integrate the old and new resources, realize "1+1>"; 2 "effect, the first thing to consider is pure capital operation, not brand extension.