As stated in the Wall Street Journal, L'Oreal's sales increased 5.8% during the third-quarter of this year. Their products range from deodorants sold at grocery stores to loftily priced Lancome creams and scents; the lower-priced items have proven necessary in L'Oreal's growth. Since the market has been static in the current stressed economic environment, any growth has been due to market shares. In the mass-market consumer products division, sales rose 6.5% and only 5.7% in the luxury item division. Their mass-market items, such as Maybelline make-up, allows L'Oreal to gain profit from the ever-growing middle-class.
L'Oreal's widening product mix (e.g. adding a new line of deodorant this past year) has increased its target consumers, enveloping the middle-class market. Evident by third-quarter rates, positive results ensued. Perhaps increasing products that are within reach of the middle-class's price range will allow L'Oreal to continue its growth without having to lower prices of existing products.
http://online.wsj.com/article/SB10001424052702304023804575566244149896672.html?mod=WSJ_Consumerproducts_leftHeadlines
Widening a company's product mix is definitely key to successful marketing and growth. As we know, all products have a theoretical life cycle model. If companies do not put effort into changes such as widening their product mix, or furthering technology, these companies could fall risk to an early product maturity. From that point, a declining product is the result, which will lower productivity for a business.
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