MKTG1270 Product Innovation and Management Authentic Case Assessment Semester 2, 2025 | RMIT

Instructions:

Maximum of 2500 words, including all tables (but excluding figures, frameworks, models, and references). There is no minimum word count, but your answers must be of sufficient quality to answer the question(s) fully.

This case contains four main questions that relate to a practical product innovation scenario. The questions are contained in email messages from the company’s senior innovation director to add to the authenticity of the task. All questions are equally weighted in importance (25 marks each), and your response will be graded according to the rubric in the assessment task that relates directly to Course Learning Outcomes:

CLO2: Recognise the important relationship between marketing strategy choices and new product development decisions in an organisation and apply these in new product choices.

CLO3: Understand the role of the marketer in developing a new product development strategy and how they motivate others in the organisation to contribute to the process

CLO6: Analyse and evaluate the strengths and weaknesses of the new product development process in an organisational context to improve its effectiveness and efficiency.

This final assignment is worth a total of 50 marks for the semester. The use of point form or short narratives, highlighted sections, diagrams, figures, and tables is permitted and encouraged. It does not need to be in essay form. You do need to cite your sources of external evidence and research in the body of the answer, and you need a reference list for each question (This list is not included in the word count). You need to provide a word count for each question to ensure it doesn’t exceed the 2500-word limit.

Important Notes:

• The case is based on a practical and realistic scenario to enable you to answer the questions provided.
• As your work is submitted via our plagiarism-checking software, you should reference your work as necessary.
• You may need to do additional research to provide answers to the questions being asked. You will need to cite your sources and provide a reference list for each question as needed (the reference list for each question is not included in the word count).
• State any assumptions you make when answering.
• Please ensure your answers to questions are correctly numbered.
• Without an approved extension, late submissions are not possible.
• You will also need to read and sign an agreement/charter that you will not use AI, e.g., ChatGPT or similar, for your answers and that you do your own research and writing and not collaborate with others. You will need to acknowledge that failure to do so may result in a “0” mark for the assessment.

The Case

L’Oréal Singapore, the Southeast Asian subsidiary of the world’s largest cosmetics company, has established itself as a formidable force in Singapore’s thriving beauty and personal care market. As the second-largest beauty company in Singapore with a 9.6% market share and commanding positions across multiple categories, L’Oréal Singapore has successfully navigated the dynamic preferences of Singaporean consumers while building a comprehensive portfolio spanning both premium and mass market segments.

Operating in Singapore’s robust SGD 2.11 billion beauty and personal care market (2024), L’Oréal Singapore has achieved particularly strong positions in key growth categories: leading the color cosmetics segment with a 19% market share, maintaining a significant 13% share in the competitive skin care market (the only company with double-digit share), and establishing strong presence across premium beauty specialists and mass market channels. The company’s success reflects its ability to adapt global innovations to local preferences while leveraging Singapore’s strategic position as a regional hub for Southeast Asian expansion.

Current Singapore Portfolio Performance:

L’Oréal Singapore operates a diversified portfolio across premium and mass market segments, strategically positioned to capture Singapore’s growing demand for multifunctional products and dermo cosmetics:

• Premium Portfolio: Lancôme and Kiehl’s lead in the luxury segment, capitalising on Singapore’s SGD 870 million premium beauty market (3.1% annual growth)
• Mass Market Excellence: L’Oréal Paris and Maybelline drive volume growth, particularly in color cosmetics, where L’Oréal commands 19% market share
• Dermo cosmetics Leadership: La Roche-Posay and Vichy capitalize on the booming dermo cosmetics segment (22.9% growth in 2024), meeting growing demand for doctor-recommended, organic-ingredient products
• Professional Division: Strong presence in Singapore’s professional beauty channels, leveraging the country’s position as a regional training and education hub

L’Oréal Singapore’s success is built on deep understanding of local market dynamics: responding to consumer preference for multifunctional products that combine skincare, cosmetic, and sun protection benefits; leveraging Singapore’s sophisticated e-commerce infrastructure (16.5% of beauty sales, growing rapidly); and maintaining strong presence across traditional offline channels that still represent 80.9% of market sales through beauty specialists, health stores, and supermarkets.

Strategic Advantages in the Singapore Market:

L’Oréal Singapore’s market leadership stems from several key strategic advantages:

• Market Intelligence: Deep consumer insights driving successful adaptation of global products to local preferences and climate conditions
• Multi-Channel Excellence: Strong performance across offline (80.9% market share) and rapidly growing e-commerce channels (16.5% share)
• Portfolio Breadth: Unique ability to serve both premium consumers seeking luxury experiences and mass market consumers seeking affordable innovation
• Innovation Capability: Singapore-based R&D and marketing teams enabling rapid product localization and regional customization
• Distribution Strength: Established relationships with key retail partners, from premium beauty specialists to major supermarket chains
• Regional Hub Benefits: Singapore’s strategic location enables efficient supply chain management and market expansion across Southeast Asia

L’Oréal for the Future Program Implementation

Building on L’Oréal Group’s global sustainability leadership, L’Oréal Singapore has implemented comprehensive sustainability initiatives that align with both corporate commitments and growing local consumer demand for responsible beauty:

• Sustainable Sourcing: Partnership with local and regional suppliers to source sustainable palm oil, responsibly sourced ingredients, and recyclable packaging materials
• Carbon Neutrality Goals: Singapore operations contributing to L’Oréal’s commitment to carbon neutrality by 2030 through renewable energy adoption and supply chain optimisation
• Circular Beauty: Implementation of refillable packaging systems and recycling programs across premium brands, responding to Singapore’s waste reduction initiatives
• Water Conservation: Advanced manufacturing processes at regional facilities, reducing water consumption by 60% per finished product since 2005
• Digital Innovation for Sustainability: AI-powered supply chain optimization and virtual try-on technologies reducing product waste and transportation emissions

Strategic Expansion Opportunity

Building on its exceptional performance in Singapore’s sophisticated beauty market, L’Oréal Singapore has been selected by L’Oréal Group headquarters to lead the development and launch of a revolutionary new sustainable beauty sub-brand targeting the high-growth Australian market. Australia represents a strategic expansion opportunity with its AUD 5.8 billion beauty and personal care market, strong regulatory environment supporting clean beauty claims, and growing consumer demand for sustainable and locally relevant products.

The innovation challenge centers on creating ‘BioLuxe by L’Oréal’ – a premium sustainable beauty sub-brand that leverages Singapore’s proven market insights, combines L’Oréal’s global innovation capabilities with Australian botanical ingredients, and addresses the unique needs of Australian consumers across the country’s diverse climate zones and multicultural demographics.

Dr. Isabella Chen, L’Oréal Singapore’s newly appointed Director of Sustainable Innovation, has been tasked with leading this ambitious Australian expansion project. Dr. Chen brings exceptional credentials from her previous role as Senior Innovation Manager for L’Oréal Asia Pacific, combined with extensive experience in sustainable product development, regulatory compliance across multiple markets, and deep expertise in adapting beauty formulations for diverse climate conditions and cultural preferences.

The Australian expansion presents significant opportunities alongside complex market and competitive challenges:

Opportunities:

• Market Growth: Australia’s sustainable beauty segment is growing at 15.2% annually, significantly above the overall beauty market growth rate of 4.8%
• Premium Positioning: Strong consumer willingness to pay premium prices for proven, sustainable, and clean beauty products with verified environmental credentials
• Regulatory Support: Australia’s TGA (Therapeutic Goods Administration) provides clear pathways for beauty product claims substantiation and organic certification
• Cultural Alignment: Australian consumers’ environmental consciousness and outdoor lifestyle create a natural demand for sustainable, sun-protection-focused beauty products
• Distribution Infrastructure: Established premium beauty retail network through Mecca, Sephora Australia, and specialist organic beauty retailers

Challenges:

• Competitive Intensity: Established sustainable beauty players (Aesop, Jurlique, Grown Alchemist) with strong local brand equity and Australian botanical positioning
• Regulatory Complexity: Australian Consumer Law requirements for environmental claims substantiation and ‘Made in Australia’ labeling preferences
• Supply Chain Adaptation: Need to balance L’Oréal’s global supply chain efficiencies with Australian consumer preference for locally sourced ingredients
• Cultural Localization: Adapting Singapore’s successful Asian-botanical formulations for Australian skin types, climate conditions, and cultural beauty preferences
• Retail Partnership Development: Securing premium shelf space and marketing support in Australia’s concentrated retail environment dominated by established relationships

BioLuxe by L’Oréal – Target Market Strategy

The expansion will focus on three key strategic market segments:

• Premium Beauty Enthusiasts: Target environmentally conscious consumers (ages 25-45) willing to pay premium prices for luxury sustainable beauty products with proven efficacy and environmental credentials
• Clean Beauty Advocates: Focus on health-conscious consumers seeking products with transparent ingredient lists, organic certifications, and minimal environmental impact throughout the product lifecycle
• Australian Lifestyle Alignment: Develop products specifically designed for Australia’s outdoor lifestyle, intense UV conditions, and diverse climate zones from tropical north to temperate south

To ensure the successful development and launch of BioLuxe by L’Oréal in the competitive Australian market, Dr. Chen is seeking expert guidance on sustainable innovation strategy, consumer insights development, and market entry optimization. Your expertise as a Senior Beauty Innovation Consultant has been highly recommended, and L’Oréal Singapore has engaged your services to provide strategic recommendations for this critical expansion initiative.

Requirements

Dr. Isabella Chen has sent you a series of emails seeking your professional insights and strategic recommendations for L’Oréal Singapore’s development of BioLuxe by L’Oréal and its Australian market entry strategy. Your analysis and recommendations will be presented to both L’Oréal Singapore’s leadership team and L’Oréal Group’s International Division in an upcoming strategic review session.

You should respond to the emails individually and in sequence (Question 1, Question 2, Question 3, Question 4). Answer each question on a separate page with clear question labels. Put references used for answering the question at the bottom of each question (they are not included in the word count). Please keep your total response to a maximum of 2500 words and provide the word count for each question at the bottom (excluding references).

You must read each question carefully and answer what is specifically asked. As L’Oréal Singapore is developing a new sustainable beauty sub-brand for international expansion, you may need to make reasonable assumptions – please state any assumptions you make clearly. You must make use of lecture materials and conduct additional research to provide insightful, evidence-based answers that reflect current industry trends and competitive dynamics.

The L’Oréal Singapore leadership team and L’Oréal Group International Division want to see your own professional insights supported by high-quality research, not generic responses. Your recommendations will directly influence the BioLuxe by L’Oréal product innovation strategy, Australian market entry approach, and potential expansion to other Asia-Pacific markets.

Question 1: (25 marks)

bottom of your answer.

First Email

To:  Senior.consultant@beautyinnovation.com
Subject: Australian Market Entry – Sustainable Beauty Innovation Success Factors From:   isabella.chen@loreal.com

L’Oréal Group has tasked our Singapore team with developing BioLuxe by L’Oréal for the Australian market entry, building on our strong 9.6% market share and leadership positions in Singapore’s SGD 2.11 billion beauty market. We need a comprehensive analysis of the critical success factors that will determine our competitive advantage in Australia’s sustainable beauty segment over the next 3-5 years, particularly leveraging our Singapore market insights and L’Oréal’s global innovation capabilities.

Drawing on current research and insights from authoritative industry sources, please identify and elaborate on the most critical emerging success factors for sustainable beauty product innovation, specifically for established multinational beauty companies launching new sustainable sub-brands in the competitive Australian market.

Additionally, we request a reference list of at least 10 relevant, high-quality sources that focus on success factors for sustainable beauty innovation and international expansion in the Australian market (note: the reference list is not included in the word count).

Our key questions for you are:

• What are the emerging key success factors for sustainable beauty product innovation over the next 3-5 years, specifically for multinational companies launching sustainable sub-brands in the Australian market?

Sub questions:

• How can L’Oréal Singapore leverage its proven Singapore market success (9.6% market share, leadership in color cosmetics and skin care) to achieve a competitive advantage in Australia?
• What are the specific regulatory, technological, and consumer factors unique to Australia that will influence our BioLuxe by L’Oréal product innovation activities?
• What strategic approaches should we adopt to differentiate against established Australian sustainable beauty brands while leveraging L’Oréal’s global innovation resources?

We look forward to your strategic insights and evidence-based recommendations.

Thanks,

Isabella

Question 2: (25 marks)

bottom of your answer.

Second Email

To: Senior.consultant@beautyinnovation.com
Subject: Consumer Research Strategy – Australian Sustainable Beauty Markets From:   isabella.chen@loreal.com

Our BioLuxe by L’Oréal development requires a deep understanding of Australian consumers’ attitudes, behaviors, and unmet needs regarding sustainable beauty products, particularly how they differ from the Singapore consumer insights that drove our current success. We need to design a comprehensive consumer research strategy that will uncover authentic insights for product formulation, positioning, and go-to-market strategy, considering Australia’s diverse demographics, climate variations, and established sustainable beauty competitive landscape.

Key questions:

• How can we design an effective consumer research strategy to identify genuine, differentiated insights about Australian consumers’ sustainable beauty needs and preferences that established competitors haven’t fully addressed?
• What specific research methodologies should we prioritize to uncover impactful insights about Australian clean beauty consumption patterns, and why are these methodologies most appropriate for understanding this sophisticated market?

Please outline a detailed research strategy that considers the realities of conducting consumer research across Australia’s diverse geographic regions, cultural segments, and climate zones. Address how we will evaluate the quality and commercial relevance of insights, particularly regarding sustainability motivations, ingredient transparency expectations, and willingness to pay premium prices for proven environmental benefits.

L’Oréal Singapore has allocated a research budget of up to AUD 350,000 for this critical Australian market research phase, reflecting the strategic importance of this expansion to L’Oréal Group’s Asia-Pacific growth objectives.

We look forward to your expert recommendations on consumer research strategy and methodology.

Thanks,

Isabella

Question 3: (25 marks)

bottom of your answer.

Third Email

To:  Senior.consultant@beautyinnovation.com
Subject: Product Development Strategy – Innovation to Market Launch Excellence

From: isabella.chen@loreal.com

As we adapt L’Oréal’s global innovation capabilities and Singapore market learnings for BioLuxe by L’Oréal development, we need to ensure our product development process efficiently transforms sustainable beauty concepts into market-ready products that exceed Australian consumer expectations while meeting stringent regulatory requirements. Our proven Singapore approach delivered strong results across multiple categories, but Australia presents different TGA regulations, consumer testing standards, sustainability certification requirements, and competitive benchmarking needs that require strategic process adaptation.

Key question:

How can we optimize L’Oréal Singapore’s product development process to efficiently guide BioLuxe by L’Oréal concepts from ideation through regulatory approval, consumer validation, and retail launch while ensuring superior performance, authentic sustainability credentials, and compelling competitive differentiation in the Australian market?

Please outline the specific processes, methodologies, tools, and validation techniques you would recommend for developing and launching BioLuxe by L’Oréal in the competitive Australian sustainable beauty market. Your recommendations should address:

• Regulatory compliance pathways for TGA requirements, organic certification processes, and environmental claims substantiation
• Consumer testing and validation approaches that build credibility with sophisticated Australian sustainable beauty consumers
• Innovation integration strategies that combine L’Oréal’s global R&D capabilities with local Australian botanical ingredients and climate adaptations
• Risk management and iterative development strategies specific to premium sustainable beauty product innovation
• Launch preparation including retail partner requirements, marketing claims validation, and competitive positioning strategies

We look forward to your expert guidance on optimizing our product development process for Australian market success.

Thanks,

Isabella

Question 4: (25 marks)

bottom of your answer.

Fourth Email

To: Senior.consultant@beautyinnovation.com
Subject: Success Measurement Framework – Australian Launch Performance Optimization

From: isabella.chen@loreal.com

Given the strategic importance of BioLuxe by L’Oréal to both L’Oréal Singapore’s growth objectives and L’Oréal Group’s Asia-Pacific expansion strategy, we need a comprehensive performance monitoring system to track launch success and rapidly optimize our approach based on real-world market performance. Our Singapore success metrics focused on market share growth and portfolio performance, but the Australian sustainable beauty launch requires different success measures including brand equity building, sustainability credibility establishment, retail velocity optimization, and competitive positioning against established local players.

Key question:

How should we design and implement an effective post-launch tracking and evaluation system to monitor BioLuxe by L’Oréal’s Australian market entry success, optimize performance across different channels and regions, and guide strategic adjustments to maximize long-term market penetration?

Please propose a detailed monitoring and evaluation framework that outlines:

• What specific metrics and KPIs we should track to measure launch success across brand awareness, retail performance, consumer adoption, sustainability positioning, and competitive market share in the Australian context
• How to collect and analyze this performance data effectively across different retail channels, geographic regions, and consumer segments while maintaining competitive intelligence and L’Oréal Group reporting standards
• What contingency strategies should we prepare if launch performance doesn’t meet expectations, including product formulation adjustments, channel strategy pivots, and marketing approach modifications
• How to adapt our products, positioning, and strategy based on real-world market feedback, retail partner input, and evolving competitive dynamics in Australia’s rapidly growing sustainable beauty segment

Please ensure your framework accounts for the unique characteristics of the Australian sustainable beauty market including regional climate variations, diverse retail environments, established competitive players, and integration with L’Oréal’s global brand architecture and innovation pipeline.

Additionally, please consider how we can demonstrate sustainable competitive advantage and ROI to L’Oréal Group leadership while building foundation for potential expansion to other Asia-Pacific markets including New Zealand and emerging Southeast Asian markets.

We look forward to your strategic recommendations for measuring and optimizing BioLuxe by L’Oréal’s impact in the dynamic Australian sustainable beauty ecosystem.

Thanks,

Isabella