This case describes the challenges faced by the cosmetics division of a large corporation when determining the set of products to develop in 2004. The key players involved are the centralized R&D center and the decentralized brands. The case provides data to estimate the utilization rate of the R and D center.

This case describes the challenges faced by the cosmetics division of a large corporation when determining the set of products to develop in 2004. The key players involved are the centralized R&D center and the decentralized brands. The case provides data to estimate the utilization rate of the R and D center.

Parfums Cacharel, a division of L’Oréal, used to have a dominating position on the European market with both the number one and number two best-selling fragrances: Anaïs Anaïs and Loulou. At the time of the case however, sales were declining at a rate of 15 % per year and Cacharel was a fragrance brand in need of a major revitalization.