1

MINOR PROJECT REPORT

ON

A STUDY ON ADVERTISING STRATEGY OF

L’OREAL INDIA

Supervised by: Submitted by:

Ms. Ruchika Gahlot Nilakshi Garg

Assistant Professor 04221201811

Dept. of Business Administration BBA (B&I) (3rd SEM)

Session- 2011-2014

MAHARAJA SURAJMAL INSTITUTE

Department of Business Administration

Recognized by UGC u/s 2(f)

Affiliated to Guru Gobind Singh Indraprastha University

C-4, Janakpuri, New Delhi

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CERTIFICATE

This is to certify that the research project initiated to certify the “ADVERTISING STRATEGY OF

L’OREAL INDIA” is the innovative effort of “NILAKSHI GARG” ROLL NO-04221201811 and it has

been accomplished under my guidance.

MS. RUCHIKA GAHLOT

ASSISTANT PROFESSOR

(Signature)

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ACKNOWLEDGEMENT

A project can never become a success with efforts of only one individual. It requires a group of people to

complete a project at its best. It may be your friend, your teacher and your family member.

The present work is an effort to throw some light on “ADVERTISING STRATEGY OF L’OREAL

INDIA”. The work would not have been possible to come to the present shape without the able guidance,

supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by

MS. RUCHIKA GAHLOT, ASST. PROFESSOR, DEPT. OF BUSINESS ADMINISTRATION and other

staff members.

I convey my heartfelt thanks to all those people who helped and supported me during the course, for completion

of my Project Report.

NILAKSHI GARG

ENROLL. NO. 04221201811

Course: BBA (B&I) 3rd Sem.

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CONTENT

CHAPTER TOPIC PAGE

NUMBERChapter-1 Introduction

Objectives of study

Research methodology

Limitation of study

1

23

23

24Chapter-2 Profile of seven sister states 26

Chapter-3 Analysis and interpretation of data 63

Chapter-4 Conclusion and recommendations 82

Bibliography 85

Annexure

Questionnaire

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CHAPTER 1introduction

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1.1 INTRODUCTION 1.1.1 History of L’Oreal :

L’Oreal was founded in the year 1909 by Eugene Schueller, a French chemist who developed an innovative hair

color formula. L’Oreal famous advertising slogan is "Because I’m worth it". It has recently been replaced by

"Because you're worth it". India’s contribution to the growth of the global cosmetics market is about 60 percent.

L’Oreal advertising account is handled by Mccann Erickson. The operations in India are conducted through a

judicial mix of global and local methods of advertising to appeal to the Indian consumers.

L’Oreal got its start in the hair-color business, but the company soon branched out into other cleansing and

beauty products. L’Oreal currently markets over 500 brands and many thousands of individual products in all

sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and

fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and

perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail.

1.1.2 ABOUT THE STUDY :

An advertising strategy is a campaign developed to communicate ideas about products and services to potential

consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a

rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition

efforts) and objectives (public image enhancement, market share growth) as well. Most advertising strategies

focus on achieving three general goals:-

1. Promote awareness of a business and its product or services.

2. stimulate sales directly and "attract competitors' customers"

3. Establish or modify a business' image.

In case of L’Oreal, products depend on the respect of Differences. Therefore, it creates and gives you the

represent of L’Oreal by L'Oreal advertisements on T.V. and everywhere you could see. 

L'Oreal products estimate by the professional chemists and researchers. You could resign in its quality. 

It produces the advertisements on 3 main points.

-Age

-Skin

-Hair

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1.2 OBJECTIVES OF THE STUDY:

To study the importance and development Of L’Oreal India in today’s scenario.

To understand the various Advertising Strategies which L’Oreal India has adopted to survive in highly

competitive industry.

To make a comparative study of the major players in Indian Service Provider.

To give Recommendation on the basis of my Knowledge& Study.

1.3 RESEARCH METHODOLOGY

SOURCES OF DATA COLLECTION

The goal of the research process is to produce new knowledge. Research methods are the sources of data

collection i.e from where the information is obtained.( The methodology adopted for this project is exploratory

in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory

research work).

Data collection methods can be broadly classified into

Primary methods

Secondary methods

1. Primary Data–The data is derived from a new or original research study and collected at the source,

e.g. QUESTIONNAIRE, surveys, observation, etc.

2. Secondary Data- Secondary data is the data that have been already collected by and readily available

from other sources.

For this project both primary data & secondary data has been collected.

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1. Primary data is collected in this project by filling questionnaire from 50 individuals targeting different

groups to see the response for L’Oreal.

Questionnaire-questionnaire is a source or a document through which we can know about the need of the

society or interest.

2. Secondary method is collected by:-

internet ,

books ,

magazines or

Journals.

Online advertisement research.

1.4 LIMITTATIONS OF STUDY

The available data may not suit the current purpose of research, due to incompleteness,

generalities and so on.

 

Conflicting data may exist.

It may be difficult to determine the accuracy of secondary data.

The duration of the project work was short enough to allow the full exposure.

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CHAPTER 2 Profile of the organization

PROFILE OF THE ORGANISATION

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2.1 COMPANY PROFILE

In India, L’Oreal brands are present in the following four main categories: 

Consumer Products: L’Oreal Paris, Garnier, Maybelline New York

Luxury Products: Lancôme, Kiehl’s, Ralph Lauren, Giorgio Armani, Diesel

Professional Products: L’Oreal Professional Matrix, Kérastase, Kéraskin Esthetics

Active Cosmetics: Vichy, La Roche Posay, Manufacturing, Plant

L’Oreal , the leading cosmetics manufacturer in the world, arrived in India 15 years ago and has been growing

at about 30% year-on-year in the last decade. It then comes as no surprise that L’Oreal has decided to sharpen

its focus on the Indian consumer. L’Oreal’s sixth R&D center worldwide is expected to start operations in

Mumbai, India by the end of this year. What’s more, almost 70% of the launches from the new facility shall be

designed and developed for the Indian market. LOreal shall have to face stiff competition from Procter &

Gamble and Unilever , which have been present in India for much longer and have customized their product

offering considerably to match the Indian consumer’s tastes and spending power.

Reports value L’Oreal with a $23.27 stock price estimate, roughly at parity with its current market price.

In addition to the head office in Mumbai and regional offices in New Delhi, Bangalore, Chennai & Kolkata, and

L’Oreal India also operates a manufacturing plant and distribution centre located in Chakan, Pune. Set up in

2004, this factory has been awarded the international certifications of ISO 14001, ISO 9001-2000 And

OHSAS. The Chakan plant specializes in the manufacture of hair-colour, hair care and skin care products,

producing 190 million units under the strictest of standards.

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2.1.1 EthicsL'ORÉAL has been built around fundamental values which have guided us throughout the life of our company,

and continue to do so today. Our values have shaped our culture, and they under pin our reputation.

Jean-Paul AGON, Chairman & Chief Executive Officer

At L’ORÉAL, we believe that everyone aspires to beauty. Our mission is to help men and women around

the world realize that aspiration, and express their individual personalities to the full. This is what gives

meaning and value to our business, and to the working lives of our employees. We are proud of our

work. 

L’Oreal Spirit

As A Business

Our strategy for leadership is based on continuous investment in rigorous scientific research and development.

This enables our brands to deliver products which are innovative, highly effective, practical and pleasant to use,

and which are manufactured to the most demanding standards of quality and safety. We aim for excellence, and

constantly challenge ourselves and our methods. We place great value on honesty and clarity: our consumer

advertising is based on proven performance and scientific data. We are committed to building strong and lasting

relationships with our customers and our suppliers, founded on trust and mutual benefit. We do business with

integrity: we respect the laws of the countries in which we operate and adhere to good corporate governance

practices. We maintain high standards in accounting and reporting, and support the fight against corruption. We

deliver long-term, sustained shareholder value by protecting and making the most effective use of company

assets.

As An Employer

We aim to make L’ORÉAL a great place in which to work. We know that our employees are our greatest assets.

They are entitled to a safe and healthy working environment: one in which personal talent and merit are

recognized, diversity is valued, privacy is respected, and the balance between professional and personal life is

taken into account. We believe in offering our employees a stimulating environment, exciting personal

opportunities and a chance to make a difference. We encourage an atmosphere of openness, courage, generosity

and respect, so that all our employees feel free to come forward with their questions, ideas and concerns.

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As A Responsible Corporate Citizen

We play our part in creating a world of beauty and fairness. We are mindful of our impact on the natural

environment, including biodiversity, and constantly seek to reduce it: we are determined to avoid compromising

tomorrow for the sake of today. We make a positive contribution to the countries and communities in which we

are present, and respect local cultures and sensitivities. We are committed to the respect of human rights. We

want to help end the exploitation of children in the workplace and the use of forced labour. We want an end to

animal testing in our industry, and we contribute to the development and acceptance of alternative methods. We

actively seek out and favor business partners who share our values and our ethical commitments.

This is the spirit in which we operate: the L’ORÉAL SPIRIT.

Ethics as a Business

Our strategy for leadership is based on continuous investment in rigorous scientific research and development.

This enables our brands to deliver products which are innovative, highly effective, practical and pleasant to use,

and which are manufactured to the most demanding standards of quality and safety. We aim for excellence, and

constantly challenge ourselves and our methods. We place great value on honesty and clarity: our consumer

advertising is based on proven performance and scientific data. We are committed to building strong and lasting

relationships with our customers and our suppliers, founded on trust and mutual benefit. We do business with

integrity: we respect the laws of the countries in which we operate and adhere to good corporate governance

practices. We maintain high standards in accounting and reporting, and support the fight against corruption. We

deliver long-term, sustained shareholder value by protecting and making the most effective use of company

assets.

L’ORÉAL has always had strong values which have shaped our culture and built our reputation. Our core

values are integrity, respect and excellence. We are judged not only on what we do but also on the way we do it.

All that we have done and all we continue to do is voluntary and proactive. Ethics gives us a shared vision and

references.

Quite simply, we believe that the global leaders of tomorrow are those companies who have not only integrated

ethics into their strategic planning but also into their day-to-day business practices.

At L’ORÉAL, we consider that ethics continues where rules end and that we should always ask ourselves not

“can we do it” but “should we do it”. Ethics therefore allows us to earn and retain the trust of our stakeholders

so that together we can grow and contribute usefully to the society in which we live.

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Our values are present in all aspects of our activities. The most visible examples are of course our strong

Sustainable Development and Diversity policies but they are also integrated into less visible aspects such as our

Purchasing Department’s responsible sourcing policy and our high standards with regards product quality and

safety.

Our Policies

Ambition

• Reflect our consumers’ diversity of origins within our teams at every level (in terms of nationality, ethnic

or social origin, age...), while maintaining our standards of excellence in terms of competencies.

• Promote gender equity within our teams: promote the access of women to positions of responsibility,

facilitate gender equity in functions that are currently over-staffed by men or women (Marketing, Industry), and

ensure equal treatment in terms of salary.

• Encourage the employment people with disabilities.

• Valorize work experience in anticipation of a longer work life.

• Develop an inclusive managerial culture, respectful of all.

Our Diversities Matrix

L’Oreal based its approach on a Diversities Matrix, composed of 6 priority dimensions and 7 action levers:

2.2.1 PRIORITY DIMENSIONS

1. Nationality

2. Ethnic & Cultural Background

3. Social Promotion

4. Gender

5. Disability

6. Age

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2.2.2 ACTION LEVERS

1. Recruitment & Integration

2. Training

3. Career Management

4. Management & Inclusion

These dimensions and action levers are enhanced by:

Actions on the Ecosystem

Policy & Steering

Principles of Action

• Respect our standards of excellence in terms of competencies and individual performance.

• Attract candidates from outside our usual talent sources and identify profiles that will bring new

perspectives.

• Promote the emergence of a diversified ecosystem by inviting partners (suppliers, clients) to join our

actions, and by participating in innovative collective initiatives.

• Measure and report our progress.

Our commitments

L'Oreal Diversity initiatives have been recognized by international awards:

• 2004: The Diversity Best Practices Global Leadership Award

• 2005: The Anti-Defamation League's International Leadership Award

• 2006: The Diversity Leadership Council's Diversity Innovation Award World

• 2007: L’Oreal ranked as one of the “world’s most ethical companies” according to Ethisphere magazine

• 2009: Pace Leadership in Ethics Award presented to Jean-Paul Agon

• 2010: L’Oreal headquarters obtains the Diversity Label

Message from the Chief Executive Officer of L’Oreal

Jean-Paul Agon, Chief Executive Officer

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"Today we live and work in an increasingly diverse world, a world of individuals with different cultural and

ethnic backgrounds, unique styles, perspectives, values and beliefs. A diverse workforce in all functions and

levels enhances our creativity and our understanding of consumers and allows us to develop and market

products that are relevant."

Jean-Paul Agon

Chief Executive Officer

2.3 PRODUCTS

2.3.1 Garnier (Consumer Product)

We believe health will be the major concern of this century, and that maintaining a healthy body and mind is

the key to enjoying a long and beautiful life.

We believe good health is the key to releasing natural beauty.

We believe our role is to offer solutions which improve the beauty and health of skin and hair. And with

wellness comes a sense of well-being. After all beauty should be a pleasure, not a duty.

We believe only the power of technology can release the true power of nature. That’s why, at every

opportunity, we use active natural ingredients. Using cutting edge technologies such as Bio-screening and

advanced extraction techniques, our scientists are constantly working to identify, extract and test the most

effective ingredients in nature so everyone can enjoy their proven benefits – and see real, visible results.

We believe in a modern approach to beauty, whose essence is positivity, simplicity and radiance. Our approach

is forward-thinking, with a sense of optimism for the future, because we believe everyone should be able to look

good and feel good about themselves.

With Garnier, everyone's invited - and nobody's excluded.

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2.3.2 L’Oreal Professional (Professional Product)

All Different: Each Unique 

L’Oreal Professional works in partnership with L’Oreal Professional salons to help hairdressers to dream excel

and succeed. Dream Hair is the fashion accessory of today, worn everyday to reflect the personality of the

individual, as important to the total look as any item (element) of catwalk clothing. Everything we do reflects

this passionate interpretation - from our inspirational live shows, our partnership with Central Saint Martins

College of Art & Design, to our seasonal colour collections. With L’Oreal Professional you'll be inspired to take

fashion to your heart and create beautiful hair. Excel L’Oreal Professionnel combines our passion for fashion

with cutting edge technology, to bring you a portfolio of high performance products that meet your needs,

allowing you and your hairdresser to push creativity and achieve outstanding results. 

Succeed L’Oreal Professionnel is the business and creative partner of over 1 million of the world's most

dynamic hairdressers. L’Oreal Professionnel partners are growing faster than the total salon market. Be part of

this success. For example:-

L'Oréal Professionnel Série Expert Liss Ultime Shampoo (250ml)

For super smooth, luscious locks bursting with vitality and lustre, L’Oréal Professionnel série expert Liss

Ultime Shampoo is the only solution. It is the ultimate shampoo for frizzy, rebellious hair. This product replaces

Liss Extreme Shampoo.

L’Oréal Professionnel série expert Liss Ultime Shampoo is formulated with Oil Incell technology, which

cleverly mimics the hair’s lost ceramides. This combined with the addition of highly nourishing argan and olive

oils means that this shampoo leaves hair smoothed, conditioned and gleaming with health.

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2.3.3 LUXURY PRODUCTS

Ralph & Lauren

"I'm Interested In Longevity, Timelessness, Style - Not Fashion."

Ralph Lauren

Since he first introduced the Polo brand as a line of men's ties in 1967, Ralph Lauren has come to represent

timeless, authentic style. His vision is not to create fashion, but to create a world of living that transcends

trends. In 1978, Ralph Lauren launched into the world of fragrance with his signature brands, Polo for men and

Lauren for women featuring the icon polo player design. Since, he has developed new fragrances that touch on

different emotions and ways of living, including:

Safari (men & women): sophisticated world of elegance and adventure

Polo Sport (men & women): a world of sporting excellence and physical well being

Romance (men & women): a celebration of timeless feeling of falling in love

Ralph & Ralph (women): fun, colorful expression of a younger generation

Polo Blue (men) & Ralph Lauren Blue (women): reinventing a modern expression of casual elegance

Lauren Style (women): the newest, embodies classic and timeless style

Diesel

Fuel for Life the Concept "Are you alive?" 

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It fuels you on to push boundaries you never dreamed of reaching and go beyond to attain a state of happiness

that you never knew existed.

A fresh top note of grapefruit and anise adds a zing to the first spritz of fragrance. The heart notes reflect

luscious raspberry and light lavender which lead you into fruity fantasies while sitting subtly on a base of heavy

heliotrope which is distinctive.

This aromatic fougere from Diesel is enclosed in a simple yet elegant bottle layered with classy leather that

brings out all earthy life of the exquisite fragrance.

More than a fragrance, Fuel for Life is an elixir, a pure concentrate of emotions that makes you feel alive. A

sexy and energizing potion for men and women with "retro-modern" notes embodying the essence of

Diesel... Fuel for Life, capturing Diesel's creativity and unpredictability, is a source of adrenalin, for people

willing to experience new emotions and seeking an alternative type of energy! It is dedicated to passionate

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individuals, who have chosen to live life to the fullest, hungry for intense moments, seduction and sensuality,

knowing no limits. But be careful this elixir is incredibly active and powerful use it with caution!

2.3.4 The FRAGRANCES

The men's and women's versions of Fuel for Life are two timeless archetypal perfumes. 

To achieve this, Renzo Rosso and the FIRMENICH perfumers (Annick Mnardo, Jacque Cavallier and Thierry

Wasser) chose to position the two fragrances in the scent families most emblematic of femininity and virility:

chypre and heather. This resulted in two retro-modern perfumes, a mix between traditional perfumery and a

futuristic outlook Fuel for Life: a potion to energize, an elixir fuelling lust for life, a secret for successful living.

Fuel for Life, feminine 

Fuel for Life couldn't have been anything else but a chypre. This family of perfumes drawn from the legacy of

femaleness is also the most ambivalent, the most sensual and above all the least romantic: always between

flower and wood, it swings between sky and earth, between spirit and flesh. The structure of Fuel for Life

clearly echoes this ambivalence: the duality of jasmine and patchouli is immediately apparent. In other words, it

oscillates between the white flower - supposedly virginal - and the wooded and ambered complexity of that

Indonesian leaf - patchouli -whose fragrance always brings to mind undergrowth and languor. 

What stands out is an overdose, an unexpected portion of cassis: a combination of basic blackcurrant - a nature-

print of Burgundy crme de cassis - and of blackcurrant flower, animal and sharp. The chypre attracts the fruit.

Above all, the surprise arises from the fact that all these notes seem to converge on to the indole, which is this

fragrance's centre of gravity. It is here that dwell its life forces, its sensuality, its drive: in this savage and carnal

expression which, as you dilute it, takes on the accents of an intoxicating flower and a distinctive sensuous

brilliance. Through its characteristic counterpoint, Fuel for Life becomes a masterpiece of tensions. 

Fuel for Life, masculine 

Threading the heart of the fragrance, Fuel for Life's heather chord reflects the most ancient and most classical

codes of masculine perfumery: lavender on a base of coumarine, a note without which heather is only lost

illusion. Yet Fuel for Life cannot be reduced to the tradition of its family of scents, because much more than its

ingredients, it is a suggestion of light that strikes the nose as it does the imagination. Probably never before has

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the male being treated with such attention to clarity and modernity. In the same way, it's not just a list of

primary substances - a better word would be vibrations. A first vibration, aromatic and cool, created by a subtle

dose of star anis, gives it a polished brilliance, which irradiates the fragrance without a hint of roughness. The

second vibration is that of frambinone: very close to white musk, a trifle understated at first encounter, but

which comes alive on contact with the skin and gives Fuel for Life a fruitiness that once again is unprecedented

in a male eau de toilette. An impression reinforced by the irresistible lightness of heliotropine. A complete

opposite, close to contradiction with the second, a third woody and ambered vibration suggests a more assertive

virility: clear, multifaceted but fundamentally sensual...and natural, thanks to the everlasting flower. 

For example:-

L'Oreal Safari Men

Safari Cologne by Ralph Lauren, Launched by the design house of ralph lauren in 1992, safari is classified as a

refreshing, spicy, lavender, amber fragrance. This masculine scent possesses a blend of lemon, lavender,

leather, cinnamon, oakmoss and sandalwood. It is recommended for daytime wear.

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The Bottle

The simplest idea of a bottle becomes a cult object: a sexy and vintage style which belongs to the heritage of

Diesel. Two bottles which you can dress, undress, keep nude. Do as you will! 

Designed by Fabien Baron, the men's bottle takes inspiration from a liquor flask and the women's bottle from a

1930s phial. Showing or maybe concealing the alchemy they contain, the women's bottle is covered with a pale

ruffle of lace that plays with the transparencies of the bottle and the liquid it contains, while the men's bottle

comes in a canvas cover with vintage treatment, which can be unzipped at the bottle's shoulder.  The sexy

vintage packaging of Fuel for Life is wild and sensual, thanks to the random decoration of the canvas and

lacework, and the possibility to have 5 differently engraved caps. Each bottle becomes a unique work of art, an

experience in itself.

Following its global strategy of bringing the “country-of-origin” formula to new markets, L’Oreal came to India

with GARNIER range of products from the low-end brand of their international portfolio. GARNIER became a

wholly owned subsidiary in 1994

.

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L’Oreal entered India with Excellence crème in 1996, the first brand signed as L’Oreal Paris.

Transiting from the “Consumer Product” segment to their “Professional Products” range, L’Oreal set up the

Professional Product division in 1997. This division required a different handling and L’Oreal set two

development centers in New Delhi and Mumbai to train the salon owners and professional hairdressers. This

also marked the entry of Majirel Hair Color in India.

L’Oreal in India was looking at widening their portfolio along with deepening the product lines. In 2002, a

significant development was the launch of VICHY that marked the introduction of “Active Cosmetics

Department”. This is a very niche, premium product from L’Oreal. In fact, over the three years of its presence

its coverage is just 80 chemists all over India.

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ADVERTISING STRATEGIES:-

L’Oreal woos aam aadmi with dual pricing strategy:-

Drops prices for hair care range

MUMBAI, JULY 2: 

L’Oreal India is adopting a dual pricing strategy for the Indian market. The French multinational has

decided to make its hair care range under L’Oreal more affordable, bringing it under the ‘masstige’

segment. At the same time, it has retained its premium positioning in the color cosmetics and skincare

segment.

It has also introduced sachets for its shampoos and conditioners with the hope of taking its distribution

into the hinterland.

Mr Satyaki Ghosh, Director, Consumer Products Division, L’Oreal, told Business Line, “We have a dual

positioning in India. In hair care, we are changing from super premium to the masstige segment and moving to

the centre of the market. However, we will continue a premium positioning in the skin care and cosmetics

segment.”

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L’Oreal took its first big price drop (25 per cent) for its hair care range after it started manufacturing

shampoos in India in 2010. Recently, it took another price cut of four per cent to peg its 100 ml

shampoos at Rs 69.

1. “We have not gone mass with our shampoos but continue to remain in the prestige segment but closer to

the mass market,” explains Mr Ghosh.

The MNC believes that it can afford to have a dual positioning strategy with L’Oreal as its other brands such as

Garnier and Maybelline (with overlapping categories in hair care, skincare and cosmetics) can fill the gap with

their lesser priced offerings while it continues to have premium pricing in certain categories.

PREMIUM IMAGE

At the same time, L’Oreal does not want to erode its premium image in shampoos at one go and has kept

its pricing a tad higher than its nearest competitors.

So while L’Oreal Paris shampoos are priced at Rs 69 for 100ml, while Pantene is at Rs 59 and HUL’s

Dove at Rs 64.

“We are not mass and still at a slight premium than our nearest competitors for L’Oreal Paris

shampoos,” adds Mr Ghosh.

Currently, L’Oreal is the third largest player in shampoos after HUL and P&G.

Moreover, L’Oreal reaches out to 2,300 towns and covers seven lakh outlets.

“We expect to go deeper into India with our sachets and reach out to an additional 2,000 more towns,’’

says Mr Ghosh.

L’Oreal India, the Indian subsidiary, was set up in 1994 and is today growing at a 30 per cent CAGR.

FUTURE PLANS:-

L'Oreal to invest Rs500cr in India for more factories, labs

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1. L'Oreal plans to invest Rs500cr to open more factories, laboratories and an innovation centre in

India, wanting it to be one of its top six markets in the world by the end of this decade, a top official

said.

2.  L'Oreal India targets €1bil (Rs6,300cr) from its business in the next few years, up from Rs1,000cr in

calendar 2010.

3.  The company wants to compensate for its late-mover disadvantage by flooding retail shelves with

global products as well as brands developed locally.

4.  In sales, HUL is twenty times bigger than L'Oreal, while Procter & Gamble is double its size.

L'Oreal finds India worth it

1. L’Oreal India feels with almost 70 per cent locally designed and developed products it highlights

just how important the Indian market is. The balance 30 per cent will be products from the

international stable.

2. Jacques Challes, MD, argues that the Indian units of P&G and Unilever have been around longer

than L’Oreal. In fact, L’Oreal that came to India 15 years ago had a compounded annual growth rate

(CAGR) in the last decade of about 30 per cent.

3. The brand intends to maintain this pace of growth and in the next 10 years it should be amongst the

top five in the L’Oreal universe.

SOME OF THE ADVERTISEMENTS:-

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PRODUCTS OF L’Oreal India

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outlet of l’oreal

fjhf

As cheap as near rs. 300

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Some few examples of fragrance products.

Skincare products ( as cheap as near rs 400 with heavy discounts )

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Haircare products:- minimum price near rs 475.

Minimum prices near about rs 500.

Brand confusion Positioning in the myriad brands

Presence remains underdeveloped in emerging markets.

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SWOT ANALYSIS

Brand image—World No.1 Research & development-586 patents Innovation on IN products Range of portfolio—diversity of products Global brand—presence in 130 countries Strong Corporate Social Responsibility policy

Strengths

Emerging markets of developing countries

Growing cosmetic and grooming market

Newer acquisitions—more range of products

OpportunitiesWeakness

New channels on the electronic media Local players in the new market

expansions Brand cannibalization

Threats

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CHAPTER 3

Analysis & interpretation of data

ANALYSIS AND INTERPRETATION OF DATA

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3.1 Data Analysis

Question1: TOTAL NUMBER OF WORKING AND NON WORKING RESPONDENTS.

(A) Working

(B) Non working

43

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Figure 1

workingnon working

Interpretation:

The above pie diagram indicates that out of the total 100 respondents surveyed, 43% are working and the

remaining 57% are not working and are mostly students.

Question2: GARNIER USAGE AMOUNG WORKING RESPONDENTS

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(A)Use

(B) Don’t use

70

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FIGURE 2

USEDON'T USE

Interpretation:

Out of the total 43 working respondents surveyed, only 30% of them don’t use any of the L’oreal product, the

remaining 70% of the working respondents use L’oreal products. This indicates that the brand is popular

amongst the working people. The respondents so surveyed were well aware about the brand and were also

aware about almost all the product lines being offered by L’oreal, be it in skin care or hair care. This result

indicates that L’oreal has a well defined target market catering mainly to upper middle class consumers which is

mainly why the working respondents are frequent users of different products of L’oreal.

34

Question3: L’OREAL USAGE AMONG NON WORKING RESPONDENTS

(A) Use

(B)Don’t use

84

16

Figure 3

DON'T USEUSE

INTERPRETATION:

Out of the 57 non working respondents surveyed, about 84% of the respondents use Loreal products which

means about 47 out of 57 people use Loreal products and 16 % of the respondents don’t use any of the Loreal

products. This again indicates that the brand is popular among even the non working respondents who are

majorly student in our survey.

The inference that can be drawn from the above 2 pie charts is that irrespective of whether the consumers are

working or are students, the brand has the good popularity. This means that the brand has successfully caters to

the needs of the youth as well as the falling in the age bracket of 35 to 55.

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Question 4: PREFERENCE FOR HAIR CARE AMONG WORKING RESPONDENTS

(A) Skin care

(B) Hair care

(C) Both

418

78

Figure 4

SKIN CAREHAIR CAREBOTH

INTERPRETATION:

Out of the 43 people who are working, about 29 of them use Loreal product and out of these 29 people, only 4%

of the respondents use only skin care products and 18% of them use only hair care products while a major

chunk of 78% of the respondents use both skin care and hair care products of Loreal .This indicates that the

customer are regular and loyal users of almost all the product lines of Loreal.

36

Question5: PREFERENCES OF HAIR CARE PRODUCTS AMONG NO WORKING RESPONDENTS.

(A) Skin care

(B) Hair care

(C) Both

28

29

43

Figure 5

1st QtrHAIR CAREBOTH

INTERPRETATION:

Out of the 57 people who are non working, about 36 of them use L’oreal product and out of these 36 people,

only 28% of the respondents use only skin care products and 29% of them use only hair care products while a

major chunk of 43% of them use both skin care and hair care product of L’oreal. This again indicates that

majority of people like both the segment of L’oreal built unlike the working consumers the non working

consumers prefer L’oreal skin care product over its hair care products.

37

Question: 6 USAGE FREQUENCY AMONG WORKING RESPONDENTS

(A) Fortnightly

(B) Monthly

(C) Quarterly

9

69

22

Figure 6

FORTNIGHTLYMONTHLYQUARTERLY

Interpretation:

Out of the 29 people using Loreal products,9%of the respondents purchase Loreal products fortnightly,69%of

the respondents purchasethe product on a minthly basis and 22% of them purchase products quarterly. This

indicates that a majority of respondents are frequent users of Loreal products. This also indicates that a majority

or there is easy availability of Loreal products at almost all retail outlets.

38

Question7: USAGE FREQUENCY AMONG NON WORKING RESPONDENTS

(A) Fortnightly

(B) Monthly

(C) Quarterly

(D) Weekly

58

33

6

figure :7

fortnightlymonthlyquarterlyweekly

Interpretation:

Out of the 36 respondents who use L’oreal products, only 3%puchase the products fortnightly, about 6%

purchase the products weekly,33% of them purchase the products quarterly and a majority of 58 % of the

customers purchase the products on a monthly basis. The result of this data is very much similar to that of the

working respondents.

This indicates that the buying pattern of customers is more or less the same irrespective or their occupation.

39

Question8: REASONS FOR NOT USING LOREAL PRODUCTS

(A) Price

(B) Not effective

(C) Happy with current brand

(D) Availability

(E) Unawareness

4.18

14.64

3.14 1.4

Figure:8

pricenot effective happy with current brand availabilityunawareness

Interpretation:

Out of the 22 respondents who do not use the L’oreal products,14 people(64%) are happy with their brand and

have not tried L’oreal product yet, rest 4 people (18%) do not find L’oreal products effective, the other 3

people(14%) finds the price of the L’oreal products as the main reason for not using it. Thus if L’oreal needs to

make the customers use their products for once and be able to stand on their expectations.

40

Question 9: HOW DO YOU KNOW ABOUT LOREAL INDIA

(A) TV

(B) Newspaper/Magazines

(C) Word of mouth

(D) Internet

74

21

24 7

FIGURE 9

TVNEWSPAPER/MAGAZINEWORD OF MOUTHINTERNET

INTERPRETATION:

Out of the 100 people surveyed, 77 answered that they use L’oreal products. We gathered information through

our survey that how a respondent came to know about L’oreal products. 74 respondents answered that they

came to know about L’oreal product through television, 21 buy newspaper and magazine, 20 by word of mouth

& 7 through internet. This data suggest that TV is the most popular source of information and awareness

regarding L’oreal products.

41

Question 10: PURPOSE OF USING LOREAL PRODUCTS:

(A) Cosmetic use

(B) Medical use

97%

3%

FIGURE 10

COSMETIC USEMEDICAL USE

INTERPRETATION:

Out of the 100 people surveyed , 77 people use L’oreal products. Out of these 77 people only 2 answered that

they use product for medical purpose, while a majority of 75 people answered that they use the product for

cosmetic purpose. Therefore those people who use L’oreal products, 97% use them for cosmetic purpose while

very small percentage of 3% uses it for medical purpose. It is very clear from this data that people prefer

L’oreal products for cosmetic use only.

42

CHAPTER 4

Conclusion & recommendation

FINDINGS

43

India still insignificant within L’Oreal

1. India still contributes less than 1% of L’Oreal’s overall global sales of around $25 billion.

2. Even a sustained growth, at historical rates of close to 30%, presents negligible upside to L’Oreal’s

stock.

Premium Nature of L’Oreal Cosmetics1. L’Oreal cosmetics carry a premium image and price tag, which still have limited traction in India.

2. L’Oreal’s portfolio in India does not only need customization, as is being targeted through the

upcoming R&D center, but it also needs high volume manufacturing and an extensive distribution

network across the vast landscape.

So What Does L’Oreal’s Increased Focus on India Mean?1. While L’Oreal setting up an R&D center in India leverages the expertise of the qualified local staff,

it is also an attempt to achieve more cost-effective R&D spending, given the relatively lower cost of

labor and manufacturing in India

CONCLUSIONS AND RECOMMENDATIONS

1. CONCLUSIONS:- The project discusses about the concept of advertising and its related factors and a brief summary on

L’Oreal India.

Advertising means to gain attention of people towards something. It is thus a mass communicating tool.

The advertising objectives can be classified into three categories as informative, persuasive and

reminder advertising.

1. Informative advertising is concerned with introduction of a new product category.

2. Persuasive with changes in the market conditions mainly when the competition increases in the

market.

3. Reminder advertising is concerned with mature products.

One has to develop advertising strategies to prevail in the market. Advertising strategy consists of two

major elements: creating advertising messages and selecting advertising media. The first step in creating

effective advertising messages is to plan a message strategy-to to decide what general message will be

44

communicated to consumers. Message strategy tends to be plain, straight forward outlines of benefits

and positioning points that the advertiser wants to stress.

The L’Oreal is a big brand in today’s century.

It manufactures four kinds of categories like active cosmetics, consumer products, professional products

and luxury products.

It has won many international awards. The CEO of the company is Jean-Paul Agon who has put forward

his best efforts. L’Oreal purchasing is organized per "Domain" for which each of them has a dedicated

contact network.

Companies need to be very strategic in presenting the product and its features to attract another

segment.

At the same time, companies need to be sensitive about the impact of targeting other segments on the

existing target segment.

L’Oreal has been very active and upfront in adopting new promotional techniques to market its products.

The company follows a very popular technique to advertise and market its products that is the Viral

Marketing policy.

Viral marketing is a term coined to define the productive ways a marketing message is made available.

L’Oreal has got the best packaging award also because of its advertising strategies.

L’Oreal has approached big film stars like Aishwarya Rai, John Abraham and Sonam Kapoor which has

resulted out in more sales and more profits.

But still it should adopt some changes in their strategies according to me. They should also focus on low

class groups prevailing in the society; should put some natural ingredients in their products so as to

avoid side effects, should participate in fashion events also.

On the conclusion part I would like to say L’Oreal’s core business is people’s well being and their ambitions go

far beyond financial performance. The Group has confirmed its determination to link economic growth with

strong ethical principles and a real awareness of its responsibilities to the community.

2. SUGGESTION

45

L’Oreal should more actively participate in fashion events as it will increase the Market presence of the

brand.

L’Oreal focuses more on Word of mouth publicity and it believes in Viral Marketing, hence it should

focus more on making the consumers use the product for the first time. If a consumer uses the product,

there is a high probability of them using it again.

L’Oreal should focus more on including natural products in their product portfolio. We have Garnier in

the list which uses natural ingredients; however we can include other brands too. We can still put

Maybelline in the premium color cosmetic segment but we can use the natural ingredients in place.

People today are more concerned about the quality of the product apart from that they are also

concerned about the effects and side effect of the same; hence L’Oreal should take this into

consideration.

L’Oreal’s target customers are middle class and educated people (mostly working and youngsters).

L’Oreal has already captured most of the market where they can tap their target audience; however

once where they can approach is would be the corporate offices. They can put up a stall of L’Oreal in

the office premises of different corporate, allowing the employees to check new products and buy the

one they want to.

Different age groups being targeted:-

46

BIBLIOGRAPHY

47

1. Kotler, P., Armstrong, G., Agnihotri, P. Y. & Haq, E. U. (2010) “Principles of Marketing”

13th edition, Dorling Kindersley (India) Pvt.Ltd, pp. 376-563

2. http://www.loreal.co.in/_hi/_in/html/our-company/L-Oreal-India-at-a-glance.aspx

on 20.07.2012

3. http://www.loreal.co.in/_hi/_in/HTML/our-company/ethics.aspx

4. http://www.slideshare.net/ibzmir/loreal-marketing-strategy

5. http://www.articlesbase.com/advertising-articles/the-stages-of-developing-advertising

strategies-733709.html

6. http://www.loreal.co.in/_hi/_in/index.aspx

7. http://www.loreal.com/_en/_ww/index.aspx

8. http://www.loreal-finance.com/eng/key-figures

9. GOOGLE

10.WIKIPEDIA

11.WWW.LOREAL INDIA

48

12.Kotler, P., Armstrong, G., Agnihotri, P. Y. & Haq, E. U. (2010) “Principles of Marketing”

13th edition, Dorling Kindersley (India) Pvt.Ltd, pp. 376-563

13.http://www.loreal.co.in/_hi/_in/html/our-company/L-Oreal-India-at-a-glance.aspx

on 20.07.2012

14.http://www.loreal.co.in/_hi/_in/HTML/our-company/ethics.aspx on 20.7.2012

15.http://www.slideshare.net/ibzmir/loreal-marketing-strategy on 25.07.2012

16.http://www.articlesbase.com/advertising-articles/the-stages-of-developing-advertising

strategies-733709.html on 25.07.2012

17. http://www.loreal.co.in/_hi/_in/index.aspx on 25.08.2012

18.http://www.loreal.com/_en/_ww/index.aspx on 25.08.2012

19.http://www.loreal-finance.com/eng/key-figures on 25.8.2012

20.http://www.loreal.com/_en/_ww/index.aspx?

direct1=00006&direct2=00006/00002&direct3=00006/00002/00003&direct4=htt

p://www.lorealfinance.com/v9/us/contenu/communique_finance.aspid_page=724

on 26.08.2012

21.http://www.mbaknol.com/management-case-studies/case-study-loreals-

promotional-strategies-in-indian-cosmetics-market-for-garnier/ on 05.09.2012

22.http://inen.strawberrynet.com/makeup/loreal/?

gclid=CIuI8fC426UCFUQa6wod_D9FzQ on 05.09.2012

49

23.http://www.strategy4u.com/resource_library/strategytips/articles/

20030310.13.shtml on 15.09.2012

24.http://www.enotes.com/advertising-strategy-reference/advertising-strategy on

2.10.2012

25.http://ckkcooly.blogspot.in/2010/07/promotion-strategy-example-of.html

On 15.10.2012

26.http://www.trefis.com/stock/lrlcy/articles/59378/l%E2%80%99oreal-sharpens-focus-

on-india/2011-05-26 on 15.10.2012

27. http://www.thehindubusinessline.com/industry-and-economy/marketing/

article3595101.ece on 15.10.2012

28. http://www.newsvision.in/DetailsNews.aspx?id=1778&&%20Retail

29. http://www.fashionunited.in/news/apparel/loreal-finds-india-worth-it-030520111976

50

ANNEXURE

QUESTIONNAIRE

Please tick (√) at the appropriate box.

Question 1: WORKING OR NON WORKING RESPONDENTS:

(A) Working

(B) Non working

Question 2: GARNIER USAGE AMOUNG WORKING RESPONDENTS:

(A) Use

(B) Don’t use

Question 3: L’OREAL USAGE AMONG NON WORKING RESPONDENTS:

(A)Use

(B)Don’t use

51

Question 4: PREFERENCE FOR HAIR CARE AMONG WORKING RESPONDENTS:

(A) Skin care

(B)Hair care

(C)Both

Question 5: PREFERENCES OF HAIR CARE PRODUCTS AMONG NO WORKING

RESPONDENTS:

(A)Skin care

(B)Hair care

(C)Both

Question6: USAGE FREQUENCY AMONG WORKING RESPONDENTS:

(A)Fortnightly

(B)Monthly

(C)Quarterly

52

Question7: USAGE FREQUENCY AMONG NON WORKING RESPONDENTS

(A)Fortnightly

(B)Monthly

(C)Quarterly

(D)Weekly

Question 8: REASONS FOR NOT USING LOREAL PRODUCTS:

(A)Price

(B)Not effective

(C)Happy with current brand

(D)Availability

(E)Unawareness

Question 9: HOW DO YOU KNOW ABOUT LOREAL INDIA:

(A)TV

(B)Newspaper/Magazines

(C)Word of mouth

(D)Internet

53

Question 10: PURPOSE OF USING LOREAL PRODUCTS:

(A)Cosmetic use

(B)Medical use