INTODUCTION L'Oréal, one of the largest companies in France, is

the world's largest manufacturer of high-quality cosmetics and perfumes, producing such well-known brands as Lancôme, Ambre Solaire, and Cacharel.

Its total sales are 2.4 billion ahead of those of its closest competitor, Unilerver, an more than double those of Revlon and Shiseido.

It boasts a world-wide distribution network as well as the industry's highest research-and-development budget

the largest cosmetological laboratories in the world

L’Oreal Global leader in cosmetics with 5 key

expertise in hair care, hair colour, skin care, make-up and fragrances.

. L’Oréal’s leadership is achieved through cutting-edge technology with a portfolio of well-known brands that answer all beauty needs and are distributed in all channels.

Each brand benefits from considerable investments in research made by the L'Oréal Group

Facts & Stats Public Company Incorporated: 1939 Employees: 27,600 Sales:(USDollar;7.17 billion) Stock Exchange: Paris SICs: 2844 Toilet Preparations; 3353

Aluminum Sheet, Plate & Foil; 2657 Folding Paperboard Boxes; 2099 Food Products

History L'Oréal's story begins in turn-of-the-century

Paris, at a time when women of the demi-monde dyed their hair, their choice restricted to fiery red or coal black. In 1907, Eugène Schueller, a young chemist, began to concoct the first synthetic hair dyes by night in his kitchen and sell them to hair salons in the morning under the brand name Auréole. His strategy was successful; within two years he established the Société Francaise des Teintures Inoffensives pour Cheveux, which soon afterward became L'Oréal.

The 4 phases The company went through four different

era.

1909-1956:initial stage-the model takes shape

1957-1983:On the road to greatness 1984-2000:becoming number one in beauty

industry 2001-20…..cont.:the diversity of beauty

thri=ought out the world

PRODUCT-Casting Crème Gloss: Ammonia free colour with deep conditioners

built deep in Glossy rich, natural-looking colour with visible

shimmering tones Enriched with a patented conditioning complex

which helps protect the hair fibre for voluptuous hair: exceptional softness + glossy shine.

Delicious fragrance in the hair colour Available in 18 shades

Product Excellence crème: Rich creme formula with easy, no-drip

application Luxurious, long-lasting color & superb gray

coverage Patented Auto-Protection Conditioning System Special polymers and conditioning agents

provide gentle care to dry, permed or chemically relaxed hair

Contains pro-keratine Available in 32 shades

Segmentation by loreal Geographic segmentation

Demographic segmentation

Psychographic segmentation

Buying behavior

1.Geographic segmentation: Country Climate

2.Demographic segmentation: Age , Sex. Income. Education.

3.Pschyographic segmentation.

4.Behavioral segmentation.

Targeted market Product specialization

Market specialization

Positioning of the product Value proposition: L’Oreal, thus positioning itself as not just a basic shampoo,

but one that made women beautiful.

This promise of beauty and benefits positioned L’Oreal higher in the market compared to the home brands which positioned themselves as cheap, value-for-money products which only served the most basic of functions of hair cleaning.

High quality L’Oreal products justified their higher price with higher benefits thus positioning them as one of kind.

Category membership

Targeted audience Educated masses having more

disposable income. Housewives looking forward to quality

products. It also targets people from: Lower income group Middle income group Higher income group

Positioning of the products L’Oreal, thus positioning itself as not just a basic

shampoo, but one that made women beautiful.

This promise of beauty and benefits positioned L’Oreal higher in the market compared to the home brands which positioned themselves as cheap, value-for-money products which only served the most basic of functions of hair cleaning.

High quality L’Oreal products justified their higher price with higher benefits thus positioning them as one of kind.

PLACE It is a speciality good and has selective intermediaries It has about 290 subsidiaries, more than 100

distributors off-group and 42 plants, all spread out in about 130 countries

To make its presence feel in different parts of the world L’Oreal has acquired many different companies like “The Body Shop”, which has over 2,000 stores in more than 50 countries.

Several salons use as well as sell l’oreal products L'Oréal currently reaches around 450,000 sites in India,

considerably below the totals of 2m and 3m registered by Hindustan Unilever and ITC, the FMCG firms.

Pricing Strategy L’Oreal is known for it’s strong control of its Price

Strategy which is decided at the Headquarters. Theoretically speaking, L’Oreal is a Giffen good. High end products sold at competitive price distributed

through the mass market retailing channels. Both the products range between Rs.500-Rs.550.

Shiseido Hair Colour for Rs.800/-

L’Oreal Excellence Crème for Rs.550/-

Promotion AIDA In 2002, L’Oreal, India hired hair-dressers

to recreate the looks of customers as a service rendered to them. It now has 2000 saloons across 36 cities.

Promotion through ethical issues. Easily available. Real hair samples on the catalogues. Unique Selling Point: The L’Oreal Group is known for their

continuous innovation in order to improve the quality of their products and the services they have to offer to their consumers.

Promotion L'Oreal backed its product innovations with

the twelfth-largest media budget in the world.

Television Commercials seen mostly in the afternoon.

Attractive subjects and vivid explanation of the product.

Print media advertisements are found in fashion magazines(Vogue India, Elle, etc.), recipe magazines, etc.

Outside home media: Banners outside malls, streets, promotional kiosks.

Tagline:Because you are worth it.

Branding L’Oreal has the benefits of Family Branding.

Association with International Brands like Lancome, Ralph Lauren, Estee Lauder etc.

Brand Extension: First came out Casting Crème followed by Excellence Crème.

The French Connection: L’Oreal, Paris. The packaging(Vibrant, glossy, pleasure to

look at) and price clearly state that it is for the higher middle class and above.

Brand Ambassadors: One of the World's most glamorous women Aishwarya Rai and Penelope Cruz and the expertise of top beauty hair colorist and dermatologist, Christophe Robin.

Promotion and Marketing Strategies of L’Oreal. The company focuses on “go native”

strategy meaning hires local firms in every country to distribute its products.

Secondly, “First landing” strategy that is first commercialization is bad thing if the product is not available in a particular place.

Newspapers and magazines advise L’Oreal products to the readers.

The company follow same marketing mix for the whole world with a little bit variation according to the economic conditions of a certain country.

Suggestions Samples via newspaper. Concentration on the

ethnicity. A younger face. Give free products(sample

pieces) with hair colour. Symbiotic promotion of

movies and L’Oreal: Aisha.

Use models to give samples.