BECAUSE YOU’RE WORTH IT

ARE YOU ?

1907 EUGENE SCHUELLERYoung chemist,who sold his patented hair dyes to local salons.

1957FRANCOIS DALLE

Starting the concept of selling beauty through several channels.

1988LINDSAY OWEN-JONES

Expanded the company into global scale with strategic vision and precise brand management.

1ST Cosmetics company worldwide 27 Global brands 130 Countries 22.5 Billion of euros of sales in 201438Factories5.5Billion units

Brand Portfolios

1.NOW, Review L’Oreal’s brand portfolio.What role have target marketing,smart acquisitions,and R&D played in growing these brands ?

Precise Target Marketing“Each brand is positioned on a very precise segment, which overlaps as little as possible with others “

Targeting dynamic markets

It is targeting developing markets like India,China,Brazil and Russia in order to increase its growth.

NICHE MARKETING

Skin Care Hair Care Perfume Make Up Hair Coloring

Psychographic segmentation

New generation are more willing to spend on luxury goods,Which were earlier considered too expensive.

“L'Oreal developed brands in the low-, mid-, and high-ends which every brand has their own

brand policy.”

SMART ACQUISITIONS

Acquisition

add more

1966USA

CHILE

GERMAN

U N I S A

J A D E

CHINA

2000USA

CHINA

2003

2004

1999Men Product

Top skin-care brand in China

Makeup and skin-care brand

manufacturing plant

Pune, IndiaSecured L’Oreal’s Asia presence

Ethnic hair-care marketers

RESULT … ??

ALL SALE AND NO RESEARCH MAKES A COMPANY DULL ONE !!

3.5% 2.7% 1.7%

2.

Who are L’Oreal’s greatest competitors?Local,global or both?Why?

COMPETITION…

LOCAL

GLOBAL

Strong competitors due to their high market share,competitive pricing and loyal consumer base.

GLOCAL

3.

What has been the key to successful local product launches such as Maybelline’s Wondercurl in Japan?

INNOVATION IN MARKETINGThrough 14 research center around the world , it catersto the local needs of eachmarket.

GEOCOSMETICScreated to understand consumers at local level

Study the beauty trends around the world and deliver the best product for that region.

“People on different continents have their

own specific needs, habits, dreams, and

desires – so one product, or even one

formula, does not fit all”

4.

What’s next for L’Oreal on a global level?If you were CEO,how would you sustain the company’s global leadership?

Glocal … !!

As Gilles weil, explained,” You have to be local and as strong as best locals,but backed by an international image and strategy.”

So it needs to invest more in new developing markets for its sustainable growth.

Joint Ventures

It can increase its profit and market share by explicitly showing its advantages through joint ventures in new markets.

It should launch more organic products for its health and safety consciousness consumers.It should invest in e-commerce sales along with existing retail sales in order to maximize market penetration.

It can capitalize on metrosexual trend.

It should tap into more prospective distribution channels.

Recap :Brand IntroductionTarget marketing :Precise target marketing,Niche marketing.Smart acquisitions : Merging with different small and local companies .R&D: Innovation using technology.Fierce competition : Competition with peer brands.Geocosmetics: Local market preference.Scopes : Being Glocal,Joint ventures,Organic products,e-commerce

sales,Metrosexual trend and more Distribution channels. Credits: images.google.com flicker.com

Disclaimer

Created by Itesh Kumar Panda , NIT Rourkeladuring an internshipby Prof. Sammer Mathur , IIM Lucknow

Thankyou!