L ' Oreal : The World 's Largest Cosmetics And Beauty Company

2695 Words11 Pages
Brand/Organisation: L’Oréal
Student Name: Kerry Lynne Thompson
Student Number: 130285308
Module Code: MKT1002
Degree Programme: BA Hons Marketing and Management
Introduction to L’Oréal.

L 'Oréal is the world 's largest cosmetics and beauty company and has been the market leader since 2001. They market 18 brands and are divided into four categories - consumer products, professional products, luxury products, active cosmetics. They operate in many varied distribution circuits in over 130 countries (L’Oréal, n.d).

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The External Marketing Environment in which L’Oréal Operates In.

Political

A political challenge for L 'Oréal is the requirement to conform to different government leadership styles in the various countries they operate within. They faced a decline in dermatology from its Galderma brand due to new legislations governing drugs (Euromonitor, 2005). The EU law affects L’Oréal, as they are restricted with their use of certain chemicals such as Phthalates, which are carcinogenic (The Rules Governing Cosmetic Products in the European Union). L’Oréal is obligated to produce safe products that don’t contain any harmful substances (Sadik, 2013).

Also, legislation for advertising has an effect. L’Oréal must follow rules set by the Advertising Standards Authority. For example, advertisements cannot be misleading or over-exaggerate the functions of a product (The Control of Misleading Advertisements Regulations 1988). L’Oréal faced legal issues with their Elvive

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