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L'Oreal and the Globalization of American Beauty

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EXECUTIVE SUMMARY.

If we look at the over 100-year history of L’Oreal we see how much that company changed and became the biggest global cosmetic company. They expanded and acquire many other companies in the world especially in USA and France.
They faced some challenges on the way to that title. Some of the challenges are: high rivalry in the industry, marketing problems with sustaining a consistent brand positioning of the products in some markets, and the cultural differences they faced in many countries.
However they also possessed specific capabilities that helped on the way to become the world’s largest beauty company. L’Oreal has a strong commitment to research and development; for example they spent $600 million in 2003 on …show more content…

This makeover was a big hit. Maybelline's share of the nail-enamel market in the U.S. has climbed from 3% to 15% since 1996.
In short, over the past years, Owen-Jones has almost doubled Maybelline's sales, from $320 million to $600 million, and pushed the brand into more than 70 countries. Sales outside the U.S. market now make up 50% of total revenues for the company. Finally I disagree that growth was only through internal development, but the combination of both L’Oreal expertise in marketing and R & D and many successful acquisitions, which opened doors to new markets for L’Oreal to go to.

3. How did they go about integrating acquisitions within the company, within existing brands?

They looked at the brand they acquired and tried to understand how people see that brand, in Maybelline example – consumers were unable to define what Maybelline was. Then L’Oreal team applied their expertise and technology to improve Maybelline products, its marketing, and its brand image to increase its share of US market. This resulted in increase in sales. The company used the same approach with Ralph Lauren fragrances, Redken hair care and others. They really focused on each brand to be very precisely defined and occupied a very distinct market position. Each acquisition they made was to get into specific segment and market, which did not overlap with existing product lines and segment they had at the time.

4. L’Oréal offers consumers

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