Key Issues Facing L’oreal
Core Competencies
L’Oréal has created several core competencies that have created value and served to gives L’oreal a competitive advantage over it’s competitors.
Loreal’s first core competency is seen through it’s product innovation. L’oreal is fully dedicated to creating new and innovative products at it’s advanced dermatological research facilities. L’oreal invests heavily in research and development and aims to introduce one or two new products each year, every year in each of it’s world-wide markets. In fact, L’oreal annually invests 3 percent of its sales for research and new product creation. L’Oréal then regains this investment through the sales of its new globally launched products. This core
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We aim to give our customers the right to be beautiful day after day: because they’re worth it.”
Recommendations for the Future
Business Strategy Diversification is one of the great successes in L'oreal's business strategy, but it must shift it's focus on improving it's current companies. The focus on innovation should be the critical success factor. L’Oreal should rid itself of the trickle down technology and develop a more direct approach. The direct approach will make innovations more available to lower income consumers and will broaden their segmentation of the population. Presently, consumer products make up 54.8%, which seems to under-represent this sector of the population. The direct approach will increase the percentage of consumer products sold, which better represents the consumer products sector and demonstrates an increase in growth. L’Oreal should also develop a new business strategy that will give them more of a competitive advantage against companies such as Estee Lauder, Proctor & Gamble and Nivea’s face cream. One way that they can do this is by catering to a further range of ethnic groups. In addition to specific product lines for African-American and Asian-Americans, L'oreal should look into product lines and marketing for the huge Hispanic population in the U.S, which is virtually untapped. L’Oreal may be able to apply some of the
L’Oreal’s slogan “Because we are worth it” is the platform upon which the company’s entire marketing strategy is built. The purpose of the message is to create a sense on self worth and confidence among women. L’Oreal’s marketing content is based upon three pillars: education, empowerment and aspiration. In line with these three topics, how-to and do-it-yourself videos have been created informing consumers of various beauty tips. Videos focused on empowerment send the message of the brand’s strength and confidence rather than just focusing on cosmetics and beauty, leaving customers with positive outlook. Finally, aspirational videos are reflections of the company’s sponsorships with various award and fashion events, which infuse the brand with
ASOS is an international fashion retailer, which offers an extensive line of products, varying from high street to
L’Oreal has the prior strength for having strong brand image and brand awareness in both locally and internationally. In cosmetics market, L’Oreal is famous for its huge 32 global brand diversities and brand management in 150 different countries and cultures. The L’Oreal philosophy has been proved by the Maybelline success in embracing two different cultures which are French and American. As L’Oreal has a powerful brand presence in the industry, L’Oreal is said to attain brands consistency since the company has a strong and long term brand positioning particularly within the minds of middle age women and teenage girls. The effort made to promotes and maintain its brand is by focuses over all to improve and develop the different brands it targeted in different regions. To exclusive their product’s brand, L’Oreal takes the initiative by creating good relationship with customer by providing beauty advertiser at department store.
L'Oréal has developed a winning innovative formula, a growing portfolio of international brands that has helped a normal French company to become an international brand .Within moments the company sold more than 85 products worldwide from hair care to perfumes, from skin care to cosmetics.
According to the situation mentioned above, L’Oreal’s strategy will lead them suffer from few of the challenges. There are three main challenges discussed in this report. Firstly, the acquired companies now work without their founders. Secondly, manage L’Oreal’s portfolio of products. Thirdly, it is hardly to manage lots of brands. Finally, it might have a problem about customer loyalty for local companies.
Considering these environmental trends and cultural differences into account, positioning Yue Sai as a provider of “delicate luxury cosmetics for mature Chinese women” under the LCD of L’Oreal, is the ideal choice. It will help L’Oreal establish a sustainable and profitable presence in a Chinese market segment inaccessible by its other sub-brands.
For over 105 years, L 'Oréal Group has been dedicated to the business of beauty. It is the global beauty leader in 130 countries. The worldwide beauty market is, to me, highly interesting to develop and analyze because of its specificity. The fact that success in this particular industry depends on different factors—such as the importance of image and communication—makes it more complex for a company to set up and implement clear guidelines. In addition, the size of an organization that operates globally, present in all distribution channels in markets that have sometimes opposite characteristics, is another incentive for analyzing the objectives, the strategy and the tactics of a company such as L’Oréal. With 28 international brands, the Group achieved in 2013 an annual turnover of € 23 billion and has 77,500 employees worldwide. L 'Oréal relies on excellence in research and innovation and on 4000 researchers to meet all beauty aspirations in the world and the Group 's objective to conquer a billion of new consumers in the coming years. Also, through its program "Sharing beauty with all" L 'Oréal is making impressive commitments on sustainable development throughout its value chain for 2020 (“STRATEGIC TRANSACTION”, n.d., para. 16).
The main function of the business to create a safe and natural company that the public is able to recognise as a brand that looks after the consumer. As a brand, we want to return the quality to the customer if they are trusting us to look after their bodies and needs. The statistics are alarming for all the nasty products placed in current beauty products: one in five of all beauty products contain chemicals linked to cancer, 80% contain ingredients that
The current health care environment is characterized by rapid changes in various aspects of operations, prompting hospitals to embrace strategic planning in order to position themselves in the dynamic environment. Strategic planning serves a vital purpose of helping an organization determine what it wants to be in days to come and how it will achieve this objective. This paper explains how a well constructed strategic plan would benefit Atchison hospital which is located in the State of Kansas in the Midwestern United States.
If I were to drive through the town of Auburn, Alabama and count the amount of “Tow Away Zone signs, it would take me an entire day to do so. Even then, the chance of me overlooking and missing one or two signs is likely to happen. There are apartment complexes surrounding all sides of campus with a lot of housing being crammed along West Glenn and Gay Street. Even downtown parking is very limited. To ensure that apartment renters, and shop owners downtown have parking these tow away signs were put into place by property owners. Without this piece of text, parking would be an even bigger nightmare than it already is.
The huge success of L'Oreal Plenitude in French as the premium skin product with "class to mass" strategy was the primary reason for L'Oreal to expand the product to US market. The company started to enter the US market skin care in 1989 through mass channel by introducing the entire product line (14 SKU's) that had been developed in France, instead of launching the product one by one. Before Plenitude entered the US market, L'Oreal had had good reputation for its cosmetic and hair product, so the name was critical to sell the products. The company used the same formula "star" system in advertising as in France by putting bulk of dollars on the newest, most technologically advanced product. Even though Plenitude had a
Because L'Oreal had a commitment with the trade that they would keep investing and supporting its brands financially and considering that P&G had a very strong market position in the "masstige" skin care category, long term ROI and profit were forecasted for the following years. It was planned that L'Oreal would gain share and well establish its brand Plenitude.
The strategic management process is sometimes improperly perceived as a unidirectional flow of objectives, strategies and decision parameters from management to the employees. In fact, the process should be highly interactive since it is designed to stimulate input from creative, skilled and knowledgeable people working at every level of the business.
L'Oreal is a cosmetic company, which makes some of the world's biggest beauty products. L'Oreal's success story begins in 1907. It has been the market leader in the cosmetics and toiletries market since 2001 (Euromonitor 2005). Their products are sold in about one hundred and thirty countries worldwide. L'Oreal is divided into four categories - consumer products, professional products, luxury products, active cosmetics. They mainly focus on skin care, make-up, hair care and fragrance. L'Oreal includes some important brands such as Lancôme Paris, Garnier, Mabelline, Softsheen Carson, Matrix, and Biotherm. L'Oreal invests heavily into its research and development which gives them competitive advantage over its competitors.
The pharmaceutical activities of L’Oreal are also handled by Sanofi-Aventis. These divisions and subdivisions ensure the quality that the L’Oreal Group offers to its customers. To further add to the enumerated strengths of the company, L’Oreal’s advertising strategy also plays a major part to its growth. Through adapting to the culture of their target market as the main tool of their advertisement, the Company brought L’Oreal products within reach of other women from different parts of the world.