Loreal's Segmenting and Targeting Markets Essay

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

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.

10. Conducting a Market Opportunity Analysis (MOA) is the first step in developing a marketing strategy.

According to the agreement between L’Oreal and those two local companies, Li Zhida and Yue-Sai Kan who is

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.

Many great fashion designers have entered the market of fragrance (Chanel, Lanvin, Givenchy, Yves Saint‐Laurent, Balenciaga …). After that, the speakers of the cosmetic market launched their own perfumes (Yves Saint Laurent, Estee Lauder) and finally, the family brands made their entry on the market (L’Oreal, Procter & Gamble, Unilever…). These

The advertising play a crucial roles in introducing the product for the customers. By creating a very interesting and persuasive advertisement, it will encourage the customer to buy the products. As the company focus on beauty product and major customers for L’Oreal is for women, the advertisement must be catchy and have the grab the attentions of the customer to buy and purchase it.

L’Oreal, a long time hair care, skincare, and cosmetic leader, was faced with a positioning problem of their Plenitude skincare line. The Plenitude line, which included cleansers and moisturizers had been a smashing success in the French skincare market following its 1982 introduction and was introduced in the U.S. market in 1988. It had grown quickly to become the #2 brand in the market, behind Oil of Olay. Plenitude was marketed as an upscale product bringing new people into mass channels from department stores. A four-year sales plateau was reached and their #2 position was lost to Pond’s. Carol Hamilton, Senior Vice President of Marketing for the L’Oreal Retail

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

Estée Lauder has an extremely large presence as the global leader in prestige beauty with products being sold in more than 150 countries. This global success is attributed to their focus on cultural relevance, making sure that their products, signage, marketing etc. appeals to consumers in each local market.

Market segmentation is the division of a market into different groups of customers with distinctly similar needs and products or service requirements (Croft, 1994). Its major purpose is to pull scarce resources and ensure that the elements of the marketing mix, price, distribution trends, products and promotion are premeditated to satisfy the particular needs of the different customer groups. City Grill’s main approaches to market segmentation, could include using the breakdown method where they can view the market as to consist of consumers who are in essence the same, having similar tastes, and so forth. Their duty could only be to identify groups which share particular differences. Alternatively they

In terms of promotion and advertising, L’Oreal should change the “star product” approach and instead focus on the whole product line or perhaps a set of products for a given target segment. In this way, L’Oreal can inform its customers on its products which should also help them in choosing the right product for themselves. L’Oreal should also focus on building the brand Plenitude since this is something that customers are not aware of. They

According to some analysts, the future growth in the cosmetics industry will come mainly from the upper-class products, especially of those companies that have an attractive well-recognized label. Classic luxury brands are losing its business to traditional department store brands like Estee Lauder and Lancôme. (Business Wire, 2001) The sales of these prestige products have increased by 27% from 1997 to 2000. The United States accounts for 25% of the

L'Oreal invests heavily into its research and development to satisfy its changing consumer demands and lifestyle. L'Oreal has to watch out for new sector entrant such as Playboy as they are launching a cosmetics range. (Brand Strategy, 2005).

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.