Loreal's Segmenting and Targeting Markets Essay

971 Words Apr 19th, 2013 4 Pages
L'Oréal, the world's largest cosmetics and beauty company, was founded in 1907 by the French chemist, Eugene Schueller. After a little over a century of steady growth, L'Oréal has jumped from being a small family business to become the world’s leader in the cosmetics industry. Today, the L'Oréal group has regions in more than 150 countries in the world that are home to 283 branches, more than 100 agents, 50,491 employees, 42 factories, and more than 500 high-quality and popular brands of cosmetics. Their "global or nothing" strategy allows L'Oréal to take market segmenting even further by custom developing and marketing products to meet the specific demands of any given country or region. In order to clarify different product …show more content…
This does not mean that this brand can only be used by French people. Their spokespersons include the famous actresses, Michelle Reis from Hong Kong, Gong Li, from China, Andy McDowell from the United States, and the Indian beauty queen, Ice baby Ya Rui. Each of them has the appearance of expressing “a French beauty” that is also suitable for people of every culture. Thanks to their understanding of global and cultural diversity, the L'Oréal Group operates 17 cosmetic brands throughout the world while clearly showing the different features of each brand. A further result of this effort was that L'Oréal Paris made a successful comeback to Japan. Finally, due to the global economic depression, female consumers are looking for quality assurance and affordable products. L'Oréal has become an "easy-going" brand of open-shelf cosmetics. The Japanese media calls L'Oréal "the best choice for smart consumers." In Japan, the new L'Oréal line of skin care products currently accounts for 35% of the total sales every month, and that percentage continues to rise. The strategy to transfer a brand to a higher or lower market is riskier than its first entry into the market. L'Oréal tried to move to a higher class in order to develop new market segments. Now it seems that L'Oréal Paris has completed the challenge of "dangerous mission." L'Oréal has had many
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