L’oreal’s Way to Success in the European Haircare Products Industry

3688 WordsSep 10, 200815 Pages
L’oreal’s Way to Success in the European Haircare Products Industry Introduction: L’oreal, the name of the cosmetics giant, appears with high frequency in nearly all world-class newspapers and magazines in recent times. There is a striking headline in the Independent (London, England) on Feb 21, 2004 p54, “L'Oreal builds on two decades of growth as profits soar.” The news is “L'oreal has set its sights on notching up two decades of consecutive annual double-digit growth after reporting a 13.5 per cent rise in profit last year.” Lindsay Owen-Jones, chairman, showed his confidence for the rate of internal sales growth next year. Maybe it is not too difficult for a company to rank first of its annual sales growth. But it seems a mystery for…show more content…
1995: The company launched Elsève Multicitamines and added the Technicare line to the Elsève product range. Elsève Multivitamines used a silicone-based formula that tested better than the composition of Procter &Gamble’s silicone-based Pantene which at the time was the European market leader. Launching Elsève Multivitamines enabled Elsève to increase its target segments, addressing not only consumers with damaged hair or other hair care problems bur also people with normal hair. The new formula was the milestone of L’oreal’s shampoo battle. The innovation of research brought a series of good results: increase of sales and so did prices. The high revenue made it possible to increase the advertising budget, further increased its market share. Since then, with the leading position of the new skills and constant development as well as successful implementation of marketing strategy, L’oreal went steadily towards its No 1 position. 2. Panorama of Research & Development in today’s L’oreal: The continuous innovation has helped L’oreal gain its competitive advantage and kept on escalation of its competitive position, from a French leader to be a European Leader and now the world leader. L’oreal regards research as the heart of the business. The investment in research is much higher than that of its rivals. 1) Delicate combination of

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