Marketing Report for L'Oreal

As the perfume, cosmetic and toiletry preparations industry entered the 1990s, it faced many challenges including regulatory changes, product safety concerns, increasing environmentalism, natural ingredients, pressure from the growing animal right

Neutrogena products in the United Kingdom should support their campaign on the usage of anti-aging products, and this should let them change their design on the product’s package to meet the demands from their consumers. As time goes on the demand from the consumers change and so do their competitors. This means that the personal selling should have in place a way of getting data from wholesalers, consumers, and the retailers. This makes the personal selling a connection of agents that can make their way around every avenue as soon as the original market develops into a success.

A political challenge for L 'Oréal is the requirement to conform to different government leadership styles in the various countries they operate within. They faced a decline in dermatology from its Galderma brand due to new legislations governing drugs (Euromonitor, 2005). The EU law affects L’Oréal, as they are restricted with their use of certain chemicals such as Phthalates, which are carcinogenic (The Rules Governing Cosmetic Products in the European Union). L’Oréal is obligated to produce safe products that don’t contain any harmful substances (Sadik, 2013).

Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year.

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.

Cultural Taste Changes – L’Oreal designs its products based on the taste and preference of the people in that particular area or place and also based on the cultural background of the particular place which helps them to create more brand value and more demand of that product.

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.

Procter & Gamble (P&G) is a multinational consumer-product company which operates in nearly 80 countries with more than 300 brands. With its core competency in development and commercialization of products and brands such as Pampers, Tide, and Wella which are part of P&G 's 22 billion-dollar brands, P&G has been highly successful in the market with sales of $68 billion and a net profit of $8 billion in 2006. Its aggressive international expansion and innovation-driven strategy enable the company to achieve economies of scale as well as to differentiate itself from strong competitors like Unilever, and Kimberly-Clark. Due to its large size and complexity, the organizational structure tends to be centralized. The

Proctor and Gamble may be the leader in its industry, but in order to maintain their status, they need to stay on top of their game if they are going to maintain this ranking. Their biggest competitors, Johnson & Johnson and Kimberly Clark are constantly looking for ways to improve

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).

Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.

L'Oréal is a French cosmetics company, it was founded in 1909 by Eugène Paul Louis Schueller. The company is registered in Paris. It is recognized as one of the world's largest cosmetics companies. L'Oréal has developed businesses in cosmetics, concentrating on hair color, skin care, sun protection, make-up, perfume and hair care. L’Oréal has been recognized by their beauty and health industry, for their commitment to business standards and

To reduce confusion, L'Oreal Plenitude can divide its product lines into several sub brands, for example, L'Oreal Plenitude Pure Balance Series for women who have oily skin, Nutrient Series for women who have acne problem, etc. L'Oreal can provide in-store brochure or leaflet as the guideline or regime to choose the product. The guideline can start by asking the question such as; what kind of skin do you have?, Are you in the age 20s, 30s, 40s or 50 plus?, etc. After the consumers use the guideline, they will know which product they need. L'Oreal can also use direct mail (catalogue) to educate the consumers and promote their product. The catalogue will also give consumers the guideline of Plenitude products, and information about the newest product and technology of the brand.

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 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.