PERFORMANCE STRATEGY OF L’OREAL
1
L’Oréal Performance Strategy
A review of the Company
Jessica Niro
Graduate School of Business Touro College
PERFORMANCE STRATEGY OF L’OREAL
2
L’Oréal Performance Strategy
A review of the Company
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).
L’Oréal
L’Oreal is a French cosmetics and beauty company. It is the world’s largest cosmetics company. The company was formed in 1909 by Eugene Schueller, a young French chemist. It has developed activities in the field of cosmetics, concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatology, toxicology, tissue engineering, and biopharmaceutical research fields and is the top nanotechnology patent-holder in the United
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.
Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.
The Body Shop (TBS) is a global beauty brand which is currently owned by L’Oréal. The company has a range of cosmetic and skin care products which sells in over 2,500 stores in 60 countries. Target customer of TBS are mostly female age 18 to 40 customer with financial unconstraint income. Why TBS has being so successful to target customer buying their products? TBS have used segmentation base to recognise their target market. People choose different types of product based on their perceptions. Female customers represent wide range of lifestyles that can influence their choices of product over another. Some might looking for skin care product and some might looking for cosmetic product. Regardless of which product they want, all they desire for is beauty built on themselves, making their face, body and soul feel good, just like the motto of TBS. Having the concept of environmental value and responsibility, TBS offers wide range of naturally-scented, high quality of cosmetics and skincare. "The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed." (Roddick, 2009). TBS attracts customers that are not just demanding for high quality and the value of the product, but also able to identify the importance of environmental responsibility. As TBS flag environmental values and subsequent targeting, customer have the loyalty feels towards TBS. This case study focus on how the brand aims
Mac, Estee Roder and ). if you are woman and interested in cosmetic, you will be familiar to the name. you may be using the products or want to get it. Cosmetic industry is the one of the hot industry in entertament. over 000 compnay release the products in the world and — 소비 시장의 결과. when I chose the new cosmetic, I am always looking what it include and what color it is. I naver consider how the lipstic and mascara are making. The brand are doing the animinal testing and tons of rabits and dogs are suffering for the products what we buy without any guilty. In the 2007, EU prehibit the aninmal testing for cosmetic industry. They insists that ——-.————. I agree with EU oppinion, animal testing is the 가혹 행위 to the living —- and morlly woring and it must stop.
Global interconnections, the process where continents, countries, states and cities interact through a diverse amount of ways. They occur every day through many things that we don’t realise and one of them is Estee Lauder. Estee lauder is a multinational corporation that owns a total of 29 brands, that produces a range of assorted products like Skincare, Makeup, Hair and Fragrances (Estee Lauder Companies, 2017). It is also said by Estee Lauder Companies (2017) that their headquarters are found in New York city and as seen in figure 1.1, where it also shows where their offices are, where their manufacturing and distribution is and where their R&D (Research and development) is found, as well as where the operated companied locations.
Customer health and safety: Nestle express this via our corporate proposition 'Good Food, Good Life'. Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe and of high standard. As the world’s leading nutrition, health and wellness company, Nestlé continually invests in the innovation and renovation of its large portfolio of products both to enhance and communicate their taste and nutritional value. In order to analyse the nutritional value of its products, Nestlé has established a rigorous methodology called the Nestlé Nutritional Profiling System and has been progressively applied across Nestlé’s worldwide product portfolio since 2004. The criteria for each and every product are derived from four principles of assessment:
L’oreal of Paris is well known brand in cosmetics sector especially in France. The company is trying to enter to U.S. market where competition is high and this is a big problem in such competition because consumers are prone to use
As a subsidiary, the Body Shop does not reveal who its financial officers are, nor does the company reveal the practices that it uses to hedge its foreign exchange rate risk. It is not known if the company deals with its risk at the company level, of if this function has been transferred to the group level since L'Oreal took over.
As it was shown in previous chapter, L’Oreal is one of the world’s leading multinational enterprises, not only in the beauty industry, but, thanks to its brilliant management system and strong commitment to social responsibility, across the various industries as well. It has been internationally recognized for its moral and visionary performance. However, as every other company on the market, L’Oreal is not perfect. Behind the curtain of its CSR practices, the company is struggling with several serious problems that affect not only its financial performance, but also its credibility amongst the stakeholders.
L 'Oreal presently offers the following products in the Netherlands: Plenitude and Recital under the L 'Oreal brand name, and Ambre Solaire under
R.M.K. Cosmetics is a new and upcoming brand founded in New York. R.M.K was founded in the early 2000, by Kyra Pair and Makayliah Davis. R.M.K.stands for Reasonably Made Known we thought that our cosmetic store should have a meaningful name. Starting with the money from our pocket and a name that came from the top of our heads, we set out to start our business.
Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This study is a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clear view of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided in this paper. Another area will be specifically devoted to