The Marketing Strategy Of L ' Oreal

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).

This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges.

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

Bath & Body Works was founded back in 1990 by Les Wexner, opening their first store in Cambridge Massachusetts mall. Since then they have grown to over 1600 retail stores in the U.S. and over 80 stores in the Middle East and Eastern Europe. Bath and Body Works is the number one retailer in America for body lotion, body cream, body wash, body fragrance, hand soap, and hand sanitizer. “Bath and Body Works store revenue is over 3.5 million back in 2016 and is slated to increase by 4.3% by the year 2023” (Trefis 1).

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

There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line

When L’Oreal planned to release Plenitude in the US market, it is assumed that what would be successful for the French market would translate to the

If Kenchic did not have the right strategy, it could not have competed to this extent and grown fast. It is because of a strong brand name. Several suggestions put across in the book by Winer and Dhar (2011, p. 183) played a significant role. Movahhed (2016) also highlights several elements of brand strategy. Let us examine each one of them.

In 1806, when the company was founded by 23 years old William Colgate, it concentrated exclusively on selling starch, soap, and candles from its New York City based factory and shop. Upon entering his second year of business, Colgate became partners with Francis Smith, and the company became Smith and Colgate, a name it kept until 1812 when colgate purchased Smith’s share of the company and offered a partnership to his brother, Bowles Colgate. Now called William Colgate and Company, the firm expanded its manufacturing operation to a Jersey City, New Jersey, factory in 1820. This factory produce colgate’s two major products, Windsor toilet soaps and Pearl starch. Colgate-Palmolive Company’s growth from a small candle and soap manufacturer to

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

The IC Company was formed from the merger of the companies Carly Gry and InWear in 2001. The company has been focusing to become a world leader in the sports and fashion brands in markets all around the world. The IC company has been using mergers and acquisitions as a way to achieve expansion globally. Currently, the company has 11 brands that are classified in the upper-mid and middle class categories. IC Company has been using a multi-brand strategy where each of their brand has a market-oriented management team that is in charge of the positioning of their market. This strategy allows the company to have specific brand managers who can concentrate on their specific brand. Each of these segments are able to develop and create their own unique brand. IC Company benefits from this strategic plan due to having multiple brands under one umbrella company. Each brand adds value by being a part of the overall company. The company has also applied a different strategy depending on whether it is the high-end brand or low end. For the brands such as Peak Performance and Tiger of Sweden, they have developed the brands to ensure that they are of high quality and preferred in that market of consumers. They made sure that they would develop a brand identity for this set of collection that would be unique. In this instance, the IC Company would be using a narrow differentiation strategy. They are focusing on tailoring their premium brands to a relatively narrow market. Overall, the

L'Oreal is a cosmetic company, which makes some of the world's biggest beauty products. L'Oreal's success story begins in 1907. It has been the market leader in the cosmetics and toiletries market since 2001 (Euromonitor 2005). Their products are sold in about one hundred and thirty countries worldwide. L'Oreal is divided into four categories - consumer products, professional products, luxury products, active cosmetics. They mainly focus on skin care, make-up, hair care and fragrance. L'Oreal includes some important brands such as Lancôme Paris, Garnier, Mabelline, Softsheen Carson, Matrix, and Biotherm. L'Oreal invests heavily into its research and development which gives them competitive advantage over its competitors.

L¡¦Oreal is the largest cosmetics company in the world. In 1992 the L¡¦Oreal Group was the largest cosmetics manufacturer in the world. They are Headquartered in Paris, it have subsidiaries in over 100 countries. In 1992, its sales were $6.8 billion (a 12% over 1991) and net profits were $417 million (a 14% increase). France contributed 24% of total worldwide sales. Europe (both western and eastern countries, excluding France) provided 42%, and the U.S.A and Canada together accounted for 20%; the rest of the world accounted for the remaining 14%. L¡¦Oreal¡¦s European subsidiaries were in one of two groups: (1) major countries (England, France, Germany, and Italy) or (2) minor countries (the

But at that point of time, the company had a wide range of brands/subbrands. The focus of the company was on product innovation and service network and managing quality proposition.