The L’Oreal Group, which is headquartered in Paris, is the world's largest cosmetics and Beauty Company. The company majorly works in the cosmetics business and personal grooming products as hair color, sun protection, perfume fragrances and other skin care products. Its wide range of products span over the dermatological as well as pharmaceutical fields. L’Oreal is also technology advanced and the R&D department has numerous nanotechnology patents in the United States.
It operates in over 125 countries and markets in access of 16 brands which can be categorized under dermatology and cosmetics. The cosmetics division of L’OREAL has four segments: professional products, consumer products, luxury products and active cosmetics. The dermatology
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The underlying strengths of L’Oreal
The core strategy of L'Oreal works on a tripod and has a three point guide to meet and counter competition –
Transform – L’Oreal believes innovation is the key to success. Every subsequent product of L’Oreal, as claimed, is technologically advances than the earlier ones as well as the completion.
Distinguish – L’Oreal differentiates its products from the competitors through robust and pragmatic marketing strategies
Lead – Innovation and differentiation lead to domination the individual segments of the products offered by L’Oreal.
The R&D at L’Oreal is an underlying strength of the company. L’Oreal invests heavily in Research and Development with one clear aim: to improve the quality and efficacy of its products through scientific innovation. Each year the Group devotes more than 3% of its turnover to Research and Development. Laboratories all over the world employ over 3000 scientists and the research finding are published in major scientific journals all over the world. This is proven by the number of patents L’Oreal applied for in the last few years in the
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
L'Oréal has developed a winning innovative formula, a growing portfolio of international brands that has helped a normal French company to become an international brand .Within moments the company sold more than 85 products worldwide from hair care to perfumes, from skin care to cosmetics.
According to the situation mentioned above, L’Oreal’s strategy will lead them suffer from few of the challenges. There are three main challenges discussed in this report. Firstly, the acquired companies now work without their founders. Secondly, manage L’Oreal’s portfolio of products. Thirdly, it is hardly to manage lots of brands. Finally, it might have a problem about customer loyalty for local companies.
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.
When the manufacturer of L’Oreal shampoo introduced shampoos designed specifically to appeal to preteens, the product was:
To add appeal to the contest we decided to make L’Oreal a sponsor of the event. Because they will be sponsoring we came up with the idea to display and sell new L’Oreal makeup and hair product in every Nordstrom store located in California during the allotted time of the
Olay started with the product logo of “Oil of Olay” back in 1952 with the “Pink Beauty Fluid”. The brand has since then introduced a number of collections such as Prox, Regenerist, Fresh Effects etc. It rebranded itself as “Olay” back in the 90s and now the brand purpose of Olay can be inferred as “Harness the power of innovation to treat the root cause of skin concerns with quality products to be your best beautiful .”
Of course, the feminine care product brand is not without challenges. In an industry where there is clear competition, creating a sustainable marketing plan is essential. The Always brand brought about change in the mindset of many people, as well as profits for the company, all because of awareness and redefining what it meant to be a girl. “Marketing feminine hygiene products, particularly to girls who are hitting puberty at younger ages, can be a challenge” (Patel, 2014). The Always brand acknowledged this challenge and responded perfectly with their purpose-driven
It is necessary to build on the results of this study. If more time was permitted my study could have examined a great number of makeup products and their marketing campaigns as the stimuli focused only on two L’Oreal Group consumer brands. Also,
The huge success of L'Oreal Plenitude in French as the premium skin product with "class to mass" strategy was the primary reason for L'Oreal to expand the product to US market. The company started to enter the US market skin care in 1989 through mass channel by introducing the entire product line (14 SKU's) that had been developed in France, instead of launching the product one by one. Before Plenitude entered the US market, L'Oreal had had good reputation for its cosmetic and hair product, so the name was critical to sell the products. The company used the same formula "star" system in advertising as in France by putting bulk of dollars on the newest, most technologically advanced product. Even though Plenitude had a
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.
Problem Statement - L’oreal Plenitude has been introduced in the US for 8 to 9 years but the brand is still not making any profit. Should L’oreal switch everything to Revitalift which is the ‘star’ product or continue their effort in building the market share of Plenitude by improving it’s value proposition in cleansers and daily moisturisers?
L'Oreal is all about empowering its customers. The company promotes itself as more than just a cosmetic and beauty brand but as a source of strength and confidence for its consumers. L'Oreal is vigilant about making sure its content empowers customers
L’Oréal is ranked second in the beauty and personal care manufactures in the world. The South African division was established in 1963 with five divisions divided into one manufacturing and four operating divisions. The organisation employs in excess of 500 personnel.
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.