Presentation on L’oreal Case

Group members :
ANKUR SHARMA
HARSHIT SULTANIA
NEHA JOSHI
PALLAVI ARUN
 L'Oreal Global Brand Management
Strategy
 PROMOTIONAL STRATEGY:-

 Promotional posters
 Launch of beauty magazines for women Votre Beaute
 Clean children campaign
 Creation of jingles – be nice &clean, smell good for dop
shampoo
 Advertising through film commercials
 Selecting local brand ambassadors
 Open spa to promote brand
 Advertising campaign because I am worth it
 POSITIONING STRATEGIES:-

 Most Innovative

 High quality

 Advanced products

 Affordable price

 Only cosmetic brand in the world that has products in all

segments consumer,luxury,professionalandpharmacuetical.
 DISTRIBUTION STRATEGY:-
 Through agents and consignments to US, South
America, Russia, Far-East

 CONCENTRIC DIVERSIFICATION:-
 Hair color
 Styling aids,cleansers,fragrances,body and skin
cosmetics etc.
 HORIZONTAL INTEGRATION:-
 Acquisition of Maybelline, red ken, Ralph Lauren, Soft Sheen
Carson

 MARKET DEVELOPMENT STRATEGY:-

 Develop strategies for Maybelline lipstick in Japan

 RELAUNCHING BRANDS:-
 Relaunched Helena and Rubinstein skin care and cosmetic
brands

 HITTING THE RIGHT AUDIENCE WITH RIGHT PRODUCT

 CONGLOMERATE DIVERSIFICATION AND JOINT

VENTURE STRATEGY:-
 L'Oreal joint venture with Nestle
Was L'Oreal strategies responsible for its
impressive financial performance

• Yes we think the strategies were primarily

responsible for its impressive financial
performance because it made sure that each
of its brands has its own image and take care
that its image do not overlap with the image
of another product
 Factors helping the company to
remain profitable
• Developing new products

• Strong R&D

• Expanding into key international markets

• Investing in new facilities

• Adding glamour to its brand to make it more

appealing
 Jones strategy of acquiring brands of
different cultural origins around the
Globe: MAYBELLINE
 Initially Maybelline was ordinary US brand and dealt with staid color lipsticks and
nail polishes which had only 3% market share in US .

 L'Oreal took over the brand and decided to give a complete makeover to it.

€ Makeover by L'Oreal : Maybelline

Launched new make up line in bold colors.

It was medium priced.
Its product identity was spirited and lively
Target segment was teenagers and middle aged women
The brand retained its American Image

 L'Oreal promoted all its brands in different nations but promoted one brand
aggressively in one country.
 Merits of acquiring existing brands by
L'Oreal
 Customers who are frequent and enthusiastic purchasers of a particular brand
are likely to become Brand Loyal. So L'Oreal cultivated brand loyalty among
customers is the ultimate reward for successful marketers since these customers
are far less likely to be enticed to switch to other brands compared to non-loyal
customers.

 The well-developed and promoted brands made product positioning efforts

more effective for L'Oreal which resulted upon exposure to a brand (e.g., hearing
it, seeing it) customers conjure up mental images or feelings of the benefits they
receive from using that brand.

 L'Oreal established a successful brand and extended the brand by adding new
products under the same “L'Oreal family” brand. Such branding may allowed
L'Oreal to introduce new products more easily since the brand is already
recognized within the market.

 The acquisition of an existing brand offered L'Oreal an already established

distribution channel which saved the cost for developing a new brand.
 Demerits of acquiring existing brands by
L'Oreal

 Brand extension in unrelated markets may lead to loss of reliability

if a brand name is extended too far. An organization must research the
product categories in which the established brand name will work.

 There is a risk that the new product may generate implications that
damage the image of the core/L’Oreal brand.

 The acquired brand may not compliment the image of the acquiring
brand.
Four Segments Of Cosmetic Market

Consumer
Professional Product for mass
Products for market at
hair salon competitive
prices through
retailing channels

Luxury product Pharmaceutical

as prestigious supported by
brands sold in advice from
specialty stores pharmacists and
dermatologists
 Positioning Strategy :Repositioning of
brands
 L’Oreal followed a positioning strategy of repositioning
its brands according to :
Changing preferences

Opinions of customer

Local customer
 Encouragement of competition by L'Oreal
among its own brands
 It followed a multi brand strategy i.e same kind of products under
different brands

 It helps to adapt market differentiation and improve market

share by providing equal opportunities to all brands.

 It encourages inter-brand competition

 Self competition among brands gives ample freedom to develop

and innovate better products which helped to differentiate amongst
L'Oreal brands and assured that brands image did not overlap.
 Communication strategy of L'Oreal
 Use of promotional posters made by famous graphic artist to promote the
company’s
product more creatively.

 Create and launch beauty magazine for women named Votre Beaute.

 L'Oreal organized clean children campaign which went on to become one of

the most famous jingles in France.

 It advertised products through film commercial screened at movie theatre.

 They launched the legendary advertisement campaign “BECAUSE I AM

WORTH IT” to promote the “preference” line of hair color.

 The slogan seem to cleverly differentiate L'Oreal products from others and
proved to be a winning factor.

 Selecting local brand ambassadors.

 Opening spa to promote brands.

 SYNOPSIS
 Above and beyond its financial success, however, L'Oreal's
track record reflects an endless quest:

• A quest for innovation,

• A quest for excellence

• A quest for diversity and a range of cultures

• A quest for purpose, a cornerstone of the L'Oreal approach,

combining economic growth, ethics, social and environmental
responsibility

• A quest filled with passion, transcending borders in a bid to

 FUTURE PLANS
• L'Oreal turns to cheaper products to spur future growth

• The Body Shop has drawn up a fresh strategy, including

aggressive discounts and opening of new stores, to tap the
market.

• They are focusing on the south market and are planning to open
10 stores in places like Chennai and Hyderabad.

• At present, the company is operating 25 stores in eight Indian

cities under a franchise agreement with retail major Future Group
 Recommendations

L’Oréal concentrate on marketing and communication efforts, and adjust its

advertising accordingly, in order to reflect a more accepted brand imagery for
the black ethnic group with respect to the L’Oréal brand, through meeting the
desires, social and self-expressive needs of the this group more accurately.