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Published by: Srikanth Soman on Jun 11, 2011
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Pooja N Maheshwari Amod Mungekar Isha Mongia Shradda Shukla

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Overview Of L·Oreal
€L·OREAL Group

- worlds largest cosmetics and beauty company €Founded in 1909 by Eugene Schueller €Controlled by founder·s daughter Lilliane Bettencourt and the Swiss food company Nestle €L·Oreal belongs to Cosmetic Industry

t.d. sun protection. skin care. €L·Oreal is also active in dermatological and pharmaceutical field. which makes L·Oreal the top nanotechnology patent-holder in United States €L·Oreal has global market share of 17% . hair care. explored the fields of color cosmetics. hair color..Overview Of L·Oreal €L·Oreal has C. and perfumes.

Brand Under L·Oreal €Brands are generally categorized by their targeted markets €Cosmetics are divided in different segments as: Consumer Division Professional Division Luxury Division Active Cosmetics .

in partnership with MU group with the Ultra Doux range of hair care products € In 1994.L·Oreal India €L·Oreal entered Indian market in 1990. L·Oreal set up its wholly-owned subsidiary for marketing its consumer products in India €L·Oreal has set up its own manufacturing plant in Pune. Maharashtra .

L·Oreal Paris Lip Color .

Product Personality L·Oreal Paris is a women who is: €Well educated €Confident €Women of substance €An achiever €Clear about her goals in life €Gives high regard to herself and wants the best for herself .

Rs700 Lip Stic: Rs 700 Liquid Lip Color: Rs800 €Weight: Lip Color: 3.2 gm Liquid Lip Color: 60 ml .2 gm Lip Stic: 2.Product Analysis €Brand Name: L·Oreal Paris €Utility: Lip Care €Price: Lip Color: Rs560.

Product Analysis €Shape: C. Lip Color: Round.d«. Rectangle Lip Stic: Round stick €Quality: Good €Styling: Lip Color: Round exterior cover Lip Stic: Pen shaped Cover Liquid Lip Color: A Testube shaped bottle €Color: Around 400-500 shades .t.

Market Presence Market share: €Total Lip Color market in India is 400 crore €L·Oreal Lip color market is 75 ² 100 crore €L·Oreal Paris Lip Color has approximately 20%-22% market share in India €World market share of L·Oreal Paris lip Color is 5.3% .

Market Presence Product Life Cycle: € L·Oreal Paris is at the second phase of the growth stage: € Sales has increased at 40% growth rate € Spends heavily on advertising .

t.Market Presence € L·Oreal as C.d« compared before is more widely available € It has been constantly launching new ranges in Lip color € Many new international players have entered in market in past few years .

Market Analysis Market Segmentation: Demographics: Sex: Women Age: 27 and above .

t. well educated woman of substance.d« Class: €Personality: Upper Middle Class Confident. €Life Style: Standard of Living is high Likes to socialize €Buying Motive: Brand Name Wants the best for herself .Market Analysis Psychographics: €Social C.

d« L·Oreal Paris Lip color varies from Rs 550Rs 800 €Positioning: Has positioned itself as high end brand in consumer division and also as affordable luxury €Distribution: Distributed through prestige stores and broad distribution channel .t.Market Analysis €Price: C.

Entered in direct marketing strategy by contacting consumers via email Also initiated online Beauty Club as a loyalty program to conduct polls and get their comments on their products.d« It promoted through various magazines.t. .Market Analysis €Promotion: C. television advertisement.

Competitors Analysis L·Oreal Paris faces major competition from: €Revlon €Chambor .

Sampling €Done cluster sampling for L·Oreal Paris Lip color €Cluster sampling is sample of respondents chosen from specific areas of the city or the town €Taken sample of respondents from South Mumbai €L·Oreal Paris does not conduct any kind of Sampling .

Data Interpretation € Sample of 50 correspondents .

Forecasting Product Launch €L·Oreal Paris will be launching few new products in lip color segment which is currently in pipeline .

d« Revlon .Forecasting Competitors: €Revlon: C.t. will continue its direct marketing strategy .the distributer for Chambor.planning to increase its distribution network and to invest in more of research €Chambor: Baccarose .

Re-Launching L·Oreal Paris Lip color .

Reasons for Re-Launch €Brand Awareness €Increase sales €Improvise marketing strategy €Conducting Advertising Campaign .

at malls on digital screen .Advertising Campaign €Have extensive campaign for L·Oreal Paris Lip Color €Will go for television advertisement €Will also have out of home advertisements like hoardings.

so that lips can be protected from harmful radiations of sun . stockiest etc in order. not to loose self space Product Modification: €Will be modifying the product by adding SPF.Marketing Strategy Distribution: €Will widen distribution network by giving various incentives to distributers. retailers.

d« Promotion: €Will be distributing complementary lip care guide on purchase of worth Rs 1000.Marketing Strategy C. that will have tips on how the various brand ambassadors of L·Oreal Paris apply Lip Color on themselves and how they take care of their lips €Will be sponsoring and supporting fashion designers at various international Fashion weeks from India .t.

that L·Oreal Lip color is safe .Marketing Strategy C.d« Social Responsibility €L·Oreal will support campaign for safe cosmetics which was started in October 2007 €This will help in building consumer confidence.t.

Product Life Cycle Post Re.launch .

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