In 2002, Mr. Sharma, the general manager of L'Oreal India Pvt Ltd, expected the sales turnover to double.

So he bought the international styles to India, the Indian hair dressers will recreate the looks of customers by converting the interpreted looks in the form of services rendered to them. So nowadays, L'Oreal India has 2000 saloons across 36 cities. Advertising: In 1920s, L'Oreal advertised around world by posters. Around 1950s, it brought a new advertising medium, especially the movies. L'Oreal made it on-screen first time during this period and it won an advertising Oscar award. Nowadays, L'Oreal takes on famous actresses or different celebrities of all ages that promote product and ensures its higher sales. Promote through ethical issues: The first advertisement and promotion of L'Oreal product is using the image of the traditionally beautiful women. It does attract many consumers because they want to achieve the same level of beauty with what the woman looks like in the advertisement. They think the more beautiful the woman is, the more people will respond to the ad and buy the product.

History
In 1907, Eugne Schueller, a young French chemist and future La Cagoule supporter, developed a hair dye formula called Aurale. Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers. On July 30, 1909, Schueller registered his company, the Socit Franaise de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France" literally "French Society of Inoffensive Tinctures for Hair"), the original LOral. The guiding principles of the company, which eventually became LOral, were research and innovation in the field of beauty. In 1920, the small company employed three chemists. By 1950, the research teams were 100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today. LOral got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. LOral currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail. LOral has five worldwide research and development centers: two in France: Aulnay and Chevilly; one in the U.S.: Clark, New Jersey; one in Japan: Kawasaki, Kanagawa Prefecture; and in 2005, one was established in Shanghai, China. A future facility in the US will be in Berkeley Heights, New Jersey. From 1988 to 1989, L'Oral controlled the film company Paravision, whose properties included the Filmation and De Laurentiis libraries. StudioCanal acquired the Paravision properties in 1994.

L'Oreal anti frizz shampoo.

LOral purchased Synthlabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthlabo merged with Sanofi in 1999 to become Sanofi-Synthlabo. Sanofi-Synthlabo merged with Aventis in 2004 to become Sanofi-Aventis. On 17 March 2006, L'Oral purchased cosmetics company The Body Shop for 652 million. The company has recently faced discrimination lawsuits in France related to the hiring of spokesmodels and institutional racism. In the UK, L'Oral has faced widespread condemnation from OFCOM regarding truth in their advertising and marketing campaigns concerning the product performance of one of their mascara brands. L'Oral's famous advertising slogan is "Because I'm worth it". In the mid 2000s, this was replaced by "Because you're worth it". In late 2009, the slogan was changed again to "Because we're worth it" following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko. The shift to "we" was made to create stronger consumer involvement in L'Oral philosophy and lifestyle and provide more consumer satisfaction with L'Oral products. L'Oral also owns a Hair and Body products line for kids called L'Oral Kids, the slogan for which is "Because we're worth it too".

Protest group Naturewatch states that L'Oral continues to test new ingredients on animals. The company states that no animal testing for finished products has taken place since 1989 and that L'Oreal [7] has invested significantly in alternative methods for chemical safety testing, though they implicitly [8] acknowledge that they continue to perform animal testing of ingredients. Following L'Oral's purchase of The Body Shop, who continue to be against animal testing, The Body Shop founder Dame Anita Roddick was forced to defend herself against allegations of abandoning her principles over L'Oral's track record on animal testing. Calls were made for shoppers to boycott The [9] Body Shop. L'Oreal has made quite a few statements on claims of animal testing.
[10]

[6]

In 1987, L'Oral and 3 Suisses founded Le Club des Crateurs de Beaut specializing in mail order sales of cosmetic products. February 2011: L'Oreal will have the largest factory in the Jababeka Industrial Park, Cikarang, Indonesia with total investment of US$50 million and it will be ready in October 2011. The production will be absorbed 25 percent by domestic market and the rest will be exported. In 2010 significant growth occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net [11] sales.

Business

Corporate governance
Board of directors
Current members of the board of directors of LOral
[12]

are:

Jean-Paul Agon, Chairman and CEO since March 18, 2011, Director Sir Lindsay Owen-Jones, Honorary Chairman & Director Jean-Pierre Meyers, Vice-Chairman of the Board of Directors Peter Brabeck-Letmathe, Vice-Chairman of the Board of Directors Franoise Bettencourt Meyers, Director Paul Bulcke, Director Charles-Henri Filippi, Director Xavier Fontanet, Director Bernard Kasriel, Director Christiane Kuehne, Director Marc Ladreit de Lacharrire, Director Jean-Victor Meyers, Director Annette Roux, Director Louis Schweitzer, Director

Management committee
The management committee includes: Jean-Paul Agon, Chairman and Chief Executive Officer Laurent Attal, EVP Research and Innovation Jean-Philippe Blanpain, Managing Director Operations Nicolas Hieronimus, Managing Director L'Oreal Luxe Jean-Jacques Lebel, President Consumer Products division Brigitte Liberman, President Cosmetic Active division Marc Menesguen, Managing Director Strategic Marketing Christian Mulliez, EVP Administration and Finances Alexandre Popoff, Managing Director Latine America Zone

Sara Ravella, Managing Director Corporate Communications Frederic Roz, Managing Director North American zone Geoff Skingsley, Managing Director Africa and Middle East zone An Verhulst-Santos, Managing Director Professional Product division Jrme Tixier, Managing Director Human Resources and Advisor to the President Johen Zaumsel, Managing Director Asia Pacific zone

Stockholders
As at year end 2010:
[1]

Breakdown of share ownership: 30.9% by the Bettencourt family, 29.7% by Nestl, 1.9% treasury shares, 0.7% company savings plan, and the remaining 36.8% is public.

Sales, profits, etc.

In 2003, LOral announced its 19th consecutive year of double-digit growth. Its consolidated sales was 14.029 bn and net profit was 1.653 bn. 96.7% of sales derived from cosmetic activities and 2.5% from dermatological activities. LOral has operations in over 130 countries, employing 50,500 people, 24% of which work in France. 3.3% of consolidated sales is invested in research and development, which accounts for 2,900 of its employees. In 2003, it applied for 515 patents. It operates 42 manufacturing plants throughout the world, which employ 14,000 people. Cosmetics sales by division breakdown: 54.8% from consumer products at 7.506 bn, 25.1% from luxury products at 3.441 bn, 13.9% from professional products at 1.9 bn, and 5.5% from active cosmetics at 0.749 bn. Cosmetic sales by geographic zone breakdown: 52.7% from Western Europe at 7.221 bn, 27.6% from North America at 3.784 bn, 19.7% from rest of the world at 2.699 bn.
[13]

In 2007, LOral was ranked 353 in the Fortune Global 500. The company had earned $2,585 million [13] on sales of $19,811 million. There were 60,850 employees.

Joint ventures and minority interests

LOral holds 10.41% of the shares of Sanofi-Aventis, the world's number 3 and Europe's number 1 pharmaceutical company. The Laboratoires Innov is a joint venture in nutritional cosmetics between LOral and Nestl; they draw on LOral's knowledge in the fields of nutrition and food safety. Galderma is another joint venture in dermatology between L'Oral and Nestl.

Community involvement and awards

In 2008, L'Oral was named Europe's top business employer by The European Student Barometer, a survey conducted by Trendence that covers 20 European countries and incorporates the responses of over 91,000 students. The L'Oral-UNESCO Awards for Women in Science was established to improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress. The awards are a result of a partnership between the French cosmetics company L'Oral and the United Nations Educational, Scientific and Cultural Organization (UNESCO) and carry a grant of $100,000 USD for each laureate. [1] The same partnership awards the UNESCO-L'Oral International Fellowships, providing up to $40,000 USD in funding over two years to fifteen young women scientists engaged in exemplary and promising [15] research projects. L'Oral organizes every year the L'Oral Brandstorm, an acknowledged business game for students in 43 countries. The game is related to marketing and has a first prize of $10,000, a second prize of $5,000 and a third prize of $2500. L'Oral is also involved in the "Look Good...Feel Better"- project which is a Beauty Industry Charity which was formed over 16 years ago to help woman combat the visible side effects of their cancer treatment of which L'Oral is a founder member.
[14]

Claims of racial discrimination in advertising, and other litigation

On August 11, 2005, the Supreme Court of California ruled that former L'Oral sales manager Elyse Yanowitz had adequately pleaded a cause of action for retaliatory termination under theCalifornia Fair [16] Employment and Housing Act, and remanded the case for trial. The case arose out of a 1997 incident in which Jack Wiswall, then the general manager for designer fragrances, allegedly told Yanowitz to fire a dark-skinned sales associate despite the associate's good performance. When Yanowitz refused, Wiswall pointed to a "sexy" blonde-haired woman and said, "...get me one that looks like that." Wiswall retired as president of the luxury products division of L'Oral USA at the end of 2006. In May 2007, L'Oral was one of several cosmetic manufacturers ordered by the Therapeutic Goods Administration in Australia to withdraw advertising regarding the wrinkle removal capabilities of their [17] products. In July 2007, the Garnier division and an external employment agency were fined 30,000 for recruitment practices that intentionally excluded non-white women from promoting its shampoo, "Fructis [18] [19] Style". L'Oral is reported as saying the decision was "incomprehensible", and would challenge the measure in court. In July 2007, the British Advertising Standards Authority attacked L'Oral for a television advert on its Telescopic mascara, featuring Penlope Cruz, stating "it will make your eyelashes 60% longer." In fact, it only made the lashes look 60% bigger, by separating and thickening at the roots and by thickening the [20] tips of the lashes. They also failed to state that the model was wearingfalse eyelashes.

In July 2011, the British Advertising Standards Authority took action against L'Oral, banning two airbrushed Lancme advertisements in the UK featuring actress Julia Roberts and supermodelChristy Turlington. The agency issued the ban after British politician Jo Swinson argued that the two ads misrepresented reality and added to the self-image problem amongst females in the UK. L'Oral acknowledged that the photos had been airbrushed but argued that the two cosmetic products could actually produce the results depicted in the ads and that the results of the products had been scientifically [21] proven.