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Started in 1909 when a chemist designed the 1st kind of hair dyes.

World leader: For the past century, LOral has pursued its adventure in the beauty industry to cement its position as the worlds leading cosmetics company. Market reach(customisation):A quest for diversity and a range of cultures to meet the needs of men and women around the globe and make beauty products available to as many people as possible; Research orientation: LOral has a long-standing policy of allocating 1/3 of the companys Research and Development resources to fundamental research projects, which are targeted at progressing knowledge in three main disciplines: skin, hair and color.

Initially formulated for makeup artists. M.A.C products remains professional at heart providing formulas that endure the rigours of backstage and studio. Also takes care of sophisticated everyday use.

Focused primarily on color and texture Skin Care: Cleansers and Make-up removers made for all skin types. Prep+ Prime: An optional product to be worn over moisturizer to retain a glow. Cosmetics(eye, Lips): A wide range of trendy and funky colors are on offer Face: Single foundation for all skin type, color or age (Finishing powders and bronzing powders are also available across)

Country

USA

South Africa

UK

Problem

Self Tanning Natural Skin(No bright colours) Busy schedule and expensive parlors Obesity
Sublime Bronze True Match Pro Manicure: Fast Pro Application Perfect Slim cream

No modification in skin tone but in texture Their hair and scalp are very dry
Cosmetic products with Collagen to reduce appearance of irregularities Elvive ,shampoos with more oil content

Dry Climate Skin sensitive to sun exposure

Customised Product

Skin Products: For normal to dry skin For dry to very dry skin Sunscreen: Till SPF 60 sunscreen

Country
Problems

Japan
1st Aging signs near already small eyes Bright Colors Preference for Whiter skin tone Age-lift creams for lifting Cosmetics Loreal White

India
Varied skin types Protection from Sun+Pollution

Australia
Self tanning Dull Hair

Product Customized

Gels, lotions and shampoos available for all types of skin UV perfect

Sublime Bronze Most hair products come with prokeratin+ ceramide

Country Problem

China Preference for wide eyes Scarcity of water in urban households

Saudi Arabia Beauty is of utmost importance and demand for premium skin care Preference for strong fragrances

Customised Product

1. Revitalizing eye shadow 2. Skin and hair Products customised to retain moisture content Moist all day moisturizing cream Moist Hydrating Lip Gel - fashion nude color Moist and cool matte anti shine live net liquid ice

Mattifying Minerals, Glow Minerals and Concealer Minerals. L'Oral Paris has created this range of 100% nature mineral products

Since all M.A.C. products are not widely available in all the markets, we decided to limit our research only to the basic cosmetics products viz., Lipsticks, Foundation, Eye Liner and Mascara. The following models were considered:
Product Lipstick Foundation Eye Liner Mascara Loreal Color Riche Lip Color Mauved 140 Magic Smooth Souffl Extra intense Liquid Pencil Eyeliner Voluminious M. A. C. New York Apple Studia Fix Powder Plus Foundation Penultimate Eye Liner Mascara X

USA

Australia
M.A.C. (Price in $) LOREAL (Price in $) M.A.C. (Price in $) LOREAL (Price in $)

UK
M.A.C. (Price in $) LOREAL (Price in $)

India
M.A.C. (Price in $)

Product

LOREAL (Price in $)

Lipstick Foundation Eye Liner Mascara

8.95 42.9 8.95 5.95

24.99 56.49 29 12.99

8.5 42.5 8.65 5.65

35.7 56.25 28.75 12.59

13.47 47.5 10.65 17.15

40.7 59.45 32.75 22.59

10.34 40.5 7.65 13.15

30.7 51.45 26.75 18.59

South Africa Product


LOREAL (Price in $) M.A.C. (Price in $)

Saudi Arabia
LOREAL (Price in $) M.A.C. (Price in $)

Singapore
LOREAL (Price in $) M.A.C. (Price in $)

Japan
LOREAL (Price in $) M.A.C. (Price in $)

Lipstick Foundation Eye Liner Mascara

10.34 43.5 8.65 16.15

34.96 55.45 29.75 19.59

19.05 49.03 16.65 21.15

40.7 60.45 31.75 28.59

13.34 39.5 12.65 11.15

21.58 42.4 26.75 19.59

15.34 43.5 10.65 17.15

37.66 56.95 32.75 23.59

Source: amazon.com In currency equivalent terms based on exchange rates as on 29/11/11 (Big Mac Index)

M.A.C. is considered to be a product of premium price segment and thus its pricing. LOREAL is also in the same league but with a pricing which is just below the M.A.C. In terms of pricing we see that both the brands are priced according to the market. While in developed countries like USA, UK the prices are comparatively higher than that in emerging markets like India, South Africa.

Selection of foreign intermediaries :- determine the choice of one distributor better than one another.

LOreal chooses through following ways: recommendations from business contacts prospecting direct requests by the distributor himself.

The chosen distributor does not sell direct rival products nor any other cosmetics products.

Monitoring: such as reporting, control of selling places, frequency of visits and type of contract, is said to be necessary in order to reduce information asymmetry that undergoes the exporter. Relational Dimension: By LOreal, it seems to be permanent concerning the marketing strategy, the objectives definition and problems solving. Shared values sound to be respect, common interest and integrity. These values are the basis of LOreal channel distribution good performance and success.
Control of the marketing mix, such as price, promotion, distribution and product.

http://www.unet.univie.ac.at/~a0025537/php/ABWLs/FK-Marketing/store1/Case_Avon_Loreal.pdf

Physical movement of goods:-Loreal relies on SDV logistics Inc to move products to the retail outlet for purchase by the end consumer.

Distribution Centre/Wareho using:-Both manufacturing plants as well as distribution centres in montreal.Centre x is a new distribution centre manages more than 600,000 orders/day

Selling function to retailers:-Loreals sells directly to retailers head offices. They deal with major retailers like Walmart,Loblaws and shoppers Drug mart apart from conventional distribution methods like malls and market places.

The group detains its highest number of distributors as well as no subsidiary Distributors, in this area, buy products directly to the headquarters and are provided thanks to the Hungarian subsidiary.

LOrals distribution channels:

direct distribution from the factory in South Wales distribution through retailers (supermarkets, chemists) direct distribution to hairdressersalons through a network of sales-representatives distribution through specialist cash- Door to Door sales campaigns are important sources of sales for Loreal and-carry outlets (profess. UK hairdresser products)

distribution intensity: intensive distribution attempt to achieve market coverage via multiple distribution channels (direct distribution vs. indirect through intermediaries) + selective distribution for special brands (Kerastase)

Penetrated Distribution Channel

The distribution channels are diverse from hair salons to super markets and hypermarkets, health and beauty outlets and direct mail.
The company sells to dermatologists, plastic surgeons, and high end spas L'Oreal products in India are marketed in a variety of distribution channels namely : mass market, pharmacies and salons

The distribution channel of these brands mainly through department stores, perfumeries, travel retail outlets, and the brands own boutiques

The mass brand Maybelline promote its brand mainly through TV advertising and product prolocutor.
La Roche-Posay, a brand positioned at solving skincare problem, is distributed by dermatologists, specialists of skincare and professional beauty salon.

Primary Distribution:Departmental Stores followed by speciality stores like Sasa,Masa.


Beauty and skin care salons(15% of sales) Direct Sales

Manufacturer/Distributor Estee Lauder

MAC Corporate Retail locations

MAC Kiosks

End Consumer

End Consumer

Direct to consumer via online and phone sales

http://learn.senecac.on.ca/~ekbingham/Channels.pdf

Physical movement of goods:-transport services of Canada cartage move merchandize from company operated factories directly to stand alone stores and retail kiosks Warehousing:-The factories also act as warehouses Selling function to retailers:-All MACs distribution methods are sold directly through company owned operations, there is no direct selling to the retailers

http://www.telperion.fora.pl/opowiadania-o-hp,1/mac-cosmetics-sale-our-distribution-channel-manage,1117.html

MAC Cosmetics intensive distribution takes place at mainly all MAC Pro stores.
MAC Pro stores are were you can find ALL MAC products such as pigments, empty palettes, some primers, and old and new limited edition items that you might not find at a counter such as Bloomingdales, Macys, or etc

MAC Pro stores always have products avaible in every outlet where target customers might want to buy it, such as the textbook states. Online Store

Because I am worth it slogan since 40 years Salon to Budget customer: United Nations of Beauty 35-45% of sales spent on advertising Product marketing drives focus on local market demands

Tie up with Melbourne Fashion Festival, Australian models eg. Megan Gale

Hire stars with huge fan followings eg. Gwen Stefani, Beyonce and who have a personal connect with the audience TVC: Beyonce, LeRouge

Ban on Airbrushed advertisements Free samples distribution Target on men as well as women Hugh Laurie TVC Gerard Butler TVC

http://www.guardian.co.uk/fashion/fashion-blog/2011/oct/24/brief-history-of-loreal

Competition with door to door salesmen Focus on mass marketing and advertising Offers personal beauty advice in stores

Guilty of racial discrimination in France->goes dark and lovely Look Good.. Feel Good Cancer Foundation

'All ages. All races. All sexes Innovative PR and unconventional marketing without spending millions of pounds in advertising Distributing cosmetics to make-up artists for top models and celebrities Endorsements through word of mouth Pull Strategy, focus on customer and not on sales

Affiliations with controversial artists and personalities Was the first to bring charity into retail

Gives out new launched products to be reviewed by various beauty websites and beauty blog owners MAC all over the internet: Pay Per Click via Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter

http://EzineArticles.com/1184789

290 subsidiaries, more than 100 distributors off-group and 42 plants, all spread out in about 130 countries, over 23 global brands LOreal is the leader of the cosmetic industry Continuous research and innovation Large advertising spend budgets: to increase internet advertising first landing, go local and globalization Takeovers of Asian brands such as Xiaohushi, Yue-Sai (Chinese brand) and Shu Uemura (Japanese brand) Acquisition of Americas Maybelline Provides complete beauty solution

MAC Makeup is attitudinally hip, artfully irreverent, dedicated fully to the art of self-decoration and the realization of the Individual Brand Personality: cosmopolitan, innovative, irreverent, Original, which has almost created a Cult like following. Loved by women of all ages, it is one of the few fashion brands which truly transcend age Pull strategy: Believe in marketing than selling Social Initiatives, Minimum Advertising budget Theme based products: eg. Barbie, Hello Kitty Collaboration with clubs, theatres

http://www.pwc.dk/da/detail/assets/glimmers-amid-the-gloomfinal.pdfhttp://www.pwc.com/en_GX/gx/retail-consumer/pdf/brazil.pdf http://www.loreal.com/ http://www.maccosmetics.in/ http://EzineArticles.com/1184789 http://EzineArticles.com/1184789 http://marketingdope.blogspot.com/2007/11/mac-cosmetics-story.html http://www.guardian.co.uk/fashion/fashion-blog/2011/oct/24/brief-historyof-mac http://www.businessweek.com/2010/99_26/b3635016.htm http://www.wpelz.de/studpraes/loreal.pdf http://www.telperion.fora.pl/opowiadania-o-hp,1/mac-cosmetics-sale-ourdistribution-channel-manage,1117.html http://www.123helpme.com/view.asp?id=47241 http://www.business-standard.com/india/news/india-among-l%60oreal%60stop-5-global-markets/313003/ http://irosado.blogspot.com/