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CONTENTS:

1. INTRODUCTION
2. OBJECTIVES
3. RESEARCH METHODOLOGY
4. COMPANY PROFILE
5. LITERATURE REVIEW
6. DATA PRESENTATION AND ANALYSIS
7. FINDINGS
8. CONCLUSION
9. LIMITATIONS
10. RECOMMENDATION
11. BIBLIOGRAPHY
12. ANNEXURE
INTRODUCTIO
N
INTRODUCTION:
LOreal is the global leader in cosmetics, with 25 brands. They have 5 key areas
of expertise hair care, hair colorants, skincare, make-up and fragrances. There is a
huge motive behind the study of LOreal.

The study will help us to understand


the operations which are carried out by LOreal. The operations such as marketing
strategies, business plans, company at a glance, business structure, management and
operating structures , competitors position as per this company, business development,
discussion of business strategies, SWOT analysis to understand the different pros and
cons of the company, so as to report properly to operate effectively and deal smartly.
This study offers a comprehensive analysis of the organization, its
business segments, and competitors. It analyzes the business and marketing strategies
adopted by the company, to gain a competitive edge in the industry. The profile also
evaluates the strengths of the company and the opportunities present in the market. This
study presents the key facts & figures, business description, products & services offered
and corporate timeline of the company. It involves analysis of the company at three levels
segments, organizational structure and
ownership composition. Both business and geographic segments are analyzed along with
their recent financial performance. It further discusses the major subsidiaries of the
company and the recent merger & acquisitions. It also examines the significant
developments and milestone that have taken place in the company. It is a form of news
analysis where the most critical company news is discussed. Also the factor Financial
Performance included in this study. It discusses the most recent financials of the company
and also compares the historical sales & income figures with the current and projected
figures. The objective is to evaluate the financial health of the company. The analyst
opinion and stock performance help anyone in evaluating the performance of the
company from an investors viewpoint.
The LOreal Group is the world's largest cosmetics and beauty company and is
headquartered in the Paris suburb of Clichy, Hauts-de-Seine, France. LOreal has
developed activities in the field of cosmetics, concentrating on hair color, skin care, sun
protection, make-up, perfumes and hair care. LOreal is active in the dermatological and
pharmaceutical fields. LOreal is also the top nanotechnology patent-holder in the United
States.
LOreal is a listed company, but the founder's daughter Liliane Bettencourt and the Swiss
food company Nestl each control over a quarter of the shares and voting rights.
The company's international brands include: Anais Anais, ARTec, BioMedic, Biotherm,
Cacharel, Dermablend, Drakkar Noir, Garnier, Giorgio Armani Parfums and Cosmetics,
Kerastase, Kiehl's Since 1851, La Roche-Posay, Lancme, L'Oreal Paris, L'Oreal
Professionnel, L'Oreal Technique, Matrix, Maybelline New York, Paloma Picasso, Ralph
Lauren Fragrances, Redken 5th Avenue NYC, Shu Uemura, SkinCeuticals, SoftSheen-
Carson, Vichy, Viktor&Rolf.
The company was originally founded in 1953 as Cosmair, Inc as the exclusive U.S.
licensee of the L'Oreal Group.
In 1972, L'Oreal unveiled the first TV ads for the "I'm Worth It" campaign for Preference
haircolor which would help boost sales.The company's acquisitions have led to
significant growth which include: Redken in 1993, Maybelline in 1996, Soft Sheen in
1998, Matrix, Kiehl's and Carson in 2000, ARTec in 2002 and SkinCeuticals in 2005.
Cosmair would become a wholly owned subsidiary of L'Oreal SA Paris in 1994
L'Oral India
LOral India Private Limited is a wholly owned subsidiary of LOral S.A.
Headquartered in Paris, LORAL is the global leader in cosmetics with 5 key expertise
in hair care, hair color, skin care, make-up and fragrances. LOrals leadership is
achieved through cutting-edge technology with a portfolio of well-known brands that
answer all beauty needs and are distributed in all channels.
Each brand benefits from considerable investments in research made by the L'Oral
Group. The Group's research efforts, unique in the beauty industry, permit each brand to
benefit from formulas specifically adapted to the needs of men and women worldwide,
within each market or distribution circuit that is present.
L'Oral India has over 600 employees and has a strong track record with
consistent double digit sales growth yearly.
OBJECTIVES
OBJECTIVES:

The main objective behind the study of this project is to evaluate the distribution
channel for LOreal Paris Company.

How the LOreal Paris company emphasis more on customers service.


RESEARCH
METHODOLOGY
RESEARCH DESIGN

A Research Design is the framework or plan for a study which is used as a guide in
collecting and analyzing the data collected. It is the blue print that is followed in
completing the study. The basic objective of research cannot be attained without a proper
research design. It specifies the methods and procedures for acquiring the information
needed to conduct the research effectively. It is the overall operational pattern of the
project that stipulates what information needs to be collected, from which sources and by
what methods.

Research is process of a systematic enquiry into facts and in depth study of


probing into a particular topic or subject, backed by the collection, complication,
presentation and interpretation of relevant data. It is an intelligent and scientific work,
which is an Endeavour to discover valuable facts.

Research must be based on the facts. Observable data forms a


sound basis for research. Inductive investigation leads greater support to research
findings, for analyzing facts, a scientific methodology of analysis must be developed and
result interpreted logically.

Following steps are undertaken to conduct this research:-

1. Selection of the subject.

2. Objectives of the study.

3. Collection of data.

4. Analyzing the data.

5. Title of the project.

TYPE OF DATA COLLECTED:-


There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary
data is data collected from indirect sources. These include books, the internet, company
brochures, product brochures, the company website, competitors websites etc,
newspaper articles etc.

The data is like heart of all types of research. This collection of data depends
upon the purpose for which the data is required .it is considered to be very important
steps as it is the basis of foundation of investigation.

a) Primary data:-

It is the data collected by a person for his own use obtained


from the findings. This is considered to be the first hand information. These are those
data which are collected by us to meet our own specific purpose.

The methods which are adopted for collecting primary data for the
purpose of this project report are as follows:-

i) Data through questionnaire-

A questionnaire has been prepared and filled by


the female customer who uses products of LOreal by doing market survey.

ii) Personal interviews:-

A direct personal interview of several users has been taken.


Their views were taken regarding the quality of the products which satisfy them by
fulfilling there requirements.
Other methods which are adopted for collecting primary data to
complete this project report are-

Secondary data:-

It is the data which is collected by some other person or the


organization itself for their own use, but, this type of data/information can also be used by
the researchers for his use as second hand information.

Sources through which secondary data for


this project report are collected by journals, magazines and internet.
COMPANY
PROFILE

Company Profile:
The LOreal Group is the world's largest cosmetics and beauty company. With its
registered office in Paris and head office in the Paris suburb of Clich, Haunts-de-Seine,
France, it has developed activities in the field of cosmetics. Concentrating on hair color,
skin care, sun protection, make-up, perfumes and hair care, the company is active in the
dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in
the United States.

LOreal is a listed company, but the founder's daughter Lillian Bettencourt and the Swiss
food company Nestl each control over a quarter of the shares and voting rights.

History:
In 1907, Eugene Schuler, a young French chemist, developed a hair dye formula
called Aureole. Schuler formulated and manufactured his own products, which
he then sold to Parisian hairdressers.

In 1909, Schuler registered his company, the Society Francoise de Tinctures


Inoffensive pour Cheveux ("Safe Hair Dye Company of France" literally "French
Society of Inoffensive Hair Dyes"), the original LOreal. The guiding principles of the
company, which eventually became LOreal, 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.

LOreal got its start in the hair-color business, but the company soon branched out into
other cleansing and beauty products. LOreal 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.

LOreal has five worldwide research and development centers: two in France: Almay and
Coevally; 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, LOreal controlled the film company Para vision, whose properties
included the Filiations and De Laureates libraries. Studio Canal acquired the Para vision
properties in 1994.

LOreal 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, LOreal purchased cosmetics company The Body Shop for 652
million.
Brands

Brands are generally categorized by their targeted markets, such as the mass,
professional, luxury, and active cosmetics markets. Garnier - L'Oreal's product, reached
the top 100 brands of The Brand Trust Report published by Trust Research Advisory in
India. Garnier was ranked in the 61st position in the list of Most Trusted brands of India.

Head office

L'Oral Group has its head office in the Centre Eugne Schueller in Clichy, Hauts-de-Seine,
near Paris.[18] The building, constructed in the 1970s from brick and steel, replaced the
former Monsavon factory, and employees moved into the facility in 1978. 1,400 employees
work in the building. The building is often referred to as the "Beauty Factory" by the public.
In 2005 Nils Klawitter of Der Spiegel said "the building, with its brown glazed faade of
windows, is every bit as ugly as its neighborhood." Klawitter added that the facility "gives
the impression of a high-security zone" due to the CCTV cameras and security equipment.
The world's largest hair salon is located inside the head office building. As of 2005, 90
hairdressers served 300 women, including retirees, students, and unemployed people, per
day; the customers are used as test subjects for new hair colours.

L'Oral USA has its headquarters in New York City, its New Jersey headquarters is in
Berkeley Heights.

.
Centre Eugene Schuler, LOreal head office, in Clich, France
Ethics:-

At loreal, they believe that lasting business is built upon high ethical
standards which guide growth, and on a genuine sense of responsibility
to the community at large

Supplier relations:-

LOreal is committed to building long-term


partnerships with suppliers, based on mutual respect, transparency and
sharing of information, strong communication and high standards.
The objectives of the company:-

Continue work to develop a loreal supplier code of conduct, for


release in 2009.

Issue an updated version of loreal purchasing code of ethics.

Work with other companies on supply chain initiatives.

Hold further capacity building workshops for suppliers on labour


standards and SH&E.

Continue work researching the root causes of supplier non-


compliance with our labour standards.

Encourage environmental innovations by suppliers.


PURCHASING-
SUPPLY
SUPPLIERS:-

RAW MATERIALS

PACKAGING

INDUSTREAL EQUIPMENT

INDIRECT PURCHASING

PROMOTIONAL ITEMS

MANUFACTURIN
G SALES
LOREAL FACTORIES STORES:-
DISTRIBUTION
(40):-
THE DIAGRAM
OF LOREAL
PURCHASING-
SUPPLY CHAIN:
CHAIN:
SUPPLY
SUPPLIERS:-

RAW MATERIALS

PACKAGING

INDUSTREAL EQUIPMENT

INDIRECT PURCHASING

PROMOTIONAL ITEMS

SALES
STORES:-
MANUFACTURIN
G DISTRIBUTION SUPERMARKETS

PERFUME SHOPS
LOREAL FACTORIES LOREAL WAREHOUSE
(40):- DEPARTMENT STORES
(65)
94% OF THE FINESHED ETC
GOODS

SUBCONTRACTORS:-

6% OF THE FINESHED
GOODS
LITERATURE
REVIEW
WHAT IS LOREAL?

LOreal is the global leader in cosmetics, with 25 global brands. It has five key areas of
expertise- hair care, hair colourants, skincare, make-up and fragrances. This company
has over 63,358 employees working currently. And it sells its products around in 130
countries all over the world. Its consolidated sales are recorded in over 17,063 in
million euros.

The company manufacture well above 4.7 billion units annually. It also
has investments above 560 million euros in R&D investments
DATA PRESENTATION

AND

ANALYSIS
DATA ANALYSIS & INTERPRETATION

1. Do you use cosmetic?


a) Yes
b) No

65% says- Yes and 35% says- No


2. Are you the LOreal customer?
a) Yes
b) No

70% says- Yes and 30% says- No


3. Do you wear make-up?
a) At parties
b) Always
c) When I want to
d) Outside home

Make-up
45
40
35
30
25
20
15
10
5
0
at Parties Always when I want to Outside home

40% says- At parties, 20% says- Always, 30% says- When I want to and 10%
says- Outside home.
4. How following face foundation have you used mostly?
a) Lakme

b) LOreal

c) Avon

d) Others

Face foundation
45
40
35
30
25

20 Loreal
15
10
5
0
lakme loreal avon others

25% says- Lakme, 40% says- LOreal, 15% says- Avon and 20% says-
Others.

5. Which is your Favorite face foundation?


a) Lakme

b) LOreal

c) Avon

d) Others

Favoritefoundation
45
40
35
30
25

20 Loreal
15
10
5
0
lakme loreal avon others

25% says- Lakme, 40% says- LOreal, 25% says- Avon and 10% says-
Others.
6. What is your skin type?

a) Rough

b) Dry

c) Smooth

d) Oily

e) Spotted

15% has Rough, 25% has Dry, 30% has Smooth, 20% has Oily and 10% has
spotted skin type.
7. How often do you use cream including night creams?

a) Once a day

b) Twice a day

c) Twice in a week

d) Three times in a week

UsingCream
45
40
35
30
25
20
15
10
5
0
once a day twice a day twice in a week three times in a week

25% says- Once in a day, 40% says- Twice in a day, 15% says- Twice in a
week and 20% says- Three times in a week.

8. How following creams you have used mostly?

a) Avon

b) Lakme
c) Fair n lovely

d) LOreal

e) Others

UsingL'Oreal
35

30

25

20

15 Loreal
10

0
avon lakme fair n lovely Loreal Others

10% says- Avon, 15% says- Lakme, 25% says- Fair n lovely, 30% says-
LOreal and 20% say- Others.

9. Which one you found more effective?

a) Lakme
b) Avon

c) Fair n lovely

d) LOreal

e) Others

MoreEffective
40
35
30
25
20
Loreal
15
10
5
0
lakme avon fair n lovely Loreal Others

15% says- Lakme, 10% says- Avon, 25% says- Fair n lovely, 35% says-
LOreal and 15% say- Others.

10. Number of customers satisfies with LOreal Product in comparison with other
companys product?
a) Lakme

b) Avon

c) LOreal

d)VLCC

e) Others

15% says- Lakme, 10% says- Avon, 40% says- LOreal, 25% says- VLCC
and 10% say- Others.

11.In dealing with make-up, will you take chance with your skin for experimenting
the products of LOreal Paris?
a) Agree

b) Agree a little

c) Neither agrees nor disagrees

d) Disagree a little

e) Disagree strongly

35% says- Agree, 30% says- Agree a little, 20% says- Neither agree nor
disagree, 10% says- Disagree a little and 5% says- Disagree strongly.
FINDINGS

FINDINGS:
On the analysis and interpretation of research conducted. It was found that certain
findings are very critical and are directly or indirectly affecting the LOreal Paris
products.

There is a good awareness of LOreal Paris cosmetics products among the


consumers.

The quality of LOreal Paris is very satisfactory viewed by the majority of


customers.

There is a neck to neck competition between LOreal, Lakme,


VLCC, etc

75% of the customers are fully satisfied with existing


quality While 25% are partly satisfied.

Majority of women are using LOreal Paris products.

Consumers prefer the LOreal products because it provides good quality, good
results, good services, etc and it all fulfills their needs.
CONCLUSION

Conclusion:

The competition is fierce in the multi-channel retailing environment. A business that


hopes to grow and prosper requires a comprehensive logistics and transportation strategy,
executed flawlessly. The dilemma for management lies in trying to meet consumers
growing expectations while keeping costs in check. In response to these issues of multi-
channel growth, more and more carriers are branching out to offer logistics services.
Those businesses that work to build successful relationships with logistics and
transportation vendors will find that their efforts lead to improved customer service and
profitability. Its not an easy task, but it is certainly one thats achievable with the tools
and technology available today.

LOreal Paris has been found to be the most preferred brand it meet the promise made to the
customer. Consumer relies on the LOreal Paris products because it provides good quality, good
results, good services, etc. So that customer may prefer LOreal Paris products. While conducting
survey I found that the customer may like the showrooms of the LOreal Paris products. They still
likes the easily availability of various products. So the LOreal products customers are fully
satisfied to use the products.
LIMITATIONS

LIMITATION:
LOreal Paris is involved in doing business for various product categories but in
this it only focuses on cosmetic products, which have to be considered.

In order to know consumer satisfaction for LOreal Paris only 50 female


customers were surveyed.

The region covered for analyzing was just the overview of the result which is not
enough for measuring the accurate data.
RECOMMENDATION

RECOMMENDATION:

The supply must be properly fulfilled so the need of the customer satisfies.

Target selling for the dealer / agent can increase the sales ofcompany.
The company must concern to the satisfaction of customer demand.

The company and dealer should develop its marketing information system.
up to date information of competitor's policy, price and product, target market, so
the company can know its strengths and weaknesses.

Brand preference studies reveal that comparatively there is more preference for
LOreal among consumers so in order to attract and maintain his consumers.
Advertising programs should be intensified.

Perception of the consumer is changing rapidly. They seek new benefits and
values in their preferred brand. Moreover, consumer likes to have brand at low
rate. So LOreal Paris should insert it so as to meet the changing preference of the
consumer.
LOreal Paris is the market leader in make-up products. Most of the consumers
are brand loyal. They should be treated as intangible assets. Loreal Paris should
ever strive to satisfy them.

It should keep revitalizing its product / brands.

Fulfill the consumer needs.


BIBLIOGRAPHY

Web Sites:
1. www.loreal paris.com
2. www.google.com
B) News-paper:
1. Times of India

C) Book:
1. Research Methodology: C.R. Kothari
ANNEXURE

QUESTIONNAIRE

Survey on Womens Responses towards


LOREAL (Cosmetics):

1. Do you use cosmetics?

a) Yes
b) No

2. Are you a LOreal customer?


a) Yes
b) No

3. Do you wear make-up?


a) At Parties
b) Always
c) When I want to
d) Outside home

4. How following face foundation have you used mostly?

a) Lakme

b) LOreal

c) Avon

d) Others

5. Which is your Favorite face foundation?

a) Lakme

b) LOreal

c) Avon

d) Others

6. What is your skin type?

a) Rough
b) Dry

c) Smooth

d) Oily

e) Spotted

7. How often do you use cream including night creams?

a) Once a day

b) Twice a day

c) Twice in a week

d) Three times in a week

8. How following creams you have used mostly?

a) Avon

b) Lakme

c) Fair n lovely

d) LOreal

e) Others

9. Which one you found more effective?

a) Lakme

b) Avon

c) Fair n lovely

d) LOreal

e) Others
10. Number of customers satisfies with LOreal Product in comparison with
other companys product?
a) Lakme

b) Avon

c) LOreal

d) VLCC

e) Others

11. In dealing with make-up, will you take chance with your skin for
experimenting the products of LOreal Paris?
a) Agree

b) Agree a little

c) Neither agree nor disagree

d) Disagree a little

e) Disagree strongly

NAME..

CONTACT NO. :.