L’Oréal : Global Brand, Local Knowledge

Market: US, North America, Western Europe, India, China, Pakistan and emerging markets.
Target Audience: Men and women of above mentioned markets
Pricing: Ranges from low to high priced.
Category of Products: Consumer, Luxury, Professional, Active Cosmetic Products
Core Business: Hair Colour, Hair Care, Skin Care, Colour Cosmetics, Fragrances
USP: Change in mindset from production centric (‘hope in jar’) selling of beauty product to
consumer centric (‘science of beauty in a jar’) beauty product.
Merger & Acquisitions: Maybelline, Unisa, Jade, Soft Sheen, Carson Products Co., Mininurse,
Yue Sai
Modes of Advertisement: Print, Social Media, Mass Media

Differentiating factors:
 Greater investment in Research & Development (3100 research employees in 18 research
and 12 evaluation centres).
 Adaptation of global products to local markets by developing local innovations to roll out
regionally. For example: Garnier Men
 Strong ability to give acquired brands a makeover and roll out them globally. Example:
Maybelline
 Geocosmetics: to study beauty trends around the world in order to have better
understanding of consumers at local level.
 Selection of brand ambassador based on their ability to tap into all ages, races, sexes.
 Internal Marketing: Building trust among employees. Early adaptation of digital technology
to give personalised consumer experience. For example: ELLE 3D Scanning booth, User
generated website
 Online personal beauty guidance from experts and stylist. For example: Michelle Phan
providing beauty tips.
SWOT ANALYSIS:

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TOWS ANALYSIS:
This analysis has been done keeping in mind L’Oreal’s aim to double its customer base to 2 billion people
by 2020 and increasing its share of sales from 30% to 50%.
SO Strategy: Using internal strengths to exploit external opportunities-

 L’Oreal can leverage its innovative prowess in product diversification and marketing to
widen its consumer base by venturing into baby care products, as they already have a
credible image in the females (mothers) minds.
 As L’Oreal has penetrated into the rural market by setting up kiosks, it can enhance its
brand image through CSR activities in those areas which would in-turn contribute to rise in
sales.
 The best way forward to achieve its goal is to leverage all the internal strengths as
identified above in the SWOT Analysis to revive the huge European and American markets
WO Strategy: Aims at improving the internal weakness by taking advantage of external opportunities-

 Huge workforce can be strategically employed in tapping the African, Middle East markets
and reviving European and American markets.
ST Strategy: Using strengths to avoid or reduce the impact of external threats-

 Being a cash rich and aggressive company, L’Oreal can acquire a company, which seems to
be a threat. This only adds to its productive capacity and enhances its efficiency and
effectiveness.
 L’Oreal is a consumer sensitive company and produces goods as per the demography,
which minimizes the threat from local companies.
WT Strategy: Aims at reducing internal weaknesses and avoiding environmental threats-
 Venturing into African and Middle East national using high investment in digital media
before competitor acquiring majority share of the market.
LEARNINGS:
1. Effective brand positioning and proper segmentation of individual brands
2. Marketing used as strategy for recruiting.
3. Global reach out by tapping into local market.
4. Effective Financial Strategy: Distribution of resources to various verticals.
5. Incorporate effective marketing strategies in micro as well as macro environment of
L’Oréal.

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