L’Oreal

"think
global, act local"
L’Oreal1is the worlds largest cosmetics and beauty company . It mainly focuses on hair products ,skin care, make-up and perfumes but it also has an active role in the pharmaceutical field . It was founded in 1909 by Eugène Schueller but now it is being controlled by the founder’s daughter Liliane Battencourt (non-executive director and major shareholder) and the Swiss company Nestlei2

Going back in time Below are a few key dates of the company's century of existence3: * 1907: Eugene Schueller creates a hair dye called Aureale * 1928: Takeover of the Monsavon company * 1934: The brand Dop is launched * 1939: The Societe francaise des teintures inoffensives pour cheveux becomes L'Oreal * 1942: Francois Dalle joins Monsavon * 1948: Francois Dalle is appointed Joint General Manager of L'Oreal * 1957: Eugene Schueller dies aged 87, Francois Dalle becomes CEO4 * 1963: L'Oreal is listed on the stock exchange * 1964: Takeover of Lancome * 1984: Francois Dalle resigns, Charles Zviak becomes CEO * 1988: Lindays Owen-Jones, aged 42, becomes CEO of L'Oreal * 1989: Acquisition of Helena Rubinstein * 1996: Takeover of Maybelline
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http://en.wikipedia.org/wiki/L'Oréal http://www.docstoc.com/docs/19687630/L 3 http://www.thefreelibrary.com/Corporate+culture+and+values %3A+genesis+and+sources+of+L'Oreal's...-a0204931980 4 CEO- chief executive officer

hair loss so on…. actively supporting the development of its brands and continuing to expand the global reach. This allows the company to focus on providing its customers with paramount products and services. Developing new products Products evaluation SWOT analysis Strengths The leading and initial strength of L’Oreal is its constant research and development in the field of the beauty industry. Mission and Vision The company’s main mission is satisfying all costumer demands regarding the quality of the products and the price in order to fulfill each and everyone’s beauty aspiration Their vision is to invest in research. repair or color To identify the process of skin aging . Regardless of the tough competition in the cosmetics industry. Jean-Paul Agon becomes CEO of L'Oreal.* 2006: In April. the company has taken action in the area of pharmaceutics and dermatology in order to oversee the development of skin care 5 Each year the Group devotes 3% of its turnover to research and development . Since the company was formed in 1907 Eugene Schueller has continued to invest in cosmetics in order to improve quality and efficacy of its products through scientific innovation5 L’Oreal research missions are: Better understanding of healthy skin and hair (at the cellular level) To synthesize active molecules which protect. On the other hand. sun damage.. L’Oreal stays at the top of the list due to its continuous study.

This reduces the speed of operations and production due to the requirement of reporting to the Board Members of the company.and hair products. there are many contrasts as to what type of image and appearance they want to illustrate to the different consumer segments. the company’s profit margin is relatively low in comparison to minor rivals. Weaknesses One of the weaknesses that L’Oreal challenges is the complexity in the control of the company. the company’s advertising strategy is a vital function of L’Oreal’s company growth. As a final strength. Opportunities . The divisions that were mentioned previously in the company profile guarantee the quality and excellence L’Oreal wants its customers to perceive about its products. These activities are controlled and tackled by Sanofi-Aventis. they have conformed to the culture and ethics of their target market. On the other hand. Finally. This could be the effect of their advertising budgets and the size of the company. In order to attain this. They used this potency to reach and satisfy women from around the world. In other words their profit margin results do not match their anticipated end results. This is because of the various divisions that they have and the decentralized organizational formation. due to the fact that products are managed on a global scale. The company also faces obstacles when it comes to researching what division is liable for unfavorable outcomes.

This aspect is providing them with the chance to have top of the range products pointed directly to their name and this would consequently lead most customers to them. the aging and the masses of their target market. People of developed countries have access to the products of L’Oreal. but sometimes the company faces obstacles when it comes to connecting with average citizens from developing countries. cosmetics and perfumeries. L’Oreal faces the threat of other companies exceeding their profit. Due to the fact that they have an increasing demand in the area of hair styling and color. skincare. this provides them with an opportunity to concentrate in that area of specialization. people have started . On the other hand. L’Oreal is producing one of the top cosmetics products. due to the financial crises the attitudes of consumer spending has changed. the economic crisis also stands as a risk to the company because this could harm the possibility of increasing profit. Finally L’Oreal should grasp the opportunity of its superior market share due to the various patents registered by the company. Threats One of the major threats to L’Oreal is the increasing competition in the industry of cosmetics. Due to the fact that the cosmetics industry is a growing one. Even though.L’Oreal’s main objective is to satisfy their consumers by providing them with products that will improve the appearance of women that are of all ages. Another feature they could take advantage of is their increasing market that varies from the prosperous. Finally.

Also.hoovers. radio. and packages for each brand.com. design. and Shiseido6. The team designs the sales materials. with the increasing market in cosmetics. photo displays at airports and television optional strategies. Revlon. direct email. These four companies are the main players in the market. further study has also been done and no information has been found on L’Oreal’s indirect competitors. Estee Lauder Estee Lauder’s marketing strategy is formulated around its mission statement and this is due to the fact that the company wants to provide extraordinary quality products and services as the establishment for a concrete and loyal consumer foundation. The company has recently been intensifying its advertising techniques on media advertising and decreasing its actions of prom Estee Lauder frequently advertises in upscale magazines. Moreover. newspapers. The marketing and sales team spend a significant amount of time meeting with customers and checking activities of their rivals7.com . These strategies consist of Gift with Purchase and Purchase with Purchase. the damage could have been worse. However. www. and packaging. Revlon 6 7 L’Oreal SA. Estee Lauder cooperates in programs with retailers that allow them to formulate strategic advertising strategies. advertisements. and Shiseido. Revlon.edgaronline. We are therefore going to focus on discussing the promotional and advertising strategies of Estee Lauder. www. Business. Specific in house creative teams prepare and organize all the advertising and creative work for Estee Lauder. Competitor Analysis Research has proved that there are no real threats to L’oreal as a brand.considering their products as more of a want and not a need anymore. although the top three competitors of L’Oreal are Estee Lauder. Each single brand of the company is uniquely placed as a single image and is promoted with uniform logos. Item 1.

decreasing the price of these fragrances can also be exerted since they have started the import if fragrance oil and part contract-manufacturer of fragrance gears and bottles locally which has obviously decreased the cost of goods sold. Shiseido has a more of an exclusive clientele strategy which allows it to target the market of aging women. Research has been done and no promotional. advertising.financial express. Revlon is starting to relaunch in its fragrance range by using the discounted price strategy and this is said to be an assertive action in the market. 8 Will Modi Revlon smell success with price cuts in fragrances.com .8 According to the sales and marketing director. This decision was taken after the sales and marketing director has seen that the mid priced segment has not been tapped in the market. Revlon decreased the prices of all its main fragrances by almost 50%. It is now having great success in the Rs 160 core fragrances market. This is clearly pointed towards at improving its existence in the market where it currently has a small market share. This new strategy will be announced officially through roadshows which will be done in 12 cities within the next month. or pricing information could be obtained. Shiseido This company cater to the aging market because it focuses on superior quality products because it emphasizes on products that are made naturally. www. According to the sales and marketing director of Revlon. Basically Revlon’s competitive advantage is price and it will use this advantage to gain more market share and increase its efficiency and productivity. This new pricing strategy has been implemented in only a few cities and it was received pretty well. “We are trying to fill the existing gaps in the fragrance market by re-launching a range of Revlon fragrances at reduced prices”.Revlon has succeeded highly after it has excelled in its color cosmetics with lipsticks and nail colors. Sanjeev Kapoor.

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