Brand Architecture and Its Application

in Strategic Marketing:
The Example of L’oréal
R Harish*

L’Oréal is one of the world’s most successful cosmetics and beauty products companies,
which has been consistently achieving volume, value and profit growth even during times
when its competitors have faced a setback. What is the secret behind this continued
success? Many things perhaps, but its brand architecture strategy is definitely one of
them. The company has an amazing plethora of brands and sub-brands—about 500 in
number, which are marketed in around 130 countries. The use of brand architecture as a
strategic marketing tool and its dovetailing with the overall marketing mix has put the
French company, L’Oréal, in an advantageous position, compared to its competitors.
There is perhaps a lesson in L’Oréal’s approach to brand architecture for many other
companies.

Introduction ascribes a different degree of relative

Brand architecture is a comparatively new
and upcoming concept in the marketing
domain. It refers to the way a company
structures, names and positions its brands.
According to Aaker and Joachimsthaler
(2002), “Brand architecture is an
organizing structure of the brand portfolio
that specifies brand roles and the nature
of relationships between brands.”
Kapferer (1997) points out two main
functions of a brand: (1) to distinguish
different products from each other; and
(2) to indicate a product’s origin. He
highlights that as a company’s product
portfolio expands, it becomes difficult to
realize both these objectives simultaneously,
thus creating the need for a specific brand
architecture strategy. Kapferer explains six
brand architecture strategies, each of which
importance to the individual product and
its origin. Figure 1 graphically illustrates
the six brand strategies based on positioning
alternatives, as described by Kapferer.
Aaker and Joachimsthaler (2002) have
developed this concept further. Their view
is explained by the “Brand Relationship
Spectrum”, which is offered as a tool to
manage the brand-product relationship.
A simple way of understanding this concept
is that a company may follow a brand
architecture that is corporate-dominant
(branded house), product-dominant (house
of brands) or a mix of both. Typical
examples for each of these approaches to
brand architecture design are: corporate
dominant (the Virgin Group), product
dominant (Unilever) and mixed (Sony, e.g.,
Sony Mavica). Aaker and Joachimsthaler

About the Author

* Faculty Member, The Icfai Business School, Bangalore, India. E-mail: harishr58@gmail.com

Brand
© 2008Architecture and Its
The Icfai University Application
Press. In Strategic Marketing:
All Rights Reserved. 1
The Example of L’oréal
 Figure 1: Branding Strategies Based on Positioning Alternatives

Endorsing brand
Brand Function: Indicator of Origin

Source brand

Umbrella brand

Range brand

Line brand

Generic brand Product brand

Brand Function: Product Differentiation

Source: Adapted from “Strategic Brand Management” by Jean-Noel Kapferer,

Kogan Page, First South Asian Edition, 2000, p. 189.

suggest nine possible models of brand companies, with consolidated sales

architecture under four categories, which amounting to €17.06 bn in 2007. The
are explained diagrammatically, with phenomenal growth and success have been
examples, in Figure 2. achieved by consciously building, acquiring
and nurturing a large portfolio of brands—
From the above, the brand manager is each of which is positioned strategically to
confronted with various alternatives in the cater to specific market segments.
context of brand architecture, such as:
choice between umbrella and individual The opening lines of L’Oréal’s Mission
brands, integration of various brands, the Statement highlight the importance that
the company attaches to the management
structuring and positioning of brands as
of its brand portfolio: “The right to be
part of the marketing mix, and even the
beautiful day after day, L’Oréal strives to
handling of acquired brands. Here, an effort
make this a reality within the reach of every
has been made to examine how L’Oréal has
woman and every man. This ambition is
developed and nurtured its brand
reflected in a brand portfolio unequalled
architecture and used it as a strategic
anywhere in the world. Since its creation
marketing tool for building a large and
in 1909, the group has always considered
successful global business.
this mission of prime importance”.
An Unrivalled Brand Portfolio L’Oréal’s Brand Architecture:
in Beauty Products A Matrix of Umbrella Brands
L’Oréal has grown to be one of the world’s At the global level, L’Oréal’s brand
leading cosmetics and beauty products architecture is configured around a group

2 The Icfai Journal of Marketing Management, Vol. VII, No. 2, 2008

 Figure 2: The Brand Relationship Spectrum

Brand Relationship Spectrum

Branded Sub- Endorsed House of

House brands Brands Brands

Different Manster Strong Token Not

Same Co- Linked Shadow
Identity Brand as Endorse Endorse Conne
Identity Drivers Name Endorser
Driver ment ment cted

GE Capital Universal Touchstone

Virgin Toyota Ford Post-It Nestea MTV
GE –A Sony (Disney)
Corolla Taurus by 3M (Viacom)
Appliance Co.

Levi's Sony Micro- Citi Clean & KFC

HP Lexus
BMW Europe Walk- soft Financial Clear by (Yum!
Deskjet (Toyota)
Levi’s US man Office J&J Brnads)

Source: Adopted from “Brand Leadership” by David Aaker and Erish Joachimsthaler, The Free
Press,2002, p. 105.

of international umbrella brands, which are
about 25 in number. These umbrella brands
are clustered under certain business
divisions, each of which focuses on a
specific target market. L’Oréal’s business is
organized under three divisions (Consumer
Products Division, Luxur y Products
Division and Professional Products
Division) and one department (Active
Cosmetics Department). In addition, there
is a British ethical cosmetics brand—The
Body Shop, acquired in 2006, which is
treated as a distinct business unit.
The division-wise share of total sales during
2007 is as follows: Consumer Products –
53%, Luxury Products – 25%, Professional
Products – 15%, Active Cosmetics – 2%
and The Body Shop – 5%. Geographic
region-wise contribution to total sales is as
follows: Western Europe – 46%, North
America – 25 %, Eastern Europe and Latin
America – 7% each, Japan – 2%, Rest of
Asia – 8% and Others – 5%.
The consumer products division offers hair
care, skin care, make-up and perfume
products, for the mass market under five
prominent international brands—L’Oréal
Paris, Garnier, Maybelline New York,
SoftSheen Carson and Le Club des
Créateurs de Beaute (LCCB).
Within the Consumer Products Division,
L’Oréal Paris is the premium brand, while
Garnier and Maybelline New York are the
fl ank ing aspiration al bra nds. T he
company thus tries to retain different
categories of customers in its fold, who
ma y othe rwise have fl ock ed to
competitors’ brands. Each brand has a
distinct chara cte ristic a nd ima ge
associated with it. L’Oréal Paris embodies
sophistication and supreme elegance,
while Maybelline New York is positioned

Brand Architecture and Its Application In Strategic Marketing: 3

The Example of L’oréal
as a street smart value-for-money brand
for the younger generation.
The luxur y products division offers
up-market premium products to discerning
consumers. There are five master brands in
cosmetic products—Lancôme, Biotherm,
Helena Rubinstein, Kiehl’s and Shu
Uemura. All these are acquired brands, and
have strong and distinct individual
legacies. In addition, the world’s top
perfume brands, such as Giorgio Armani,
Ralph Lauren, Cacharel, Victor & Rolf and
Diesel also form part of this division.
The professional products division provides
products to meet the requirements of hair
dressers/salon professionals and salon
customers. There are five important
umbrella brands under this division—
L’Oréal Professionnal, Kérastase, RedKen
5 th Avenue NYC, Matrix and Mizani.
L’Oréal Professionnal, from the home
country, France, is at the apex. The flanking
brands are Kérastase from France, and
RedKen and Matrix from the US.
The active cosmetics devision offers skin
care, sun protection, hair care and make-
up products. It has five prominent brands
under its fold: Vichy, La Roche-Posay,
Innéov, SkinCeuticals and Sanoflore. They
offer consumers proven safety and
effectiveness, supported with professional
advice from pharmacists and
dermatologists.
Each division is targeted at a specific market
segment and is accordingly characterized
by its own distribution system. Brands in
the consumer products division are
distributed through mass-market retail
outlets; with the exception of LCCB, which
is the direct marketing brand. The products
of the luxury products division are mainly
sold through international departmental
stores, travel retail outlets, perfumeries and
4 The Icfai Journal of Marketing Management, Vol. VII, No. 2, 2008
the respective brands’ own boutiques.
The professional product brands are sold
through salon professionals and hair stylists
and the active cosmetics are sold through
pharmacists and specialist retailers.
Many of L’Oréal’s star brands are from
countries other than France, such as UK
(Biotherm and The Body Shop), Italy
(Giorgio Armani, Diesel), The Netherlands
(Victor & Rolf), Japan (Shu Uemura),
China (Yue-Sai) and the US (Maybelline,
RedKen, SoftSheen Carson, Mizani).
L’Oréal has adopted a conscious strategy
of retaining and nurturing the cultural
associations of its acquired brands.
The most outstanding example is that of
Maybelline, which is promoted in more
than 90 countries positioned as an
aspirational brand from the US, thereby
resulting in substantial sales outside the
home countr y. SoftSheen Carson and
Mizani are brands that cater specifically
to persons of African descent.
At its apex, L’Oréal’s brand architecture is
broadly configured after the ‘house of
brands’ model. Among the major
international brands, two brands—L’Oréal
Paris and L’Oréal Professionnel—are named
after the parent company. Several of the
other major brands such as Garnier,
Maybelline, Biotherm, Lancôme, Helena
Rubinstein, Kiehl’s and Shu Uemura owe
their origins to the names of companies that
were acquired by L’Oréal from time to time.
In essence, they were earlier ‘corporate
brands’, which have now become ‘umbrella
brands’ with their own distinct identities.
L’Oréal is not used as an endorser when
promoting these brands. In some instances,
such as in the case of Diesel, Giorgio
Armani and Ralph Lauren, L’Oréal has the
license to market perfumes and fragrances
in these brand names.
 Table 1: L’Oréal’s Multiple Umbrella Brand Architecture Showing
the Major Brands, their Positioning and Sales Channels
Consumer Luxury Professional Active
Products Products Cosmetics The Body
Products
Division Division Department Shop
Division
Major international umbrella brands:

1. L’Oréal Paris 6. Lancôme 16. L’Oréal 21. Vichy

2. Garnier 7. Biotherm Professionnel 22. La Roche-
3. Maybelline 8. Helena 17. Kérastase Posay
New York Rubinstein 18. RedKen 5th 23. Innéov 26. The
4. SoftSheen 9. Kiehl's Avenue 24. SkinCeuticals Body
Carson 10. Shu NYC 25. Sanoflore Shop
5. Le Club des Uemura 19. Matrix
Créateurs Perfumes: 20. Mizani
de Beaute
11. Giorgio
(LCCB)
Armani
12. Ralph
Lauren
13. Cacharel
14. Victor and
Rolf
15. Diesel

Positioning:
Quality Up-market Specialist Cosmeceuticals Ethical
products at luxury products for use with proven cosmetics for
affordable products for by professional safety and socially and
effectiveness;
prices for the discerning hair stylists and environmentally
backed by
masses consumers salon conscious
pharmacists and
professionals consumers
dermatologists
Sales Channels:
Mass market High-end Hair stylists and Pharmacies Predominantly
retail outlets international salon and specialist through Body
in the case of department professionals retailers Shop’s
CE plz chk
is it L’Oréal Paris, stores, travel exclusive
departmental Garnier, retail outlets, retail chain
stores? Maybelline and brands’ own
SoftSheen boutiques and
CarsonDirect perfumeries
marketing for
LCCB
Source: Based on the information at http://www.loreal.com/_en/_ww/brands-l-oreal.aspx and other
related links (as of March 2008).

Brand Architecture and Its Application In Strategic Marketing: 5

The Example of L’oréal
L’Oréal’s brand architecture indicating the
major umbrella brands, their positioning
and distribution channels, is presented in
Table 1. Each of these umbrella brands,
in-turn has under its fold numerous line
and product brands. In effect, the brand
architecture that we have today is what
one may call a matrix of umbrella brands,
each with a hierarchy of range/line brands
and product brands which target different
groups and levels of clientele.
Line/Product Brands
under the Umbrella Brands
Why is L’Oréal promoting several range/
line brands and sub-brands under each
umbrella brand? Would not the umbrella
brands themselves suffice?
Firstly, there is a wide diversity of products
under the umbrella brands. For example,
under L’Oréal Paris, there are five categories
of products: skincare, cosmetics, hair color,
hair care and styling. Under skincare itself,
there are four lines: face, body, sun protection
and men. Under each line, there are a
number of products. For example, under
skincare-face, one would have moisturizers,
tightening and toning gels, creams for
removing wrinkles, and so on. L’Oréal offers
distinct brands/sub-brands for each of these
applications so that the products are
uniquely identified and positioned. The
umbrella brand acts as the endorser, while
the individual line/product brands provide
the necessary differentiation.
Table 2 provides a category-wise list of line/
product brands under the L’Oréal Paris
label that are sold in the US market.
In all these cases, L’Oréal Paris stands out
as the endorser. The product itself is
identified either by a single product brand
name or by a dual name with a line brand
name followed by a product name.
6 The Icfai Journal of Marketing Management, Vol. VII, No. 2, 2008
Interestingly, Garnier too has a number of
skincare, hair care, styling and hair color
products. There is a distinct range brand
for each of these categories (Table 3) and
a number of line/product brands to identify
individual lines/products. In Maybelline
again, there are five ranges of products—
face, eyes, lips, nail and tools. There are
several lines under each range (e.g.,
foundation, concealer, powder, blush and
bronzer under the ‘face’ range). There are
many individual products with their
unique identifier brand names under each
line. Some examples from the US market
are presented in Table 4.
The more important aspect is that there are
similar products across umbrella brands.
Among the three umbrella brands under
consideration here, there are hair care and
hair color brands under both L’Oréal Paris
and Garnier (not to mention various other
brands in the Luxury Products and
Professional Products divisions). Some types
of skincare products are available under all
the three umbrella brands. Color cosmetics
are sold under both L’Oréal Paris and
Maybelline New York labels.
The strategy adopted by L’Oréal is to
position each of the umbrella brands as
distinct brands in their own right.
Collectively, they offer competition to other
companies under all segments by occupying
the entire category. When a consumer finds
L’Oréal Paris not suited to her needs for
whatever reason, there is a reasonable
likelihood that she would find either
Garnier or Maybelline or Helena
Rubinstein more to her liking, and thus
remain a customer of some brand within
the L’Oréal group. The numerous brands
thereby complement rather than
cannibalize each other, though they offer
overlapping products. Thus, the brand
 Table 2: L’Oréal Paris—Principal Brands in the US Market
Skincare Brands (Four Lines: F = Face, B = Body, S = Sun Protection, M = Men)
1. Acne Response F, M 13. Nutri Pure F
2. Active Daily Moisture F 14. Nutrissime F
3. Advanced RevitaLift F 15. Skin Genesis F
4. Age Perfect F 16. Sublime Bronze F, S, B
5. Age Perfect Pro-Calcium F 17. Sublime Glow F, S, B
6. Collagen Filler F 18. Sublime Slim B
7. Eye Defense F 19. ReFinish F
8. Eye Makeup Remover F 20. ReNoviste F
9. Futur-e F 21. Revitalift UV F
10. HydraFresh F 22. Visible Results F
11. Hydra-Renewal F 23. Wrinkle De-Crease F
12. Men’s Expert M 24. Wrinkle Defense F

Cosmetics Brands (Four Lines: F = Face, E = Eyes, L = Lips, N = Nails)

1. Age Perfect F 24. Glam Shine L

2. Air Wear F 25. HiP high intensity pigments F, E, L
3. Bare Naturale F, E 26. Hydra Perfecte F
4. Blush Delice F 27. Ideál Balance F
5. Brow Stylist E 28. Infallible F, L
6. Cashmere Perfect F 29. Lash Architect E
7. Colour Juice L 30. Lash Out E
8. Colour Juice Stick L 31. Le Kohl E
9. Colour Riche Gloss L 32. Lineur Intense E
10. Colour Riche Lipcolor L 33. Make-up Artiste Brushes E
11. Colour Riche Lip Liner L 34. Micro Liner E
12. Colour Riche Star Secrets L 35. Panoramic Curl E
13. Crayon Petite L 36. Pencil Perfect E
14. De-Crease E 37. Pro Manicure Nail Polish N
15. Double Extend E 38. Telescopic E
16. Dual Sharpener E 39. Touch-On Color F, E
17. Endless L 40 Translucide F
(Contd...)

Brand Architecture and Its Application In Strategic Marketing: 7

The Example of L’oréal
 Table 2: L’Oréal Paris–Principal Brands in the US Market (...contd)

18. Endless Kissable L 41 True Match F

19. Endless Kissable Shinewear L 42 Visible Lift F
20. Eye Make-up Remover E 43 Volume Perfect L
21. FeatherLash E 44 Volume Shocking E
22. Feel Naturale F 45 Voluminous E
23. Glam Bronze F, E 46 Wear Infinite E
Hair Color Brands (Two Lines: A = All-Over Color; H = Highlights and
Professional Techniques)
1. Chunking H 10 Frost & Design H
2. Color Pulse A 11 Haircolor Remover H
3. Colorspa Moisture Actif A 12 Hi-Light Styliste H
4. Color Rays H 13 La Petite Frost H
5. Couleur Experte A, H 14 Natural Match A
6. Excellence Creme A 15 Super Blonde A
7. Excellence CremeLights H 16 Superior Preference A
8. Féria A 17 Tone Refiner A, H
9. Féria Multifaceted Highlights H
Hair Care Brands Styling Brand
1. Vive Pro 1 Studio Line
2. Vive Pro Men
3. L'Oréal Kids

Source: http://www.lorealparisusa.com/_us/_en/default.aspx

Table 3: Garnier–Product Ranges and Brands in the US Market

Product Range Range Brand
Skincare Nutritioniste
Haircare Fructis
Styling Fructis Style
Nutrisse
Haircolor Nutrisse Multi-Lights
Colorbreaks

Source: http://www.garnierusa.com/_en/_us?home.aspx?overlay=1

8 The Icfai Journal of Marketing Management, Vol. VII, No. 2, 2008

 Table 4: Maybelline–Product Ranges/Lines
and Typical Brands in the US Market
Range Line Typical Brand
Foundation Super Stay Silky Foundation
Concealer Instant Age Rewind Double Face Perfector
Face Powder Dream Matte Powder
Blush Dream Mousse Blush
Bronzer Dream Mousse Bronzer
Eye Shadow Expert Wear Eye Shadow Duos
Eyes Liner and Brow Define-A-Brow Eyebrow Pencil
Mascara Define-A-Lash Volume Mascara
Lip Color Moisture Extreme Lipcolor
Lips Lip Gloss Volume XL Seduction Lip Plumper
Lip Liner Line Stylist Lipliner
Nail Nail Color Salon Expert Nail Color
Tools and Accessories Expert Tools Eyelash Curler
Tools Brushes and Applicators Expert Tools Face Brush
Removers Expert Eyes 100% Oil-Free Eye Makeup Remover

Source: http://www.maybelline.com/product/index.aspx

architecture is used in a very strategic way purchasing power of consumers from

for retaining customers.
Salient Features
of L’Oréal’s Brand Architecture
An analysis of the salient features of
L’Oréal’s brand architecture is already given
in a related article by the author and a
summary of the same is presented below.
Division-Wise Umbrella Brands
Catering to Distinct Market Segments
L’Oréal has used divisions that target
different markets as the basis for structuring
its brands, and not by the conventional
approach which is usually based on
product categories or geographic
boundaries. The major umbrella brands
offer products that cater to the tastes and
different socioeconomic and cultural strata,
from within the L’Oréal portfolio, without
any conflict or confusion in the consumer’s
mind. CE plz chk
this sub-
Competing Brands Within the Group Competing
head is it
Help Beat the Competition Brands
Within the
Having multiple self-competing brands Group Help
Beat the
helps innovation in product and market External
development in a large and dispersed Competition?
multinational firm. This enables internal
competition, and in the process,
competitive advantage is developed.
Leveraging on the Individual Identity
and Image of the Brands
L’Oréal has built relationships with
consumers by having distinct image and

Brand Architecture and Its Application In Strategic Marketing: 9

The Example of L’oréal
signage for each of its brands so as to
develop unique brand identities.
The company also focuses on reinforcing
the meanings of its brands and fully exploits
the advantages which are rooted in the
individual brands.
Integrating Acquired Brands
into the Brand Architecture
L’Oréal’s growth is to a significant extent
‘inorganic’. Acquisition of brands has been
an important driver for the growth of
L’Oréal. This also obviates the need to
develop fresh brands, and instead helps to
build on the existing distribution strengths
of the acquired brands.
Gaining Advantage from the Cultural
Origins of Acquired Brands
Many of L’Oréal’s important brands are
from different cultures, whose distinct
identities and origins have been promoted
to advantage. This marks a conscious
departure from the common strategy of
multinationals applying uniform global
marketing strategies across all markets,
including emerging markets as well.
Extending Core Technology Platforms
Across Brands
L’Oréal invests heavily in research and
development. Its innovations focus initially
at luxury brands, which are then adapted
downwards for more price sensitive markets.
Leveraging core technology platforms across
brands reduces costs and enables efficient
management of a diversified brand
architecture.
Using Brand Architecture
as a Strategic Marketing Tool
Strategic marketing is driven by the
context of a given environment and
essentially deals with the interplay of
three forces referred to as the strategic
10 The Icfai Journal of Marketing Management, Vol. VII, No. 2, 2008
three Cs, i.e., customer, competition and
corporation. Strategic marketing has also
implications for the marketing mix. Thus,
strategic marketing encompasses five
aspects: environment, customer,
competition, corporation and alignment
with the marketing mix. L’Oréal has used
its brand architecture quite effectively as
a strategic marketing tool to address all
these issues.
Environment
There is an increasing interest across the
world among consumers in personal care
and beauty. Consumption of cosmetics has
become more widespread. In particular,
growth of the cosmetics business has been
quite rapid in many developing countries.
The market for cosmetics has also spread
across socioeconomic categories. Even
people from the lower middle class aspire
to appear and feel good and are on the look
out for affordable cosmetics. Usage of
cosmetics among men too has been on the
upswing, even in emerging markets such as
India.
L’Oréal has remained constantly alert to
these developments in the environment and
has used its brand architecture to introduce
and promote brands in response to such
changes. Incidentally, while L’Oréal’s total
sales increased by 8% between 2006 and
2007, the growth rate has been the highest
in India (34.4%) and China (30%).
Customer
As discussed earlier, L’Oréal has a brand
architecture with a comprehensive portfolio
that caters to a wide range of customers
and their diverse needs.
Further, the diversity of brands addresses
certain characteristic aspects of consumer
behavior, particularly applicable to
cosmetics and personal care products. For
example, boredom with the currently used
brand and consequent brand switching is
comparatively more prevalent in personal
products. L’Oréal’s brand architecture
offers distinctly positioned and evidently
independent alternatives within its
portfolio. The possibility of brand
switchers continuing to remain customers
of the company is therefore higher.
Also, consumers are becoming more
environmentally and socially conscious.
The acquisition of the ethical cosmetics
brand—The Body Shop—helps to cater to
the needs of such consumers.
Competition
As obser ved earlier, L’Oréal’s brand
architecture addresses competition in
several ways. Firstly, it offers a formidable
array of uniquely positioned brands across
a wide range of cosmetics and beauty
products, thus posing a serious challenge
to competitors. Having self-competing
brands within the company sets the bar
high in both product development and
marketing, thus equipping the company
to face external competition much better.
Acquiring brands with local flavor sets a
higher entry barrier for competitors.
L’Oréal’s brand architecture is also designed
so as to effectively respond to the brand
architecture of its competitors. While
L’Oréal is the world leader in cosmetics and
beauty care products, the other major
players in this industry are Procter &
Gamble, Unilever, Shiseido, Estée Lauder,
Avon, Beiersdorf (Nivea) and Johnson &
Johnson, roughly in this order.
A quick exa min ation of t he bra nd
architecture of P rocter & Gam ble ’s
(P &G) cosmetics a nd bea uty ca re
business indicates that it has certain
Brand Architecture and Its Application In Strategic Marketing:
The Example of L’oréal
commonal ities wit h t he bra nd
architecture of L’Oréal. P&G too has
several umbrella/master brands such as
Olay in skincare, Head & Shoulders and
Pantene in hair care, Wella in hair color,
cosmetics and fragrances, Clairol (hair
coloring and hair care products), Cover
Girl (color cosmetics), Max Factor (wide
range of cosmetics), Old Spice (male
grooming products), SK-II (premium
beauty products) and Nicky Clarke (hair
care products sold through salons). P&G
also markets cologne brands such as Hugo
Boss, Gucci and Dolce & Gabbana. As
in the case of L’Oréal, several of P&G’s
cosmetics brands too have come into its
fold through acquisitions. For example,
Olay was acquired from Richardson-
Vicks, Clairol from Bristol-Myers Squibb
and Cover Girl from Noxell. Thus, brand
architecture is see n a s a stra teg ic
marketing tool by other multinational
companies too.
Corporation
The marketing strategy has also to be in
tune with the overall strategic plan of the
company/corporation. Quite obviously,
L’Oréal’s brand architecture has evolved in
tune with the company’s overall strategy
of growth through acquisition of different
businesses/brands, development of new
products through research, expansion to
new geographic markets, and configuration
of the total business into well-focused
divisions.
That L’Oréal has divided its business into
product-based divisions, rather than
dividing it on geographic basis, clearly
indicates that it is the products and brands
that form the focus of the business and not
geographic regions. Further, the divisions
are also closely aligned to different forms
of distribution, pricing and positioning.
11
Aligning the Brand Architecture
with the Marketing Mix
Brand architecture forms an integral part
of the marketing mix, with strong
implications for product positioning,
distribution and pricing. As already
observed, L’Oréal’s brand architecture is
structured keeping in view different market
segments and the positioning that is
required to address them. The distribution
channels are also customized accordingly.
The advertising and promotional methods
too are chosen in accordance with the
brand’s position in the market. The mass
brand Maybelline is promoted mainly
through TV advertising and brand
ambassadors. La Roche-Posay, the brand
positioned at solving skincare problems, is
promoted through dermatologists, skincare
specialists and professional beauty salons.
L’Oréal Paris relies to a significant extent
on public praise by professional cosmetics
consultants.
Conclusion
Brand architecture is a high level strategic
decision with several important managerial
implications including resource allocation.
Brand architecture also has long-term
implications, as brands have to be nurtured
and built over many years.
Unlike Unilever or Procter & Gamble,
L’Oréal operates in a comparatively limited
product range. In terms of cost and
managerial effort required, one could argue
that a single corporate or umbrella brand
would have been a better option. It could
also be said that a single umbrella brand
would help in delivering a common image
of the company to all consumers, without
confusing them with umpteen alternatives.
However, the lesson that we see from
L’Oréal is that diversity of products (even
12 The Icfai Journal of Marketing Management, Vol. VII, No. 2, 2008
within the limited range of cosmetics and
beauty products) and target markets
(different consumer needs, diverse
socioeconomic groups, various nationalities,
ethnic and cultural backgrounds, etc.)
makes it prudent to have a basket of
well-focused and structured umbrella
brands, which are positioned independent
of each other. This would ensure that there
is no confusion among the consumers or
any dilution of brand equity due to
pitching of the same brand at different
levels.
Examples from other situations suggest that
when a company has only one major
umbrella/corporate brand, it faces the
limitation that it cannot position itself
simultaneously to different market
segments and it also runs the risk of
impairing the image of the entire company,
even if any one of the products faces a
problem.
L’Oréal has therefore done well to have
a bra nd archit ect ure with mul tiple
um bre lla brands, each a ddressing a
diffe rent ma rke t se gme nt, and thus
positioned and marketed accordingly. The
brand architecture also is well aligned
with the company’s overall corporate and
marketing strategies. The brand image
and cultural linkages associated with the
acquired brands have been used to build
a powerful network of brands in inter-
related products, thereby occupying the
en tire cosm etics and pe rsonal ca re
domain, both by the way of product
variety and also in terms of the target
market segments.
Brand architecture is very important and
has to be consciously built in consonance
with the marketing mix and marketing
organization structure. In the current
context of liberalization and globalization,
companies are increasingly looking at
developing and introducing new products
and also expanding into new geographic
territories. Many Indian companies too
are going international, often aided by
acquisitions. The path followed by L’Oréal
definitely offers a lesson to such
companies, which may want to build a
strong international market base catering
to diverse product-market situations. An
important pointer is that a successful
brand architecture can be designed based
on target market segments, rather than
going by products or geographic regions
alone. 
References
1. Aaker David A and Joachimsthaler,
Erich A (2002), Brand Leadership, The
Free Press.
2. Kapferer Jean-Noel (1997), Strategic
Brand Management: Creating and
Brand Architecture and Its Application In Strategic Marketing:
The Example of L’oréal
Sustaining Brand Equity Long Term,
Kogan Page.
3. Harish R (2008), “L’Oréal: Multi-
Brand Architecture”, Marketing
Mastermind, Icfai University Press
(March).
4. h t t p : / / w w w. l o re a l . c o m / _ e n / _ w w /
brands-l-oreal.aspx and further links
5. L’Oréal 2007 Results, http://www.
loreal-finance.com/_docs/fichiers_
contenu/0000000335/Expose_Agon_
uk.pdf
6. http://www.lorealparisusa.com/_us/
_en/default.aspx
7. htt p: // w w w. g a rn ier usa. com/ _ e n/ _
us?home.aspx?overlay=1
8. http://www.maybelline.com/product/
index.aspx
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