In 1909, Eugène Schueller, a young chemist with an
entrepreneurial spirit, founded the company that was to become the L'Oréal group.it is the worlds largest cosmetic company and has develop activities in the field concentrating on hair colour, skin care, sun protection ,make up,perfumes etc.
ABOUT BCG(Boston consulting group)- The Boston Consulting
group's product portfolio matrix (BCG matrix) is designed to help with long- term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. The BCG group measures the activity of the organization mainly focusing on market share and market growth.
MARKET SHARE-Market share is the portion of the total sales covered
by the organization in the market or the percent of the total sales in an industry generated by company. MARKET GROWTH- The rise in the demand for the product or service in the market. BCG MATRIX OF LOREAL
Question Mark( L’Oréal LuxeL’);Oréal Luxe is in the
segment of ‘Question Marks’ of the BCG matrix. Question Mark means that the company has a low market share and highgrowth. Question marks are products which may give high returns but at the sametime may also flop and may have to be taken out of the market. Stars(Loreal Shampoo): Loreal shampoo is in the segment of STARS of BCG matrix as it is the most demanded product of loreal. It also have the high market rate and high market shares as well. Cashcow( Loreal Hair color);The hair color of loreal falls under the cashcows because the product Has low growth rate but a high market share.There is relatively high chance of the product to be dogs from cashcows. The haircolor of lorreal was named stars before 2 years. DOGS(Cleansing water):The high cost and low quality of cleansing water of lorreal makes it the dogs of the organization.IT doesnot have potential to to make a strong comeback in the market because they are cash straps. BCG MATRIX Question marks(High STARS(High market market growh low market share and high growh share) rate)
Cashcows Dogs ( Low market growth rate and (Low market growth rate high market share) and low market share)