 Innovation and speed to market with the expansion of their consumer and geographic base

 Outspends their competitors on Research and Development, it accounts for 3.5% of their
revenue (Proctor and Gamble 2.7%, Revlon 1.7%)  Microeconomic environment, competitors:
trying to enhance its products in order for them to be better than their competitors. Brand
competition.

Production/Market expansion grid: growth opportunities through market development, market

penetration, product development, and diversification.
 Offers products environment with people’s needs, culture, and expectations.
 Selling beauty through different channels that correspond to customers’ profiles and purchasing
power. MARKET SEGMENTATION AND TARGETING, CULTURAL ENVIRONMENT
 Acquired Maybelline (new products, new markets) 1996. DIVERSIFICATION – acquired a new
business outside of the company’s products and markets. Aimed at a younger population
o Focus on younger population – demography; target them through advertising mostly
since they are aimed at all generations but mostly GEN Y and Z which embrace tech
o Advertising people of a wide range of age, cultural, ethnicity – different demographics
o Modernized speed and were able to boost sales by 93% from 1996 to 2002, spread to 70
countries by 1999.
 1999 – targeted men (existing product, new product) MARKET DEVELOPMENT in order to
increase company growth and also international markets they bought different companies
o UNICASA Chilean
o Maybelline US
o Jade German
 Target low-end, middle-end, and high-end consumers: CHANGING ECON ENVIRONMENT
o Emerging countries: lacked infrastructure so they set kiosks
o “Masstige” attainable and high prestige PRODUCT DEVELOPMENT (new product, existing
market)

 Catering to diverse populations, international portfolio

 Meeting consumers’ needs, for example: “geocosmetics” to study worldwide beauty trends and
deliver best products to and for each particular region. For example, China research center.
 Importance of advertising to create brand experience
 TECH ENVIRONMENT TO CREATE NEW PRODUCTS AND MARKETS – EMPOWER CONSUMERS:
Virtual personal stylist/Facebook pages
 Garnier (2007) customized website where they could put their views and inputs on hair styles
(even submit hair samples)  Customer engagement marketing: making a brand a meaningful
part of consumers’ lives and conversation by fostering direct and continuous customer
involvement in shaping brand conversations and experiences.
 Mission Statement – customer focused and does not state profits or sales. Satisfying customers’
needs not on particular products that can become outdated. Refers to beauty in general. L’Oréal
has chosen a unique strategy: Universalisation. It means globalisation that captures,
understands and respects differences. Differences in desires, needs and traditions. To offer
tailor-made beauty, and meet the aspirations of consumers in every part of the world. L’Oréal is
driven by this vision of the world.
- Using their salon network to gain more loyal customers / 4ps