MARKETING STRATEGIES

OF

Project Report submitted in partial fulfillment of the

requirement for the Degree
Of
Master of Business Administration
Session (2021 - 2023)

Prepared By Guided by
Kumkum Maheshwari Ms. Kanika Jindal
University Roll No. (ASSISTANT PROF)
Enrollment No. (MANAGEMENT
DEPARTMENT)

IME College, Ghaziabad

(Affiliated to Dr. A.P.J. Abdul Kalam Technical University,

Lucknow)
 DEPARTMENT OF MANAGEMENT
CERTIFICATE

This is to certify that the Project Report entitled ‘Marketing Strategies of L’Oreal’

submitted by Kumkum Maheshwari for partial fulfillment of the requirement of MBA,

embodies the Bonafide work done by her under my supervision.

KANIKA JINDAL
(ASSISTANT PROF)
(MANAGEMENT DEPARTMENT)
 DECLARATION

I hereby declare that the work presented in this report entitled ‘Marketing Strategies
of L’Oreal’ was carried out by me. I have not submitted the matter embodied in this
report for the award of any other degree or diploma of any other University or Institute.
I have given due credit to the original authors/sources for all the words, ideas,
diagrams, graphics, computer programs, experiments, results, that are not my original
contribution.
I have used quotation marks to identify verbatim sentences and given credit to the
original authors/sources. I affirm that no portion of my work is plagiarized, and the
experiments and results reported in the report are not manipulated. In the event of a
complaint of plagiarism and the manipulation of the experiments and results, I shall be
fully responsible and answerable.

Name: Kumkum Maheshwari

Enroll. No.:
Programme: MBA
 ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly contributed

in the development of this work and who influenced my thinking, behavior, and acts
during the course of study.

I am thankful to Ms. Kanika Jindal for her support, cooperation and motivation during
the training and for constant inspiration, presence and blessings.

Lastly, I would like to thank the almighty and my parents for their moral support and my
friends with whom I shared my day-to-day experience and received lots of suggestions
that improved my quality of work.

Kumkum Maheshwari
M.B.A
 TABLE OF THE CONTENTS

Page No.

1. INTRODUCTION OF THE TOPIC 1

2. OBJECTIVE 2

3. SCOPE OF THE STUDY 3

4. COMPANY PROFILE 4-14

5. RESEARCH METHODOLOGY 15

6. INTERPRETATIONS 16-20

7. RESULTS AND FINDINGS 21

8. CONCLUSIONS 22

9. LIMITATIONS OF THE STUDY 23

10. SUGGESTIONS AND RECOMMENDATIONS 24

11. BIBLIOGRAPHY 25

12. APPENDIX 26-27

ANNEXURE
 INTRODUCTION OF THE TOPIC

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.

Strategic planning involves an analysis of the company's strategic initial situation prior to the
formulation, evaluation and selection of market-oriented competitive position that contributes
to the company's goals and marketing objectives.

Strategic marketing, as a distinct field of study emerged in the 1970s and 80s, and built on
strategic management that preceded it. Marketing strategy highlights the role of marketing as
a link between the organization and its customers.

Marketing strategy leverages the combination of resources and capabilities within an

organization to achieve a competitive advantage and thus enhances firm performance

Marketing strategy involves mapping out the company's direction for the forthcoming
planning period, whether that be three, five or ten years. It involves undertaking a 360°
review of the firm and its operating environment with a view to identifying new business
opportunities that the firm could potentially leverage for competitive advantage. Strategic
planning may also reveal market threats that the firm may need to consider for long-term
sustainability.

Strategic planning makes no assumptions about the firm continuing to offer the same
products to the same customers into the future. Instead, it is concerned with identifying the
business opportunities that are likely to be successful and evaluates the firm's capacity to
leverage such opportunities. It seeks to identify the strategic gap; that is the difference
between where a firm is currently situated (the strategic reality or inadvertent strategy) and
where it should be situated for sustainable, long-term growth (the strategic intent or
deliberate strategy).

1
 OBJECTIVE

1. The objective of project is to comprehensively research on one of the

most successful brands L'Oreal.

2. Our research has been aimed at understanding the market share of

L'Oreal. Also, I have captured the market capabilities of L'Oreal hair care
Shampoos and conditioners.

3. I have research on the brand perception of the product by the customers

and customers loyalty towards the product.

4. I have also stressed on the 4P’s of marketing in relation to this product

and the marketing strategies that have been adopted by L'Oreal from time
to time.

5. I have also focused on the current leading competitors of L'Oreal and

conducted a brief study on their marketing strategies.

6. To know awareness of people towards L'Oreal Products.

2
 SCOPE OF THE STUDY

1. The study claims the effective impact of the unconventional yet creative
marketing strategies adopted by L'Oreal segmented towards the Indian
market and targeted towards the millennial of every age range.

2. Expresses the effect of types of marketing strategies on different types of

customers subjected towards the manner in which the product, in this
case, L'Oreal, is positioned in the market.

3
 COMPANY PROFILE

L’Oreal was founded in the year 1909 by Eugene Schueller, a French chemist who developed
an innovative hair color formula. Today, the L’Oreal Group is the world's largest cosmetics
and beauty company and it’s headquarter is in the Paris suburb of Clichy, France. It got its
start from the hair color business but soon it developed activities in the field of cosmetics,
concentrating on skin care, sun protection, make up, perfumes and hair care. L’Oreal main
branches are Cosmetics, The Body Shop and Dermatology. L'Oreal is active in the
dermatological and pharmaceutical fields, however Cosmetics is the key revenue generator
(See Exhibit I). It is also the top nanotechnology patent-holder in the United States. L’Oreal
famous advertising slogan is "Because I’m worth it". It has recently been replaced by
"Because you're worth it". Its portfolio of brands includes the cosmetics range of L'Oreal
Paris and Maybelline NY, shampoo range Garnier, luxury products such as Lancome and
active cosmetics such as Vichy. Its closest global competitor in the premium make-up
segment is Revlon.

India’s contribution to the growth of the global cosmetics market is about 60 percent. The
beauty and the wellness sector in India are on a boom. L’Oreal started its operations in India
thirteen years ago. The share of the Indian market to L'Oreal's turnover of 15.8 billion is
small, but is growing. It operates in India through its wholly owned subsidiary, L’Oreal India
has four divisions — consumer products, professional products, active cosmetics and luxury
products. The biggest contributor to its revenue in India is the consumer products division led
by its strongest brand in terms of sales - Garnier.

L’Oreal India has recently setup its own manufacturing plant in Pune. It imports most of its
products from its facilities abroad and manufactures the rest in Pune. The Indian subsidiary
headed by Chief Operating Officer Dinesh Dayal, who has been with the company for 20
years, is one of the key officials responsible for the formation and operations of L'Oreal
India. The operations in India are conducted through a judicial mix of global and local
methods of advertising to appeal to the Indian consumers.

L’Oreal advertising account is handled by Mccann Erickson. L’Oreal India has discovered
over the years, the behavior of the Indian consumers and has realized that the Indian
consumer is not as price conscious as is portrayed. The brand is more expensive than the
average FMCG, but offers a true value for money. The company’s growth in India can be
attributed to its innovation of new products, supply chain management, systems and structure.
Being the world’s second largest cosmetics major, L’Oreal is planning to foray into the Rs
1,000-crore Indian herbal and ayurvedic cosmetics industry. After identifying its targets,
L’Oreal India is in advanced talks with Biotique and VLCC to acquire herbal/ayurvedic
cosmetics brands. The group is taking the acquisition route to enter this niche sector. L’Oreal
has thus identified India as one of its top five growing businesses globally. L'Oreal's research
facilities in France, the USA, and Japan bring together more than 3,000 scientists and
research staff. Their discoveries are published in leading scientific journals. L’Oreal’s
innovations are patented, creating some 586 patents in 2004 alone.

4
 PRODUCTS STRATEGY

L’Oreal operates in India through four main divisions: consumer products, professional
products, active cosmetics and luxury products. The biggest contributor to its revenue in
India is the consumer products division led by its strongest brand in terms of sales —Garnier.

L'Oreal

Consumer Professional Luxury Active

Products Products Products Cosmetics

Consumer Products

Garnier fructice L’Oreal Paris

Professional Products

L’Oreal Professional Kerastase Matrix Keraskin

Luxury Product

Giorgio Armani Diesel Lancome Ralph Laurel Keihl’s

5
Active Cosmetics

La Roche-Posay Vichy

In the hair color segment, Garnier operates in the mid-price and luxury segment. This has
enabled it to garner a 20 per cent share in a market dominated by local hair colorants and
dyes. Garnier attributes its performance to being the first player in India to introduce a cream-
based hair color below the price of Rs 100 (2002) and the first home-highlighting kit (2005).

PRODUCT EXTENSION: -

Garnier mainly produces hair care products, including the Fructis line, and most recently,
skin care products under the name, Nutritionist, that are sold around the world. One of their
key ingredients is a fruit concentrate used in all their products. It is a combination of fruit
acids, vitamin B3, B6, fructose and glucose. Garnier, the L'Oreal- owned brand that shook up
the US hair care market with the introduction of Fructis in 2003, now has plans to bring over
its skin care collection too. While L'Oréal was focusing on hair color market in the initial
stages of its launch, Maybelline was in the premium color cosmetic segment while Garnier in
the "naturals" segment.

In 2000 L’Oreal launched its range of cosmetics in to Indian market. Garnier concentrated on
the Natural Hair care market with the main USP of strong hair. The brand positioned as a
Unisex brand mainly used its international campaigns in India to appeal to the Indian
consumer. Garnier believes in beauty through nature. Scientifically developed and enriched
with selected natural ingredients, its products help look healthy and feel good every day.

LINE EXTENSION: -

As mentioned above L’Oreal has been experimenting with their products a lot and they spend
a lot on R&D (SEE EXHIBIT II), they have done a huge line extension in their product line
up. Garnier itself has five different varients in its hair care segment (Shampoo), named as
Fructis, Fructis Oil Repair, Fructis Blonde, Fructis Men & Fructis Wave Definition.
Similarly, L’Oreal Paris has six variants, named as Elvive, Elseve Absolute repair Shampoo,
Elseve Vitamin Shampoo, Elseve Renuitrition, Vive Pro Thickening & Vive Pro Nutri Gloss.
Similarly, there are many more variants of other brands too.

BRAND EXTENTION: -

Acquiring influential and well positioned brand is an important strategy of L'Oreal in

developing its brand architecture. It achieves rapid growth by acquiring brand in same or
related business and is continually seeking these opportunities in the worldwide scope.

6
L'Oreal expanded its brand architecture by acquiring Maybelline brand in 1996, which was
a very successful transaction. The Maybelline’s image was enhanced by branded L'Oreal
while L'Oreal got complementary in its brand architecture. Recent years in Asia, it acquired
the third skincare brand Mininurse in China and Japanese top luxury brand Shu Uemura.
This shows that L’Oreal is very aggressive in building the brand architecture by acquiring
other influential brands.

PRODUCT DIFFERENTIATION: -

L’Oreal came with a product name Elvive Full Restore 5 which has differentiated itself from
the other products of L’Oreal. Initially L’Oreal came up with brands like Elvive Smooth-Silk
Light, Elvive Anti-Dandruff, Elvive Damage care etc. but after lauching Elvive Full Restore 5
they made it clear that this product is superior to the other as it includes all the important
features for which a customer was using different products.

PACKAGING STRATEGY: -

Most L'Oreal makeup products aren't bubble-wrapped on cardboard like Artmatic and Wet
& Wild - both serviceable products. L'Oreal displays are elegant. , who get up close and
personal with their sister-viewers, confiding that, yes, L'Oreal DOES cost a little more ... "but
I'm worth it.". This creates Consumer Affluence and hence customers are willing to pay a
little extra for its product. The packaging strategy of Garnier products create a brand image
in the mind of consumers, whenever a consumer sees the bright green packaging in hair
care segment, they relate it to Garnier.

Garnier, L'Oreal and Maybelline, the three brands of L’Oreal have been defined by their
price segments and positioning. The company has been steadily increasing its product
portfolio in the Indian market especially in the hair care segment. Its skin care brand of
Garnier has been extended to a shampoo and hair conditioner under the Fructis brand, in
spite of the presence of Garnier's Ultra Doux shampoo and hair conditioner. Its hair coloring
portfolio has also been given a boost and the company has decided to rope in Kareena
Kapoor as its new brand ambassador for its hair color brand of Garnier Nutrisse. Garnier
concentrated on the Natural Hair care market with the main USP of strong hair. The brand
positioned as a Unisex brand mainly used its international campaigns in India to appeal to
the Indian consumer.

Garnier has been able to establish itself firmly in the Indian market and has clearly defined
its target market which is the middle class and the upper middle-class segment. Garnier has
very effectively designed its promotional strategies by adapting to the changing customer
demand. It has penetrated firmly in the Indian market both in skin care as well as hair care
products covering a wide range from shampoos, conditioners, to gels, serums, hair mousse,
anti-acne ointments, anti-wrinkle creams etc.

Two main natural ingredients of L’Oreal skin products are Fructose and Glucose. The role of
Fructose and Glucose in nourishing hair is demonstrated in vitro culture of hair follicles.
Fructose and Glucose are fuel for hair. The main ingredients are-Fruit AHA (Alpha Hydroxy
Acids), Green Tea Extract, Caffeine, Anti Storage Gingko, Grape Seed Oil, Vitamins B3 and B6
& Fruit Oils.

7
 PLACE STRATEGIES

To run a company in profit the place factor out of the 4p’s of marketing mix plays a very
crucial role. This includes decisions about where to sell the product or concerns about where
the customers are, and how to get to them. It also includes the "channel of distribution" -
meaning, all the different middlemen a company use to get the product out to the customer.
L’Oreal’s success in the cosmetic industry is due not only to their high quality, but also to the
corporation’s marketing efforts to make sure their various brands have a strong market
presence. In past 100 years that it has expanded, it has supplied to 130 countries with offices
in 58 different countries. To make its presence feel in different parts of the world L’Oreal has
acquired many different companies like “The Body Shop International plc”, known as The
Body Shop, which has over 2,000 stores in more than 50 countries.

As stated above in the Product strategy L’Oreal believes in Brand extention its acquisitions
represent L'Oreal’s ambition to capture Asian market. They have the same product business
with L'Oreal. In China the acquisition will enhance L'Oreal’s market position in skincare and
acquire distribution channels Mininurse had. It is also a preparation for the future expansion
in the most fast-growing market China. By acquiring Shu Uemura, L'Oreal want to use this
Japanese brand to compete with SK-…¡which was a competitor in the same level, in order to
meet the trend of prevalence of Japanese cosmetic brand in Asia. This is considered to be an
effective and cost-efficient strategy which is consistent with L'Oreal’s overall brand
architecture

As we know the brand loyalty of L’Oreal is very high and hence L’Oreal follows a pull
strategy. Customers of L’Oreal goes directly to the outlets and buy the products.

DISTRIBUTION CHANNEL: - Second Level Consumer Marketing Channel

Manufacturer Wholesaler Retailer Consumer

ANALYSIS OF INDIAN MARKET

Garnier being an important brand of L’Oreal in both hair care and skin care is available all-
round the globe easily. In Indian market the hair care products of garnier like “garnier
fructis”, “ultra doux” etc is available in both organised and unorganized retail shops in India.
The high-end skin care products like “Nutritionsite” are available only in selected retail
outlets in country. In India Garnier manufactures its products in Pune whereas its registered
office is in Mumbai. To popularize its product line L’Oreal has occupied brand corners in
many big malls and retail outlets in which garnier products get a major chunk. L’Oreal has tie
ups with many big beauty salons and parlors who can promote and sell its products.

8
Over the past decade the company has trained more than 30,000 hairdressers in India in the
use of its products. And it has helped to establish about 300 salons in the past five years. The
theory is simple: If there is no natural demand for your goods, stimulate it.

“We have created a profession and a market,” Didier Villanueva, L’Oréal India’s country
manager, said. “If you train people, they will use your products.” Its sales in India, where it is
No 2 behind Unilever, are growing at 35 per cent a year. This year, they are about €100
million (£71 million). Although L’Oréal’s professional products division represents only 17
per cent of total revenues, hair color was the Paris-based group’s genesis and remains the
creative heart of the business. Money-spinning mass-market brands such as Garnier are being
pushed hard in India, where the company estimates there is a market of 50 million. Garnier
products are easily available for sale on many websites in India.

9
 PRICE STRATEGIES

The target segment for any product is that homogeneous group of people which is purported
to be the most potential customer for the product. The market follows the Pareto Principle,
which says that 80 per cent of the sales come from 20 per cent of the people. Thus, for any
product, one of the major tasks of marketers is to identify the group of 20 per cent that gives
80 per cent revenue of that product’s sale to the company. No surprise then that major
marketing efforts of companies attempt to attract the most potential group. In the present
stage of immense competition, companies are required to effectively plan their pricing
strategies to not only retain current customers but to also expand the customer base by
targeting new segments with an aim to convert them into loyal customers.

Trying to strike a balance in its pricing strategy for the Indian market, `L'Oreal India Private
Ltd believes that by introducing more stock keeping units (SKU's) it will be able to tide over
the steep pricing of its products.

L'Oreal is looking at pricing in the Indian context and there is a kind of balance they have
struck. Considering the large number of SKU's that they already have worldwide, they are
planning to market the products at an almost comparable pricing.

Considering the company has set up its manufacturing facilities in Pune and has also been
sub-contracting its products, it has been easier for it to control its prices in the Indian market.

For aspirational products Garnier has adopted an international pricing strategy, which may
not be the case for the rest of the products. However, there is no hard and fast rule. Besides,
the company has also been customizing its products for the Indian market and there is
expected to be a blend of both international as well as Indian formulations for its products.
For instance, its Garnier brand of Color Naturals is an `Indianised' product.

L'Oreal’s innovations always start from its luxury brands then penetrate to the brands in
different price level and different markets eventually implemented in its consumer brands.
The innovations based on the same technology platform will reduce the cost. The knack for
L'Oreal to create the advantages is to spread around strategic investment by sharing the
production of innovation between different product divisions. L'Oreal not only focuses on the
single brand but also pays attention to the technology relevancy in the series of brands. For
example, L'Oreal first introduced a break through anti-aging composite by using Lancôme
brand. Subsequently, it was implemented in Vichy brand and brought into the consumer
product division eventually. The broad distribution channel of consumer products was used to
promote this technology at last. In term of same products in the different market, L'Oreal also
exerts the technology platform to meet the specific needs of consumers. From L'Oreal’s
experiences, the core technology platform is a key component to the success of an
international company with complicated brand house. Without leveraging the resources
between brands, it will cause increase of operational cost and waste of resources and will be
very hard to manage the L'Oreal’s sophisticated brand architecture. Other than building the
brand structure according to the product identity, L'Oreal relied on distribution channel to
carry out its strategy of brand structure. There are four product departments in L'Oreal’s
structure. Every department has several brands and each brand has many names. They are
conspicuously different in packages and with distinct image and advertising. The different
brands share the resources of distribution channel and have high integration effect on
management. The luxury brands of L’Oreal are sold in strictly selected distribution channel
like department store, perfumeries and tax-free shop.

10
Professional products are provided to the hairdressers. Active cosmetic products are sold in
pharmacists. The most important sector consumer products are distributed through mass
consumption channel like department store and supermarket.

L'Oreal has formed a brand matrix with great power of integration. Any new brand merged
into the relevant channel will fully utilize the resources in existing channel as well as expand
L'Oreal’s whole distribution channel by integrating its original channel. The dissemination of
brand will improve company’s overall influential power.

L'Oreal recognized the leverage effect of it brand and focus its propagandas on brand rather
than propagandas on particular product. It is dedicated in building the relationship between
its brand and the market. It aims to enhance brand power by maintaining the good image in
publicities. L'Oreal’s efforts were also embodied on its marketing strategy. It always
concentrates on supporting those brands which can mostly represent its advantages and
leverage resources to those premium products. Firms that aim to expand internationally or
strengthen market position tend to acquire new brand into the brand architecture.

L’Oreal also follows the bundling strategy to increase its sales. They come up with a
customized make up kit and sell it at a discounted rate. By discounting such products,
L’Oreal taps the potential buyers easily.

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 PROMOTION STRATEGY

L’Oreal has been very active and upfront in adopting new promotional techniques to market
its products. The company follows a very popular technique to advertise and market its
products that was the Viral Marketing policy. Viral marketing is a term coined to define the
productive ways a marketing message is made available. And corporate are using the medium
to circulate brands and brand messages. The idea has caught on like a virus, as efficiently as
Information Technology has entered households and businesses.

Firms are now structuring their businesses in a way that allows them to grow like a virus and
lock out the existing brick and mortar competitors through innovative pricing and
exploitation of competitors' distribution channels. The beauty of this marketing technique is
that none of it requires any marketing. Customers, who have caught the virus, do the selling.
Viral marketing describes any strategy that encourages individuals to pass on a marketing
message to others, creating the potential for exponential growth in the message's exposure
and influence. Like viruses, such strategies take advantage of rapid multiplication to explode
the message to thousands, to millions.

Off the Internet, viral marketing has been referred to as "word-of-mouth'', "creating a buzz'',
"leveraging the media'' and even "network marketing.'' It's a deceptively simple concept:
Create a message, send it via e-mail, and make it so compelling that recipients want to pass it
on to everyone in their address book. Advertisers are hot on the tactic and the idea of putting
consumers to work spreading the word about a brand or service seems sound.

CONTEST: - When Garnier launched its Fructis shampoo, they latched on to the idea. The
firm had to introduce the aspect of five time’s stronger hair and the firm had a braid
competition whereby consumers could register on a site and create a knot on the Fructis
braid, as part of their entry into the contest. The knot creation was actually created (visually
presented on the site) and as a next step, consumers were expected to invite their friends to
visit the braid and add to their score. A record 76,000 consumers created their own knot on
the braid and forwarded the link to more than 82,000 of their friends, a survey report
indicated. Viral marketers practice delayed gratification. They may not profit today, or
tomorrow, but if they can generate a groundswell of interest from something free, they know
they will profit soon and for the rest of their lives. Since 'Free' happens to be the most
powerful word in a marketer's vocabulary, most viral marketing programmes have attached
themselves to it. The idea is to give away valuable products or services to attract attention.
And, more importantly, someone else's resources are depleted rather than our own. Garnier
has positioned itself as a lifestyle product mainly targeting teenagers and young girls. This is
very evident from Garnier ads be it for Garnier fructis shampoos or for hair color. In a recent
advertisement of Garnier hair color, a daughter advises her mother to try the product and thus
makes an attempt to promote product among middle- aged women. Hence, expanding the
base of the target segment gives a whole new market to marketers, provided they are
successful in convincing the customers of the second-rung segment.

POINT OF PURCHASE DISPLAY: - L’Oreal apart from its own outlet puts its product in
display at various places. We have seen L’Oreal stalls in malls, various unisex saloons, VLC
outlets etc. This kind of display allows the consumer to see the product and enquire about the
same.

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RELYING ON INTERNATIONAL AD CAMPAIGNS: - Increasing its ad spend for the
launch of its new products, L'Oreal has been relying more on its international campaigns to
make an impact in the Indian market. McCann Erickson in Mumbai handles the L'Oreal and
Maybelline account while Publicis India is in charge of Garnier. "The ad accounts have been
aligned according to our international affiliations with these agencies and we try to have a
mix of both the Indian and international ads," says Mr. Rajgopal.

L'Oreal India currently has three brands in its consumer products portfolio and there are
product overlaps between its hair care, skin care and color cosmetics brands. Garnier, L'Oreal
and Maybelline have been defined by their price segments and positioning.

OTHER PROMOTION STRATEGY: - The cosmetics giant is using hairdressing schools to

stimulate demand for products many Indians saw as an alien extravagance.

Since it opened its first academy in Bombay in 2006, 73 hairdressers have graduated. The
six-month course turns out professionals capable of working as a junior in one of the select
but growing number of international-standard salons in India’s big cities.

L’Oréal’s distribution network also plays a vital role. Over the past decade the company has
trained more than 30,000 hairdressers in India in the use of its products.

And it has helped to establish about 300 salons in the past five years. The theory is simple: If
there is no natural demand for your goods, stimulate it. “We have created a profession and a
market,” Didier Villanueva, L’Oréal India’s country manager, said. “If you train people, they
will use your products.”

In a media-driven culture obsessed with Bollywood, urban consumers are very demanding
and image is everything. They read glossy magazines such as Vogue, which launched an
Indian edition in September, and follow the changing fashions of their favourite celebrities.

Much like Britain’s tabloid fascination with David Beckham’s changing hairstyles, the recent
decision by Mahendra Singh Dhoni, the 26-year-old captain of the one-day cricket team and
the face of Brylcreem in India, to chop his long locks made front-page news.

Unprecedented economic growth in India, which is forecast by McKinsey to become the

world’s fifth-biggest consuming nation by 2025, has created a raft of opportunities for
international lifestyle brands.

Emerging markets such as India are driving the growth of the cosmetics industry. L’Oréal,
which uses Aishwarya Rai, the Bollywood star and former Miss World, as one of its
international faces, estimates there are 70 million potential consumers being created every year.

Its sales in India, where it is No 2 behind Unilever, are growing at 35 per cent a year. This
year, they are about €100 million (£71 million).

Although L’Oréal’s professional products division represents only 17 per cent of total
revenues, hair color was the Paris-based group’s genesis and remains the creative heart of the
business. Money-spinning mass-market brands such as Garnier are being pushed hard in
India, where the company estimates there is a market of 50 million people.

13
 SWOT ANALYSIS

STRENGTHS

Strong and Focused Brand Portfolio.

Presence in Emerging Markets.
Strong R&D Capability.
Variants available.
Geographical Coverage.

WEAKNESSES

Dependence on Western European Markets

Late Entry into Asian markets.
Unable to gain much of market share.

OPPORTUNITIES

Growth in Adjacent Categories.

Demand for Natural Cosmetics.
Growth of Direct Sales Channels
Changing Consumer Lifestyles.
Beauty products market growing with a significant rate.

THREATS

Competition from Private Labels.

Price Competition among Branded Manufacturers.

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 RESEARCH METHODOLOGY

The research methodology adopted is of descriptive type. The major purpose

of this research was the description of the state of affairs as it exists at present.
Even though there was no control over the variables. The cause was tried to
be discovered. The method of research utilized here was survey method. The
facts or information gathered were analyzed to make a critical evaluation of
the information.

3.1 Research Approach:

One had to depend mainly on primary data as first had knowledge was
required about market position of various brands in the market. So, our
actual study was conducted in 3 stages: -

First, we discussed with our guiding officers on the various parameters of

the project. We also talked informally with some consumers and retailers to
have some preliminary idea.
Next questionnaire was prepared based on priori discussion. Separate
questionnaire was prepared for established and unexplored markets.
Lastly the final questionnaire was prepared with various modifications to
the previous questionnaire.
Questionnaires were prepared for the consumers and retailers both.

3.2 Sampling Techniques: -

The stratified sampling method was followed. The population of all the
towns was not homogeneous. There exist people of different occupation. So
stratified sampling technique had to be applied in order to obtain a representative
sample.

3.3 Sample size: -

The sample size varied from town to town for consumers. In Shalimar
Garden the sample size taken was 100.

4 Data Analysis: -
The data were analyzed separately for each town. The findings resulting of
the analysis varied from town to town and the recommendations stated accordingly
arrived at after thorough analysis and recommendation stated accordingly.

15
 INTERPRETATIONS

1. TOTAL NUMBER OF WORKING AND NON-WORKING RESPONDENTS

Working
Non- 43%
Working
57%

Working Non-Working

The above pie diagram indicates that out of total 100 respondents surveyed, 43% are
working and the remaining 57% are not working and are mostly students.

2. L'OREAL USAGE AMONG WORKING RESPONDENTS

DON'T USE
30%

USE
70%

USE DON'T USE

Out of the total 43 Working respondents surveyed, only 30% of them don’t use any of the
L’Oreal product, the remaining 70% of the working respondents use L’Oreal products.
This indicates that the brand is popular amongst the working people.

3. L'OREAL USAGE AMONG NON-WORKING RESPONDENTS

DON'T USE
16%

USE
84%

USE DON'T USE

16
 Out of the 57 non-working respondents surveyed, about 84% of the respondents use L’Oreal
products which means about 47 out of 57 people use L’Oreal products and 16% of the
respondents don’t use any of the L’Oreal products. This again indicates that the brand is
popular among even the non- working respondents who are majorly students in my
survey.

4. PREFERENCE FOR SKIN CARE OR HAIR CARE AMONG WORKING RESPONDENTS

Hair Care
18%

Skin Care
78%

Skin Care Hair Care

Out of the 43 people who are working about 29 of them use L’Oreal products and out of
these 29 people, only 4% of the respondents use only skin care products and 18% of them
use only hair care products while a major chunk of 78% of the respondents use both skin
care and hair care product of L’Oreal.

This indicates that the customers are regular and loyal users of almost all the product lines of
L’Oreal.

5. PREFERENCE FOR SKIN CARE OR HAIR CARE AMONG NON-WORKING

RESPONDENTS

Skin Care
28%

Hair Care
25%

Skin Care Hair Care

Out of the 57 non-working respondents surveyed, about 36 of them use L’Oreal products. Out
of these 36 respondents, 25% use only L’Oreal hair care products, 28% of them use L’Oreal
skin care products and 47% of them use both hair care and skin care products of L’Oreal. This
again indicates that majority of people like both the segments of L’Oreal but unlike the
working consumers prefer L’Oreal skin care products over its hair care products.

17
6. USAGE FREQUENCY AMONG WORKING RESPONDENTS

9%
22%

69%

Fortnightly Monthly 3 Months

Out of the 29 people using L’Oreal products, 9% of the respondents purchase L’Oreal
products fornightly, 69% of the respondents purchase the products on a monthly basis and
22% of them purchase the products once in three months. This indicates that a majority of
respondents are frequent users of L’Oreal products. This also indicates that there is easy
availability of L’Oreal products at almost all retail outlets.

7. USAGE FREQUENCY AMONG NON-WORKING RESPONDENTS

6% 3%

33%

58%

Fortnightly Monthly 3Months Weekly

Out of the 36 people who use L’Oreal products, only 3% of the respondents purchase L’Oreal
products fornightly, about 6% of the respondents purchase the products weekly, 33% of them
purchase the products once in three months and 58% of the customers purchase the products
on a monthly basis. The result of this data is very much similar to that of the working
respondents. products.

8. AVAILABILITY OF L’OREAL PRODUCTS

The below data gives a combined and interpretation for both working and non-working
respondents that out of 29 working respondents, 10 feel that L’Oreal products are easily
available at every store while 19 feel that they are available only at selective stores and out of
36 non-working respondents. 16 respondents feel that the products are readily available at all
stores, 19 feel that the products are available only at selective stores and only 1 respondents
felt that products are not easily available at all.

18
 40

30

20

10

0
Every Store Selective Store Not Available

Working Non-Working

9. PRICE OF L’OREAL PRODUCTS

The graph states that out of 29 working respondents, 15 feel that L’Oreal products are
slightly overpriced and 14 feel that the products are perfectly priced while none of the
working respondents feels that the products are highly overpriced. In case of 36 non-working
respondents, 20 feels that L’Oreal are slightly overpriced while 15 feel that the product are
perfectly priced.
A combined interpretation of this can be that about 50% of both working and non-working
respondents as well as students feel that the prices of all the L’oreal products are slightly
overpriced. This means that L’Oreal does not have a prime aim to offer the products at
reasonable or affordable prices for all the segments of consumers. This is because L’Oreal
caters mainly to the middle class and the upper middle-class consumers with a prime aim of
providing good quality products to its loyal customers.
100

80

60

40

20

0
Highly Slightly Perfectly
Overpriced Overpriced Priced

Working Non-Working

10. SATISFACTION LEVEL

Out of the 29 working people surveyed, about 5 found L’Oreal product highly satisfactory
and a majority of 24 found the products satisfactory while none of the working respondents
found them below satisfactory level. While out of 36 non-working respondents surveyed, 2
respondents found the products highly satisfactory and a majority of 33 people found them
satisfactory. Only 1 person out of the non-working respondents found the products below
satisfactory line.

19
 33
35
30 24
25
20
15
10 5
2 1
5 0
0
Highly Satisfactory Satisfactory Not Satisfactory

Working Non-Working

11. REASONS FO NOT USING L’OREAL PRODUCTS

Out of 22 respondents who do not use the L’Oreal products, 74% people are happy with their
current brand and have not tried L’Oreal yet, rest 16% do not find L’Oreal products effective,
the other 10% finds the price of the L’Oreal products as the main reason for not using it. Thus,
if L’Oreal needs to make the customers use their products for once and be able to stand on
their expectations.

10%

16%

74%

Price No Effectiveness Happy with current brand

20
 RESULTS AND FINDINGS

The present study comes to the floor with the revelations having exciting and full of
curiosity determinants in relation to the specified objectives to understand and analyze the
4P aspects of marketing for L’Oreal. Further the study helped in identifying the reasons
which stops the customers to buy L’Oreal Products over other products and to understand
the customer brand knowledge with regard to L’Oreal. As the study has been conducted, in
the context of the Indian Customers, the investigation perspective has been thrown,
conditioning the specified motive of Indian people, putting aside the motive outside the
India. The research conducted was also helped in identifying the frequency and use of the
L’Oreal Products.

Following are the key findings of the study:

1) 70% of the total working respondents use L’Oreal Products.

2) 84% of the total non-working respondents use L’Oreal Products.

3) Shampoos & Conditioner are the most popular L’Oreal Products.

4) 82% of the L’Oreal users are satisfied with the products.

5) Only 40% of the users said that L’Oreal products are available at every store.

6) In non-working respondents 47% users both skin and hair care products by L’Oreal,
25% only hair care and 28% skin care products.

7) Among the non-users of the L’Oreal products 64% are happy with the current brand,
18% find L’Oreal products ineffective and 14% people find the price of the product a major
concern.

8) 78% working respondents users use both hair and skin care products, whereas 18%
users only hair care products by L’Oreal and 4% only skin care products.

21
 CONCLUSIONS

This survey resulted into following conclusions:

 L’Oreal must come up with new promotional activities such that people become aware
about L’Oreal Products.

 Quality is the dominating aspect which influences consumer to purchase, but prompt
availability of other brands and aggressive promotional activities by others influences
the consumer towards them and also leads to increase sales.

 In comparison to L’Oreal products, the other players such as Dove, Sunsilk are provide
a better availability and give competition to the hilt.

 People are mostly satisfied with the overall quality of L’Oreal products, but for the
existence in the local market L’Oreal must use aggressive selling techniques.

22
 LIMITATIONS OF THE STUDY

i. The time for the project was short & I had to be completed on time.

ii. Language barrier was also a problem in one or two areas.

iii. Not much of importance was attached to this task by some of the Respondents.

iv. The sample size of the respondents is very small and a portion of the respondents
are not cooperative.

23
 SUGGESTIONS AND RECOMMENDATIONS

1) It needs to improve the availability network of the product so as to reach a large

customer base because 60% of the respondents feel that it is available at selective
stores only.

2) Almost 64% people are happy with their current brand and do not want to switch
to L'Oreal products thus it needs to make the customers aware of the products.

3) L'Oreal needs to adopt different promotional mediums like product binding

schemes and even surrogative marketing.

4) Introducing a low-price product line for the rural market.

5) Introduce herbal product lines as the customers is getting more inclined towards
herbal products.

6) It is still considered as a product for youth so it needs to target the people in the
age group 35 and above.

7) As boys are also becoming looks conscious so the male beauty segment can be
one area of focus.

24
 BIBLIOGRAPHY

▪ Research Methodology - - C.R. Kothari

▪ http://www.loreal.com/_en/_ww/index.aspx?direct1=00006&direct2=00006/000
02&direct3=00006/00002/00003&direct4=http://www.loreal-
finance.com/v9/us/contenu/communique_finance.aspid_page=724
▪ http://www.mbaknol.com/management-case-studies/case-study-loreals-
promotional-strategies-in-indian-cosmetics-market-for-garnier/
▪ http://inen.strawberrynet.com/makeup/l-
oreal/?gclid=CIuI8fC426UCFUQa6wod_D9FzQ
▪ http://www.strategy4u.com/resource_library/strategytips/articles/20030310.13.sh
tml

25
 APPENDIX

ANNEXURE

QUESTIONNAIRE

Name…………………………………. Add…………………………………Age…………….
Contact no……………………….

Ques 1
You use L'Oreal products?
A Regularly
B Rarely
C Sometime
D Never

Ques 2
If yes, you use:
A Hair Care Products
B Skin Care Products
C Both

Ques 3
You buy L'Oreal product:
A Weekly
B Fortnightly
C Monthly
D Once in 3 months

Ques 4
What product of L'Oreal you purchase?
A Shampoos & Conditioners
B Serum
C Hair Colors
D Any other

Ques 5
The variant of L'Oreal that you use is available at:
A Every Store
B Selective Stores
C Not available in your area

Ques 6
The price you pay for the L'Oreal products is:
A Highly overpriced
B Slightly overpriced
C Perfectly priced

26
Ques 7
Alternative brand you prefer for the hair care:
A Panteen
B Sunsilk
C Dove

Ques 8
How do you find L'Oreal products?
A Highly Satisfactory
B Satisfactory
C Not Satisfactory

Ques 9
How do you know about L'Oreal products?
A TV
B Newspapers
C Word of Mouth
D Internet

Ques 10 You do not use L'Oreal because of:

A Price
B No Effectiveness
C Happy with the current brand

Customer Sign.

27