Assignment- Live Project-3

(Experiential Learning)
Academic Session: 2022-23

Subject: Business Research Methodology

SUBMITTED TO: SUBMITTED BY:

Dr.B.B.Tiwari Vanshika goyal
BBA 3MB
10217001721
 INDEX
SNO. NAME SIGNATURE
1. CERTIFICATE
2. ACKNOWLEDGEMENT
3. COMPANY PROFILE
4. COMPANY CURRENT
DEMAND
5. PRICING STRATEGY
6. COMPETITIORS IN THE
MARKET AND THEIR
PRICING STRATEGIES

7. DEMAND
FORECASTING ON
CURRENT PRICE

8. PRICING STRATEGY
FOR FUTURE
9. RESEARCH
METHODOLOGY
10. DATA COLLECTION
11. QUESTIONNAIRE
12. DATA ANALYSIS
13. BIBLOGRAPHY
 CERTIFICATE

This is to certify that the project titled "ANALYSIS OF L’Oréal" is an academic

work done by "VANSHIKA GOYAL" submitted in the partial fulfillment of the
requirement for the award of the degree of Bachelor of Business Administration
from TECNIA INSTITUTE OF ADVANCED STUDIES Area Madhuban Chowk,
Bhagwan Mahavir Marg , Sector 14, Rohini, New Delhi, Delhi 110085, under my
guidance & direction.

SIGNATURE
Dr.BB. TIWARI
 ACKNOWLEDGEMENT

First of all, I would like to express my thanks to Dr.BB. TIWARI for giving
me such a wonderful opportunity to widen the horizons of my
knowledge.

In no small measures, I would also like to gratefully thank to all those

who gave me constructive suggestions for the improvement of all the
aspect related to this project.

I also owe a deep sense of gratitude to other faculty members for their
continuous encouragement.

Despite all efforts, I have no doubt that error and obscurities remain that
seen to afflict all research project and for which I am culpable.

VANSHIKA GOYAL

Roll. No.: 10217001721

Learning Objective:
Students will be able to understand and apply the knowledge about
the process of using predictive analysis of historical data to estimate
and predict customers' future demand for a product or service.
Learning Outcomes:
The students will be able to understand the following:
1. Business Research Methods
2. Preparation of Questionnaire and Schedule
3. How to collect the data
4. Data Analysis
5. To create budget line for himself after learning from this session

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 COMPANY’S PROFILE

L’Oréal is a company of Cosmetics. The company headquarter is in Paris. It is a

leading company in the world in beauty and pioneering the world of beauty
technology. There are 36 international brands are divided into four unique
Divisions: Luxe, Consumer Products, Active Cosmetics, and Professional
Products.

The international brands include Kiehl’s, Lancôme, Giorgio Armani Beauty,

Yves Saint Laurent Beauté, Ralph Lauren, Clarisonic, Maybelline New York,
Essie, Kérastase, IT Cosmetics, Prada Beauty, Biotherm, Shu Uemura,
Viktor&Rolf, Maison Martin Margiela, Urban Decay, Redken, Vichy, La
Roche-Posay, Diesel, Garnier, L’Oréal Paris, and more.

Establishment
L’Oréal established in 1909 by Eugène Paul Louis Schueller. L’Oréal has
devoted itself solely to one business which is beauty. They want to bring beauty
to all people. L’Oréal offers a wide range of beauty products and present in 150
countries.

Brands
 L’Oréal Paris
The world’s leading cosmetics brand, L’Oréal Paris makes the best of luxury
beauty, accessible on all continents. L’Oréal Paris presents a complete range of
highly advanced beauty products with clinically-proven efficacy and safety: in
five categories: makeup, skincare, haircare, hair color and men’s grooming.

 Garnier
Garnier is at the forefront of formulating natural & naturally inspired products,
a legacy which began when Garnier patented the first-ever plant-based hair
lotion back in 1904. Garnier aims to go further and commit to Green Beauty, an
end-to-end approach to sustainability.

 Maybelline New York

Maybelline New York is the number one cosmetic brand in the world, available
in over 120 countries. By combining technologically advanced formulations
with on-trend expertise and New York edge, Maybelline New York’s mission is
to offer innovative, accessible and effortless cosmetics for every woman.

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  NYX Professional Makeup
The NYX PMU professional writes new rules and leaves their mark on the city.
Self taught and self made, they are empowered innovators who express their
creativity through the media they own.

 Stylenanda
Stylenanda is a K-beauty and fashion love brand of Asian Gen Z & Millennials
around the world via well-established O2O platforms. Established in 2004. The
company first started-off as a 1st generation fashion online.com in South Korea
then launched its makeup brand 3CE in 2009 to complete the Nanda girl’s look.

COMPANY’S LOGO:

Research and development facilities

L'Oréal has 21 worldwide research and development centers: three global
centers in France: Aulnay, Chevilly and Saint-Ouen. Six regional poles include
one in the United States: Clark, New Jersey; one in Japan: Kawasaki, Kanagawa
Prefecture; in 2005 one was established in Shanghai, China, one
in India: Mumbai, one in Brazil: Rio de Janeiro and lastly in South
Africa: Johannesburg.[8]

Media
In 1988-89, L'Oréal controlled the film company Paravisión, whose properties
included the Filmation and De Laurentiis libraries. StudioCanal acquired the
Paravision properties in 1994.

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 COMPANY’S CURRENT DEMAND
SALES AT 30 SEPTEMBER 2022

Like-for-like, i.e. based on a comparable scope of consolidation and

constant exchange rates, sales of the L’Oréal group grew by +12.0%.
The net impact of changes in the scope of consolidation was +0.4%.
Growth at constant exchange rates came out at +12.4%.
Currency fluctuations had a positive impact of +8.1%. If the exchange rates at
30 September 2022, i.e. €1 = $0.977, are extrapolated until 31 December, the
impact of currency fluctuations on sales would be around +8.1% for the whole
of 2022.
Based on reported figures, the Group’s sales at 30 September 2022 amounted to
27.94 billion euros, an increase of +20.5%.

Sales by Division and Geographic Zone

3rd quarter 2022 At 30 September 2022
Growth Growth
Like- Like-
€m for-like Reported €m for-like Reported
By Division
Professional Products 1,094.3 +4.3% +15.7% 3,258.2 +10.9% +19.6%
Consumer Products 3,548.3 +10.0% +19.1% 10,342.6 +8.7% +15.7%
L’Oréal Luxe 3,612.3 +4.6% +15.8% 10,483.9 +12.2% +22.0%
Active Cosmetics 1,320.2 +26.0% +38.8% 3,856.9 +22.6% +31.5%
Group Total 9,575.2 +9.1% +19.7% 27,941.5 +12.0% +20.5%
By Geographic Zone
Europe 2,878.7 +10.5% +12.1% 8,445.9 +13.0% +13.7%
North America 2,822.7 +9.3% +27.7% 7,473.2 +10.8% +25.0%
North Asia 2,410.4 +0.3% +11.3% 8,030.5 +7.4% +17.5%
SAPMENA–SSA 2 787.7 +30.0% +41.5% 2,191.1 +25.4% +32.7%
Latin America 675.6 +16.2% +36.5% 1,800.9 +20.0% +38.1%
Group Total 9,575.2 +9.1% +19.7% 27,941.5 +12.0% +20.5%

Following a remarkable increase of +10% in the third quarter, the Consumer

Products Division posted strong growth of +8.7% like-for-like and +15.7%
reported over the first nine months.

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 Pricing Strategy of L’Oréal
Out of the 4 product divisions, L’oréal gets the most revenue from the consumer
division, but the premium price products are also in demand as consumers who
can afford premium products are ready to spend premium prices as well.
L’oréal has to maintain a premium price policy for its high-quality product
group. It has decided to have a value-adding pricing policy for all of its products.
The brand also targets the middle-class section in society by offering prices at a
reasonable price so that they can afford them.

The company never fails to bring innovation across all its products and
penetrate the market based on various product divisions at various price levels.
Product demand, location served, competition, and premium price are all factors
in the pricing strategy.

The product division brand L’Oréal is distributed in retail channels. And so, it
becomes available to a mass market. In this way, they have made great profits.
Professional products are available worldwide. That is why when a customer
visits a salon. They are the first products he sees. Also, they will not have
problems paying its cost because it is not very high.
You can find all of the Luxe product divisions at the supermarket, the brand’s
points of sale, its online store, and cosmetics stores. In effect, the prices of these
products are higher on price. However, customers are still willing to pay a high
cost as they are high-quality products. Likewise, they are reliable groups
compared to the competition.
For the brand, it is important to maintain this pricing strategy based on the value
of its products. They penetrate the market with different price levels through all
the products they offer and their innovations.

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COMPETITORS AND THEIR PRICING STRATEGIES

1. MAC
A famous cosmetics manufacturer, MAC cosmetics, is headquartered in New
York, United States. It is the leading professional makeup authority in the world.
It produces a wide range of products for all ages. The various products of MAC
serve the demand of consumers and professional makeup artists. The products
of MAC are Prep + Prime, Pro Longwear, Lightful C, Mineralize, and Studio.
MAC Cosmetics Price/Pricing Strategy:
Below is the pricing strategy in MAC Cosmetics marketing strategy:
MAC Cosmetics’ first customers were for make-up artists and models.
One of the big breaks was in the late ‘80s when Madonna, on a photoshoot,
wore one its product. As it is perceived as a good of ostentation which shrieks of
conferring high status to those who are wearing it, they adopted premium
pricing strategy for all its products. Although the price of competitors’ product
is a bit lower, customers are willing to pay a little higher. This instead ensured
customer loyalty and willingness of customers to pay astronomical huge sum
for its products comprises the goodwill of the company in the market. MAC
Cosmetics not only has adopted premium pricing strategy, but also product line
pricing strategy. In this, company’s products are priced in relation to each other
and where each good complements each other rather than competing with each
other. This means change in price of one of its products has bearing on the other
products.

2. Maybelline
Maybelline is one of the top cosmetics company in the United States. It helps
women to discover new looks and exhibit their own creativity and individuality.
Maybelline provides scientifically-advanced formulas, radical textures, and
trendsetting shades to enhance the beauty of women. Maybelline produces
various products for eyes, faces, and lips.

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Maybelline Price/Pricing Strategy:
Below is the pricing strategy in Maybelline marketing strategy:
Maybelline is a premium product and targets to the affluent urban female and
working-class women as well as teens and young adults from upper class
society.
The prices are high and they are considered as luxury items in USA. Maybelline
products are available in the range of $10 to $100 depending on the kind of
product. Thus, premium pricing strategy in its marketing mix helps the brand
serve a niche customer which its high quality product-line.

3. DIOR
Christian Dior was a French fashion designer, who was the founder of the top
fashion houses called Christian Dior. It is currently owned by Groupe Arnault.
Their fashion stores are available across the globe. Christian Dior is engaged in
the production and distribution of consumer goods.
Christian Dior Price/Pricing Strategy:
Below is the pricing strategy in Christian Dior marketing strategy:
Christian Dior is a luxury brand and hence has premium pricing for its products.
As the products as luxury goods, the prices are significantly higher than
majority of the premium brands. The segment of population targeted for these
products are generally not very price conscious and are willing to pay for the
status symbol of these luxurious products and it has developed a loyalty based
relationship with their customers allowing them to charge higher for the
products. Hence Christian Dior follows a premium pricing policy in its
marketing mix. The women’s clothes, shoes, bags, accessories and jewellery are
offered with a starting range of 3000 euros, 400 euros, 220 euros, 700 euros,
135 euros, and 115 euros respectively. While the men’s ready-to-wear, shoes
and leather goods are offered with a starting price of 15 euros, 370 euros, and
140 euros respectively.

DEMAND FORECASTING

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Demand forecasting is known as the process of making future estimations in
relation to customer demand over a specific period. Generally, demand
forecasting will consider historical data and other analytical information to
produce the most accurate predictions.

DEMAND FORECASTING OF L’Oréal

Through historical data and current price DEMAND seems to become high in
upcoming year.

The overall demand for luxury products and premiumized products is very high
– the market is premiumizing overall
The Active Cosmetics division, which includes Vichy and CeraVe labels, grew
fastest, with sales up 18%. Its largest division, L'Oreal Luxe, which sells
Giorgio Armani and Lancome products, clocked 17.5% growth. The two
divisions are the beauty giant's most profitable divisions.
Ecommerce channels, currently contributing 20% to annual company sales, are
continuing to grow faster for L'Oreal India even after the Covid-19 pandemic.

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PRICING STRATEGY FOR FUTURE

Being at the heart of the Group’s interactions with its various stakeholders, the
Supply Chain has an important role to play in our sustainable transformation
and our commitments to people and nature.
One of the key ambitions of L’Oréal for the Future program is by 2030, to
reduce by 50% on average and per finished product, the greenhouse gas
emissions linked to the transport of our products, compared to 2016.

How can we reach our goal?

One route is our development of ‘green delivery’ solutions that use low-carbon
transportation.
By the end of 2021, we aim to eliminate single-use plastic in materials used to
fill the void in packaging or in tape in all our distribution centers worldwide. At
the end of 2020, 100% of our distribution centers in Latin America, Europe,
South Asia, Africa, and the Middle East have already reached this objective.
We are also accelerating Solidarity Sourcing in the Supply Chain, L’Oréal’s
unique inclusive purchasing program. It’s a commitment that we are making at
every level of the Supply Chain. We are accelerating this process, not only to
meet the needs of a constantly changing world but also to respond to the major
human and environmental challenges we all face.

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RESEARCH METHODOLOGY:
INTRODUCTION
This chapter aims to understand the research methodology establishing a
framework of evaluation and revaluation of primary and secondary research.
The techniques and concepts used during primary research in order to arrive at
findings; which are also dealt with and lead to a logical deduction towards the
analysis and results.

RESEARCH DESIGN
The research design applied here was exploratory research and descriptive
research. Exploratory Research is one in we don't know about the problem, we
have to find about the problem and then work on solving the problem. Whereas
in case of descriptive research, we know the problem, we just have to find the
solution to the problem. Generally descriptive research design is applied after
exploratory research design.
Here, through primary research we came to know about the sales for different
mobiles, customer likings, problems faced by dealers and reasons for low sales
of Spice mobiles.
SAMPLE SIZE
To complete the research, the questionnaire was filled by 30 respondents.

RESEARCH TOOL
The purpose is to first conduct a intensive secondary research to understand the
major players in the market, their sales, studying their handsets and their
features, & full impact and implication of this on their market and the customers.
This helped us in the primary research to ask the questions which are still
unanswered & we can get only through primary study.

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DATA COLLECTION
DATA COLLECTION:
Both primary and secondary data have been collected very vigorously
Primary data: it is basically collected by getting the questionnaire filled by the
respondents selected for the research.
Secondary data: it is collected by the study of enormous material available on
the company websites and the previous researches related to mobile industry.
The data was also collected from the magazines and newspapers.

QUESTIONNAIRE METHOD
The questionnaire method has come to the more widely used and economical
means of data collection. The common factor in all varieties of the questionnaire
method is this reliance on verbal responses to questions, written or oral. We
tried to make sure the questionnaire was easy to read and understand to all
spectrums of people in the sample. It was also important to respect the samples
time and energy hence the questionnaire was designed in such a way, that its
administration would not exceed 4-5 minutes. These questionnaires were
personal administered.

Sample size: 30 respondents

No. of questions: 5

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QUESTIONNAIRE
AGE:
15-20 21-30 31-40 41-50

GENDER:
MALE FEMALE OTHERS

WHICH PRODUCT DO YOU USE?

TRESEMME LOREAL LAKME OTHER

HOW DID YOU CAME TO KNOW ABOUT LOREAL?

ADVERTISEMENT WORD OF MOUTH FRENDS/RELATIVES
DISPLAY IN SHOPS OTHER

WHAT DO YOU THINK ABOUT LOREAL PRODUCT PRICING?

NORMAL HIGH VERY HIGH

DO YOU THINK LOREAL PRODUCTS ARE EASILY AVAILABLE IN

THE MARKET?
YES NO MAYBE

FOR HOW LONG HAVE BEEN USING THE LOREAL BRAND?

0-5 MONTH 1-2 YRS 2-3 YRS MORE THAN 3 YRS

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 GENDER

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BIBLOGRAPHY

https://in.investing.com/equities/l-oreal
https://demand-planning.com/tag/loreal/
https://www.loreal.com/en/articles/operations/supply-chain-transformation/
https://www.businesswire.com/news/home/20190124005547/en/2018-Success-
Case-Study-LOreal-Makeup-Genius-App---How-LOreals-Strategy-of-
Personalizing-the-Consumption-Experience-Empowers-Digital-Consumers---
ResearchAndMarkets.com
https://www.freshbooks.com/hub/accounting/accounting-forecasting-techniques
https://thestrategystory.com/2021/01/12/loreal-beauty-company-strategies/
https://economictimes.indiatimes.com/industry/services/retail/india-may-soon-
be-the-largest-market-for-loreal-in-apac/articleshow/95810971.cms?from=mdr

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