L'ORÉAL

Mission-

“To enable all individuals to express their personalities, gain

self-confidence and open up to others.”

Vision-

“To win over another one billion consumers around the world
by creating the cosmetic products that meet the infinite
diversity of their beauty needs and desires”

Tagline-

“Because I’m Worth It”

Segmentation, targeting,
Positioning in the Marketing
strategy of L’Oréal –

L’Oréal has segmented the market based on

the demographic factors such as L’Oréal LUXE for upper middle
and upper-class customers who wear beauty as their identification,
Dark & Lovely for African women’s, professional products for
customers offerings/ enhancing the looks of individual customers.

For targeting differently segmented of customers with its 34 brands

in several product categories, it has
devised differentiation strategy to target middle, upper middle and
upper-income class customers majority of who are working
professionals and are those who want to flaunt their personas.

The brand has positioned itself as most ethical cosmetics and

beauty Care Company focusing on Universalisation i.e. respecting
the differences in cultures, desires, and aspirations of the internal
& external stakeholders.

In 1987, during the growth years of the mail order business,

L'Oréal and 3 Suisses founded Le Club des Créateurs de
Beauté for mail-order sales of cosmetic products, with brands
including Agnès b., Cosmence and Professeur Christine
Poelman among others. In March 2008, L'Oréal acquired 3
Suisse's stake, taking sole control of the company. In
November 2013, L'Oréal announced that Le Club des Créateurs
de Beauté would cease activity in the first half of 2014.
Since 1997, L'Oreal is an official partner of Cannes Film
Festival. In the years of L'Oreal sponsorship, many L'Oreal
ambassadors walked the red carpet of the Cannes Film
Festival. In 2017, L'Oreal beauty ambassadors
including Julianne Moore, Susan Sarandon, Andie McDowell,
and Eva Longoria were responsible for the film selection for the
outdoor cinema during the Cannes Film Festival.
L'Oréal's advertising slogan is "Because I'm worth it". In the
mid 2000s, this was replaced by "Because you're worth it". In
late 2009, the slogan was changed again to "Because we're
worth it" following motivation analysis and work into consumer
psychology of Dr. Maxim Titorenko. The shift to "we" was made
to create stronger consumer involvement in L'Oréal philosophy
and lifestyle and provide more consumer satisfaction with
L'Oréal products. L'Oréal also owns a Hair and Body products
line for kids called L'Oréal Kids, the slogan for which is
"Because we're worth it too".
In November 2012, L'Oréal inaugurated the largest factory in
the Jababeka Industrial Park, Cikarang, Indonesia, with a total
investment of US$100 million. The production will be absorbed
25 percent by domestic market and the rest will be exported. In
2010, significant growth occurred at Indonesia with 61 percent
increase of unit sales or 28 percent of net sales.
Marketing mix of L’Oréal
1.Product in the Marketing mix of L’Oréal
L’Oreal has a portfolio endowed with international standard of
brands covering a wide range of products while satisfying
the needs of every customer present in any part of the world.
All its products pass the international standards of testing. The
company deals in activities related to cosmetics, skin care, hair
color, make-up, sun protection, hair care and perfumes. In
India, L’Oreal operates through four different divisions that are
as follows

● Active cosmetics include brands like Vichy, Inneov and

Sonaflore.
● Luxury products include brands like Diesel, Ralph Lauren
and YSL.
● Professional products include brands like Technique, Matrix
Essentials, Mizani and Kerastase.
● Consumer products (personal care) include brands like
Ombrelle, Maybelline, Essie, Garnier, Magic and Colorama.

Some of the consumer favorite products of the brand are

eyeliner, mascara, eye shadow and primers for eyes, primer,
powder, foundation, concealer and blush for face. lip liner, lip
gloss, lip balm and lip color for lips, nail polish and remover for
nails, hair colors in various shades for hair, Shampoo,
conditioner for hair care, moisturizers, cleansers, toners for
skin care and hair spray, serum for hair styling are also used.
L’Oreal also has a kid’s line of products. All the products are
available in different product sizes and different price ranges.
L’Oreal is also planning to penetrate the Ayurvedic and herbal
industry in the Indian cosmetic section. They are having

ongoing talks with some of the companies like VLCC and

Biotique.

2. Place in the Marketing mix of L’Oréal

L’Oreal has development and research centers in six places
worldwide like Japan, France US and China and its products
are available in one hundred and thirty countries of the world.
The various products are found in various outlets like
perfumeries, hair salons, super markets, pharmacies, beauty
outlets and even through direct mail. Besides this, the brand
has its own website and has tie-ups with other shopping sites
on internet.

With all the needed product information, the consumers can

make purchases from any part of the world. In this changing
times internet has become one of the most important outlet for
successful purchasing and buying. . L’Oreal’s operations in
India are on an ever-growing path as the awareness of the
beauty products has resulted in the brands growth and
popularity. Its operations in India are through its fully owned
subsidiary “L’Oreal India”.

The company has set up a manufacturing plant in the city

Pune in Maharashtra, India. Most of the products are imported
from abroad and the rest are manufactured in this plant. The
successful growth of the brand in India is credited to the
efficient supply channels and distribution policies. In one of its
kind distribution strategy,L’Oreal has appointed skillfully
trained hairdressers that work in their own salons and outlets
by providing professional services to the consumers. This
includes various treatments and product awareness campaigns
that help in creating a new consumer base. This has led to a
number ofL’Oreal salons in India, where consumers come for
professional and efficient treatment and these salons are for
both the gender men and women.

3. Price in the Marketing mix of L’Oréal

The biggest revenue earner for L’Oreal in India is the products
related to consumer division. The urban consumer is not as
price conscious as was portrayed earlier. For premium
products, the consumers are ready to dole out premium prices.
As many of the L’Oreal products belong to the high qualitative
product group, the company had to maintain a premium
pricing policy for those products. The company has decided to
maintain its value added pricing policies for all its products.
Some of the brands under L’Oreal have products that cater to
the middle class section of the society and the pricing policy for
these products is reasonable so that the consumers can easily
afford them.

Sometimes, in order to penetrate a new section of the market,

the company has offered discounts and schemes especially on
introductory products. This leads to the minimization of prices
and leads to an increase in sales figure resulting in further
revenues. In order to strike a reasonable balance between its
products and prices the company has taken steps to increase
its Stock Keeping Units, as this will help in creating a balance
over the pricing policies.
4. Promotion in the Marketing mix of
L’Oréal
L’Oreal has an advertising slogan that has always defined the
brand. The first slogan was “Because I’mWorth it”. This was later
replaced by “Because you’re Worth it” and in the year 2009, this was
again changed to “Because we’re Worth it”. The changing times
along with the mindset and concept can be seen in the changing
slogans. The shift to the letter “we” was to denote the consumer
involvement in all the brand products.

L’Oreal is a truly international brand and hence its advertisements

are at a premium level. Attractive and well-known models of
international caliber are the part of its promotions. In India, the
advertising campaigns are operated through local methods as well
as through global methods to appeal to a wide range of consumers.
The advertisement agency recruited is “McCann Erickson”. Former
Miss World“Aishwarya Rai Bacchan” has been its brand
ambassador and international face and presently the actor “Sonam
Kapoor” has been in the L’Oreal advertisements. The ad campaigns
are in numerous television channels, radio, fashion magazines,
hoardings and neon signs.

Free products as samples are provided with other products or at

salons to market the new items. Sometimes discounts are offered on
some products to increase the sales figures and to promote the
products. In many cases, surveys for customer satisfaction are
carried out amongst the people who have used these products. The
results are then published as part of the promotions. For some of
the L’Oreal brands the company has adopted a “viral marketing
strategy” under which the brand and its products are marketed
through marketing messages. The use of internet has opened new
doors for every brand and in every field be it marketing or
promotion

REFERENCE

https://www.loreal.com/group/who-we-are

https://www.researchgate.net/publication/
284104529_Managing_Marketing_Report_On_L'oreal_Group

http://scholar.google.com/citations?
hl=en&view_op=search_authors&mauthors=label:marketing_strategy
MARKETING
REPORT

L'Oréal