A Synopsis on

“A Study Of Advertising Effectiveness Of Loreal Products

And Consumer Perception Towards It .”

Submitted to
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur

In partial fulfillment for the award of

Master of Business Administration

Submitted by
Ms. Tanu Tale

Under the guidance of

Prof. Kartik Uttarwar

Priyadarshini Lokmanya Tilak Institute of Management Studies

& Research, Nagpur
(2023-2024)
 Synopsis Index

Chapter No. Name of Chapter Page No.

I Introduction of Topic 1-3

II Company Profile 3-8

III Objectives of Study 9

IV Methods of Data Collection 10

V Index of Project (Chapterisation Scheme) 11

 I. Introduction of Topic

Regression analysis is a statistical method used to investigate the relationship between a dependent
variable and one or more independent variables.

It is commonly used to predict the value of a dependent variable based on the values of one or more
independent variables. In simple linear regression, there is one independent variable and one
dependent variable, and the relationship between the two variables is assumed to be linear. The
goal is to fit a line to the data that best describes the relationship between the variables.

In multiple linear regression, there are multiple independent variables, and the relationship
between the dependent variable and the independent variables is again assumed to be linear. The
goal is to fit a plane (or hyperplane) to the data that best describes the relationship between the

The suggested semiotic essay is focused on the in-depth investigation of two different ads created
by LOreal and Lab Series. The pivotal aim of this paper is the comprehensive analysis of how the
brands mentioned above use gender stereotypes and desires peculiar to males and females to create
an image that will attract potential customers and spark interest among them. Another research
question covered in the paper is the examination of how particular features desired by men and
women are represented in media and how they contribute to the creation of an ideal image that
inspires people and makes them buy particular products. To answer these formulated questions, we
will compare and contrast two ads created by LOreal and Lab…

The first advertisement under investigation is created by LOreal with the primary aim to popularize
daily moisturizers and natural skin tone enhancers for women of different ages who want to correct
their skin and add some new shades to it. The company is focused on the creation of specific
products for skin and hair care, hair coloring, sun-protection, make-up, etc. LOreal creates products
of middle and premium quality which means that the target audience of this ad is comprised of
women who have a stable income and who are interested in the world of beauty and fashion. That
is why it depicts a glamorous celebrity (Scarlett Johansson) with beautiful hair, make-up, and

Project Synopsis by Ms. Tanu Tale Page | 1

shining skin. This image could be considered a demanding one as Scarlett looks directly at potential
customers trying to persuade them to buy the product.

The suggested semiotic essay is focused on the in-depth investigation of two different ads created
by LOreal and Lab Series. The pivotal aim of this paper is the comprehensive analysis of how the
brands mentioned above use gender stereotypes and desires peculiar to males and females to create
an image that will attract potential customers and spark interest among them. Another research
question covered in the paper is the examination of how particular features desired by men and
women are represented in media and how they contribute to the creation of an ideal image that
inspires people and makes them buy particular products. To answer these formulated questions, we
will compare and contrast two ads created by LOreal and Lab…

The first advertisement under investigation is created by LOreal with the primary aim to popularize
daily moisturizers and natural skin tone enhancers for women of different ages who want to correct
their skin and add some new shades to it. The company is focused on the creation of specific
products for skin and hair care, hair coloring, sun-protection, make-up, etc. LOreal creates products
of middle and premium quality which means that the target audience of this ad is comprised of
women who have a stable income and who are interested in the world of beauty and fashion. That
is why it depicts a glamorous celebrity (Scarlett Johansson) with beautiful hair, make-up, and
shining skin. This image could be considered a demanding one as Scarlett looks directly at potential
customers trying to persuade them to buy the product.

1. Regression analysis is a technique for modeling the relationship between a dependent

variable and one or more independent variables.

2. The dependent variable is the variable being predicted or explained, while the independent
variables are the variables used to predict the dependent variable.

3. There are two main types of regression analysis: simple linear regression, which involves
a single independent variable, and multiple linear regression, which involves two or more
independent variables.

Project Synopsis by Ms. Tanu Tale Page | 2

4. Regression analysis uses a mathematical equation to describe the relationship between the
independent variables and the dependent variable.

5. The equation is based on the values of the independent variables and the coefficients that
are estimated from the data.

6. Regression analysis can be used for prediction, estimation, and hypothesis testing.

7. The quality of the regression model can be assessed using various statistical measures,
such as the R-squared value, the standard error of the estimate, and the significance of
the coefficients.

8. Regression analysis can be applied in various fields, including economics, finance,

marketing, and social sciences.

Project Synopsis by Ms. Tanu Tale Page | 3

 II. Company Profile

is a French cosmetics and beauty company that was founded in 1909 by Eugène Schueller. The
company is headquartered in Clichy, France, and operates in more than 150 countries worldwide.

L'Oréal is the world's largest cosmetics company and offers a wide range of products including
makeup, skincare, haircare, and fragrances. The company has a diverse portfolio of brands that
cater to different consumer segments, including luxury, professional, and mass-market brands.
Some of its well-known brands include L'Oréal Paris, Maybelline New York, NYX Professional
Makeup and Garnier.

L'Oréal is also committed to sustainability and has set several environmental and social goals for
the company. These include reducing its carbon footprint, using more sustainable ingredients, and
improving the lives of women in its supply chain.

Project Synopsis by Ms. Tanu Tale Page | 4

The company has also implemented a number of initiatives to promote diversity and inclusivity
within its workforce and in its advertising campaigns. In 2020, L'Oréal had a net revenue of €29.9
billion and employed over 88,000 people worldwide. The company is listed on the Euronext Paris
stock exchange and is a component of the CAC 40 index.

In the early 20th century, Eugène Paul Louis Schueller (1881–1957), a young French chemist,
developed a hair dye formula called Oréale. Schueller formulated and manufactured his own
products, which he then decided to sell to Parisian hairdressers. On 31 July 1909, Schueller
registered his company, the Société Française de Teintures Inoffensives pour Cheveux (Safe Hair
Dye Company of France).

The guiding principles of the company, which eventually became L'Oréal, were research and
innovation in the field of beauty. In 1920, the company employed three chemists; the team
continued to grow with 100 by the year 1950, and 1,000 by the year 1984; as recently as 2021, there
was an estimated total of 85,252 worldwide.

L'Oréal got its start in the hair-color business, but the company soon branched out into other
cleansing and beauty products. L'Oréal currently markets over 500 brands and thousands of
individual products in all sectors of the beauty business: hair color, permanents, hair styling, body
and skincare, cleansers, makeup, and fragrance. The company's products are found in a wide variety
of distribution channels, from hair salons and perfumeries to supermarkets, health/beauty outlets,
pharmacies, and direct mail.

L'Oréal Group has its head office in the Centre Eugène Schueller in Clichy, Hauts-de-Seine, close
to Paris.] The building, constructed in the 1970s from brick and steel, replaced the former
Monsavon factory, and employees moved into the facility in 1978. 1,400 employees work in the
building. In 2005, Nils Klawitter of Der Spiegel said "the building, with its brown glazed façade of
windows, is every bit as ugly as its neighbourhood." Klawitter added that the facility "gives the
impression of a high-security zone" due to the CCTV cameras and security equipment. The world's

Project Synopsis by Ms. Tanu Tale Page | 5

largest hair salon is located inside the head office building. As of 2005, 90 hairdressers served 300
women, including retirees, students, and unemployed people, per day; the customers are used as
test subjects for new hair colours.

International units include:

• L'Oréal USA, changed from Cosmair in 2000 - has its headquarters in New York City,
and is responsible for operations in the Americas.
• L'Oréal Canada Incorporated - Canadian operations, based in Montreal
• L'Oréal Australia - head office is in Melbourne
• L'Oréal Nordic - head office is in Copenhagen, Denmark
• L'ORÉAL Deutschland GmbH - legal seat is in Karlsruhe, head office is in Düsseldorf
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, another in India: Mumbai, one other regional pole in Brazil: Rio de
Janeiro and, lastly, another was established in South Africa: Johannesburg

“Because you are worth it” is a famous phrase used in L’Oréal’s advertisement at the dawn of
almost 40 years, and its authorship belongs to the advertising agency of McCann Erickson. Since
then, the screen with a beautiful French accent was played by actresses Catherine Deneuve, Jennifer
Aniston, Mila Jovovich, Beyonce Knowles, Kate Moss, and others. The men’s L’Oréal line was
advertised by the Formula One pilot, Michael Schumacher, and the football player David Ginola
(Hong and Yves 117). In 1996, there was an acquisition of Maybelline, a leader of the decorative
cosmetics of the mass market in the US, which had strategic importance. It not only positioned
L’Oréal as the undisputed leader of the key market all over the world but also turned the corporation
into the world leader in the field of makeup tools for mass demand. Moreover, Maybelline was an
entrance ticket for L’Oréal to the Asian market, especially in China, where there was a factory of
this brand.

Project Synopsis by Ms. Tanu Tale Page | 6

To engage consumers interactively with the products, L’Oreal has released the Makeup Genius
application, which allows users to do makeup online. Girls use a smartphone as a mirror and try
various make-up variations likewise filters on Instagram to find out the best option. This application
was already downloaded more than 14 million times. In today’s China, goods and services for
personal care, healthy lifestyles, and entertainment are quite popular. Three factors affect consumer
behavior, including large families, bad ecology, and general Asian trend for personal hygiene and
care. It should be stated that there are more men than women, but the female half of the population
makes more purchases.

Traditionally, girls, even the younger generation, use cosmetics. Being in serious relationships, they
often buy something for the family, parents, children, and husband. As for the age, the target
audience is composed of people from 17 to 36 years old, who are called the generation of two
thousand people or the generation of the millennium. This is a young generation of Chinese
consumers who are versed in modern technology, who make 66 percent of all purchases on the
Internet. All of them use social networks, and they are interested in new ideas as well as trying
something new. Currently, L’Oreal Group follows a comprehensive strategy of promotion on
Weibo and Wechat platforms.

In partnership with Suzhou Medical College, one of the oldest Chinese universities, L’Oréal created
Suzhou L’Oréal Beauty Products. In 1996, the industrial complex of Suzhou began the construction
of the plant, which was opened in 1999, while two other factories were opened in the next decade
to serve the rapid development of the Chinese market. Furthermore, to accelerate the development
of the Garnier brand in China, which is already marketed by the Nutrisse brand, L’Oréal acquired
Mininurse in 2003. This local brand, a leader of skincare products of a mass-market, already
enjoyed great popularity and a powerful presence in the market. The first means of leaving Garnier
were issued under the name Mininurse.

One of the challenges to entering the Chinese beauty market was associated with the overall value
of the existing brands. In response to Chinese preference for these brands that take into account the
specific nature of Asian skin type, L’Oréal acquired Yue-Sai – an affordable luxury brand of
skincare and decorative cosmetics Yue-Sai that personified a modern resident of China and became
a successful addition to the collection of the international portfolio of L’Oréal Group. However,

Project Synopsis by Ms. Tanu Tale Page | 7

the review of the literature shows that the company needed research and innovation to meet
customers’ quality expectations and remain in-demand. In this regard, a new research center in
China was launched. The main project of L’Oréal’s fourteenth research center in Pudong, near
Shanghai, was the achievement of the perfection of knowledge about the skin and hair of the Asian
type. Its paramount goal was to develop products that meet the needs of Asian descent around the
world as well as the production of real geo-cosmetics that can cover the diversity of cultural and
climatic features of Asia.

Project Synopsis by Ms. Tanu Tale Page | 8

III. Objectives of Study

1. To find a linear relation between dependent and independent variables.

2. To develop a regression model to explain the association between revenue and

expenditure.

3. To analyse the relation between revenue and expenditure.

4. To provide tailored, inclusive beauty solutions that meet specific, individual aspirations.

5. To contribute to the beauty of the planet and champion corporate social and environmental
responsibility.

Project Synopsis by Ms. Tanu Tale Page | 9

 IV. Methods of Data Collection

Data collection refers to the process of gathering information or data from various sources. The
method of data collection used depends on the type of data that needs to be collected, the purpose
of the data collection, and the resources available for the research.

▪ Data Collection:

"Secondary data from L’Oréal India Pvt. Ltd.

▪ Primary data collection:

Primary data is also known as the data collected for the first time through the Field
survey. Such data is collected with specific set of objectives to asses any variable study.
Here the data is collected by using "questionnaire" method.

▪ Secondary data:

Secondary data involve using existing data sources, such as published studies,
government reports, or online databases, to collect data.

Project Synopsis by Ms. Tanu Tale Page | 10

 V. Index of Project (Chapterisation Scheme)

Page No.
Chapter No. Name of Chapter (From-to)

I Executive summary

II Introduction of Topic

III Company Profile

IV Objectives of Study

V Research Methodology

VI Data Analysis and Interpretation

VII Conclusion and Findings

VIII Suggestions and Recommendations

IX Bibliography

X Appendices

Project Synopsis by Ms. Tanu Tale Page | 11