STP Analysis of L’oreal.

Presented by: Shreya

Gupta
Roll no: 59
Course: MBA sem 1.
Introduction.
 L’oreal was founded by Schueller in 1909, but came to India
in 1991.
 Worldwide sales of over $30.8 billion.
 L'Oreal is the world's largest cosmetics and beauty
company, concentrating on skin care, hair care, make-up,
hair colouring & perfume.
 achieved massive success in India in very short time.
 L‘oreal Paris has great commitment to technology, R&D,
innovation (3.5% of sales).
 Understands consumer needs, cultures, climates, traditions,
market requirements. Eg: Japan - wondercurl mascara.
Brands under L'oreal.
About 28 global brands and thousands of individual products in all sectors of
beauty, hair colour, body care, skin care, makeup, fragrance, hair styling etc.
 L'oreal ad analysis.
Mission: beauty for all
Slogan: because we are all worth it.
Spends about $5 billion on advertisements(3rd largest advertiser)
Segmentation.
Brand segmentation:

1. Consumer products (52% of sales): mass marketed

products sold through retail chains. Brands like Maybelline,
garnier.
2. L'oreal luxe (27% of sales): found only in premium stores.
Includes prestigious brands like Ralph Lauren, Armani.
3. Professional products (14% of sales): specifically
designed for professional hair salons. Brands like redken.
4. Active cosmetics(7% of sales): includes dermo-cosmetic
products sold at pharmacies, drugstores, medi -spas.
Market segmentation.
Targeting.

 L'oreal is brilliant in identifying needs, culture ,aspirations of

different types of consumers in diversified regions.
 Different brand targets different sections of the society who
all seek different benefits.
 L'oreal now targets young affluent impressionable females
who are open to new experiences & active media recipients.
 Example: This shampoo total repair 5 particularly targets
everyday middle-class females between age of 20-35 who
have damaged hair.
Targeting different sectors.
Positioning.
 Different positions for different brands and products i.e.
luxury & affordable.
 In this ad: L'oreal hired Aishwarya Rai to show that
beautiful women use L'oreal. Thus, this shampoo has
positioned itself as not just a basic shampoo but one that
made women beautiful.
 Tagline: “because we are all worth it” promises “Beauty”
where most brands only positions themselves as cheap,
value for money & serve only basic function of cleaning.
Eg: Olay & Garnier.
Conclusion.
 Build a brand portfolio primarily by purchasing local beauty
companies all over the world, revamping them with strategic
direction & further expanding them.
 Spends huge amount of money in R&D, study consumer
behaviour, advertisements etc.
 It has segmented the market on the basis of their behaviour,
expectation, lifestyle, income, gender etc.
 It targets these segments & hits them with the right kind of
products. Thus, catering to diverse sections of society mostly
young and impressionable females through active
advertisements.
 Therefore we can say that L'oreal has positioned itself as a
brand which caters to every women’s beauty & wellness.
Thank you.