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Case Review - L'Oreal Company
Presented By:Parag Shah: F-04Shruti Poddar: HR-24
Evolution of L’Oreal Co.
• 1907 - Eugéne Schueller, founded L’Oreal by
formulating, manufacturing & selling the first hair
dye to Parisians.
• 1910 - Schueller was a part of the editorial team for
a famous fashion and cosmetics magazine, and he
recommended the concept of patch tests &
convinced Paris hairstylists to use his products.
• 1912 – Started a hair – colouring school at Rue du
Lowre in Paris. Schueller himself trained the
students at the school for maintaining the
standard of the company.
• 1920 – After World War II, a new age came into
existence. Austria, Italy, and Netherlands were the
countries which had high demand of L’Oreal high
dyes.
• 1934 - Eugene invented the first mass market of
soap less shampoo and then L’Oreal in the country
of Europe was soon recognized as the leader in
body care and hair colouring products. L’Oreal went to United States and the seemed to
change.
• 1960 – L’Oreal consumed companies like Garnier,
Lancome Paris, and Biotherm.
• 1970 – L’Oreal consumed Maybelline which
worked miracles for L’Oreal.
• 1980 – one of the biggest acquisition Ralph Lauren
Fragrances and Helena Rubinstein which was a
cosmetic maker that distributed internationally.
• 1995 - L’Oreal made its biggest acquisition by
purchasing Redken which allowed them to
reassess the whole hair care division. Redken was
well known for its extensive network of salon
educators.
• 2000 - The last acquisition was purchase of Kiehl’s.
They are a New York based specialty store that sells
high end cosmetics which gives L’Oreal a new
advantage into another market of the luxury
division with the goal of selling in higher end
stores.
Expansion of L’Oreal Co.
• Initial presence in Paris
• Expanded in France
• Researched about other countries
• They made the products available in other countries
• L’Oreal expanded its business from hair care to other
cosmetics
• Bad response in US
• Researched more about US
• Acquired Kiehl's a speciality store
• Took initiative to spread business all over
Limit's to Globalize for L’Oreal Co.
• Beauty through just American and French
consumers
• Don’t want to focus on local brands
• Low economic countries
• Geographic issues
Kiehl’s Co.
• New York based
• Word of Mouth
• High end speciality products
• Difficult to replicate
• Booming demand for the products
• L’Oreal’s need to globalize – acquired Kiehl’s
Strategy that can be used
• Exporting
• Licensing
• Franchising
• Foreign direct investment
• Wholly owned subsidiary
• Piggybacking
• Acquisition
• Joint venture
Strategy used by L’Oreal Co.
• Acquisition
E.g.: Maybelline
• Joint Venture
E.g.: Kiehl’s
Conclusion
• Research & Development
• Cost effective products
• Innovative customer services
• Customers all around the globe shall be considered
• Far away blooming journey
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