Loreal final (distribution channel in Chandigarh)

TEAM MEMBERS :

PALAK KAWATRASAHILA BHASINSANGEETA SHARMAPULKIT SETHIPARITOSH GARGPALLAVI NEGI

• Colorformula developed by French chemist Eugene Schueller in 1907

• The L'Oréal Group is the world's largest cosmetics and beauty company dealing in :

• CONSUMER PRODUCTSL’Oréal ParisGarnierMaybelline New York

LUXURY PRODUCTSLancômeKiehl’s

Ralph LaurenGiorgio ArmaniDiesel

PROFESSIONAL PRODUCTSL’Oréal ProfessionalMatrixKérastaseKéraskin Esthetics

ACTIVE COSMETICSVichyLa Roche Posay

• In India, it employes over 1,000 people across six sites including: four regional offices, a factory in Chakan, Pune and it’sheadquarters in Mumbai.

• Distributor agency : Goyal Bros• Main Head : RAJNEESH• Address : 8, PH-1, Ind Area, Chandigarh Gpo, Chandigarh – 160002• Retailers visited : 6

BUFFER STOCK

•Whole of Chandigarh•Sec.19 most preferredSales territory

•Rs. 22,00,000 p.m•Offers and schemes for retailers

Target

•3DSR

VALUE CHAIN

MANUFACTURERS

•Company focuses on•Manufacturing Supply Chain, International

Logistics and Customer Supply Chain) •Contract Manufacturing

WHOLESALER •Wholesaler in Chandigarh

•GOYAL Bros.

RETAILERS

•Anjali departmental store sec. 32•Jai Ambika sec.32•Glam and Glitz sec.34•SK Stitch & Craft sec 35•Narula Distributors sec 35•Indra gift shop sec 34

CUSTOMERS•Adolecsents •Women in their 30s

Mgt. of SALES QUOTA

• translate them into marketing objectives and then make them objectives for the sales department.

• sales quota of Goyal Bro. is approx.22,OO,OOO /month

• Of retailers : 10,000 /month approx from each

Mgt of Sales territory• company markets in nearly all types of retail

outlets• L’Oréal built portals to provide product info,

demo tips, and training materials for the distributor reps and beauticians that coordinate salon event

• Clearly defines territories based on factors like: GeographicDemographicCustomer mix

Sales force motivation and training

• Employee social network (that helps reps and stylists work together to plan events on behalf of multiple brands)

• range of lifestyle benefits • profit share scheme• pension scheme and life assurance scheme Key performance indicators• Design innovation• quality• Logistics• Competitiveness

CHANNEL Mgt. The organisation focuses on three key areas • Manufacturing Supply Chain, • International Logistics• Customer Supply Chain

Choice of a distributor comes from three options: recommendations from business contacts, prospecting or direct requests by the distributor himself

SWOT ANALYSIS

STRENGTHS Strong portfolioInstant product developmentMaking products locallyContinuous innovationWide distributionGreater market share

WEAKNESSESLimited market in men’s product lineLow profit marginDefensive strategy

OPPORTUNITIESInternet salesProducts for ageing populationChanging demographicsGlobal brand strategy

THREATSWeak economyLow income and EPSLimited customer base as it’s sold mostly in high end departmental storesCompetitorsMaintain brand image

Satisfaction level and problems faced

DISTRIBITORS RETAILERS

SAATISFACTION LEVEL HIGH 4 - HIGH2 - SATISFACTORY

PROBLEMS FACED Shortage of eye liner low marginsPoor customer awareness

RECOMMENDATIONS• Control on marketing mix• Effective monitoring system• Distributors to be treated as partners and

enhance creativity• Need for long term R&D• Carefully analyzing market portfolios and

designing customer desired products• New product development

THANK YOU