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NEED/ WANT/ DEMAND
Need: It is state of deprivation of some basic satisfaction.e.g. - cosmetic product
Want: Desire for specific satisfier of need.e.g. - Indians - wants clear skinAmericans - wants healthy hair
Demand: Want for a specific product backed up by ability and willingness to buy.e.g. - Need – cosmetic product
Want – hair shampoo+conditioner ……but able to get only shampooTherefore, demand is for shampoo
MARKETING MANAGMENT
Marketers cannot create needs. Needs preexists. Marketers can influence wants. This is done in combination with societal influencers.Demand influenced by making product-
APPROPRIATATTRACTIVE APPROACHABLE/AFFORDABLE AVAILABLE EASILY
To target consumers (4 P’s) – Product/ Promotion/ Price/ Place
PRODUCTS- GOODS/ SERVICES/ PLACE
Product is anything that can satisfy need/ want.Product component- 1. Physical Good.E.g. Face cream, shampoo, hair oil etc
Physical Good – cosmetic material Along with products loreal also have their saloons/parlour
Hence, in marketing, focus is on providing/ satisfying service rather than providing only products.
VALUE/ COST/ SATISFACTION
Decision for purchase made based on value/ cost satisfaction delivered by product/ offering.
Product fulfills/ satisfies Need/ Want.
Value is products capacity to satisfy needs/ wants as per consumer’s perception or estimation.
Each product would have a cost/ price elements attached to it.
MARKETING MANAGMENT
Need – beautyMethod/ Products- Satisfaction – Estimated by the result or its effect
VALUE- Products capacity to satisfy.COST- Price of each product.
EXCHANGE/ TRANSACTION
To satisfy need/ want, people may obtain the product through- Self Production- By force or coercion- Begging- Exchange
EXCHANGE: – The act/ process of obtaining a desired product from someone by offering something in return. For exchange potential to exist, the following conditions must be fulfilled.TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process towards an agreement. When agreement is reached, we say a transaction has taken place.Proof of transaction is BILL/ INVOICE.
Monetary Transaction- money is paid for the product
MARKETING MANAGMENT
Type Société Anonyme
Industry Personal care
Founded 1909
Founder(s) Eugène Schueller
Headquarters Clichy, Hauts-de-Seine,France
Area served Worldwide
Key people Jean-Paul Agon (Chairman and CEO), Liliane
Bettencourt (Non-executive director and
major shareholder) Natalia Streignard
Products Cosmetics and beautyproducts
L'OREAL - BUSINESS POLICY AND STRATEGY
27 GLOBAL BRANDS
130 COUNTRIES
68 900 EMPLOYEES
613 PATENTS FILED IN 2011.
INTRODUCTION
L’Oreal group, founded in 1909, by Eugène Schueller, a
MARKETING MANAGMENT
young French chemist today is the world's largest cosmetics and Beauty Company. Headquartered in Paris, and by now the company is one of the leaders in the beauty market while providing a wide variety of products for each segment of its market tailored to meet expectations of its customers.
L’Oréal does and has always have believed in the strategy on innovation and diversification. Due to the products’ uniqueness, L’Oréal’s product became well-known and popular among all ethnic groups, not depending on gender.
MISSION
The company’s mission is to promote an approach to beauty that is fun, affordable, fulfilling, genuine and generous while meeting all stakeholders’ expectations by providing a portfolio of deeply diversified range of products. (L’Oréal Group 2007)
VALUES
Striving For Excellence: L’Oréal is trying to enchant the brand portfolio with continuously innovating products while meeting all standards set for quality and safety.Passion for adventure: their expertise drives their passion for new discoveries andinnovation in cosmetics. Enrichment through diversity: understanding and valuing each individual is an essential part of their corporate culture. Their staff members come from many different backgrounds and work together to offer a full range of products through varied distribution channels. Valuing individual talent: they are dedicated to enhancing the well-being of their consumers; they also ensure that each employee has the opportunity to develop his or her potential through personal and
MARKETING MANAGMENT
professional growth.Leading innovation in beauty: research, sensitivity to consumer needs, know-how and expertise are as essential as intuition. Building on their unrivalled experience and expertise, fundamental research is a specific focus of investment that drives creativity and contributes to developing the cosmetics of tomorrow.
Vision:“A company that is highly successful economically.A company where people are enthusiastic about going to work.A company that respects the environment and acts...
DISTRIBUTION
ITALY, AUSTRIA and HOLLAND Later US, RUSSIA and FAR EAST Now present worldwide Found in all major drug stores, supermarkets, beauty salons and
even direct mails Since 2009, the company has more than doubled distribution
reach - from 250,000 outlets to 600,000
PROMOTIONAL STRATEGY
Promotional posters Launch of beauty magazines for women Votre Beaute Clean children campaign Creation of jingles be nice & clean, smell good for dop shampoo Advertising through film commercials Selecting local brand ambassadors Open spa to promote brand
MARKETING MANAGMENT
Advertising campaign because I am worth it
POSITIONING STRATEGIES
Most Innovative High quality Advanced products Affordable price Only cosmetic brand in the world that has products in all
segments consumer, luxury, professional and pharmacuetical
DISTRIBUTION STRATEGY
Through agents and consignments to US, SouthAmerica, Russia, Far-East
CONCENTRIC DIVERSIFICATION
Hair color Styling aids, cleansers, fragrances, body and skin cosmetics etc.
HORIZONTAL INTEGRATION
Acquisition of Maybelline, red ken, Ralph Lauren, Soft Sheen Carson
MARKET DEVELOPMENT STRATEGY
MARKETING MANAGMENT
Develop strategies for Maybelline lipstick in Japan
RELAUNCHING BRANDS
Relaunched Helena and Rubinstein skin care and cosmetic brands
HITTING THE RIGHT AUDIENCE WITH RIGHT PRODUCT
CONGLOMERATE DIVERSIFICATION AND JOINT VENTURE STRATEGY
L'Oreal joint venture with Nestle.
INDIAN BRAND AMBASSADORS
AISHWARYA RAI BACHCHAN SOONAM KAPOOR
GRAPHS DESCRIBING THEIR STRATEGY
MARKETING MANAGMENT
Asia, PacificWestern Europe North America
Latin AmericaEastern Europe
05
101520253035 31
24
20
13
9
GEOGRAPHIC ZONE %geographic zone
Geographical distribution of products/ demand for products
Skincar
e
Haircar
e
Make-u
p
Perfumes
Toile
tries,
deodoran
ts
Oral co
smeti
cs
05
101520253035 31
25
1714
12
1
PRODUCT CATEGORY % product category
Concentration on different product category
MARKETING MANAGMENT
Consumer Products Luxury Products
Professional Products Active Cosmetics
0
10
20
30
40
50
60 52.1
25.5
14.9
7.2
DIVISION %division
Products distributed in different status
Skincare Haircare Make-up Hair colourants Perfumes Other
0
5
10
15
20
25
30 27.9
21.521.3
14.6
9.8
4.9
BUSINESS SEGMENT %Sales
MARKETING MANAGMENT
LOREAL COMPARISON WITH ORIFLAME
2010 2011
oriflame 1002.5 1014.8
loreal 3293 3057
250.00750.00
1,250.001,750.002,250.002,750.003,250.00
oriflame
loreal
OPERATING PROFITSO
PERA
TIN
G PR
OFI
TS
2010 2011
oriflame 1513.6 1493.8
loreal 19496 20343
2,500.00
7,500.00
12,500.00
17,500.00
22,500.00
oriflame
loreal
SALES MILLION €
SALE
S
MARKETING MANAGMENT
CONCLUSION
L’ORÉAL is the world market leader in cosmetics innovative and invest a lot of money in research and development Products are positioned in the high-priced segment because of
their quality They offer well coordinated products for different target groups To keep their strength alive they have to observe their
competitors like PnG and UNILEVER
-Thank you