L’Oréal

MINI CASE STUDY

Brand Portfolio• French cosmetic company founded in 1909 by a

young chemist, Eugène Schueller.

• Caters to the beauty demands of women of different cultures through constant research and innovation.

• Positioning - High end brand in consumer division

• Target group - The affluent women , the ageing and also the masses of the developed countries.

Five areas of beauty:

Skin care, hair care, makeup, hair colouring, perfume.

Different groups of brand : 1. Consumer Products (Maybelline, Garnier, Ombrelle)

2. L’Oréal Luxe (Lancome, Giorgio Armani, Diesel, Ralph Luren)

3. Professional Products (Matrix Essentials, Carita, L’Oréal Professionnel)

4. Active Cosmetics (Vichy, Sanoflore)

“Beauty helps us feel better and live better.”

Beauty for all, beauty for each individual

Mission

To win over another one billion consumers around the world by creating the cosmetic products that meet the infinite diversity of their beauty needs

and desires.

INNOVATION

“Research has always been at the heart of L’Oréal growth, with three major drivers of innovation: active

ingredients, formulation, evaluation”

-Laurent Attal, Executive Vice President, R&D

Research & Development

Based on the conviction:

“Science, the driver of innovation in cosmetics”

• Advanced Research

• Applied Research

• Development

Keys to successful local product launches

• Understands the unique beauty routines and needs of different cultures, climates, traditions and physiologies.

• Listens to and observes consumers around the world.

Global Diversity • Strengthened its global presence through the six

regional poles- Europe, United States, Japan, China, Brazil and India.

• Believe that there is no single and unique model of beauty but an infinite diversity of forms of beauty.

“You have to be local and as strong as the best locals, but backed by an international image and

strategy.”-Giles Weil, Head of Luxury products

Strengths

• High end advertising

• Operational in over 130 countries and over 40 manufacturing plants.

• Efficient research and development

• has over 60,000 employees globally.

• Active in the dermatological fields. Top nanotechnology patent-holder in the United States

Weaknesses • Decentralised organisational structure.

• Stiff competition from the leading cosmetic established brands.

The L’Oréal Foundation

• Identify and support women through actions and programs

• For Women in Science and Beauty for a better life.

• “Beauty for a better life” : Well-being and beauty treatments to restore the self esteem of women.

• commitment to the fighting spirit of women throughout the world.

Vs.

Competitors

Future • Growing market that ranges from the

affluent, the ageing and also the masses of the developed countries.

• Greater market share because of the numerous patents registered by the company.

Disclaimer

This presentation was made by Riya Chhikara, DRC,DU as a part of an internship under the guidance of Professor Sameer Mathur, IIM Lucknow.