HAIR CARE CATEGORY

KEY COMPANY FACTSPresent in over 130 countries. Dominant in COSMETIC Industry sector

globally. Main rivals-P&G; Unilever.Present in skincare, color cosmetics, Hair care,

Fragrances, Men’s grooming, Sun care category.

Growth of cosmetic industry- 3.6% (2014) as compared to 3.8% (2014)

MARKET ANALYSISBreakdown of worldwide cosmetic market

GEOGRAPHIC ZONE (%)

Africa, Middle East 2.8

Eastern Europe 7.3

Latin America 12.5

North America 20.9

Western Europe 21.8

Asia, Pacific 34.7

L'Oreal Paris-Professionnel productsSL NO PARTICULARS SCALE OF GROWTH-

2014

1. TOTAL SALES OF THE COMPANY 22.53 BILLION EUROS

2. CONTRIBUTION OF PROFESSIONNEL PRODUCT

14%

3. PROFESSIONNEL PRODUCT DIVISION SALES GROWTH

2.6%

4. OPERATING PROFIT 17.3% OF TOTAL SALES(3871 MILLION EUROS)

5. STRATEGIC FOCUS--2014 (1) HOLISTIC BEAUTY(2) NEW MARKETS(3) EDUCATION AND

TRAINING

SEGMENTATION

Psychographic And demographic based

market segmentation( i.e., based on lifestyle and personality).

Niche level of specialization

(Premium Brand)

UNIQUE DISTRIBUTION STRATEGY

Sold only in sole and exclusive place- hair dressing salons.

Mutually beneficially relationship. Customer relationship management(CRM). Indirectly capture, hair dressing salon market. Does not use any system of distributors. Sales representatives play key role as

Intermediaries.

PRICING STRATEGY

• The product has a premium brand positioning with prices above market average.

• Company has followed ‘Dual pricing Strategy’ in India owing to huge competition.

• (Cost of production) + (Marketing Cost) + (R&D Cost) + (Education & Training Cost) + (Profit margin)= MRP

COMMUNICATION STRATEGYSL NO AVENUES OF ADVERTISING

1. TESTIMONIAL DVERTISEMENTS

2. RELY ON INTERNATIONAL CAMPAIGNS

3. L’OREL COLOUR TROPHY TALENT COMPETITION

4. FRENCH INSPIRATION SHOW

5. WEB PAGE WITH UNIFORM GLOBAL DESIGN

6. MAGAZINES- VOGUE, ELLE, DOLCE VITA etc..

BRAND AMBASSADORS