The L'Oréal Group is the world's largest cosmetics and beauty company.

  With its registered office in Paris and head office in the  France.

It has developed activities in the field of cosmetics. Concentrating on hair colour, skin care, sun protection, make-up, 

perfumes and hair care.

The company is active in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States.

Introduction

L’Oréal as a business

• 1st cosmetics group worldwide.

• 17.5 billion euros of sales in 2009.

• 130 countries.

• 64,600 employees.

• 674 patents registered in 2009

Loreal India

• L’Oreal entered Indian market in 1990, in partnership withMU group with the Ultra Doux range of hair care products.

• L’Oreal India In 1994, L’Oreal set up its wholly-owned subsidiary for marketing its consumer products in India

• L’Oreal has set up its own manufacturing plant in Pune

L'Oréal

Industry Cosmetics

Founded 1909

Founder(s) Eugène Schueller

Headquarters Clichy, Hauts-de-Seine,France

Area served Worldwide

Key people Jean-Paul Agon (CEO), Sir Lindsay Owen-Jones(Chairman), Liliane Bettencourt(Non-executive director and major shareholder)

Revenue ▲€17.47 billion (2009)

Operating income ▲€2.578 billion (2009)

Profit ▲€1.792 billion (2009)

Employees 67,660 (2008)

Subsidiaries The Body Shop

Website www.loreal.com

Products of loreal

Brand ambassador of loreal

L’Oreal operates through 4 divisions

•Consumer product division -L’Oreal Paris,Garnier,Maybelline NY.

•Professional product division- -L’Oreal professional ,Matrix,Kerastase.

•Active cosmetic division -Vichy(It is a dermatological product).

•Luxury product division -Lancome,Biotherm,Giorgio armani,Ralph Lauren.

GARNIER FRUCTIS

FEATURES-

Garnier fructis fortifying shampoo-

•It Helps in getting rid off dandruff and the problem of dandruff does not reoccur with the use of this shampoo.

•It contains vitamin b3,b6,fruit acids,glucose and fructose.

•The hair becomes shiny.

•It has a good fragrance too. All the ingredients present in shampoo help a great deal in making hair soft and smooth.

•Great level of nourishment is imparted to the hair with the help of garnier fructise fortifying anti- dandruff shampoo.

•Garnier fructose sleek and shine shampoo is good for pricky hair.

COMPETITOR’S BRAND

•Hindustan unilever limited.

•Procter And Gamble.

•Palmolive.

•Revlon.

Hindustan unilever limited•Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company,.•Available in 20 distinct categories in home & personal care products and food & beverages.

•They endow the company with a scale of combined volumes of about 4 million tonnes and sales of over Rs. 13,000 crores.

• HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India.

•The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited.

products of hul

SUNSILK•Sunsilk is a hair care brand.The target market of sunsilk : girls, produced by the Unilever group.

•Sunsilk is Unilever’s leading hair care brand, and ranks as one of the Anglo-Dutch conglomerate's “billion dollar brands". •Sunsilk shampoos, conditioners and other hair care products are sold in 69 countries worldwide.

•Sold in different variety of different names in markets around the world including Elidor, Seda and Sedal. 

•In 1975, Sunsilk became the biggest name in hair care with 1,000,000 packs being sold every week.

•In 1980, the whole Sunsilk range was re-launched, with improved formulations and packaging design to bring the brand into the 1980s.

FEATURES-

• It provides real solutions to women ‘s every day hair needs. • It is enriched with olive serum nutri complex. • It gently cleanses &feeds your hair with nutrients strengthening it from roots to tips for long healthy and abundant hair.

•Sunsilk Tonic shampoo was launched, containing skin healing ingredient Allantoin – designed to help keep the scalp free from infection.

•Sunsilk hair spray was first launched in 1964 to enter an expanding hair-spray market.

Brand ambassador of sunsilk

COMPARISION

GARNIER SUNSILK

It helps in getting rid off dandruff, makes hair shiny and has good fragrance also.

Garnier fructose sleek and shine shampoo is good for pricky hair.

It is enriched with olive serum nutri complex, and provides real solutions to women ‘s every day hair needs.

It gently cleanses &feeds your hair with nutrients strengthening it from roots to tips for long healthy and abundant hair.

PROCTER AND GAMBLE

Procter & Gamble Co. is a Fortune 500 American multinational corporation headquartered in Downtown Cincinnati,Ohio that manufactures a wide range of consumer goods. It is 6th in Fortune's Most Admired Companies 2010 list. P&G is credited with many business innovations including brand management and the soap opera.

P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival.

Procter & Gamble is a leading member of the U.S. Global Leadership Coalition.

Products of P&G

P&G products available in India :-

Hair Care •Pantene•Head & Shoulders•RejoiceBaby Care •Pamper Fabric Care •Ariel•Tide detergent•Tide BarHealth Care Product •Vicks Men care •Gillette

Pricing strategies

Procter & Gamble's : uses low price strategy on some of its product lines.Maximum use of internet to know about the consumer’s need.

HEAD &SHOULDERS• Head & Shoulders is a brand of anti- dandruff shampoo produced by Procter & Gamble.• Head & Shoulders Classic Clean Shampoo is the top selling shampoo in the United States by dollar sales.

•Head & Shoulders was first introduced to the U.S. market in November 1961, as a blue-green shampoo formula.

•The brand's "Extra Strength" product had a cameo role in the 2001 film Evolution, where its startling copper orange color was shown..•Head & Shoulders was launced in 1997.

HEAD N SHOULDER’STarget customer : •Young Men and Women •Hair conscious Men and Women

Segmentation: Mainly used in urban and semi urban area. •User Status-Regular user, Potential user & non user. •Segmentation is also done for different age groups. •Different variety for different hair.

Positioning: Anti dandruff shampoo •Product strategy/mix: •All variety has almost Price same.

•Packaging and labeling :

Effective packaging-Provide Effective and efficient information regarding usage of product. •Sachet and bottles both are sleek, stylish and compact.•Attractive packaging provide Manufacturing date, expiry date and price of the product. •Proper cutting edge is available in sachet. •Different color are used for different variety.

•Guarantee: •H&S provide the guaranteed results. If you are not satisfied with the product than return for replacement

FEATURES

•For almost 50 years, Head & Shoulders has provided millions of consumers with superior scalp care. Head & Shoulders effectively targets the source of dandruff so men and women can feel confident that their hair looks great. With full lines of shampoos and conditioners.

• Fights Dryness.

•Calms Itching.

•Reduces Redness.

•Controls Oiliness.

•Gives Beautiful Hair.

Brand ambassador of head n shoulder

Revlon Revlon professional PRO YOU Colour shampoo – Is the essential treatment for every kind of coloured or de-coloured hair with a formula based on Ginkgo Biloba extract. It protects the hair from sun radiation and prevents the loss of colour. Its regenerative active formula keeps the colour intensity, whilst maintaining the structure of the hair. The hair recovers the colour tenacity and intensity.Maintaining the colour result longer, leaving it incredibly shiny, smooth and manageable.

Brand ambassador of revlon

Products of Revlon

PALMOLIVE

HALO It contains the natural protein and irresistible fragrances .The proven protiens in egg provide vital nourishment to weak hair leaving it soft and full of bounce.

Products of palmolive

Positioning and Distribution of Loreal

•It has positioned itself as high end brand in consumer division and also as affordable luxury.

•Distributed through prestige stores and broad distribution channel

Cont..Promotion: •It promoted through various magazines, television advertisement, home advertisements like hoardings,at malls on digital screen.

•Entered in direct marketingstrategy by contactingconsumers via email

Swot analysis

Loreal Brand image—WorldNo.1. •R &D-586patents: Innovation on products. Global brand:presence in 130 countries

Brand confusion Positioning in the myriad bran.

Emerging markets of developingcountries.Growing cosmetic and groomingmarket.Newer acquisitions—more range ofproducts

New channels on the electronic media.Local players in the new market expansions.Brand cannibalization.

P&G Leading Market PositionDiversified and innovative product PortfolioStrong Finances in past years

Quality control Problem Decreased Revenues in their Northeast Asian Market

Developing Markets Demographic trends across the world

CompetitorsRising cost of energy pricesEconomic slowdown in the US and Eurozone New Regulations

Strength weakness Opportunities

Threats

SWOT CONT…

Strength Weakness Opportunities

Threats

HUL:Leading consumer goods company in India 2. Power brands 3. Diversified business lines 4. Financial resources 5. Improved supply chain

Decreasing revenues 2. Falling share price 3. Inability to optimize costs as compared to rivals4. Weak brand presence in smaller cities.5. Lack of innovation and product development 6. Poor pricing strategy

Potential market in smaller cities2. Potential outsourcing business in India3. Greater customer demand of easy to useproducts 4.Introduction of high usability products

Competition from local brands Scarce water problem affecting demand for detergents and related goods. Price cuts by P&G

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