EXECUTIVE SUMMARY

The project is a peek at LOreal Paris. It is a French cosmetics and beauty company,
headquartered in Clichy, Hauts-de-Seine. It is the world's largest cosmetics company, and has a
registered office in Paris. It has developed activities in the field of cosmetics, concentrating
on hair color, skin care, sun protection, perfumes and hair care, make up, the company is active
in the dermatology, toxicology, tissue engineering, and biopharmaceutical research fields and is
the top nanotechnology patent-holder in the United States. This project looks at the SWOT
analysis of LOreal, its international marketing strategies, its competitors in international market,
LOreal branding strategies etc.

Introduction To LOreal
The LOreal Group is a French cosmetics and beauty company, headquartered in Clichy, Hautsde-Seine. It is the world's largest cosmetics company, and has a registered office in Paris. It has
developed activities in the field of cosmetics, concentrating on hair color, skin care, sun
protection, perfumes and hair care,

make

up,

the

company

is

active

in

the dermatology, toxicology, tissue engineering, and biopharmaceutical research fields and is the
top nanotechnology patent-holder in the United States.

HISTORY
In 1909, Eugne Schueller, young French chemist of German descent, developed a hair dye
formula called Aurale. Schueller formulated and manufactured his own products, which he then
sold to Parisian hairdressers. On 31 July 1919, Schueller registered his company, the Socit
Franaise de Teintures Inoffensives pour Cheveux (Safe Hair Dye Company of France). The
guiding principles of the company, which eventually became LOral, were research and
innovation in the field of beauty. In 1920, the company employed three chemists. By 1950, the
teams were 100 strong; that number reached 1,000 by 1984 and is nearly 20,000 today.
Schueller provided financial support and held meetings for La Cagoule at L'Oral headquarters.
La Cagoule was a violent French fascist-leaning and anti-communist group whose leader formed
a political party Mouvement Social Rvolutionnaire (MSR, Social Revolutionary Movement)
which in Occupied France supported the Vichy collaboration with the Nazis. L'Oral hired
several members of the group as executives after World War II, such as Jacques Corrze, who
served as CEO of the United States operation. This involvement was extensively researched
by Michael Bar-Zohar in his book, Bitter Scent.
LOral got its start in the hair-colour business, but the company soon branched out into other
cleansing and beauty products. LOral currently markets over 500 brands and many thousands
of individual products in all sectors of the beauty business: hair colour, permanents, hair styling,
body and skin care, cleansers, makeup and fragrances. The company's products are found in a
wide variety of distribution channels, from hair salons and perfumeries to hyper - and
supermarkets, health/beauty outlets, pharmacies and direct mail.
LOral

has

six

worldwide research

France: Aulnay and Chevilly;

one

and

in

development centres:

the U.S.: Clark, New

two

Jersey;

in
one

in Japan: Kawasaki,Kanagawa Prefecture; in 2005 one was established in Shanghai, China, and
one in India. A future facility in the US will be in Berkeley Heights, New Jersey.

From 1988 to 1989, LOral controlled the film company Paravision, whose properties included
the Filmation and De Laurentiis libraries. StudioCanal acquired the Paravision properties in
1994.
LOral purchased Synthlabo in 1973 to pursue its ambitions in the pharmaceutical field.
Synthlabo merged with Sanofi in 1999 to become Sanofi-Synthlabo. Sanofi-Synthlabo
merged with Aventis in 2004 to become Sanofi-Aventis.
On 17 March 2006, L'Oral purchased cosmetics company The Body Shop for 562 million.
L'Oral's advertising slogan is "Because I'm worth it". In the mid-2000s, this was replaced by
"Because you're worth it". In late 2009, the slogan was changed again to "Because we're worth
it" following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko.
The shift to "we" was made to create stronger consumer involvement in L'Oral philosophy and
lifestyle and provide more consumer satisfaction with L'Oral products. L'Oral also owns a Hair
and Body products line for kids called L'Oral Kids, the slogan for which is "Because we're
worth it too".
In 1987, during the growth years of the mail order business, L'Oral and 3 Suisses founded Le
Club des Crateurs de Beaut for mail-order sales of cosmetic products, with brands including
Agns b., Cosmence and Professeur Christine Poelman among others. In March 2008, L'Oral
acquired 3 Suisse's stake, taking sole control of the company. In November 2013, L'Oral
announced that Le Club des Crateurs de Beaut would cease activity in the first half of 2014.
In November 2012, L'Oral inaugurated the largest factory in the Jababeka Industrial Park,
Cikarang, Indonesia, with a total investment of US$100 million. The production will be absorbed
25 percent by domestic market and the rest will be exported. In 2010, significant growth
occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net sales.
In January 2014, LOral finalised the acquisition of major Chinese beauty brand Magic
Holidings for $840 million.

On 11 February 2014 it was announced that L'Oreal had sealed a deal worth 3.4bn to buy back
8% of its shares from Swiss consumer goods giant Nestle. As a result of the deal, Nestles stake
in LOreal will be reduced from 29.4pc to 23.29pc while the Bettencourt Meyers familys stake
will increase from 30.6pc to 33.2pc. Nestle has owned a stake in LOreal since 1974 when it
bought into the company at the request of Liliane Bettencourt, the daughter of the founder of
LOreal and world's richest woman, who was trying to prevent the French state's intervention in
the company.
On 20 February 2014, Shiseido agreed to sell its Carita and Declor brands to LOral for 227.5
million (US$312.93 million (2014)).
On 18 June 2014, L'Oral agreed to acquire NYX Cosmetics for an undisclosed price, bolstering
its makeup offer in North America where its consumer-products unit has faltered.
In September 2014, LOral announced it had agreed to purchase Brazilian hair care company
Niely Cosmeticos Group for an undisclosed amount.
In 2015, Soo Joo Park became LOral's first Asian-American global spokesmodel

 LOREAL MISSION
For more than a century, we have devoted our energy and our competencies solely to one
business: beauty. It is a business rich in meaning, as it enables all individuals to express their
personalities, gain self-confidence and open up to others.

Beauty is a language.
LOreal has set itself the mission of offering all women and men worldwide the best of cosmetics
innovation in terms of quality, efficacy and safety. By meeting the infinite diversity of beauty
needs and desires all over the world.

Beauty is universal.
Since its creation by a researcher, the group has been pushing back the frontiers of knowledge.
Its unique Research arm enables it to continually explore new territories and invent the products
of the future, while drawing inspiration from beauty rituals the world over.

Beauty is a science..
6

Providing access to products that enhance well-being, mobilizing its innovative strength to
preserve the beauty of the planet and supporting local communities. These are exacting
challenges, which are a source of inspiration and creativity for LOreal.

Beauty is a commitment.
By drawing on the diversity of its teams, and the richness and the complementarity of its brand
portfolio, LOreal has made the universalization of beauty its project for the years to come.

LOreal, offering beauty for all

LOREAL
OUR ETHICAL PRINCIPLES

Our principles are Integrity, Respect, Courage and Transparency.

Our Ethical Principles shape our culture, underpin our reputation, and must be known and
recognised by all LOral employees.
Integrity because acting with integrity is vital to building and maintaining trust and good
relationships.
7

Respect because what we do has an impact on many peoples lives.

Courage because ethical questions are rarely easy but must be addressed.
Transparency because we must always be truthful, sincere and be able to justify our actions and
decisions.

PRODUCT RANGE OF LOreal

10

 SKIN CARE RANGE

SKIN NEEDS

Anti-aging

Whitening

Hydration

UV protection

Make-Up Remover

BRAND

Revitalift

Youth code

White Perfect

Hydra Fresh

UV Perfect

Make-Up Remover

Skin Perfect

Go 360

Extraordinary Oil

PRODUCT TYPE

Cleanser & toner

Serum

Day moisturizer

Night moisturizer
11

Eye cream

UV protection cream

Scrub

UV Protect Face Mist

Face Oil

Power Water

Day Cream

COSMETICS

FACE

Base

Liquid Foundation

Compact

Blush

BB Cream

Concealer

EYES

Mascara

Eye shadow

Eyeliner

BRAND

Color Riche

True Match

Infallible Lipsticks

Colour Infallible

12

Super Liner

Base Magique

Lucent magique

Lash Architect

Caresse

Pure Reds

Mat Magique

LIPS

Lipstick

LipGloss

Lip Liner

NAILS
Nail Art

HAIR CARE

HAIR TYPE

Damaged Hair

Hair Fall

Nourished Hair

Dull Hair

Colored Hair

Dry hair

PRODUCT TYPE

Shampoo

13

Conditioner

Masque

Tonic

Oil

Serum

BRAND

Total Repair 5

Fall Repair 3X

6 Oil Nourish

Color Protect

Nutri-Gloss

Smooth Intense

Fall Resist

HAIR COLOR

DESIRED COLOR

Brown

Black

Burgundy

Fashion

PRODUCT TYPE

Permanent

Semi-Permanent & No Ammonia

BRAND
Excellence Crme
14

Casting Crme Gloss

MEN SKIN CARE

NEED

Oil Control

Dull & Tired Skin

PRODUCT TYPE

Cleanser

Moisturizer

Shaving

BRAND

Hydra Energetic

White Activ

15

LOreal International Marketing Strategy

The purpose of this report and its study is concentrated to have a glimpse and understanding of
International marketing strategy. In this report, I will discuss the issue encompassing L'Oreal and
its global marketing strategy. The subject concentration in this report limits its analysis on the
theme of 'International Marketing Strategy' of L'Oreal, and how the company as a global MNC in
cosmetic manufacturing and sales is strategized globally. For the purpose of this work, L'Oreal is
selected because the company has its market presence in almost all part of the globe. Its products
and the quality that it offers to consumers are also assumed to be one of the greatest strength of
the company. In terms of the sales figures as well, the company is well ahead in the leader stage.
Thus, taking this backgrounds into consideration, it is thus clarified that the attempt of this work
is theoretical in nature, which means that research analysis overall is secondary in nature and
does not involves primary research. Data required for the research is gathered from relevant
source as feasible to justify the case assumption. It is also important to note that international
marketing strategy and its literature also is being used extensively as a resource, so as to
understand the concepts and its theoretical meaning. In doing, it facilitates a research on the
subject matter that is in-depth to some extent and logically sounds in its presentation.
Structurally, the paper is arranged in streamlined manner starting with the introduction about the
16

company, so as it gives us the glimpse about the company overall. It is followed by defining the
meaning of global marketing strategy, so as the attempt of this work is streamlined and
specifically meets the objective criteria of the research subject defined above.

Introduction
L'Oreal international is a group of companies with its branches and subsidiary companies
scattered across the globe. L'Oreal is considered to be one of the biggest cosmetic manufacturers
in the world today. "L'Oreal SA Paris is the world number one cosmetic company specializing in
the development and manufacturing process of hair care, hair color, skin care, color cosmetics
and fragrance for consumer and professional market." (James S O'Rouke, 2011, p. 362) In terms
of its sales figure and market presence globally, L'Oreal as a corporation is tremendously huge.
The company was founded many decades back. According to the data that can be gathered, it is
believed that L'Oreal was founded by "French chemist named Eugne Schueller in the year 1907.
The said chemist and founder of L'Oreal is also a renowned inventor of first ever hair colorant or
dye in its synthetic nature, which revolution the beauty and salon industry." (L'Oreal)
The company was founded "in France and has many interesting history attached to it when
viewed from a cultural perspective. In the early part of 1910, women in Paris were very obsessed
with hair coloring and dye. Given the hypes in such aspects, French chemist Fugne Schueller
invented the first every hair dye in synthetic. And since then the foundation of L'Oreal happened,
and it was a time that the company never looked back. It is also interesting to note that the
company was finally incorporated on 1939" (FundingUniverse) Starting from the year 1907,
"today L'Oreal is the world largest cosmetic company marketing 500 brands and more than 2000
products in all areas of the beauty business." (James S O'Rouke, 2011, p. 362)
These fact sheets give a clear precise glimpse of the company since its founding days. As we
have detailed, L'Oreal given the change in market structure and globalization impact has adopted
in the best way, to ride the tide of competition and to stand ahead in the race for the number spot
in the cosmetic and beauty industry. When we observe with the present time, products and
merchandise of L'Oreal brand can be found in every corner of the globe, and in almost every
retail outlets. Its brand is so famous that even most of the saloons across the world prefer L'Oreal

17

hair colorant than any other products. This is interesting indeed to observe, given that the
company started from the humble background.
Thus, it would be interesting to analyze the overall feature of L'Oreal marketing strategy and its
internal presence. However, before we make an attempt in the respect, it is prudent also to
understand the meaning of what defines 'global marketing strategy' in context of international
business and its management components. The following paragraph details the discussion related
to global marketing strategy and its meaning.

What is the Meaning of Global Marketing Strategy?

To begin with, we should note the established facts that globalization and its impact have had a
tremendous appeal in the world economy. With the impact of globalization, more and more
corporation are going international, given that the market is huge, so is the risk as well as
business return. The economic liberalization as we understand is one subject of globalization.
There is no doubt in that regard. It also an established facts that today management and its
processes overall is more concerned with the intricacies of the internal market and its
components.
Hence, when viewed from this respect it is understood that global marketing strategy
encompasses the management process and its practicality has a lot to do with strategizing and
policy formulation that focus their attention in the international market, through many variety
and forms, such as merger, acquisitions. However, it would be wise though to have a glimpse and
understand global marketing strategy from a scholastic point of view. In that sense, Jean-Pierre
Jeannet, H.David Hennessey (2005) defined "global marketing strategy and management as the
process involving a coherent, unified and integrated marketing strategy for a product or services
against the entire global market opportunity." (Jean-Pierre Jeannet, 2005, p. 6) This definition
gives a clear definite point as to what composed the meaning of global marketing strategy. The
meaning of such a marketing strategy is like with any other marketing strategy. The only
difference is that global marketing strategy is more focused and unified in a sense, and its
purpose also is aim to meet the entire global market opportunity.

18

Market Strategy and its Setup

Global marketing strategy is more in-depth and broadened in one sense of the term. It is simply a
principle of marketing however on a global scale. Setup of global marketing strategy has a lot to
do with understanding the nature of global market itself, and most importantly the environment.
Business environment across the globe has different economic, social and political influence.
Thus, it is believed that selecting a global market target for examples when strategizing is a good
idea.
In that sense of the term, we can differentiate global target marketing in three features, "namely
standardized global marketing, concentrated global marketing, and differentiated global
marketing." (Keegan, 2002, p. 227)
Discussion
In this section of the report, Global marketing strategy of L'Oreal is concentrated on a cross
cultural arena spanning four market destination. They are namely,
Asian Market
European Market
North America Market
The African, Orient and Pacific Region
In each of these four markets, each particular national market is identified. As the case is with
Asian market, the concentration of the study and its analysis has given emphasis on Chinese,
Thailand and Japanese. When it matter to L'Oreal marketing in Europe, France, UK and
Germany they are the hotspot discussion regional market and its range. As far as it goes with
North America region, the main market destination to be discussed is US and Canada. Finally,
the fourth marketing regions of L'Oreal are Africa, Orient and Pacific Region which includes
discussion and analysis of L'Oreal in India, Australia and UAE.
Thus, it would be interesting to trace the segmentation in each regional market base of L'Oreal as
discussed below.

19

Market Strategy and its Setup: Global Marketing Strategy of

L'Oreal in Asia
At present L'Oreal is one of the best company in the whole world in the field of cosmetic
products. The cosmetic products of the L'Oreal are widely used and specially the hair colour
which was introduced by L'Oreal few years ago. L'Oreal is very famous in Asia and their
products in Asia are very cheaper than the other companies and are used by majority of people in
china, Thailand, Japan etc. L'Oreal is famous and very successful because of their global
marketing strategies which are very helpful and also distinct from the strategies used by other
companies in this field. L'Oreal in Asia uses the sustainable strategy that is of growing the
company as the demands of cosmetic products in the countries like china, Thailand etc is in great
amount. This company uses the strategy of suspicious brand management and they also brought
the strategy of more suspicious acquisitions. The main problem that a company like L'Oreal
faces in Asia is of competition given by the other companies dealing with the cosmetic products.
To overcome this problem in Asia these companies use the strategy of selling good quality
products at the cheaper rates than the other companies. One of the best strategies of L'Oreal in
Asia is of diversification of the brand and the main reason behind this strategy by L'Oreal is to
make them palatable in the local cultures. L'Oreal in Asia aims at the management of the global
brands with the local variations and this means that their main aim is of becoming a local and not
the foreign company in Asia. For example L'Oreal in Thailand has given local names to their
stores and most of the employees present in this company, are local people of Thailand. It is
because of all these strategies; L'Oreal is very successful in whole Asia. (L'Oreal: Expansion into
China, 2008)

Market Strategy and its Setup: Global Marketing Strategy of

L'Oreal in European Market
L'Oreal is the only company which uses the strategies which also supports the people in many
ways and not only in providing good quality products at cheaper rates. L'Oreal used different
strategies of marketing in the European market like they used the strategy of nurturing selfesteem of the people with beauty. In France, L'Oreal created the programs like "Beauty from the
20

heart" for helping the people made helpless by illness or any kind of negative life experiences. In
the countries like UK and Germany, many of the women and also the young people regain their
confidence and their self-image gradually by using the cosmetics which are provided by L'Oreal.
In European countries L'Oreal also used the marketing strategies like taking calculated amount of
risk etc but most of the strategies are related to the growth of the people mentally and not only
for the beauty or the fashion purpose. Various innovative treatment programs are launched by
L'Oreal for the young people of European countries and this company also launches the free
skincare and make-up workshops for the women suffering from cancer. For example in France a
programme named as "La Vie, de Plus Belle" offers the free skincare and makeup for the cancer
suffering women in all over the France. This helps them to cope with the treatment's side effects
and it also helps them to retain their self-esteem which is very important for a patient. In the
European countries L'Oreal generally uses the strategy of the management of brand by which
L'Oreal had made a large amount of brands which are rooted in the local culture and which all
appeals to the various segments of the global market. By using these social types of strategies for
the people of Europe has helped L'Oreal in expanding their business in the whole Europe.

Market Strategy and its Setup: Global Marketing Strategy of

L'Oreal in North American Market.
North American markets are considered as a perfect place for the companies like L'Oreal, Olay,
ponds etc. The best business of L'Oreal comes from the market of US. The reason for this much
success is that L'Oreal uses very good global marketing strategies in North America and the other
countries like Canada etc. One of the successful strategies of L'Oreal in US market is brand
extensions which includes the extensions of the brands after doing a complete research. For
example when L'Oreal launched a shampoo for kids they firstly made a complete research and
also debated about the new launch or for an extension. In US and Canada L'Oreal uses the
strategy of frequent advertisements and promotions. As we know in the present scenario proper
advertisements and promotions are very important for any company because people follow the
promotions and due to which the demands of the products like hair colour increases at a very
rapid rate. We can clearly understand the advertisement and the promotions of L'Oreal through
their media budget. L'Oreal has the twelfth largest media budget in the world which is much
21

more than the other companies of this field. For example in the late 1990's the expenditure of
L'Oreal advertising and promotion was jumped from the 37% to around 47% of the total amount
of sales. The global ad spending of L'Oreal was increased to $1.25 billion which was on par with
the company named as coca cola. The best thing about this company is that they have a separate
and very distinct policy of promotion in the market of US. Matrix is the number one brand of
L'Oreal in US and the main reason behind the success of matrix is the frequent and distinct
advertisement and promotion of the cosmetic and the hair products. The people of countries like
Canada like to use new products that mean they like changes in their product after some interval
of time. So by keeping this thing in mind L'Oreal uses the strategies of modifications which
mean they modify their existing products according to the latest tastes and fashion of the local
people. According to latest surveys of the people of L'Oreal company, majority of the profits of
this company is because of US and these perfect strategies used by this company in US is the
reason behind this type of success specially in north American market. (Helping vulnerable
people)

Market Strategy and its Setup: Global Marketing Strategy of

L'Oreal in Africa, Orient and Pacific Region
Like other countries in the world L'Oreal is also very successful and equally famous in Africa
and pacific region. L'Oreal entered into the market of India in the year 1997 and at that there was
not much awareness about the sniff of structure in the industry of hairdressing. In the countries
like UAE and Australia, proper and the organized education was totally absent and perfect and
well trained hairdressers were also not present at that time. Despite of all these problems L'Oreal
in India made some of the strategies and one of the best strategies of L'Oreal is that they
launched various technical training centers and they even opened a club of only the hairdressers.
IN UAE, L'Oreal products which were professional began selling through parisienne salons
while the other companies have begun retailing their range of hair color to power growth.
L'Oreal uses a global marketing strategy of launching its successful brands all around the world.
For example in February of this year only, L'Oreal made an announcement of the arrival of the
matrix which is the number one brand of L'Oreal in US to India, UAE etc with a reason of
adding range of hair products to their existing products at affordable prices. The main thing
22

about this company is that they make strategies according to the local culture of different
countries and not uses the same strategies in every country. Because of all these strategies,
L'Oreal gains a huge profit from Europe every year. (L'Oreal's Global Branding Strategy)

Understanding of different cultural distinctions for international

market
For L,Oreal knowledge of variant Culture is of great importance so as to make a company
acquire a firm base in the market of any country. In order to succeed it is very essential for a
company to understand the different cultural distinctions between the different cultures.
When an MNC explores any market for selling its specific services or product it has to focus
majorly on the purchasing power of the customers, their tastes and preferences, than only they
can succeed.
All marketing related activities and promotional strategies are designed taking into consideration
the Cultural Background of the particular region where the company is planning to launch its
products and the Services.
If any company fails to take into consideration any cultural aspect and the other related factors
that it might affect the company to stay for a longer time and would be thrown out of the market
and the region. Even the geographical factors plays a very important role that Loreal should take
into consideration in order to have feasible trade , as the landscape and conditions of transport
might differ in every region, which leads to decide whether to use air , road or any other mode.
The same reward schemes, motivational methods, desired working environments, etc also cannot
be the same for different employees working for the company in the different nations and thus it
also needs the understanding of different aspects of the impacts of the cultural differences.
Proper analysis of the Macro and the Micro Environmental factors should be done in order to
study how much technological and economical and politically that country is sound in order to
carry out trade with them.

23

Whether its an Asian Market, European market, North American Market or the Pacific Region ,
everywhere the culture differs in terms of varied factors.
So it becomes the responsibility of the Company to do a proper scanning of these factors in order
to have their longer stay in the region so that they can attain a Top most Competitive position by
adapting to various regions cultural factors in their Global marketing Strategies.
Therefore the major things that should be kept in mind for L'Oreal while doing globalised
business is to form an effective global strategic team for defining the trading policies to work in
any country. The strategy of globalization should encompass of major factors like cultural
differences, economic policies of the country etc. moreover the varying lifestyles of the peoples
and the rapidly changing economies even should also be kept in mind.

BRANDING STRATEGY OF LOREAL

Branding Strategy of LOreal has enabled the company to spread its business not only in Europe
but also in Asia and Latin America. In the year 2005, the Brand LOreal was ranked first among
all the cosmetics companies of the world.
LOreal Branding Strategy has achieved success throughout the world. Over the years, the
company is successfully producing and selling different cosmetic products, hair care and
skincare products in almost 150 countries of the world. This has been possible because of the
well established Brand Name and Brand Image of LOreal.
LOreal has been successful in generating a worldwide Brand Identity only because of the
companys powerful and efficient Branding Strategy. This successful Global Branding Strategy
of LOreal helped the company to earn significant levels of revenue in the past years.
In the year 2005, LOreal was valued as a $18.89 billion company.
In 2004, total value of the LOreal Brand was $5902 million.
In 2003, the company recorded a value of $5600 million.
In fact, from the year 1989, the Brand LOreal experienced continuous growth. The company
24

recorded double digit growth rate in consecutive years and in the year 2005, it became the largest
cosmetic company of the world.
The specialty of LOreal Branding Strategy is that it has succeeded almost in every country,
wherever LOreal has entered. The Branding Strategy of LOreal was powerful enough to spread
itself to the markets of different countries rather than restricting itself to a single country.
In the 1990s, LOreal used to generate the largest volume of sales from Europe, where the major
portion used to come from France. But, a decade after, the situation started to change. The
Branding Strategy of LOreal started to concentrate in the markets outside France. The initiative
proved to be successful and in the year 2004, the company generated 85% of its consolidated
sales from the markets outside France. The LOreal Brand experienced success both in Asia and
Latin America, even when the global economy was in a shaky position.
In short, it can be said that, reason behind the success of Brand LOreal lies in the fact that the
company succeeded in reaching out to the customers of different countries of the world, across
different income ranges and cultural patterns.

L'Oral
Parent Company

L'Oral

Category

Cosmetics and beauty products

Sector

FMCG

Tagline/ Slogan

Because youre worth it

USP

Movie stars and celebrities as brand ambassadors

STP

25

Segment

Women looking for beauty products

Target Group

Upper class urban women

Beauty products for women as every women is worth it

Positioning
Product Portfolio

1. Garnier Fructis Shampoo

2.Garnier

Bodycocoon
3. Garnier Mineral Deodrant

4. Garnier Color

Naturals
5. Garnier Hair Gels

6. Maybelline

Cosmetics
7. L'Oral Paris
Brands
SWOT Analysis
Strength

1. It is the worlds largest beauty and cosmetics company

2. Has over 60,000 people employed globally
3. High product quality, excellent advertising and brand
visibility
4. Top international celebrities as brand ambassadors give a
26

premium brand image

5. Excellent global distribution ensures maximum reach of
products
6. Loreal has over 20 global brands available in 130
countries
7. There are over 38 factories with over 5 billion units
manufacturing annually
1. Due to many subdivisions, employee management
becomes a challenge
2.Presence of other established brands in the cosmetics
Weakness

segment means difficult to increase market share

1. Tap rural markets and increase penetration in urban areas
2.Mergers and acquisitions to strengthen the brand
3.Increasing purchasing power of people thereby increasing

Opportunity

demand
1. Intense and increasing competition amongst other FMCG
companies
2.FDI in retail thereby allowing international brands

Threats

3. Competition from unbranded and local products

Competition in International Market

Competitors

1.Maybelline
2.NYX

27

3.ELF
4.Covergirl

CONCLUSION
The L'Oral Paris Brand Division of LOral USA, Inc. is a total beauty care company that
combines the latest in technology with the highest in quality for the ultimate in luxury beauty at
mass.
L'Oral Paris is a truly global beauty brand with many internationally renowned products. For
most, the name L'Oral is immediately evocative of the brands signature phrase, "Because I'm
Worth It. the concept behind the legendary advertising campaign for the Superior
Preference hair color launch in 1973. Today, it represents the essence of the L'Oral Paris brand
as a whole, a spirit which is about helping every woman embrace her unique beauty while
reinforcing her innate sense of self-worth.
As the biggest beauty brand in the world, L'Oral Paris has an unparalleled commitment to
technology, research and innovation, providing groundbreaking, high-quality products for
women, men, and children of all ages and ethnicities. L'Oral Paris is notably dedicated to
celebrating the diversity of beauty the companys broad range of spokespeople include Sonam
Kapoor, Aishwariya rai, Andie MacDowell, Diane Keaton, Jennifer Lopez, Julianna Margulies,
Eva Longoria, Laetitia Casta, Freida Pinto, Doutzen Kroes, Aimee Mullins, Julianne Moore, and
Karlie Kloss.

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BIBLIOGRAPHY
http://www.lorealparisusa.com/en/About-Loreal-Paris/Overview.aspx
https://en.wikipedia.org/wiki/L%27Or%C3%A9al
http://www.loreal.com/brand
http://www.loreal.com/group/who-we-are/our-mission

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