LOREALs CBBE MODEL.

BRAND SALIENCE:
Created in France, L'Oral Paris brings the sophistication and elegance derived from its
French heritage to women and men all over the world. L'Oral Paris offers leading-edge
products that out-perform the competition to people who care more about the way they look.
Our passion for innovation, performance, style and a sense of premium is encapsulated in the
'because you're worth it' philosophy. Our core values are supported by our strong investment
in scientific research and technology.
Over a third of the L'Oral Group's total turnover in this country is generated by L'Oral
Paris, making it the company's largest division in the UK. Today there are strongly
established L'Oral Paris brands across all of the key areas of the beauty market, including
the Plenitude skincare range, Elvive haircare and Studio Line styling products. Other brands
include L'Oral Paris Colour Cosmetics, Elnett, Rcital, Excellence, Fria, Perfect Blonde,
Open, Casting and L'Oral Kids.
BRAND PERFORMANCE:
Branding Strategy of L'Oreal 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 L'Oreal was ranked
first among all the cosmetics companies of the world.
L'Oreal Branding Strategy has achieved success throughout the world. Over the years, the
company is successfully producing and selling different cosmetic products, haircare 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 L'Oreal.
L'Oreal has been successful in generating a worldwide Brand Identity only because of the
company's powerful and efficient Branding Strategy. This successful Global Branding
Strategy of L'Oreal helped the company to earn significant levels of revenue in the past years
In the year 2005, L'Oreal was valued as a $18.89 billion company. In 2004, total value of the
L'Oreal Brand was $5902 million. In 2003, the company recorded a value of $5600 million.
In fact, from the year 1989, the Brand L'Oreal experienced continuous growth. The company
recorded double digit growth rate in consecutive years and in the year 2005, it became the
largest cosmetic company of the world.

BRAND IMAGERY:
LOral has been one of the most reputed brands in the cosmetics field. The brand has made
its presence felt in more than 100 countries, thanks to its numerous acquisitions worldwide.
With several brands in its kitty, LOral has carved a niche for itself with its unique strategies
and stands out from the other cosmetics brands.
The LOral group develops several important communication campaigns every year that
underline the ability and the growth of the group. It is omnipresent across several media
channels and the constant presence enables the brand to retain its reigning position in the
market despite stiff competition from numerous cosmetic brandThe commercial
communication of the group is made at a world level. The group proposes the same products
and leans on the same advertising campaigns. In that case, visuals are the same, the text
identical, the slogan is unchanged, and the ads are only translated with respect to countries.
However, in spite of its global presence, the group realized that it could not sell the same
product to all its consumers. The group knew how to diversify towards American, Asian or
Latin brands.
BRAND JUDGEMENT
Few of the women in the admiring crowd realize that the trendy ''New York'' Maybelline
brand belongs to French cosmetics giant L'Oreal. In the battle for global beauty markets,
$12.4 billion L'Oreal has developed a winning formula: a growing portfolio of international
brands that has transformed the French company into the United Nations of beauty. Blink an
eye, and L'Oreal has just sold 85 products around the world, from Redken hair care and
Ralph Lauren perfumes to Helena Rubinstein cosmetics and Vichy skin care.
Thanks to this strategy, masterminded by L'Oreal Chief Executive Lindsay Owen-Jones, the
French company has not only enjoyed a decade of double-digit growth but has pioneered new
ground rules for staying on top in a fiercely competitive industry. L'Oreal's net profits rose
12% in 1998, to $768 million, while its stock has soared 900% in the '90s.
L'Oreal's success is proof that when done right, global branding can speed growth in mature
consumer- products companies even when global markets themselves are shaky. Asia's
economy is a mess, Latin America is tottery. Other worldwide marketers, such as Procter &
Gamble Co., are suffering partly as a result. But L'Oreal is surging in markets stretching from
China to Mexico. Its secret: conveying the allure of different cultures through its many
products. Whether it's selling Italian elegance, New York street smarts, or French beauty
through its brands, L'Oreal is reaching out to more people across a bigger range of incomes
and cultures than just about any other beauty-products company in the world. That sets
L'Oreal apart from one-note marketers such as Coca-Cola Co., which has just one brand to
sell globally.
L'Oreal's strategy positions it beautifully to profit even further when the middle class begins
to grow again in emerging markets. Says Veronique Adam, analyst at J.P. Morgan Securities
Inc. in Paris: ''L'Oreal is the only real global leader in every segment of the industry.''
For Owen-Jones, the trick will be staying ahead in the game as his powerful rivals seek to
play the global branding game. From giant P&G to niche players such as Los Angeles-based
cosmetics maker Stila, L'Oreal's competitors are hustling to catch up. ''LOreal want to
become more of a global company like L'Oreal,'' says Yoshikuni Miyakawa, a general
manager of the cosmetics-marketing division of Shiseido Co., Japan's No. 1 cosmetics
company. Already, Shiseido is dominant at home and now expanding around the world.
Meanwhile, the French company is No. 10 in Japan, trailing rivals such as Clinique and Estee
Lauder.

BRAND FEELINGS:
it is customers emotional responses and reaction with respect to the brand. LOreal formed
in France, Paris, brings the sophistication and elegance consequent from its French heritage
to women and men all over the world. LOreal Paris offers leading-edge products that outperform the competition to people who care more about the way they look. The passion for
innovation, performance, style and a sense of premium is sum up in the customers money
spending worth and also its' philosophy. The core values are supported by strong investment
in scientific research and technology.
The LOreal Group total turnover by the Paris franchise making it the company's largest
division in the world. Today there are strongly established LOreal Paris brands across all of
the key areas of the beauty market, including the Plnitude skincare range, Elvive hair care
and Studio Line styling products. Other brands include LOreal Paris Color Cosmetics, Elnett,
Rcital, Excellence, Fria, Perfect Blonde, Open, Casting and LOreal Kids. The Consumer
Products Division in the Europe is dedicated to offering consumers innovative, high
technology beauty products from global brands at competitive prices. This is delivered
through a global strategy combined with a local understanding of the needs of women and
men of all ages.
BRAND RESONANCE:
The LOreal Group has three international brands named as LOreal Paris, Garnier and
Maybelline that offer hair care, sun care, hair coloring, skin care and make-up products. All
of these available from mass market retail outlets such as supermarkets, drugstores and
leading chemists throughout the world. LOreal Paris remains the finest mass-market brand. It
is offering consumers reachable luxury for skin care through providing its consumers leadingedge products that outshine the competition. Garnier, on the other hand, Europe's no1
brand for natural beauty products in hair care category that offers a complete collection for
healthy hair. Similarly, Maybelline offer world class quality for on screen requirements. The
LOreal Group performance is marvelous due to its distribution channel too. The company
focuses on go native strategy mean hire local firms in every country to distribute its
products. Secondly, First landing strategy that is first commercialization is bad thing if the
product is not available in a particular place. It has two bad impacts on the company: one
would be if product is not at a particular place and company runs there commercials the
negative word-of-mouth generate due to the consumers effortless struggle to search the
product. The other is the huge advertising budget shatter due to pointless direction. The
company by itself monitor, control and evaluate its channel performance especially
distributors. The company follow same marketing mix foe the whole world with a little bit
variation according to the economic conditions of a certain country. LOreal is known for its
strong control over its promotion, place, price and packaging strategy, which is decided from
the headquarters. For these points, only minor product adaptations are made in different
countries such as labels languages. All controls are very frequently checked to comply with
prices and selling places of the group marketing strategy.