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ON
CUSTOMER SATISFACTION ON
1. INTRODUCTION
2. OBJECTIVES
3. RESEARCH METHODOLOGY
4. COMPANY PROFILE
5. LITERATURE REVIEW
6. DATA PRESENTATION AND ANALYSIS
7. FINDINGS
8. CONCLUSION
9. LIMITATIONS
10. RECOMMENDATION
11. BIBLIOGRAPHY
12. ANNEXURE
INTRODUCTION
INTRODUCTION:
L’Oreal is the global leader in cosmetics, with 25 brands. They have 5 key areas
of expertise − hair care, hair colorants, skincare, make-up and fragrances. There is a huge
motive behind the study of L’Oreal.
L’Oreal is a listed company, but the founder's daughter Liliane Bettencourt and the Swiss
food company Nestlé each control over a quarter of the shares and voting rights.
The company's international brands include: Anais Anais, ARTec, BioMedic, Biotherm,
Cacharel, Dermablend, Drakkar Noir, Garnier, Giorgio Armani Parfums and Cosmetics,
Kerastase, Kiehl's Since 1851, La Roche-Posay, Lanc¥me, L'Oreal Paris, L'Oreal
Professionnel, L'Oreal Technique, Matrix, Maybelline New York, Paloma Picasso, Ralph
Lauren Fragrances, Redken 5th Avenue NYC, Shu Uemura, SkinCeuticals, SoftSheen-
Carson, Vichy, Viktor&Rolf.
The company was originally founded in 1953 as Cosmair, Inc as the exclusive U.S.
licensee of the L'Oreal Group.
In 1972, L'Oreal unveiled the first TV ads for the "I'm Worth It" campaign for Preference
haircolor which would help boost sales.The company's acquisitions have led to
significant growth which include: Redken in 1993, Maybelline in 1996, Soft Sheen in
1998, Matrix, Kiehl's and Carson in 2000, ARTec in 2002 and SkinCeuticals in 2005.
Cosmair would become a wholly owned subsidiary of L'Oreal SA Paris in 1994
L'Oréal India
L’Oréal India Private Limited is a wholly owned subsidiary of L’Oréal S.A.
Headquartered in Paris, L’ORÉAL is the global leader in cosmetics with 5 key expertise
in hair care, hair color, skin care, make-up and fragrances. L’Oréal’s leadership is
achieved through cutting-edge technology with a portfolio of well-known brands that
answer all beauty needs and are distributed in all channels.
Each brand benefits from considerable investments in research made by the L'Oréal
Group. The Group's research efforts, unique in the beauty industry, permit each brand to
benefit from formulas specifically adapted to the needs of men and women worldwide,
within each market or distribution circuit that is present.
L'Oréal India has over 600 employees and has a strong track record with consistent
double digit sales growth yearly.
In the year 1907, Eugene Schuller , a young French chemist, developed an innovative
hair-colour formula. He called his improved hair dye AUREOLE. With that the history of
LOREAL began. Eugene Schuller formulated and manufactured his own products, which
he then sold to parsian hairdressers.
The future Loreal . The guiding principals of the company that would become Loreal
were put into place from the start: research and innovation in the intrest of beauty. During
the early twentieth century, Schuller provided financial support and held meetings to La
Cagoule at loreal headquarters. La Cagoule was a violent French fascist-leaning and anti-
communist group. Loreal hired several members of group as executives after world war
II.
In 1920,the small company employed only three chemist . by 1950, the research teams
were 100 strong ; that number reached 1000 by 1984 and is nearly 2000 today. Loreal got
its start in the hair-color business , but the company soon branched out into other
cleansing and beauty products. Loreal now markets over 500 brands and many thousands
of individual products in all sectors of the beauty business ; hair color , permanents ,
styling aids ,body and skin care ,cleansers and fragrances. They are found in all
distribution channels, from hair-salons and perfumeries to hyper –and supermarkets,
health/beauty outlets, pharmacies and direct mail.
1400 new formulations have been registered in the last three years.
In 1987 loreal and 3 Suisses founded “le club des createurs de beaute”. Specializing in
mail order sales of cosmetic products.
Following loreals purchase of THE BODY SHOP, who previously were against animal
testing, The Body Shop founder Dame Anita Roddick was forced to defend herself
against allegations of abandoning her principles over loreal ‘s track record on animal
testing. As a result, calls were made for shoppers to boycott The Body Shop.
RESEARCH METHODOLOGY:
RESEARCH DESIGN
A Research Design is the framework or plan for a study which is used as a guide in
collecting and analyzing the data collected. It is the blue print that is followed in
completing the study. The basic objective of research cannot be attained without a proper
research design. It specifies the methods and procedures for acquiring the information
needed to conduct the research effectively. It is the overall operational pattern of the
project that stipulates what information needs to be collected, from which sources and by
what methods.
3. Collection of data.
The data is like heart of all types of research. This collection of data depends
upon the purpose for which the data is required .it is considered to be very important
steps as it is the basis of foundation of investigation.
a) Primary data:-
The methods which are adopted for collecting primary data for the
purpose of this project report are as follows:-
b) Secondary data:-
Company Profile:
The L’Oreal Group is the world's largest cosmetics and beauty company. With its
registered office in Paris and head office in the Paris suburb of Cliché, Haunts-de-Seine,
France, it has developed activities in the field of cosmetics. Concentrating on hair color,
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.
L’Oreal is a listed company, but the founder's daughter Lillian Bettencourt and the Swiss
food company Nestlé each control over a quarter of the shares and voting rights.
History:
In 1907, Eugene Schuler, a young French chemist, developed a hair dye formula
called Aureole. Schuler formulated and manufactured his own products, which
he then sold to Parisian hairdressers.
In 1920, the small company employed three chemists. By 1950, the research teams were
100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today.
L’Oreal got its start in the hair-color business, but the company soon branched out into
other cleansing and beauty products. L’Oreal currently markets over 500 brands and
many thousands of individual products in all sectors of the beauty business: hair color,
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.
L’Oreal has five worldwide research and development centers: two in France: Almay and
Coevally; one in the U.S.: Clark, New Jersey; one in Japan: Kawasaki, Kanagawa
Prefecture; and in 2005, one was established in Shanghai, China. A future facility in the
US will be in Berkeley Heights, New Jersey.
From 1988 to 1989, L’Oreal controlled the film company Para vision, whose properties
included the Filiations and De Laureates libraries. Studio Canal acquired the Para vision
properties in 1994.
On 17 March 2006, L’Oreal purchased cosmetics company The Body Shop for £652
million.
The company has recently faced discrimination lawsuits in France related to the hiring of
spokes models and Institutional racism. In the UK, L’Oreal has faced widespread
condemnation from OFCOM regarding truth in their advertising and marketing
campaigns concerning the product performance of one of their mascara brands.
L’Oreal’s famous 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’Oreal philosophy and lifestyle and provide more consumer
satisfaction with L’Oreal products. L’Oreal also owns a Hair and Body products line for
kids called L’Oreal Kids, the slogan for which is "Because we're worth it too".
Protest group Nature watch states that L’Oreal continues to test new ingredients on
animals. The company states that no animal testing for finished products has taken place
since 1989 and that L'Oreal has invested significantly in alternative methods for chemical
safety testing, though they implicitly acknowledge that they continue to perform animal
testing of ingredients.
Following L’Oreal’s purchase of The Body Shop, who continue to be against animal
testing, The Body Shop founder Dame Anita Riddick was forced to defend herself against
allegations of abandoning her principles over L’Oreal’s track record on animal testing.
She declared that her belief in the power of cosmetics to enhance female beauty was
greater than any concern over animal testing. As a result, calls were made for shoppers to
boycott The Body Shop.
In 1987, L’Oreal and 3 Suisse’s founded Le Club des Creatures de Beauty specializing in
mail order sales of cosmetic products.
February 2011: L'Oreal will has the largest factory in the Jababeka Industrial Park,
Cikarang, Indonesia with total investment of US$50 million and it will be ready in
October 2011. 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.
Business
Corporate governance
Board of directors
Current members of the board of directors of L’Oreal are: Jean-Paul Argon, Francisco
Basco, Werner Bauer, Liliane Bettencourt, Françoise Bettencourt Meyers, Peter Brabeck-
Letmathe, Charles-Henri Filippi, Xavier Fontenot, Bernard Kasriel, Marc Latherier, Jean-
Pierre Meyers, Lindsay Owen-Jones, Franck Rebound, Annette Roux and Louis
Schweitzer.
Management committee
Stockholders
In 2003, L’Oréal announced its 19th consecutive year of double-digit growth. Its
consolidated sales was €14.029 bn and net profit was €1.653 bn. 96.7% of sales derived
from cosmetic activities and 2.5% from dermatological activities. L’Oréal has operations
in over 130 countries, employing 50,500 people, 24% of which work in France. 3.3% of
consolidated sales is invested in research and development, which accounts for 2,900 of
its employees. In 2003, it applied for 515 patents. It operates 42 manufacturing plants
throughout the world, which employ 14,000 people.
In 2007, L’Oreal was ranked 353 in the Fortune Global 500. The company had earned
$2,585 million on sales of $19,811 million. There were 60,850 employees.
L’Oreal holds 10.41% of the shares of Sanofi-Aventis, the world's number 3 and Europe's
number 1 pharmaceutical company. The Laboratoires Innéov is a joint venture in
nutritional cosmetics between L’Oréal and Nestlé; they draw on L’Oréal's knowledge in
the fields of nutrition and food safety. Galderma is another joint venture in dermatology
between L'Oréal and Nestlé.
In 2008, L’Oreal was named Europe's top business employer by The European Student
Barometer,a survey conducted by Trendence that covers 20 European countries and
incorporates the responses of over 91,000 students.
The L’Oreal-UNESCO Awards for Women in Science was established to improve the
position of women in science by recognizing outstanding women researchers who have
contributed to scientific progress.
The awards are a result of a partnership between the French cosmetics company L’Oreal
and the United Nations Educational, Scientific and Cultural Organization (UNESCO) and
carry a grant of $100,000 USD for each laureate.
L’Oreal organizes every year the L’Oreal Brand storm, an acknowledged business game
for students in 43 countries. The game is related to marketing and has a first prize of
$10,000, a second prize of $5,000 and a third prize of $2500.
On August 11, 2005, the Supreme Court of California ruled that former L'Oréal sales
manager Elyse Yanowitz had adequately pleaded a cause of action for retaliatory
termination under the California Fair Employment and Housing Act, and remanded the
case for trial.[13] The case arose out of a 1997 incident in which Jack Wiswall, then the
general manager for designer fragrances, allegedly told Yanowitz to fire a dark-skinned
sales associate despite the associate's good performance. When Yanowitz refused,
Wiswall pointed to a "sexy" blonde-haired woman and said, "God damn it, get me one
that looks like that." Wiswall retired as president of the luxury products division of
L'Oréal USA at the end of 2006.
In May 2007, L'Oréal was one of several cosmetic manufacturers ordered by the
Therapeutic Goods Administration in Australia to withdraw advertising regarding the
wrinkle removal capabilities of their products.
In July 2007, the Garnier division and an external employment agency were fined
€30,000 for recruitment practices that intentionally excluded non-white women from
promoting its shampoo, "Fructis Style" L’Oreal is reported as saying the decision was
"incomprehensible", and would challenge the measure in court.
In July 2007, the British Advertising Standards Authority attacked L'Oréal for a
television advert on its “Telescopic” mascara, featuring Penélope Cruz, stating "it will
make your eyelashes 60% longer." In fact, it only made the lashes look 60% bigger, by
separating and thickening at the roots and by thickening the tips of the lashes. They also
failed to state that the model was wearing false eyelashes.
Brands
Brands are generally categorized by their targeted markets, such as the mass,
professional, luxury, and active cosmetics markets. Garnier - L'Oreal's product, reached
the top 100 brands of The Brand Trust Report published by Trust Research Advisory in
India. Garnier was ranked in the 61st position in the list of Most Trusted brands of India.
Head office
L'Oréal Group has its head office in the Centre Eugène Schueller in Clichy, Hauts-de-
Seine, near Paris.[18] The building, constructed in the 1970s from brick and steel, replaced
the former Monsavon factory, and employees moved into the facility in 1978. 1,400
employees work in the building. The building is often referred to as the "Beauty Factory"
by the public. In 2005 Nils Klawitter of Der Spiegel said "the building, with its brown
glazed façade of windows, is every bit as ugly as its neighborhood." Klawitter added that
the facility "gives the impression of a high-security zone" due to the CCTV cameras and
security equipment. The world's largest hair salon is located inside the head office
building. As of 2005, 90 hairdressers served 300 women, including retirees, students, and
unemployed people, per day; the customers are used as test subjects for new hair colours.
L'Oréal USA has its headquarters in New York City, its New Jersey headquarters is in
Berkeley Heights.
Centre Eugene Schuler, L’Oreal head office, in Cliché, France
2. KERASTASE PARIS.
3. MATRIX.
5. MIZANI.
6. LOREAL PARIS.
7. GARNIER.
9. SOFTSHEEN.CARSON.
11. BIOTHERM.
16. CACHAREL.
19. VIKTOR&ROLF.
MOTTO:-
VISION:-
2007 has been a year of progress on three objectives they set to ensure that
loreal is among the most exemplary companies of the 21st century.
The first priority is economic success, shared by all the employees,
and to which they devote their talents, energy and commitment.
Progress:-
• They were rated as one of the 100 most sustainable companies in the
world by innovest and corporate knights in January 2008.
• They got a step closer to eliminating animal testing with the approval
by the EU of the skin irritation test on the Episkin model, and by the
creation of a complete reconstructed living skin model (real skin).
• Working together with the suppliers, the company assessed 10% of the
raw material using their raw material sustainability assessment
framework.
• They set up natural and organic center of excellence to develop
products, and integrated six raw materials resulting from fair trade into
the portfolio.
Targets:-
In 2008, the company planed to continue with this progress, with targets
including:
• Sourcing all papers and board used in packaging from sustainably managed
forests, ideally FSC-certified.
Ethics:-
• Incorporating sustainability principles into the business practices at all levels, the
supply chain and raw material.
Monitoring ethics:-
Economic affairs :-
A growing market:
2008 was also a strong year for external growth. After successfully integrating THE
BODY SHOP, they started up the DIESEL fragrance business, and began to globalize
SANOFLORE, there organic cosmetics brands. The world cosmetics market grew by
+5% last year. Their share of this market rose substantially to 15.3%.significiant gains
were made on all continents, particularly in emerging countries(such as Asia, Latin
America and Eastern Europe), which became for the first time the largest market , on a
par with Western Europe. Thanks to the diversified catalogue centers, they are perfectly
placed to take advantage of these exceptional growth prospects.
Supplier relations:-
Internal communication:-
L’Oreal believes that they should help their suppliers and their own supply
chain by providing tools to help implement their labour standards. In 2007, they held
workshops with NGOs, other key stakeholders and loreal departments to build a new type
of code of conduct. This will set out their main requirements in simple terms, and also
provides tools for self-training and case studies of best practice and failures. The final
release is scheduled for October 2009.
The objectives of the company:-
RAW MATERIALS
PACKAGING
INDUSTREAL EQUIPMENT
INDIRECT PURCHASING
PROMOTIONAL ITEMS
MANUFACTURIN
G SALES
LOREAL FACTORIES STORES:-
(40):- DISTRIBUTION
PURCHASING-
SUPPLY
SUPPLIERS:-
RAW MATERIALS
PACKAGING
INDUSTREAL EQUIPMENT
INDIRECT PURCHASING
PROMOTIONAL ITEMS
MANUFACTURIN
G SALES
LOREAL FACTORIES STORES:-
(40):- DISTRIBUTION
SUPERMARKETS
94% OF THE FINESHED LOREAL WAREHOUSE
GOODS PERFUME SHOPS
(65)
DEPARTMENT STORES
SUBCONTRACTORS:-
ETC
6% OF THE FINESHED
GOODS
LITERATURE
REVIEW
WHAT IS LOREAL?
L’Oreal is the global leader in cosmetics, with 25 global brands. It has five key areas
of expertise- hair care, hair colourants, skincare, make-up and fragrances. This company
has over 63,358 employees working currently. And it sells its products around in 130
countries all over the world. Its consolidated sales are recorded in over 17,063 in million
euros.
The company manufacture well above 4.7 billion units annually. It also
has investments above 560 million euros in R&D investments
DATA PRESENTATION
AND
ANALYSIS
DATA ANALYSIS & INTERPRETATION
Make-up
45
40
35
30
25
20
15
10
5
0
at Parties Always when I want to Outside home
40% says- At parties, 20% says- Always, 30% says- When I want to and 10%
says- Outside home.
4. How following face foundation have you used mostly?
a) Lakme
b) L’Oreal
c) Avon
d) Others
Facefoundation
45
40
35
30
25
20 Loreal
15
10
5
0
lakme loreal avon others
25% says- Lakme, 40% says- L’Oreal, 15% says- Avon and 20% says-
Others.
b) L’Oreal
c) Avon
d) Others
Favoritefoundation
45
40
35
30
25
20 Loreal
15
10
5
0
lakme loreal avon others
25% says- Lakme, 40% says- L’Oreal, 25% says- Avon and 10% says-
Others.
6. What is your skin type?
a) Rough
b) Dry
c) Smooth
d) Oily
e) Spotted
15% has Rough, 25% has Dry, 30% has Smooth, 20% has Oily and 10% has
spotted skin type.
7. How often do you use cream including night creams?
a) Once a day
b) Twice a day
c) Twice in a week
UsingCream
45
40
35
30
25
20
15
10
5
0
once a day twice a day twice in a week three times in a week
25% says- Once in a day, 40% says- Twice in a day, 15% says- Twice in a
week and 20% says- Three times in a week.
a) Avon
b) Lakme
c) Fair n lovely
d) L’Oreal
e) Others
UsingL'Oreal
35
30
25
20
15 Loreal
10
0
avon lakme fair n lovely Loreal Others
10% says- Avon, 15% says- Lakme, 25% says- Fair n lovely, 30% says-
L’Oreal and 20% say- Others.
a) Lakme
b) Avon
c) Fair n lovely
d) L’Oreal
e) Others
MoreEffective
40
35
30
25
20
Loreal
15
10
0
lakme avon fair n lovely Loreal Others
15% says- Lakme, 10% says- Avon, 25% says- Fair n lovely, 35% says-
L’Oreal and 15% say- Others.
10. Number of customers satisfies with L’Oreal Product in comparison with other
company’s product?
a) Lakme
b) Avon
c) L’Oreal
d)VLCC
e) Others
15% says- Lakme, 10% says- Avon, 40% says- L’Oreal, 25% says- VLCC
and 10% say- Others.
11. In dealing with make-up, will you take chance with your skin for experimenting
the products of L’Oreal Paris?
a) Agree
b) Agree a little
d) Disagree a little
e) Disagree strongly
35% says- Agree, 30% says- Agree a little, 20% says- Neither agree nor
disagree, 10% says- Disagree a little and 5% says- Disagree strongly.
FINDINGS
FINDINGS:
On the analysis and interpretation of research conducted. It was found that certain
findings are very critical and are directly or indirectly affecting the L’Oreal Paris
products.
• Consumers prefer the L’Oreal products because it provides good quality, good
results, good services, etc and it all fulfills their needs.
CONCLUSION
Conclusion:
LIMITATION:
L’Oreal Paris is involved in doing business for various product categories but in
this it only focuses on cosmetic products, which have to be considered.
The region covered for analyzing was just the overview of the result which is not
enough for measuring the accurate data.
RECOMMENDATION
RECOMMENDATION:
• The supply must be properly fulfilled so the need of the customer satisfies.
• Target selling for the dealer / agent can increase the sales ofcompany.
• The company must concern to the satisfaction of customer demand.
• The company and dealer should develop its marketing information system.
up to date information of competitor's policy, price and product, target market, so
the company can know its strengths and weaknesses.
• Brand preference studies reveal that comparatively there is more preference for
L’Oreal among consumers so in order to attract and maintain his consumers.
Advertising programs should be intensified.
• Perception of the consumer is changing rapidly. They seek new benefits and
values in their preferred brand. Moreover, consumer likes to have brand at low
rate. So L’Oreal Paris should insert it so as to meet the changing preference of the
consumer.
• L’Oreal Paris is the market leader in make-up products. Most of the consumers
are brand loyal. They should be treated as intangible assets. Loreal Paris should
ever strive to satisfy them.
A) Web Sites:
1. www.lorealparis.com
2. www.google.com
B) News-paper:
1. Times of India
C) Book:
1. Research Methodology: C.R. Kothari
ANNEXURE
QUESTIONNAIRE
a) Lakme
b) L’Oreal
c) Avon
d) Others
a) Lakme
b) L’Oreal
c) Avon
d) Others
a) Rough
b) Dry
c) Smooth
d) Oily
e) Spotted
a) Once a day
b) Twice a day
c) Twice in a week
a) Avon
b) Lakme
c) Fair n lovely
d) L’Oreal
e) Others
a) Lakme
b) Avon
c) Fair n lovely
d) L’Oreal
e) Others
10. Number of customers satisfies with L’Oreal Product in comparison with
other company’s product?
a) Lakme
b) Avon
c) L’Oreal
d) VLCC
e) Others
11. In dealing with make-up, will you take chance with your skin for
experimenting the products of L’Oreal Paris?
a) Agree
b) Agree a little
d) Disagree a little
e) Disagree strongly
NAME…………………………………..…