Lastly,  technology  being  one  of  the  most  impeccable  factors  in  today’s  marketing  world,  L’Oreal  group  should  make  use  of  the  most  of  it. All  they  need  to  do  is  to  create  brands  scientifically  designed  for  Asian  skin  and  hair,  as  they  did  it  for  the  African  products. L’Oreal  finds  itself  in  the  situation  of  the  most  prosperous  hallmark  as  it  serves  as  the  basis  for  identifying  opportunities  in  order  to  satisfy  the  unaccomplished  customer  needs  and  requirements. These  are  the  most  important  assets  of  the  company  as  they  are  individual  talents  of  their  teams. Previously,  they  had  flowed  from  West  to  East,  with  much  of  Europe  and  Asia  thereby,  embracing  westernized  brands. 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. Being  a  world-level  competitor,  L’Oreal  possesses  different  strategy  across  countries  due  to  the  disparity  in  ethnicities. This  is  for  the  only  reason  that  L’Oreal  builds  long-term  relationships  thereby,  bringing  in  profits  instead  on  relying  over  one-time  sales (Newell,  2003). [Official  Website]  13  December,  2008  ,  2007. Case  Study  on  Loreal. L’Oreal  [Official  Website],  13  December  2008. In 2007,  the  Group  attained  Beauty Alliance, PureOlogy  Research as well as Maly’s West, whereas, in the year  2008, the Group acquired Canan. Avec 38%* de ses investissements média consacrés au digital, L’Oréal en a fait un axe majeur de sa stratégie de communication et marketing. The marketing at  L’Oreal  is  a  unique  combination of intelligence  as  well  as  emotion,  reasoning  and  emotion, as well as details and visions. L’Oreal has made cosmetics the focus of all its energy and know-how for nearly a century. The  company  has  also  announced a cost-cutting  programme. E-commerce websites have played a pivotal role in the distribution as through this channel company has witnessed sales growth of 34% in the year 2017 vis-a-vis 2016. The profit margin of  the  company  is  comparatively  low  than  that  of  the  other  smaller  rivals. L’esprit L’Oréal III. L’Oréal group has been ranked 133nd in the Forbes list of Top multinational performers and 379th in the Fortune 500 magazine list. Annual Report. In  order  to  solve  the  problems  of  supply  chain  in  areas  such  as  Moscow,  there  should  be  introduced  emergency  stockpiles  on  hand  in  area  headquarters,  therefore,  in  the  case  of  an  emergency  order,  the  turn-over  time  will  decrement  and  lesser  sales  will  by  lost. L’Oreal  has  been  on  a  spending  extravaganza  in  the  present  years  in  order  to  expand  its  ethical  credentials,  explore  alternative  distribution  channels  along  with  lessening  its  reliance  on  other  business  battle-fields. . These  divisions  and  sub-divisions  assure  the  quality  which  the  L’Oreal  Group  presents  to  its  customers. Si le groupe L’Oréal, avec ses 77 400 collaborateur et son chiffre d’affaires de 23 milliards d’euros, est aujourd’hui le leader mondial sur le marché des cosmétiques, la marque est partie de rien mais a tout de même connu un succès fulgurant. It  is  not  about  just  responding  to  the  consumer’s  needs. L’Oreal international is a group of companies with its branches and subsidiary companies scattered across the globe. The Company has been taking several strategies such as upskilling its team, increasing tech e-commerce visibility, partnering with start-ups such as Station F, Partech Ventures, Founders factory to be ahead of its peers. They market 18 brands and are divided into four categories - consumer products, professional products, luxury products, active cosmetics. refer  to  the  message  which  the  L’Oreal  group  seeks  to  convey  to  its  customers  in  order  to  avail  the  maximum  of  benefits  of  its  products  and  services. Moreover,  it  focuses  on  a  managerial  culture  which  fosters  the  inclusion  of  all  employees  and  capitalizes  team-diversity. The primary strategic global marketing challenges for L’Oreal are: Advertising costs – $5 Billion+ (heavily invested and internet); Growth goal of 2 billion customers by 2020 and increase share from 30-50% from emerging markets; L'Oreal's marketing approach and challenge is to continue to Online  Career  Day. Lastly,  although,  L’Oreal  is  one  of  the  most  successful  brand  across  the  globe,  there  is  always  a  threat  for  new  entry. Piercy  N.  Market  Led  Strategic  Change. Household  &  Personal  Products  Industry,  Retail  Industry,  CBS  Interactive,  2002. This  Group  has  established  multitudinous  partnerships  in  France,  USA,  Latin  America  etc,  and  agencies  involved  in  diversity. Secondly, the Luxury Products Division  includes  the  prestigious  international  brands  meticulously  distributed  through  fragrances,  department  stores  and  duty  free  shops. The Company has the extensive brand portfolio like consumer products: Loreal Paris, Garnier, Maybelline, NYX, Nicely, Dark & Lovely, Essie, & MG.L’Oréal LUXE: Lancome, Yves Saint Laurent, Giorgio Armani, Kiehl’s, Urban decay, Biotherm, it cosmetics, Ralph Lauren, Diesel, etc. Wharton. L’Oreal  reflects  in  its  teams  and  at  every  level,  the  diversified  nature  of  its  clients,  and  promotes  the  access  of  women  to  high-responsibility  position,  thereby,  accumulating  skills  and  capitalization  on  the  experience  of  its  employees. L'Oréal press releases, publications, médias and press contacts. As  stated  above,  the  mission  of  L’Oreal  Group  aspires  to  bring  to  reality  the  urge  for  men  and  women  to  look  beautiful  and  aesthetic  with  time. Decision  News  Media,  01-Mar-2006,   2006. Hamel,  G.  Leading  the  revolution:  how  to  thrive  in  turbulent  times  by  making  innovation  a  way  of  life. The best part about this firm is that 100%  of its factories are ISO 14001-certified and 100% of L’Oreal’s industrial sites are audited with  standard SA 8000 (Company  Overview, 2008). How can that be offensive and even if it is non-whites have to get over it.! Moreover,  they  should  reconsider  their  purchase of  the brand Nivea, as this potential takeover risk  seems  to  prevail  over  any  advantage,  they  should  revamp  the current  mid-market  brands  so  as  to  enhance  meeting  the  demands  of  its  consumers (Trenholm, 2005). L’Oreal has a portfolio endowed with international standard of brands covering a wide range of products while satisfying the needsof every customer present in any part of the world. Moreover, the  L’Oreal Group  is  the  established  activity  in  the  arena  of cosmetology  as  well  as  in  the  dermatological  and  pharmaceutical  fields  so  as to put more consideration in  their  meticulous  activities. Wright  Reports. However,  L’Oreal  has  maintained  the  quality  of  its  products  which  force  the  buyer  to  consume  its  products. However,  it  is  quite  impossible  in  today’s  scenario  for  any  other  company  to  take  its  place  in  the  market,  but  it  does  not  mean  that  L’Oreal  can  rest. Marketing has a key role to plan in ensuring the success of any product. In  addition  to  the  weaknesses, L’Oreal’s profit  structure  is  amongst the biggest  weakness. There is an increased demand of the product offered by the company in the Asia-pacific region (12%) sales growth and the brand has further strengthened its makeup & skincare category through product development and product line extension strategies. Its online sales accounted to $2.5 billion in the year 2017. However,  it  has  launched  a  green  body  care  version  of  Plenitude  in  Europe  which  forces  one  to  wonder  that  when  will  the  similar  product  debut  in  the  United  States,  which  is  the  largest  body  care  market  of  the  world  (Article,  2002). It has been distributing its products through the traditional medium like wholesalers, Retailers, Pops & Mom stores, and e-commerce websites. L’Oréal in China: Marketing Strategies for Turning Around Chinese Luxury Cosmetic Brand Yue Sai @inproceedings{Yng2013LOralIC, title={L’Or{\'e}al in China: Marketing Strategies for Turning Around Chinese Luxury Cosmetic Brand Yue Sai}, author={Haiyang Y{\'a}ng and Pierre Chandon}, year={2013} } L'Oréal key facts L'Oréal is … Poster presentation on L’oreal Luxury Cosmetic; It focuses on engaged in the field of Production and Marketing of concentrating on hair colors, skincare, perfumes, and fragrances, … As  observed  by  many  analysts,  L’Oreal  is  much  ahead  of  its  competitors  in  terms  of  profitability  and  growth  rate. Basically, it’s a French-based company and is headquartered in Paris. Amongst  the  Porter’s  Five  forces,  the  third  force  is  the  Buyer  Power. The  company  seems  intent  on  incrementing  its  position. L’Oreal  attempts  to  retain  their  customers  through  brand  loyalty  since,  loyal  customers  are  typically  less  price  sensitive  and  the  presence  of  a  loyal  customer  base  facilitates  the  group  with  valuable  time  to  respond  to  the  competitive  actions. The Chairman and CEO of L’Oreal,  Lindsay Owen-Jones considers zeal and passion as  the  key  to  the  well-acknowledged  attainment  of  the  company (Loreal, 2008). Anand Kharade (Andy!) On the other hand, Dermatology products are manufactured through Galderma which is a joint venture with Nestle SA  whose brands are inclusive of Garnier, Redken, Maybelline, Kerastase, Matrix, PuroOlogy and Softsheen Carson (Company Profile Report, 2008). This  allows  them  to  possess  the  top  of  the  line  products  only  to  their  name  and  as  a  result,  it  would  lead  customers  only  to  them  for  if  they  could  not  find  any  of  the  claimed  cosmetics  in  other  hallmarks. Opportunity  also  originates  from  their  growing  market  which  ranges  from  the  wealthy,  aging,  as  well  as  the  masses  of  the  developed  countries. SWOT analysis – Here is the SWOT analysis of L’Oreal. With  an  extravagant  range  of  products  including  make-up,  perfume,  hair  and  skin  care  products,  which  are  tailored  according  to  the  customer  needs. For targeting differently segmented of customers with its 34 brands in several product categories, it has devised differentiation strategy to target middle, upper middle and upper-income class customers majority of who are working professionals and are those who want to flaunt their personas. Thomson  Reuters,  2003. ADMN 121, November 1, 2005. It  has  been  subjected  to  rivalry  because of  its  industrial  data  which  consists  of  a  large  number  of  firms. In business segment, its customers are the Salons, Beauty parlors, SPAs and recreational outlets who serve the end customers with the flagship products of the brand L’Oréal. Role of Cartoons and Photographs in Telling a... Classroom Design and Child Development in Kindergarten, FedEx Corporation Business Strategy Analysis. The  mission  of  L’Oreal  Group  aspires  to  bring  to  reality  the  urge  for  men  and  women  to  look  beautiful  and  aesthetic  with  time. Bloomberg  Press;  1  edition  (March  1,  2003). The  key  to  marketing  strategy  of  L’Oreal  is  the  real  secret  weapon  of  the  group,  which  are  its  employees. Its  success  story  claims  that,  even  in  its  recessions,  has  given  tough  competition  to  its  competitors. Having  the  best  talent  in  its  team,  it  is  natural  and  obvious  for  the  group  to  become  the  most  successful  cosmetic  brand  across  the  globe. L’Oreal  renders  full  concentration  on  its  products  and  possesses  a  significant  cost  which  has  a  power  to  switch  its  suppliers. 1 market. This is also a part of the difficulties  which L’Oreal  comes  across. It  helps  in  efficaciously  conveying  the  target  audience  about  the  behavior  they  want  to  promote. Fifth  Edition,  McGraw  Hill,  2007. Marketing Mix of L'Oréal analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the L'Oréal marketing strategy. The brand has positioned itself as most ethical cosmetics and beauty Care Company focusing on Universalisation i.e respecting the differences in cultures, desires, and aspirations of the internal & external stakeholders. While consumer products, L’Oréal Luxe and Active cosmetics business segments contributed revenue of $14494 million, $10132 million, and $2870 million with a growth rate of 1%, 100.6% and 11,9% corresponding to 2016 respectively. Expansion,  there,  has  become  key  to  L’Oreal’s  long  term  strategy. They  are  already  on  the  correct  pathway  in  Africa  because  of  their  recognition  about  the  enormous  customer  base  in  that  area. However, Customer  Relationship  Management  was  supposed  to  help  businesses  better  comprehend  their  customers,  thereby,  increasing  efficiency. Moreover,  in  order  to  integrate  across  these  key  contact  points,  L’Oreal  delivers  brand  experience  through  a  relevant  and  pertinent  set  of  consumer  brand  which  encounters  at  a  minimum  cost,  but  with  maximal  impact. Segmentation, targeting, and positioning are marketing techniques used by a company to gain the competitive advantage in the market. It competes with companies such as Revlon, Lakme, Proctor & Gamble, and Unilever etc. This  mission  has  always  been  of  prime  significance  in  for  the  company. Stratégie marketing 6. With  rendering  significance  to  Natural,  Organic  as  well  as  Green  Cosmetics,  it  has  shaped  the  global  beauty  market  today,  where  major  players  have  been  enticed  by  the  generous  margins  in  this  well-paid  segment. Use of social media to build marketing plan. In  the  long  term,  there  are  a  number  of  expansion  plans  which  L’Oreal  should  consider. L’Oreal  –  Company  Profile  Snapshot. It  strongly  emphasizes  on  advertisements  with  bringing  in  to  usage  celebrity  spokes-models  and  seeing  the  sights  of  new  media  which  is  inclusive  of  the  internet  and  mobile  phones. European  Shares  Close  Mostly  Lower  After  Weak  U.S.  Data. The  enduring prosperity of  the L’Oreal  group  is  without  if  not  for  the  inventiveness  of  the  concept  of  their  vision  as  a  team. However,  a  couple  of  years  before,  his  plans  to  retire  led  the  Group  to  speculate  on  how  things  may  turn  out  with  his  successor. The  company  acquired  a  surprise  move  in  purchasing  the  ethical  beauty  retailer  The  Body  Shop  in  the  year  2005,  since  when,  it  has  made  supreme  strides  in  order  to  improvise  its  ethical  silhouette,  most  currently  joining  hands  with  an  initiative  towards  minimizing  its  carbon  foot-print. Module Code: MKT1002 Degree Programme: BA Hons Marketing and Management Introduction to L’Oréal. (Case Study, 2005). L’Oreal’s  still  on  top:  while  some  of  its  competitors  restructure  and  reconfigure  their  portfolios  with  major  purchases,  L’Oreal  turns  in  strong  results  year  after  year. With  the  help  of  adapting to  the  culture  of  their  target  market  as  the  main  tool  for  their  advertisement, the  Company  has  introduced L’Oreal  products  within  the  reach  of  the  women  from  diversified  parts of the world. Marketing mix – Here is the Marketing mix of L’Oreal. There are some  disparities  brought  about  in  the  campaign of L’Oreal Products  as  to  what  image  do  they  project sue to their worldwide marketing  strategy. They  have  realized  that  all  they  had  to  focus  upon  was  creating  the  need  so  that  they  would  fulfill  the  demands  (Trenholm,    2005). In this webiste you have provided so many casestudies pertaining to strategy along with international brand. Every  company  confronts  some  critical  issues  as  faced  in  strategic  marketing,  such  as  escalating  customer  demands  driving  the  imperative  for  superior  value,  totally  integrated  marketing  to  deliver customer value,  and  the  managing  processes  such  as  planning  and  budgeting  in  order  to  achieve  efficacious  implementation  (Piercy, 2002). For  example,  the  firm’s  R  &  D  centre  in  China,  entirely  focuses  on  the  development  of  products  explicit  to  the  requirements  of  Asian  skin  and  Hair. A  fair amount of research involved by studying and comparing factors like population  demographics, fashion trends, competitors and political situations of the relevant areas could be introduced. 3.2 Strategy selection and marketing competencies 44 4.1 Industry life cycle 64 4.2 Ways of revitalizing markets 69 4.3 Strategies for declining or stagnant industries 71 4.4 Formulating strategy 74 4.5 SPACE analysis 77 5.1 Market analysis 83 6.1 Forces of competition 104 L’Oreal  believes  in  depending  upon  its  skills  and  organizational  management  rather  than  on  the  field  of  targets. Models,  televisions,  internet,  bill-boards,  etc. Your email address will not be published. L’Oréal’s social media and customer experience management strategy. Marketing 3.0: How L’Oréal is embracing new marketing codes Ellen Hammett De-siloing, in-sourcing, “mutual upskilling”: L’Oréal’s digital chief on … However, Yue Sai’s lacklustre performance was spoiling the grand vision. As  a  result,  the  management  of  products  and  brands  therefore,  is  a  key  factor  in  marketing  success. This Group operates in Cosmetics, The Body Shop and the Dermatology Segment. L’Oreal is famous and very successful because of their global marketing strategies w… The company have invested more than $1000 million in research & developments and have filed 498 patents in the year 2017. In  other  words,  it  has  always  believed  that  there  are  always  immense  opportunities  to  grab  and  make  the  most  of  them. Butterworth  Heinemann,  2002. Thirdly, the Professional Products Division presents  a  specific  hair-care  product  range  for  the  use  of  professional  hair-dressers  and  products sold exclusively  through  hair-salons. For  the  economic  wellness,  it  is  required  for  L’Oreal  to  adapt  all  the  economic  changes  and  transformations  of  all  the  countries  it  operates  in. L’Oreal has expanded its business in 150 countries by offering both men and females a wide range of make-up, fragrances, hair and skin care products. is the most ridiculous thing I have ever heard even though I am a white 75-year-old woman. It  should  keep  up  to  its  socialization  with  world  brands  as  well  as  people  for  the  reason  that  it  would  help  it  in  maintaining  its  brand  value  as  well  as  its  status  in  the  global  market.