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L'Oreal: Global Brand, Local Knowledge

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jaylen swint

on 24 November 2015

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Transcript of L'Oreal: Global Brand, Local Knowledge

L'Oreal: Global Brand, Local Knowledge
Growth Expansion
Selling products that culturally connect with consumers
Seperated based on brand's
image and pricing point
Lancome = Department Stores
Target high and low income markets
Market Selection
Ensures each product connects with its consumer, culturally
Chain of multiple products offered globally
Manufacturing plant in India
Each brand has a seperate marketing manager
Competitive Advantage
The global brand was founded in 1907 by the chemist Eugene Schueller
The new CEO Lindsay Owen Jones focused on the five core technologies.( Hair color, hair care, color cosmetics and fragrances.)
She took those five businesses and drove to make them global

This company manages about 23 global brands across 130 countries.
They sell these products across proffesional salons, mass retail brands as well as luxury brands

Strengths & Weaknesses
Opportunities & Threats
Modes of Entry
Porter's Diamond Model
Rate of Expansion
Stages Theory
They believe that launching new innovative products on a regular basis is the key.

They focus heavy on catering to diverse populations.

Since L'Oreal has so much knowledge on other cultures it makes it easy to anticipate and invent future products.
Celebrity Endorsments

They are high in risk.

Reinventing the image without offended other cultures

Lack of control over the brands managment teams.

Use of digital marketing.
More creative ideas as far protmoting the products in commercials.

The L'Oreal Brandstorm competition

Reconstructing the brands so that they have the power to improve their company and reach out to others as well.

The perception of the brands

competitors copying their products and or ideas of marketing stategy.

Different economies and channels.
How well does L'Oreal's competitive advantage travel globally?
Incorporated men into their target market
"Geocosmetics" They studied beauty around the world
Acquisition-Soft Sheen and Carson products
Individual marketing teams
Threats and Sustainability
Competitor's mimicking strategies

Product Adaptation
Research: Schools and Institutions
Aware of economic differences
Future growth potential
Price-Points: Masstige Products
Brand Posititoning

What is the best way for L'Oreal to grow internationally?
Since L'Oreal has done a great job with their research and acqiring brands do you think they would ever expand outside of healthcare products?

L'Oreal places their products into a specific "box" for brand positioning. Do you think if they played outside of the brand's position that it would be beneficial and help them expand?

Would it be better for the company if they used less influential people (celebrities) to help promote the brand?
Eco-Friendly Design
Globally Diverse Products
Scientific Explanation
Joint Venture
L'Oreal has already successfully grown internationally
They show no signs of downfall


Through adaptation, aquisition, research, advertising, brand management


Largest spender
Print to digital

Level 1: Factor Conditions
Level 2: Demand Conditions
Level 3: Related and Supporting Industries
Level 4: Firm Strategy, Structure, and Rivalry
23 Global Brands
Acquires successful local brands, globally
Specific Countries = Specific brands
High investments in marketing and R&D for rapid production and profit
Maybelline net sales grew 93% after acquisition between 1999-2002
Hosting training sessions for hairdressers
Gaining knowledge about a specific global market - then expanding
Expand to culturally simliar locations first
Full transcript