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L'OREAL marketing presentation

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Chiranjeev Shah

on 22 February 2015

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Transcript of L'OREAL marketing presentation

L'ORÉAL
Because you're worth it
History
1909
:
founded by Eugène Schueller, a young French chemist, developing a hair dye formula called
Auréale
. Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers.

1919
:
Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux (Safe Hair Dye Company of France). The guiding principles of the company, which eventually became
L’Oréal
, were research and innovation in the field of beauty started.

1920:
the company employed three chemists. By
1950
, the teams were
100
strong; that number reached
1,000
by
1984
and is nearly
2,000 today
.

6
worldwide research and development centres:
2 in France
1 in the U.S.: Clark,
1 in Japan
1 in China
1 in India


I - Introduction to the L'Oréal Company

1.1 Company Profile
1.2 Company Mission
1.3 Company Objectives

11 - The Global Cosmetics Market

11.1 Analysis of the Market Care
11.2 Macroenvironmental analysis PESTEL

111 - L'Oréal in India: a challenge to overcome

111.1 SWOT analysis

Conclusion
You
said
L'Oréal?
MISSION
What about now?
of
L'ORÉAL
As a leader of the personal care market, the
mission
of L'ORÉAL is to help men and women around the world to reach
"
beauty
"
offering all women and men worldwide the best of cosmetics
innovation
in terms of
quality
,
efficancy
and
safety.
OJECTIVES
OF
L'ORÉAL
According to the company, for the coming years is to win over another one billion consumers around the world by creating the cosmetic products that meet the infinite diversity of their beauty needs and desires.
for the next decade
SUMMARY
BREAKDOWN OF SHARE OWNERSHIP AT DECEMBER 31, 2013
130
molecules created in 40 years
R&D key factor of success of L'Oréal
L'Oréal
Profile
of
The Global Cosmetics Market

Cosmetics
Market
Analysis
5 forces
of
PORTER
PEST
Analysis
L'Oréal
in
India.
SWOT
Analysis
4P's
Analysis
REBALANCING ITS GEOGRAPHICAL FOOTPRINT
The cosmetics market is
segmented in various products
, we can define
Beauty care, body and face creams
Skin care, soaps
Hair care
Make-up
Fragrances

Because of the huge competition, cosmetics market can also be
segmented regarding types of brands
Luxury brands
Mass market brands
Dermocosmetics brands
Natural products, specialized brands un creation of organic & natural products
Mencare




Strong distribution network required
High capital requirements
Advanced technologies
Geographic factors and patents
Entry barriers
THREATS OF NEW COMPETITORS
Substitute products are inferior
Differentiation has a significant impact
However, for the chinese market, consumers are looking for healthier substitutes to seemingly unhealthy products such as colorants and colour cosmetics

THREATS OF SUBSTITUTES
Large number of substitute inputs
Low cost of switching suppliers
High competition among suppliers
Volume is critical to suppliers

BARGAINING
POWER OF SUPPLIERS
Large number of customers
Product is important for customers
BARGAINING POWER
OF CUSTOMERS
Fast industry growth rate and large industry size, positive points for the company to work in a growing market

INTENSITY OF EXISTING RIVALRY


Challenge is that L’Oréal should conform to all the different government leadership styles in various countries its operates within.

L’Oréal is restricted in their use of certain kinds of chemicals, for example, the EU laws affect L’Oréal such as Phthalates which is carcinogenic. L’Oréal is obligated to produce safe products that do not contain any harmful substances .

All the marketing activities are restricted by the Consumer Goods Safety Ordinance

L’Oréal has to follow the rules set by Advertising Standards Authority (for example, advertisements cannot be misleading that over – exaggerating the functions of a product


Political and legal forces
As same as political one, L’Oréal should adapt to all the different economic environments and problems in all countries it operates in

Economic crisis are theats for the company, and the global economic downturn is a great challenge for its development


Economic environment analysis

Social analysis

The trend of cosmetics and make up and the necessary side of skincare permit to L’Oréal to develop itself all over the world

Cosmetics market is in constant evolution

Furthemore, there is a trend that the age of consumer begin using make-up is also decreasing. It means that more and more young people start to use make-up, so the company has to target younger people than before.

The development of Internet has an important impact on companies like L’Oréal, indeed it helps them to running and improving business on both operating and promoting. Providing sufficient product’s information and various promotions online assist L’Oréal to increase sales and increase their presences in the market

Furthemore, the ingredients of make-up products are more natural and safety due to the advanced technology. More substitute and useful ingredients are discovered and used in make-up products based on the developing Research and Development in cosmetic companies

Also the cost of production process can be reduced by introducing new equipment. Those discoveries of natural and substitute ingredients, and cost reduction drive the selling price down and create more value to customer



Technological analysis

STRENGHTS
Deeply rooted in China = established since 1977 in China with 17% of market share

Global brand stategy = Focus in mark market brands (Maybelline, L'Oréal Paris)

Strong portfolio (Ex: YUE-SAI, No 1 in men skincare market with L'Oréal Men Expert...)

Market leading position = no 2 in China

Quicker product development = synergy effect

Diversified geographic presence

WEAKNESSES
OPPORTUNITIES
Potential of developing markets = 10 % of growth in China in 2013

Lack of lucidity of the segmentation = Ex: Garnier
Demand for mass-market products : nautral products (TCM with BodyShop)
Increasing online searching
Increasing the usage of make-up products
THREATS
Clashing ideology

Intense competition : Procter & Gamble, Univlever very well established
in the haircare

Economy unstable
Cultural differences = Ex: standards beauty differences
Minimal porducts differentiation between cosmetics companies
PRODUCTS
Product Segments in China
Luxury : Lancôme, SHU UEMURA
Semi selective : l'Oréal Paris
Mass market : Maybelline, Yue Sai
Economic range : Mininurse

Luxury products : high prices
Semi selective and Mass market : middle prices
Economic range : low prices

PRICES
PROMOTION
Forms of advertisement
TV commercials
stalls in public places
conventions
attractive models, achievable looks, desirable outcome
TV actresses, well known models like Ashwariya Rai Bachchan.
Types of promotions
free products, samples, sale/low prices in storemakeover
PLACE
Located near greater business opportunit malls, places of greater amount of public, widely known shopping areas

Luxury brands are sold only in the big shopping center and the official website and the special e-commerce site in cosmetics

Instead, L'Oréal Paris is a public brand of large distribution in the supermarket who focuses on the public
L'Oreal Advertisement
TO SUM UP
THANK YOU ALL FOR YOUR ATTENTION

BECAUSE YOU'RE WORTH IT!
Full transcript