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L'Oreal - Cosmetics Analysis

Competitive & POS analysis
by

Rebecca Tan

on 14 October 2013

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Transcript of L'Oreal - Cosmetics Analysis

Cosmetics Analysis
Major Competitors
-The Estée Lauder Companies
-Revlon, Inc.
-Shiseido Company, Limited
-The Proctor and Gamble Company
-Unilever

Major Competitors
L'Oréal POS – Consumer Products
Display has been recognized internationally as the best presentation of L'Oreal Paris globally
Premium-looking
Bright, bold, colorful, & clean presentation
stand out in clustered environments
Inviting to customers
Increase floor space
Effectively communicate to customers
Consistent world-wide
Results:
Floor space was increased by 22% in all outlets over the previous units
sales have increased by 15%

L'Oréal POS - Luxe
Bright, colorful, & organized
Non-cluttered to create an “exclusive” selling floor for shoppers
Graphics are consistent worldwide
Associates
Approachable, knowledgeable, well-groomed

- L’oreal is the leading cosmetic beauty company in comparison
to competition in market capacity, revenue growth, revenue, operating margin, & net income.
- GM & EPS fell short to the Estee Lauder company. Need to decrease costs.
Competitive Comparison
The Estée Lauder Companies
Company information
Market capacity: $24.49 billion
Revenue: $10.03 billion
Quarterly growth: 0.02
Profit: $977 million
Beauty Rank: 4
Divisions:
Skin care – 55%
Make-up – 35%
Hair care – 5%
Fragrance – 5%

By Rebecca Tan
ELC Revenue
Company focuses on their most profitable division – Skin Care
Forecast steady growth in skincare & make-up

ELC Marketing
International expansion
M.A.C.
380/529 free-standing stores are abroad
Marketed towards minority women (best match for skin tone)
Retail travel
Channel performed well within Europe, Asia-Pacific, Middle East & Africa, generating double-digit
net sales growth in fiscal 2011.
Launching new brands
Self-competing
Each division having a “product engine” lipstick for M.A.C.
Fragrance is highly marketed
Limits distribution:
High end department stores or free-standing stores
Online

Company Overview
Market capacity: $99.9 billion
Revenue: $29.8 billion
Quarterly growth: 0.10
Profit: $3.71 biliion
Beauty Rank: 2
Divisions:
Consumer Products – 49%
Luxury Products – 25%
Active Products – 7%
The Body Shop – 4%
Dermatology division – 4%
(Sanofi Aventis stake – 10.4%)

L'Oréal Revenue
The hair care division has been the dominant revenue booster
Skin care is predicted to increase from 13.4% in 2012 to 15.4% by 2019
Forecast steady growth in all divisions & overall revenue

L'Oréal Marketing
Focus on US market
Increase digital marketing tactics
Smartphone apps, xbox app, beauty YouTube page, etc.
Move towards a more insight consumer-centric organization vs. product-centric organization
Accelerate innovation
“Next Fund” – fund to encourage innovation
Distribution (multi-channel):
Mass distribution – consumer products division, active brands
Limited distribution – L’oreal Luxe, professional brands, the body shop

eCommerce
Top Ten Digital IQ Ranking: 

1. Estée Lauder (EL)

1. Lancôme (L’OREAL) 

3. Clinique (EL)

3. L’Oréal Paris (L’OREAL)

5. M.A.C Cosmetics (EL) 

6. Aveda (EL)

6. Maybelline New York (L’OREAL
8. Kiehl’s (L’OREAL)

8. L'OCCITANE en Provence
10. Bare Escentuals
10. Benefit 

10. Clarins

Advantages?
Opportunities?
Greater global presence
Wider customer base & distribution
Caters to consumers across all income levels and distribution channels
Vast product range
Focuses on all divisions rather than just one

L'Oréal
L'Oréal
China
Fastest growing global beauty and personal care marketing in the past 10 years
Largest online beauty market in the world
Travel Retail
Estimated to grow by 60% to $44 billion by 2015

POS Analysis
Shu Uemura boutique in Hong Kong

L'Oréal POS - The Body Shop
Natural lighting
Portrays a more natural feel
Colorful displays
Sweet smell/aroma
Small items at POS checkout
Increase impulse purchases

Innovation
Ynivisible & L'Oréal
Ynivisble & L’Oreal Luxe Division in Portugal developed an interactive perfume selection product based on Ynvisible’s printed electrochromic display technology
Engage customers through short quizzes to identify preferences
Help consumers shop for perfume as gifts

Limited only in Portugal

Display in Australia & New Zealand

Opportunities
ePOS & Mobile

Pros:
Cons:
Convenience
Customer in control
Resembles online store
Easier navigation
Scan item
Look up reviews
Prices
Inventory
In store or other stores
Decreases customer inquiries which will give employees more time for other tasks

Loses customer service
Personalized
Face-to-face
Lag time if system fails
Additional training
Decrease in associate jobs

Appendix
See
in attached "Appendix" file
Thank you
for your consideration
Email: tanrebec@gmail.com
Phone: 616.212.6152
Contact Information
Full transcript