History Of L’Oreal• In 1907, Eugène Schueller, a young French chemist,

developed an innovative hair-color formula. He called his improved hair dye Auréole.

• Schueller 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.

• 1970, Acquisition of Biotherm

Contd..

• In 1994,Excellence Crème was launched internationally and rapidly became world leader in hair colorants.

• Winning over India: In 1994, L'Oreal becomes the 1st international cosmetic group to which the Indian government grants the status of wholly-owned subsidiary.

• In 1994 the acquisition of Maybelline, the leader in mass-market make-up in the United States.

.• 1996: Fructis, the green tornado!

• 2000, Acquisition Of Matrix

• 2002, L'Oreal expresses its sense of social responsibility by joining the UN Global Compact.

• 2004,L’oreal for Men-Because they’re worth it too !

• 2006, Diesel in the L'Oreal engine

• 2006,Acquisition Of BODY SHOP

• 2009, Centenary of L'Oreal- Happy Birthday !

Company overview• Mission : At L’ORÉAL, “we believe that everyone aspires to beauty. Our mission is to help men and

women around the world realize that aspiration, and express their individual personalities to the full. This is what gives meaning and value to our business, and to the working lives of our employees. We are proud of our work.”

GROUP PROFILE

- A century of expertise in cosmetics

- € 17.5 billion consolidated sales in 2008

- 23 global brands*

- 130 countries

- 67,662 employees

- 628 patents filed in 2008.

* These brands' annual sales are superior to 50 million euros

Awards and Recognitions• 2001: “world’s most respected companies”: The study also

places the group in 2nd position amongst the most respected companies in the consumer goods sector throughout the world. In the general ranking, L'Oreal came in 31st place amongst the top 50 "most respected companies".

• 2002: 7000 women voted, 7 L'Oreal Group products were selected. L'Oreal was honored by winning seven of the 21 grand prizes awarded.

• 2003:L’oreal supports the global compact• 2004:Universum and Trendence, students in business schools

throughout Europe chose L'Oreal as the ideal company to work for

Contd..• 2005: L'Oreal ranked first in reputation survey• 2006: L'Oreal honored for its commitment against

aids• 2007: L'Oreal receives innovation and consumer

intelligence award in best innovator awards 2007• 2008: L'Oreal ranks first in the list of the world‘s

100 biggest beauty firms.• 2009: L'Oreal received two of the nine Prix

d’Excellence 2009 beauty awards from the international women’s magazine Marie Claire

BRANDS

Consumer Products• Garnier•L'Oreal Paris•Le Club Des Createurs •Maybelline NY•Softsheen.Carson

Professional products• L'Oreal Professionel•Kerastase•Red ken•Matrix•Mizani•Shu Uemura Art of Hair•Keraskin Esthetics

Luxury Products•Lancome•Biotherm•Helena Rubinstein•Kiehl s•Shu Uemura•Giorgio Armani•Ralph Lauren•Cacharel•Viktor & Rolf•Diesel•YSL beaute Active Cosmetics

•Vichy•La Roche-Posay•Inneov•Skin Ceuticals•Sanoflore

Swot Analysis-Internal Analysis

STRENGTHS• Continuous research and

innovation.• Developed activities in

the field of cosmetics, dermatologic-al and pharmaceutical fields.

• L’Oreal’s advertising strategy also plays a major part to its growth.

WEAKNESSES• Decentralized

organizational structure• Profit Margin• Coordination and

Control of activities

External Analysis

OPPORTUNITIES• Growing demand for

beauty products• Greater market share

THREATS• Growing competition• Products are within the

reach of developed countries only.

• Spending habits of the consumers and economic crunch

Branding Strategy

• In 1972, L' Oreal launched the legendary campaign "Because I am worth it,“

• distributing its products through agents and consignments to the US, South America, Russia and the Far East.

• Owen-Jones who had joined L'Oreal in 1969, decided to embody their (the brands') country of origin, turning what many marketing gurus considered a narrowing factor into a marketing virtue.

Brand Extensions

• L'Oreal to enter the kids shampoo in 1998.• The company realized the L'Oreal name, long

associated with women's hair care, would capture instant credibility with moms.

• When L'Oreal first unveiled its L'Oreal Kids shampoo line early 1998, retailers were skeptical.

Advertising and Promotion• L'Oreal had a unique promotion policy for all its brands• A brand, which sold in mass-market outlets.• Advertised and promoted itself in a way similar to brands

sold in department stores.• In late 1990s “external charges", which included L'Oreal's

advertising and promotions expenditure jumped from 37% to 47% of sales.

Competition• Cosmetic majors like Revlon and Avon and Nivea vied for shelf

space.• The giant FMCG companies like Unilever and P&G.• Local competitors like HLL-Lakme in India, Dark and Lovely in

Africa, and the erstwhile Shu Umera in Japan (L'Oreal later acquired this brand).

• L'Oreal India Private Limited is a wholly owned subsidiary of L'Oreal S.A. Headquartered in Paris• L'Oreal India has over 600 employees and has a strong track record with consistent double digit sales growth yearly. • In India, L'Oreal operates through four divisions: - Consumer Products Division - Professional Products Division - Active Cosmetics Division - Luxury Products Division

Products• For Women- Because You’re Worth It !Skin CareHair CareHair ColorCosmetics

• Skin Care• Hair Care• Styling

Because We’re Worth It Too!

• Hair Care :Shampoos of 3 flavors• Very Berry strawberry shampoo• Cheeky cherry shampoo• Tropical Mango shampoo

Brand Ambassadors

• Aishwarya Rai• Sonam Kapoor• Freida Pinto• Evangeline Lilly• Elizabeth Banks• Beyonce Knowles• Pierce Brosnan• Penelope Cruz

You're worth it - if white. L'Oreal guilty of racism

L’oreal Parlours

Conclusion• Above and beyond its financial success, however,

L'Oreal's track record reflects an endless quest:• A quest for innovation,• A quest for excellence • A quest for diversity and a range of cultures• A quest for purpose, a cornerstone of the L'Oreal

approach, combining economic growth, ethics, social and environmental responsibility

• A quest filled with passion, transcending borders in a bid to make the world more beautiful.

Future plans• L'Oreal turns to cheaper products to spur future growth• The Body Shop has drawn up a fresh strategy, including

aggressive discounts and opening of new stores, to tap the market.

• They are focusing on the south market and are planning to open 10 stores in places like Chennai and Hyderabad.

• At present, the company is operating 25 stores in eight Indian cities under a franchise agreement with retail major Future Group, controlled by Kishore Biyani.

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