3. The History Of the companyโฆ
โข In 1907, a young French chemist Eugรฉne
Schueller developed an innovative colour
formula;
โข In 1909, he registred his own company;
โข In 1920, the small company employed 3
chemists;
โข In 1912, Eugรฉne Schueller started to
export his products;
โข In 1933, he created and launched Votre
Beautรฉ, a magazine devoted to women;
โข In 1953, LโOrรฉal won an advertising
Oscar.
4. About the industry
๏ The cosmetic industry is a profitable business for most of the manufacturers
of cosmetic products.
๏ The cosmetic industry world wide seems to be continuously developing,
many famous companies sell their cosmetic products online also in
countries in which they do not have representatives.
5. โข L'Oreal on
the road to
greatness
โข Becoming
number one
in the beauty
industry
โข First steps :
the model
takes shape
โข The diversity
of beauty
throughout
the world
2000-present 1909-1956
1957-19831984-2000
HISTORY
6. Operation
โข L'Oreal is the world largest cosmetics and beauty
company. They have over 500 products.
โข This brand concentrates on:
โข Hair color
โข Skin care
โข Sun protection
โข Make up
โข Perfumes
โข Hair care
8. PRODUCT TARGET
โข LโOreal is mainly used for the younger people
like teenagers as most of their products involves
make up which most teenagers like.
โข L'Oreal also targets their products to older
women.
โข Their slogan โbecause weโre worth itโ shows
that the product is a luxury product which
suggests it is could be expensive.
โข L'Oreal's product, reached the top 100 brands of
The Brand Trust Report published by Trust
Research Advisory in India
9. MARKET SHARE OF LโOREAL
Other
brandโs
59%
L'Oreal
41%
Hair colour
20%
Skincare
6.5%
Shampoo
4.6%
11. โข To keep the different brands
in one basket and yet
keeping the differentiation.
CHALLENGE
โข Good brand management
was all about hitting the right
target audience with the right
product.
STRATEGY
Understandings
โข Company was brilliant in identifying the needs, cultures
and aspirations of different kinds of customers in
diversified regions.
12. When it First Entered the Market
โข Gender Segmentation
โข โcombination of low price and
natural ingredients would fit
Indiaโs market,
๏ผ women use plants and herbs as
part of their beauty cultureโ.
๏ผ specifically catered to the women
of India,
๏ผ how it should carve a niche market
for itself in the Menโs sector as
well.
13. โข Income Segmentation: 2 main segments:
๏ผ the poorer masses and the rest
โข marketed its product
โข low in cost to attract the poorer masses, and her efforts in
reducing ingredients to cut price reveals her aim to minimize
costs as much as possible.
๏ผ NOT YET TARGETING middle class or
upper class
โข did not make any distinct segmentation of the richer classes
14. The โLโOreal Makeoverโ
โข Income Segmentation:
โข the quickly rising middle class which was gaining in affluence.
โข fastest growing income class that represented a highly untapped market
potential due to their radically different mindsets from the masses.
โข Age Segmentation:
โข the younger middle class from the more conservative, often older
Indians,
โข showed an increased interest in capturing the market share of the
younger Indians.
15. โข Psychographic Segmentation:
โข LโOreal segmented India into different groups based on their
thinking and behavior from the older
โข more conservative Indians who held conservative values of
thriftiness more strongly and stubbornly,
โข the younger more impressionable generation who had
developed a very different and westernized view on spending
and culture
16. TARGETING
๏ผ young affluent middle class females, especially those with graying
hair
โข maximum profits as it not only possessed the purchasing
power that masses lacked, but more critically a modernized
mentality
โข these people more receptive to purchasing LโOrealsโ more
luxurious and expensive products..
๏ผ LโOreal also target women that sought benefits from using its
products
โข no product that solved womenโs hair greying problems
โข Middle aged and working women became the main
target of the company.
17. ๏ผ YOUNG MIDDLE CLASS
โข who did not mind using products that damaged their
hair as long as they were cheap due to monetary
problems,
โข these women were more educated and concerned for
the need to have healthy beautiful hair, as well as
more equipped with the purchasing power to do so
18. ๏ผ LOWER INCOME MASSES
โข introduced new products like โColour Naturalsโ
which be used multiple times and cost only $3.10,
translating into increased value for the masses.
โข LโOrealโs strategy targeted the more affluent that
were more educated and had more disposable income
to splurge on luxury items if they justified their price.
19. Brand
Positioning
โข Company has a strong and long-term brand positioning specially
within the minds of middle age women and teenage girls.
20. POSTITIONING
๏ผ LโOreal hired Ms World in an
advertisement
โข LโOreal India launched the program
โBeautiful Beginningsโ on 7th July
2009, an initiative which aimed to
train at least 200 unprivileged school
drop-out girls every year to make them
employable. It was even inaugurated
by Bollywood actress Aishwarya Rai ,
21. ๏ผ LโOreal has historically carried a premium image and price
tag
๏ผ Viral marketing
๏ผ dual positioning strategy in India
โข LโOreal reduced its hair care range prices by 25% in
2010 after it began local production and resorted to another
4% price cut this year
22. DIFFERENTIATION
๏ผ Home brands aimed to garner loyalty of existing users
โข repeated use by generations of Indians would bring about feelings of
trust and dependability
โข attracted thrifty housewives who wanted the cheapest products
๏ผ DIFFERENTITATED : by promising better quality products to the
rising middle class
โข When LโOreal first entered India :beauty education was absent,
training seemed redundant and hairdressers were well satisfied with
cheap local domestic brands
โข invested heavily in education and training to boost their status in the
community.
23. Conclusion
โข The LโOreal Group is the worldโs largest cosmetics &
beauty company. In our opinion, we think that LโOreal has
successfully created a brand identity as the adverts that
present the products make them look more expensive.