1. L’Oréal
Background history
The L'Oréal Group is the world's
largest cosmetics and Beauty Company. With its registered office
in Paris and head office in the Paris suburb of Clichy, Hauts-de-
Seine, France, it has developed activities in the field of cosmetics.
Concentrating on hair color, skin care, sun protection, make-
up, perfumes and hair care, the company is active in
the dermatological, tissue engineering and pharmaceutical fields and is
the top nanotechnology patent-holder in the United States.
Eugene Schueller a young French chemist developed an innovative hair
color formula, Aureole. He manufactured his own products and sold
them to Parisian hairdressers. The company was registered in 1909. The
guiding principle from the beginning was research and innovation in the
interest of beauty.
By, 1950 had acquired 100 products and today they are 2000 product
strong. From the beginning Eugene was ambitious about his company
and by 1912 the brands were found in Holland, Austria and Italy. In a
few years the company was distributed US, South America, Russia and
Far East. Today, L’Oréal is present worldwide through its subsidiaries
and agents. L’Oréal started out in hair color business but soon branched
out into other cleansing/beauty products.
L’Oreal’s century long history is marked with successes. Today the 500
brands of L’Oréal provide diverse products from hair color, permanents,
styling aids, body and skin care, cleansers and fragrances.

2. Products
BECAUSE YOU'RE WORTH IT
The French brand, L'Oréal, one of the world's top beauty care brands, offers men and women on
every continent beauty and personal care products that incorporate the latest scientific advances.
Visionary formulas, upscale presentation and products that are a pleasure to use: L'Oréal
provides affordable luxury for people who demand excellence.
The Product Categories
1. Consumer products
The Consumer Products Division is dedicated to offering all consumers its high
technology products at competitive prices through mass-market retailing channels.
The Division’s brands develop hair care, skincare, make-up and perfume products
that meet the aspiration of all of its customers.
The Division's 5 international brands are L'Oréal Paris, Garnier, Maybelline New
York, Soft sheen.
2. Professional products
The Professional Products Division is at the service of hairdressers worldwide. Our
complementary brands meet the requirements of salon professionals in colorants,
hair care, texturing and styling formulas and provide salon customers with a wide
range of innovative, high-performance products. The Professional Products
Division of L’Oréal is made up of four different brands: L'Oréal Professionnel,
Kérastase, Redken 5th Avenue NYC and Matrix.
3. Luxury products
The prestigious brands of the Luxury Products Division offer consumers top of the
range products. Clients of selective retail outlets (department stores, perfumeries,
travel retail outlets, and the brands own boutiques) receive personalized advice at
the point of sale, enabling them to choose the products best suited to their needs.
Lancôme, Helena Rubinstein, Biotherm, Shu uemura and Kiehl’s offer premium
products known for their innovation, performance and quality. The Luxury
Products division houses also some of the world's top perfume brands: Giorgio
Armani, Ralph Lauren, Cacharel, Paloma Picasso and Guy Laroche.

3. 3.Active cosmetics
The Active Cosmetics Department designs and markets dermo-cosmetic skin care
products that are sold in pharmacies and specialist retailers. These products offer
consumers proven safety and effectiveness supported by advice from pharmacists
&dermatologists.
The Department’s three brands, Vichy, La Roche Posay and Innéov, offer skin
care, sun care, and hair care and make-up products.
L’Oréal SWOT Analysis
Strengths:
1. Continuing research and innovation in the interest of beauty which assures that
the L’Oreal Cosmetics offers the best to their consumers.
2. Leader in the growing cosmetics industry despite the competition in the market.
3. High-end advertising which adapts to the culture of target audience
4. Has over 60,000 employees globally
5.Apart from hair color, skin care, sun protection, make-up, perfumes and hair
care, the company is active in the dermatological and pharmaceutical fields and is
the top nanotechnology patent-holder in the United States
6. L’Oréal has operations in over 130 countries and over 4o manufacturing plants
Weaknesses:
1. Decentralized organizational structure. Due to the many subdivisions of the
Company, there is also the difficulty in the control of L’Oreal
2.Stiff competition from other leading cosmetic established brands.
Opportunities:
1. Growing market that ranges from the affluent, the aging and also the masses of
the developed countries.
2. Greater market share because of the numerous patents registered by the
Company.

4. Threats:
1. Growing competition within the field of cosmetic brands
2. Economic downturn that is quite evident in other countries
3. L’Oreal Group may be producing the best of its line, people may find that their
products are not of their basic needs and would skip buying L’Oreal products.
Conclusion
L’Oreal’s core business is people’s well being, and their ambitions go far beyond
financial performance.
The Group has confirmed its determination to link economic growth with strong
ethical principles and a real awareness of its responsibilities to the community.