A mini-case study of L'Oreal done as a part of the internship under Prof. Sameer Mathur, IIM Lucknow.

1. Because you’re worth it.
THE
BACKSTAGE
STORY

3. PRODUCTS
Skincare
Cosmetics
Hair Care
Hair Colour
Men Skincare

4. Founded in 1909, L’Oreal coupled innovation
and speed to market with expansion of it’s
geographic consumer base.
In 1907, Eugene Schueller developed Aureole,
a hair colour formula. He developed it,
manufactured it and sold it to a Parisian
hairdresser.
In 1957, Francois Dalle, initiated the concept of
selling beauty through various channels.
In 1988, Lindsey Owen Jones focused on 5
core businesses (hair colour & care, skin care,
fragrances & cosmetics). The firm had to
promote it’s national brands to the world.

5. Integrity
Respect
Courage
Transparency
Brand Philosophy
Because You’re Worth It!
CORE
BRAND
VALUES
Because you’re worth it.

6. Global Leader in Beauty and Cosmetics

7. L’OREAL SWOT ANALYSIS
STRENGTHS:
• Largest Beauty/cosmetics
company.
• Continuous R&D
• Fantastic product and brand
portfolio
• High Quality products
• Strong integrated
marketing communications
• Really good stars in brand
portfolio
• Widespread distribution
• Natural and organic in
nature
WEAKNESSES:
• Too many subdivisions
• Haircare is a degrowing
segment.
• Profit margins are lower.

8. L’OREAL SWOT ANALYSIS
OPPORTUNITIES:
• Market Potential for
personal care and
beauty items is only
going to increase
• Product mix expansion
• Demand for organic
cosmetics
• Revival of Body Shop
THREATS:
• Dynamic nature of
cosmetics industry
• Cash Crunch

9. BRAND PORTFOLIO

10. Local and Global Competitors
L’Oreal has now grown globally and faces steep
competition in the US markets as well as in India
and China due to high market share, competitive
pricing, loyal consumer base.
Shiseido – a Japanese
cosmetic giant, which
competes globally
Avon – local as well as
global Competitor
Estee Lauder – Local and
international competitor
Proctor & Gamble –
International Competitor

11. Success in global markets
• It’s glamorous and stylish, successfully capturing the attention
of smart, driven women. Extraordinary distribution channel to
the US, South America, Russia and the Far East.
• Diversification into wide range of beauty products.
• Expanded globally by introducing Maybelline in USA.
• L’Oreal successfully set up the Geo Cosmetics in Asian
Markets to study the local needs
• Evaluation centres around the world to study global habits
• Local teams change and modify L’Oreal products.
• Company Launched the legendary advertisement campaign
“Because I am worth it” for promotion of a hair color.
• Due to it’s constant R&D and smart acquisitions it has stayed
as a market leader.

13. BRAND AMBASSADORS

14. Review L’Oreal’s brand portfolio. What role
have target marketing , smart acquisitions
and R&D played in growing of those
brands?
• We have seen the brand portfolio and acquisitions
in the previous slides.
• Apart from them the following factors played an
important role:
• Precise target marketing
• Targeting dynamic markets
• Niche Marketing
• Psychographic Segmentation
• Spends 3% of annual sales on R&D

15. What has been the key to successful
product launches such as
Maybelline’s Wondercurl in Japan?
• Evaluation centres are set up around the world
to study global habits.
• Local teams change and modify L’Oreal
products.
• Innovation in Marketing-14 Research centres
around the world ,it caters to the local needs of
each market.

18. WHAT’S NEXT?
• GLOCAL!
As Gilles Weil said “You have to be local and as
strong as the best locals ,but backed by an
international image and strategy”
• Joint Ventures-would increase company’s
market share and profit

19. If you were the CEO how would you
sustain the company’s global
leadership?
• The company would focus on e-commerce and
develop a strong online market
• The company would launch organic products
• Can go for ore prospective distribution

20. SUMMARY:
• L’Oreal’s Brand History
• Products
• Core Brand Values
• SWOT Analysis
• Brand portfolio
• Competition
• Global Success
• Q & A

21. DISCLAIMER
Created by Vaidehi Mahajan, IIT Bombay as a
part of a marketing internship done under
Prof. Sameer Mathur, IIM Lucknow.