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L’ORÉAL
“Because It Is Worth It”
Group Members
•Shivani Sharma - 38
•Anitha Nadar - 21
•Jay Naik - 24
•Kavita More - 19
The History Of the company…
• In 1907, a young French chemist Eugéne
Schueller developed an innovative colour
formula;
• In 1909, he registred his own company;
• In 1920, the small company employed 3
chemists;
• In 1912, Eugéne Schueller started to
export his products;
• In 1933, he created and launched Votre
Beauté, a magazine devoted to women;
• In 1953, L„Oréal won an advertising
Oscar.
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.
• L'Oreal on
the road to
greatness
• Becoming
number one
in the beauty
industry
• First steps :
the model
takes shape
• The diversity
of beauty
throughout
the world
2000-present 1909-1956
1957-19831984-2000
HISTORY
Operation
• L'Oreal is the world largest cosmetics and beauty
company. They have over 500 products.
• This brand concentrates on:
• Hair color
• Skin care
• Sun protection
• Make up
• Perfumes
• Hair care
Our brand’s
BECAUSE YOU'RE WORTH IT
PRODUCT TARGET
• L‟Oreal is mainly used for the younger people
like teenagers as most of their products involves
make up which most teenagers like.
• L'Oreal also targets their products to older
women.
• Their slogan “because we‟re worth it” shows
that the product is a luxury product which
suggests it is could be expensive.
• L'Oreal's product, reached the top 100 brands of
The Brand Trust Report published by Trust
Research Advisory in India
MARKET SHARE OF L’OREAL
Other
brand’s
59%
L'Oreal
41%
Hair colour
20%
Skincare
6.5%
Shampoo
4.6%
Competitors in Indian
market
• To keep the different brands
in one basket and yet
keeping the differentiation.
CHALLENGE
• Good brand management
was all about hitting the right
target audience with the right
product.
STRATEGY
Understandings
• Company was brilliant in identifying the needs, cultures
and aspirations of different kinds of customers in
diversified regions.
When it First Entered the Market
• Gender Segmentation
• “combination of low price and
natural ingredients would fit
India‟s market,
 women use plants and herbs as
part of their beauty culture”.
 specifically catered to the women
of India,
 how it should carve a niche market
for itself in the Men‟s sector as
well.
• Income Segmentation: 2 main segments:
 the poorer masses and the rest
• marketed its product
• 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.
 NOT YET TARGETING middle class or
upper class
• did not make any distinct segmentation of the richer classes
The “L‟Oreal Makeover”
• Income Segmentation:
• the quickly rising middle class which was gaining in affluence.
• fastest growing income class that represented a highly untapped market
potential due to their radically different mindsets from the masses.
• Age Segmentation:
• the younger middle class from the more conservative, often older
Indians,
• showed an increased interest in capturing the market share of the
younger Indians.
• Psychographic Segmentation:
• L‟Oreal segmented India into different groups based on their
thinking and behavior from the older
• more conservative Indians who held conservative values of
thriftiness more strongly and stubbornly,
• the younger more impressionable generation who had
developed a very different and westernized view on spending
and culture
TARGETING
 young affluent middle class females, especially those with graying
hair
• maximum profits as it not only possessed the purchasing
power that masses lacked, but more critically a modernized
mentality
• these people more receptive to purchasing L‟Oreals‟ more
luxurious and expensive products..
 L‟Oreal also target women that sought benefits from using its
products
• no product that solved women‟s hair greying problems
• Middle aged and working women became the main
target of the company.
 YOUNG MIDDLE CLASS
• who did not mind using products that damaged their
hair as long as they were cheap due to monetary
problems,
• 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
 LOWER INCOME MASSES
• introduced new products like „Colour Naturals‟
which be used multiple times and cost only $3.10,
translating into increased value for the masses.
• L‟Oreal‟s strategy targeted the more affluent that
were more educated and had more disposable income
to splurge on luxury items if they justified their price.
Brand
Positioning
• Company has a strong and long-term brand positioning specially
within the minds of middle age women and teenage girls.
POSTITIONING
 L‟Oreal hired Ms World in an
advertisement
• L‟Oreal India launched the program
“Beautiful Beginnings” 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 ,
 L‟Oreal has historically carried a premium image and price
tag
 Viral marketing
 dual positioning strategy in India
• L‟Oreal reduced its hair care range prices by 25% in
2010 after it began local production and resorted to another
4% price cut this year
DIFFERENTIATION
 Home brands aimed to garner loyalty of existing users
• repeated use by generations of Indians would bring about feelings of
trust and dependability
• attracted thrifty housewives who wanted the cheapest products
 DIFFERENTITATED : by promising better quality products to the
rising middle class
• When L‟Oreal first entered India :beauty education was absent,
training seemed redundant and hairdressers were well satisfied with
cheap local domestic brands
• invested heavily in education and training to boost their status in the
community.
Conclusion
• The L‟Oreal Group is the world‟s largest cosmetics &
beauty company. In our opinion, we think that L‟Oreal has
successfully created a brand identity as the adverts that
present the products make them look more expensive.
Final loreal ppt marketing

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Final loreal ppt marketing

  • 2. Group Members •Shivani Sharma - 38 •Anitha Nadar - 21 •Jay Naik - 24 •Kavita More - 19
  • 3. The History Of the company… • In 1907, a young French chemist Eugéne Schueller developed an innovative colour formula; • In 1909, he registred his own company; • In 1920, the small company employed 3 chemists; • In 1912, Eugéne Schueller started to export his products; • In 1933, he created and launched Votre Beauté, a magazine devoted to women; • In 1953, L„Oréal 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. • L'Oreal on the road to greatness • Becoming number one in the beauty industry • First steps : the model takes shape • The diversity of beauty throughout the world 2000-present 1909-1956 1957-19831984-2000 HISTORY
  • 6. Operation • L'Oreal is the world largest cosmetics and beauty company. They have over 500 products. • This brand concentrates on: • Hair color • Skin care • Sun protection • Make up • Perfumes • Hair care
  • 8. PRODUCT TARGET • L‟Oreal is mainly used for the younger people like teenagers as most of their products involves make up which most teenagers like. • L'Oreal also targets their products to older women. • Their slogan “because we‟re worth it” shows that the product is a luxury product which suggests it is could be expensive. • 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 L’OREAL Other brand’s 59% L'Oreal 41% Hair colour 20% Skincare 6.5% Shampoo 4.6%
  • 11. • To keep the different brands in one basket and yet keeping the differentiation. CHALLENGE • Good brand management was all about hitting the right target audience with the right product. STRATEGY Understandings • 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 • Gender Segmentation • “combination of low price and natural ingredients would fit India‟s market,  women use plants and herbs as part of their beauty culture”.  specifically catered to the women of India,  how it should carve a niche market for itself in the Men‟s sector as well.
  • 13. • Income Segmentation: 2 main segments:  the poorer masses and the rest • marketed its product • 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.  NOT YET TARGETING middle class or upper class • did not make any distinct segmentation of the richer classes
  • 14. The “L‟Oreal Makeover” • Income Segmentation: • the quickly rising middle class which was gaining in affluence. • fastest growing income class that represented a highly untapped market potential due to their radically different mindsets from the masses. • Age Segmentation: • the younger middle class from the more conservative, often older Indians, • showed an increased interest in capturing the market share of the younger Indians.
  • 15. • Psychographic Segmentation: • L‟Oreal segmented India into different groups based on their thinking and behavior from the older • more conservative Indians who held conservative values of thriftiness more strongly and stubbornly, • the younger more impressionable generation who had developed a very different and westernized view on spending and culture
  • 16. TARGETING  young affluent middle class females, especially those with graying hair • maximum profits as it not only possessed the purchasing power that masses lacked, but more critically a modernized mentality • these people more receptive to purchasing L‟Oreals‟ more luxurious and expensive products..  L‟Oreal also target women that sought benefits from using its products • no product that solved women‟s hair greying problems • Middle aged and working women became the main target of the company.
  • 17.  YOUNG MIDDLE CLASS • who did not mind using products that damaged their hair as long as they were cheap due to monetary problems, • 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.  LOWER INCOME MASSES • introduced new products like „Colour Naturals‟ which be used multiple times and cost only $3.10, translating into increased value for the masses. • L‟Oreal‟s 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 • Company has a strong and long-term brand positioning specially within the minds of middle age women and teenage girls.
  • 20. POSTITIONING  L‟Oreal hired Ms World in an advertisement • L‟Oreal India launched the program “Beautiful Beginnings” 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.  L‟Oreal has historically carried a premium image and price tag  Viral marketing  dual positioning strategy in India • L‟Oreal 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  Home brands aimed to garner loyalty of existing users • repeated use by generations of Indians would bring about feelings of trust and dependability • attracted thrifty housewives who wanted the cheapest products  DIFFERENTITATED : by promising better quality products to the rising middle class • When L‟Oreal first entered India :beauty education was absent, training seemed redundant and hairdressers were well satisfied with cheap local domestic brands • invested heavily in education and training to boost their status in the community.
  • 23. Conclusion • The L‟Oreal Group is the world‟s largest cosmetics & beauty company. In our opinion, we think that L‟Oreal has successfully created a brand identity as the adverts that present the products make them look more expensive.