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.
