Organisation Stratégique De L'Oréal

STRATEGIES OF L’OREAL

TABLE OF CONTENTS

Introduction………………………………………………………………….3

The Business……………………………………………………………………………..5

Corporate strategies…………………………………………………………………….7

The Complete Global Changeover…………………………………………………….12

SWOT Analysis…………………………………………………………………………13

L’Oreal in India………………………...………………………………………………14

Conclusion………………………………………………………………………………16

Introduction

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. Loreal started out in hair colour business but soon branched out into other cleansing/beauty products.

L’Oréal’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.

The distribution channels are diverse from hair salons to super markets and hypermarkets, health and beauty outlets and direct mail.

In 1933, Voutre beaute a magazine devoted to beauty and well being of women was launched .The 1950s saw the advent of new and exciting advertising medium: the movies. L’Oreal made its onscreen debut with the campaign for Ambre Solaire, which was making a comeback on the market.

The Global Reach Of L’Oreal

The Business

In the battle for global beauty markets, $12.4 billion L'Oreal has developed a winning formula: a growing portfolio of international brands that has transformed the French company into the United Nations of beauty. Blink an eye, and L'Oreal has just sold 85 products around the world, from Redken hair care and Ralph Lauren perfumes to Helena Rubinstein cosmetics and Vichy skin care. The report shall cover L'Oreal’s presence on the world map as well as its position India since its inception.

L'Oreal caters to the market by following the underlined categorization and has different strategies for these product segments.

1.Global Strategies

2.Strategies in India

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 haircare, skincare, make-up and perfume products that meet the aspirations of all of its customers.

The Division's 5 international brands are L'Oréal Paris, Garnier, Maybelline New York, Softsheen.Carson and Le Club des Créateurs de Beauté.

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.

4. 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 and dermatologists.

The Department’s three brands, Vichy, La Roche Posay and Innéov, offer skin care, sun care, and hair care and make-up products.

Corporate

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