L'Oreal Case Study in Thailand

1. Case Study in Thailand

2. Stats
• In 2012 the Thai beauty market was worth 105 billion baht.
• Currently L'Oréal is the second largest beauty company in Thailand and they
aim to be #1 within the next six years.
• Competitor SSUP group known for GNC and Oriental Princess is currently #1.
(citation)
• Skincare represents 45% of the beauty market in which L'Oréal says they are
the market leader.
• L'Oréal is the world leader in research-and-development investment in the
beauty industry, with 721 million euros (Bt27.4 billion)
History
• L'Oréal had challenges after the Asian crisis in 1997 when they were
working together with the companies ‘’SiamPar’’ and ‘’Thailor’’
• Several issues needed to be tackled to restore profitability and their
competitive position.
• In the year 2000 a new entity was created: L'Oréal Thailand Ltd.

3. How did they do it?
1.
2.
3.
Understanding the market.
Tailor made strategies for each of their retailers
Clearer understanding of the market, product positioning
and the right communications strategy.
The correct products
Whitening skin products made up 50% of the market which they didn’t
focus on enough. Increased SKUs for hair color products from 15 to 20
compared to 9 for L’Oreals main competitor Sunsilk. This increased shelf
space from 50 to 90%. Different brands were to be targeted at different
age groups: 15-35 and 35+
Communicating with customers.
Local brand ambassadors were perceived as boring and lacking in
confidence resulting in an inconsistent image. L’Oreal rethought their
social media mix to focus heavily on print media and point-of-sale.

4. Spokespeople
• Laila Boonyasak
(White Perfect Laser)
• Ann Thongprasom
(Revitalift / L’Oreal Excellence)
• Araya Alberta Hargate
(Total Repair / Revitalift white / UV perfect /
Lucent Magique)
• Mai Davika Hoorne
(Fall Repair)
• Nadech Kugimiya
(White Active)

5. Whitening Creams
•
•
•
•
In Thailand fairer skin is
equated with higher class
Magazines are often full off
pale Korean and Japanese
Stars.
The skin lightening industry
in Asia will reach almost
2bn in 2013
The definition of beauty has
been changed by cosmetic
industry. Many Thai women
fail to meet the beauty
standards set by the
producers and ad agencies.

6. Target group

7. Target Audience
Demographics
Age
Gender
Education
Occupation
Income Range
: 15 - 40 years old
: Female
: Undergraduate and above
: University Student and working adults
: 12,000 THB – 35,000 THB
Psychographics
Perception:
Quality products that are well known and functional .
Motivation & Needs:
Brighten skin color, fulfilling emotional need and
uplifting self esteem…higher status
Attitude & Personality:
Self-conscious and want confidence

8. Summary
What makes L'Oréal successful in Thailand?
•
•
•
•
•
•
Clear understanding of the market
(product specific)
Well known brand ambassadors for
different products.
Specific strategies for different retailers
World leader in R&D with 721 million
euros (Bt27.4 billion)
Focused on skin whitening products
Products are widely available
(occasionally promotions at 7-11 too)