L’Oreal’s methods have brought it profitable results so far, we believe a shift in focus of the segmentation to age and gender can be considered to prolong its success. Although L’Oreal has always practiced differentiated marketing strategy to target several market segments, we think there is a segmentwhich has been largely neglected: If tapped, L’Oreal could see massive profits and success in India. In thiscase we believe L’Oreal should target the Men.

1. CASE STUDY:
STP OF L’OREAL INDIA
Presented By:
DISHA. D. THAKKAR
ROLL-NO- 17
PGDMM
THE MAHARAJA SAYAJIRAO
UNIVERSITY OF BARODA.

2.  Segmentation on the basis of product usage
 Luxury
 Consumers
 Professional
 Pharmaceuticals
 L’Oreal remained as a global leader in the industry with
a market share of 24.8 percent.
 Due to increased focus on ‘wellness’, company focused
mainly on
 Cosmeceuticals
 Neutraceuticals

3. BRAND AMBASSADORS IN INDIA

4. Geographic Segmenting by country, region, city or other
geographic basis.
Demographic Segmenting based on identifiable population
characteristics, such as age, gender, income
occupation, marital status and so on.
Psychographic This segmentation approach involves an
understanding of a consumer’s lifestyle, interests,
and opinions.
Benefits sought This approach segments consumers on the basis of
specific benefits they are seeking from the
product, such as convenience, or status, or value,
and so on.
Behavioral Segmenting the market based on their relationship
with the product or the firm.
Eg: heavy or light users, brand loyal or brand
switchers, and so on.

5. WHEN IT FIRST ENTERED THE MARKET
(1991)
 Gender Segmentation: L’Oreal first segmented the
population into the different sexes as they thought
their products’ “combination of low price and natural
ingredients would fit India’s market, where women
use plants and herbs as part of their beauty culture”.
Their product specifically catered to the women
of India, though later it discusses how it should carve
a niche market for itself in the Men’s sector as well.
 Income Segmentation: L’Oreal separated : the
quickly rising middle class & upper class which was
gaining in affluence..

6.  Age Segmentation: By segmenting the market int
o the younger middle class from the more
conservative, often older Indians, it had also
inevitably segmented the market based on age, and
showed an increased interest in capturing the
market share of the younger Indians.
 Benefits Segmentation: L’Oreal further
segmented the market on a benefits basis when it
introduced Excellence Crème. It promised superior
products with additional benefits to consumers.

7.  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, and the younger
more impressionable generations who
had developed a very different and westernized view
on spending and culture.
 Differentiated Marketing approach. This allows the
m to effectively identify several differentiated segments
and design separate offers for each, translating into
stronger sales and a stronger position within each
market segment.

8. WHAT SEGMENTS ARE L’OREAL NOW
TARGETING?
 L’Oreal now targets the young affluent middle class
females, especially those with graying hair, and also
maintains some effort in targeting the masses.
 It also target women that sought benefits from using
its products.

9. POSITIONING DIFFERENT PRODUCTS IN
TARGETED MARKETS & CONSUMERS
 L’Oreal hired Ms World, Aishwarya Rai in an
advertisement to show that beautiful women use
L’Oreal, thus positioning itself as not just a basic
shampoo, but one that made women beautiful.
 This promise of beauty and benefits positioned L’Oreal
higher in the market compared to the home brands
which positioned themselves as cheap, value-for-
money products which only served the most basic
of functions of hair cleaning.
 It thus attempted to capture the loyalty of a new
segment of the market by promising better quality
products to the rising middle class.

10. HOW SOCIAL RESPONSIBILITY PLAY IN L’OREAL’S
TARGETING STRATEGY IN INDIA
 It launched the program “Beautiful Beginnings” on
7thJuly 2009, an initiative which aimed to train at least
200 unprivileged school drop-out girls every year to
make them employable.
 Project CARE which cultivates citizenship by
performing various social welfare activities in areas
like Child Education, Health, Safety and Environment.
 YOUNG WOMEN IN SCIENCE in partnership with
UNESCO to help young women to achieve their
dreams and aspirations of pursuing careers in
science.

11. FINDINGS & LEARNING
Brand
Diversity
• Famous for its Huge brand diversity
• Brand management in different countries and
cultures.
Good
Research &
Development
• Highly efficient R&D department.
• Spending 3% revenue on R&D each year.
• 2700 researchers. Worldwide.
Modernised
approach of
advertising
• Celebrities from different cultures are used for advertisements.
• Programs and events adds more effect to advertisements.

12. Target Market
• Middle aged and working women became the main target of
the company.
Awareness
• Established education centers are in many countries.
• Conducted programs related to hairdressers.
Mass
Marketing
• Opted complete makeover of the companies by providing
wide range of products.

13. Brand
Consistency
• L’Oreal focuses over all to improve and develop the different
brands it acquired in different regions.
• Maybelline is the best example of consistency.
Distribution
Channel
• Distributed is done with respect to its need and is cost
effective.
• Used agents and consignments to USA, Japan and other
Asian countries.
Understandings
• Company was brilliant in identifying the needs, cultures and
aspirations of different kinds of customers in diversified
regions.

14. CONCLUSIONS
 The “think local act local” approach is heavily
implemented by L’Oreal in product design and
promotion for attracting consumers across different
cultures and borders.
 Innovation and research is in the heart of the company,
so that the products reflect “the best of cosmetics
innovation in terms of quality, efficacy and safety”
(L’Oreal AR 2011:3,7).
 According to L’Oreal’s, it had diverse populations,
genders, skin types and ethnic specificities are taken in
account in the product design (AR 2011:29, Raju and
Xardel 2009:305).

15. BIBLIOGRAPHY
 Selected CSR Projects at L'ORÉAL October 2010, 1, from
L’Oreal Company Profile: http://www.csrglobe.com/login/companies/loreal.htmlE
uromonitor. (2010).
 Global Cosmetics and Toiletries September 2010, from Euromonitor:
http://www.portal.euromonitor.com.libproxy1.nus.edu.sg/Portal/ResultsList.aspx
 L'Oreal Beauty and Personal Care in India September 2010Euromonitor, I. (n.d.).
Unilever in Beauty & Personal Care September 2010India, L. (2008, January ).
 Keinert, C. Corporate Social Responsibility as an International
Strategy September 2010, from NUS Online Libraries L'Oreal. (2010).
 https://www.drsessays.com/marketing-essay-marketing-communications-
strategy.html
 http://www.loreal.com/_en/_ww/index.aspx
 Report: http://www.sustainabledevelopment.loreal.com
 Marketing Practice: Garnier: Take Care.(n.d.). Retrieved September 2010, from
MarketingPRactice: World's Largest Online Resource on
Indian Brands:http://marketingpractice.blogspot.com/2010/01.garnier-take-
care.htmlMSL Asia. (2009).
 A Project Report on L’Oreal India.Patel, K. (n.d.). A Project Report on L'Oreal
India. Retrieved September 2010, from http://www.scribd.com