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L’OREAL – GLOBAL SUCCESS
THROUGH INNOVATION
GETTING TO KNOW L’OREAL
Headquarters France
Regional
Involvement
Global
Category
Involvement
Skincare, Colour cosmetics, H...
WHAT THE CASE TELLS US
• Main reasons for global success are targeting methods and frequent use of
products by youth
• Inv...
CURRENT SCENARIO
L’oreal operates through 4 divisions
• Consumer Product Division – L’oreal Paris,
Garnier, Maybelline NY
...
MARKET SHARE OF L’OREAL
Source: http://magazine.loreal-finance.com/en/loreals-worldwide-performances.htm
WHO DOES L’OREAL
COMPETE WITH?
GLOBAL COMPETITORS WITH
MARKET SHARE
COMPANY
% SHARE
(2010)
% SHARE
(2011)
1. Procter & Gamble Co. 11.5 11.5
2. L’Oreal Gr...
TOTAL NUMBER
OF PATENTS
RESEARCH AND
INNOVATION
BUDGET
Source: http://www.loreal-finance.com/eng/key-figures
Source: http://www.loreal-finance.com/eng/key-figures
Sales Figures
Sales
CHANGE IN
WORKFORCE
BREAKDOWN OF
EMPLOYEES BY
GEOGRAPHIC ZONE
Source:http://www.loreal-finance.com/eng/key-figures
THE ADVERTISEMENT DEPICTING
INNOVATION
• (Insert video)
L'Oreal's success can be attributed to these following factors:
 Understanding Consumers Globally
 Wide range of product...
LEARNINGS FROM THE CASE
• L’Oreal relies on R&D for their new product innovation
• Their acquisition strategy has been ver...
L'Oreal Case Study- Global Success Through Innovation
L'Oreal Case Study- Global Success Through Innovation
L'Oreal Case Study- Global Success Through Innovation
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L'Oreal Case Study- Global Success Through Innovation

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Answers to the questions from the case study, "L'Oreal- Global Success Through Innovation. Includes current market analysis.

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L'Oreal Case Study- Global Success Through Innovation

  1. 1. L’OREAL – GLOBAL SUCCESS THROUGH INNOVATION
  2. 2. GETTING TO KNOW L’OREAL Headquarters France Regional Involvement Global Category Involvement Skincare, Colour cosmetics, Hair care, Fragrances, Men’s grooming and Sun care. World BPC Share (2011) 9.7% World BPC value growth (2011) 4. 8%
  3. 3. WHAT THE CASE TELLS US • Main reasons for global success are targeting methods and frequent use of products by youth • Invests 3% of revenue in R&D as innovation and quality of product gives a competitive advantage. • Manufactures large quantities of products and acquisition strategy helps increase capacity • Each brand division has its own distribution system • Promotion of L’Oreal’s image and values provides them with a sustainable competitive advantage. • Acquisition of brands from countries of origin combined with L’Oreal’s promotion strategy helped them become an international success in emerging markets
  4. 4. CURRENT SCENARIO L’oreal operates through 4 divisions • Consumer Product Division – L’oreal Paris, Garnier, Maybelline NY • Professional Product Division – L’oreal Professional, Matrix Kerastase • Active Cosmetic Division – Vichy (It is a dermatological product) • Luxury Product Division – Lancome, Biotherm, Giorgio Armani, Ralph Lauren Fragrances
  5. 5. MARKET SHARE OF L’OREAL Source: http://magazine.loreal-finance.com/en/loreals-worldwide-performances.htm
  6. 6. WHO DOES L’OREAL COMPETE WITH?
  7. 7. GLOBAL COMPETITORS WITH MARKET SHARE COMPANY % SHARE (2010) % SHARE (2011) 1. Procter & Gamble Co. 11.5 11.5 2. L’Oreal Group 9.8 9.7 3. Unilever Group 7.0 7.8 4. Colgate-Palmolive Co 3.6 3.8 5. Avon Products Inc. 3.2 3.2 6. Estee Lauder Cos Inc 2.9 2.9 7. Shiseido & Johnson Ltd 2.6 2.5 Source:http://www.euromonitor.com/medialibrary/PDF/LOreal-Company-Profile-SWOT-Analysis.pdf
  8. 8. TOTAL NUMBER OF PATENTS RESEARCH AND INNOVATION BUDGET Source: http://www.loreal-finance.com/eng/key-figures
  9. 9. Source: http://www.loreal-finance.com/eng/key-figures Sales Figures
  10. 10. Sales
  11. 11. CHANGE IN WORKFORCE BREAKDOWN OF EMPLOYEES BY GEOGRAPHIC ZONE Source:http://www.loreal-finance.com/eng/key-figures
  12. 12. THE ADVERTISEMENT DEPICTING INNOVATION • (Insert video)
  13. 13. L'Oreal's success can be attributed to these following factors:  Understanding Consumers Globally  Wide range of products  Effective positioning vis-à-vis its competitors SUCCESS
  14. 14. LEARNINGS FROM THE CASE • L’Oreal relies on R&D for their new product innovation • Their acquisition strategy has been very successful as they allow the companies to flourish by promoting their country of origin • Increase in patent registrations has given L’Oreal a sustainable competitive advantage. • Variety of distribution channels helps in increase of sales. • Effective and unique promotion and advertising of its image with each country’s perception of beauty.

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